Document:

EX-10.13

 Exhibit 10.13 

[*Confidential Treatment has been requested as to certain portions of this document. Each such portion, which has been omitted herein and replaced with an
asterisk [*], has been filed separately with the Securities and Exchange Commission.] 
 CONFIDENTIAL 

 
  

 
 LICENSE,
DEVELOPMENT, COLLABORATION, 
 AND 

COMMERCIALIZATION 

AGREEMENT 

BY AND BETWEEN 

DANCE PHARMACEUTICALS, INC. 

AND 

AEROGEN LIMITED 

NOVEMBER 2010 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	1	 	 DEFINITIONS
	  	 	1	  
			
	2	 	 GRANT OF RIGHTS
	  	 	9	  
			
	3	 	 DEVELOPMENT
	  	 	10	  
			
	4	 	 ECONOMIC TERMS
	  	 	16	  
			
	5	 	 PATENT RIGHTS
	  	 	20	  
			
	6	 	 WARRANTIES REPRESENTATIONS & COVENANTS
	  	 	26	  
			
	7	 	 SUPPLY
	  	 	28	  
			
	8	 	 INDEMNIFICATION
	  	 	30	  
			
	9	 	 TERM & TERMINATION
	  	 	31	  
			
	10	 	 LIMITATION OF LIABILITY
	  	 	32	  
			
	11	 	 DISPUTE RESOLUTION
	  	 	32	  
			
	12	 	 MISCELLANEOUS
	  	 	33	  
			
	Schedule A	 	 Device Patents and Patent Applications
	  	 	37	  
			
	Schedule B	 	 Device Development Plan
	  	 	39	  
			
	Schedule C	 	 Disclosures
	  	 	40	  
			
	Schedule D	 	 Aerogen Warrant
	  	 	42	  

  
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 LICENSE DEVELOPMENT, COLLABORATION, AND COMMERCIALIZATION AGREEMENT 

THIS LICENSE, DEVELOPMENT, COLLABORATION, AND COMMERCIALIZATION
AGREEMENT (“Agreement”) is effective as of Nov 5, 2010 (the “Effective Date”), and is by and between DANCE PHARMACEUTICALS, INC.
a Delaware, USA corporation having its principal place of business at 2 Mint Plaza, Suite 804, San Francisco, CA 94103 USA (“Dance”) and AEROGEN Limited, a private limited company incorporated in Ireland having
its principal place of business at Galway Business Park, Dangan, Galway, Ireland (“Aerogen”). Dance and Aerogen are individually a “Party” or collectively “Parties.” 

RECITALS 

WHEREAS, Aerogen is the owner of all right, title and interest in or otherwise has the right to license
certain Patents and Information (including Know-How) related to the Device (as hereinafter defined); 

WHEREAS, the Parties wish to collaborate in the development of the Device for use with the Drug Products
in the Field (as hereinafter defined); 
 WHEREAS, Aerogen desires to grant, and Dance desires
to accept, the License (as hereinafter defined) to develop and commercialize the Device on the terms and conditions set forth herein; and 

AGREEMENT 

NOW, THEREFORE, for and in consideration of the above-described recitals, the mutual
covenants of the Parties hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, the Parties hereto, intending to be legally bound, enter into the agreements
contained herein. 
  

	1.	DEFINITIONS 

 For purposes of this Agreement, the following terms shall have the meanings
set forth below: 
 1.1 “AAA” shall have the meaning set forth in Section 12.2 (Arbitration).

 1.2 “Action” shall have the meaning as set forth in Section 8.3 (Indemnification
Procedures). 
 1.3 “Aerogen Know-How” means any Know-How which is necessary or useful to
Exploit the Device in the Territory and owned, licensed to or otherwise controlled by Aerogen or any of its Affiliates as of the Effective Date or during the Term, including the Aerogen New Technology, if any. 

1.4 “Aerogen Patent(s)” means any Patent which is owned, licensed to or otherwise controlled by Aerogen or
any of its Affiliates as of the Effective Date or during the Term and is necessary or useful to Exploit the Device, being those Patents listed on Schedule A and any Patents covering Aerogen New Technology, if any. 

1.5 “Aerogen New Technology” shall have the meaning set forth in Section 5.2.1(a) (Improvements).

 1.6 “Affiliate” means, with respect to either Party, any person
or entity which, directly or indirectly, controls, is controlled by, or is under common control with, the specified Party. For the purposes of this definition, the term “control”, as applied to any person or entity, means the ownership or
control, directly or indirectly, of more than the lesser of (a) 50% or (b) the maximum percentage allowed by law in the country of the controlled person or entity, of all of the voting power of the shares (or other securities or rights)
entitled to vote for the election of directors or other governing authority; provided that such entity shall be considered an “Affiliate” only during the time that such “control” exists. 

1.7 “Bankruptcy Code” shall have the meaning set forth in Section 9.6 (Section 365(n) of the
Bankruptcy Code). 
 1.8 “Budget” means the Project Fees that the Parties have agreed will be paid by
Dance to Aerogen for the services to be performed by Aerogen in relation to the design, development, testing, and refinement of final form Devices meeting the Specifications and Product Requirements, all as set forth in the Device Development Plan.
The Budget for the first stage of the Device Development Plan will be attached to this Agreement and will be updated by the Parties from time to time in writing during the Term hereof. All references to the Budget shall mean the then-current Budget.

 1.9 “Claim” means any charge, allegation, notice, civil, criminal or administrative claim, demand,
complaint, cause of action, or Proceeding. 
 1.10 “Commercially Reasonable Efforts” means that level of
effort (including the promptness with which such effort would be applied) as is customary in the medical device or pharmaceutical industry for carrying out in a sustained manner a particular task or obligation to develop and commercialize medical
device or pharmaceutical products, as the case may be as to the Device or the Drug Products, and, in any event, not less than the same efforts that would be expended by a Party to develop and commercialize a medical device, pharmaceutical product,
or a combination thereof, with comparable perceived market potential, at a similar stage in its development or product life, with comparable regulatory pathways and cost of development, manufacture and bringing to market, taking into account the
prevalence of the indication, the competitiveness of alternative products, the patent and other proprietary position of such product, the likelihood of Regulatory Approval, its profitability, the availability of funding to support the development,
manufacture and commercialization of the product and all other relevant factors. Commercially Reasonable Efforts shall be determined on a market-by-market basis. 

1.11 “Commercialization Partner” means a third party with whom Dance enters into a sublicense agreement
consistent with this Agreement whereby such Commercialization Partner obtains the rights to Exploit the Device for use with Drug Products in the Field in the Territory, in exchange for any one or a combination of: funding pre-clinical or clinical
development of Drug Products and/or the Device, payment of license fees and milestone payments, purchase of equity in Dance or its Affiliate, provision for loan facilities, and payment of royalties on sales of Drug Products. 

  
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 1.12 “Confidential Information” means all confidential and/or
proprietary Information of a Party that is disclosed to the other Party under this Agreement, which may include without limitation specifications Know-How, trade secrets, legal information, technical information, information regarding research and
development and manufacturing, drawings, designs, models, prices and pricing policies, marketing practices, customer lists, business information including business (including marketing and partnering) plans and strategies, personnel information,
regulatory (including clinical) plans and strategies, financial information including financing plans and strategies, improvements (including Improvements), inventions, discoveries, methods, processes, procedures, formulations (including
Formulations), source code, object code, databases, data structures, pseudocode, protocols, techniques, data, and unpublished patent applications and other intellectual properties, whether disclosed in oral, written, graphic, or electronic form.
Confidential Information of Dance includes without limitation, Drug Products and any and all Information relating thereto including the Formulations and Packaging, Dance Know-How, Dance Data and New Dance Technology, and marketing and pricing
strategies, regulatory strategies, business strategies with regard to potential Commercialization Partners and information relating to the Field including making inhaled insulin a viable product and commercial success. Confidential Information of a
Party and copies thereof shall be solely owned by such Party unless otherwise agreed in this Agreement. 
 1.13
“Dance Data” shall have the meaning set forth in Section 5.2.1(c)(iii) (Improvements). 
 1.14
“Dance Know-How” means any and all Know-How owned, licensed to (other than Know How licensed pursuant to this Agreement) or otherwise controlled by Dance or any of its Affiliates as of the Effective Date or during the Term, relating to
the Drug Products, including their development, manufacture or use, including their use in combination with the Device. 

1.15 “Dance New Technology” shall have the meaning set forth in Section 5.2.1(b) (Improvements). 

1.16 “Device Development Plan” shall have the meaning set forth in Section 3.3 (Device Development
Plan). All references to the Device Development Plan shall mean the then-current Device Development Plan. 
 1.17
“Device” means a vibrating mesh inhaler incorporating any of Aerogen’s technology in the form of a small portable device suitable for delivering insulins for the treatment of diabetes, to the human airways by means of inhalation,
including the vibrating mesh, electronics, drug feed tube and associated patient interaction features; that (a) incorporates the features and meets the Specifications and product requirements set forth in the Device Development Plan and
(b) is customized for use with the drug products, and any improvements to any of the foregoing. 
 1.18
“Dispute” shall have the meaning set forth in Section 11.1 (Informal Resolution). 

  
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 1.19 “Drug Product(s)” means any and all formulations of
insulins, formulated for use with the Device and for the treatment of diabetes (collectively referred to herein as the “Formulations”), together with any labeling or packaging for the Formulations (collectively referred to herein as the
“Packaging”). For clarity, Drug Product(s) do not include the Device. 
 1.20 “Drug Device
Combination” means a medical product comprised of both the Device and the Drug Product used together to deliver insulin for the treatment of diabetes. 

1.21 “Effective Date” shall have the meaning set forth in the introduction. 

1.22 “EMA” means the European Medicines Agency or any successor agency with responsibilities comparable to
those of the European Medicines Agency. 
 1.23 “Encumbrance” means in the Field within the Territory any
lien, pledge, security interest, right of first refusal, option, title defect, Claim, license, restriction, or other adverse claim or interest or encumbrance of any kind or nature whatsoever, whether or not perfected, including any restriction on
use, transfer, receipt of income or exercise of any other attribute of ownership. 
 1.24 “Exclusive” means
that neither Aerogen nor any of its Affiliates shall itself Exploit or license or grant rights to or otherwise affirmatively facilitate any third party to Exploit, directly or indirectly, any Device in the Field in the Territory. 

1.25 “Efficiency” means the mean respirable mass efficiency of aerosol delivery to the lung of a dose of a
drug determined by the fraction [IM x FPF 1-5 microns] total dose where IM = inhaled mass, FPF = Fine Particle Fraction and both IM and FPF are measured quantities. The Efficiency shall be measured by the testing methods as employed for FDA520(k)
Pre-market Notification Section 9 Performance Requirement (product performance determined utilizing common respiratory drugs and a standard respiratory model employing inhalation/ventilator settings giving results substantially equivalent to
other predicated nebulisers on the market). 
 1.26 “EU Major Markets” means Germany, France, the UK, Italy
and Spain 
 1.27 “Exploit,” “Exploiting” or “Exploitation” means to formulate,
develop, seek Regulatory Approval for, make or have made (by Aerogen or by a third party as permitted by the Supply Agreements only), use, sell, have sold, offer for sale, market, promote, import, export, display, distribute, perform or otherwise
commercialize or dispose of. 

  
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 1.28 “FDA” means the U.S. Food and Drug Administration of the
U.S. Department of Health and Human Services (“HHS”) and any successor agencies with responsibilities comparable to those of the FDA and HHS. 

1.29 “Field” means delivery of insulins, through inhalation for the treatment of diabetes excluding insulin
delivery in an acute care hospital environment. The Parties agree that this definition may be revisited in future with a view to expansion of the Field but any such amendments must be agreed in writing with specific reference to this Agreement. 

1.30 “First Commercial Sale” means the date of the first commercial sale of the Device or Drug Product (for
end use or consumption for use with the Device) by Dance, its Affiliate, sub-licensee or Commercialization Partner to an unaffiliated third party. 

1.31 “IFRS” means International Financial Reporting Standards. 

1.32 “Improvements” means new improvements, discoveries, inventions, developments, enhancements, derivative
works, technology, Know-How and other intellectual property, whether or not patentable or protectable, relating to the Device, Drug Products, or the combination of the Device with Drug Products, or their development, manufacture, use or sale. 

1.33 “IND” means an investigational new drug application filed with, and accepted by, the FDA prior to
beginning clinical trials in humans in the U.S. of a product, or any comparable application to and acceptance by the Regulatory Authority of a country or group of countries other than the U.S. including but not limited to the EMA, prior to beginning
clinical trials in humans of a product in that country or in that group of countries. 
 1.34 “Information”
means any data, results, business, technical or scientific information, and information of any type whatsoever, in any tangible or intangible form, including, without limitation, Know-How (including
Aerogen Know-How and Dance Know-How, as the case may be), trade secrets, specifications (including Specifications), instructions, or compositions of matter of any type or kind (whether patentable or not patentable or otherwise protectable),
software, algorithms, marketing reports, test data (including without limitation preclinical and clinical test data), analytical and quality control data, other study data, and procedures. 

1.35 “Indemnifying Party” shall have the meaning set forth in Section 8.3 (Indemnification
Procedures). 
 1.36 “Indemnitee” shall have the meaning set forth in Section 8.3
(Indemnification Procedures). 
 1.37 “JDC” shall have the meaning set forth in Section 3.1
(Joint Development Committee). 
 1.38 “Know-How” means any and all technology, know-how, discoveries,
unpatented inventions, practices, expertise, developments, improvements (including Improvements), techniques, methods, test methods, processes, procedures, formulae, and drawings whether or not patentable or protectable. 

  
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 1.39 “Law” means any supranational, national, federal, state,
provincial or local law, statute or ordinance, or any rule, regulation, or published guidelines promulgated by any governmental or regulatory authority, including without limitation, the United States Food, Drug and Cosmetic Act and applicable
regulations promulgated thereunder, as they may be amended or supplemented from time to time, or an equivalent application under any successor laws or regulations (the “Act”), and any foreign equivalents thereof, in each case as applicable
to the Parties or their activities hereunder. Law includes without limitation any supranational, national, federal, state, provincial or local law, statute or ordinance, or any rule or regulation, pertaining to environment, health or safety. 

1.40 “License” means the licenses set forth in Sections 2.1 (License) and Section 2.2 (Right to
Sublicense). 
 1.41 “Licensed Intellectual Property” means the Aerogen Patents, Aerogen Know-How any
Aerogen Information, and Aerogen New Technology.  
 1.42 “NDA” means a New Drug Application filed
with the FDA to obtain Regulatory Approval for a product in the U.S. or any comparable application filed with the Regulatory Authority of a country or group of countries other than the U.S. including but not limited to the EMA, to obtain Regulatory
Approval for a product in that country or in that group of countries. 
 1.43 “Net Sales” means the gross
amount received by Dance, its Affiliates, or any Commercialization Partner or sub-licensee of a Commercialization Partner for the bona-fide commercial sales in the Territory of the Device or Drug Product (provided the Drug Product is sold for use
solely with the Device), to third party purchasers in arms-length transactions (which, for the avoidance of doubt, includes distributors who purchase Device and Drug Product), less the following deductions, determined in accordance with IFRS as
applied consistently by the selling person or entity: 
 (i) freight, postage, shipping charges and other transportation expenses including
insurance, packing and distribution charges, commercially reasonable quantity, trade and cash discounts (including discounts for prompt payment), allowances, and credits actually allowed or paid (including commercially reasonable discounts to
customers in form of deductions actually allowed or fees actually paid such as cash coupons) in so far as such discounts, allowances and credits relate to relevant sales of the Device and Drug Products; 

(ii) billing error adjustments, retroactive price reductions and credits or allowances granted upon rejections or returns for damaged goods of
the Device and Drug Products (including as a result of defects or recalls or because of rebates or retroactive price adjustments); 

  
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 (iv) amounts payable resulting from governmental (or agency thereof) mandated rebate or discount
programs (including discounts mandated by or granted in response to laws or regulations, retroactive price reductions or rebates paid or credited to any governmental authority or agency or third party payor, administrator or contractee, including in
respect of any government subsidized program such as Medicare and Medicaid rebates to the degree that the amounts so payable relate to relevant sales of the Device and Drug Products; 

(v) sales taxes, excise taxes, use taxes, tariffs and customs or import/export duties, or other governmental charges actually due or incurred
with respect to such sales, including value-added taxes; and 
 For the avoidance of doubt Net Sales shall not include any
transfer of Devices or Drug Product to third parties for clinical trial use (including in connection with the conduct of any Phase 4 clinical trials), or for sampling, charitable or compassionate use purposes 

1.44 “The Novartis Licence” means the license agreement made between Nektar Therapeutics and Stamford Devices
Limited and dated 22nd November 2007 pursuant to which Stamford Devices Limited acquired rights to proprietary technology which rights were later assigned to Aerogen; 

1.45 “Patent(s)” means: 

(a) patents or patent applications; and 

(b) any divisionals, continuations, substitutions, continuations-in-part, extensions, renewals, confirmations, re-examinations, registrations
or reissues of such patents or applications, as applicable. 
 1.47 “Priority Party” shall have the meaning
set forth in Section 5.4.3 (Enforcement). 
 1.48 “Proceeding” means any action, arbitration,
audit (to the knowledge of such Party), hearing, investigation (to the knowledge of such Party), litigation or suit (whether civil, criminal, administrative, investigative or informal) commenced, brought, conducted or heard by or before, or
otherwise involving any governmental entity or arbitrator. 
 1.49 “Product-Specific Infringement” shall
have the meaning set forth in Section 5.4.1 (Enforcement). 
 1.50 “Project Fees” means those
fees that have been agreed to by the Parties and set forth in the Budget. 
 1.51 “PTO” shall have the
meaning set forth in Section 5.3.4 (Patent Prosecution and Maintenance). 
 1.52 “Regulatory
Activities” means any and all actions reasonably necessary or required to obtain or maintain the Regulatory Approvals, including, without limitation, the design and conduct of clinical trials as necessary. 

1.53 “Regulatory Approval” means with respect to the Device, the Drug Product or any Improvements to any of
the foregoing, any approval required under the Act (i.e., the approval of the 510(k) or NDA, as applicable) and any similar governmental approvals required in any jurisdiction in the Territory to Exploit such Device, Drug Product or
Improvements to any of the foregoing. 

  
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 1.54 “Regulatory Authority” means the FDA and any similar
governmental authority, administrative agency or commission of any country, state, county, city or other political subdivision in the Territory. 

1.55 “Requesting Party” shall have the meaning set forth in Section 5.4.3 (Enforcement). 

1.56 “Royalty” shall have the meaning set forth in Section 4.3.1 (Royalty Rate). 

1.57 “Royalty Term” means, on a country-by-country basis in the Territory, the period of time from the First
Commercial Sale in such country through the later of (i) the date upon which there is no Valid Claim of an Aerogen Patent covering the Device sold by Dance, its Affiliates, distributors or Commercialization Partners, (which shall for the
avoidance of doubt include all sublicensees) as applicable, in such country, or (ii) [*] years after the First Commercial Sale in such country. Notwithstanding the foregoing, if under Section 5.2.1, Dance assigns any of Dance’s right,
title or interest in any Improvement to Aerogen that is Aerogen New Technology, it is understood and agreed that (i) for the purposes of determining Royalty payments hereunder, any Patent solely covering such Improvement shall not be deemed an
Aerogen Patent, and (ii) Dance will only be obligated to pay Know How Royalties on Net Sales of Devices or Drug Products in a particular country if the only Valid Claim covering the Device or its manufacture, sale, use or importation in such
country covers such Improvement assigned to Aerogen by Dance. 
 1.58 “Specifications” means those
features, functions, attributes, manufacturing requirements and performance characteristics of the Device that are set forth in the Device Development Plan. 

1.59 “Sublicense” shall have the meaning set forth in Section 2.2 (Right to Sublicense). 

1.60 “Sublicensee” shall mean any party who obtains a Sublicense from Dance or from a Commercialization
Partner 
 1.61 “Supply Agreement” shall have the meaning set forth in Section 7 (Supply). 

1.62 “Term” shall have the meaning set forth in Section 9 (Term). 

1.63 “Territory” means the world. 

1.64 “Valid Claim” means an issued claim of an unexpired Patent, or a claim of a pending Patent application,
on a country-by-country basis, that shall not have been withdrawn, canceled or disclaimed, or held invalid or unenforceable by a court of competent jurisdiction. On a country-by-country basis, a Patent application pending for more than eight
(8) years shall not be considered to have any Valid Claim for purposes of this Agreement unless and until a Patent with respect to such application issues with such claim. 

  
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 1.65 “Vibrating Mesh Inhaler” means any device that delivers a
drug formulation in the form of liquid droplets to the human airways by means of inhalation, using the vibrating mesh aerosol generating principle. For the avoidance of doubt, (i) the term “Vibrating Mesh Inhaler” shall not include
any device that delivers a drug formulation solely or primarily via the nose, and (ii) the term “Device” includes “Vibrating Mesh Inhaler”. 
  

	2.	GRANT OF RIGHTS 

 2.1 License. Subject to the non-compete provisions of
Section 6.5 (Non-Compete in Territory) in this Agreement, the other terms and conditions of this Agreement and compliance with the foregoing: 

2.1.1 Aerogen hereby grants to Dance an Exclusive, sublicensable (in accordance with Section 2.2 (Right to Sublicense)),
revocable, royalty-bearing license under the Licensed Intellectual Property to Exploit the Device in the Field in the Territory. 
 2.1.2
For the avoidance of doubt, except as permitted under Section 7 (Supply) of this Agreement and the Supply Agreements, the license granted to Dance in Section 2.1.1 above does not grant Dance the right to Exploit
(a) the Device in combination with drugs other than Drug Products, or (b) the Device in fields other than the Field. 
 2.1.3
The License shall be rendered non-exclusive, irrevocable, perpetual, fully sublicensable fully paid-up and royalty-free upon the expiration of the Royalty Term, on a country-by-country basis. 

2.2 Right to Sublicense. Subject to the terms and conditions of this Agreement and compliance therewith, Dance shall have the right to
grant sublicenses (individually, a “Sublicense”) under the License to third parties to Exploit the Device, and if a Sublicense is granted to a Commercialization Partner, such Sublicense shall include the right of such
Commercialization Partner to grant further sublicenses. Dance shall promptly provide Aerogen with a redacted copy of any agreement relating to any Sublicense granted by Dance, which shows the name of the Sublicensee and the royalty rate and other
applicable economic terms of such Sublicense. Any Sublicense granted by Dance shall be consistent with Dance’s obligations under this Agreement. If a Sublicensee breaches the Sublicense agreement, Dance shall use Commercially Reasonable
Efforts, at its own expense, to enforce the terms of such Sublicense against the Sublicensee, including termination if such breach is not cured within thirty (30) days and pursuit of any fees or other consideration payable to Dance pursuant to
such Sublicense. Any Sublicense shall not relieve Dance of its obligations to Aerogen under this Agreement and Dance shall remain fully responsible for performance of this Agreement notwithstanding any Sublicenses granted by Dance. 

2.3 Disclosure of Licensed Intellectual Property. Prior to the Effective Date, Aerogen has delivered to Dance, or provided Dance with
copies of, all material Aerogen Patents. In addition, following the Effective Date, Aerogen shall promptly deliver to Dance, or provide Dance with copies of, (i) any Aerogen Information and Aerogen Know-How related to the Device in the field,
that is reasonably requested by Dance; and (ii) all Aerogen Patents, in each case, as they are created or become available to the extent that such patents relate to the Device in the Field. 

  
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 2.4 No Implied Licenses. Except as expressly set forth in Sections 2.1 and 2.2, neither
Party will obtain any rights of any kind or license under any intellectual property or Confidential Information of the other Party, including any patent application or patent, whether by reason of this Agreement or otherwise. 

 

	3.	DEVELOPMENT 

 3.1 Joint Development Committee. To facilitate communication between
the Parties with respect to the foregoing, the Parties shall establish and jointly participate in a Joint Development Committee (“JDC”). 

3.1.1 Performance of Responsibilities. The JDC shall perform its responsibilities under this Agreement based on the principles of prompt
and diligent development of the Device in the Territory, consistent with good medical device and drug practices and the ultimate maximization of long-term profits derived from the sale of the Device for use in combination with the Drug Products in
the Territory. The JDC shall have only the power and the authority expressly assigned in this Section 3 (Development) and elsewhere in this Agreement, and the JDC shall not have any power or authority to amend, modify, or waive
compliance with this Agreement. 
 3.1.2 Dissolution of the JDC. The JDC shall be automatically disbanded within thirty (30) days
of the latter of completion of the last milestone or delivery of the last deliverable under the Device Development Plan. 
 3.1.3
Membership of the JDC. Each Party will assign three (3) of its employees to serve as regular members of the JDC to represent their development, regulatory, quality, and manufacturing departments or divisions with additional representation
from their finance and marketing departments on an as needed basis. Either Party may designate substitutes for its members if one (1) or more of such Party’s designated members are unable to be present at a meeting. From time to time each
Party may replace its members by written notice to the other Party specifying the prior member(s) and their replacement(s). Dance shall select one (1) of its members as the chairperson of the JDC during the first year of the Term. On the first
anniversary of the Effective Date, Aerogen shall select one (1) of its representatives as the chairperson of the JDC during the second year of the Term, and, thereafter, on each anniversary of the Effective Date, the Parties shall rotate
designation of the chairperson during the next year of the Term. The chairperson shall have no special authority over the other members of the JDC other than calling meetings and setting the agenda as set forth below, and shall have no additional
voting rights. 
 3.1.4 JDC Meetings and Agendas. 

(a) Meeting Agendas. The chairperson of the JDC shall be responsible for calling meetings and shall prepare a draft agenda containing
the topics (for example, Regulatory Approval, development and/or manufacturing issues) for the upcoming meeting. The chairperson shall disclose to the other members of the JDC (i) the draft agenda no later than ten (10) business days in
advance and (ii) its final agenda (along with appropriate related Information) at least five (5) business days in advance, of each meeting of the JDC; provided that, under exigent circumstances requiring JDC input, the chairperson
may provide the draft and final agenda to the other members of the JDC with a lesser period of time in advance of the meeting, or may propose that there not be a specific agenda for a particular meeting, so long as such other JDC members consent to
such temporary changes to the general process for distributing the agenda for JDC meetings. 

  
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 (b) Meetings. The JDC shall hold at least one (1) meeting per calendar quarter on
such dates and at such times each calendar quarter as it elects. Meetings of the JDC shall be effective only if at least one (1) representative of each Party is present or participating. The JDC may meet either (i) in person at each
Party’s facilities on alternating occasions, or at such locations as the Parties may otherwise agree or (ii) by audio or video teleconference. With the prior consent of each Party’s representatives, other representatives of each Party
or third parties involved with the Device may attend meetings as nonvoting participants provided such third parties are reasonably acceptable to the other Party and are subject to obligations of confidentiality. Additional meetings of the JDC may
also be held with the consent of each Party, or as required under this Agreement, and no Party shall unreasonably withhold or delay its consent to hold such an additional meeting. Each Party shall be responsible for all of its expenses incurred in
connection with participating in the JDC. 
 (c) Minutes. The Parties members shall take turns and be alternately responsible every
other meeting for preparing and issuing minutes of each such meeting within thirty (30) days thereafter. Such minutes shall not be finalized until the other Party reviews and confirms in writing with the preparing Party the accuracy of such
minutes in writing, which review by such other Party shall be completed within thirty (30) days after the receipt of the draft minutes. 

3.1.5 JDC Decisions and Actions. 

(a) Except as expressly provided in this Section 3.1.5 (JDC Decisions and Actions), actions to be taken by the JDC shall be taken
only following unanimous vote, with each Party having one (1) vote. 
 (b) Dispute. If the JDC fails to reach unanimous
agreement on a matter for decision that is within the JDC’s power and authority during a period in excess of forty-five (45) days after the first discussion of such matter at the JDC (or such longer period as mutually agreed by the
Parties), the dispute resolution provisions of Article 12 (Dispute Resolution) shall apply. 
 3.2 Development Program. 

3.2.1 General. The Parties shall undertake a development and feasibility assessment program to develop the Device, including design,
development, testing, and refinement of the Device meeting Specifications and Product Requirements up to the point where the Device is commercial ready (the “Development Program”). For the purposes hereof, “commercial ready”
includes, but is not limited to: CE marked product, supply chain ready to support product manufacture for approval testing and certification to meet global regulatory/quality standards in the major countries where product being sold. Aerogen shall
be responsible for conducting all Development Program activities and providing deliverables to Dance as set forth in the Device Development Plan (defined below) for the Project Fees set forth in the Budget. Device design must follow Design Control
standard that meet QSR and ISO 13485. Dance shall be responsible for establishing the Product Requirements for the Device, through and with consultation from Aerogen, which Product Requirements shall be set forth in the Device Development Plan. The
Parties shall together establish the Specifications and incorporate into the Device Development Plan at the appropriate stage of Development. The Specifications and Product Requirements may be modified from time to time in writing by the Parties as
provided for in Section 3.3.2 and set forth in an amendment to the Device Development Plan. 
 3.3 Device Development Plan.

 3.3.1 Attached hereto as Schedule B is a plan mutually agreed to by the Parties that sets forth the Development Program
activities for the Device (the “Device Development Plan”), including, without limitation: 
  

	 	(a)	Product Requirements (prepared by Dance in consultation with and accepted by Aerogen), 

  
 11 

	 	(b)	Specifications (prepared by Aerogen in consultation with and approved by Dance), 

  

	 	(c)	Budget including Project Fees for achieving individual phases of the Device Development Plan (prepared by Aerogen and approved by Dance), 

 

	 	(d)	Device Development Plan Milestones (mutually agreed to by the Parties) 

  

	 	(e)	Deliverables (mutually agreed to by the Parties) 

  

	 	(f)	Time estimates for milestones and deliverables for the Development Program (mutually agreed to by the Parties). 

3.3.2 Modifications to Device Development Plan. Following the Effective Date, any modifications to the Device Development Plan,
including, without limitation, any modification to the Specifications or Product Requirements, shall be made through the JDC, by motion of either Party. 

3.3.3 Development Manufacturing. Aerogen shall control all development manufacturing activities pertaining solely to the Device;
provided that Aerogen shall (i) keep Dance reasonably informed with respect to such activities, (ii) consider in good faith all reasonable suggestions and comments provided by Dance with respect to such activities and (iii) not
take any action or fail to take any action which would be reasonably likely to have a material adverse effect on the development of the Device and/or manufacture thereof, including the quality, reliability, and robustness of the Device or which
would otherwise have an adverse effect on the Drug Product when used with the Device, or the ability of Dance or any Affiliate or Commercialisation Partner of Dance to obtain Regulatory Approval of the Device and/or Drug Products anywhere in the
Territory. Dance shall have the right, on reasonable advance notice and during regular business hours and under conditions of confidentiality, to visit (or have its designee, who is reasonably acceptable to Aerogen, visit) Aerogen’s facilities
where the Device is being developed, tested and manufactured, and to observe such development, testing and manufacturing activities and review all documents including data and records related the design and development of the Device. 

3.3.4 New Features and Design Improvements. 

(a) General. From time to time, each Party may propose to the other Party that it include in the Specifications and Product
Requirements for the Device any new features or other Improvements to the Device. In such case, the proposing Party shall present to the other Party the new feature or other Improvement (and in the case of Aerogen, together with a reasonably
detailed analysis of cost/risk/benefit thereof), and the other Party shall consider such proposal in good faith (including making the appropriate personnel of such other Party available to discuss any such proposal with the proposing Party);
provided that Dance shall solely control, and retain final decision-making authority in its sole discretion, with respect to incorporating any such new feature or other Improvement in the Device. 

(b) Closed System. Dance and Aerogen agree to jointly work in good faith towards implementing certain features or practices intended to
discourage and/or prevent the unauthorized use of medications in the Device, which shall be set forth in the Device Development Plan. 

  
 12 

 3.3.5 Future generation devices: Dance’s competitive strategy to market their
inhaled insulin products is to put a low cost device on the market as soon as possible and then follow quickly with improvements and further versions of the device. Dance and Aerogen would like to begin working together on the development of at
least one follow-on device before the first device is on the market. The parties anticipate that during the development of the first device, concepts and improvements for use in 2nd, 3rd and additional versions of the device will
arise. Although the next generation devices will require their own new development plans and budgets (preferably much abbreviated versions of the 1st generation plans and budgets), it is assumed that their development will be covered under the
terms of this Agreement. 
 3.4 Regulatory Approval and Regulatory Activities. 

3.4.1 Regulatory Approval of the Device and Drug Product. Dance shall determine the appropriate strategy for Regulatory Approval for the
Drug Device Combination in the Territory, after reasonable consultation with Aerogen through the JDC. Dance shall be solely responsible at its sole cost and expense for obtaining and maintaining all Regulatory Approvals for the Drug Device
Combination in the Territory and any and all NDAs and other similar foreign regulatory filings in the Territory related to the Drug Device Combination. Such filings shall be submitted in the name of Dance and shall be owned by Dance. Dance shall
(i) keep Aerogen reasonably informed with respect to such activities; (ii) upon Aerogen’s request shall provide Aerogen with copies of correspondence received from and to be provided to Regulatory Authorities concerning the Device;
(iii) shall consider in good faith all reasonable suggestions and comments provided by Aerogen with respect to such correspondence and other communications with Regulatory Authorities, and, specifically, use Commercially Reasonable Efforts to
allow Aerogen reasonable advance opportunity to comment on initial submissions and subsequent amendments with respect to the Regulatory Approvals; (iv) use Commercially Reasonable Efforts to respond to all requests for information received from
Regulatory Authorities with respect to the Drug Device Combination in a timely and complete manner; and (v) not voluntarily take any action or fail to take any action which would be reasonable likely to have an adverse effect on the development
of the Drug Device Combination and related Regulatory Approvals, including with respect to the timelines set forth in the Device Development Plan. 

3.4.2 Regulatory Assistance. Aerogen shall be responsible for creating and maintaining design history files for the Device and for
obtaining and maintaining all applicable regulatory and safety certifications for the Device including those set forth in the Product Requirements (e.g., CE Mark) for the Device at Dance’s cost. In the event that Aerogen uses the Device
outside of the Field, Aerogen will be responsible for the cost of maintaining regulatory and safety certifications from the Device for so long as it continues to use the Device outside of the Field. In addition, Aerogen shall, at Dance’s
expense, cooperate with Dance in providing all information (including Information) and reasonable assistance, and taking all actions reasonably requested by Dance, that are necessary or desirable to enable Dance to comply with its obligations under
this Agreement including those obligations relating to obtaining Regulatory Approvals for the Drug Device Combination in the Territory. Without limiting the generality of the foregoing, Aerogen shall (i) provide Dance with copies of
correspondence received from and to be provided to Regulatory Authorities concerning the Device, including CE marks and manufacturing inspections; (ii) consider in good faith all reasonable suggestions and comments provided by Dance with
respect to such correspondence and other communications with Regulatory Authorities; and (iv) not voluntarily take any action or fail to take any action which would be reasonable likely to have an adverse effect on the development of the Drug
Device Combination or Dance’s ability to obtain Regulatory Approvals for the Drug Device Combination, including with respect to the milestones and timelines set forth in the Device Development Plan. In addition to the foregoing, Aerogen shall
(a) assist Dance with and accompany Dance in its interactions with Regulatory Authorities as requested by Dance and at Dance’s expense and (b) obtain and maintain all applicable regulatory and safety certifications for the Device
including those set forth in the Product Requirements. Dance shall provide Aerogen with copies of all correspondence received from and to be provided to Regulatory Authorities concerning the Device and access to all regulatory documentation relating
to the Drug Device Combination if so requested. 

  
 13 

 3.4.3 Data and Rights of Reference. 

(a) Data. As further provided in Section 5.2.1(c) (Improvements), Dance shall exclusively own all Dance Data, including, without
limitation, all preclinical, clinical and non-clinical data generated and collected by or on behalf of the Parties (alone or together or with others) after the Effective Date in connection with the Development Program or the Parties’ other
activities in furtherance of the development and commercialization of the Drug Device Combination under this Agreement. Without limiting the foregoing, if Dance furnishes to Aerogen any materials, samples or prototypes including any Formulations or
Packaging, and Aerogen tests, analyzes, evaluates, adapts, creates derivatives of or modifies any of the foregoing, the results of such testing, analysis, adaptation, derivation, evaluation or modification (including any data and reports) shall be
solely owned by Dance and deemed and treated as Dance Data, Dance New Technology or Dance Know-How, as the case may be. Other than as expressly provided for in the Device Development Plan, Aerogen may not copy, distribute, reverse engineer (by way
of example but not limitation, by performing tests such as HPLC, gas chromatography or x-ray crystallography), sell, lease, license or otherwise transfer, modify, adapt, or create derivatives of any materials, samples or prototypes furnished by
Dance to Aerogen hereunder, including any Formulation or Packaging. 
 (b) Right of Reference. Dance, or its Affiliates or
Commercialization Partners, shall have the right to reference Aerogen’s or its Affiliates’ filings with Regulatory Authorities pertaining to the Aeroneb Go Nebulizer. Aerogen shall provide Dance with reasonable access to the design history
file (“DHF”) and any risk analysis materials pertaining to any such Aeroneb Go Nebulizer, or the Device, and shall, from time to time, at Dance’s expense but with the prior approval of Aerogen (such approval not to be
unreasonably withheld, conditioned or delayed), make available to Dance copies of such selected portions of such DHF and risk analysis materials as Dance may request. 

(c) Aerogen shall have the right to reference any data related to the delivery of the Drug Device Combination generated or collected by or for
Dance or its Affiliates or Commercialization Partners, for the purpose of conducting the Regulatory Activities hereunder and for purposes outside of this Agreement. 

3.5 Commercialization. Subject to Section 3.7 (Diligence Obligations), Dance shall, at its own expense, be solely
responsible, directly or through Affiliates or Commercialization Partners, for conducting all commercialization activities in the Territory relating to the Drug Device Combination, including any activities relating to the Sublicense of the Drug
Device Combination, as well as the Exploitation of the Drug Device Combination. Subject to the terms and conditions of this Agreement, all decisions with respect to commercialization of Drug Device Combination will be at Dance’s sole
discretion. 
 3.6 Device Brand Name: The Parties will work together to establish a brand name for the Device. Such brand name
may be used by Dance in the Field and by Aerogen outside the Field. The Parties intend to develop new versions of the Device over time and will maintain continuity of this brand name. The Parties agree to establish the brand name within
twelve (12) months of signing this Agreement. Both parties will participate in coming up with potential names for consideration and if mutual agreement cannot be reached, Dance will have the final say in selecting the brand name. Dance
will be responsible for all third party costs associated with selecting and trade marking the brand name. 

  
 14 

 3.7 Diligence Obligations. 

3.7.1 Commercially Reasonable Efforts. 

(a) Aerogen shall use Commercially Reasonable Efforts to conduct its obligations under the Development Program, including those set forth in
the Device Development Plan. 
 (b) Subject to successful completion of the Development Program through delivery of Devices consistent with
the Specifications and Product Requirements set forth in the Device Development Plan, and the manufacture and supply of Devices under and in accordance with the Supply Agreements, Dance shall use, or shall cause its Affiliates or Commercialization
Partners to use, Commercially Reasonable Efforts to (i) obtain Regulatory Approval and conduct Regulatory Activities for the Device and Drug Product or a combination Regulatory Approval for the Drug Product and Device in the major markets in
the Territory, and (ii) commercialize the Device for use with Drug Product in the major markets in the Territory. Dance shall not be obligated to commercialize more than one (1) Drug Product pursuant to this Agreement. 

3.7.2 For clarity, it is understood that the obligation to use Commercially Reasonable Efforts as set forth in this
Section 3.7 shall apply to any Commercialization Partners of Dance, and to the extent Dance has obtained reports and plans from such Commercialization Partners and are not restricted by confidentiality obligations, Dance shall share such
reports and plans with Aerogen at least annually through the JDC in the same manner as for reports and plans of its own development. This Section 3.7 shall also apply to any permitted successors or assigns of Dance under this Agreement.

 3.7.3 Maintenance of Exclusivity. To maintain the exclusivity of its License under this Agreement, Dance, either directly or
through an Affiliate, successor, assign or Sublicensee (including any Commercialization Partner), shall use Commercially Reasonable Efforts to achieve the milestones set forth below for the Drug Product. It is understood and agreed that even after
Dance secures the financing that is required under Section 3.7.3(a) below, Dance will be required to secure additional financing from time to time during the term hereof in order to meet its obligations under this Agreement,  

 

	 	(a)	Secure adequate financing (including payments from any Affiliates or Commercialization Partners) to fund preclinical development of the Drug Product up to submission of an IND (or its foreign equivalent in the EU) to
the FDA or EMA, as the case may be, within [*] months of the Effective Date. 

  

	 	(b)	Initiate a Phase 1 Clinical Trial within [*] of the Effective Date. 

  

	 	(c)	Initiate a registration Clinical Trial within [*] of the Effective Date. 

  

	 	(d)	Begin commercial sales of any Drug Product by the end of the [*] year after the Effective Date. 

 For purposes
hereof, “initiate” means the enrollment of the first patient or subject in such Clinical Trial. In the event that Dance does not meet one or more of the foregoing milestones with respect to the Drug Product and such failure is due in whole
or in part to (i) an event of force majeure, (ii) any defects in the Device, (iii) any delays with respect to the design, development, testing, manufacture or supply of the Device meeting Specifications and Product Requirements,
(iv) any acts or omissions of Aerogen or its employees, agents or contractors, (v) any acts or omissions of any Regulatory Authority, (vi) any new Laws, (vi) adverse results of a technical or clinical (by way of example but not
limitation, unacceptable product properties from a safety, toxicity or efficacy standpoint, then the above milestones will be extended as mutually agreed by the Parties taking into account such circumstances. In the event that Dance does not meet
one or more of the foregoing milestones and/or Dance fails to use Commercially Reasonable Efforts to make commercial sales and this failure is not remedied within six months of notice to that effect being delivered to Dance by Aerogen, solely or
mainly due to issues unrelated to any of the circumstances described in the preceding subsections (i) through 

  
 15 

 
(vi), then in addition to the extinguishment of Aerogen’s obligations not to compete with Dance pursuant to Section 6.5 (Non-Compete in Territory), Dance’s License shall
automatically convert to a non-exclusive license for a period of twelve (12) months from the date of the missed milestone. If at the end of such twelve (12) month period, Dance still has not met the applicable milestone, then Dance’s
License shall be automatically revoked. If, however, during such twelve (12) months, Dance does meet the missed milestone and Aerogen has not licensed the rights under the License to a third party, then such License shall re-convert to an
exclusive license in favor of Dance. Furthermore, if Dance or an Affiliate, successor, assignee or Commercialization Partner has not begun commercial sales of any Drug Product by the end of the [*] year after the Effective Date, then Dance’s
License shall automatically convert to a non-exclusive license. The conversion of Dance’s License from an exclusive license to a non-exclusive license, or the termination of the License, shall be Aerogen’s sole remedy, and Dance’s
sole liability, as a result of the failure to meet any of the milestones set forth in this Section 3.7.3. 
 3.7.4 Reports. Aerogen
shall provide Dance, at least quarterly through the JDC, with reports of the progress of its development of the Device including plans for the development of the Device in the upcoming quarter and year. Dance shall provide Aerogen, at least
quarterly through the JDC, with reports of its interactions with Regulatory Authorities under Section 3.4.1. All reports shall be deemed and treated as Confidential Information of the Party providing the report.  

 

	4.	ECONOMIC TERMS 

 4.1 Equity Warrants. In partial consideration of the rights and
licenses granted to Dance by Aerogen under this Agreement, Dance shall: 
  

	 	(a)	on the Effective Date, issue to Aerogen a warrant to purchase 194,288 shares of the Common Stock of the Company, par value $0.0001 per share (the “Common Stock”), at an exercise price of $0.01 per
share, in substantially the form attached hereto as Schedule D (the “Aerogen Warrant”) and Dance warrants that the number of shares and options issued and outstanding at the date of this Agreement is 9,714,384 and that no shares
other than Common Stock and Common Stock Options are in issue; and 

  

	 	(b)	on the Effective Date, issue to Aerogen a Warrant to purchase 485,720 shares of Common Stock, at an exercise price of $0.01 per share, in substantially the form attached hereto as Schedule
D (the “Milestone Warrant”), which Milestone Warrant shall provide, among other things, that the Milestone Warrant shall not be exercisable, whether in whole or in part, unless and until Dance achieves the
Milestone.

 For purposes of this Agreement, (i) “Insulin Feasibility Study” shall mean the insulin packaging
feasibility study currently being conducted by Dance pursuant to which Dance is utilizing the Licensed Intellectual Property to determine if insulin can be packaged in a manner that permits it to be combined, and integrated with, the Device and
(ii) the “Milestone” shall mean, upon completion, and as a result, of the Insulin Feasibility Study only, Dance’s identification and selection of a viable insulin packaging system that can successfully combine, and
integrate, insulin with the Device. 

  
 16 

 4.2 Development Costs. 

4.2.1 Project Fees Paid by Dance. Dance shall pay Aerogen the manufacturing transfer price, the Project Fees set forth in the Budget,
and the Royalties provided for in Section 4.3. The Budget shall set forth the Project Fees to be paid by Dance to Aerogen for achieving certain phases of the design, development, testing, and refinement, of the Device. Project Fees for the
development work identified as Steps 1 and 2 in the Device Development Plan are fixed and shall be guaranteed by Aerogen to cover the items specifically listed in the relevant phase of the Device Development Plan. [*]. In the interim Aerogen
has provided best estimates of pricing for Steps 3 and 4 and these estimates are set out in the Device Development Plan. Aerogen and Dance shall use Commercially Reasonable efforts to anticipate Specifications and Product Requirements for the Device
Development Plan. However in the event that the JDC determines that there should be a change to the Specifications or Product Requirements and the change impacts the Device Development Plan (increasing either materials or labour) then the relevant
phase of the Device Development Plan shall be modified and Aerogen shall be entitled to invoice Dance for the costs of the change. Aerogen shall invoice Dance for an amount that is [*] of the Project Fee for each step, prior to the
commencement of such step, and Dance shall pay such [*] of the Project Fee for such step within thirty (30) days after the receipt of the invoice therefor. Aerogen shall notify Dance on completion of each step and shall provide
reasonable evidence of completion of the relevant step in accordance with the Device Development Plan to Dance if requested. Dance shall pay Aerogen the balance [*] of the Project Fee for the step and shall pay for any additional items
properly invoiced within thirty (30) days of receipt of such notice. Dance shall be responsible for the costs and expenses related to the development of the Drug Product and the Drug Device Combination and for obtaining Regulatory Approvals for
the Drug Device Combination. Late payment shall bear interest equal to European Central Bank main refinancing rate on the date such payment is due, plus an additional seven percent (7%), calculated on the number of days such payment is delinquent

 4.3 Royalties. 

4.3.1 Royalty Rate. In partial consideration of the License granted under this Agreement and subject to the terms and conditions of this
Agreement, during and until the expiration of the applicable Royalty Term on a country by country basis, Dance shall pay to Aerogen a royalty (“Royalty”) on annual worldwide Net Sales by Dance or its Affiliates or Commercialization
Partners in each such country based on the percentages set forth below: 
  

					
	 Annual Worldwide Net Sales
	  	Percentage Royalty	 
	 [*]
	  	 	[*]	  
	 [*]
	  	 	[*]	  
	 [*]
	  	 	[*]	  

 The above Royalties shall be referred to herein as Patent Royalties and shall be due and payable only if the
Device sold in a particular country or its manufacture, use, importation or sale is covered by one or more Valid Claims of an Aerogen Patent in that country. 

  
 17 

 For the avoidance of doubt, and by way of illustration the Parties have set out a sample
calculation of Royalties due in the event of annual sales of [*]: 
 [*] 

[*] 
 [*]

 Total Royalties                 [*] 

4.3.2 Know How Royalties. In countries where the Device or its manufacture, use, importation or sale is not covered by one or more Valid
Claims of an Aerogen Patent in such countries, Dance will pay Aerogen a Know-how Royalty on annual Net Sales by Dance or its Affiliates or Commercialization Partners in such countries during the Royalty Term equal to fifty percent (50%) of the
percentages set out in Section 4.3.1.  
 4.3.3 Annual Minimum Royalties. In partial consideration of the License granted
under this Agreement and subject to the terms and conditions of this Agreement, and in order to maintain the exclusivity of such License, beginning twelve (12) months after the First Commercial Sale in the United States or EU Major Markets,
until the tenth (10th) anniversary thereof, Dance shall pay to Aerogen the amounts specified in the table below (“Annual Minimum Royalties”) less any Royalty previously paid
for the applicable year:  
  

									
	 Year of Sales
 following
First
 Commercial Sale
	  	Annual Minimum Royalties	 	  	Sales & % Royalty
Applicable	 
	 2nd
	  	 	[*]	  	  	 	[*]	  
	 3rd
	  	 	[*]	  	  	 	[*]	  
	 4th
	  	 	[*]	  	  	 	[*]	  
	 5th – 10th
	  	 	[*]	  	  	 	[*]	  

 Notwithstanding the foregoing, the Parties shall agree to eliminate or reduce the Annual Minimum Royalty in
an equitable manner in the event Dance’s or its Affiliates’ or Commercialization Partners’ ability to sell the Device or Drug Product for use solely with the Device, is diminished due to (a) circumstances caused by Aerogen
(including failure to achieve results or failure of Device to meet Specifications and Product Requirements as set forth in the Device Development Plan, or failure to supply Devices consistent with the Supply Agreement), (b) circumstances caused
by Regulatory Authorities or (c) an event of force majeure. 
 4.4 Payment and Reports. Within sixty (60) days after the end
of each calendar quarter in which Net Sales have occurred, Dance shall submit to Aerogen a written report setting forth for such preceding calendar quarter the Gross Sales made by Dance, its Commercialization Partner(s) and all Sublicensees together
a calculation showing all deductions and Net Sales received and the calculation of the Royalty payable to Aerogen pursuant to Section 4.3 (Royalties). Such report shall be accompanied by the total Royalty due, if any, to Aerogen pursuant
to Section 4.3 (Royalties). If the Royalty paid for any period set forth in the table in Section 4.3.1. (Royalties) is less than the applicable Annual Minimum Royalty for such period, then sixty (60) days after the
applicable period, Dance shall pay to Aerogen the difference between the applicable Annual Minimum Royalty and the Royalty previously paid for such period. All payments shall be made in United States Dollars. Late payment shall bear interest equal
to European Central Bank main refinancing rate on the date such payment is due, plus an additional seven percent (7%), calculated on the number of days such 

  
 18 

 
payment is delinquent. Sales made in currencies other than United States Dollars shall be converted to United States Dollars on the basis of the average exchange rate for the calendar quarter in
which such sales were made. Such calendar average exchange rate shall be calculated by averaging monthly exchange rates published by The Wall Street Journal, Eastern U.S. Edition. 

4.5 Record Keeping. Dance shall keep, and shall cause its Affiliates, Commercialization Partners and Sub-licensees to keep complete and
accurate books of accounts of record in connection with the sale of Drug Products and Devices to permit verification of payments made hereunder. Such records belonging to Dance and its Affiliates and Commercialization Partners shall be maintained
for a period of at least six (6) years from the date on which they were generated. 
 4.6 Audit Rights. Aerogen shall have the
right to have an independent third party nationally-recognized accounting firm acceptable to Dance access the books and records of Dance, its Commercialization Partner(s) and all Sublicensees solely to the extent necessary to verify the accuracy of
the reports and payments made hereunder. Such access shall be conducted upon reasonable written notice to party to be inspected and during that party’s normal business hours. Such access shall not be more frequent than once per calendar year
and may occur only with respect to a calendar quarter in the immediately preceding sixty (60) months. The auditing Party shall be required to sign a confidentiality agreement for the benefit of the inspected party. The results of such audit
shall be made available to Aerogen and Dance. If any audit discloses that the payments by Dance, a Commercialization Partner or a Sub-licensee to Aerogen are incorrect in Aerogen’s favor, then Dance shall pay any amount due to Aerogen within
ten (10) days after receipt of the necessary documentation of the amount owed. If any audit discloses that the payments by Dance to Aerogen are incorrect in Dance’s favor, then Aerogen shall have the right to credit the amount of the
overpayment against each subsequent quarterly payment due to Aerogen until the overpayment has been fully applied. If the overpayment is not fully applied prior to the final quarterly payment of Royalties due hereunder, Aerogen shall promptly refund
an amount equal to any such remaining overpayment. If Aerogen’s audit demonstrates an underpayment of more than five percent (5%) for the payment due to Aerogen during the audited period, Dance shall be liable for Aerogen’s reasonable
cost of the audit that discovered such underpayment and Dance shall pay interest on the unpaid Royalties at a rate equal to the European Central Bank main refinancing rate on the date such payment is due, plus an additional seven percent (7%),
calculated on the number of days such payment is delinquent. Otherwise, Aerogen shall bear the costs of such audits. Dance shall have the right to dispute any such audit results in accordance with Section 11 (Dispute Resolution). For the
avoidance of doubt it is agreed that Dance shall ensure that all agreements it enters into with Commercialization Partner(s) or Sublicensees those agreements will contain terms which secure for Aerogen those Audit Rights described in this
Section 4.6. 
 4.7 Withholding Taxes. Where required to do so by applicable Law or order of a governmental body, Dance
shall withhold taxes required to be paid to a taxing authority in connection with any payments to Aerogen hereunder, and, upon request of Aerogen, Dance shall furnish Aerogen with satisfactory evidence of such withholding and payment. Dance shall
cooperate with Aerogen in obtaining exemption from withholding taxes where available under applicable Law. 
 4.8 Late Payments. Any
undisputed Project Fees, Royalties or Annual Minimum Royalties due to Aerogen under this Agreement or any portion thereof which are not paid when due, shall bear interest equal to European Central Bank main refinancing rate on the date such payment
is due, plus an additional seven percent (7%), calculated on the number of days such payment is delinquent. If Project Fees are disputed and on resolution of the dispute it is found the Project Fees charged were correct or are adjusted by no more
than 5%, then and in that event the unpaid Project Fees shall bear interest equal to European Central Bank main refinancing rate on the date such payment is due, plus an additional seven percent (7%), calculated on the number of days such payment is
delinquent. This Section 4.8 shall not limit other remedies available to Aerogen under this Agreement. 

  
 19 

	5.	PATENT RIGHTS 

 5.1 Ownership of Intellectual Property. 

5.1.1 Subject to existing third party rights and Encumbrances disclosed by Aerogen to Dance as of the Effective Date (and after the
Effective Date as to Aerogen New Technology) as set forth in Schedule C, and further subject to Section 5.2.1(a) (Improvements) and Section 5.4.2 (Patent Prosecution and Maintenance), Aerogen shall own all rights, title, and
interest to, or maintain control of its licenses to, the Licensed Intellectual Property. 
 5.1.2 Subject to third party rights and
Encumbrances, and further subject to Sections 5.2.1(b) and (c) (Improvements), Dance shall own all rights title and interest to the Drug Product, Formulations, Packaging, Dance Data, Dance Know-How and Dance New Technology. 

5.2 Improvements. 

5.2.1 The Parties acknowledge that Dance and Aerogen intend to collaborate in the development of the Device, (including any
manufacturing processes), and that such collaboration may generate Improvements whether or not patentable. In order to permit and encourage a successful collaboration and protect the key business interests of both Parties, the Parties agree that:

 (a) Aerogen shall exclusively own all rights, title, and interest in and to the Device. Aerogen shall also exclusively own all rights,
title and interest to all Improvements that relate exclusively to the Device developed by or on behalf of Dance or by or on behalf of Aerogen and/or their respective Affiliates (alone or together or with others) pursuant to activities conducted
under this Agreement (the “Aerogen New Technology”). 
 (b) Other than the Aerogen New Technology, Dance shall exclusively
own all Improvements developed by or on behalf of Dance or its Affiliates or by or on behalf of Aerogen or its Affiliates (alone or together or with others) pursuant to activities conducted under this Agreement (the “Dance New
Technology”), including: 
 (i) all Improvements to the Drug Products (including all Improvements to any Formulations or
Packaging), or their development, manufacture, use, importation or sale; 
 (ii) all Improvements developed in connection with the services
provided by or on behalf of Aerogen or its Affiliates pursuant to the Device Development Plan and related to Drug Products; 
 (iii) all
Improvements and other intellectual property related to, or derived from, the Dance Data referred to in clause (c)(i) below. 
 (c) Dance
shall exclusively own: 
 (i) all pre-clinical, clinical, and non-clinical data generated in connection with the Device in combination with
the Drug Products, or the Drug Products alone, including, without limitation, the pharmacokinetic and pharmacodynamic outcomes resulting from delivery of Drug Products in the Device; 

  
 20 

 (ii) any and all INDs, NDAs, and other similar Regulatory Approvals filed or awarded in any
jurisdiction in the Territory related to the Drug Products and the Device and Drug Products used in combination; and 
 (iii) any
Confidential Information of Dance (in accordance with Section 5.6 (Confidentiality). The data, Regulatory Approvals and Confidential Information described in clauses (i), (ii) and (iii) are referred to herein as the
“Dance Data.” 
 (d) It is agreed that notwithstanding anything to the contrary in this Agreement, Novartis will own
all Improvements that relate to the Efficiency of the Licensed Intellectual Property. Aerogen will hold an exclusive License to those Improvements where the Improvements relate exclusively to the Device. Dance will hold an exclusive
License to those Improvements in the Field in the terms of this Agreement where the Improvements relate to the Drug Products and/or the Dance Data. 

(e) Aerogen shall promptly disclose to Dance any Dance New Technology and Dance Data generated by or on behalf of Aerogen and Dance shall
promptly disclose to Aerogen any Aerogen New Technology generated by or on behalf of Dance in connection with their performance under this Agreement, including under the Device Development Plan. Dance will solely own all such Dance New Technology
and Dance Data, and Aerogen will solely own all such Aerogen New Technology, and such owning Party will have the sole right to obtain and to hold in its own name patents, copyrights, or such other protection as it may deem appropriate to the subject
matter, and any extensions or renewals thereof (though such Party is under no obligation to file any patent application, secure or maintain any patent or register any copyright). Accordingly and without additional consideration, Aerogen and Dance,
as the case may be, and their Affiliates hereby assign all of their right, title, and interest to the owning Party, including all patents and copyrights and other intellectual property rights including enforcement rights and the right to prepare and
exploit derivative works, in such Dance New Technology, Dance Data and Aerogen New Technology, as the case may be, waive any moral rights thereto and shall cause their respective employees, agents and contractors to do the same. Each Party agrees to
give the other Party or any person designated by the other Party at the other Party’s expense, all assistance reasonably required to perfect the rights hereinabove defined, including the execution of documents and assistance or cooperation in
legal proceedings. For the avoidance of doubt, Aerogen and Dance acknowledge and agree that each Party shall have the right to protect, whether by way of a patent filing or other intellectual property filing, any work conducted by such Party and
kept separate from the work performed under or in connection with this Agreement. 
 5.3 Patent Prosecution and Maintenance. Aerogen,
at its own expense, shall prosecute and maintain Aerogen Patents listed in Schedule A in countries so identified on a patent by patent basis. In connection with Aerogen New Technology, Aerogen at its own expense shall file, prosecute and maintain
Aerogen Patents in the U.S., Europe and Japan covering the Device and its manufacture, use offer for sale, sale and importation. In the event that Dance requires that any Aerogen New Technology be protected in countries other than the U.S, Europe
and Japan, it may notify Aerogen of its requirements and Aerogen will file, prosecute and maintain those patents in those locations, and Dance will share 50% of the costs for such additional countries. 

5.3.1 Except to the extent otherwise agreed by the Parties in writing or as provided in this Agreement: (i) subject to the terms
and conditions of any license agreement under which Aerogen obtained rights to the Licensed Intellectual Property, Aerogen at its own expense shall have the primary right but not the obligation to control prosecution, maintenance, challenges against
validity and unenforceability or patentability (according to the provisions of this Section 5.3) with respect to the Device and the Licensed Intellectual Property, and Dance will assist Aerogen, at Aerogen’s request and expense
(subject to this Section 5.3), in any such activities; and (ii) Dance at its own expense shall have the primary right and obligation to control 

  
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prosecution, maintenance, challenges against validity and unenforceability or patentability (according to the provisions of Section 5.4 below) with respect to the Dance New
Technology, the Drug Products and the Device in combination with Drug Products, and Aerogen will assist Dance, at Dance’s request and expense (subject to this Section 5.3), in any such activities. 

5.3.2 Subject to the terms and conditions of any license agreement under which Aerogen obtained rights to the Licensed Intellectual
Property, Aerogen shall not surrender or otherwise abandon any of the Aerogen Patents in any country in the Territory without providing reasonable prior written notice to Dance of such intention to surrender or otherwise abandon (which notice shall,
in any event, be given no later than twenty (20) days prior to the next deadline for any action that would result in such surrender or abandonment that may be taken with respect to such Aerogen Patent with the relevant patent office) and
providing Dance an opportunity to assume responsibility for an Aerogen Patent. In the event Dance elects to assume responsibility for an Aerogen Patent, and at Dance’s expense, without additional consideration Aerogen shall assign and hereby
assigns to Dance all right, title and interest in such Aerogen Patent, and Aerogen shall promptly take all actions reasonably necessary or desirable to perfect such interest; provided that Aerogen will retain all rights and obligations with
respect to such Aerogen Patent before the date of such assignment. If Aerogen assigns an Aerogen Patent to Dance under the preceding sentence, and if the only Valid Claim covering the Device in a particular country is included in such Aerogen Patent
and is not included in any other Aerogen Patent, then Dance shall, on and after the date of such assignment, only pay to Aerogen Know How Royalties on Net Sales of the Device and Drug Products in such country, as provided for in Section 4.3.2.

 5.3.3 Aerogen shall keep Dance reasonably informed as to the status of any of the Aerogen Patents in the Territory, and, subject to
the terms and conditions of any license agreement under which Aerogen obtained rights to the Licensed Intellectual Property, shall consider in good faith the reasonable requests and suggestions of Dance with respect to the prosecution, maintenance
and defense of the Aerogen Patents in the Territory. 
 5.3.4 Subject to the terms and conditions of any license agreement under which
Aerogen obtained rights to the Licensed Intellectual Property, to the extent reasonably expected to adversely affect the Aerogen Patents or the Device in the Territory, Aerogen shall promptly provide Dance with copies of correspondence or materials
received from the PCT, the U.S. Patent & Trademark Office (“PTO”), or equivalent intellectual property regulatory authority in any other country within the Territory. 

5.3.5 In addition, subject to the terms and conditions of any license agreement under which Aerogen obtained rights to the Licensed
Intellectual Property, Dance shall have the right to approve any settlement that would render Dance unable to exercise its rights under this Agreement or would reasonably be expected to adversely affect the Aerogen Patents or the Device in the
Territory or would result in any liability or admission on behalf of Dance, such approval not to be unreasonably withheld, conditioned or delayed. 

5.3.6 If Dance reasonably believes that Aerogen may fail to make any required payments or take any action required for the preparation,
filing, prosecution, defense or maintenance of the Aerogen Patents in the Territory within a reasonable time, Dance shall provide Aerogen with written notice of such deficiency. If Aerogen, or its licensor, fails to take the required action within
the shorter of (i) forty-five (45) days of notice from Dance or (ii) five (5) business days before the deadline for taking such action, subject to the terms and conditions of any license agreement under which Aerogen obtained
rights to the Licensed Intellectual Property, Dance shall have the right to thereafter make any such required payments in connection with such Aerogen Patents and take any such required action and deduct and offset such payments and any related
costs and expenses from any future payments due under this Agreement to Aerogen. 

  
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 5.3.7 Each Party agrees to mark all Devices in accordance with the applicable statutes or
regulations in the country or countries of manufacture and sale thereof. For such purposes, each Party shall use Commercially Reasonable Efforts to provide the other Party with written notice of all of its patent numbers applicable to the Device.

 5.4 Enforcement. 

5.4.1 If either Party should become aware of any infringement or misappropriation or threatened infringement or misappropriation of the
other Party’s intellectual property rights contemplated herein by a third party that could reasonably be expected to adversely affect the Device and/or the Drug Products, as the case may be (“Product-Specific Infringement”), it
shall promptly notify the other Party in writing and provide any information available to that Party relating to such alleged Product-Specific Infringement. 

5.4.2 Aerogen shall have the initial right (but not the obligation) to bring and/or control any enforcement action with respect to an
asserted Product-Specific Infringement pertaining primarily to the Device. Dance shall have the initial right (but not the obligation) to bring and/or control any enforcement action directed to an asserted Product-Specific Infringement pertaining to
the Drug Product. The Party controlling the enforcement action shall keep the other Party reasonably informed of the progress thereof. 

5.4.3 In the event the Party with the first right to so initiate an enforcement action (the “Priority Party”) does not
initiate such enforcement action within (a) ninety (90) days after a request by the other Party (the “Requesting Party”) to initiate an enforcement action against an alleged Product-Specific Infringement or (b) five
(5) business days before the time limit, if any, set forth in the appropriate laws and regulations related to the filing of any such actions, whichever comes first, or the Priority Party notifies the Requesting Party at any time that it does
not desire to enforce or defend such rights with respect to such alleged infringement, then the Requesting Party shall have the right (but not the obligation) to enforce such alleged infringement; provided that any settlement of such
infringement shall be subject to the approval of both Parties if such settlement would not terminate all further use by the alleged infringer of such rights. Notwithstanding anything to the contrary contained herein, (i) Aerogen shall have the
right to approve any settlement that would adversely affect the Aerogen Patents or Aerogen’s rights under this Agreement or result in any liability or admission on behalf of Aerogen, such approval not to be unreasonably withheld, conditioned or
delayed; and (ii) Dance shall have the right to approve any settlement that would adversely affect the Drug Product or the use of the Drug Product with the Device or Dance’s rights under this Agreement or result in any liability or
admission on behalf of Dance, such approval not to be unreasonably withheld, conditioned or delayed. 
 5.4.4 Except as otherwise
agreed to by the Parties as part of a cost-sharing arrangement, all amounts recovered in an enforcement action for a Product-Specific Infringement, after reimbursing each Party for its costs and expenses incurred in such enforcement action, shall be
shared equitably between the Parties based on the damages established in such enforcement action. The balance, if any, shall be treated as Net Sales for purposes of this Agreement such that Aerogen shall receive a royalty based on the total amount
of such remaining recovery, and Dance shall retain the balance. 
 5.4.5 If the Exploitation of the Device results in a claim alleging
patent infringement against either Party (or its Affiliates or Sublicensees), such Party shall promptly notify the other Party hereto in writing. Dance shall have the initial right to defend and control the defense of any infringement claim
pertaining primarily to the Drug Product and Aerogen shall have the initial right to defend and control the defense of any infringement claim pertaining primarily to the Device or the Device in combination with the Drug Products and any Improvements
to the foregoing. Each Party (i) may use counsel of its own choice as applicable, and (ii) keep the other Party informed of all material developments in connection with any such 

  
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claim. Any losses, liabilities, costs, expenses, damages, awards and settlements paid or otherwise incurred by Dance in connection with the defense and/or settlement of such claim, including in
the form of any license fees, royalties or other payments made by Dance to any third party to acquire intellectual property rights or obtain a license or other rights, in each case that may be necessary to practice the Licensed Intellectual Property
or Exploit the Device, or the Drug Products in combination with the Device, to the extent not covered under Section 8.1 (Indemnification by Aerogen), (collectively, “Third Party Payments”), shall be subject to the
following reductions in Royalty payments: [*] of such Third Party Payments shall be fully creditable against Royalties otherwise due and payable by Dance to Aerogen hereunder, provided that in any one year, Royalties otherwise due and payable by
Dance to Aerogen hereunder may not be reduced by more than [*]. If the amount of any reduction of Royalties cannot be fully utilized or applied by Dance in a particular year as a result of the foregoing limitation, Dance may utilize or apply such
unutilized or unapplied amounts against any Royalties due and payable by Dance under this Agreement in subsequent years, until all unutilized or unapplied reductions of Royalties are fully utilized or applied. Such reductions will only be permitted
where the losses, liabilities, costs, expenses, damages, awards and settlements relate to the Device only and not to the drug products. Further, if Dance believes that it requires an additional license or other rights from a third party in order to
Exploit the Device or the Drug Products in combination with the Device, it shall first notify Aerogen of its concern. In the event that Aerogen believes that no further license or right is required the parties shall in good faith seek to reach
agreement in default of which the matter will be resolved in accordance with Section 11 (Dispute Resolution). 
 5.5 Licensed
Intellectual Property not owned by Aerogen. 
 5.5.1 In the case of Product Specific Infringement relating to intellectual
property rights held by Aerogen under the Novartis License it is acknowledged that Novartis Pharma AG has the first right but not the obligation to prepare, file, prosecute, maintain and defend oppositions and interferences against those patents.
Aerogen has the right to prepare, file, prosecute, maintain, or defend oppositions and interferences against those patents when there is (i) an alleged suspected threatened or actual infringement of a licenced patent by the manufacture use
import offer for sale or sale of a product marketed in the United States, United Kingdom, France, Italy, Spain, Germany or Japan and the product is approved for use in the Field; and (ii) the product has taken or is more likely than not to take
[*] in that market; in such cases Aerogen has secondary right to take action to enforce the patent. 
 5.5.2 Where a Product
Specific Infringement relates to Intellectual Property Rights held by Aerogen under the Novartis Licence Dance recognizes that its right to take enforcement action with regard to any such Product Specific Infringement set out in section 5.4 shall be
limited and be secondary to Aerogen’s rights pursuant to its Licence from Novartis Pharma AG. 
 5.6 Non-use and Non-disclosure
Obligations. Each of Aerogen and Dance shall use any Confidential Information received by it from the other Party solely in connection with performance of their respective obligations and exercise of their respective rights under this Agreement
and the Supply Agreements and shall not disclose such Confidential Information to any third party, without the prior written consent of the other Party. These obligations shall survive the expiration or termination of this Agreement and the Supply
Agreements for a period of ten (10) years. These obligations shall not apply to Confidential Information that: 
 5.6.1 is known
by the receiving Party, as evidenced by its written records, at the time of receipt and not through a prior disclosure by the disclosing Party; 

5.6.2 is at the time of disclosure or thereafter becomes published or otherwise part of the public domain through no breach of this
Agreement by the receiving Party; 

  
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 5.6.3 is subsequently disclosed to the receiving Party without restriction, as evidenced
by its written records, by a third party having the right to make such a disclosure; or 
 5.6.4 is developed by the receiving Party,
as evidenced by its written records, independently of information received by it from the disclosing Party hereunder. 
 5.7 Required
Disclosure. In order to provide the disclosing Party an opportunity to seek a protective order or the like with respect to certain Confidential Information of the disclosing Party, the receiving Party may disclose information to the extent that
it is required by Law or order of any governmental authority or agency, including the Securities and Exchange Commission, to be disclosed by a Party; provided that the receiving Party shall apply for confidential treatment of this Agreement
to the fullest extent permitted by law, shall provide the other Party a copy of the confidential treatment request far enough in advance of its filing, if reasonably practical, to give the other Party a meaningful opportunity to comment thereon, and
shall use reasonable efforts to incorporate in such confidential treatment request any reasonable comments of the other Party. 
 5.8
Permitted Disclosure. Notwithstanding Section 5.6 (Non-use and Non-disclosure Obligations), Confidential Information provided under this Agreement by a disclosing Party may be disclosed to
employees, agents, board members, consultants, or suppliers of the receiving Party, but only to the extent permitted or required to accomplish the purposes of this Agreement; provided that such employees, agents, board members, consultants or
suppliers shall also agree to confidentiality and non-use provisions at least as strict as those contained in this Agreement. The receiving Party shall be responsible for any breaches of this Agreement by its employees, agents, board members,
consultants, or suppliers. In addition, a Party may disclose Confidential Information provided under this Agreement by the other Party to any governmental authority in order to file for, prosecute or maintain any Licensed Intellectual Property (or
in the case of Dance, any patent applications and patents or other intellectual property covering Dance New Technology or in the case of Aerogen any patent applications and patents or other intellectual property covering Aerogen New Technology) or
any Regulatory Authority to obtain Regulatory Approvals to market the Device, Drug Product or a combination of the Device and Drug Product, but such disclosure may be made only to the extent necessary to pursue such prosecution or maintenance or to
obtain such approval, all to the extent permitted or required to accomplish the purposes of this Agreement. 
 5.9 Sensitive
Information. Dance may designate and otherwise mark certain of its Confidential Information as particularly sensitive (“Sensitive Information”). Sensitive Information will be disclosed only to employees of Aerogen designated by
Dance in writing and such employees shall not disclose any Sensitive Information to any other employee or agent of Aerogen, or to any board member, consultant, counsel, or supplier, or any third party without the express written permission of Dance.

 5.10 Return. Upon the termination of this Agreement, all Confidential Information of the disclosing Party in the receiving
Party’s possession will be returned to the disclosing Party (or destroyed by the receiving Party, with written confirmation of such destruction), and the receiving Party will make no further use thereof. Notwithstanding the foregoing, the
receiving Party may retain one copy of the Confidential Information of the disclosing Party solely for archival purposes to ensure compliance with the provisions of this Section 5 or with the requirements of Regulatory Authorities. 

5.11 Publicity. Except as required by Law or court order, all publicity, press releases and other announcements or disclosures relating
to the existence and terms of this Agreement or the transactions contemplated hereby shall be reviewed in advance by, and shall be subject to the written approval of, both Parties; provided that such publicity, press releases and other
announcements shall not disclose any Confidential Information of the other Party hereunder and shall give appropriate attribution to the other Party’s 

  
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role(s) in the project contemplated herein. Each Party shall provide the other Party an opportunity to review and comment on the language of such attribution prior to first use thereof in a press
release or other public disclosure. Either Party may disclose the existence of this Agreement and the terms and conditions hereof, without the prior written consent of the other Party, as may be required by applicable Law (including, without
limitation, disclosure requirements of the SEC, NYSE, or any other stock exchange or NASDAQ), in which case the Party seeking to disclose the information shall give the other Party reasonable advance notice and review of any such disclosure and
shall seek confidential treatment of such information to the extent possible under applicable Law. 
  

	6.	WARRRANTIES, REPRESENTATIONS AND CONVENANTS 

 6.1 Corporate Existence and Power.
As of the Effective Date, each Party represents and warrants to the other Party that (a) it is a corporation duly organized, validly existing and in good standing under the laws of the state or jurisdiction in which it is incorporated or
organized; and (b) it has full power and authority and the legal right to own or license and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement. 

6.2 Authority. As of the Effective Date, each Party represents and warrants to the other Party that (a) it has the power and
authority and the legal right to enter into this Agreement and perform its obligations hereunder; (b) it has taken all necessary action on its part required to authorize the execution and delivery of this Agreement and the performance of its
obligations hereunder; (c) this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid and binding obligation of such Party and is enforceable against it in accordance with its terms; (d) all
necessary consents, approvals and authorizations of all governmental authorities and other persons or entities required to be obtained by such Party in connection with entry into this Agreement have been obtained; and (e) the execution and
delivery of this Agreement and the performance of such Party’s obligations hereunder (i) do not conflict with or violate any requirement of applicable Law or any provisions of such Party’s charter documents in any material way, and
(ii) do not conflict with, violate or breach or constitute a default or require any consent under, any contractual obligation, agreement, license, or any written instrument with any third party or court or administrative order by which such
Party is bound. 
 6.3 Intellectual Property. 

6.3.1 Aerogen represents and warrants that, to its knowledge, Schedule A sets forth a true, correct and complete list of
all Aerogen Patents comprising the Licensed Intellectual Property that are being licensed to Dance and that it has the right to license the Aerogen patents to Dance pursuant to the terms of this Agreement, and that other than the Aerogen Patents
listed on Schedule A, as of the Effective Date, there are no other Patents (including any foreign counterparts) owned or controlled by Aerogen or its Affiliates that are necessary or useful in order for Dance or its Affiliates or Sublicensees to
Exploit the Device, Drug Product or Drug Device Combination or otherwise exercise their rights and licenses under this Agreement. 

6.3.2 As of the Effective Date Aerogen represents and warrants that all registrations with and applications to governmental or
regulatory bodies in respect of the Licensed Intellectual Property in the Territory required to be made by Aerogen, or made at its direction and under its control, are in full force and effect and Aerogen has taken all commercially reasonable
actions required to maintain their validity and effectiveness, and Aerogen covenants that it will continue to do so during the Term hereof. 

6.3.3 As of the Effective Date, Aerogen represents and warrants that it has taken commercially reasonable measures to protect the
secrecy, confidentiality and value of the Aerogen Information, including the Aerogen Know-How, and covenants that it will continue to do so during the Term hereof. To the knowledge of Aerogen, Aerogen is in compliance with any and all licenses and
other legal or contractual 

  
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obligations with respect to the Licensed Intellectual Property, and Aerogen is not nor has it received any notice that it is, in default (or with the giving of notice or lapse of time or both,
would be in default) under any license with respect to the Licensed Intellectual Property. Aerogen covenants that during the Term hereof, it will continue to comply with any and all licenses and other legal or contractual obligations with respect to
the Licensed Intellectual Property. 
 6.3.4 Other than as set forth in Schedule C attached hereto, as of the Effective
Date, Aerogen represents and warrants that it has never received (nor is it aware that any licensor, licensee, or Affiliate has ever received) any Claim alleging that Aerogen’s (or such third party’s or Affiliate’s) development or use
of the Licensed Intellectual Property interferes with, infringes, or misappropriates any intellectual property rights of any third party (including any Claim that Aerogen (or such third party or Affiliate) must license or refrain from using any
intellectual property rights of any third party in order to Exploit the Device or Accessory). To the knowledge of Aerogen, there are no facts which would form a reasonable basis for any Claim of interference, infringement or misappropriation of any
intellectual property rights of any third party related to the development or use of the Licensed Intellectual Property or the Device or any Accessories. Other than as set forth in Schedule C attached hereto, to the knowledge of
Aerogen: (a) no third party has interfered with, infringed upon, or misappropriated the Licensed Intellectual Property; and (b) there are no facts which would form a reasonable basis for any claim of such interference, infringement, or
misappropriation. As of the Effective Date, no Claim is pending or, to the knowledge of Aerogen, is threatened which challenges the legality, validity, enforceability, use, or ownership of any Licensed Intellectual Property, and to the knowledge of
Aerogen, there are no facts which would form a reasonable basis for any such Claim. 
 6.3.5 As of the Effective Date, Aerogen
represents and warrants that, to the best of its knowledge, the Exploitation of the Device or any Accessory in the Territory does not interfere with, infringe upon, or misappropriate, any intellectual property rights of any third party. 

6.4 Legal Proceedings. As of the Effective Date, and other than as set forth in Schedule C attached hereto, Aerogen
represents and warrants to Dance that to the best of its knowledge there is no pending Proceeding (a) that has been commenced by or against Aerogen or any of its Affiliates or that otherwise relates to or may affect the Licensed Intellectual
Property, or (b) that challenges, or may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement. To the knowledge of Aerogen, (i) no such Proceeding
has been threatened, and (ii) no event has occurred or circumstance exists that may give rise to or serve as a basis for the commencement of any such Proceeding. 

6.5 Non-Compete in Territory.  

6.5.1 Aerogen’s Obligations. During the Term, and for so long as the license granted hereunder is exclusive neither Aerogen nor any
of its Affiliates shall, directly or indirectly, engage in any activities or participate in any business (including selling, licensing, divesting, or transferring rights to any third party) or otherwise compete with Dance or its Affiliates or
Sublicensees anywhere in the Territory in the Field with respect to any Vibrating Mesh Inhaler. 
 Aerogen shall not, and shall cause its
Affiliates to not, either directly or indirectly (including with any third party), without limiting the foregoing, specifically license out a Vibrating Mesh Inhaler for use with insulin during the Non-Compete period. 

6.5.2 Dance’s Obligations. During the Term, and for so long as Dance’s License hereunder is exclusive, neither Dance nor any
of its Affiliates shall, directly or indirectly, engage in any activities or participate in any business (including selling, licensing, divesting, or transferring rights to any third party) or otherwise compete with Aerogen anywhere in the Territory
in the Field with respect to use of a Vibrating Mesh Inhaler. 

  
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 6.6 Additional Covenants by the Parties. 

6.6.1 By Dance 
 (a)
Stand-Alone Sales. Dance shall not, and shall cause its Affiliates and Sublicensees to not, develop, use, import, export, promote, offer to sell, or knowingly sell or otherwise commercialize the Device as a stand-alone product to be
used with any drug compound other than the Drug Products. 
 (b) Device Restrictions. Dance covenants and agrees that during the Term
it will use the Device solely for use with the Drug Products in the Field. 
 (c) Device Manufacturing. Dance covenants and agrees
that during the Term it will not make or have made the Device, except as otherwise permitted as to second source suppliers in Section 7 (Supply) of this Agreement and in the Supply Agreements. 

 

	7.	SUPPLY 

 The Parties shall enter into definitive clinical and commercial supply
agreements providing for the exclusive supply of Devices from Aerogen or its contract manufacturer to, at Dance’s election, Dance, its Affiliates, or its Commercialization Partners (the “Clinical Supply Agreement” and
“Commercial Supply Agreement” to be referred to herein collectively from time to time as the “Supply Agreements”), and shall use Commercially Reasonable Efforts to enter into such Supply Agreements as soon as reasonably
practicable and in any event within six (6) months after the Effective Date for the Clinical Supply Agreement, and no later than twelve (12) months prior to the first filing for Regulatory Approval of the Drug Product for the Commercial
Supply Agreement. The Parties shall negotiate with one another in good faith with respect to the Clinical Supply Agreement and the Commercial Supply Agreement, which shall incorporate the terms set forth below in Sections 7.1 and 7.3 for the
Clinical Supply Agreement and Sections 7.2 through 7.6 for the Commercial Supply Agreement, and other customary terms for a supply relationship of this nature. 

7.1 Clinical Development. Aerogen shall use Commercially Reasonable Efforts to manufacture and supply the Device to Dance, its
Affiliates, or its Commercialization Partners, at [*] if intended for use during clinical trials by Dance pursuant to Section 3.4.1 (Regulatory Approval of Device, Drug Product or Combination Product by Dance). Aerogen shall use
Commercially Reasonable Efforts to provide one hundred percent (100%) of Dance’s, its Affiliates’, or its Commercialization Partners’ requirements for such clinical trials. 

7.2 Commercial. Aerogen shall manufacture and supply the Device to, at Dance’s election, Dance, its Affiliates, or
Commercialization Partners, at a price equal to Aerogen’s cost plus a margin to be agreed by the Parties in good faith starting no later than (6) months prior to the date the first Device is anticipated to receive Regulatory Approval.
Aerogen shall agree to use Commercially Reasonable Efforts to commence scale-up activities to transition from clinical supply to commercial supply of Devices based on Dance’s forecasted requirements. Aerogen shall use Commercially Reasonable
Efforts to provide one hundred percent (100%) of Dance’s, its Affiliates’, or Commercialization Partners’ requirements of the Device for such commercial supply. After the Royalty Term, the Parties shall negotiate in good faith
with respect to the appropriate supply price for the Device. 

  
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 7.3 Forecasts. Under the Commercial Supply Agreement, Dance and its Commercialisation
Partner(s), Affiliates, and Sublicensees shall submit rolling non-binding quarterly forecasts of its anticipated requirements of Devices for the next [*] calendar quarters. 

7.4 Device Specifications. The Supply Agreements shall set forth any final product specifications for the Device as determined in
accordance with this Agreement and following the Development Program. The Supply Agreements may also set forth any additional manufacturing and process specifications and other characteristics and materials for the Device (“Additional
Specs”), as mutually agreed to by the Parties. Any changes in such Additional Specs that could: (i) affect the ability of Dance or its Affiliates or Commercialization Partners to obtain the 510(k) marketing authorization (or equivalent
foreign regulatory authorizations) for the Device; or (ii) have a material adverse effect on the development of the Device and/or manufacture thereof, including the quality, reliability, robustness or user interface of the Device or which would
otherwise have an adverse effect on the Drug Product when used with the Device, or (iii) affect the ability of Dance or any Affiliate or Commercialisation Partner of Dance to obtain or maintain Regulatory Approval of the Drug Product or the
Device for use in combination with the Drug Product anywhere in the Territory, shall require the prior written approval of Dance. 
 7.5
Secondary Source. 
 7.5.1 Redundancy. In order to avoid any material interruption of supply to Dance of the Device, Aerogen shall
ensure that it has sufficient redundancy in sourcing its off-the shelf and non-off-the-shelf components of the Device, and the Device itself. 

7.5.2 Direct Purchase by Dance. Notwithstanding the above, if in any given calendar year any of the Triggering Events (to be defined in
the Supply Agreements) occurs, Dance shall have the right to purchase at its expense directly such quantities of such Devices, or components, as it deems necessary from such additional sources of supply (or any other third party suppliers in
Dance’s sole discretion), with the terms and duration to be defined in the Supply Agreements. The Supply Agreements shall contain provision for limited and revocable technology transfer by Aerogen to Dance and/or any additional sources of
supply or other third party suppliers of the Device or components. 
 Any agreement that Dance enters into with any second or additional
source or other third party suppliers is subject to the alternate sources’ or other third party suppliers’ execution of customary confidentiality agreements to protect the Licensed Intellectual Property, if such source or third party is
not already otherwise obligated to Aerogen to protect such intellectual property. 
 7.5.3 Assembly, Packaging and Labeling. At any
time with at least [*] written notice to Aerogen, Dance may establish an alternative source for Device assembly, packaging, and labeling. Such supplier may be a second source or the primary source for the final assembled packaged and labeled Device,
and in either case, the components for the Device that are proprietary to Aerogen would be supplied by Aerogen. 
 7.6 Other Supply
Terms. Other customary supply terms in the Supply Agreements shall include but not necessarily be limited to, forecasting and ordering procedures, quality, acceptance and rejection, invoicing and payment, inspection and optimization, repair,
supply of replacement parts, product recalls, adulteration, misbranding, product warranties, notice and cure periods, trademark license and usage guidelines, representations and warranties (including with respect to the final design of the Device),
indemnities (including comprehensive product liability and infringement indemnities from Aerogen for the Device), remedies, force majeure, termination provisions and co-terminus term with this Agreement, all as mutually agreed to by the Parties in
the Supply Agreements. 

  
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	8.	INDEMNIFICATION 

 8.1 Indemnification by Aerogen. Aerogen shall indemnify, defend
and hold harmless Dance and its Affiliates and each of their respective employees, officers, directors, agents, from and against any and all third party Claims, liability, loss, damage, cost and expense (including reasonable attorneys’ fees)
resulting from or in connection with the breach by Aerogen of any representation, warranty or covenant contained in this Agreement, provided, however, that such indemnification right shall not apply to any Claims, liability, loss,
damage, cost and expense (a) to the extent directly attributable to the negligence, reckless misconduct, or intentional misconduct of Dance or its Affiliate, or (b) for which Dance is obligated to indemnify Aerogen under
Section 8.2(i) or (ii) (Indemnification by Dance). 
 8.2 Indemnification by Dance. Dance shall indemnify,
defend and hold harmless Aerogen and its Affiliates and each of their respective employees, officers, directors and agents from and against any and all third party Claims, liability, loss, damage, cost and expense (including reasonable
attorneys’ fees) to the extent resulting from or in connection with (i) the breach by Dance of any representation, warranty or covenant contained in this Agreement; (ii) the infringement or misappropriation of the patent rights, trade
secrets or other intellectual property rights of any third party by Dance or its Affiliates relating to the Aerogen New Technology and Dance New Technology when used in connection with the Drug Products; (iii) the Exploitation of the Device by
Dance, its Affiliates or Sublicensees; provided, however, that such indemnification right shall not apply to any Claims, liability, loss, damage, cost and expense (a) to the extent directly attributable to the negligence, reckless
misconduct, or intentional misconduct of Aerogen or its Affiliates or licensors or (b) for which Aerogen is obligated to indemnify Dance under Section 8.1. 

8.3 Indemnification Procedures. Promptly after receipt by a Party seeking indemnification under this Section 8 (an
“Indemnitee”) of notice of any pending or threatened claim against it (an “Action”), such Indemnitee shall give written notice to the Party from whom the Indemnitee is entitled to seek indemnification pursuant to this
Section 8 (the “Indemnifying Party”) of the commencement thereof; provided that the failure so to notify the Indemnifying Party shall not relieve it of any liability that it may have to any Indemnitee hereunder,
except to the extent the Indemnifying Party demonstrates that it is materially prejudiced thereby. Any Action that is subject to indemnification under this Section 8 shall be brought against an Indemnitee and it shall give written notice
to the Indemnifying Party of the commencement thereof, the Indemnifying Party shall assume the defense thereof with counsel reasonably satisfactory to such Indemnitee and, the Indemnifying Party shall not be liable to such Indemnitee under this
Section 8 for any fees of other counsel or any other expenses, in each case subsequently incurred by such Indemnitee in connection with the defense thereof. No compromise or settlement of any Action may be effected by the Indemnifying
Party without the Indemnitee’s written consent, which consent shall not be unreasonably withheld or delayed, unless (A) there is no finding or admission of any violation of Law or any violation of the rights of any person and no effect on
any other claims that may be made against the Indemnitee and (B) the sole relief provided is monetary damages that are paid in full by the Indemnifying Party. No compromise or settlement of any Action may be effected by an Indemnitee without
the Indemnifying Party’s prior written consent. 
 8.4 Insurance. Each of Aerogen and Dance shall have and maintain such type and
amounts of liability insurance covering its activities under this Agreement as is normal and customary in the medical device and pharmaceutical industries generally for parties similarly situated. Each Party shall, upon request of the other Party,
provide the requesting Party with a copy of the foregoing policies of insurance, along with any amendments and revisions thereto. 

  
 30 

	9.	TERM AND TERMINATION 

 9.1 Term. The term of this Agreement shall begin upon the
Effective Date and shall continue in full force and effect on a country by country basis, until the expiration of the Royalty Term in such country, or unless earlier terminated under this Section 9 (the “Term”). 

9.2 Termination of Agreement for Breach. Either Party may terminate this Agreement and the License for material breach of a material
provision by giving ninety (90) days’ written notice to the breaching Party (specifying in reasonable detail the basis for such termination) and such breaching Party has not cured such breach within such ninety (90)-day period or, if such
breach is not capable of being cured within such ninety (90)-day period, the breaching party is using Commercially Reasonable Efforts to cure such breach within such ninety (90)-day period in which case the party in breach will be granted a further
one hundred and twenty day period in which to remedy the breach (except in the case of failure to make an undisputed payment hereunder in which case the period of notice and opportunity to cure shall be thirty (30) days). 

9.3 Termination of Agreement for Challenge. Aerogen shall have the right to terminate this Agreement immediately upon written notice if
Dance or its Affiliates or Sublicensees challenges in a court of competent jurisdiction the validity scope or enforceability of or otherwise opposes any patent right included in the Licensed Intellectual Property. 

9.4 Termination of Agreement by Aerogen. Aerogen may terminate this Agreement and the License upon the occurrence of one or more of the
following: 
 9.4.1 immediately upon written notice to Dance in the event Dance initiates a voluntary proceeding under the U.S.
Bankruptcy Code; or 
 9.4.2 immediately upon written notice to Dance in the event Dance becomes the subject of an involuntary
proceeding under the U.S. Bankruptcy Code and such proceeding is not dismissed or stayed within ninety (90) days of its commencement. 

9.5 Effect of Termination. 

9.5.1 Termination shall not relieve either Party of any obligations (including payment obligations) which have accrued prior to the
effective date of such termination. 
 9.4.2 In the case of any breach of the terms of the License, subject to Section 10, a
decision to terminate or not to terminate does not reduce or eliminate any recourse otherwise available to either Party including at law or in equity. 

9.4.3 Upon any termination of this Agreement other than by Dance under Section 9.2 (Termination of Agreement for Breach),
all rights under the License shall automatically terminate and revert to Aerogen and in such circumstances Dance will promptly return to Aerogen all Aerogen Confidential Information. 

9.4.4 Upon termination by Dance under Section 9.2, at Dance’s option, the License shall survive, subject to compliance
by Dance with all applicable provisions of this Agreement, (including payment of royalties). 
 9.4.5 Subject to the foregoing, upon
termination of this Agreement, Dance and/or its Affiliates or Sublicensees shall have the right to sell off any Devices within its or their control for a period not to exceed six (6) months from the date of termination, subject to payment of
any applicable Royalty obligations. 

  
 31 

 9.4.6 Upon the termination of this Agreement for any reason any Sublicenses granted by
Dance hereunder shall survive; provided that each Sublicensee promptly agrees in writing to be bound by the applicable terms of this Agreement and agrees to pay directly to Aerogen the same amounts that would have been due to Aerogen from
Dance under this Agreement with respect to such Sublicense, had the Agreement not terminated. 
 9.5 Section 365(n) of the
Bankruptcy Code. All rights and licenses granted under or pursuant to any section of this Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code (beginning at 11 U.S.C. 101, as
amended) (the “Bankruptcy Code”), licenses of rights to “intellectual property” as defined under Section 101 of the Bankruptcy Code. The Parties shall retain and may fully exercise all of their respective rights and
elections under Section 365(n) of the Bankruptcy Code. 
 9.6 Survival. Except as expressly provided herein, Sections
1 (Definitions), 2.1 (to the extent provided by Section 9.5.4), 2.2 (Right to Sublicense) (to the extent provided by Section 10.5.6), 4.5 (Recordkeeping), 4.6 (Audit Rights), 4.7 (Withholding Taxes), 4.8 (Late Payments), 5.1
(Ownership of IP), 5.2 (Improvements), 5.6, 5.7, 5.8 & 5.9 (Confidential Information), 8 (Indemnification), 9 (Term and Termination), 10 (Limitation of Liability), 11 (Dispute Resolution), 12 (Miscellaneous) and any accrued rights as to
payments due shall survive any expiration or early termination of this Agreement. 
 10. LIMITATION OF LIABILITY. EXCEPT FOR PARTY’S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY UNDER ANY CIRCUMSTANCES OR ANY LEGAL OR EQUITABLE THEORY, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, FOR ANY SPECIAL, EXEMPLARY, PUNITIVE,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR DAMAGES FOR LOST PROFITS OR LOSS OF USE, ARISING OUT OF OR RELATED TO THE LICENSED INTELLECTUAL PROPERTY, DEVICES OR DRUG PRODUCTS, OR TO THIS AGREEMENT, OR A PARTY’S PERFORMANCE OR
NON-PERFORMANCE HEREUNDER, EVEN IF A PARTY KNOWS OR SHOULD HAVE KNOWN OR IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OR ANY LIMITED REMEDY. NOTWITHSTANDING THE
FOREGOING, THESE LIMITATIONS SHALL NOT APPLY TO ANY THIRD-PARTY CLAIM THAT IS THE SUBJECT OF SECTION 8, TO THE EXTENT SUCH THIRD PARTY HAS BEEN AWARDED SUCH DAMAGES. 
  

	11.	DISPUTE RESOLUTION 

 11.1 Informal Resolution. Subject to
Section 12.6 (Injunctive Relief), in the event of any controversy, dispute or claim arising out of, in connection with, or in relation to the interpretation, performance, or alleged breach of this Agreement (the
“Dispute”), prior to instituting any arbitration on account of such Dispute, the Parties shall attempt in good faith to settle such Dispute first by negotiation and consultation between themselves, including referral of such Dispute
to the Chief Executive Officer of Dance and the Chief Executive Officer of Aerogen. In the event said executives are unable to resolve such Dispute or agree upon a mechanism to resolve such Dispute within thirty (30) days of the first written
request for dispute resolution under this Section 11.1, then the Parties shall resolve all such Disputes in accordance with Sections 11.2 (Arbitration) and 11.3 (Arbitration Procedures). 

11.3 Arbitration Procedures. Such arbitration may be conducted under the commercial rules then in effect for the AAA except as
provided herein. All such proceedings shall be held in English and a transcribed record prepared in English. Each Party shall choose one (1) arbitrator within thirty (30) days of receipt of notice of the intent to arbitrate. Such
arbitrators shall thereafter choose a third arbitrator within thirty 

  
 32 

 
(30) days of their appointment. If no arbitrator is appointed within the times herein provided or any extension of time which is mutually agreed upon, the AAA shall make such appointment of the
first two (2) arbitrators within thirty (30) days of such failure who shall thereafter pick the third as set forth herein. Each Party in any arbitration proceeding commenced hereunder shall bear such Party’s own costs and expenses
(including expert witness and attorneys’ fees) of investigating, preparing and pursuing such arbitration claim. Nothing in this Agreement shall be deemed as preventing either Party from seeking injunctive relief (or any other provisional
remedy) from any court having jurisdiction over the Parties and the subject matter of the Dispute as necessary to protect either Party’s name, Confidential Information, proprietary Information, trade secrets, Know-How or any other intellectual
property or proprietary right. If the Dispute involves scientific or technical matters, any arbitrator chosen hereunder shall have educational training and/or experience sufficient to demonstrate a reasonable level of knowledge in the field. The
award rendered by the arbitrators shall be written, final and non-appealable, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. 

11.4 Governing Law. This Agreement shall be governed by the laws of the State of New York, USA, notwithstanding any conflicts of laws
provisions. 
  

	12.	MISCELLANEOUS 

 12.1 Unenforceability. Both Parties hereby expressly state that it
is the intention of neither Party to violate any Law. If any of the provisions of this Agreement are held to be void or unenforceable, then such void or unenforceable provisions shall be replaced by valid and enforceable provisions which will
achieve as far as possible the economic business intentions of the Parties. 
 12.2 No Waiver. The failure by either Party to take any
action or assert any right hereunder shall in no way be construed to be a waiver of such right, nor in any way be deemed to affect the validity of this Agreement or any part hereof, or the right of a Party to thereafter enforce each and every
provision of this Agreement. 
 12.3 Drafting. This Agreement shall not be construed more strictly against one Party than the other
because it may have been drafted by one of the Parties or its counsel, each Party having contributed through its counsel substantially and materially to the negotiation and drafting thereof. 

12.4 Assignment. This Agreement and the Parties’ rights and obligations hereunder shall not be assignable except with the prior
written consent of the other Party, not to be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, either Party shall have the right to assign this Agreement or its rights or obligations under this Agreement, without the
consent of the other party, to any of its Affiliates, or any entity that acquires all or substantially all of the business or assets of Company to which this Agreement relates (whether by asset purchase, stock purchase, merger, change of control, or
otherwise); provided that such Affiliate, successor in interest or acquirer assumes all of such Party’s obligations under this Agreement. 

12.5 Relationship of the Parties. In making and performing this Agreement, the Parties are acting, and intend to be treated, as
independent entities and nothing contained in this Agreement shall be construed or implied to create an agency, partnership, joint venture, or employer and employee relationship between or among any of the Parties. Except as otherwise provided
herein, no Party may make any representation, warranty or commitment, whether express or implied, on behalf of or incur any charges or expenses for or in the name of any other Party. No Party shall be liable for the act of any other Party unless
such act is expressly authorized in writing by such Party. 

  
 33 

 12.6 Injunctive Relief. Each of the Parties agrees that if certain material obligations
under this Agreement are not performed in accordance with their specific terms or are otherwise breached, (a) severe and irreparable damage would occur, (b) no adequate remedy at law would exist and (c) damages would be difficult to
determine. Each of the Parties agrees that, in such case, the injured Party or Parties shall be authorized and entitled to obtain from any court of competent jurisdiction injunctive relief, whether preliminary or permanent, as well as any other
relief permitted by applicable law, and the breaching Party shall waive any requirement that such Party or Parties post bond as a condition for obtaining any such relief. 

12.7 Notices. Every notice, election, demand, consent, request, approval, report, offer, acceptance, certificate, or other communication
required or permitted under this Agreement or by applicable Law shall be in writing and shall be deemed to have been delivered and received (a) when personally delivered, (b) on the seventh
(7th) business day after which sent by registered or certified mail, postage prepaid, return receipt requested, (c) on the date on which transmitted by facsimile or other electronic
means generating a receipt evidencing a successful transmission (provided that, on that same date, a copy of such notice is sent by registered or certified mail, postage prepaid, return receipt requested), or (d) on the third (3rd) business day after the business day on which deposited with a regulated public carrier (e.g., Federal Express) for overnight delivery (receipt verified), freight prepaid, addressed to the
Party for whom intended at the mailing address or facsimile number set forth below, or such other mailing address or facsimile number, notice of which is given in a manner permitted by this Section 12.7. 

 

			
	 For Aerogen:
	  	
		
	 Aerogen Limited
	  	
		
	 Attn:
	  	John Power
		  	Chief Executive and Managing Director
		  	Aerogen Limited
		  	IDA Business Park
		  	Dangan
		  	Galway
		  	Ireland
		
	 Direct:
	  	353 91 ######
	 Fax:
	  	353 91 584639
		
	 With a copy to:
	  	Francis Gannon
		  	Financial Controller
		  	Aerogen Limited
		  	IDA Business Park
		  	Dangan
		  	Galway
		  	Ireland
	 Direct:
	  	353 91 ######
	 Fax:
	  	353 91 584639

  
 34 

			
	 For Dance:
	  	
		
	 Dance Pharmaceuticals, Inc.
	  	
		
	 Attn:
	  	John Patton, PhD.
	 Direct:
	  	650-740-9625
	 Email:
	  	jpatton@dancepharma.com
		
	 With a copy to:
	  	

 12.8 Entire Agreement. This Agreement and the Schedules hereto and made a part hereof, contain the
entire understanding between the Parties relating to the subject matter hereof and supersedes any and all prior and contemporaneous agreements, understandings and arrangements, whether written or oral, between the Parties hereto and any term sheets
entered into or exchanged by the Parties. Notwithstanding the foregoing, the Parties’ ongoing respective rights and obligations under the Confidentiality Agreement between the Parties dated March 19, 2009 shall continue in full force and
effect. No amendments, changes, modifications, waivers or alterations of the terms and conditions of this Agreement shall be binding upon either Party hereto unless in writing and signed by both Parties. 

12.9 Headings. The captions to the Sections hereof are not a part of this Agreement, but are merely guides or labels to assist in
locating and reading the several Sections hereof. 
 12.10 Counterparts. This Agreement may be executed in counterparts and each such
counterpart shall be deemed an original hereof. 
 12.11 Further Actions. The parties agree to execute, acknowledge and deliver such
further instruments and to take all such other incidental acts as may be reasonably necessary or appropriate to carry out the purpose and intent of this Agreement. 

12.12 Compliance with Law. Each Party will carry out its respective obligations under this Agreement and other activities pursuant to
this Agreement in compliance Law. Export of controlled commodities, technical data, or information about such commodities or data may be prohibited by Law. Accordingly, each Party also agrees to take all steps reasonably necessary to comply with
applicable export and import laws and regulations as they apply to use and distribution of the subject matter of this Agreement. 
 12.13
Force Majeure. Neither Party shall be liable or responsible to the other Party for loss or damages, or for any default or delay attributable to any event beyond its reasonable control and without its fault or negligence, including but not
limited to acts of God, acts of government (including injunctions), fire, flood, earthquake, volcano, strike, lockout, labor dispute, breakdown of plant, shortage of critical equipment, loss or unavailability of manufacturing facilities or material,
casualty or accident, civil commotion, acts of public enemies, acts or terrorism or threat of terrorist acts, blockage or embargo and the like (a “force majeure event”); provided, however, that in each such case the Party affected shall
give prompt notice of any such event to the other Party and use commercially reasonable efforts to avoid such event and to remedy it promptly. The Party giving such notice shall thereupon be excused from such of its obligations as it is prevented or
delayed in performing for so long as it is prevented or delayed as a result of such force majeure event, and for sixty (60) days thereafter, and the Party receiving notice shall be similarly excused from its respective obligations which it is
thereby unable to perform. 
 [REMAINDER OF PAGE LEFT BLANK
INTENTIONALLY] 

  
 35 

 IN WITNESS
WHEREOF, the Parties hereto have executed this LICENSE, DEVELOPMENT, COLLABORATION, AND COMMERCIALIZATION AGREEMENT as of the
Effective Date. 
  

			
	AEROGEN LIMITED
		
	By:	 	/s/ John S. Power
		 	Name: John S. Power
		 	Title: CEO
	
	DANCE PHARMACEUTICALS, INC.
		
	By:	 	/s/ John S. Patton
		 	Name: John S. Patton
		 	Title: CEO

 [SIGNATURE PAGE TO LICENSE
AGREEMENT] 

 SCHEDULE A 

DEVICE PATENTS AND PATENT APPLICATIONS 

Countries Protected in addition to the USA 
  

							
	 File No.
	 	 Patent No
	 	 Title
	 	 Country and Patent No/Issue Date

	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]

  
 37 

							
	 File No.
	 	 Patent No
	 	 Title
	 	 Country and Patent No/Issue Date

	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]
	 [*]
	 	[*]	 	[*]	 	[*]

  

	Legend:	L after the patent number denotes that the IP is licensed to Aerogen. 

	    	A after the patent number denotes that the IP is assigned to Aerogen. 

  
 38 

 SCHEDULE B 

DEVICE DEVELOPMENT PLAN 
 This Device
Development Plan was prepared by reference to the Product Requirements furnished by Dance, Document reference number D001, Revision 002, dated 28th June 2010. 

Background 
 Dance Pharma are proposing to target the
treatment of Diabetes through the inhalation of liquid insulin. 
 This is the Device Development Plan prepared and agreed by the Parties pursuant to
Section 3.3.1 of the License, Development, Collaboration and Commercialization Agreement dated [ ] November 2010 (hereinafter “the Agreement”). 

It is noted that Aerogen Ltd is accredited to ISO 13485:2003 and 21CFR820, and this proposed design and development program will be completed under its full
suite of Design Control Procedures, which are routinely audited by NSAI and FDA, and using forms and templates, which have been successfully submitted to achieve both CE mark and 510K accreditation on Nebulizer products currently on sale. These
systems and procedures are expected to meet the requirements of Dance Pharma. 
  

	[*]	[Note: Approximately four (4) pages of this Schedule B for which confidential treatment has been requested have been omitted and filed separately with the Securities and Exchange Commission.]

 SCHEDULE C 

DISCLOSURES 
 Patent
Litigation Against Aerogen 
 Aerogen was sued by PARI GmbH, Moosstrasse 3, D-82319 Starnberg/Germany for patent infringement in the
District Court in Munich, Germany on May 20, 2003 regarding its sale of the Aerogen Pro Nebulizer. The complaint alleged infringement in view of Pari’s EP 0615470 patent (“the ‘470 patent”) that was nationalized in Germany.

 Aerogen sought to nullify the ‘470 patent in a nullity action filed on December 22, 2004. A decision on the merits of the
nullity action was rendered on 22 July 2004 and invalidated all claims of the ‘470 patent. 
 On October 13, 2004 Pari lodged
an appeal with Federal Supreme Court. The appeal was heard on December 2, 2008. The Court issued its decision on the same day, declaring that claims 1-2 and 4-9 were invalidated, but that amended claim 3 was allowed. This claim is set forth
below. 
  

	 	3.	Fluid droplet production apparatus comprising: 

 a membrane (5); 

an actuator (7), for vibrating the membrane, the actuator comprising a composite thin-walled structure and comprising an
electrostrictive (for example piezoelectric) member (70), wherein the member comprises a first layer (71) and the actuator comprises at least one other layer (72) mechanically bonded to the member, 

wherein the ratio a of the mechanical stiffness of the member to the other layer
(Yh2-Ay’h’2) lies in the range of 0.3,a£1,
and 
 wherein the actuator (7) is arranged to operate in a bending mode and to vibrate the membrane substantially in
the direction of actuator bending; 
 means (3) for supplying fluid directly to a surface of the membrane, as fluid is
sprayed therefrom on vibration of the membrane; and 
 electrodes (275, 282) disposed such that an applied field causes the
member (70) to attempt to change length in its planar dimension, whereby mechanical reaction with the other layer (72) causes the actuator to bend. 

 The infringement part of the case is currently stayed, but may be reinitiated by Pari.
[*]. 
 Potential Infringement by Others 

Aerogen is aware that the following companies may infringe the Licensed Intellectual Property. 

[*] 
 Aerogen Confidential and Proprietary 

  
 41 

 SCHEDULE D 

DANCE WARRANT 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 DANCE PHARMACEUTICALS, INC. 

WARRANT TO PURCHASE COMMON STOCK 
  

			
	No.             	  	November 25, 2010

 THIS CERTIFIES THAT, for value received,
AEROGEN LIMITED, a private limited company incorporated in Ireland with its principal office located at Galway Business Park, Dangan, Ireland, or its assigns (the “Holder”),
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time during the Exercise Period (as defined below), to subscribe for and purchase from DANCE
PHARMACEUTICALS, INC., a Delaware corporation, with its principal office at 2 Mint Plaza, Suite 804, San Francisco, CA 94103 (the “Company”), up to
[            ]shares (the “Warrant Shares”) of the Company’s common stock, $0.0001 par value per share (“Common Stock”), subject to
adjustment as set forth herein. The purchase price of one share of Common Stock (the “Exercise Price”) under this Warrant shall be $0.01, subject to adjustment hereunder. 

1. EXERCISE OF WARRANT. 

General. The rights represented by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery
of the following to the Company at its address set forth above (or at such other address as it may designate by notice in writing to the Holder): 

(a) An executed Notice of Exercise in the form attached hereto as Exhibit A-1; 

(b) Subject to Section 1.2 hereof, payment of the Exercise Price either in cash or by certified check or wire transfer to
an account designated by the Company; and 
 (c) This Warrant. 

Upon the exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Shares so purchased, registered in
the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a 

 
reasonable time after the rights represented by this Warrant shall have been so exercised. In the event that this Warrant is being exercised for less than all of the then-current number of
Warrant Shares purchasable hereunder, the Company shall, concurrently with the issuance by the Company of the number of Warrant Shares for which this Warrant is then being exercised, issue a new Warrant exercisable for the remaining number of
Warrant Shares purchasable hereunder. 
 The person in whose name any certificate or certificates for Warrant Shares are to be issued upon
exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or
certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next
succeeding date on which the stock transfer books are open. 
 Net Exercise. Notwithstanding any provisions herein to the contrary,
if the fair market value of one Warrant Share is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to receive shares equal to the value (as
determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise in the form attached hereto as Exhibit A-2 in
which event the Company shall issue to the Holder a number of Warrant Shares computed using the following formula: 
  

					
	X =	 	Y (A-B)	  	
		 	A	  	

  

					
	Where	 	X =	    	the number of Warrant Shares to be issued to the Holder
			
		 	Y =	    	the number of Warrant Shares purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation)
			
		 	A =	    	the fair market value of one Warrant Share (at the date of such calculation)
			
		 	B =	    	the Exercise Price (as adjusted to the date of such calculation)

 For purposes of the above calculation, the fair market value of one Warrant Share shall be determined by the
Company’s Board of Directors in good faith; provided, however, that in the event that this Warrant is exercised pursuant to Section 1.1 (A) in connection with the Company’s initial public
offering of its Common Stock (“IPO”) or (B) in connection with a Change of Control (as defined below), the fair market value per share shall be the price per share of Warrant Shares as set forth in the definitive
purchase or merger agreement relating to that Change of Control. For the purpose of this Warrant, “Change of Control” means the closing of the Company’s sale or transfer of all or substantially all of its assets, or the closing of the
acquisition of the Company by another entity by means of merger, consolidation or other transaction or series of related transactions, resulting in the exchange of the outstanding shares of the Company’s capital stock such that the stockholders
of the Company prior to such transaction own, directly or indirectly, less the fifty percent (50%) of the voting power of the surviving entity. 

  
 -2- 

 1.3 Stockholder Agreements. Exercise of the Warrant may be conditioned upon the
Holder’s execution of such stockholder agreement(s) as the Company may require (collectively, the “Stockholder Agreements”). Such agreement(s) may include terms and conditions that provide the Company and/or other
stockholders with (i) a right of first refusal with respect to the Warrant Shares, (ii) “drag-along” rights in favor of the stockholders owning a majority of shares of capital stock of the Company, (iii) “market
standoff” or “lock-up” conditions, and i(iv) such other terms and conditions as the Company may require; provided that, upon exercise of this Warrant and the said such agreement(s) shall be amended to will include
“tag-along” rights in favor of the Holder provide the Holder with customary co-sale rights to participate on a pro rate basis on certain sales of shares of Common Stock proposed to be made by certain key holders of Common Stock (the
“Key Holders”). For the avoidance of doubt, under no circumstances shall the Holder have any co-sale or any other similar rights on any proposed sales of shares of the Company’s Preferred Stock, whether proposed to be
made by any Key Holders or any other holders of shares of Preferred Stock of the Company. 
 2. COVENANTS
OF THE COMPANY. 
 2.1 Covenants as to Warrant Shares. The Company covenants and
agrees that all Warrant Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with
respect to the issuance thereof. The Company further covenants and agrees that it will at all times prior to the Termination Date (as defined below) have authorized and reserved, free from preemptive rights, a sufficient number of Warrant Shares to
provide for the exercise of the rights represented by this Warrant. If at any time prior to the Termination Date the number of authorized but unissued shares of Common Stock shall not be sufficient to permit exercise of this Warrant, the Company
will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 

Notices of Certain Transactions. In case: 

the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the
exercise/conversion of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to
receive any other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or 

of any Change of Control or capital reorganization of the Company, any reclassification of the capital stock of the Company, any
consolidation or merger of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of
the assets of the Company, or 

  
 -3- 

 of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, or 

an IPO, 
 then, and in each such case, the
Company will mail or cause to be mailed to the Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and
character of such dividend, distribution or right, or (ii) the effective date on which such Change of Control, reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption conversion or IPO
is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon such Change of Control, reorganization, reclassification, consolidation, merger,
transfer, dissolution, liquidation, winding-up, redemption, conversion or IPO) are to be determined. Such notice shall be mailed at least twenty (20) days prior to the record date or effective date for the event specified in such notice. 

Termination. 
 The right
to exercise this Warrant shall commence on the date of issuance (the “Commencement Date”) and, subject to Section 3(b) below, this Warrant and the right to purchase securities upon exercise hereof shall terminate
on November 15, 2015 (five years from the Commencement Date) (the “Expiration Date” and the period commencing on the Commencement Date and ending on the Expiration Date, the “Exercise Period”).

 In the event of, at any time during the Exercise Period, the Company consummates an IPO or a Change of Control, this Warrant shall be
deemed expired upon the date such IPO is closed or the occurrence of such Change of Control, provided the Company provides the Holder with prior notice of such IPO or Change of Control in accordance with Section 2.2 above. 

3. ADJUSTMENT OF EXERCISE PRICE AND NUMBER
OF WARRANT SHARES.  
 If outstanding shares of the Company’s Common Stock shall be
subdivided into a greater number of shares or a dividend in Common Stock shall be paid in respect of Common Stock, the Exercise Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with
the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding shares of Common Stock shall be combined into a smaller number of shares, the Exercise Price in effect immediately
prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment is required to be made in the Exercise Price, the number of Warrant Shares purchasable upon the exercise of
this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment. 

  
 -4- 

 In case there occurs any reclassification or change of the outstanding securities of the Company
or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in
each such case the Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, or reorganization shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the
exercise hereof prior to such consummation, the stock or other securities or property to which such Holder would have been entitled upon such consummation if such Holder had exercised this Warrant immediately prior thereto, all subject to further
adjustment pursuant to the provisions of this Section 4. 
 4. FRACTIONAL
SHARES. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated
for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional
share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current fair market value of a Warrant Share by such fraction. 

TRANSFER OF WARRANT AND WARRANT SHARES. 

Each Holder of this Warrant acknowledges that this Warrant and the Warrant Shares have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Shares issued upon its exercise in the absence of (i) an
effective registration statement under the Securities Act as to this Warrant or such Warrant Shares and registration or qualification of this Warrant or such Warrant Shares under any applicable U.S. federal or state securities law then in effect, or
(ii) an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Shares issued upon the exercise of this Warrant shall bear a legend
substantially to the foregoing effect. 
 Subject to the provisions of Section 6(a) hereof, this Warrant and all rights
hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office of the Company. 

The Company will maintain a register containing the names and addresses of the Holders of this Warrant. Until any transfer of this Warrant is
made in the warrant register, the Company may treat the Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be
required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Holder may change such Holder’s address as shown on the warrant register by written notice to the Company
requesting such change. 

  
 -5- 

 NO IMPAIRMENT. The Company will not, by amendment of its
certificate of incorporation or through reorganization, consolidation, merger, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will (subject to
Section 13 below) at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder of this Warrant against
impairment. 
 5. NO STOCKHOLDER RIGHTS. This Warrant in and of itself
shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. 
 6.
LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or
otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant
shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. 

7. NOTICES. All notices and other communications given or made pursuant to this Agreement shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed,
then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth above, or to such e-mail address, facsimile number or address as subsequently modified by
written notice given in accordance with this Section 10. If notice is given to the Company, a copy shall also be sent to Lowenstein Sandler, PC, 65 Livingston Avenue, Roseland, New Jersey 07068, Attention: Michael J. Lerner, Esq. 

8. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all
of the terms and conditions contained herein. 
 9. GOVERNING LAW;
JURISDICTION; VENUE. This Warrant, and all matters arising directly and indirectly herefrom (the “Covered Matters”), shall be governed in all respects by the laws of the State of Delaware as
such laws are applied to agreements between parties in Delaware. Each of the parties hereto irrevocably submits to the personal jurisdiction of the courts of the State of California and the United States District Court for the Northern District of
California for the purpose of any suit, action, proceeding or judgment relating to or arising out of the Covered Matters. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the
world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in
such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court
has been brought in an inconvenient forum. 

  
 -6- 

 AMENDMENT AND WAIVER. Any term of this
Warrant may be amended or waived with the written consent of the Company and the Holder. 
 [SIGNATURE PAGE
FOLLOWS] 

  
 -7- 

 IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its duly authorized officer as of November 15, 2010. 
  

			
	DANCE PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	John Patton
	Title:	 	President & CEO

 EXHIBIT A-1 

PURCHASE FORM 
  

					
	To: DANCE PHARMACEUTICALS, INC.	  	Dated:                     , 20        

 The undersigned, pursuant to the provisions set forth in the attached Warrant No.
            hereby irrevocably elects to purchase             Warrant Shares covered by such Warrant and herewith makes payment
of $            , representing the full purchase price for such shares at the price per share provided for in such Warrant. 

The undersigned acknowledges that he, she or it has reviewed the representations and warranties contained in Annex 1 hereto and by his, her or
its signature below hereby makes such representations and warranties to the Company. The undersigned further acknowledges that he, she or it, as a condition to the purchase of
            Warrant Shares, he, she or it, shall execute a counterpart signature page to each applicable Stockholder Agreement and be bound by the terms set forth therein. 

 

			
	Signature:	 	 

  

			
	Name (print):	 	 

  

			
	Title (if applicable)	 	 

  

			
	Company (if applicable):	 	 

 Annex 1 

Holder hereby represents and warrants to the Company as follows (with all capitalized terms used in this Annex 1 and not otherwise defined
herein having the respective meanings ascribed thereto in the Warrant): 
 Holder Bears Economic Risk. Holder has substantial
experience in financial and business matters and in evaluating and investing in private placement transactions of securities in companies similar to the Company so that Holder is capable of evaluating the merits and risks of its investment in the
Company and has the capacity to protect Holder’s own interests. Holder must bear the economic risk of this investment indefinitely unless the Warrant Shares are registered pursuant to the Securities Act, or an exemption from registration is
available. Holder understands that the Company has no present intention of registering the Warrant Shares. Holder also understands that there is no assurance that any exemption from registration under the Securities Act will be available and that,
even if available, such exemption may not allow Holder to transfer all or any portion of the Warrant Shares in the amounts or at the times Holder might propose. 

Acquisition for Own Account. Holder is acquiring the Warrant Shares for Holder’s own account for investment only, and not with a
view towards their distribution. 
 Accredited Investor. Holder represents that he, she or it is an “accredited investor”
within the meaning of Regulation D promulgated under the Securities Act. 
 Rule 144. Holder acknowledges and agrees that the
Warrant Shares are “restricted securities” as defined in Rule 144 promulgated under the Securities Act as in effect from time to time and must be held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available. Holder has been advised or is aware of the provisions of Rule 144, which permits limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions,
including, among other things: the availability of certain current public information about the Company, the resale occurring following the required holding period under Rule 144 and the number of shares being sold during any three-month period not
exceeding specified limitations. 
 Residence. If Holder is an individual, then Holder resides in the state or province identified
in the address of Holder set forth in the Warrant; if Holder is a partnership, corporation, limited liability company or other entity, then the office or offices of Holder in which its investment decision was made is located at the address or
addresses of Holder set forth in the Warrant. 
 Discussions with Management and Other Information. Holder has had an opportunity to
discuss the Company’s business, management, and financial affairs with the Company’s management and to review the Company’s facilities. Holder acknowledges that it has received all information it has requested from the Company and it
considers necessary or appropriate for deciding whether to acquire the Warrant Shares. 

  
 -ii- 

 EXHIBIT A-2 

NET ISSUE NOTICE OF EXERCISE 
  

					
	To: DANCE PHARMACEUTICALS, INC.	  	Dated:                     , 20        

 1. The undersigned hereby elects to purchase
            Warrant Shares or such other stock issuable upon exercise of the Warrant to which this form is attached (the “Warrant”), of DANCE PHARMACEUTICALS, INC. pursuant to the
terms of the Warrant, and hereby elects under Section 1.2 of the Warrant to surrender the right to purchase             Warrant Shares pursuant to the Warrant for a net issue
exercise with respect to             Warrant Shares. Capitalized terms used in this Exhibit A-2 without definition shall have the meaning ascribed to such term in the Warrant. 

The undersigned acknowledges that he, she or it has reviewed the representations and warranties contained in Annex 1 hereto and by his, her or
its signature below hereby makes such representations and warranties to the Company. The undersigned further acknowledges that he, she or it, as a condition to the purchase of
            Warrant Shares, he, she or it, shall execute a counterpart signature page to each applicable Stockholder Agreement and be bound by the terms set forth therein. 

2. Please issue a certificate or certificates representing said shares of Warrant Stock in the name of the undersigned or in such other name
as is specified below: 
  

			
	Signature:	 	 

  

			
	Name (print):	 	 

  

			
	Title (if applicable)	 	 

  

			
	Company (if applicable):	 	 

 Annex 1 

Holder hereby represents and warrants to the Company as follows (with all capitalized terms used in this Annex 1 and not otherwise defined
herein having the respective meanings ascribed thereto in the Warrant): 
 Holder Bears Economic Risk. Holder has substantial
experience in financial and business matters and in evaluating and investing in private placement transactions of securities in companies similar to the Company so that Holder is capable of evaluating the merits and risks of its investment in the
Company and has the capacity to protect Holder’s own interests. Holder must bear the economic risk of this investment indefinitely unless the Warrant Shares are registered pursuant to the Securities Act, or an exemption from registration is
available. Holder understands that the Company has no present intention of registering the Warrant Shares. Holder also understands that there is no assurance that any exemption from registration under the Securities Act will be available and that,
even if available, such exemption may not allow Holder to transfer all or any portion of the Warrant Shares in the amounts or at the times Holder might propose. 

Acquisition for Own Account. Holder is acquiring the Warrant Shares for Holder’s own account for investment only, and not with a
view towards their distribution. 
 Accredited Investor. Holder represents that he, she or it is an “accredited investor”
within the meaning of Regulation D promulgated under the Securities Act. 
 Rule 144. Holder acknowledges and agrees that the
Warrant Shares are “restricted securities” as defined in Rule 144 promulgated under the Securities Act as in effect from time to time and must be held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available. Holder has been advised or is aware of the provisions of Rule 144, which permits limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions,
including, among other things: the availability of certain current public information about the Company, the resale occurring following the required holding period under Rule 144 and the number of shares being sold during any three-month period not
exceeding specified limitations. 
 Residence. If Holder is an individual, then Holder resides in the state or province identified
in the address of Holder set forth in the Warrant; if Holder is a partnership, corporation, limited liability company or other entity, then the office or offices of Holder in which its investment decision was made is located at the address or
addresses of Holder set forth in the Warrant. 
 Discussions with Management and Other Information. Holder has had an opportunity to
discuss the Company’s business, management, and financial affairs with the Company’s management and to review the Company’s facilities. Holder acknowledges that it has received all information it has requested from the Company and it
considers necessary or appropriate for deciding whether to acquire the Warrant Shares. 

  
 -ii- 

 EXHIBIT B 

ASSIGNMENT FORM 

FOR VALUE RECEIVED,
                    hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the number of
Warrant Shares covered thereby set forth below, unto: 
  

					
	 Name of Assignee
	  	Address/Facsimile Number	  	No. of Shares

  

					
			
	Dated:                     , 20        	  	Signature:	  	 
			
		  		  	 
			
		  	Witness:EX-10.14

 Exhibit 10.14 

[*Confidential Treatment has been requested as to certain portions of this document. Each such portion, which has been omitted herein and replaced with an
asterisk [*], has been filed separately with the Securities and Exchange Commission.] 
 ADDENDUM 1 

to the License, Development, Collaboration and Commercialization Agreement 

COMMERCIAL SUPPLY AGREEMENT FOR DEVICE PROPRIETARY COMPONENTS 

This Addendum 1 (the “Addendum”, which expression includes any Appendices hereto) is to the LICENSE, DEVELOPMENT, COLLABORATION AND
COMMERCIALIZATION AGREEMENT (the “License Agreement”) by and between Aerogen Limited, a private limited company incorporated in Ireland having its principal place of business at Galway Business Park, Dangan, Galway, Ireland
(“Aerogen”) and Dance Biopharm, Inc., a Delaware, USA corporation having its principal place of business at 2 Mint Plaza, Suite 804, San Francisco, CA 94103, USA (“Dance”) (individually, a “Party”
and jointly, “the Parties”) with an Effective Date of the 15th day of November, 2010. The effective date of this Addendum is
4th October, 2013 (the “Addendum Effective Date.”) 
 RECITALS 

WHEREAS, the Parties are jointly engaged in the development of proprietary technology for aerosol delivery of insulin, as embodied in the Device; 

WHEREAS, Dance desires to purchase from Aerogen a varying volume of the proprietary components of such Device and Aerogen desires to manufacture, sell and
deliver such Device Proprietary Components to Dance; 
 WHEREAS, the Parties have entered into the License Agreement, referenced above, which contains
certain terms and conditions related to the development and commercial exploitation of the Device by the Parties hereto; and 
 WHEREAS, the Parties hereto
wish to set forth in this Addendum certain terms and conditions under which the Device Proprietary Components may be manufactured, tested, and released by Aerogen, by which Dance will purchase the Device Proprietary Components from Aerogen and by
which Aerogen will sell and deliver such Device Proprietary Components to Dance; 
 WHEREAS, Dance desires to transfer the Device Proprietary Components to
a third party commercial manufacturer for production and assembly of the finished Device. 
 NOW, THEREFORE, in consideration of the mutual representations,
warranties, covenants and agreements contained herein, and intending to be legally bound, the Parties agree as follows: 
 ARTICLE 1: DEFINITIONS

 For purposes of this Addendum, capitalised terms not defined (a) where they first appear hereunder, or (b) in Section 1 of the License
Agreement have the following meanings. Where a capitalized term is defined both in this Addendum and also in the Licence Agreement, the definition provided in this Addendum shall prevail. 

1.1 “Basic Materials” means materials needed for the manufacture of the Device Proprietary Components and which have not yet been handled by
Aerogen and do not yet meet the Specifications of the Device Proprietary Components, and are therefore not yet ready for delivery to Dance. 

 1.2 “Confidential Information” means all Documents and other information, provided by or on
behalf of a Party or any of its Affiliates directly or indirectly, before or after the Addendum Effective Date, in whatever form, including orally, relating to this Addendum, provided that any information will not be Confidential Information to the
extent that the information: 
  

	 	(a)	is or becomes generally available to the public without violation of this Addendum or any other obligation of confidentiality; 

  

	 	(b)	is known by the recipient prior to disclosure by the provider; 

  

	 	(c)	is lawfully obtained by the recipient from a third party without any breach of confidentiality or violation of law; or 

  

	 	(d)	is independently developed by the recipient without use or reference to the Confidential Information of the provider. 

1.3 “Dance” means Dance Biopharm Inc. and any of its Affiliates and Commercialization Partners that participate in this Addendum by issuing a
Purchase Order. 
 1.4 “Device” means the finished device ready for patient use include Device Proprietary Components. 

1.5 “Device Proprietary Components” means parts of the Device which are proprietary to Aerogen, specifically the
OnQTM aerosol generator (“OnQ”), and [*] as specified in Appendix 1. 
 1.6 “Documents” means documents, designs,
drawings, procedures, requirement sheets, (software in source and object code), tools and all other materials in whatever form, exchanged between the Parties, including the documents listed in the Appendices hereto. 

1.7 “Obsolete Materials” means Device Proprietary Components, Semi-Manufactures or Basic Materials that are held in Stock by
Aerogen and which for technical, commercial or other reasons can no longer be accepted and used or have been obsoleted by Aerogen or a sub-supplier. 

1.8 “Price” means the price specified in Appendix 2. 

1.9 “Purchase Order” means any written or electronic purchase order issued by Dance to Aerogen for a quantity of Device
Proprietary Components, each of which will be governed by and subject to the terms of this Addendum. 
 1.10 “Quality
Agreement” means the Quality Agreement between Dance and Aerogen entered into within ninety (90) days after the Effective Date. 

1.11 “Semi-Manufactures” means materials that are required for the manufacture of the Device Proprietary Components which have been
partly treated or processed by Aerogen but do not yet meet Specifications of the Device Proprietary Components and are therefore not yet ready for delivery to Dance. 

1.12 “Service Part” means a spare, repair or replacement part for a Device Proprietary Component, including any part listed in
Appendix 1. 
 1.13 “Specifications” means the specifications, descriptions, design criteria, drawings, samples, production models and other
requirements set forth in Appendix 1 to define the Device Proprietary Components, and any variations thereto as may be mutually agreed by the Parties in writing from time to time. 

1.14 “Stocks” means the physical stocks held by Aerogen at any particular time relating to the manufacture and supply of Device
Proprietary Components and Service Parts under this Addendum. 

  
 2 

 ARTICLE 2: SUPPLY AND PURCHASE OF DEVICE PROPRIETARY COMPONENTS 

 

	2.1	Term and Exclusivity 

  

	2.1.1	This Addendum will commence on the Addendum Effective Date and will remain in force thereafter for as long as the License granted by Aerogen to Dance pursuant to Section 9 of the License Agreement remains in force,
unless terminated earlier as provided in Article 10 hereunder (the “Exclusive Supply Term”). During this Exclusive Supply Term, Aerogen will not design, manufacture, sell, or lease, deliver or otherwise make available directly or
indirectly Device Proprietary Components to any third party for any purpose falling within the Field of the License granted in the Licence Agreement without Dance’s prior written approval. 

Moreover, during the Exclusive Supply Term Aerogen shall not licence, supply, lease, sell or otherwise make available directly or indirectly
any product that integrates the Licensed Intellectual Property for use in the Field. For the avoidance of doubt both Parties note Aerogen’s intention to provide the Device Proprietary Components to third parties for application outside of the
Field and hereby consent so to do. 
  

	2.1.2	After the Exclusive Supply Term, the Parties may agree to a further period of exclusive supply (the “Renewed Exclusive Supply Term”) based on minimum purchase targets (the “Purchase
Targets”) that may be agreed between the Parties from time to time in writing. During each Renewed Exclusive Supply Term, Aerogen will not design, manufacture, sell, or lease, deliver or otherwise make available directly or indirectly
Device Proprietary Components to any third party for any purpose falling within the Field of the License unless Dance has provided notice to Aerogen that Dance releases Aerogen of its exclusivity obligations. In the event Dance fails to meet
Purchase Targets during a Renewed Exclusive Supply Term, it is agreed that Aerogen shall be free to design, manufacture, deliver, lease, sell or otherwise make available directly or indirectly the Device Proprietary Components or any other product
that integrates the Licensed Intellectual Property for use in the Field. 

  

	2.1.3	Nothing in this Article 2.1 regarding Exclusivity is intended to limit Dance’s right to purchase the Device Proprietary Components, subject to the terms of this Addendum, but Dance may lose its exclusivity rights
within the Field as per Article 2.1.2. 

 2.2 Rights to Sell. Pursuant to the Licence granted in Section 2 of the License
Agreement, Dance has an exclusive right to sell the Device Proprietary Components in the Territory and in combination with, or specifically for the purpose of delivery of, Drug Product. Notwithstanding the foregoing and Dance’s intention to
comply with the foregoing, Aerogen recognizes that Dance cannot control, and shall not be responsible for, Dance’s customers utilizing the Device Proprietary Components for the delivery of other medications. Dance shall not, however, sell
Device Proprietary Components to customers that Dance knows or has reason to know intend to use the Device Proprietary Components with medications other than Drug Product. Dance understands that third parties have, or may have in the future, rights
to distribute Device Proprietary Components (or devices substantially similar to Device Proprietary Component) in combination with, or specifically for the purpose of delivery of, medications other than Drug Product (subject always to the
proscription against unauthorised use of Dance’s trademarks as set out in Article 9.10 herein). 
  

	2.3	Prior to Initiation of Manufacture and Supply. 

  

	2.3.1	All costs required for tooling up the necessary production and test facilities to establish manufacture of the Device Proprietary Components are chargeable by Aerogen to Dance in accordance with Article 4.1 and 4.2
hereunder. 

  

	2.3.2	Aerogen and Dance will work together to optimize the design of Device Proprietary Components for high-scale manufacture and make available to Dance as soon as reasonably practicable and at Dance’s cost such
production models as Dance may require. Such production models of Device Proprietary Components will be the property of Dance. 

  

	2.3.3	Aerogen will carry out testing necessary to ensure that the Device Proprietary Components as supplied are in accordance with Specifications as agreed. Dance will execute or instigate whatever testing it may deem
necessary in order to ascertain that the Device Proprietary Components are appropriate for Dance’s intended application in the Field. This and any other required testing will be at cost of Dance. 

  
 3 

	2.3.4	Upon successful completion of Dance’s “First Article Inspection Process,” Dance shall provide Aerogen a written notification of release (“Notification Of Release”) for delivery to
authorize the start of deliveries under any placed Purchase Order, subject to the additional requirements of Article 2.4 below. Dance will also provide Aerogen with written detail of the test processes and acceptance criteria used to assess
conformity of Device Proprietary Components received by Dance to the Specifications (the “Acceptance Criteria”). 

  

	2.3.5	Aerogen will include in Section A of Appendix 3 a vendor list for all components manufactured by subcontractors and thereafter during the Exclusive Supply Term and any Renewed Exclusive Supply Term will promptly notify
Dance of any changes to such vendor list. 

  

	2.4	Purchase and Supply. Dance may order, purchase and take delivery of Device Proprietary Components from Aerogen, and Aerogen will manufacture, sell and deliver to Dance or Dance’s third party contract
manufacturer the volumes and versions of Device Proprietary Components ordered by Dance under the terms of the License Agreement and this Addendum thereto (including any Appendices). In the event of any conflict between any provision or definition
of this Addendum or its Appendices and any provision or definition of the Licensing Agreement, the provisions or definitions of this Addendum shall prevail. 

  

	2.4.1	Sale and Purchase of Device Proprietary Components. During the Exclusive Supply Term of this Addendum, and any Renewed Exclusive Supply Term thereto, Aerogen commits to supply to Dance, in accordance with the
terms and conditions hereof, such quantities of the Device Proprietary Components as Dance may choose to order under the terms hereof. Dance shall provide Aerogen with a non-binding forecast of quantities of Device Proprietary Components that Dance
expects to purchase, according to the terms set out in Article 2.4.2. Notwithstanding the foregoing, Dance shall have no obligation to order, or purchase, and Aerogen shall, subject to Aerogen’s obligation to fill Purchase Orders that it has
accepted pursuant to Article 2.4.3, have no obligation to manufacture or supply any minimum number of Device Proprietary Components. 

  

	2.4.2	Rolling Forecast. 

 When Dance has determined that it has developed the Drug Device
Combination goods into which it will incorporate the Device Proprietary Components and has obtained all approvals, consents, licenses and permits, made all filings and given all notice to governmental authorities which are necessary or desirable for
the manufacture, packaging, transportation, distribution and sale of such goods in a jurisdiction within the Territory, Dance shall: 
  

	 	(i)	notify Aerogen of such determination (“Notice Of Intent to Market”); and 

  

	 	(ii)	deliver to Aerogen a good faith estimate of its requirements for each remaining month of the calendar year in which such Notice Of Intent to Market is given. 

 

	 	(iii)	Prior to the date of such Notice Of Intent to Market, Dance may issue Purchase Orders from time to time for Device Proprietary Components which Dance requires for incorporation into manufacturing samples of its Drug
Device Combination goods for human clinical tests and validation batches for marketing applications and launch supplies, and the Parties will cooperate in good faith to achieve delivery against these Purchase Orders in the shortest commercially
reasonable timeframe. 

 After the date of Notice Of Intent to Market, in order to streamline planning and ordering, Dance will
provide to Aerogen on a quarterly basis a written non-binding rolling forecast (“Rolling Forecast”) of its estimated requirements of Device Proprietary Components for delivery in each of the next four (4) calendar quarters.
Aerogen shall translate the Rolling Forecast into a schedule of requirements concerning both parts to be manufactured and parts to be purchased. Dance and Aerogen will work together to ensure that there is sufficient capacity to produce the
quantities of Device Proprietary Components specified in the Rolling Forecast. 

  
 4 

	2.4.3	Purchase Orders. Dance shall purchase Device Proprietary Components by delivering one or more Purchase Orders to Aerogen for the Device Proprietary Components that Dance wishes to purchase. 

 

	 	(i)	Each Purchase Order shall specify the date on which it is issued, the types and quantities of Device Proprietary Components being purchased, the date on which such Device Proprietary Components are to be delivered (the
“Scheduled Delivery Date”, which date shall be no earlier than [*] days from the date of the Purchase Order) and the purchase Price for the Device Proprietary Components. 

 

	 	(ii)	Aerogen shall deliver to Dance all Device Proprietary Components which Dance orders, provided that the quantity of Device Proprietary Components so ordered does not, when added to the quantities of Device Proprietary
Components previously ordered for delivery in the same calendar quarter, exceed [*] of the forecast quantities specified in the Rolling Forecast for the same calendar quarter. If the quantity of Device Proprietary Components ordered in
Purchase Orders for delivery during a calendar quarter exceeds [*] of the forecast quantities specified in the Rolling Forecast for the same calendar quarter, Aerogen will use its good faith efforts to attempt to supply any quantities ordered
in excess of such forecast quantities. 

  

	 	(iii)	No Purchase Order shall bind Aerogen until Aerogen sends written confirmation, which shall be within two (2) working days after receipt of the Purchase Order from Dance, of its acceptance of such Purchase Order to
Dance. In the event that Aerogen does not provide Dance with notice of acceptance of the Purchase Order within two (2) working days, the Purchase Order shall be deemed accepted. Aerogen shall be bound by any Purchase Order that is deemed
accepted or that Aerogen accepts by written confirmation. 

  

	 	(iv)	Purchase Orders may not be cancelled or modified without Aerogen’s prior written consent, other than as permitted under Article 2.5.2 below. 

 

	 	(v)	The terms and conditions of this Addendum shall be deemed incorporated into and made a part of each Purchase Order issued hereunder. No standard terms or conditions, whether appearing on or as part of Dance’s
Purchase Order, Aerogen’s order acknowledgement or otherwise, shall have any application to this Addendum, any Purchase Order, or any transactions occurring pursuant thereto and any such terms and conditions are hereby expressly rejected.

  

	 	(vi)	Dance may order Device Proprietary Components by emailed PDF or other written document, on an emergency basis (“Emergency Order”) subject to the availability of such Device Proprietary Components in
Aerogen’s inventory. Aerogen will use its best efforts to ship the Device Proprietary Components under the Emergency Order to Dance’s stipulated delivery location at the earliest opportunity after the receipt of such Emergency Order by
Aerogen. Subject to Dance’s written approval, Dance will pay any reasonable additional expenses related to such Emergency Orders. 

  

	2.5	Flexibility. 

  

	2.5.1	Aerogen shall continuously maintain as Stock such quantities of Device Proprietary Components and Basic Materials necessary to satisfy Dance’s anticipated requirement for Device Proprietary Components as forecast
in the Rolling Forecast and in order to be able to comply in a timely manner with Purchase Orders that exceed the Rolling Forecast by up to [*]. 

  
 5 

	2.5.2	Ordering; Lead Times. Based on the Scheduled Delivery Date for each shipment of Device Proprietary Components designated in a Purchase Order, changes or cancellations will be permitted as follows:

  

	 	(i)	0 to 30 days before Scheduled Delivery Date – no changes (the order for that Scheduled Delivery Date is considered “Frozen”); 

 

	 	(ii)	31 to 45 days before Scheduled Delivery Date – increases or decreases up to [*] (thus [*] of the order for that Scheduled Delivery Date is considered Frozen); 

 

	 	(iii)	46 to 60 days before Scheduled Delivery Date – increases or decreases up to [*] (thus [*] of the order for that Scheduled Delivery Date is considered Frozen); and 

 

	 	(iv)	61 or more days before Scheduled Delivery Date – no limit on increases or decreases (thus the order for that Scheduled Delivery Date is fully cancellable and none of it is considered Frozen). 

The Frozen portion of any Purchase Order may not be cancelled. 
  

	2.5.3	Long Lead Items; Economic Order Quantities. Dance recognizes that Aerogen may need to order long lead items in preparation for Dance requirements of Device Proprietary Components quantities forecast beyond the
frozen quantities under Article 2.5.2. Similarly, Dance also recognizes the need for purchase of Economic Order Quantities (EOQ’s) of certain components. In each case where Supplier obtains Dance’s prior written consent for the order of
designated quantities of specified long lead or EOQ items, the following shall apply: 

  

	 	(a)	If such parts become obsolete due to any Specification change requested by Dance, or if Dance ceases to order the Device Proprietary Components, then if Dance does not purchase Device Proprietary Components utilizing
those long-lead items then Dance will purchase such items from Aerogen or reimburse Aerogen for such items. 

  

	 	(b)	At the annual pricing review, the parties will review inventories of long lead and EOQ items. If there is more than a 12 month inventory of any item, Aerogen may charge Dance a carrying cost of [*] per month for
any inventory in excess of a 12 month supply (based on the average purchased quantities of Device Proprietary Components for the preceding 6 months, so long as the inventory exceeds a 12 month supply. 

2.6 Delivery Times. Standard delivery time for Device Proprietary Components, in quantities not to exceed the amounts specified under Article 2.4.3
(ii) herein, is sixty (60) days after the date of Purchase Order confirmation. On-time delivery for the Device Proprietary Components is defined as being received at Dance’s specified shipment receiving location within seven
(7) days before or on the Scheduled Delivery Date specified in a Purchase Order. Deliveries requested in a time frame earlier than seven (7) days prior to the Scheduled Delivery Date indicated in the related Purchase Order will be
considered on-time unless the actual delivery date is later than the Scheduled Delivery Date originally indicated in the related Purchase Order. Late deliveries which are the fault of Dance’s carrier shall not be taken into account in
determining Aerogen’s on-time delivery performance. Dance’s recourse to Aerogen in the event of Aerogen’s failure to achieve or maintain on-time delivery performance is set out in Articles 2.8, 2.10.4 and 10.3 hereunder and
Section 3 of Appendix 4 hereto. 
 2.7 Packaging and Shipping. Device Proprietary Components shall be shipped on an Ex-Works basis from the
location of final Device Proprietary Component assembly indicated in Part C of Appendix 3. Dance will be responsible for all costs of shipment, insurance, customs, duties and similar charges. Dance shall obtain all necessary import permits and
required documentation. Aerogen will ship best way unless other specific instructions are communicated by Dance upon placement of a Purchase Order. Dance shall have the option of choosing the common carrier(s) that it wishes to have deliver Device
Proprietary Components under this Addendum, and if Dance wishes to designate the common carrier(s), Dance shall maintain a direct-billed account with such common carrier(s) and inform Aerogen in a timely manner as to the identify of such common
carrier(s). In the event that Dance does not inform Aerogen in a timely manner as to which common carrier to use, Aerogen may choose the common carrier(s) to use for Device Proprietary Component shipment. In the event that Aerogen chooses the common
carrier, Aerogen shall prepay the shipping costs and add those shipping costs to the invoice. Aerogen reserves the right to make shipments in instalments, as it deems 

  
 6 

 
advisable or necessary, and all such instalments shipped separately will be separately invoiced and paid. Any partial shipments of less than fifty percent (50%) of the release Purchase Order
quantity must be agreed to in writing by Dance before partial shipments are made. All invoices, cartons, packing lists and correspondence must specify the applicable Purchase Order number. All shipping containers for the Device Proprietary
Components and all packaging within said shipping containers must conform to the specifications and labelling instructions detailed in the then current version of Dance’s desired packaging specifications (the “Packaging
Specifications”) as set out in Section C of Appendix 1 and varied by Dance from time to time in writing. Dance may amend the Packaging Specifications on the terms and subject to the conditions set forth in Article 6 hereunder for modifying
Device Specifications. 
  

	2.8	Acceptance of Shipment. 

  

	2.8.1	Unless otherwise agreed by the parties, if a shipment of Device Proprietary Components, or any portion thereof: 

  

	 	(a)	is not delivered within [*] days after the Scheduled Delivery Date specified in the Purchase Order and in accordance with the delivery terms included herein, or such shipment does not include [*] of the
quantity of Device Proprietary Components specified in the Purchase Order (subject to the limits of Aerogen’s obligations to exceed forecast quantities pursuant to Article 2.4.3(ii)); or 

 

	 	(b)	includes, at a unit frequency of greater than [*], Device Proprietary Components which fail to meet the Acceptance Criteria, 

then, Dance: 
  

	 	(c)	may, within fourteen (14) days of receipt of each shipment of Product, elect to reject such shipment; and 

  

	 	(d)	shall, if it elects to reject any shipment, (1) notify Aerogen immediately of such rejection and (2) afford Aerogen a reasonable opportunity (i) to inspect such shipment and (ii) to make arrangements
for the shipment’s return if it is found to be in breach of the rejection criteria set out in Article 2.8.1(a) or 2.8.1(b), and (3) cancel the rejection and accept the shipment if Aerogen’s inspection can demonstrate that the shipment
was not in breach of the rejection criteria set out in Article 2.8.1(a) or 2.8.1(b). 

  

	2.8.2	If Dance does not notify Aerogen of Dance’s rejection of a shipment within fourteen (14) business days of its receipt, then such shipment shall be deemed to have been accepted by Dance. 

 

	2.8.3	If Dance rejects any shipment, Dance shall hold such rejected shipment for sixty (60) days (or such longer time as may be mutually agreed) after which, unless during that sixty (60) day period Aerogen gives
Dance directions to return or otherwise dispose of such rejected shipment, Dance may, at is election, return or dispose of such rejected shipment. Aerogen shall credit Dance for the cost to return any such rejected shipment. 

 

	2.9	Stocks 

  

	2.9.1	Overview of Stocks. Dance may request from Aerogen at any time an overview of Stocks throughout the entire supply chain, which overview shall be provided in a format of Aerogen’s choosing. 

 

	2.9.2	Hold Stocks. Aerogen shall hold Stocks of Basic Materials, Semi-Manufactures and Device Proprietary Components in such amounts as may be necessary to deliver according to Frozen Purchase Orders and the agreed
upon flexibility as specified in Article 2.5 herein. 

  

	2.9.3	Stock Disposition on Termination. In the event that this Addendum is terminated for reasons other than under the provisions of Article 10.2 or 10.3 hereunder, Dance shall purchase such Stock of Device Proprietary
Components not yet ordered and shall reimburse Aerogen at Aerogen’s documented cost plus [*] for such Stock of Basic Materials and Semi-Manufactures that Aerogen does not agree at its own discretion to reuse for other purposes.

  
 7 

	2.9.4	Notification of Obsolete Materials Quantities in Case of Changes and Production Stop. In the event that Dance instructs Aerogen that the Specifications of the Device Proprietary Components or a Service Part are
being changed under Article 6 herein or that it wishes to halt production of the Device Proprietary Components or Service Part entirely, Aerogen shall notify Dance within ten (10) working days, or as otherwise mutually agreed but within a
maximum of thirty (30) days, of the quantity of Basic Materials, Semi-Manufactures and finished units of the Device Proprietary Components or Service Part rendered obsolete by such changes or production stock that it has in Stock and on order,
which will thereby be designated “Obsolete Materials”. Failure by Aerogen to notify Dance within the prescribed number of days shall be regarded as meaning that there are no Obsolete Materials. 

 

	2.9.5	Stock Disposition of Obsolescence. Dance shall purchase any Device Proprietary Components designated as Obsolete Materials not yet ordered and shall reimburse Aerogen at Aerogen’s documented cost [*]
for all Basic Materials and Semi-Manufactures designated Obsolete Materials that Aerogen does not agree at its own discretion to reuse for other purposes. 

  

	2.9.6	Preventing Stocks of Obsolete Materials. In the event that Dance instructs Aerogen that the Specifications of a Device Proprietary Component or Service Part are being changed under Article 6 herein or that it
wishes to halt production of the Device Proprietary Component or Service Part entirely, Aerogen shall minimize the Stocks referred to in Article 2.9.2 with the intention of preventing the creation of Obsolete Materials. Aerogen hereby undertakes to
take commercially reasonable measure to immediately halt outstanding production orders and Purchase Orders. 

  

	2.9.7	Liability. Dance is not liable to Aerogen for Stocks of Obsolete Materials that are created due to Aerogen’s failure to comply with the provisions of Article 2.9.6. Dance is not obligated to honour claims
submitted to it more than thirty (30) days after Dance has informed Aerogen in writing of changes which may lead to the creation of Obsolete Materials. 

  

	2.10.8	Scrapping of Obsolete Materials. Aerogen is responsible for ensuring that Obsolete Materials are scrapped in accordance with the applicable law. Aerogen shall indemnify Dance against all claims by third parties
that may have suffered damage as a result of the scrapping of the Obsolete Materials. 

  

	2.10	Delays 

  

	2.10.1	Aerogen shall not be liable for any failure or delay in delivery due in whole or in part to any unforeseeable event beyond the control of Aerogen and not caused by Aerogen’s own fault, including (but not limited
to) the following: flood; earthquake; storm; lightning; fire; explosion; declared or undeclared war; riot; blockade; insurrection; epidemic; landslide; washout; civil disturbance; strike or labour disturbance; embargo; delay in transportation;
sabotage; and any other unforeseeable circumstance which would in the reasonable opinion of Aerogen endanger persons or property (any of which is a “Force Majeure Event”). Under any such circumstances Aerogen shall have such
additional time within which to deliver Device Proprietary Components as may be reasonably necessary, subject to Article 2.10.4 below. 

  

	2.10.2	Aerogen shall use reasonable care to minimize delays and damage resulting from a Force Majeure Event. 

  

	2.10.3	Aerogen shall notify Dance: 

  

	 	(i)	promptly upon the occurrence of a Force Majeure Event, setting forth in reasonable detail the effect of such event upon Aerogen’s performance hereunder; and 

 

	 	(ii)	from time to time, upon request from Dance, of the continued effects upon Aerogen’s performance hereunder and the actions taken by Aerogen to mitigate the effects of such event upon Aerogen’s performance.

  
 8 

	2.10.4	If during the Exclusive Supply Term and any Renewed Exclusive Supply Term Aerogen is unable to deliver Device Proprietary Components to Dance for more than [*] days as a result of a Force Majeure Event, Dance
may, upon notice to Aerogen, suspend purchases of Device Proprietary Components from Aerogen and declare an event of Default under Section 2.1 of Appendix 4 hereto. The term of this Addendum (including the Exclusive Supply Term and any Renewed
Exclusive Supply Term) shall not be extended as a result of any suspension of Dance’s purchases pursuant to this Article 2.10. 

 2.11
Measurements, Reports and Problem Notification. Aerogen shall monitor its logistical performance and measure and report its findings on a regular basis to Dance. Aerogen shall immediately warn Dance if problems arise which could negatively
affect the logistical performance. Any verbal communication on this point shall always be followed up by a written report, which includes an action plan setting out how the problems that occurred will be avoided in the future. 

 

	2.12	General. 

  

	2.12.1	The Parties will meet from time to time (but no less than once per year) as requested by Dance to discuss efficiency increases, product and technology roadmaps, price/performance ratio of the Device Proprietary
Components, cost and quality issues, Aerogen’s performance hereunder, Dance’s performance hereunder, market conditions, and all other issues which the Parties may deem appropriate. 

 

	2.12.2	Dance may appoint one or more third party contract manufacturers to handle production of non-proprietary components, assembly, packaging, logistics, administration, integration or other activities relating to the
Device, in which case Dance will keep Aerogen fully informed of the implementation thereof (see Article 3 below). 

  

	2.12.3	All Intellectual Property matters of relevance to this Addendum and the Device Proprietary Components supply arrangements between the Parties will be governed by the provisions set out in the License Agreement.

 ARTICLE 3: ALTERNATIVE SOURCE FOR DEVICE ASSEMBLY, PACKAGING AND LABELING 

3.1 Dance intends to establish an alternative source for Device assembly, packaging, and labelling (the “Alternative Source”). Such
Alternative Source shall be the primary source for the final assembled packaged and labelled Device. Dance will, in conformance with the provisions of Article 6 herein, provide Aerogen with a Revised Specification detailing the components (including
whether finished Device Proprietary Components, Semi-Manufactures, components or Service Parts) that it continues to require Aerogen to supply under the terms of this Addendum. In any event, the components for the Device that are proprietary to
Aerogen (Device Proprietary Components) will still be supplied by Aerogen to Dance and/or to the Alternative Source at Dance’s expense and according to the pricing, ordering and payment provisions of this Addendum. Prior to the supply of Device
Proprietary Components by Aerogen to the Alternative Source, Dance will prevail upon the Alternative Source to enter into customary confidentiality agreements as necessary and sufficient to protect in law the Licensed Intellectual Property, if such
Alternative Source is not already otherwise obligated to Aerogen to protect such Licensed Intellectual Property. Aerogen will cooperate with Dance in good faith to ensure the establishment of such Alternative Source and ongoing supply of Device
Proprietary Components conforming to the Revised Specifications and in accordance with the terms of this Article 8, as necessary to meet Aerogen’s obligations under this Addendum. 

3.2 Dance intends to [*] high-scale automated manufacturing. Dance and Aerogen shall form a joint manufacturing committee (JMC) to facilitate
information exchange during this process. 

  
 9 

 ARTICLE 4: TOOLING AND FIXTURES 

4.1 Part Tooling For Clinical Trials and Initial Market Introduction. All machinery and tools, including jigs, dies, fixtures, plastic injection mold
bodies, mold cores and mold inserts, patterns, special gauges, special test equipment and other items, drawings, raw materials and any other equipment or materials necessary and required to establish manufacturing of the Device in accordance with
the Specification and in quantities adequate to support Dance’s clinical development programme, registration and initial introduction to market of Device and Drug Product (collectively, “Part Tooling”) will be sourced and furnished by
Aerogen for and at the expense of Dance and charged to Dance at [*]. Part Tooling will be described in detail in Part B of Appendix 3 to this Addendum, which description may be partial and incomplete as at the Effective Date and which may be
amended and updated from time to time in writing by mutual agreement of the Parties. All Part Tooling will remain the sole property of Aerogen and will be housed within Aerogen’s contracted manufacturing facility. Aerogen will be responsible
for the protection, calibration, maintenance and care of the Part Tooling. Aerogen will be free to use the Part Tooling, at its own expense and absolute discretion, for its own purposes, including the manufacture and supply of Devices to third
parties for use outside of the Field of the License. Aerogen will provide Dance with a pro rata credit for any materials stocks surplus to Dance’s requirements that were originally expensed to Dance and are subsequently used in supply of
Devices or components thereof to third parties. Further development of the Part Tooling will be necessary to increase the capacity of plastic injection mold operation and device assembly processes in order to efficiently produce the Phase III human
clinical units (approximately 5,000) and further initial market introduction units (<100,000 units). Providing this investment in process optimisation is undertaken by Dance, Aerogen will warrant the adequacy of the Part Tooling for the
production of [*] finished Devices (the “Part Tooling Capacity”). Should the Part Tooling prove inadequate to meet this Part Tooling Capacity, Aerogen will bear the cost of repair or replacement of Part Tooling required to achieve
the specified production volume. 
 4.2 Production Tooling. All machinery and tools, including jigs, dies, fixtures, plastic injection mold bodies,
mold cores and mold inserts, patterns, special gauges, special test equipment and other items, drawings and any other equipment or materials necessary and required to establish manufacturing of the Device Proprietary Components in accordance with
the Specification and in quantities above the Part Tooling Capacity (collectively, “Production Tooling”) will be sourced and furnished by Aerogen for and at the expense of Dance and charged to Dance at pass through cost plus [*]
handling and administration charge. Production Tooling will be described in detail in Part C of Appendix 3 to this Addendum, which description may be partial and incomplete as at the Effective Date and which may be amended and updated from time
to time in writing by mutual agreement of the Parties. All Production Tooling will be the sole property of Dance, and all parts made from Dance’s Production Tooling are to be supplied exclusively to Dance. Production Tooling will be housed
within Aerogen’s contracted manufacturing facility, shall be stamped, painted or legibly marked “Property of Dance Biopharm Inc.”, shall be labeled with Dance’s capital expense ID# for accounting purposes, and shall be stored
separately when not in use. Aerogen will be responsible for the protection, calibration, maintenance and care of the Production Tooling, which shall be kept in good condition (normal wear and tear excepted). Production Tooling will be subject to
normal wear and tear in proportion to Dance’s manufacturing volume requirements as specified from time to time, and when necessary will be replaced by Aerogen at Dance’s expense at pass through cost plus [*] handling and
administration charge. 
 Production Tooling for use in the performance of this Addendum shall be and remain the sole exclusive property of Dance and shall
not be used for or furnished to any third party without Dance’s prior written consent. Production Tooling shall be subject to inspection by Dance upon reasonable notice and shall be surrendered to Dance in an acceptable condition (normal wear
and tear excepted) upon reasonable demand or notice. All information with respect to Production Tooling shall be confidential and proprietary information of Dance. Any drawings and specifications prepared by Aerogen and/or Aerogen subcontractors in
connection with the design, sourcing and supply of Production Tooling shall be the property of Dance and shall be marked “Property of Dance Biopharm Inc.” and shall be stored separately when not in use. Copies of such drawings and
specifications will be sent to Dance (Attention: Lisa Molloy) as soon as practicably possible after receipt by Aerogen. 

  
 10 

 ARTICLE 5: QUALITY 

5.1 Quality Standards. Aerogen will manufacture the Device Proprietary Components in accordance with the Specifications set out in Appendix 1. Aerogen
will demonstrate compliance with the Specifications by: 
  

	 	(i)	adhering to the Quality Agreement entered into by the Parties within sixty (60) days after the Effective Date; 

  

	 	(ii)	maintaining accurate records of the manufacture/assembly and testing for each Device Proprietary Component, 

  

	 	(iii)	satisfying Dance’s Acceptance Criteria of compliance against Specification, and 

  

	 	(iii)	obtaining satisfactory ratings on any quality audits conducted by Dance. 

 Dance may conduct quality audits
with respect to the Device Proprietary Components and Aerogen’s manufacturing facilities and processes up to two (2) times per consecutive twelve (12) month period, during Aerogen’s normal business hours and upon no less than
thirty (30) days’ prior notice. Aerogen agrees to cooperate fully with such audits, which will be conducted at Dance’s sole expense. If such an audit reveals that Aerogen is not manufacturing the Device Proprietary Components in
accordance with the Specifications, Dance shall notify Aerogen of any such deficiencies. Aerogen will generate an action plan to address any deficiencies noted in a Dance audit and will use commercially reasonable efforts to implement the plan in a
timely manner. Dance shall be permitted to monitor Aerogen’s performance of the action plan to verify that all deficiencies are being corrected in the manner and in the timeframe set forth in the action plan, and Aerogen shall fully cooperate
with Dance to allow Dance to perform such monitoring. Aerogen may conduct audits with respect to Dance’s complaint handling process to the extent to which it affects the processing of the Device Proprietary Components, up to two (2) times
per consecutive twelve (12) month period, during Dance’s normal hours of business and upon no less than thirty (30) days’ prior notice. Dance agrees to cooperate fully with such audits, which will be conducted at Aerogen’s
sole expense. 
 5.2 Warranty. In addition to the quality requirements set forth in Article 5.1 above, the Device Proprietary Components manufactured
by Aerogen and set forth below shall be accompanied by a warranty from Aerogen that they are free from defects in materials and workmanship for the applicable warranty periods set forth below: 

 

			
	 Device Proprietary Components
	  	Warranty Period
	OnQ (aerosol generator)	  	[*]
	PIC with software loaded	  	[*]

 The warranty periods specified above will begin on the date Dance takes delivery of the Device Proprietary Components at
Dance’s receiving facility. Dance will provide Aerogen, on request, with documentation of the date that Dance took delivery of each unit purchased. The remedies set forth below in this Article 5.2 and in Article 5.3 are Dance’s and its
customers’ sole and exclusive remedies with respect to Device Proprietary Components supplied by Aerogen that fail to meet the warranties set forth in this Article 5.2. The original warranty period will stand for each purchase and will not be
extended by any repaired or replaced Device Proprietary Components supplied under warranty. 
 AEROGEN’S EXPRESS WARRANTY PROVIDED HEREIN IS IN LIEU OF
AND EXCLUDES ALL OTHER WARRANTIES, WHETHER EXPRESSED, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR TITLE. THE LIMITED WARRANTY PROVIDED HEREUNDER SHALL BE
RENDERED NULL AND VOID WITH RESPECT TO ANY DEVICE PROPRIETARY COMPONENT NOT ADMINISTERED, HANDLED OR OTHERWISE USED IN ACCORDANCE WITH THE DESCRIPTION AND DIRECTIONS IN THE DEVICE PROPRIETARY COMPONENT DOCUMENTATION. 

  
 11 

 As more fully set out in any Service Agreement that the Parties may enter into, Dance will provide first level
warranty and technical support for the Device. Dance shall instruct its customers to return Device Proprietary Components requiring warranty replacement to Dance. Dance will examine each Device Proprietary Component so returned to Dance under
warranty and if it determines such Device Proprietary Component to be defective will (a) provide a replacement Device Proprietary Component to the customer out of an inventory of replacement Device Proprietary Components maintained by Dance,
(b) ship the defective Device Proprietary Components to Aerogen by standard, non-express delivery within five (5) business days after receipt from customer, and (c) take a credit for the purchase price of the defective Device
Proprietary Component being returned to Aerogen or an exchange for a conforming Device Proprietary Component (as Aerogen elects). With respect to any Device Proprietary Components that Aerogen reasonably determines, pursuant to its failure
investigation process (in which Dance may participate at its reasonable request), to have been defective within a valid Warranty Period, Aerogen will exchange or repair the returned, defective Device Proprietary Components for an equal quantity of
new Device Proprietary Components, which will be shipped at Aerogen’s expense, or will issue credit equal to the price paid by Dance, at Aerogen’s option. Before returning any Device Proprietary Component under warranty, Dance must notify
Aerogen’s Customer Services Department, which, if it approves the return, will issue Aerogen’s “Return Goods Authorization Form”. No return will be accepted unless accompanied by a Return Goods Authorization Form. All returns,
except recalls, will be shipped at Dance’s expense. All Device Proprietary Components returned due to suspected defect must be returned not more than three (3) months after the end of the warranty period. Aerogen will accept returns only
directly from Dance, and not from Dance’s customers. Aerogen will conduct a failure investigation on all returns to determine whether Device Proprietary Components returned by Dance meet warranty conditions. 

5.3 Right to Return Defective Device Proprietary Components. Within [*] business days of receipt of a shipment of Device Proprietary Components,
Dance shall visually inspect such shipment and notify Aerogen of any qualitative and/or quantitative defects in such shipment that are or would have been discoverable by a reasonable visual inspection. In addition to Dance’s right to return
Device Proprietary Components under warranty as set forth in Article 5.2 above, Dance may return to Aerogen any Device Proprietary Components that are discovered, prior to the sale to a customer, to fail the Acceptance Criteria, not conform to all
applicable Specifications or to breach the warranty set forth in Article 5.2 above, freight prepaid by standard, non-express delivery within five (5) business days after discovery. With respect to any Device Proprietary Component that Aerogen
reasonably determines, pursuant to its failure investigation process (in which Dance may participate at its reasonable request) to have been defective at the time of delivery to Aerogen’s Ex-Works shipping point, Aerogen shall, at its option,
either repair or replace the defective Device Proprietary Component free of charge, or credit Dance with the purchase price of the defective Device Proprietary Component. Aerogen will pay the round trip shipping costs for nonconforming Device
Proprietary Components returned to Aerogen and confirmed by Aerogen to breach the warranty or not to conform to the Specifications therefor. 
 5.4
Recalls. Aerogen shall promptly notify Dance of any issues of which it becomes aware which could potentially give rise to the need to conduct a recall of Device Proprietary Components. Dance shall promptly notify Aerogen prior to Dance
undertaking a recall of Device Proprietary Components or a recall of Dance products that could potentially adversely impact the Device Proprietary Components. In the event of a recall, Dance shall promptly notify Aerogen of the affected lot numbers
or serial numbers. For any Device Proprietary Components that are recalled as a result of a manufacturing or design defect in such Device Proprietary Components, Aerogen will pay freight charges for such recalled products from Dance’s receiving
facility to Aerogen. Aerogen will either replace or credit Dance for the price of such recalled Device Proprietary Components returned in accordance with the procedures designated by Aerogen within a reasonable time period (not to exceed six
(6) months, unless Dance demonstrates to Aerogen that a longer period of time is necessary to carry out the recall. Replacement Device Proprietary Components, if any, for such recalled Device Proprietary Components will be shipped free of
charge to Dance by Aerogen without any product, freight or customs charges to Dance. Aerogen shall promptly notify Dance prior to Aerogen undertaking a recall of any Aerogen product where the root cause of the recall may have implications for the
function of the Device Proprietary Components. 
 5.5 Product Liability Insurance. Aerogen shall maintain at all times during the Exclusive Supply
Term and any Renewed Exclusive Supply Term product liability insurance with limits not less than two million dollars ($2,000,000) per occurrence and five million dollars ($5,000,000) annual aggregate, and shall ensure that such insurance shall not
be cancelled or the coverage reduced below the foregoing specified limits without at least thirty (30) days’ prior written notice to Dance. Aerogen shall, from time to time, at the request of Dance, provide Dance with a certificate of
insurance evidencing the foregoing. 

  
 12 

 5.6 Notification of Product Defects; Complaints, Incidents, Adverse Events. If either Party becomes aware
of a complaint or incident involving, or defect or potential defect in, any Device Proprietary Component, that Party will promptly deliver written notice of the complaint, incident defect or potential defect to the other Party, and each Party will
provide to the other Party all information and analyses related to the complaint, incident, defect or potential defect reasonably requested by the other Party. In the event of any serious or potentially serious complaint, incident or defect
requiring medical intervention or involving a death, the other Party shall be notified within twenty four (24) hours. Each Party shall allow the other Party to comply with, and shall assist the other Party in complying with, all applicable
regulatory reporting requirements applicable to such Party and the Device Proprietary Components, including requirements for the reporting of adverse events. Each Party shall promptly provide the other Party with copies of all reports regarding any
Device Proprietary Components filed with regulatory authorities. Dance shall provide Aerogen with copies of all other communications regarding the Device Proprietary Components that Dance has with regulatory authorities. Dance agrees and
acknowledges that Aerogen may provide information it obtains under this Article 5.6 to other third party customers as appropriate to assist them in meeting local safety reporting requirements. For Aerogen’s performance of its obligations under
this Article 5.6, the term “adverse event” shall be interpreted as either an MDR Reportable Event or Incident, where these terms shall have the meanings set forth in the IS 21 CFR 803 and the European Medical Device Directive 93/42/EEC
Article 10, respectively. 
 ARTICLE 6: CHANGES TO DEVICE PROPRIETARY COMPONENTS 

6.1 No Changes without Authorisation. Aerogen will not without authorisation change, substitute or modify the Device Proprietary Components, nor make
any changes that may affect the Specifications, including any changes to design, material, engineering, documentation or manufacturing process (which includes the manufacturing process, the manufacturing site and the manufacturer), or process step
discontinuances affecting the electrical or mechanical performance (whether specified or not), the mechanical form or fit, interchangeability, the environmental compatibility or chemical characteristics, the life, reliability, serviceability,
regulatory compliance or quality of the Device Proprietary Components or any other changes that have a material impact upon Aerogen’s quality system. By means of a written change request, Aerogen will obtain Dance’s prior written consent
to any such changes proposed by Aerogen. In requesting such consent, Aerogen will provide to Dance a written description of the expected effect of such changes and will provide such evaluation samples as may be requested by Dance. Nothing in this
Article will prevent Aerogen from making changes to its vibrating mesh technology, so long as (i) those changes meet the agreed Specifications then in force and do not change the product form, fit and function, and (ii) Aerogen has
provided Dance at least ninety (90) days’ notice before the effective date of the change of the potential effect of the change on the Device Proprietary Components. 

6.2 Revision of Specifications. At any time after the date of the Notification of Release pursuant to Article 2.3.4, Dance and Aerogen may request
engineering or manufacturing changes in the Specifications for the Device Proprietary Components, thereby giving rise to “Revised Specifications”. The Parties will such request in writing and make a good faith effort to negotiate
and agree upon a resolution to the relevant issues that arise as a result of such proposed changes including Dance’s assent to pricing changes related thereto. If the Parties cannot agree on a resolution addressing the proposed changes, this
Addendum will remain in full force and effect unless otherwise terminated in accordance with Article 10. 
  

	6.2.1	All development work necessary to realise Revised Specifications will fall outside the scope of the Development Program mandated under Section 3 of the License Agreement. Such development work will be subject to
execution of a statement of work (“Statement of Work”) between the Parties describing the development activities intended to realize Revised Specifications within a defined time frame and pricing and payment plan (the
“Project”) which will include the following: 

  
 13 

	 	(i)	a reference number; 

  

	 	(ii)	activities to be carried out and the documents, Device Proprietary Components, files, drawings, production models, quotations, and other items to be delivered during certain stages of the Project, (the
“Deliverables”); 

  

	 	(iii)	Revised Specifications of the Device Proprietary Components to be developed; 

  

	 	(iv)	time schedule of the activities to be carried out; 

  

	 	(v)	location(s) where the Project will be carried out; 

  

	 	(vi)	the development, design, and engineering activities to be completed by Aerogen (“Milestones”); 

  

	 	(vii)	price and price type, including a separate price for production models, if any; 

  

	 	(viii)	payment plan, including financial arrangements in the event of early termination by Dance of the Statement of Work; and 

  

	 	(ix)	acceptance and test requirements. 

  

	6.2.2	The price for the development activities, including a separate price for any production models required, will be specified in the Statement of Work. Prices may include any travel and subsistence. 

 

	6.2.3	For Statements of Work with a term shorter than two (2) months, payments will be made after completion or termination of the Projects against invoice and after receipt of the first Device Proprietary Components to
be supplied and approved by Dance. In case of a longer term, a payment plan will be set forth in the Statement of Work. 

 6.3 Mandatory
Changes. Aerogen will make such changes to the Specifications as are mandated by the appropriate governmental or legal authorities, and, provided that the Device Proprietary Components met applicable safety standards and other governmental
requirements at the time of manufacture, Dance will bear the costs of any subsequent upgrade, substitution or other change required in an equitable manner based on good faith discussions between the Parties. 

6.4 End-of-Life Materials and Components. In the event that changes to the Device Proprietary Components are required as a result of material or
component obsolescence or non-availability the costs of such changes will be borne by Dance. 
 ARTICLE 7: PRICES & PAYMENT 

 

	7.1	Prices. 

  

	7.1.1	The Prices at which Aerogen will supply the Device Proprietary Components to Dance under any given circumstance are set forth in Appendix 2 and denominated in Euros. All Prices are fixed prices which shall apply until
the next annual review date, subject to Articles 7.2, 7.3, and 7.4. 

  

	7.1.2	On a date between the 1st October and 31st October of each year following the Addendum Effective Date,
unless said date is less than twelve (12) months from the date of issue of the first Purchase Order under this Agreement, Aerogen shall notify Dance of (i) any increases and decreases in the costs of the commodities and services used to
produce the Device Proprietary Components and included in the Price pursuant to Article 7.1.1 and (ii) the proposed increase or decrease in the Price of Device Proprietary Components and any Service Part or component thereto which Aerogen
anticipates will be required to compensate Aerogen or Dance for the net effect of such increases and decreases in its costs of production. Provided that any proposed increase does not exceed the corresponding percentage increase in the annual Irish
Industrial Producer Price Index as published by the Irish Central Statistics Office and available from www.cso.ie) (the ‘‘Index”) for the most recent year for which the Index is published, such increase or decrease in the Price
shall be effective on 1st January of the following year. 

  
 14 

	7.2	Payment. 

  

	7.2.1	Device Proprietary Components shall not be invoiced to Dance until shipped. 

  

	7.2.2	Payment for Device Proprietary Components shipped is to be made in Euros and is due net thirty (30) days following the date of Aerogen’s invoice for all Device Proprietary Components not rejected hereunder.

  

	7.2.3	Dance shall pay Aerogen by wire transfer of immediately available funds to a bank account designated from time to time by Aerogen. 

  

	7.2.4	Payment for Device Proprietary Components does not prevent Dance from returning damaged or defective Device Proprietary Components and Dance shall receive appropriate credit for damaged or defective Device Proprietary
Components for which payment has already been made. Credit for returns is deductible from payables only after Dance’s receipt of a credit memo from Aerogen. 

  

	7.2.5	If Dance (a) disputes any amount on an invoice, or (b) has a claim against Aerogen under this Addendum, Dance shall: 

  

	 	(i)	pay the undisputed portion of the invoice less the amount of any claims against Aerogen; and 

  

	 	(ii)	promptly notify Aerogen of its dispute and claims, setting forth in reasonable detail the nature of such dispute or claims. 

  

	 	(iii)	If Aerogen disputes any item disputed or claimed by Dance in a notice given by Dance pursuant to Article 5.3(b), Aerogen and Dance shall resolve their differences pursuant to Article 11 herein. 

 

	7.3	Late Charges. 

  

	7.3.1	Dance shall pay a late charge per month based on an annualised rate of [*] above the current annual Euro Interbank Offered Rate (“Euribor”) reference rate as published at http://www.euribor-ebf.eu/, or
any successor thereto or the maximum rate permitted by law, whichever is less, on all amounts not paid when due. The late charge shall be paid on the next date on which payment is due after such late charge has accrued. 

 

	7.3.2	If (a) Dance disputes any item on an invoice or asserts any claim against Aerogen (and as a result reduces the amount of its payment in respect of such invoice), and (b) such dispute or claim is resolved in
favour of Aerogen, then Dance shall promptly pay the amount so resolved in favour of Aerogen plus interest thereon at the rate specified in Article 7.3.1 from the date payment on the invoice was due until the date payment of such amount is made in
full. 

  

	7.4	Taxes. 

  

	7.4.1	Prices are exclusive of any federal, state or local sales, use or excise taxes and any, value added tax (VAT). 

  

	7.4.2	Dance will pay, or reimburse Aerogen for, any use tax, sales tax, duty, import fees and taxes, inspection or testing fee, or any other tax, fee or charge of any nature imposed by any governmental authority on
Dance’s Purchase Orders or the sale of Devices to Dance, provided however that Dance shall not be liable for any taxes levied on Aerogen’s income. Aerogen will list separately on its invoice any tax lawfully applicable to the relevant
Purchase Order and payable by Dance, if any, with respect to which Dance does not furnish evidence of exemption. 

  
 15 

	7.4.3	Aerogen is responsible for paying any applicable VAT, sales tax, consumption tax or any other similar tax collected from Dance under this Article 7.4.2 to the appropriate tax authorities. 

 

	7.4.4	Aerogen will issue an invoice containing wording that will allow Dance to take advantage of any applicable “input” tax deduction. In addition, Aerogen will inform Dance whether Dance is allowed to apply for an
exemption if and to the extent allowed under applicable law in such specific situation. If Dance claims an exemption from any tax, it must inform Aerogen of the number(s) of all applicable exemption certificates and provide copies of such exemption
certificates before placing orders. 

 ARTICLE 8: DISCONTINUATION OF PRODUCTION. 

8.1 To be effective only after the Exclusive Supply Term, except in the case of Aerogen’s Termination for Cause as described in Article 10.4, if
Aerogen intends to discontinue production of the Device Proprietary Components, Aerogen will inform Dance thereof in writing at least eighteen (18) months prior to the date of production stop. Dance may place an end-of-life Purchase Order for
Device Proprietary Components in such quantity as Dance may reasonably require, and Aerogen will accept such Purchase Order at a price agreed upon by the parties which price will be no higher than the then prevailing Price. 

8.2 In the event of such discontinuation, and where Dance continues to hold exclusivity rights pursuant to Article 2.1.2 Aerogen will cooperate with
Dance to qualify alternate suppliers. Such assistance will include (i) providing the names and addresses of Aerogen’s sources for components or parts not manufactured by Aerogen, including the appropriate part numbers for commercially
available equivalents of electronic parts, (ii) using its best efforts to assign to Dance any license rights Aerogen may have with third parties for software, technology, or any intellectual property used in the manufacture of the Device
Proprietary Components (price to be agreed by respective parties), (iii) transferring Service Parts inventory not otherwise needed by Aerogen to Dance (price to be agreed), and (iv) providing any other reasonable assistance needed to
facilitate uninterrupted availability of the Device Proprietary Components to Dance. Aerogen will use its commercially reasonable best efforts to (a) ensure that Dance will have the right to purchase all such components and parts directly from
Aerogen’s vendors, and (b) obtain for Dance the same benefits Aerogen enjoys under contracts with vendors. 
 ARTICLE 9: REPRESENTATIONS AND
WARRANTIES 
 9.1 Aerogen’s Representations and Warranties. Aerogen represents and warrants to Dance that all Device Proprietary Components
delivered hereunder: 
  

	 	(i)	strictly comply with the Specifications, and any Revised Specifications as may be agreed between the Parties from time to time, and are manufactured in accordance with cGMP. 

 

	 	(ii)	are new (do not contain any used or reconditioned parts or materials) and fit for the purposes for which they are intended; 

  

	 	(iii)	are of sound workmanship, good quality and free from defects in design, construction, manufacture and material; 

  

	 	(iv)	satisfy all applicable laws, regulations, certification requirements and agreed standards, including health and safety standards and all other applicable regulatory requirements for the design, manufacture and shipment
of the Device Proprietary Components, including United States Food and Drug Administration and European Community requirements and any other appropriate International standards for jurisdictions within the Territory in which Dance holds regulatory
approval to market, sell, lease, distribute or otherwise supply Drug Device Combination goods; 

  

	 	(v)	are free and clear of all liens, encumbrances, and other claims against title; and 

  

	 	(vi)	strictly comply with the terms of this Addendum and the applicable Purchase Orders. 

  
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 The foregoing warranties will survive any inspection, delivery, acceptance, or payment by Dance and will be
enforceable by Dance and its successors, assigns, subcontractors, distributors, dealers, agents and customers and all other entities combining, selling or using the Device Proprietary Components or goods into which the Device Proprietary Components
have been incorporated (together, the “Dance Indemnitees”). 
 9.2 Dance’s Representations and Warranties. Dance represents and
warrants to Aerogen that, prior to offering the Device for marketing, sale or distribution in any jurisdiction, Dance will; 
  

	 	(i)	seek and secure all necessary clearances and authorisations from the relevant regulatory authorities in such jurisdiction, and provide Aerogen with documented evidence of such clearances and authorisations;

  

	 	(ii)	develop and implement all necessary quality systems necessary to support commercial exploitation of the Device in such jurisdiction, and provide Aerogen with documented evidence of same. 

9.3 Warranty Work. Aerogen shall be responsible, at its own cost, for all warranty work required under the Device Proprietary Component warranties set
forth in Article 5.2 above. 
 9.4 Technical and Service Support. During the Exclusive Supply Term and any Renewed Exclusive Supply Term, Aerogen
shall provide Dance with such reasonable technical and service support as is reasonably requested by Dance from time to time. Such technical and service support shall be provided under the terms of a separate Service Agreement to be agreed between
the Parties. 
 9.5 Training. At a US location, date and time mutually acceptable to Aerogen and Dance, Aerogen shall provide to Dance’s selected
employees and sales representatives, appropriate training and instruction in the use of the Device Proprietary Components as Dance may reasonably request. Such training shall be provided at Dance’s cost and charged at the Aerogen consultancy
service rate then in force. 
 9.6 Product Information. Aerogen shall furnish to Dance, free of charge, Aerogen technical information and data to
enable Dance to prepare appropriate product descriptions, specifications and advertising literature for use in the sale of Device Proprietary Components to Dance’s customers. Prior to the use thereof, Dance shall provide to Aerogen copies of
all promotional literature, sales aids, packages, scientific, medical or technical information, training aids and other materials intended to be used by Dance in connection with the promotion or distribution of the Device or otherwise describing or
referencing to the Device, together with an English language translation thereof, for review and comment by Aerogen concerning the content relating to the Device Proprietary Components and compliance with applicable labelling laws. All materials
describing technical aspects of, or claims with respect to, the Device Proprietary Components will be subject to the written approval of Aerogen prior to use. All promotional materials prepared by Dance relating to Device Proprietary Components
shall be consistent with those of Aerogen. Aerogen shall have fifteen (15) business days to review and approve such materials, which such approval may be withheld at Aerogen’s sole discretion, and Dance will make any changes reasonably
requested by Aerogen within such fifteen (15) business day period. 
  

	9.7	Aerogen Indemnity. 

  

	9.7.1	 Aerogen hereby agrees to indemnify and hold harmless the Dance Indemnitees and each present, future and former director, officer, employee, agent and
representative thereof, from any against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements, including reasonable legal fees and expenses, of whatsoever kind and nature,
imposed on, incurred by or asserted against any of them by an unrelated third party, arising out of, or resulting from (a) any claim brought by a third party against Dance alleging that a Device Proprietary

  
 17 

	 	
Component caused injury to person or damage to property due to a defect in the manufacture or design of the Device Proprietary Component, or (b) improper labelling of the Device Proprietary
Component, or (c) any breach by Aerogen of any express covenant, representation, warranty or other term of this Addendum or (d) any negligent act or omission or wilful misconduct of Aerogen or its agents, employees or subcontractors. Dance
shall give Aerogen prompt written notice of any such claim or suit, and shall permit Aerogen to undertake the defence thereof, at Aerogen’s expense. Dance shall cooperate in such defence to the extent reasonably requested by Aerogen, at
Aerogen’s expense. Dance shall have the right to participate in such defence, at its own expense. In any claim made or suit brought for which Dance seeks indemnification under this Article 9.7.1, Dance shall not settle, offer to settle, or
admit liability or damages without the prior written consent of Aerogen. 

  

	9.7.2	Lower Tier. Aerogen will be responsible for its participating Affiliates, subcontractors and vendors through the lowest tier. Aerogen will indemnify, defend and hold harmless the Dance Indemnitees from and
against any and all claims and liabilities, including all costs and expenses, arising directly from any actual action or failure to act by Aerogen’s Affiliates, subcontractors or vendors. 

9.8 Dance Indemnity. Dance hereby agrees to indemnify and hold harmless Aerogen, its successors and assigns, and each present, future and former
director, officer, employee, agent and representative thereof, from any against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements, including reasonable legal fees and
expenses, of whatsoever kind and nature, imposed on, incurred by or asserted against any of them by an unrelated third party, arising out of, or resulting from (a) any claim brought by a third party against Aerogen alleging that a product
incorporating the Device Proprietary Components and supplied by the Dance Indemnitees caused injury to person or damage to property otherwise than specifically due to a defect in the manufacture or design of the Device Proprietary Components, or
(b) a Dance Indemnitee’s breach of any express covenant, representation, warranty or other term of this Addendum (c) any negligence or wilful misconduct of a Dance Indemnitee. Aerogen shall give Dance prompt written notice of any such
claim or suit, and shall permit Dance to undertake the defence thereof, at Dance’s expense. Aerogen shall cooperate in such defence to the extent reasonably requested by Dance, at Dance’s expense. Aerogen shall have the right to
participate in such defence, at its own expense. In any claim made or suit brought for which Aerogen seeks indemnification under this Article 9.8, Aerogen shall not settle, offer to settle, or admit liability or damages without the prior written
consent of Dance. 
 9.9 Intellectual Property Indemnity. Aerogen represents and warrants to Dance that all Device Proprietary Components delivered
hereunder do not to the best of Aerogen’s knowledge, information and belief violate or infringe any third party domestic or foreign patent, copyright, trade secret, trademark or other intellectual property right. Aerogen will defend, indemnify
and hold harmless the Dance Indemnitees from and against all liability and expenses, including reasonable attorneys’ fees, arising from or related to any claim of infringement of any domestic or foreign patent, trademark, copyright or other
intellectual property rights, misappropriation of trade secrets or breach of confidential relationship with respect to the Device Proprietary Components. Aerogen’s foregoing obligations are conditioned on Dance notifying Aerogen promptly in
writing of such action, giving Aerogen sole control of the defence thereof and any related settlement negotiations, and cooperating and, at Aerogen’s reasonable request and expense, assisting in such defence, provided that Dance shall have the
right to participate in such defence at its own expense and any settlement that admits fault on the part of Dance shall be subject to Dance’s consent, not to be unreasonably withheld. If the use of the Device Proprietary Components is enjoined
as the result of any claimed infringement, Aerogen will use its commercially reasonable best efforts to, without in any way limiting the foregoing indemnity, and at its expense and in its sole discretion: 

 

	 	(i)	procure for Dance Indemnitees the right to continue to market, sell and distribute the Device Proprietary Components; 

  

	 	(ii)	replace or modify the Device Proprietary Components with Device Proprietary Components of equivalent performance so that they become non-infringing; or 

 

	 	(iii)	if such procurement, replacement or modification is not reasonably available, terminate Dance’s right to continue to market, sell and distribute the Device Proprietary Components by written notice effective upon
receipt. 

  
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 If Aerogen terminates the Addendum pursuant to Article 9.9 (iii) above, then (a) Dance will cease
distributing the Device Proprietary Components, and (b) Aerogen shall repurchase all of the infringing Device Proprietary Components possessed in inventory by Dance for the purchase price paid by Dance. 

The preceding indemnity will not apply to the extent that actual infringement results solely from: 

 

	 	(iv)	the Device Proprietary Components being manufactured to the Specifications provided that all implementations of the Specifications constitute infringement of a third party right; 

 

	 	(v)	the Device Proprietary Components being combined with or incorporated into any product not supplied by Aerogen except where (I) a material element of the infringement is due to the Licensed Intellectual Property,
and/or (II) (a) such combination is necessary to enable the Device Proprietary Components to function for their intended use, or (b) there is no substantial non-infringing use to which the Device Proprietary Components could have been put
with respect to the patent(s) alleged to be infringed by the combination other than to infringe the patent(s) alleged to be infringed by the combination; or 

  

	 	(vi)	a modification, misuse or mishandling of a Device Proprietary Component after delivery thereof by Aerogen (to the extent that such modification, misuse or mishandling of the Device Proprietary Component is the sole
cause of the infringement and misappropriation. 

 If Dance is or becomes aware that the Device Proprietary Components violate or infringe or
are likely to violate or infringe any third party domestic or foreign patent, copyright, trade secret, trademark or other intellectual property right, Dance shall at its earliest opportunity and in any event within not more than thirty
(30) days give notice of such possible violation or infringement to Aerogen. 
  

	9.10	Trademarks. 

  

	9.10.1	This Addendum and the manufacture and supply of Device Proprietary Components by Aerogen does not grant to Aerogen any rights in or license to any trademarks of Dance or to the use of such trademarks, either on or
relating to the Device Proprietary Components, in Aerogen’s sales literature or other publications, or otherwise, by or for the benefit of Aerogen, other than as provided for in Clause 3.4.3(c) of the Licence Agreement. 

 

	9.10.2	If requested by Dance, Aerogen will ensure that the Device Proprietary Components contains Dance’s trademarks, serial number format and packaging conforming to Dance’s specifications for external appearance.
Aerogen will not sell, transfer, distribute or otherwise convey any part, component, product or service bearing or incorporating Dance’s trademarks, part numbers or other identifiers, including any of Dance’s packaging, copyrights or code,
to any party other than those allowed by this Addendum. 

  

	9.10.3	Dance is hereby granted permission to use, during the Exclusive Supply Term and any Renewed Exclusive Supply Term and for the purpose of advertising and marketing the Device Proprietary Components, Aerogen’s
trademarks and trade names specified in Appendix 5 (the “Trademarks”), including use on any sales promotion documentation, subject to Article 9.6 above. Dance shall fully comply with all reasonable usage guidelines communicated by Aerogen
to Dance regarding the use of the Trademarks. The Device will be affixed with copyright notices sufficient to give notice as to the rights of Aerogen in the Device Proprietary Components, and Dance shall not deface or alter in any way any Trademark
appearing on the Device Proprietary Components. All right, title and interest in and to the Trademarks and all goodwill attached thereto are the sole property of Aerogen, and any and all use of the Trademarks by Dance shall inure solely to the
benefit of Aerogen. Upon expiration or termination of this Addendum, Dance shall discontinue immediately all use of Trademarks, except as is necessary to sell any remaining inventory as permitted by this Addendum. 

  
 19 

	9.11	Stand By Manufacturing Agreement. The terms of the Standby Manufacturing Agreement incorporated herein as Appendix 4 shall apply only for so long as the Dance holds exclusivity rights pursuant to Article 2.1.1
and 2.1.2 above. 

 9.12 Limitations of Liability. EXCEPT IN CONNECTION WITH A BREACH OF CONFIDENTIALITY, IN NO EVENT WILL AEROGEN OR
DANCE BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, ARISING FROM OR RELATING TO THIS ADDENDUM (OR TERMINATION HEREOF), INCLUDING, BUT NOT LIMITED TO, THE LOSS OF PROSPECTIVE PROFITS OR ANTICIPATED SALES, OR ON ACCOUNT OF
EXPENSES, INVESTMENTS, OR COMMITMENTS IN CONNECTION WITH THE BUSINESS OR GOODWILL OF AEROGEN OR DANCE OR OTHERWISE. EXCEPT FOR LIABILITY ARISING UNDER ARTICLES 9.7 OR 9.9, AEROGEN’S TOTAL CUMULATIVE LIABILITY IN CONNECTION WITH THIS ADDENDUM,
WHETHER IN CONTRACT OR TORT OR OTHERWISE, WILL NOT EXCEED THE TOTAL AMOUNTS PAID UNDER THE ADDENDUM DURING THE TWELVE (12) MONTHS PRIOR TO THE EVENTS GIVING RISE TO THE LIABILITY. 

ARTICLE 10: TERMINATION 
 10.1 Dance’s Termination
without Cause. To be effective only after the end of the Exclusive Supply Term, Dance may terminate this Addendum at any time, with twelve (12) months prior written notice to Aerogen, or (b) otherwise in accordance with this Article
10. 
 10.2 Aerogen’s Termination without Cause. To be effective only after the end of the Exclusive Supply Term, Aerogen may terminate this
Addendum (a) at any time, with twelve (12) months prior written notice to Dance, or (b) otherwise in accordance with this Article 10. 

10.3 Dance’s Termination for Cause. Dance may immediately suspend performance of its obligations under the Addendum or immediately terminate this
Addendum in whole or in part upon written notice to Aerogen only if: 
  

	 	(i)	Aerogen files a voluntary petition in bankruptcy or any voluntary proceeding relating to insolvency, receivership, liquidation, assignment for the benefit of creditors or similar proceeding; 

 

	 	(ii)	Aerogen becomes the subject of a petition in bankruptcy or any proceeding relating to insolvency, receivership, liquidation, assignment for the benefit of creditors or similar proceeding and such petition or proceeding
is not dismissed within ninety (90) days from filing of such petition or proceeding; 

  

	 	(iii)	Aerogen ceases or threatens to cease to carry on business in the ordinary course; 

  

	 	(iv)	Aerogen materially breaches any of its obligations under this Addendum and such material breach is not cured within thirty (30) days following receipt of written notice of breach from Dance. 

10.4 Aerogen’s Termination for Cause. Aerogen may suspend performance of its obligations under this Addendum or terminate this Addendum in whole or
in part immediately upon written notice to Dance only if: 
  

	 	(i)	Dance files a voluntary petition in bankruptcy or any voluntary proceeding relating to insolvency, receivership, liquidation, assignment for the benefit of creditors or similar proceeding; 

 

	 	(ii)	Dance becomes the subject of a petition in bankruptcy or any proceeding relating to insolvency, receivership, liquidation, assignment for the benefit of creditors or similar proceeding and such petition or proceeding is
not dismissed within ninety (90) days from filing of such petition or proceeding; 

  

	 	(iii)	Dance ceases or threatens to cease to carry on business in the ordinary course; 

  
 20 

	 	(iv)	Dance materially breaches any of its obligations under this Addendum and such material breach is not cured within thirty (30) days following receipt of written notice of breach from Aerogen. In the event that Dance
receives a notice of material breach and disputes in good faith whether the alleged material breach occurred or was timely cured, it may seek resolution of such dispute pursuant to Article 11 below and Article 11 of the License Agreement, and in
such event, no termination of this Addendum pursuant to this Article 10.4 may occur until completion of such dispute resolution determines that a material breach of this Agreement has occurred or has not been timely cured. 

10.5 Consequences of Termination. Upon termination of this Addendum for other than Dance’s material breach pursuant to Article 10.4 herein, Aerogen
shall continue to fulfil all Purchase Orders accepted by Aerogen prior to the effective date of termination. Upon termination of this Addendum for other than Dance’s material breach pursuant to Article 10.4 herein, Dance may sell its remaining
inventory of Device Proprietary Components for a period not to exceed ninety (90) days after the later of (i) the termination date, or (ii) the receipt of Device Proprietary Components from Aerogen. Any inventory remaining after such
period shall be, at Aerogen’s election, (i) sold by Dance, (ii) repurchased by Aerogen at the price paid by Dance, or (iii) returned to Aerogen (at Aerogen’s cost) and the cost of such Device Proprietary Components credited
against any amounts owed by Dance to Aerogen under this Addendum. Aerogen shall make such election within ten (10) business days after the expiration of the ninety (90) day period referenced above. The Addendum, wherever applicable, shall
continue to govern Dance’s permitted disposition of its remaining inventory of Device Proprietary Components. The obligations of Articles 5.2, 5.3, 5.4, 5.6, 7.3, 7.4, 9.1, 9.2, 9.3, 9.7, 9.8, 9.9, 9.12, 10.2, 12.6, 12.7, 12.8 and 12.10 shall
survive the termination of this Addendum. In addition to the foregoing, if Dance terminates this Addendum in whole or in part for cause as described in Article 10.3, Dance shall have the same rights as if Aerogen discontinued production as such
rights are described in Article 8. 
 ARTICLE 11: DISPUTE RESOLUTION 

The following procedure will be adhered to in all disputes that arise under this Addendum. 

 

	11.1	The party which asserts that a dispute has arisen under this Addendum shall notify the other party in writing of the nature of the dispute with as much detail as possible about the deficient performance of the other
party. 

  

	11.2	The duly authorised and mutually notified representatives of each Party (the “Representatives”) shall: 

  

	 	(i)	meet in person or by telephone conference within seven (7) days after the date of the written notification to reach an agreement about the nature of the deficiency and the corrective action to be taken by the
respective parties; and 

  

	 	(ii)	produce a detailed written report of the nature of the dispute to the respective management of Dance and Aerogen, duly signed and dated by Representatives of both Parties. 

 

	11.3	If the Representatives are unable to agree on corrective action, the respective managers to whom the Representatives report (“Management”) shall meet in person within the State of New York to facilitate
an agreement within fifteen (15) business days after the last date of signature of the report compiled pursuant to Article 11.2 (ii). 

  

	11.4	If Management cannot resolve the dispute with a written plan or corrective action with seven (7) days after their initial meeting, or the agreed-upon completion dates in the written plan of corrective action are
exceeded, either party may request arbitration as provided for in Article 11 of the License Agreement. 

  
 21 

 ARTICLE 12: GENERAL PROVISIONS 

12.1 Waiver. No departure from or waiver of any of the terms of this Addendum by either Party shall be deemed to authorize any prior or subsequent
departure or waiver and a Party hereto shall not be obligated to continue any departure or waiver or to permit any subsequent departure or waiver. 
 12.2
Changes. Any changes in Aerogen’s use of the subcontractors previously authorised by Dance will require Dance’s prior written consent. 

12.3 Integration, Amendment. This Addendum and its Appendices, together with the License Agreement and any Purchase Order issued hereunder constitute
the entire agreement and understanding of the Parties with respect to sale of Device Proprietary Components by Aerogen to Dance for the purposes of supply to third party customers, and merges all prior discussions and negotiations between them and
supersedes any previous agreement whether oral or written. Course of performance, course of dealing and usage of trade will not apply to this Addendum. This Addendum may not be amended or modified in any manner except by a written instrument
properly executed by authorised officers of each Party. 
  

	12.4	Country of Origin. 

  

	12.4.1	Upon Dance’s request, Aerogen will provide Dance with an acceptable and auditable certification stating the country of origin for the Device Proprietary Components, sufficient to satisfy the requirements of
(i) customs authorities of the country of receipt; and (ii) applicable export licensing regulations. Aerogen will mark each Device Proprietary Component (or the Device Proprietary Component’s container if there is no room on the
Device Proprietary Component) with the country of origin. Aerogen will, in marking the Device Proprietary Component, comply with the requirements of the customs authorities of the country of receipt. 

 

	12.4.2	If the Device Proprietary Components are export controlled, Aerogen will inform Dance accordingly and indicate the applicable export control classification number (“ECCN”). 

 

	12.4.3	Aerogen will organize its administration and manufacturing in such a way that the Device Proprietary Components can be supplied with preferential origin status and supply the Device Proprietary Components with the
appropriate documentary evidence of the preferential origin status. Aerogen will provide the appropriate customs documentation for Device Proprietary Components which may be imported and/or exported by Dance, including NAFTA Certificate, Certificate
of Origin (renewed on a two (2) year basis), FDA Accession Number, FDA 510K number Tariff System Classification Codes, each to the extent relevant. Aerogen will support Dance with import and export regulatory issues so that regulatory
compliance will be met. 

  

	12.4.4	This Addendum has been executed and the Prices of the Device Proprietary Components have been agreed upon taking into consideration the asserted origin of the Device Proprietary Components as well as the delivery by
Aerogen of the appropriate documentary evidence of the preferential origin status requested by custom authorities. It is expressly understood that the preferential origin status of the Device Proprietary Components and the accuracy thereof for any
supplied Device Proprietary Components hereunder are essential under this Addendum. 

  

	12.4.5	If Device Proprietary Components delivered under this Addendum are imported, Aerogen will when possible allow Dance to be the importer of record. If Dance is not the importer of record and Aerogen obtains duty drawback
rights to the Device Proprietary Components, Aerogen will, upon Dance’s request, provide Dance with documents required by the customs authorities of the country of receipt to prove importation and to transfer duty drawback rights to Dance.

  
 22 

	12.5	General Rules of Construction. In this Addendum, unless the context otherwise requires: 

  

	 	(i)	words in the singular number or in the plural number will each include the singular number or the plural number; 

  

	 	(ii)	references to “days” will, unless otherwise specified, mean calendar days; 

  

	 	(iii)	reference to any agreement (including this Addendum) or other contract or any document means such agreement, contract or document as amended or modified and in effect from time to time in accordance with the terms
thereof and, if applicable, the terms hereof; 

  

	 	(iv)	“including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding or succeeding
such term; 

  

	 	(v)	“hereto”, “herein”, “hereunder”, “hereinafter” and similar expressions refer to this
Addendum in its entirety, and not to any particular Article or other part of this Addendum; 

  

	 	(vi)	reference to any “Article” or “Appendix” means the corresponding Article or Appendix of or to this Addendum; and

  

	 	(vii)	the descriptive headings of Articles, paragraphs and other parts of this Addendum are included for convenience only and will not affect in any way the meaning or interpretation of this Addendum or any of the terms or
provisions hereof. 

  

	12.6	Waiver of Trial by Jury; Jurisdiction. 

  

	12.6.1	Waiver of Trial by Jury. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS ADDENDUM IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS ADDENDUM, OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

 

	12.6.2	Consent to Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the courts of the State of New York, in any action
or proceeding arising out of or relating to this Addendum or the agreements delivered in connection herewith or the transactions contemplated hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each of the
parties hereby irrevocably and unconditionally: 

  

	 	(i)	agrees not to commence any such action or proceeding except in such courts; 

  

	 	(ii)	agrees that any claim in respect of any such action or proceeding may be heard and determined in such State of New York court or; 

  

	 	(iii)	waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding in any such State of New York court, and

  

	 	(iv)	waives, to the fullest extent permitted by law, the defence of an inconvenient forum to the maintenance of such action or proceeding in any such State of New York court. 

Each of the parties hereto agrees that a final judgment in any such action or proceeding will be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by Law. Each Party to this Addendum irrevocably consents to service of process in the manner provided for notices in Article 12.7 of the Licence Agreement. Nothing in this
Addendum will affect the right of any Party to this Addendum to serve process in any other manner permitted by law. 

  
 23 

 12.7 Personal data. If Aerogen receives or has access to personal data, as defined in any applicable
personal data protection legislation or similar law or regulation (“Personal Data”), in the performance of this Addendum, then Aerogen will: 
  

	 	(i)	not use or further disclose Personal Data other than as permitted by this Addendum or required by law; 

  

	 	(ii)	use appropriate safeguards to prevent the use or disclosure of the Personal Data other than as permitted by this Addendum; and 

  

	 	(iii)	implement administrative, physical, and technical safeguards that reasonably and appropriately protect the Personal Data against unauthorized or unlawful processing of the Personal Data. 

To the extent that Aerogen uses an authorized subcontractor with access to the Personal Data, Aerogen will obtain subcontractor’s written agreement to
this provision. Aerogen will comply with the applicable data protection legislation and all further reasonable instructions provided by Dance with regard to the processing and protection of the Personal Data by Aerogen. Aerogen will use reasonable
efforts to mitigate any harmful effect that is known to Aerogen of a use or disclosure of Personal Data by Aerogen in violation of the law or this Addendum. Aerogen will, upon the termination of this Addendum, return to Dance or securely destroy all
records or documents containing the Personal Data. Aerogen will remain bound by the provisions of this Article 12.7 with respect to any Personal Data that remain in its possession. 

Insofar images or other health related records that will be provided by Aerogen to Dance under this Addendum contain Personal Data or references thereto,
Aerogen will ensure that all such Personal Data and references are removed or made illegible or inaccessible prior to the disclosure to Dance. Where the Personal Data cannot be removed, or be made illegible or inaccessible, Aerogen warrants that it
has obtained the explicit consent of the data subject concerned with regard to the disclosure of the Personal Data or reference thereto to Dance as well as the use of those Personal Data or references thereto by Dance. Aerogen will permit Dance to
use such images or health related records for its business, research and marketing purposes. 
 12.8 HIPAA Compliance. Aerogen may provide certain
services to Dance or Dance’s customers and, in connection with those services, Dance or its customers may disclose to Aerogen individually identifiable health information as defined in and subject to protection under the Health Insurance
Portability and Accountability Act of 1996 and the regulations promulgated pursuant thereto (“HIPAA”). Dance’s customers may include “Covered Entities,” which are subject to HIPAA. This Article is to allow
Dance’s customers to comply with HIPAA. “PHI” and “ePHI” will mean Protected Health Information and Electronic Protected Health Information, respectively, as defined in 45 C.F.R. §160.103, limited to the
information Aerogen received from or created or received on behalf of Dance as Dance’s Customer’s Business Associate. 
 Dance and Aerogen agree
that: (1) Aerogen will not use or further disclose PHI other than as permitted by this Addendum or required by law; (2) Aerogen will use appropriate safeguards to prevent the use or disclosure of the PHI other than as permitted by this
Addendum, and will implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of ePHI (“Safeguards”); (3) Aerogen will report to
Dance: (a) any use or disclosure of the PHI not permitted by this Addendum or by law of which Aerogen becomes aware; and (b) any Security Incident of which Aerogen becomes aware; (4) To the extent that Aerogen uses one or more
subcontractors or agents to provide services under this Addendum, and such subcontractors or agents receive or have access to the PHI, each such subcontractor or agent will: (a) enter into a written agreement with Aerogen containing the same
restrictions and conditions set forth in the business associate provisions of HIPAA that apply through Aerogen; and (b) implement reasonable and appropriate Safeguards to protect ePHI; (5) Aerogen agrees to make (a) its internal
practices, books and records relating to the use and disclosure of PHI and (b) its policies, procedures and documentation required by the Security Rule relating to the Safeguards, available to the Secretary of the U.S. Department of Health and
Human Services or his designee to the extent necessary to determine Aerogen’s customer’s compliance with HIPAA ; (6) Aerogen agrees to make available to Dance (or at Dance’s direction to a Dance customer) the information in its
possession required to provide an accounting of Aerogen’s disclosures of PHI as required by HIPAA; (7) Aerogen will use reasonable commercial efforts to mitigate any harmful effect that is known to Aerogen of a use or disclosure of PHI by
Aerogen in violation of this Addendum; and (8) upon the termination of this Addendum for any reason, Aerogen will return to Dance (or at Dance’s direction to Dance’s customer) or destroy all PHI received from Dance or Dance’s
customer that Aerogen maintains in any form, recorded on any medium, or stored in any storage system, unless said information is no longer PHI or if the return or destruction is not feasible. Following termination of this Addendum, Aerogen will
remain bound by the provisions of this Article with respect to any PHI that remains in its possession. 

  
 24 

 12.9 Excluded Provider. Aerogen represents and warrants that it, and, to the best of its knowledge, its
employees and subcontractors providing the Device Proprietary Components are not debarred, excluded, suspended or otherwise ineligible to participate in a U.S. federal health care program, nor have they been convicted of any U.S. health care related
crime (an “Excluded Provider”). Aerogen will promptly notify Dance in writing if it becomes aware that any of its employees or subcontractors providing the Device Proprietary Components has become an Excluded Provider. Dance may
terminate this Addendum upon written notice to Aerogen if Aerogen or any of its employees or subcontractors providing the Device Proprietary Components becomes an Excluded Provider. 

12.10 Availability of Records. Until the expiration of seven (7) years after furnishing the Device Proprietary Components, Aerogen will make
available, upon written request of the Secretary of the U.S. Department of Health and Human Services (“DHHS”), or upon request of the U.S. Comptroller General, or any of their authorized representatives, each Purchase Order and the
books, documents and records of Aerogen that are necessary to certify the nature and extent of the costs for which Dance seeks reimbursement. Aerogen further agrees that if Aerogen carries out any of the duties of this Addendum through a subcontract
with a value or cost of ten thousand dollars US ($10,000) or more over a twelve (12) month period, with a related organization, such subcontract will contain a clause to the effect that until the expiration of four (4) years after the
furnishing of such Device Proprietary Components pursuant to such subcontract, the related organization will make available, upon written request to the Secretary, or upon request to the Comptroller General, or any of their authorized
representatives, the subcontract, and books and documents and records of such organization that are necessary to verify the nature and extent of such costs. 

12.11 Publicity. Neither Party will, without the prior written consent of the other, (a) make any news release, public announcement, relating to
this Addendum or its subject matter, nor (b) in any manner advertise or publish the fact that the Parties have entered into this Addendum. 
 12.12
Relationship of the Parties. Each Party is an independent contractor, not an agent, employee or representative of the other. Neither Party has authority to make any statement, representation or commitment of any kind or to take any action
binding upon the other, without the other Party’s prior, written authorization. 
 12.13 Authority; Due Execution. Each Party represents and
warrants to the other, that (i) it has full power and authority to enter into this Addendum and any agreements related hereto and, subject to the terms and conditions hereof, this Addendum, when executed, will be a valid and legally binding
obligation of such Party according to its provisions; (ii) the execution and performance of this Addendum will not constitute a breach of or an event of default under any agreement, contract, law or regulation to which such Party is or may be
bound; and (iii) the execution and performance of this Addendum has been duly authorized by all necessary corporate action. 
 12.14 Supply Chain
Security. Aerogen will take appropriate measures to ensure that the Device Proprietary Components under its care are protected in such a way that any misappropriation, theft, replacement, addition of unfamiliar goods or other unauthorized access
to the goods will be prevented. In particular, Aerogen will: 
  

	 	(i)	be actively involved in supply chain security programs of Dance as may be adopted or amended by Dance from time to time and described in regular review meetings and business communications; 

 

	 	(ii)	ensure that (a) the provisions of the U.S. C-TPAT Program (“C-TPAT Requirements”) are complied with for all shipments under this Addendum to the United States of America, and/or (b) the EU AEO
Certificate on Security and Safety (“AEO Requirements”) on Security and Safety are complied with for all shipments that pass the outer borders of the European Union; 

 

	 	(iii)	comply with all local requirements with respect to security and safety of the supply chain in countries where Aerogen or its subcontractors manufacture or ship the Device Proprietary Components. 

  
 25 

 Dance may audit the supply chain security of Aerogen for compliance with this Article 12.14 and Aerogen will
ensure that Aerogen may do the same with Aerogen’s subcontractors. 
  

	12.15	Force Majeure. 

  

	12.15.1	Neither Party shall be liable for failure to perform or for delay in performance due to fire, flood, strike or other labour dispute, act of God, act of any governmental authority which is not specific to the Parties,
riot, act of terrorism, war, embargo, delay in transportation or due to any cause beyond such Party’s reasonable control. In the event of a delay in performance due to any cause described in this Article 12.15.1, the time for completion will be
extended by a period of time reasonably necessary to overcome the effect of such delay, subject always to application of any specific provisions of Article 2.11.1. 

 

	12.15.2	For the purposes of this Addendum, Force Majeure on the part of Aerogen shall in any event not include shortage of personnel or production materials or resources, financial problems of Aerogen, nor the inability of
Aerogen to secure the necessary licenses in respect of software to be supplied or the necessary legal or administrative permits or authorizations in relation to the Device Proprietary Components to be supplied. 

12.16 Severability. The invalidity or unenforceability of any term or provision of this Addendum or of the application of any such term or provision to
any person or circumstance shall not impair or affect the remainder of this Addendum and its application to other persons or circumstances. Each invalid or unenforceable term or provision shall be enforced to the greatest extent permitted by law and
the remaining terms and provisions hereof shall not be invalidated but shall remain in full force and effect. 
 12.17 Notices. Any notice required or
permitted to be given hereunder by either Party shall be in writing and shall be deemed given on the date received if delivered personally or by reputable overnight delivery service, or three days after the date postmarked if sent by registered or
certified mail, return receipt requested, postage prepaid to the following addresses: 
  

					
	If to Dance:	  	FAO: Business Development	  	
		  	Dance Biopharm Inc.	  	
		  	2 Mint Plaza #804	  	
		  	San Francisco, CA 94103	  	
		  	Phone: +1 650-###-####	  	
		
	If to Aerogen:	  	FAO: Director of Business Development
		  	Aerogen Limited	  	
		  	IDA Business Park	  	
		  	Dangan, Galway, Ireland	  	
		  	Phone: +353 91 540 400	  	
		  	Fax:     +353 91 584 639	  	

 12.18 Survival. All terms and conditions of this Addendum which are intended (whether expressed or not) to survive the
duration or termination of this Addendum will so survive. 

  
 26 

 IN WITNESS WHEREOF, this Addendum to the Distribution Agreement has been duly executed and delivered by
the duly authorized officers of the parties hereto as of the date first written above. 
  

									
		 	Dance Biopharm Inc.	 		 		 	Aerogen Limited
					
	Signature:	 	 /s/ Samantha Miller
	 		 		 	 /s/ Colin M. Telfer

	Name:	 	Samantha Miller	 		 		 	Colin M. Telfer PhD
	Title:	 	Chief Business Officer	 		 		 	Director of Business Development
	Date:	 	21 October 2013	 		 		 	18th October 2013
					
	and	 		 		 		 	
					
	Signature:	 	  
	 		 		 	
	Name:	 		 		 		 	
	Title:	 		 		 		 	
	Date:	 		 		 		 	

  
 27 

 APPENDIX 1 

To 
 ADDENDUM 1 TO
LICENCE AGREEMENT (SUPPLY AGREEMENT FOR DEVICE PROPRIETARY COMPONENTS) 
 DEVICE PROPRIETARY COMPONENTS SPECIFICATIONS 

The Device Proprietary Components to be delivered by Aerogen to Dance under this Addendum and its Specifications are as follows: 

 

	A:	Device Proprietary Components Description 

 The device proprietary components are described as the
following in the Dance Biopharma Adagio-01 clinical device; 
  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	B:	Device Proprietary Components Images 

 [*] 

 

	C:	Device Proprietary Component Specifications 

 The Specifications for the Device Proprietary Components
used in the Dance Biopharm Adagio-01 clinical device are described in the Design Input Requirements reference; DIR 99-228. 
 The Specifications for the
commercial device have not been determined at this point. 

  
 1 

 APPENDIX 2 

To 
 ADDENDUM 1 TO
LICENCE AGREEMENT (SUPPLY AGREEMENT FOR DEVICE PROPRIETARY COMPONENTS) 
 DEVICE PROPRIETARY COMPONENT PRICES 

 

	1.	ESTIMATED COGS AND TRANSFER PRICING OF DEVICE PROPRIETARY COMPONENTS 

  

																	
	 Annual Production

Volumes (units)
	  	PIC	 	 	OnQ	 
	  	COGS (€)	 	 	Transfer (€)	 	 	COGS (€)	 	 	Transfer (€)	 
	 10,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 
	 50,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 
	 100,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 
	 500,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 
	 1,000,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 
	 2,000,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 
	 3,000,000
	  	 	[	*] 	 	 	[	*] 	 	 	[	*] 	 	 	[	*] 

 COGS estimates will be revised further to qualification of a definitive manufacturing process. 

 

	2.	TRANSFER PRICING OF DEVICE PROPRIETARY COMPONENT SUPPLY – APPLIED MARGIN OVER COGS 

  

					
	 for supply of PIC and OnQ
	 
	 at volumes of under 500,000 pieces per annum
	  	 	[	*] 
	 at volumes of 500,000 pieces per annum or more
	  	 	[	*] 

 Mechanism for determining % mark-up applied to COGS to derive transfer pricing 

 

	 	2.1	for PIC 

 Either; 

 

	 	(i)	Aerogen supplies Dance, billing as follows: 

 [*] 

or 
  

	 	(ii)	Dance purchases direct from sub-supplier and reports figures to Aerogen, which issues an invoice for the supply margin specified per the table above. 

  
 1 

	 	2.2	for OnQ 

  

	 	(i)	In December of each year, COGS is estimated by Aerogen on basis of known variables, including Dance rolling forecast. 

  

	 	(ii)	Purchase lots are invoiced throughout the year on basis of December estimate, with addition of appropriate supply margin specified per the table above. 

 

	 	(iii)	Actual COGS for complete year are calculated during annual audit process, and provided to Dance for review. Aerogen issues an invoice or remits payment to balance projected against actual COGS. 

  
 2 

 APPENDIX 3 

To 
 ADDENDUM 1 TO
LICENCE AGREEMENT (SUPPLY AGREEMENT FOR DEVICE PROPRIETARY COMPONENTS) 
 DEVICE PROPRIETARY COMPONENT MANUFACTURING INFRASTRUCTURE

 The Device Proprietary Components will be manufactured under Aerogen’s management and quality control systems as follows: 

 

	A:	Approved Facilities and Subcontractors 

 Subcontractors for commercial manufacture have not been
determined at this point. Current facilities and sub-contractors relevant to construction and supply of OnQ aerosol generator core at clinical build stage are: 
  

	#1	[*] 

  

	#2	[*] 

  

	#3	[*] 

  

	#4	[*] 

  

	#5	[*] 

  

	#6	[*] 

  

	B:	Production Tooling 

 Production tooling for commercial manufacture has not been determined at this
point. 
  

	C:	Production Supply Chain 

 The current production supply chain for building clinical units is as shown in
A3.1 below, with individual suppliers numbered as in Section A above. These processes have been designed to deliver the quantities expected in the Phase II and Phase III clinical trials for the Dance Biopharma device. At present, in accordance with
Article 2.7 of this Addendum, the location of final Device Proprietary Component assembly is the premises of supplier #5 for OnQ and supplier #6 for the PIC. 

Although some of these same suppliers may still be involved, the production processes necessary to produce Device Proprietary Components at the commercial
volumes required by Dance Biopharm and at the lowest possible unit COGS may be substantially different to those currently employed. 
 [*]

  
 1 

 APPENDIX 4 

to 
 ADDENDUM 1 TO
LICENCE AGREEMENT (SUPPLY AGREEMENT FOR DEVICE PROPRIETARY COMPONENTS) 
 STANDBY MANUFACTURING AGREEMENT 

1. Purpose. This Standby Manufacturing Agreement (the “Standby”) sets for the terms and conditions under which Aerogen shall make
available to Dance a copy of all documents, other data, know-how and rights in the Licensed Intellectual Property rights Aerogen owns or controls concerning the Device Proprietary Components, including any updates and revisions thereof, to the
extend Dance deems such necessary to allow Dance, in any of the events listed in Section 3 below, to manufacture, have manufactured, build-in, assemble, market, sell, lease or otherwise modify or dispose of and service the Device Proprietary
Components (the “Information”). 
  

	2.	Default / Information / Remedy 

  

	2.1	Cure or Default. In the event one or more of the triggering conditions set out in Section 3 below occur(s), Aerogen shall have [*] days from the date of Dance’s notice in order to cure such
condition and if Aerogen fails to cure all such conditions within that [*] days (a “Default”), Dance may immediately exercise its standby rights hereunder and Aerogen shall supply the Information. 

 

	2.2	Information to be provided: a fully readable and usable copy of the Information, which will be preserved as Confidential Information under the terms and conditions of the License Agreement and the Addendum. Any
third parties with who Dance requires to contract for the purposes of exercising its rights under this Standby will first be obligated by Dance to enter into customary confidentiality agreements as necessary and sufficient to protect in law the
Licensed Intellectual Property and the Confidential Information, if such third is not already otherwise obligated to Aerogen to protect such Licensed Intellectual Property and Confidential Information. 

 

	2.3	Remedy. In the event that Aerogen remedies the matter giving rise to a triggering condition after the rights under this clause are exercised in whole or in part by Dance, Aerogen shall notify Dance of the change
in circumstances and Aerogen may resume manufacturing and supply to Dance from the date of that notice. Dance will satisfy itself without undue delay that the matter giving rise to a triggering condition has been resolved and will cease manufacture
of the Device Proprietary Components under this Standby. 

 3. Licence / Triggering Events. Aerogen shall provide the Information to
Dance and Dance and its Affiliates may access the Information and will have the non-exclusive, worldwide, royalty-free right to use the Information to use, manufacture, have manufactured, build-in, assemble, market, sell, lease, modify, correct
errors in and service the Device Proprietary Components, and otherwise dispose of the Device Proprietary Components in any other way as Dance sees fit, in the event that (each such event being a “Triggering Event”): 

 

	(a)	with respect to Purchase Orders which are scheduled for delivery over any consecutive three-month period (to the extent that such Purchase Orders do not exceed the limits of Aerogen’s obligation to supply as set
out in Article 2.4.3 (ii), Aerogen does not succeed in delivering a minimum of [*] of the Device Proprietary Components covered by such Purchase Orders within the following time limits (i.e. Aerogen delivers fewer than [*] of such
units within the stated time limits): 

  

	 	(i)	fifteen (15) business days after their respective Scheduled Delivery Dates for “normal lead time orders”. “Normal lead time orders” are Purchase Orders placed for delivery within sixty
(60) days (without any specially agreed upon acceleration or shortening of lead time); and 

  

	 	(ii)	sixty (60) days after their respective delivery dates for all other Purchase Orders, OR 

  
 1 

	(b)	more than [*] of the Device Proprietary Components received by Dance during any consecutive three-month period either (i) fail to meet the Acceptance Criteria established pursuant to Article 2.3.4 of the
Addendum or (ii) are included in shipments rejected pursuant to Article 2.9; OR 

  

	(c)	Aerogen ceases doing business in the ordinary course; OR 

  

	(d)	Aerogen ceases to produce the Device Proprietary Components, unless Dance has consented to such stoppage in writing. 

  

	(e)	Aerogen becomes acquired or controlled by [*] (the “Incumbents”) or any entity under common control of either of the Incumbents, unless such acquisition or change of control includes specific
measures to protect and preserve Dance’s interests under the Licence Agreement and this Addendum. 

 4. Termination. This Standby
is valid for the Exclusive Supply Term of the Addendum. If Dance materially breaches any provision of this Standby, Aerogen may terminate this Standby based on the provisions of Article 10.4 (iv) of the Commercial Supply Agreement. Dance may
terminate this Standby at any time by returning Information to Aerogen. Termination of this Standby shall not affect any licences granted to Dance or to any of its Affiliates under this Standby or the Addendum prior to the date of such termination.

 5. Specific Performance. Aerogen acknowledges that in the event of (i) a Default upon the occurrence of a Triggering Event after which
(ii) Aerogen fails to provide the Information to Dance and/or allow Dance or its Affiliates to access the Information, upon such events Dance shall be entitled to equitable relief for specific performance for Aerogen’s breach of its
obligations hereunder. Such remedy shall be in addition to any other remedies, whether at law or in equity, which may be available to Dance. 

  
 2 

 APPENDIX 5 

to 
 ADDENDUM 1 TO
LICENCE AGREEMENT (SUPPLY AGREEMENT FOR DEVICE PROPRIETARY COMPONENTS) 
 LICENSED TRADEMARKS 

Dance is permitted to use, during the Exclusive Supply Term and any Renewed Exclusive Supply Term and for the purpose of advertising and marketing the Device
Proprietary Components, the following trademarks in accordance with the provisions of Clause 9.10.3 of the Addendum. 
  

									
	Device Mark	 		 		  	
		 	Australia:	 	890181	 		  	
		 	Canada	 	TMA591807	 		  	 

		 	European Union*:	 	2381986	 		  
		 	Israel:	 	152394	 		  
		 	Japan:	 	4567489	 		  
		 	Mexico:	 	742381	 		  
		 	South Korea:	 	543694	 		  
		 	United States:	 	2636980	 		  

  

									
	Word Mark	  		  		  	
		  	Australia:	  	817053	  		  	AEROGEN
		  	Canada:	  	TMA591799	  		  
		  	European Union*:	  	1420413	  		  
		  	Israel:	  	133176	  		  
		  	Japan:	  	4609382	  		  
		  	Mexico:	  	736280	  		  
		  	South Korea:	  	543693	  		  
		  	Switzerland:	  	473332	  		  
		  	United States:	  	2459921	  		  

  
 1

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