Document:

exv10w7

 

Exhibit 10.7

**Text Omitted and Filed Separately

Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 230.406

AMENDED AND RESTATED LICENSE AGREEMENT

     THIS AMENDED AND RESTATED LICENSE AGREEMENT (this “Agreement”) is effective as of the
Effective Date (as defined below), by and between (i) the WALTER REED ARMY INSTITUTE OF RESEARCH
(“Licensor”), as the representative of the United States of America, and (ii) IOMAI CORPORATION
(“Licensee”), a corporation of Delaware, having a principal place of business at 2421 Pennsylvania
Avenue, N.W., Washington, DC 20037-1718.

ARTICLE I

BACKGROUND

1.00 The United States of America is the owner by assignment of the entire right, title and
interest to inventions described and claimed in U.S. Patent Application Serial Number 08/749,164,
issued as U.S. Patent Number 5,910,306 on June 8, 1999, which pertains to “Transdermal Delivery
System for Antigen,” and all foreign-filed patent applications, based on, or related thereto. The
invention described in U.S. Patent No. 5,910,306 is a result of work performed under the terms of
the Cooperative Research and Development Agreement, Department of the Army Control Number
9611-M-C945, U.S. Army Medical Research and Materiel Command Control Number DAMD 17-97-0007 (as
modified by that certain Notice of Modification made effective on October 24, 1997, hereinafter
referred to as the “First MTPPI CRADA” and thereafter superseded, restated and amended in its
entirety by that certain Notice of Modification II made effective on April 6, 2001, hereinafter
referred to as the “Second MTPPI CRADA”) between Licensor and Medical Technology and Practice
Patterns Institute (“MTPPI”), a corporation of the District of Columbia. Such invention was made
by Licensor employees and is a “Subject Invention” as defined in the First MTPPI CRADA.

1.01 Licensor, under the authority of 15 United States Code 3701 et seq., 35 United States Code
Sections 200 — 210, and 37 Code of Federal Regulations, Chapter IV (together with any amendments
and the underlying rules and regulations hereafter promulgated collectively, the “Federal
Technology Transfer Act” or the “FTTA”), entered into a license agreement dated December 15, 1997
(Army Control Number 9802-M-P196) with MTPPI (the “1997 License Agreement”).

1.02 Subject to the FTTA, Licensor, Licensee and MTPPI entered a “Novation Agreement”, effective
April 22, 1999, wherein MTPPI assigned to Licensee all of its right, title and interest in and to
the 1997 License Agreement and Licensee agreed to be bound and perform as required under the 1997
License Agreement, as if the Licensee were the original party thereto. As of the Effective Date,
the 1997 License Agreement shall be terminated, canceled and deemed to be null and void and this
Agreement shall supersede and replace in its entirety the 1997 License Agreement; it being further
agreed and acknowledged that any and all inventions and technology under the 1997 License Agreement
as well as each and every Subject Invention which arose under the First MTPPI CRADA and prior to
the effective date of the Second MTPPI CRADA shall now and hereinafter be subject to and governed
by the terms and conditions of this Agreement.

 

			
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1.03 Licensor and Licensee have commenced certain collaborative work that will be subject to
another Cooperative Research and Development Agreement (the “Iomai CRADA”), which, upon execution,
will be identified and attached as Appendix A to this Agreement. The Iomai CRADA provides for the
collaboration of Licensor and Licensee in research and development on formulation of a
transcutaneous vaccine system and other novel vaccines.

1.04 The parties hereto now desire to amend and restate the terms of Licensee’s exclusive license
to the Licensed Patent Technology, which includes inventions conceived and generated under both the
First MTPPI CRADA and the Iomai CRADA. This exclusive license is desired for the purpose of
developing safe and easily administered transcutaneous delivery mechanisms and products to treat,
prevent and diagnose a variety of human and nonhuman diseases.

1.05 Under the authority of the FTTA, Licensor has custody of inventions described and claimed in,
and the right to issue licenses under the Licensed Patent Technology.

1.06 Licensor desires that the inventions described and claimed in the Licensed Patent Technology
be brought to the Point of Practical Application as soon as practicable, consistent with sound and
reasonable business practices and judgment, and made available to the public, thereby serving the
public interest and broadening the potential supply base for Licensor and other Government
agencies.

     NOW THEREFORE, in consideration of the foregoing, including the above-cited patent licensing
statutes and the mutual promises and obligations hereinafter set forth, Licensor and Licensee,
intending to be lawfully bound, do hereby agree as set forth below.

ARTICLE II

DEFINITIONS

2.0 The terms defined in this Article II shall have the meanings set forth below throughout this
Agreement.

2.01 “Additional Information” shall have the meaning set forth in Section 5.01 hereof.

2.02 “Affiliate(s)” means any corporation, firm, partnership or other entity, including, without
limitation, Xairo, which, whether de jure or de facto, directly or indirectly, owns Licensee, is
owned by Licensee or is under common ownership with Licensee to the extent of at least fifty
percent (50%) of the equity having the power to vote on or direct the affairs of the entity and any
corporation, firm, partnership or other entity actually controlled by Licensee, controlling
Licensee or under common control of Licensee.

2.03 “Board” means the Board of Directors of Licensee.

2.04 “Common Stock” means any common stock of Licensee, par value $0.01 per share.

 

			
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2.05 “Confidential Information” shall mean (i) any proprietary or confidential information or
material in tangible form disclosed in accordance with this Agreement that is marked as
“Confidential,” “Proprietary” or the like at the time it is delivered to the receiving party, or
(ii) proprietary or confidential information disclosed orally hereunder which is identified as
confidential or proprietary when disclosed and such disclosure of confidential information is
confirmed in writing within [**] by the disclosing party. Notwithstanding the foregoing
conditions, the following information shall always be deemed Confidential Information of Licensee
for purposes of this Agreement: (a) all reports and records delivered to Licensor pursuant to
Article V hereof, (b) copies of any sublicenses to be provided to Licensor pursuant to Article VI
hereof, and (c) materials provided to Licensor under Article IX hereof in connection with patent
enforcement. Licensor shall treat Licensee’s Confidential Information as trade secrets or
commercial or financial information that is privileged or confidential within the meaning of 5 USC
Section 552(b)(4) or which would be considered as such if it had been obtained from a non-Federal
party. For purposes of this Agreement, “Confidential Information” shall not include information
that can be established by the receiving party by competent proof that such information:

	 	(a)	 	was already known to the receiving party, other than under an obligation of
confidentiality, at the time of disclosure;
	 
	 	(b)	 	was generally available to the public or otherwise part of the public domain at
the time of its disclosure to the receiving party;
	 
	 	(c)	 	became generally available to the public or otherwise part of the public domain
after its disclosure and other than through any act or omission of the receiving party
in breach of this Agreement; or
	 
	 	(d)	 	was subsequently lawfully disclosed to the receiving party by a person other
than a party hereto.

2.06 Development Plan” means the comprehensive plan and related exhibits, schedules and agreements
prepared and undertaken by Licensee for the sole benefit of Licensor substantially in the form of
Appendix C attached hereto and made a material part hereof, as amended or supplemented from time to
time.

2.07 “Effective Date” means December 15, 1997.

2.08 “EU” means European Union.

2.09 “FDA” means the U.S. Food and Drug Administration.

2.10 “First-tier Sublicensee” shall mean a sublicensee of Licensee.

2.11 “Government” means the federal government of the United States of America.

 

			
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2.12 “Improvement” means any modification of any invention, provided such modification would
infringe one or more valid claims of a patent or pending patent application of such invention.

2.13 “Licensed Field Of Use” means any and all human and nonhuman applications or uses for the
Licensed Patent Technology.

2.14 “Licensed Patent Technology” means all of Licensor’s rights in and to (a) U.S. Patent Nos.
5,910,306 (entitled “Transdermal Delivery System for Antigen”) and 5,980,898 (entitled “Adjuvant
for Transcutaneous Immunization”), including any extensions, reissues and reexaminations thereof,
(b) any and all patents and patent applications identified on Appendix B attached hereto and made a
part hereof, (c) any and all Subject Inventions that arose under the First MTPPI CRADA prior to the
effective date of the Second MTPPI CRADA, and (d) any Improvements of the foregoing. Licensed
Patent Technology shall include any and all divisions, continuations, continuations-in-part, and
substitutions related to the patents and patent applications referenced in subsections (a), (b),
(c) and (d) of this Section 2.14; all foreign patent applications corresponding to the foregoing
applications; and all U.S. and foreign patents issuing on any of the foregoing applications,
including extensions, reissues, and reexaminations.

2.15 “Licensed Product(s)” means any and all products which either fall within the scope of one or
more Valid Claims of the Licensed Patent Technology, or are produced by the practice of, or are
made for use in, a method that is within the scope of one or more Valid Claims of the Licensed
Patent Technology, in the country of manufacture or sale by Licensee or its Affiliate(s), including
Xairo.

2.16 “Licensed Territory” means the world.

2.17 “Licensee Royalties” has the meaning set forth in Section 4.00 hereof.

2.18 “Licensor’s Director” means the Director of Licensor, or if such post is vacant or has been
eliminated, then the representative within or overseeing Licensor who is authorized to approve, and
execute on behalf of Licensor, licenses of Licensor’s intellectual property.

2.19 “Licensor’s Representative” means the Office of Research Technology Application, U.S. Army
Medical Research and Materiel Command, 504 Scott Street, Fort Detrick, Maryland 21702-5012, ATTN:
MCMR-JA.

2.20 “Net Sales” means the amount billed on sales of any Licensed Products by Licensee and its
Affiliates to any Third Party or, in the event of disposal of any Licensed Products other than as
scrap prior to shipment from its place of manufacture or predisposal storage, or other than by
sales, the amount billed on sales for a like quantity and quality of Licensed Products to a Third
Party on or about the time of such disposal, less:

 

			
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     (a) customary trade, quantity or cash discounts and nonaffiliated brokers’ or agents’
commissions actually allowed and taken;

     (b) amounts repaid or credited by reason of rejections or returns; and

     (c) any freight or other transportation costs; insurance charges; import, export, sales taxes,
duties, tariffs, and all sales and excise taxes based on sales or turnover or delivery of Licensed
Products subject to this Agreement.

For purposes of calculating Net Sales for any reporting period, Net Sales shall only include
amounts that have been billed out for at least [**] days. Sales of Licensed Products between or
among Licensee and its Affiliate(s) shall be excluded from the computation of Net Sales except
where such Affiliate(s) are end users, but Net Sales shall include the subsequent final sales to
Third Parties by such Affiliate(s) (if not end users).

In the case of a Licensed Product utilizing multiple active ingredients (which includes adjuvants),
Net Sales will be determined by the formula [**] where:

[**]

As used above, “Net Sales Value” shall be defined as the [**] price billed per [**] for the active
ingredient(s), as the case may be, over a period of [**] prior to [**] of the Licensed Product
utilizing multiple active ingredients. When no current market value is available for an active
ingredient, Licensee shall calculate a [**] value for such component, allocating the same
proportion of [**] as are then allocated to [**]. If, however, the parties determine that the
above [**] value does not adequately and fairly reflect the contribution of each component in a
particular Licensed Product, then the parties shall negotiate a modification of the formula for the
determination of the Net Sales of the Licensed Product utilizing multiple active ingredients;
provided, however, that if the parties cannot agree upon a revised formula within [**] days after
such negotiations commence, then Net Sales shall be determined by multiplying (i) the Net Sales of
the Licensed Product utilizing multiple active ingredients by (ii) [**], where [**] in such
Licensed Product.

2.21 “Person” means any individual, partnership (whether general or limited), limited liability
company, corporation, trust, estate, association, nominee, firm, organization or other entity.

2.22 “Point of Practical Application” means to manufacture, practice, or to operate inventions,
described and claimed in the Licensed Patent Technology, under such conditions as to establish that
the inventions are being utilized and that their benefits are, to the extent permitted by law or
Government regulations, available to the public on reasonable terms within seven (7) years of the
Signature Date, and to continue during the term of this Agreement to make the benefits of the
inventions reasonably accessible to the public, consistent with sound and reasonable business
practices and judgment. If Licensee believes that it will be unable to have such product available
to the public within such time frame, it shall give notice to Licensor, specifying the reasons
therefor. Licensee may amend the time period at any time with the

 

			
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written consent by Licensor. Licensor shall not unreasonably withhold approval of any request by
Licensee to extend the time period if such request is supported by a reasonable showing by Licensee
of diligence in its performance to commercialize the Licensed Patent Technology, taking into
account of any change in circumstances, scientific developments, or other factors considered by the
parties relevant for adopting new time frame.

2.23 “PTO” means the U.S. Patent and Trademark Office.

2.24 “Regulatory Authority” shall have the meaning set forth in Section 4.05 hereof.

2.25 “Reports” shall have the meaning set forth in Section 5.01 hereof.

2.26 “Shares” means (i) Six Hundred Fifty Thousand (650,000) shares of Common Stock issued and
delivered to and held of record by the Voting Trustee for the sole and exclusive economic benefit
of Licensor pursuant to Section 13.00 hereof, (ii) any additional shares of Common Stock issued and
delivered to and held of record by the Voting Trustee for the sole and exclusive economic benefit
of Licensor pursuant to Section 13.02 hereof, and (iii) any securities issued with respect to such
shares of Common Stock from time to time.

2.27 “Signature Date” means the earlier of (1) the date that this Agreement is last executed; or
(2) the date that the Iomai CRADA, attached hereto as Appendix A, is last executed.

2.28 “Third Party” means any Person other than Licensee, its Affiliates or Licensor.

2.29 “termination” and cognate words, such as “term” and “terminate,” shall have the meanings set
forth in Section 11.03 hereof.

2.30 “Valid Claim” means a claim of an issued and unexpired patent included within the Licensed
Patent Technology which either has not been (1) held unenforceable or invalid by a court or other
governmental agency of competent jurisdiction, or (2) admitted to be invalid or unenforceable
through reissue, disclaimer or otherwise.

2.31 “Voting Trust and Escrow Agreement” has the meaning set forth in Section 13.01 hereof.

2.32 “Voting Trustee” means MDBio, a Maryland non-profit organization, as trustee for and on behalf
of Licensor.

2.33 “Xairo” means Xairo Corporation, Ltd., which is Licensee’s joint venture with Elan
Corporation, plc.

2.34 “Xairo License Agreement” means that certain License Agreement dated October 21, 1998 by and
between Licensee and Xairo, as amended from time to time, subject to this Agreement.

 

			
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ARTICLE III

LICENSE GRANT

3.00 The Licensor grants to the Licensee an exclusive license under the Licensed Patent Technology,
with the right to grant and authorize sublicenses, to make, have made, import, use, offer for sale
and sell Licensed Products throughout the Licensed Territory in the Licensed Field Of Use for the
term of this Agreement. Licensee shall have the right to extend this license to any Affiliate(s)
of its choice subject to Licensor’s approval that each such extension properly references this
Agreement, including those rights retained by Licensor hereunder, and is consistent with the
relevant provisions hereof that apply to sublicenses, such approval to be provided by Licensor
within [**] days of Licensee’s notification of Licensor’s Representative. The parties acknowledge
that the approval authority for Licensor shall be the [**]. If Licensor fails to notify Licensee
of any objections prior to expiration of such [**] day period, then such sublicense shall be deemed
to have been approved by Licensor without any further action on Licensee’s part. Licensor
acknowledges and agrees that Licensee has previously notified Licensor of, and Licensor has
approved, the extension of this license to Xairo under the Xairo License Agreement in effect as of
the Signature Date.

3.01 No right or license is granted or implied to Licensee or any person claiming through Licensee
under any patent or patent application other than that specifically included herein as the Licensed
Patent Technology.

ARTICLE IV

ROYALTIES AND PAYMENT OF OTHER INCOME

4.00 Licensee shall make the payments under 4.00(a), (b) and (c) to Licensor (collectively
hereinafter the “Licensee Royalties”) described as follows:

     (a) [**] of all royalty payments made to Licensee pursuant to the Xairo License Agreement on
“Net Sales” (as such term is defined in the Xairo License Agreement).

     (b) [**] of revenues actually received by Licensee and its Affiliates (other than Xairo)
directly under sublicenses of the Licensed Patent Technology (other than the Xairo License
Agreement and any sublicenses granted thereunder). [**]

     (c) [**] of Net Sales of all Licensed Products by Licensee and its Affiliate(s) (other than
Xairo). The Licensee Royalty under this Section 4.00(c) shall be applicable where the Licensed
Product is sold in a country in which there is a Valid Claim. When a Licensed Product is sold in a
country in which there is no Valid Claim, then the Licensee Royalty under this Section 4.00(c)
shall be reduced by [**].

 

			
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4.01 No Licensee Royalty shall be payable to Licensor under Section 4.00 hereof with respect to
sales of Licensed Products among Licensee and its Affiliate(s) or sublicensees. In addition, no
Licensee Royalty shall be payable to Licensor under this Article IV, in either case solely, with
respect to [**].

4.02 Licensee Royalties shall be payable on a country-by-country and Licensed Product-by-Licensed
Product basis until the expiration of the last-to-expire issued Valid Claim covering such Licensed
Product in such country (or if no such patent has issued in such country in which an application is
pending, until the sixth anniversary of the first commercial sale of a Licensed Product in such
country).

4.03 Payments to Licensor pursuant Sections 4.00(b) hereof shall be reduced by [**] for licenses of
other technologies utilized in Licensed Products; provided, however, that the reduction to Licensor
would not be greater than [**] of the Licensee Royalty that Licensor would otherwise be entitled to
receive under Section 4.00(b) hereof.

4.04 If it is determined by a competent court, or by mutual agreement of the parties hereto, that
Licensee must avoid infringement by acquiring a license from another party in the course of
practicing the Licensed Patent Technology, then Licensee may offset [**].

4.05 In consideration of the licenses granted to Licensee by Licensor hereunder, Licensee shall
make the following milestone payments to Licensor upon the [**] after the Signature Date in [**]
any other governmental authority with similar regulatory powers (the “Regulatory Authority”) [**]:

     (a) Licensee shall pay to Licensor the sum of [**] within [**] days of the successful
conclusion [**] by Licensee, its Affiliates or any sublicensee of each such Licensed Product. For
purposes of this Section 4.05(a), successful conclusion [**] shall mean [**].

     (b) Licensee shall pay to Licensor the sum of [**] within [**] days of the successful
conclusion of [**] by Licensee, its Affiliates or any sublicensee of each such Licensed Product.
For purposes of this Section 4.05(b), successful conclusion of [**] shall mean [**].

     (c) Licensee shall pay to Licensor the sum of [**] upon successful conclusion of [**] by
Licensee, its Affiliates or any sublicensee of each such Licensed Product. The payment [**] shall
be made by Licensee to Licensor in [**] equal installments of [**] each, with the first payment due
within [**] days of such [**] and [**]. For purposes of this Section 4.05(c), successful
conclusion of [**] shall mean [**].

     (d) Licensee shall pay to Licensor the sum of [**] upon [**], its Affiliates or any
sublicensee [**] for each such Licensed Product. The payment of [**] shall be made by Licensee to
Licensor in [**] equal installments of [**] each, with the first payment due within [**] and [**].

 

			
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4.06 Payments under this Article IV shall be made in United States dollars and paid by check to
“DFAS ROCK ISLAND.” On a statement accompanying the check, it should be noted that the payment is
for royalties or licensing fees, and the patent number(s) should be listed. In the case where
payments of Licensee Royalties are made on more than one licensed patent, Licensee shall submit an
estimated allocation of payment amongst the relevant licensed patents. All checks for payments
under this Article IV should be mailed to DFAS — ROCK ISLAND OPLOC, ATTN: DFAS-RI-FD, Building 68,
Rock Island, IL 61299-8300, with a copy to the Licensor’s Representative. All checks and
bank drafts shall be drawn on United States banks.

4.07 For purposes of converting currencies other than U.S. Dollars to U.S. Dollars, Licensee shall
use the average of the current exchange rate as reported in The Wall Street Journal under the
column headed “Currency Trading” and subtitled “Exchange Rates” for the last business day of each
month in which Licensee Royalties were earned for the applicable reporting period; provided,
however, that if such rate is not so published, then such conversion rate shall be the average of
the selling rate for such currency, as published by a leading New York City bank chosen by Licensee
and reasonably acceptable to Licensor, on the last business of each month in which Licensee
Royalties were earned for the applicable reporting period. Any and all loss of exchange, value,
taxes or other expenses incurred in the transfer or conversion of other currency to U.S. Dollars
shall be paid entirely by Licensee.

4.08 In the event that Licensee is unable, as a result of any legal or government restrictions, to
remit Licensee Royalties or any other payments due hereunder from any country in the Licensed
Territory in respect of sales in that country, Licensee shall deposit the appropriate Licensee
Royalties and such other payments in an account in a bank in such country agreed to by Licensor,
such agreement not to be unreasonably withheld. For as long as such restriction applies, Licensee
shall be relieved of any further obligations to Licensor in respect of such Licensee Royalties and
such other payments, except that of reporting to Licensor under Article V concerning the amount of
Licensee Royalties and such other payments payable and so deposited. Subject to applicable laws
and regulations, Licensee shall use commercially reasonable efforts to cooperate with Licensor in
Licensor’s efforts to collect such Licensee Royalties and such other payments from such bank
account.

4.09 Except as otherwise provided for hereunder, Licensee shall pay Licensee Royalties accrued
according to Section 4.00 hereof and any other outstanding payments then due and payable hereunder,
not later than [**]. Licensee shall submit with its payment the written report required in Section
5.02 hereof. If no Licensee Royalties are due, the report shall so state. Sales shall be
considered to be made, for purposes of this Section 4.09, when billed out, except that upon any
termination of this Agreement, all shipments made on or prior thereto shall be considered as sold
(and therefore subject to royalty). Licensee Royalties paid on sales of Licensed Products that are
not accepted by the customer shall be credited to Licensee.

4.10 Licensee shall pay within [**] from any termination of this Agreement Licensee Royalties and
any other amounts due Licensor hereunder accrued or accruable for payment at the time of any such
termination. In the event of a termination of this Agreement, Licensee shall

 

			
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also make payment of any and all amounts due and owing in accordance with and subject to the terms
and conditions provided for under the Development Plan

4.11 Licensee Royalties and any other payments due hereunder and under the Development Plan not
received by Licensor by the due dates shall be subject to interest charges computed at [**] per
annum unless a higher rate of interest is in effect under the Development Plan.

4.12 After the execution and delivery of this Agreement and the Iomai CRADA by all requisite
parties, Licensee shall also pay to Licensor an amount of one hundred fifty thousand dollars
($150,000), payable in four (4) installments, with (i) the first installment of $37,500 payable
within five (5) business days of the later of (a) the execution of this Agreement or (b) the Iomai
CRADA, (ii) the second installment of $62,500 payable upon the first anniversary of the payment of
such first installment, (iii) third installment of $25,000 payable upon the second anniversary of
the payment of such first installment, and (iv) the fourth installment of $25,000 payable upon the
third anniversary of the payment of such first installment.

4.13 Licensee shall pay to Licensor an annual minimum payment of fifteen thousand dollars ($15,000)
for the term of this Agreement, with the first such payment due on the first anniversary of the
Signature Date. This annual minimum payment will be a non-recoverable advance against any future
Licensee Royalty or milestone payment obligation due and owing to Licensor under Sections 4.00 and
4.05 of this Agreement, provided, it may be credited against any such payments made by Licensee
under this Article IV during the succeeding twelve (12)-month period.

ARTICLE V

REPORTS AND RECORDS

5.00 Licensee agrees to keep records showing the gross sales, Net Sales or other disposition of
Licensed Products sold or otherwise disposed of under the license appropriate to determine the
amount of Licensee Royalties and other payments due Licensor hereunder. Such records, including,
without limitation, those of its Affiliates, shall be retained for a period of [**] following the
end of the calendar year to which such records pertain, and shall be treated and maintained as
Confidential Information of Licensee. Such records should be in sufficient detail to enable the
Licensee Royalties and any other amounts payable hereunder by Licensee to be determined, and
Licensee further agrees to afford access to Licensor, subject to the conditions set forth below in
this Section 5.00, to examine those books and records of Licensee and, where appropriate, its
Affiliates as may be necessary to make such determination. Upon [**], Licensee shall make such
records available for examination during normal business hours for the sole purpose of verifying
the accuracy of Licensee’s payments and compliance with this Agreement for any period within the
most recently completed [**]. Such examination shall be made at the expense of the Licensor by an
auditor or certified public accountant appointed by Licensor [**]. Such auditor or certified
public accountant shall enter into a reasonable confidentiality agreement with Licensee and shall
report to Licensor [**]. Such access shall be permitted during

 

			
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Licensee’s normal business hours during the term of this Agreement and for [**] after the
expiration or termination of this Agreement. Licensee shall be provided with a copy of any such
report at the same time that it is provided to Licensor. If Licensee disputes the findings of such
report, then Licensee shall notify Licensor in writing within [**] days of Licensee’s receipt of
such report. Licensee then shall, at its own expense, appoint within [**] of such notice a
certified public accountant [**] to perform the same audit that was performed by Licensor’s
appointed auditor or certified public accountant. Licensee’s appointed certified public accountant
shall, within [**] of its engagement by Licensee, complete such audit and issue its report to the
parties hereto [**]. In the event no resolution is reached thereafter by mutual agreement, then
the parties agree to adhere to the rules and procedures established under the Administrative
Dispute Resolution Act (5 USC Section 571) to resolve any such dispute.

5.01 Licensee shall provide written annual progress reports (the “Reports”) by [**] during the term
of this Agreement, beginning [**], detailing its efforts, and the efforts of all Affiliate(s) and
sublicensees, to bring the inventions licensed under this Agreement to the Point of Practical
Application, together with the information contemplated and required under the Development Plan
(the “Additional Information”). The Reports shall contain reasonably sufficient information to
substantiate that Licensee’s Development Plan is being executed. Except for the Additional
Information, no further information shall be included [**].

5.02 Concurrently with each payment of amounts due Licensor under this Agreement as required in
Section 4.09 hereof, Licensee shall submit a written report setting forth for the preceding [**]
reporting period the calculation of the amounts due to Licensor under Article IV hereof and under
the Development Plan (if any). If no Licensee Royalties or other payments are due Licensor for any
report period, the report shall so state.

ARTICLE VI

SUBLICENSING RIGHTS

6.0 Licensee may grant sublicenses under the Licensed Patent Technology during the term of this
Agreement to make, have made, import, use, offer for sale and sell Licensed Products in the
Licensed Territory. Any sublicense authorized and granted hereunder to a First-tier Sublicensee
shall include [**]. Each and every First-Tier Sublicensee agreement shall be made subject to
Licensor’s approval (as required by 37 CFR 404.5(4)), and each and every sublicense shall by proper
reference be made subject and subordinate to this Agreement, including those rights retained by
Licensor hereunder, consistent with the relevant provisions hereof that apply to sublicenses, which
approval shall be provided by Licensor within [**] of Licensee’s notification of Licensor’s
Representative. The parties acknowledge that the approval authority for Licensor shall be the
[**]. If Licensor fails to notify Licensee of any objections prior to expiration of such [**]
period, then such sublicense shall be deemed to have been approved by Licensor without any further
action on Licensee’s part. Any right or duty owed to Licensee or to a First-tier Sublicensee of
the Licensee hereunder may be further granted to a sublicensee at any tier,

 

			
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Page 11 of 24

 

changing the names of the parties as appropriate. A copy of any and all sublicenses shall be
furnished to Licensor’s Representative promptly after its execution.

6.01 Modification or termination under Section 11.02 hereof of any of the provisions this Agreement
shall terminate all sublicenses, provided that any First-Tier Sublicensee may elect to continue its
sublicense by advising Licensor in writing, within [**] days of the First-Tier Sublicensee’s
receipt of written notice of such termination, of its election, and of its agreement to assume in
respect to Licensor all the obligations (including obligations for payment) contained in its
sublicensing agreement with Licensee. Any sublicense granted by Licensee shall contain
corresponding provisions to those of this Section 6.02 respecting conversion and termination and
the conditions of continuance of sublicenses.

ARTICLE VII

LICENSEE PERFORMANCE

7.00 Licensee shall both perform as required hereunder and under the Development Plan and expend
reasonable efforts and resources to carry out the development and marketing of the inventions,
described and claimed in the Licensed Patent Technology.

7.01 After bringing the inventions, described and claimed in the Licensed Patent Technology, to the
Point of Practical Application in the Licensed Territory, Licensee agrees to keep Licensed Products
available to the public during the term of this Agreement. Licensee shall promptly report
discontinuance of its making the benefits of the inventions reasonably accessible to the public.

7.02 Failure to comply with the terms of this Article VII shall be cause for modification or
termination of this Agreement in accordance with the provisions of Article XI below.

ARTICLE VIII

MARKINGS

8.00 Licensee and its Affiliates shall identify, within a reasonable period of time, Licensed
Products with the marking licensed Under U.S. Patent (number) or “U.S. Patent Pending” as permitted
or required by statute or identify product as patented in any promotional literature used.

8.01 The name of the GOVERMENT employee inventor(s), the name of the agency or department of the
Government or any adaptation of the above shall not be used in any promotional activity without
prior written approval from Licensor.

 

			
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ARTICLE IX

PATENT ENFORCEMENT AND PROSECUTION

9.00 Licensor and Licensee shall notify each other promptly in writing of any infringement of the
Licensed Patent Technology that becomes known to either of them. Licensee shall notify Licensor
promptly of any action taken in accordance with this Article IX to prevent or eliminate such
infringement.

9.01 Licensee is empowered pursuant to this Agreement and the provisions of Chapter 29 of Title 19,
United States Code, to (a) bring suit in its own name, at its own expense, and on its own behalf
for infringement of presumably Valid Claims in the Licensed Patent Technology hereunder, to enjoin
infringement and to collect for its use damages, profits and awards of whatever nature recoverable
for such infringement; and (b) subject to approval by Licensor, settle any claim or suit for
infringement of the Licensed Patent Technology; provided, however, that Licensor and the
appropriate Government authorities shall have a continuing right to intervene in such suit.
Licensee shall take no action to compel the Government either to initiate or to join in any such
suit for patent infringement unless such action is ultimately necessary to avoid a dismissal of
such suit by Licensee.

9.02 Should the Government be made a party to any such suit by the motion or any other action of
Licensee, Licensee shall reimburse the Government for any costs, expenses or fees which the
Government incurs as a result of such motion or other action, including any and all costs incurred
by the Government in justifiably opposing any such joinder motion. Upon Licensee’s payment of all
costs incurred by the Government as a result of Licensee’s joinder motion or other action, these
actions by Licensee will not be considered a default in the performance of any material obligation
under this Agreement. In any event, Licensee agrees to keep Licensor reasonably apprised of the
status and progress of any such litigation. Before Licensee commences an infringement action,
Licensee shall notify Licensor and give careful consideration to the views of Licensor and to any
potential effects of the litigation on the public health in deciding whether to sue.

9.03 In any action commenced under Sections 9.01 or 9.06 hereof, the expenses including all costs,
attorney fees and disbursements, shall be paid by Licensee. Up to [**] of such expenses may be
credited against the amounts payable to Licensor under this Agreement in the country in which such
a suit is filed. In the event that [**] of such expenses exceed the amounts withheld by Licensee
in any calendar year, the expenses in excess may be carried over as a credit on the same basis into
succeeding calendar years. Any recovery by Licensee, through court, judgment or settlement, first
shall be applied [**].

9 04 Licensor shall cooperate fully with Licensee in connection with any action under Section
9.01 and Section 9.06. Licensor agrees to promptly provide access to all necessary documents and to
render reasonable assistance in response to a request by Licensee.

 

			
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Page 13 of 24

 

9.05 Licensor shall have the right to sue for infringement of the Licensed Patent Technology in the
event that Licensee elects not to do so, after having received written notice from Licensee.

9.06 In the event that a declaratory judgment action alleging invalidity or infringement of any
claim of the Licensed Patent Technology shall be brought against Licensee or Licensor or raised by
way of counterclaim or affirmative defense in an infringement suit brought by Licensee, Licensee is
empowered pursuant to this Agreement and the provisions of Chapter 29 of Title 35, United States
Code, or other statutes to: (1) defend the suit in its own name, at its own expense, and on its own
behalf for presumably valid claims in the Licensed Patent Technology hereunder; (2) in any such
suit, ultimately to enjoin infringement and to collect for its use, damages, profits and awards of
whatever nature recoverable for such infringement; and (3) subject to approval by Licensor, settle
any claim or suit for declaratory infringement involving the Licensed Patent Technology; provided,
however, that Licensor and appropriate Government authorities shall have a continuing right to
intervene in such suit. Licensee shall take no action to compel the Government either to join in
any such declaratory judgment action unless such action is ultimately necessary to avoid prejudice
to Licensee. Should the Government be made a party to any such suit by motion or any other action
of Licensee, Licensee shall reimburse the Government for [**]. If Licensee elects not to defend
against such declaratory judgment action, Licensor, at its option, may do so at its own expense. In
any event, Licensee agrees to keep Licensor promptly apprised of the status and progress of any
such litigation.

9.07 From and after the Signature Date, Licensee shall take responsibility for the preparation,
filing, prosecution and maintenance of any and all patent applications and patents included in the
Licensed Patent Technology within the Licensed Field Of Use. Licensee agrees to retain a patent
law firm and/or patent agents reasonably satisfactory to Licensor to handle all preparation,
filing, prosecution and maintenance of the patent applications and patents within the Licensed
Patent Technology. Licensee and its counsel shall furnish to Licensor copies of [**]. Licensee
shall pay all fees and expenses incurred after the Signature Date for the preparation, filing,
prosecution and maintenance of the Licensed Patent Technology that include one or more claims
within the Licensed Field Of Use. Licensor and Licensee shall cooperate fully in the preparation,
filing, prosecution and maintenance of the Licensed Patent Technology and of all patents and patent
applications licensed to Licensee hereunder, executing all papers and instruments, including,
without limitation, appropriate powers of attorney (which power shall also be granted to and
include the intellectual property counsel designated by Licensor), or requiring members of Licensor
to execute such papers and instruments so as to enable Licensee to apply for, to prosecute and to
maintain the Licensed Patent Technology in any nation, country or comparable political
jurisdiction. Each party shall provide to the other prompt notice as to all matters which come to
its attention and which may affect the preparation, filing, prosecution or maintenance of any of
the Licensed Patent Technology.

ARTICLE X

RESERVATION OF RIGHTS

 

			
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10.00 The license granted in Article III of this Agreement shall be subject to the irrevocable,
nonexclusive, nontransferable, royalty-free right of the Government to practice the inventions,
described and claimed in the Licensed Patent Technology, on behalf of the United States and on
behalf of any foreign government or international organization pursuant to any existing or future
treaty or agreement with the United States, for research and other Government purposes, either
alone or with one or more third parties, provided that any third party shall have involvement only
to assist the Government for the limited purpose set forth above. In the exercise of such license,
the Government shall not publicly disclose trade secrets or commercial or financial information
that is privileged or confidential within the meaning of 5 U.S.C. 552(b)(4) or which would be
considered as such if it had been obtained by a non-Federal party.

10.01 In exceptional circumstances, Licensor, pursuant to 15 U.S.C. 3710a(b)(1)(B), reserves the
right to require Licensee to grant sublicenses to responsible applicants on reasonable terms when
necessary to fulfill public health or safety needs. The exercise of such rights by Licensor shall
only be in exceptional circumstances and only if Licensor determines (i) the action is necessary to
meet health or safety needs that are not reasonably satisfied by Licensee; (ii) the action is
necessary to meet requirements for public use specified by Federal regulations, and such
requirements are not reasonably satisfied by Licensee; or (iii) Licensee has failed with an
agreement containing provisions described in 15 U.S.C. 3710a(c)(4)(B).

10.02 Any decision by Licensor to require such a sublicense may be appealed by Licensee under the
procedures set forth in Section 14.04 hereof.

ARTICLE XI

TERM AND TERMINATION

11.00 The term of this Agreement is deemed to begin on the Effective Date, and, unless sooner
terminated in accordance with this Article XI, shall run until the expiration of the last to expire
patent within the Licensed Patent Technology, including any extensions granted under the Patent
Term Restoration Act or any other statute.

11.01 The Licensor may modify or terminate this Agreement or the license, in whole or in part, if:

     (a) Licensee or any of its sublicensees fails to perform and meet the obligations set forth in
Article VII above, and Licensee cannot otherwise demonstrate to Licensor’s reasonable satisfaction
that Licensee has taken, or can be expected to take within a reasonable time, effective steps to so
perform and meet the obligations set forth in Article VII above;

     (b) The Licensor determines that such action is necessary to meet requirements for public use
specified by Federal regulations issued after the date of this Agreement and such requirements are
not reasonably satisfied by the Licensee;

 

			
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     (c) The Licensee has willfully made a false statement of, or willfully omitted, a material
fact in the license application, the Development Plan, or in any report provided or to be provided
as required by this Agreement or in the Development Plan;

     (d) The Licensee commits (i) a “Substantial Violation” or “Event of Default” after the
“Original Issue Date” (as such terms are defined in the Note attached as Exhibit C-4 to the
Development Plan for so long as the Note is in effect) or (ii) a substantial breach of a covenant
or agreement contained in this Agreement or in the Development Plan;

     (e) The Licensee fails to make a payment or fails to provide any report required or to be
required by this Agreement or by the Development Plan, which Licensor deems material; or

     (f) The Licensee is adjudged a bankrupt or has its assets placed in the hands of a receiver or
makes any assignment or other accommodation for the benefit or creditors.

11.02 In making its determination to modify or terminate this Agreement, Licensor shall take into
account the normal course of such commercial development programs conducted with sound and
reasonable business practices and judgment and the annual Reports and Additional Information
submitted by Licensee under Section 5.01 hereof. Prior to invoking its right to modify or
terminate this Agreement, other than by mutual agreement, Licensor shall furnish Licensee and any
Affiliate(s) and sublicensees of record a written notice of intention to modify or terminate, and
the Licensee and any notified Affiliate(s) and sublicensees shall be allowed [**] after
the date of such notice to remedy the breach or default of any covenant or agreement of this
Agreement or to show cause why this Agreement should not be modified or terminated. If Licensee
fails to alleviate Licensor’s concerns set forth in Section 11.01 hereof or fails to take
corrective action to Licensor’s satisfaction, Licensor may terminate this Agreement.
”

11.03 The word “termination” and cognate words, such as “term” and “terminate,” used in this
Article XI and elsewhere in this Agreement are to be read, except where the contrary is
specifically indicated, as omitting from their effect the following rights and obligations, all of
which survive any termination to the degree necessary to permit their fulfillment or discharge:

     (a) Licensee’s obligation to supply a terminal report regarding payments due to Licensor under
this Agreement and under the Development Plan in the same form as specified in Section 5.02 of this
Agreement;

     (b) Licensor’s right to receive or recover and Licensee’s obligation to pay Licensee Royalties
and any other amounts due Licensor hereunder and under the Development Plan accrued or accruable
for payment at the time of any termination as specified in Section 4.10 of this Agreement;

     (c) Licensee’s obligation to maintain records and Licensor’s right to conduct a final audit as
provided in Article V of this Agreement;

 

			
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     (d) Licenses, releases, and agreements of non-assertion running in favor of customers or
transferees of Licensee in respect to Licensed Products sold or transferred by Licensee prior to
any termination and on which royalties shall have been paid as provided in Article IV of this
Agreement; and

     (e) Any cause of action or claim of Licensor accrued or to accrue, because of any breach or
default by Licensee under this Agreement or the Development Plan.

11.04 In the event of termination of this Agreement or conversion of the license granted hereunder,
any First-Tier Sublicensee agreement of record granted pursuant to this Agreement may, at such
sublicensee’s option, be converted to a license directly between sublicensee and Licensor in
accordance with the provisions of Article VI herein.

11.05 Licensee will have the right to terminate this Agreement and/or licenses as to any country or
territory within the Licensed Territory, with or without cause, at any time effective [**] after
written notice to that effect.

11.06 In the event of any termination of this Agreement under this Article XI (other than upon
expiration of the term specified in Section 11.00 hereof), Licensee, its Affiliate(s) and
sublicensees shall be permitted, for a period of one hundred eighty (180) days, to complete the
sale of its existing inventory of Licensed Products and Licensor shall be entitled to the payment
of Licensee Royalties and any other amounts due Licensor hereunder as provided in Section 4.10
hereof with respect thereto.

11.07 Within [**] days of receipt of written notice of Licensor’s unilateral decision to
modify or terminate this Agreement or the license pursuant to Section 11.02 hereof, Licensee may
appeal the decision in accordance with the provisions of Section 14.04 hereof.

ARTICLE XII

ACKNOWLEDGEMENTS AND REPRESENTATIONS

12.00 Licensor acknowledges that: (i) it is owner of an undivided right of title and interest in
the Licensed Patent Technology; (ii) it has the right to grant the rights and licenses granted
herein, and the Licensed Patent Technology is free and clear of any lien, encumbrance, security
interest or restriction on license; (iii) it has not previously granted, and will not grant during
the term of this Agreement any right, license, or interest in and to the Licensed Patent
Technology, or any portion thereof, inconsistent with the license granted to Licensee herein; (iv)
to the best of its knowledge, no other intellectual property owned by Licensor is necessary to
practice the Licensed Patent Technology; and (v) there are no threatened or pending actions, suits,
investigation, claims or proceedings in any way relating to the Licensed Patent Technology, and
(vi) MTTPI has (A) waived and released in favor of Licensor all of MTPPI’s rights, title and
interest in and to any and all Subject Inventions which arose under the First MTPPI CRADA prior to
the effective date of the Second MTPPI CRADA, and (B) assigned to Licensor whatever

 

			
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right, title and interest MTPPI has in any joint Subject Invention which arose under the First
MTPPI CRADA prior to the effective date of the Second MTPPI CRADA.

12.01 Licensee represents and warrants that: (i) it is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware; and (ii) the execution,
delivery and performance of this Agreement have been duly authorized by all necessary corporate
action on the part of Licensee.

ARTICLE XIII

DEVELOPMENT PLAN

13.00 As partial consideration to Licensor for executing and delivering this Agreement, Licensee
shall issue and deliver the Shares to the Voting Trustee in its capacity as the trustee for the
sole and exclusive economic benefit of Licensor, which Shares shall be evidenced and represented by
a stock certificate held of record by the Voting Trustee in accordance with the Voting Trust and
Escrow Agreement.

13.01 Concurrent with the execution of this Agreement, the Development Plan, including, without
limitation, a Voting Trust and Escrow Agreement (the “Voting Trust and Escrow Agreement”) will be
completed and signed by the Licensee and Voting Trustee (where appropriate) and then delivered by
the Licensee to induce the Licensor to enter into this Agreement and to accept the Shares on the
terms and conditions more particularly described and set forth herein and in the Development Plan.

13.02 The Licensee shall issue and deliver an additional ninety-seven thousand five hundred
(97,500) shares of Common Stock            to the Voting Trustee in its capacity as the trustee for
the sole and exclusive economic benefit of Licensor, in the event Licensee fails to renegotiate and
amend the terms of the Xairo License Agreement within twelve (12) months from the Signature Date,
such that as amended (i) the defined term “Infectious Disease” should thereafter exclude influenza
and (ii) the grant by Licensee to Xairo of an exclusive license of the “Iomai Intellectual
Property” within the “Field” is for all purposes restricted and limited solely to the prevention of
“Infectious Diseases” (as each such term is defined in the Xairo License Agreement) in humans.

ARTICLE XIV

GENERAL

14.00 This Agreement shall not be transferred or assigned by Licensee to any party other than to a
successor or assignee of the entire business interest of Licensee without the approval of
Licensor’s Representative.

14.01 This Agreement does not confer any immunity from or defenses under the antitrust laws, the
laws and regulations pertaining to or administered by the FDA, or the export laws nor does it

 

			
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confer immunity from a charge of patent misuse. Furthermore, Licensee’s, Affiliate(s)’, or
sublicensee’s acquisition and exercise of rights hereunder are not immunized from the operation of
any state or Federal law by reason of the source of the grant. This Agreement does not constitute
an endorsement by Licensor of any Licensed Products and Licensee shall not state or imply in any
medium that such endorsement exists as the result of this Agreement.

14.02 Licensor makes no warranty, express or implied, or any representations regarding the
patentability, validity or scope of the Licensed Patent Technology or that Licensed Patent
Technology may be exploited without infringing patents of third parties.

14.03 Licensee, its Affiliate(s) and sublicensees agree that Licensed Products will be manufactured
substantially in the United States and its territories in compliance with 35 United States Code
209(b); however, waivers to this provision will not be unreasonably withheld.

14.04 The decision of Licensor’s Representative on any requirement, dispute, interpretation,
modification, or termination of this Agreement shall be reduced to writing and a copy mailed or
otherwise furnished to Licensee. Such decision shall be final, provided that Licensee may, within
thirty (30) days of receiving notice of such decision, submit a written appeal through Licensor’s
Representative and the Intellectual Property Counsel of the Army to the Judge Advocate General,
Department of the Army, Washington, DC 20310-2207, which appeal shall set forth in detail the
decision being appealed and the basis of the appeal and may include appropriate supporting
materials. The decision rendered through such appeal shall be the final agency decision. Licensee
may thereafter exercise any and all administrative and judicial remedies that may be available.
Implementation of such decision shall be stayed pending a final resolution of such appeal. Pending
such final resolution, Licensee shall proceed diligently with the performance of its obligations
under this Agreement.

14.05 Except as expressly provided herein, the parties agree that, for the term of this Agreement
and for [**] thereafter, the receiving party shall keep completely confidential and shall
not publish or otherwise disclose and shall not use for any purpose except for the purposes
contemplated by this Agreement any Confidential Information furnished to it by the disclosing party
hereto pursuant to this Agreement. Licensee may use or disclose information disclosed to it by
Licensor to the extent such disclosure is reasonably necessary, in filing or prosecuting patent
applications, prosecuting or defending litigation, complying with applicable governmental laws and
regulations, including, without limitation, federal and state securities laws, or otherwise
submitting information to tax or governmental authorities, conducting clinical trials, acquiring
potential investors, or making a permitted sublicense or otherwise exercising its rights hereunder,
[**]. Licensee agrees to keep records of confidentiality agreements between itself and
third parties in accordance with the treatment of Confidential Information given in Section 5.00
hereof. Licensor may disclose Licensee’s Confidential Information to governmental authorities as
may required by law so long as such Confidential Information is treated as privileged or
confidential within the meaning of 5 USC Section 552(b)(4). The parties understand that from time
to time, Licensor may desire to publish or publicly disclose certain summary information regarding
this Agreement. In such an event, Licensor shall provide Licensee with a copy of any proposed
publication at least [**] days in advance for its review and comment. Following

 

			
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Licensee’s review and due consideration of Licensee’s comments, Licensor shall be free to publish
such information; provided, however, that Licensee shall have the right to delete from any such
submission any of Licensee’s Confidential Information.

14.06 The parties shall notify each other of any changes in name, address, or business status, and
any notice or report required to be given under the provisions of this Agreement shall be
considered duly given if mailed by first class mail, postage prepaid or by an express/overnight
delivery service provided by a commercial carrier, and addressed as follows:

	 	 	 
	(a) If to Licensor:

	 	Staff Judge Advocate
	 

	 	U.S. Army Medical Research and
	 

	 	    Materiel Command
	 

	 	504 Scott Street
	 

	 	Fort Detrick, Maryland 21702-5012
	 

	 	ATTN: MCMR-JA
	 
	 	 
	(b) If to Licensee:

	 	Iomai Corporation
	 

	 	2421 Pennsylvania Avenue
	 

	 	Washington, D.C. 20037-1723
	 

	 	Attention: President

Notices shall be considered timely if such notices are received on or before the established
deadline date or sent on or before the deadline date as verifiable by U.S. Postal Service postmark
or dated receipt from a commercial carrier.

14.08 The interpretation and application of the provisions of this Agreement shall be governed by
the laws of the United States as interpreted and applied by the Federal courts in the District of
Columbia, United States of America.

14.09 This Agreement constitutes the entire understanding between the parties and neither party
shall be obligated by any condition or representation other than those expressly stated herein or
as may be subsequently agreed to by the parties hereto in writing.

14.10 All prior reviews and approvals required by regulations or law have been obtained by the
Command prior to the execution of this Agreement. The Command official executing this Agreement has
the requisite authority to do so.

14.11 Failure of any party to enforce any term, covenant, or condition herein contained shall not
be deemed to be a waiver of such term, covenant, or condition herein contained.

14.12 Neither party shall be in default hereunder by reason of its delay in the performance of, or
failure to perform, any of its obligations hereunder, other than Licensee’s obligations to make
payments to Licensor in accordance with the terms of this Agreement, if such delay is caused by

 

			
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strikes, acts of God or the public enemy, riots, or without the fault or negligence of the other
party. During the pendency of such intervening event, each of the parties shall take all reasonable
steps to furnish the services required hereunder by other means, and, in any event shall, upon
termination of such intervening event, forthwith resume obligations under this Agreement.

14.13 The provisions of this Agreement are severable, and in the event that any provision of this
Agreement shall be determined to be invalid or unenforceable under any controlling body of law,
such determination shall not in any way affect the validity or enforceability of the remaining
provisions of this Agreement.

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in
triplicate originals by its duly authorized officers or representatives.

	 	 	 	 	 	 	 
	FOR LICENSEE:	 	IOMAI CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:   /s/ Stanley C. Erck	 	 
	 	 	NAME: Stanley C. Erck	 	 
	 	 	TITLE: CEO and President	 	 
	 	 	DATED: April 6, 2001	 	 
	 
	 	 	 	 	 	 
	 

	 	WITNESS:
	 	/s/ Russell P. Wilson	 	 
	 

	 	 	 	 	 	 
	 	 	DATED: April 6, 2001	 	 
	 	 	 
	FOR LICENSOR:	 	WALTER REED ARMY INSTITUTE OF RESEARCH
	 
	 	 	 	 	 	 
	 

	 	BY:   /s/ Daniel L. Jarboe	 	 
	 	 	NAME: Daniel L. Jarboe, Colonel, U.S. Army	 	 
	 	 	TITLE: Director, Walter Reed Army Institute of Research	 	 
	 	 	DATED: April 6, 2001	 	 
	 
	 	 	 	 	 	 
	 

	 	WITNESS:
	 	/s/ K. Teya Moore	 	 
	 

	 	 	 	 	 	 
	 	 	DATED: April 6, 2001	 	 

 

			
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APPENDIX B

Patents and Patent Applications

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Type of Appln &
	Inventor	 	Title	 	Filing Date	 	Appln No.	 	Country
	Alving and Glenn

	 	Transdermal Deliver

System for Antigen
	 	11/14/96
	 	08/749,164

Patent No.

5,910,306 issued

6/8/99
	 	US
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	US97/21324

WO 98/20734
	 	PCT Intl..Appln.
 of
08/749,164
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	2,272,417
	 	Canada
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	335749
	 	New Zealand
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	99-7004299

Pub. No. 2000-

53306
	 	S. Korea
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	522942/98
	 	Japan
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	129919
	 	Israel
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	52652/98
	 	Australia
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	APP/99/01540
	 	ARIPO
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	99452
	 	Mexico
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	224832
	 	EPC
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	97180947.X

Pub. No.
1241906A
	 	China
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	Pending
	 	Hong Kong
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	11/14/97
	 	Pending 11/14/97
	 	Brazil
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunizations
	 	07/17/97
	 	08/896,085

Patent No.

5,980,898 

issued 11/9/99
	 	US

CIP of

08/749,164
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunizations
	 	03/12/99
	 	09/266,803
	 	Div. of 08/896,085
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transdermal Delivery

System for Antigen
	 	09/21/98
	 	09/157,395
	 	Div. of 08/749,164
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Skin-Active Adjuvants for
Transcutaneous
Immunization
	 	05/14/99
	 	09/311,720
	 	CIP of 08/749,164
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Use of Penetration
Enhancers and Barrier
Disruption Agents to
	 	02/252/98
	 	60/075,856
	 	Provisional

 

			
	[**] = 	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request.
An unredacted version of this exhibit has been filed separately with the Commission.

Page 22 of 24

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Type of Appln &
	Inventor	 	Title	 	Filing Date	 	Appln No.	 	Country
	 

	 	Enhance the Transcutaneous

Immune Response Induced by

ADP-Ribosylating Exotoxin	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Activation of Adjuvant,
Antigen, and Skin
Components for Enhancing
the Transcutaneous Immune
Response
	 	02/25/98
	 	60/075,850
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Use of Penetration
Enhancers and Barrier
Disruption Agents to
Enhance the Transcutaneous
Immune Response Induced by
ADP-Ribosylating Exotoxin
	 	02/25/99
	 	09/257/188
	 	Reg. US from Prov.

60/075,856

60/075,850
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunization
	 	02/25/99
	 	PCT/US99/04128
	 	PCT Intl. Appln. Of

60/075,856

60/075,850
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunization
	 	02/25/99
	 	Pending
	 	Brazil
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunization
	 	02/25/99
	 	Pending
	 	Canada
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunization
	 	02/25/99
	 	Pending
	 	EPC
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunization
	 	02/25/99
	 	Pending
	 	Japan
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Adjuvant for

Transcutaneous

Immunization
	 	05/21/98
	 	60/086,196
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Targeting of Langerhans
Cells and Other Antigen
Presenting Cells in Skin
to Enhance the
Transcutaneous Immune
Response
	 	05/11/98
	 	60/084,911
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Targeting of Langerhans
Cells and Other Antigen
Presenting Cells in Skin
to Enhance the
Transcutaneous Immune
Response
	 	05/11/99
	 	09/309,881
	 	Reg. from 60/084,911

60/086,196

CIP of 08/749,164

08/896,085
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Physical Penetration
Methods to Assist the
Transcutaneous Immune
Response
	 	05/21/98
	 	60/086,251
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Immunodulation of the
Transcutaneous Immune
Response
	 	05/21/98
	 	60/086,252
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Transcutaneous

Immunodulation
	 	05/21/99
	 	09/316,069
	 	Reg. US from Prov.

60/086,252
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Adjuvant Enhanced

Transcutaneous

Immunization
	 	06/22/98
	 	60/090,169
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn and Alving

	 	Transcutaneous

Immunization without

Heterlogous Adjuvant
	 	06/22/99
	 	09/337,746
	 	Reg. US from Prov.

60/090,169 & 1001+
	 
	 	 	 	 	 	 	 	 
	Glenn and Scharton-...

	 	Dry Formulation for

Transcutaneous

Immunization
	 	04/08/99
	 	60/128,370	 	 
	 
	Glenn and Scharton

	 	Dry Formulation for

Transcutaneous

Immunization
	 	04/07/00
	 	09/545,417
	 	Regular US from

Provisional

60/128,370

 

			
	[**] = 	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request.
An unredacted version of this exhibit has been filed separately with the Commission.

Page 23 of 24

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Type of Appln &
	Inventor	 	Title	 	Filing Date	 	Appln No.	 	Country
	Glenn and Scharton

	 	Dry Formulation for

Transcutaneous

Immunization
	 	4/10/00
	 	PCT/US00/08714
	 	PCT Int’l

Application of

60/128,370
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Indicators for Monitoring
the Technique of
Transcutaneous
Immunization
	 	06/03/99
	 	60/137,790
	 	Provisional
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Indicators for Monitoring
the Technique of
Transcutaneous
Immunization
	 	06/02/00
	 	09/585,559
	 	Regular US from

Provisional

60/137,790
	 
	 	 	 	 	 	 	 	 
	Glenn

	 	Indicators for Monitoring
the Technique of
Transcutaneous
Immunization
	 	06/02/00
	 	not received
	 	PCT International

Application of

60/137,790
	 
	 	 	 	 	 	 	 	 
	Glenn
 and Arving
	 	Transcutaneous Immunization
	 	06/15/00
	 	60/211,545
	 	Provisional

 

			
	[**] = 	 	Portions of this exhibit  have been omitted pursuant
to a confidential treatment request. An unredacted version of this
exhibit has been filed separately with the Commission.

Page 24 of 24exv10w9

 

Exhibit 10.9

**Text Omitted and Filed Separately

Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 230.406

Pfēnex Expression TechnologyTM

COMMERCIAL LICENSE AGREEMENT

     This Agreement is effective as of the latest date of signing below and is by and between Dow
Global Technologies Incorporated (“Dow”), a Michigan corporation having its principal offices at
2030 Dow Center, Midland, MI, 48674 USA and Iomai Corporation, a Delaware corporation (“Licensee”)
having a principal place of business at 20 Firstfield Road Suite 250, Gaithersburg, MD 20878 USA

     Licensee further desires to secure a non-exclusive license to Dow’s Pfēnex Expression
TechnologyTM the clinical and commercial production of Product.

     Accordingly, in consideration of the premises and the mutual covenants of this Agreement, the
parties hereto agree as follows:

Article 1  DEFINITIONS

1.01 Affiliates: “Affiliates” shall mean any entity that, directly or indirectly through
one or more intermediates, controls, is controlled by or is under common control with either
Licensee or Dow, where “controls”, “controlled by”, and “is under common control” means ownership,
directly or indirectly, of fifty percent (50%) of the voting equity interest in the entity or the
possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of that entity, whether through ownership or voting securities, by contract or otherwise.

	1.02	 	Active: “Active” shall mean:
	 
	(i)	 	[**] expressed by Pfēnex Expression TechnologyTM with any of the following protein sequences:

[**]

[**]

[**]

[**]

[**]

[**]

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

 

 

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**].

1.03 Biological Material: “Biological Material” shall mean Dow’s proprietary strains of
Pseudomonas fluorescens, Dow proprietary plasmids and expression vectors for transforming
Pseudomonas fluorescens, Dow proprietary nucleic acid and protein based probes relating to genetic
transformation of Pseudomonas fluorescens, Dow proprietary strains of transformed Pseudomonas
fluorescens genetically engineered to express Active, Dow proprietary plasmids and expression
vectors for transforming Pseudomonas fluorescens to express Active, and Dow proprietary nucleic
acid and protein based probes relating to genetic transformation of Pseudomonas fluorescens that
express Active.

1.04 Calendar Quarter: “Calendar Quarter” shall mean a three month period ending March 31,
June 30, September 30 or December 31.

1.05 Calendar Year: “Calendar Year” shall mean the year beginning January 1st
and ending December 31st.

1.06 Confidential Information: “Confidential Information” shall mean any and all
proprietary information (including without limitation, information related to technical, business,
including customer names, information or addresses, and intellectual property matters), know-how,
data, intellectual property, trade secrets, and other physical materials, and information contained
in Royalty Reports, Status Reports, Termination

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 2 -

 

Royalty Report, Biological Material, Patent Rights, Know-How, Active in Product, information and
know-how related to the Active and Product owned or held by either party to this Agreement, now and
in the future which is disclosed by either party to the other party in connection with this
Agreement. The Confidential Information shall include proprietary information disclosed in writing
or other tangible form, including samples of materials.

1.07 Effective Date: “Effective Date” shall mean the last date of execution of this
Agreement.

1.07(a) Europe: “Europe” shall mean the European Union, including its Member States.

1.08 Field: “Field” shall mean use in human vaccines for the prevention of diseases
caused by pathogenic microorganisms and use for therapeutic applications or therapeutic vaccines or
in combination with one or more autoantigens.

1.09 Improvements: “Improvements” shall mean all discoveries and/or inventions (whether
patented or not) made during the term of this Agreement by either Party which constitute a
modification of Biological Material, or Know-How Technology or which would infringe any of the
claims of Patent Rights or which constitute a modification to the Pfēnex Expression TechnologyTM.
Made as used herein means the discovery or invention was conceived or reduced to practice.
Improvements does not include any invention or discovery related to [**].

1.10 Improvement Report: “Improvement Report” shall mean a written report that provides
sufficient information so that Dow may practice such Improvement and if necessary such report shall
also include the transfer of material necessary to practice Improvements.

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 3 -

 

1.11 Know-How Technology: “Know-How Technology” shall mean Dow’s proprietary, non-public
technical information and materials (including without limitation, technology, data, bacterial
strains, genetic constructs, computer software and algorithms for controlling fermentation vessels
and related equipment, chemicals, inventions (patentable or otherwise), practices, methods,
knowledge, know-how, skill, and experience) related directly or indirectly to the Pfēnex Expression
TechnologyTM.

1.12 Licensee Partner: “Licensee Partner” shall mean any co-developer, co-marketer,
co-promoter or distributor of Product, under an agreement with Licensee relating to the
development, marketing, promotion or distribution of Product.

1.13 Net Sales: “Net Sales” shall mean the gross amounts billed or invoiced by Licensee,
its Affiliates, Licensee Partners and Permitted Sublicensees, as the case may be, to non-Affiliate
Third Parties (“Buyers”) for the sale of any Product, less the following deductions, in each case
to the extent specifically related to the Product and taken by such Buyers or otherwise paid or
accrued for by Licensee (“Permitted Deductions”): (i) trade, cash, promotional and quantity
discounts; (ii) taxes on sales (such as excise, sales or use taxes or value added tax) to the
extent imposed upon and paid directly with respect to the sales price (and excluding national,
state or local taxes based on income); (iii) freight, insurance, packing costs and other
transportation charges to the extent included in the invoice price to the Buyer; (iv) amounts
repaid or credits taken by reason of damaged goods, rejections, defects, expired dating, recalls,
returns or because of retroactive price reductions; (v) charge back payments and rebates granted to
(a) managed health care organizations, (b) federal, provincial and/or local governments or their
agencies, (c) purchasers and reimbursers, or (d) trade customers, including without limitation,
wholesalers and chain and pharmacy buying groups; and (vi) documented customs duties actually paid.

“Net Sales” shall not include any consideration received with respect to a sale, use or other
disposition of any Product as part of a clinical trial prior to the receipt of applicable

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 4 -

 

Regulatory Approval for the Product.

Sales of a Product to an Affiliate, Licensee Partner or Sublicensee shall be excluded from Net
Sales calculations, it being understood and agreed that sales of a Product by such Persons shall be
included in Net Sales, as provided above.

If a Product is sold together with one or more products that do not bear royalties under this
Agreement for a single invoiced price or is “bundled” for sale together with one or more such
non-royalty bearing products in a single transaction or group of related transactions, the Net
Sales for such Product shall be the portion of such sale properly allocable to such Product, as
reasonably determined in good faith by [**].

For any Product sold or otherwise transferred in a commercial transaction for consideration other
than money, “Net Sales” shall be determined as provided above based on the fair market value of the
non-monetary consideration.

Net Sales also include the value of any consideration received by Licensee for the grant by
Licensee to any Licensee Partner or Permitted Sublicensee of any right(s) under any right(s)
granted to Licensee by Dow hereunder to develop or sell any Product, it being understood and agreed
that such consideration shall not include [**].

1.14  Parties: “Parties” shall mean collectively Dow and Licensee.

1.15 Party: “Party” shall mean either Dow or Licensee as the case may be.

1.16 Patent Rights: “Patent Rights” shall mean Dow owned or controlled patent applications
U.S. Serial Nos. 60/523,420 and 2005/001,549 and any divisional, continuation, foreign equivalent,
substitute, renewal, extension, reissue, reexamination, patents of addition, supplemental
protection certificate, or application therefore or patent issuing therefrom.

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 5 -

 

1.17 Permitted Sublicensee: “Permitted Sublicensee” shall mean any Person to whom Licensee
has granted rights under the rights granted to Licensee by Dow hereunder and any Person to whom
such Permitted Sublicensee, to the extent permitted hereunder, sublicenses such [**].

1.18
Pfēnex Expression TechnologyTM: “Pfēnex Expression TechnologyTM” shall mean Patent
Rights and Know-How Technology related to or using directly or indirectly the Biological Material,
Pseudomonas bacterial strains, DNA, components and vectors for the expression of foreign proteins
and Active.

1.19 Product: “Product” shall mean any product or combination product containing Active
where the manufacture or formulation of such Active (i) would (but for the license granted
hereunder) infringe any Valid Claim of any Patent Right or (ii) involved the practice of Know-How
Technology.

1.20 Royalty: “Royalty” has the meaning set forth in Section 3.02.

1.21 Royalty Report: “Royalty Report” shall mean the written report due under this
Agreement that report Royalties due under the Agreement.

1.22 Termination Royalty Report: “Termination Royalty Report” shall mean the Royalty
Report that is due after termination of this Agreement.

1.23 Third Party: “Third Party” shall mean any person, organization, firm, corporation,
partnership or entity other than Dow, Licensee and their respective Affiliates.

1.24 Valid Claim: “Valid Claim” shall mean a claim of an issued and unexpired patent

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 6 -

 

that has not been held permanently revoked, unenforceable or invalid by a decision of a court or
other governmental agency of competent jurisdiction, unappealed or unappealable within the time
allowed for appeal, and that has not been admitted to be invalid or unenforceable through reissue,
disclaimer or otherwise.

Article 2
LICENSE GRANT AND TRANSFER OF BIOLOGICAL MATERIAL

2.01 Grant to Licensee: Dow hereby grants to Licensee a non-exclusive, worldwide,
sublicensable, royalty-bearing license in the Field under the Patent Rights and Know-How Technology
to use said Pfēnex Expression TechnologyTM to make, have made, use and sell Product for clinical and
commercial use. Licensee shall not have any right to sublicense its rights under this Agreement
other than to Affiliates, Licensee Partners and Permitted Sublicensees. Licensee may transfer or
assign its rights under this Agreement only as provided in Section 8.01. Except for production of
Active using the Pfēnex Expression TechnologyTM, Licensee shall not use any Biological Materials or
Know-How Technology for research or production. The right to “have made” granted hereunder shall
be subject to the limitation that any such right shall be exercised only with respect to a
reputable manufacturer in the United States, Canada, Europe or Japan who shall be subject to all of
the confidentiality and limited use obligations with respect to Dow’s confidential information and
the Pfēnex Expression TechnologyTM imposed on Licensee hereunder, and whose [**] with such
obligations [**] shall, [**]. In exercising its right to have made, Licensee shall provide Dow
written notice to inform Dow of the chosen manufacturer in advance of engaging the manufacturer.

	 	(a)	 	Licensee shall notify Dow as soon as practicable, but in no event later
than [**] after granting any sublicense under the rights granted by Dow to Licensee
under this Agreement, of the identity of any proposed Permitted Sublicensee, Licensee
Partner or Affiliate to whom rights have been sublicensed (the “Sublicensee”).

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 7 -

 

(b) Licensee shall cause all sublicenses to incorporate contractual provisions substantially
identical to Sections 4.01 and 4.02 hereof. Licensee shall also provide to Dow such financial and
other information regarding the financial condition and reports of all Sublicensees as Licensee
possesses or has a contractual right to receive or procure.

	 	(c)	 	Licensee shall cause all Permitted Sublicensees to execute and deliver
such documents as Dow may reasonably request to require such Permitted Sublicensees to
pay all Royalties directly to Dow. [**] shall [**] to Dow as a result of Net Sales
made by such Permitted Sublicensees.
	 
	 	(d)	 	In the event that any Permitted Sublicensee fails to make any payment
required to be made directly to Dow within the periods provided for herein for the
payment of royalties (Licensee shall cause the termination of such sublicense and Dow
may at its option terminate this Agreement if Licensee does not pay Dow the full
unpaid amount owed on any such royalty payment within [**] days of notice of such
failure to pay from Dow.
	 
	 	(e)	 	The right to “make,” if granted hereunder by Licensee to any Permitted
Sublicensee shall be subject to the limitation that any such right shall be exercised
only by a reputable manufacturer in the United States, Canada, Europe or Japan who
shall be subject to all of the confidentiality and limited use obligations with
respect to Dow’s confidential information and the Pfēnex Expression TechnologyTM
imposed on Licensee hereunder, and whose compliance with such obligations [**] shall,
[**].
	 
	 	(f)	 	The right to “have made,” if granted hereunder by Licensee to any
Permitted Sublicensee shall be subject to the limitation that any such right shall be
exercised only with respect to a reputable manufacturer in the United States, Canada,
Europe or Japan who shall be subject to all of the confidentiality and limited use
obligations with respect to Dow’s confidential information

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 8 -

 

and the
Pfēnex Expression TechnologyTM imposed on Licensee hereunder, and whose
compliance with such obligations [**] and and such [**].

	 	(g)	 	If exercising a right to “have made,” Sublicensee shall provide Dow written
notice of the identity of any such manufacturer in advance of engaging the
manufacturer.
	 
	 	(h)	 	The right to make or have made, if granted to any Sublicensee by Licensee
hereunder, shall not be sublicensed by any such Sublicensee without the consent of
Dow, such consent not be unreasonably withheld or delayed.
	 
	 	(i)	 	The terms of any sublicense to any Permitted Sublicensee shall be subject to
all of the confidentiality and limited use obligations with respect to Dow’s
confidential information and the Pfēnex Expression TechnologyTM imposed on Licensee
hereunder, and [**] shall [**] with all such provisions.

2.02 Transfer of Biological Material and Technical Support: Upon execution of this
Agreement, Dow shall transfer Biological Material and a Know-How Technology package to Licensee and
the Know-How Technology package will be added as Appendix A. [**]. Dow shall provide commercially
reasonable technical assistance to Licensee in the use of Biological Material and Know-How
Technology at Dow’s prevailing hourly rate at the time technical assistance is provided. Payment
for the first 500 hours of such assistance shall be due only at such time, if ever, as Licensee
becomes obligated to make a payment to Dow under Section 3.01. It is understood and agreed that
these hours will consist of technical support/advice and shall not be used for process development
activities at Dow.

2.03 Parties’ Roles: Licensee shall have complete control of purchasing and the detailed
design, construction and operation (including maintenance) of the equipment

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 9 -

 

necessary
to produce Active and Product using Pfēnex Expression TechnologyTM. Dow’s role is a
technical advisor. Among other things, this means that Licensee is solely responsible for all of
the following: (i) safety, (ii) the selection, retention, supervision, performance, and payment of
qualified engineer(s), constructor(s) and/or contractor(s), (iii) the detailed design, and the
construction, operation and maintenance of the equipment necessary to produce Active and Product
using Pfēnex Expression TechnologyTM and all of its component parts, (iv) the inspection and the
structural and mechanical conditions of any and all equipment and materials included in or added to
the equipment necessary to produce Active and Product using
Pfēnex Expression TechnologyTM, and (v)
the training of the operating and maintenance personnel.

Article 3  MILESTONE PAYMENTS, ROYALTIES, AND ROYALTY REPORTS

3.01 Milestone Payments:  As partial consideration for the granting of this license,
Licensee agrees to pay Dow the sum of Five Hundred Thousand U.S. Dollars ($500,000) payable within
[**] of receipt of the first Major Market Marketing Approval for each distinct Product. A Major
Market Marketing Approval means marketing approval by the Food and Drug Administration or marketing
and pricing approval by the equivalent regulatory body in Europe or Japan. [**], such $500,000
shall be payable only if such approval is obtained pursuant to [**]; if such approval is not
obtained in [**] shall be payable [**]. No more than $500,000 shall be payable with respect to
each distinct Product under the provisions of this Section 3.01. These sums shall not be applied
against any royalty payments due under Section 3.02 hereof.

	3.02	 	Royalty Payments:
	 
	 	3.02.1	 	Except as provided in 3.02.2, the royalties due and payable by Licensee in US
dollars to Dow shall be [**] of Net Sales when [**].
	 
	 	3.02.2	 	[**], the royalties due and payable by Licensee in US dollars to Dow shall

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 10 -

 

be [**] of Net Sales.

For the purposes of this article, [**]. Without limiting the generality of the foregoing, for the
avoidance of doubt, [**].

3.03 Royalty and Royalty Reports: Commencing with respect to the [**] in which the first
Product receives regulatory approval, Licensee agrees to make written Royalty Reports to Dow [**],
and Licensee shall use commercially reasonable efforts to provide Royalty Reports within [**] days
of the end of each [**]. Royalty Reports shall provide the total Net Sales of Product sold or
value received during the [**]. The first Royalty Report shall include all Net Sales of Product
sold from the Effective Date of this Agreement to the date of said Royalty Report. Such [**]
Royalty Reports shall provide the particulars regarding sales of Products during such [**] as are
pertinent to a royalty accounting. These shall include at least the following:

a.           [**]

b.           [**]

c.           [**]

d.           [**]

3.04 Royalty Report after Termination: Licensee shall provide a Termination Royalty Report
to Dow within [**] days after the date of any termination of this Agreement. The Termination
Royalty Report shall provide the total Product Net Sales up to such date of termination which were
not previously reported to Dow. Concurrently with the making of this Termination Royalty Report,
Licensee will pay to Dow all Royalties due.

3.05 Methods for Payment of Milestone Fees and Royalties:

	 	(a)	 	Each payment to Dow shall be made by wire transfer to the following
destination:

[**]

	 	(b)	 	Royalty reports shall be addressed to the following address:

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 11 -

 

The Dow Chemical Company

Royalty Accounting

2020 Dow Center

Midland, MI 48674

or another location in the United States which Dow may subsequently designate from
time to time by notice to Licensee.

3.06 Late Payments: If Licensee fails to timely pay when due any amount which is payable
under this Agreement, then, without prejudice to other sections of this Agreement, that amount
shall bear interest compounded quarterly from the due date until payment is made in full, both
before and after any judgment, at an annual rate of [**] on the day payment was due, until paid.

3.07 Status Reports: Upon the [**] of this agreement and [**] Licensee shall provide
Licensor a clinical status report detailing the clinical status and projected commercialization
date of each Product in which Active is used. These reports shall be sent to the address provided
in Section 12.01, with a copy to the address provide in Section 3.05(b).

3.08 Currency. All amounts payable and calculations hereunder shall be in United States
dollars. As applicable, Net Sales and any royalty deductions shall be translated into United
States dollars at the [**]. If, due to restrictions or prohibitions imposed by national or
international authority, payments cannot be made as provided in this Article 3, the Parties shall
consult with a view to finding a prompt and acceptable solution, and Licensee will deal with such
monies as Dow may lawfully direct so long as [**].

3.09 Taxes and Withholding. All payments under this Agreement will be made without any
deduction or withholding for or on account of any tax, duties, levies, or other

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

- 12 -

 

charges unless such deduction or withholding is required by applicable laws or regulations to be
assessed against Dow. If Licensee is so required to deduct or withhold, Licensee will (i) promptly
notify Dow of such requirement, (ii) pay to the relevant authorities the full amount required to be
deducted or withheld promptly upon the earlier of determining that such deduction or withholding is
required or receiving notice that such amount has been assessed against Dow, and (iii) promptly
forward to Dow an official receipt (or certified copy) or other documentation reasonably acceptable
to Dow evidencing such payment to such authorities.

Article 4  RETENTION BY LICENSEE AND ACCESS TO RECORDS

4.01 Records: Licensee shall keep records showing the amount of Products sold or otherwise
transferred to Third Parties. Licensee shall keep complete records related to activities and
requirements under Article 3 such that records shall be in sufficient detail to enable the
Royalties payable hereunder by Licensee to be clearly and fully determined. Licensee further
agrees to permit its books and records, including without limitation such books and records
relating to Permitted Sublicensees, to be examined no more than [**] to verify the reports provided
under this Agreement, such confidential examination to be made at Dow’s discretion by [**]. Such
records shall be kept and examination thereof shall be limited to a period of time no more than
[**] after the close of the fiscal year to which the records pertain. In the event that Licensee
shall make any sublicense to a Permitted Sublicensee to the extent permitted hereunder, Licensee
shall (a) cause such sublicense to incorporate audit rights in favor of Licensee substantially
identical to the provisions of this Section 4.01 , and (b) use commercially reasonable efforts to
enforce such audit rights with respect to such Permitted Sublicensee.

4.02 Financial Information. Licensee shall provide to Licensor (a) annual audited
financial statements and (b) such other quarterly financial statements as may be prepared by or on
behalf of Licensee, subject to assumption by Licensor of customary and reasonable confidentiality
obligations regarding such information.

 

			
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Article 5
 CONFIDENTIALITY

5.01 Confidential Information: It is anticipated that it will be necessary, in connection
with their obligations under this Agreement, for Licensee and Dow to disclose to each other
Confidential Information. If Confidential Information is disclosed orally, the Confidential
Information shall be summarized in written form within [**] days by the disclosing party and a copy
provided to the recipient.

5.02 Confidentiality and Limited Use: With respect to all Confidential Information, both
Licensee and Dow agree as follows, it being understood that “recipient” indicates the Party
receiving the confidential, proprietary information from the other “disclosing” Party.
Confidential Information and Biological Material provided or disclosed to the recipient shall
remain the property of the disclosing Party and shall be maintained in confidence by the recipient
and shall not be provided or disclosed to Third Parties by the recipient and, further, shall not be
used except for purposes contemplated in this Agreement. Parties may disclose Confidential
Information to officers, directors, employees, associates, agents, consultants, and Affiliates.
All confidentiality and limited use obligations with respect to the Confidential Information shall
terminate [**] years after the termination date of this Agreement.

5.03 Confidentiality Exceptions: Notwithstanding any provision to the contrary, a party
may disclose the Confidential Information of the other party: (i) in connection with an order of a
court or other government body or as otherwise required by or in compliance with law or
regulations; provided that the disclosing party provides the other party with notice and takes
reasonable measures to obtain confidential treatment thereof; (ii) in confidence to recipient’s
attorneys, accountants, banks and financial sources and its advisors; or (iii) in confidence, in
connection with the sale of substantially all the business assets to which this Agreement relates,
so long as, in each case, the entity to which disclosure is made is bound to confidentiality on
terms consistent with those set

 

			
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forth herein. The obligations of confidentiality and limited use shall not apply to any of the
Confidential Information which:

	 	(a)	 	is publicly available by publication or other documented means or later
becomes likewise publicly available through no act or fault of recipient; or
	 
	 	(b)	 	is already known to recipient before receipt from the disclosing party, as
demonstrated by recipient’s written records; or
	 
	 	(c)	 	is made known to recipient by a Third Party who did not obtain it directly or
indirectly from the disclosing party and who does not obligate recipient to hold it in
confidence; or
	 
	 	(d)	 	is independently developed by the recipient as evidenced by credible written
research records of recipient’s employees or agents who did not have access to the
disclosing party’s Confidential Information. Specific information should not be
deemed to be within any of these exclusions merely because it is embraced by more
general information falling within these exclusions.

5.04 Disclosures to Personnel: Recipient agrees to advise those of its officers,
directors, employees, associates, agents, consultants, and Affiliates who become aware of the
Confidential Information, of these confidentiality and limited use obligations and agrees, prior to
any disclosure of Confidential Information to such individuals or entities, to make them bound by
obligations of confidentiality and limited use of the same stringency as those contained in this
Agreement.

5.05 Return of Confidential Information: Upon termination of this Agreement, originals and
copies of Confidential Information in written or other tangible form and all

 

			
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Biological Material shall be returned to the disclosing party by recipient or destroyed by
recipient. One copy of each document may be retained in the custody of the recipient’s legal
counsel solely to provide a record of what disclosures were made.

5.06 Confidential Status of Agreement: This Agreement and the terms of this Agreement
shall be deemed to be Confidential Information and shall be dealt with according to the
confidentiality requirements of this Article 5. Neither party will make public disclosures
concerning terms of this Agreement without obtaining the prior written consent of the other party,
which consent shall not be unreasonably withheld.

Article 6
 DISCLAIMERS, INDEMNIFICATION, HOLD HARMLESS AND
INSURANCE

6.01 Representations and Warranties of Each Party. Each of Dow and Licensee hereby represents,
warrants, and covenants to the other Party as follows:

	 	(a)	 	it is a corporation duly organized and validly existing under the laws of the
state of its incorporation;
	 
	 	(b)	 	the execution, delivery and performance of this Agreement by such Party has
been duly authorized by all requisite corporate action and does not require any
further corporate action or approval;
	 
	 	(c)	 	it has the power and authority to execute and deliver this Agreement and to
perform its obligations hereunder; and
	 
	 	(d)	 	the execution, delivery and performance by such Party of this Agreement and
its compliance with the terms and provisions hereof does not and will not conflict
with or result in a breach of any of the terms and provisions of or constitute a
default under (i) any other agreement or instrument binding or affecting it or its
property; (ii) the provisions of its charter or operative documents or bylaws; or
(iii) any order, writ, injunction or decree of any court or governmental authority
entered against it or by which any of its property is bound.

 

			
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6.02 Additional Representations and Warranties of Dow. Dow, hereby represents, warrants, and
covenants to Licensee that:

	 	(a)	 	as of the Effective Date, the Patent Rights are existing and, to the best of
its knowledge, are not invalid or unenforceable, in whole or in part;
	 
	 	(b)	 	it has and will have the full right, power and authority to grant all of the
right, title and interest in the licenses granted or to be granted to Licensee under
this Agreement;
	 
	 	(c)	 	Dow is the sole and exclusive owner of the Dow Patent Rights existing as of
the effective date of this Agreement, all of which are free and clear of any liens,
charges and encumbrances (other than licenses granted by Dow to Third Parties, which
grants do not conflict with the license grants to Licensee hereunder);
	 
	 	(d)	 	to the best of its knowledge, as of the effective date of this Agreement, the
use of Pfēnex Expression TechnologyTM to make, have made, use and sell Product as
contemplated by this Agreement, does not infringe any issued patent owned or possessed
by any Third Party;
	 
	 	(e)	 	to the best of its knowledge, as of the Effective Date, there are no Third
Party patent applications pending (other than those which have been disclosed, in
writing, by Dow to Licensee prior to the signing of this Agreement) which, if issued,
would be infringed by the use of Pfēnex Expression TechnologyTM to make, have made, use
and sell Product as contemplated by this Agreement; and
	 
	 	(f)	 	as of the Effective Date, there are no claims, judgments or settlements
against or owed by Dow or, to the best of its knowledge, pending or threatened claims
or litigation, in either case relating to the Pfēnex Expression TechnologyTM.

 

			
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6.03 No Other Warranties:

EXCEPT FOR THE EXPRESS WARRANTIES IN SECTIONS 6.01 and 6.02, NEITHER DOW NOR LICENSEE MAKES ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, REGARDING:

PATENT RIGHTS, KNOW-HOW TECHNOLOGY, IMPROVEMENTS, PFēNEX EXPRESSION TECHNOLOGYTM, PRODUCT
AND BIOLOGICAL MATERIAL (INCLUDING, WITHOUT LIMITATION, THE VALIDITY OR SCOPE OF THE PATENT
RIGHTS) OR INCLUDING, WITHOUT LIMITATION, PERFORMANCE, MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR THE NON-INFRINGEMENT OF THIRD PARTY PROPERTY RIGHTS.

6.04 Indemnification by Licensee. Licensee will indemnify, defend and hold harmless Dow, each of
its Affiliates, and each of its and its Affiliates’ employees, officers, directors and agents
(each, a “Dow Indemnified Party”) from and against any and all liability, loss, damage, expense
(including reasonable attorneys’ fees and expenses) and cost (collectively, a “Liability”) that the
Dow Indemnified Party may be required to pay to one or more Third Parties resulting from or arising
out of:

	 	(a)	 	any claims of any nature arising out of the identification, research,
development or commercialization of Product(s) by, on behalf of, or under the
authority of, Licensee (other than by any Dow Indemnified Party), other than claims by
Third Parties relating to patent infringement arising out of the exercise of rights
under the Patent Rights; or
	 
	 	(b)	 	the material breach by Licensee of any of its representations, warranties or
covenants set forth herein;

 

			
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except, in each case, to the extent caused by the gross negligence or willful
misconduct of Dow or any Dow Indemnified Party.

6.05 Indemnification by Dow. Dow will indemnify, defend and hold harmless Licensee, its
Affiliates, Permitted Sublicensees, and Licensee Partners and each of its and their respective
employees, officers, directors and agents (each, a “Licensee Indemnified Party”) from and against
any and all Liabilities that the Licensee Indemnified Party may be required to pay to one or more
Third Parties resulting from or arising out of the material breach by Dow of any of its
representations, warranties or covenants set forth herein, except to the extent caused by the gross
negligence or willful misconduct of Licensee or any Licensee Indemnified Party.

6.06 Indemnification Procedure. Each Party will notify the other Party in writing in the event it
becomes aware of a claim for which indemnification may be sought hereunder. In case any proceeding
(including any governmental investigation) shall be instituted involving any Party in respect of
which indemnity may be sought pursuant to this Agreement, such Party (the “Indemnified Party”)
shall promptly notify the other Party (the “Indemnifying Party”) in writing and the Indemnifying
Party and Indemnified Party shall meet to discuss how to respond to any claims that are the subject
matter of such proceeding. The Indemnified Party shall cooperate fully with the Indemnifying Party
in defense of such matter. The Indemnifying Party, upon request of the Indemnified Party, shall
retain counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party
and shall pay the fees and expenses of such counsel related to such proceeding. In any such
proceeding, the Indemnified Party shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of the Indemnified Party unless (i) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such
counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include
both the Indemnifying Party and the Indemnified Party and representation of both Parties by the
same counsel would be inappropriate due to actual or potential differing interests between them.
All such fees and expenses shall be reimbursed as they are incurred. The Indemnifying Party

 

			
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shall not be liable for any settlement of any proceeding effected without its written consent, but,
if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying
Party agrees to indemnify the Indemnified Party from and against any loss or liability by reason of
such settlement or judgment. The Indemnifying Party shall not, without the written consent of the
Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of
which the Indemnified Party is, or arising out of the same set of facts could have been, a party
and indemnity could have been sought hereunder by the Indemnified Party, unless such settlement
includes an unconditional release of the Indemnified Party from all liability on claims that are
the subject matter of such proceeding.

6.07 Limited Liability: NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY LOSS OF
PROFITS, LOSS OF BUSINESS, INTERRUPTION OF BUSINESS, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF
ANY KIND SUFFERED BY SUCH OTHER PARTY FOR BREACH HEREOF, WHETHER BASED ON CONTRACT OR TORT CLAIMS
OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS.

6.08 Insurance: At all times while this Agreement is in effect and during which Licensee
is conducting clinical trials of any Product, LICENSEE will procure and maintain, at its own
expense and for its own benefit, Comprehensive/ Commercial General Liability Insurance, including
coverage for Contractual Liability and Products Liability (including coverage for human clinical
trials), having a bodily injury, death, and property damage combined single limit of at least [**]
per occurrence. Prior to commencement of any commercial product sales, LICENSEE will procure and
maintain, at its own expense and for its own benefit , Product Liability insurance having a bodily
injury, death, and property damage combined single limit of at least [**] per occurrence, provided
that such [**] coverage will be increased to [**]. The scope of the Product Liability coverage to
be provided is to be similar to standard ISO forms (e.g. 1998 Commercial General Liability ISO form
#CG 00 01 01 98 or CG 00 02 01 98). If the

 

			
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insurance to be provided is in a form similar to ISO policy form CG 00 02 01 98 (claims made form),
then the policy shall contain an extended reporting period of at least [**]; any Retroactive Date
under said policy shall be no later than the Effective Date of this Agreement.

(a) LICENSEE will furnish Dow a certificate(s) from an insurance carrier or carriers
(having a minimum AM Best rating of A-) showing all insurance set forth above. The
certificate(s) will include the following statement: “The insurance certified hereunder is
applicable to contracts between The Dow Chemical Company and the Insured. This insurance
may be canceled or altered only after thirty (30) days written notice to The Dow Chemical
Company.” The insurance will be endorsed and the certificate(s) will confirm that the
insurance (1) names The Dow Chemical Company and its affiliates as additional insureds
with respect to matters arising from this Agreement; (2) provides that such insurance is
primary and non-contributing to any liability insurance carried by The Dow Chemical
Company; and (3) provides that underwriters and insurance companies of LICENSEE may not
have any right of subrogation against The Dow Chemical Company and its affiliates. The
insurance will contain no more than a typical industry deductible/SIR.

(b) LICENSEE agrees to [**].

			
	Article 7 
PATENTS, IMPROVEMENTS AND INFRINGEMENT OF DOW’S PATENT RIGHTS BY THIRD PARTIES

7.01 Improvements: Licensee shall disclose to Dow all Improvements made under this
Agreement. Such Improvements shall be disclosed to Dow [**] in an Improvements Report, submitted
to the address provided in Section 12.01.

7.02 Grant-Back: When an Improvement is made or discovered by Licensee and/or its
Affiliates, Licensee will, and will cause its Affiliates as the case may be, grant Dow and

 

			
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its Affiliates [**] licenses to such Improvement with the right to sublicense such rights to Third
Parties, with the right to further sublicense. Licensee and its Affiliates shall provide Dow with
biological material, which contains or embodies such Improvement. The licenses in this Section
7.02 shall survive expiration or termination, whichever occurs later, of this Agreement. Licenses
resulting from this Section are for the commercial life of any such discoveries, unless such
discovery is patented, in which case the license shall be for the life of the patent(s) that claim
such Improvement.

7.03 Patent Infringement: Should Licensee become aware of any infringement or alleged
infringement of any Patent Rights, Licensee shall promptly notify Dow in writing of the name and
address of the alleged infringer and of the alleged acts of infringement, and provide any available
evidence of the alleged acts of infringement. Dow shall not be obligated to prosecute against any
Third Party any suit for infringement of the aforesaid Patent Rights. In the event that Dow
decides to bring a patent infringement suit against the alleged Third Party infringer, Licensee
shall cooperate with Dow in the prosecution of any legal infringement action and agrees to provide
Dow with pertinent data and evidence which may be helpful in the prosecution of such action of
which it may have knowledge or which may be readily available to it. Dow shall reimburse Licensee
for reasonable expenses incurred by Licensee in assisting Dow in this matter. Dow shall have the
exclusive right (but not the obligation) to institute and conduct legal action against Third Party
infringers of the Patent Rights, and to enter into such settlement agreements as may be deemed
appropriate by Dow. Dow shall receive the full benefits of any compensatory or punitive damages it
obtains pursuant to bringing such suit.

7.04 Invalidity of Patent Rights: If, at any time during this Agreement, Dow shall be
unable to uphold the validity of any of the Patent Rights against any alleged infringer, [**]. In
the event that Patent Rights are not upheld, [**] under this Agreement according to the terms and
conditions of this Agreement for the periods provided for herein.

 

			
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	Article 8 ASSIGNABILITY/SUCCESSION/CHANGE IN CONTROL

8.01 Licensee Assignability: Licensee shall have the right to assign this Agreement [**].
In addition, Licensee shall have the right to assign its respective rights or obligations and
delegate its performance hereunder, in whole or in part, to any of its Affiliates, but in any such
case, Licensee shall remain fully obligated for the performance by such Affiliate of all
obligations of Licensee hereunder. In all events, Licensee shall cause the assignee to agree in
writing to be bound by all the terms of this Agreement.

8.02 Dow Assignability: Dow shall have the right to assign this Agreement in connection
with the reorganization, consolidation, spin-off, sale or transfer of assets related to that
portion of its business pertaining to the subject matter of this Agreement, either alone or in
conjunction with other Dow businesses or in connection with any sale of substantially all of its
assets or any merger or consolidation. In addition, Dow shall have the right to assign its
respective rights or obligations and delegate its performance hereunder, in whole or in part, to
any of its Affiliates. In either event, the assignee shall agree in writing to be bound by all the
terms of this Agreement.

			
	Article 9 UNITED STATES GOVERNMENT EXPORT CONTROL REGULATIONS

9.01 Export Control Regulations: The Export Control Regulations of the U.S. Department of
Commerce prohibit, except under a special validated license, the exportation from the United States
of technical data relating to certain commodities listed in the Regulations, unless the exporter
has received certain written assurance from the foreign importer. In order to facilitate the
exchange of technical information under this Agreement, Licensee therefore hereby gives its
assurance to Dow that it will comply with all of the requirements of the U.S. Export Control
Regulations.

9.02 Termination for Violations: Violation of the U.S. Export Control laws or regulations
by Licensee shall constitute grounds for Dow, in its sole discretion, to

 

			
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terminate this license agreement. Failure to obtain any needed export control license may result
in criminal liability under the United States law.

			
	Article 10
TERM AND TERMINATION

10.01 Term: Unless previously terminated in accordance with the following provisions of
this Article 10, Section 8.02 or 9.02, this Agreement is effective as of the Effective Date of this
Agreement and shall have a term of ten years from the date of first sale of a Product or to the end
of the term of the last to expire patent in the Patent Rights licensed hereunder, whichever is
longer and shall thereupon expire. Licensee shall have an irrevocable and fully paid-up license to
Licensor’s Pfēnex Expression TechnologyTM thereafter.

10.02 Licensee’s Right to Terminate: Licensee shall have the right to terminate this
Agreement two (2) Calendar Years after the Effective Date, provided Licensee provides [**] months
written notice of such termination.

10.03 Dow’s Right to Terminate: Dow shall have the right to terminate this Agreement by
giving [**] days written notice to Licensee if, in Dow and Licensee agree that there are material
health and safety risks associated with the Active, Product or Pfēnex Expression Technology which
create a material risk of liability to Dow (after taking into account Licensee’s indemnification
obligations and any insurance coverage provided by Licensee). If Dow and Licensee disagree, the
disagreement shall be resolved within 30 days by a mutually agreeable, nationally recognized law
firm, whose fees shall be shared equally by Dow and Licensee. 

10.04 Termination of Agreement for Breach:

	 	(a)	 	Either Party may terminate this Agreement upon at least [**] written notice
to the other Party should the other party commit a material breach of its obligations
or be in default under any of the provisions of this Agreement if:

 

			
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(i) the breach can reasonably be cured within the [**] notice period and the Party in
breach has failed to cure the breach or default within the same [**] notice period;
(ii) if such breach or default cannot be cured within the [**] period, the Party in
breach has not taken reasonable steps toward curing the breach or default. If the
breach or default can not be cured within the [**] period, the Party in breach shall
notify the non-breaching Party of the steps taken toward curing such default or
breach and the plans to totally cure such default or breach as soon as reasonably
possible. If the Party in breach fails to provide such notice, the non-breaching
Party shall be free to terminate with immediate effect by notice to the Party in
breach.

	 	(b)	 	If Licensee shall at any time default in the payment of any license fee or
royalty or in the making of any report hereunder, and shall fail to remedy any such
default or breach within [**] days after written notice thereof by Licensor, then
Licensor may, at its option, terminate the license and all other rights herein
granted, by giving notice to Licensee in writing to such effect.
	 
	 	(c)	 	Notwithstanding a Party’s right to terminate this Agreement as a result of a
non-cured material breach by the other Party, the non-breaching Party shall not be
prevented from seeking any other remedy which may be available to it in equity,
including specific performance on the part of the party in breach.

10.05 Insolvency: Either Party may terminate this Agreement if, at any time:

	 	(a)	 	the other Party makes an assignment for the benefit of creditors or admits in
writing its inability generally to pay or is generally not paying its debts as such
debts become due;
	 
	 	(b)	 	any decree or order for relief is entered against the other Party under any

 

			
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bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of
debt, dissolution or liquidation or similar law;

	 	(c)	 	the other Party petitions or applies to any tribunal for, or consents to, the
appointment of, or taking possession by, a trustee, receiver, custodian, liquidator or
similar official, of such other Party or any substantial part of its assets, or
commences a voluntary case under the bankruptcy law of any jurisdiction;
	 
	 	(d)	 	any such petition or application is filed, or any such proceedings are
commenced, against the other Party and such other Party by any act indicates its
approval thereof, consent thereto or acquiescence therein, or an order, judgment or
decree is entered appointing any such trustee, receiver, custodian, liquidator or
similar official, or approving the petition in any such proceedings, and such order
for relief, order, judgment or decree remains unstayed and in effect for more than
sixty (60) days; or
	 
	 	(e)	 	any order, judgment or decree is entered in any proceedings against the other
Party decreeing the dissolution of such other Party and such order, judgment or decree
remains unstayed and in effect for more than sixty (60) days.

10.06 Effects of Termination/Survival:

	 	(a)	 	Expiration or termination of this Agreement shall not relieve the Parties of
any obligation accruing prior to or upon such expiration or termination. Accordingly,
Dow rights under Section 7.02 shall survive expiration of termination of this
Agreement for any reason. Sections 3.04, 6.04, Articles 5 and Article 6 shall survive
expiration or termination of this Agreement and Licensee shall not be relieved of any
payment obligation that may have accrued prior to such expiration or termination.
	 
	 	(b)	 	Upon any termination of this Agreement for any reason other than a breach by
Licensee, insolvency by Licensee, termination by Licensee under Section

 

			
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10.02 or termination by Dow under Section 10.03, Licensee shall, be entitled to sell,
for a period of twelve (12) months, remaining inventories of any Product(s) which are
already in its possession. Such sales shall be in accordance with this Agreement and
the Parties shall continue to be obligated to make all applicable payments hereunder.

	 	(c)	 	After termination, except as provided in (b) above, any remaining Active,
Product and all Biological Material and Confidential Information remaining, if any,
shall be destroyed or shall be returned, respectively, and the destruction shall be
certified to Dow by a representative of Licensee.

			
	Article 11
ADVERTISING/PUBLICITY

11.01 Neither the granting of the license herein granted by Dow nor the acceptance of the milestone
payments or royalties hereunder by Dow shall constitute Dow’s approval of, or acquiescence in,
advertising or other business practices of Licensee, nor an approval of or acquiescence in any use
of the corporate name of Dow, use of the name(s) of the inventors of the Patent Rights licensed, in
connection with the manufacture, advertising, use or sale of Product, and Dow hereby expressly
reserves all rights of actions with respect thereto.

11.02 Dow and Licensee hereby agree to issue a joint press release upon signing of this Agreement.
The wording of said press release shall be mutually agreed by both parties prior to issuance.

			
	Article 12
NOTICES 

12.01 Notices: Any notice or other communication required or permitted to be given by
either party under this Agreement shall be given in writing and shall be effective when delivered,
if delivered by hand, reputable courier service or five days after mailing if mailed by registered
or certified mail, postage prepaid and return receipt requested, addressed to each party at the
following addresses or such other address as may be

 

			
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designated by written notice by either Party:

For Dow:

Microbial Biopharmaceuticals – Business Leader

The Dow Chemical Company

301 Newbury Street PMB # 251

Danvers, MA 01923

With a copy to:

General Patent Counsel

The Dow Chemical Company

Midland, MI 48674 

For Licensee:

Kai Chen, Ph.D.

Vice President Business Development

Iomai Corporation

20 Firstfield Road Suite 250

Gaithersburg, MD 20878 USA

			
	Article 13 MISCELLANEOUS

13.01 Severability: If any clause, provision, or section of this Agreement attached
hereto, shall, for any reason, be held illegal, invalid or unenforceable, the parties shall
negotiate in good faith and in accordance with reasonable standards of fair dealing, a valid,
legal, and enforceable substitute provision or provisions that most nearly reflect the original
intent of the parties under this Agreement in a manner that is commensurate in magnitude and degree
with the changes arising as a result of any such substitute provision or provisions. All other
provisions in this Agreement shall remain in full force and effect

 

			
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and shall be construed in order to carry out the original intent of the parties as nearly as
possible (consistent with the necessary reallocation of benefits) and as if such invalid, illegal,
or unenforceable provision had never been contained herein.

13.02 Merger of Understanding: Except for the [**] this Agreement constitutes the entire
Agreement between the Parties regarding the subject matter hereof and all prior negotiations and
understandings between the parties are deemed to be merged into this Agreement. Notwithstanding
the forgoing, in the event that Dow has the right to terminate this Agreement, then Dow shall have
the right to terminate the Confidentiality Agreement and Licensee agrees to abide extend the
Confidentiality term in the Confidentiality Agreement so that the period of confidentiality runs in
parallel with this Agreement.

13.03 Force Majeure: Neither of the Parties shall be liable for any default or delay in
performance of any obligation under this Agreement caused by any of the following: Act of God, war,
riot, fire, explosion, accident, flood, sabotage, compliance with governmental requests, laws,
regulations, orders or actions, national defense requirements or any other event beyond the
reasonable control of such Party; or labor trouble, strike, lockout or injunction (provided that
neither of the Parties shall be required to settle a labor dispute against its own best judgment).
The party invoking the provisions of this Section shall give the other Party written notice and
full particulars of such force majeure event. Both Dow and Licensee shall use reasonable business
efforts to mitigate the effects of any force majeure on their respective part.

13.04 Relationship of the Parties: The relationship of Dow and Licensee is strictly one of
Dow and Licensee and the parties acknowledge that this Agreement does not create a joint venture,
partnership, or the like, between them. Licensee shall always remain independent contractors in
its performance of this Agreement. Neither party to this Agreement shall have any authority to
employ any person as an employee or agent for or

 

			
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on behalf of the other party to this Agreement for any purpose, and neither party to this
Agreement, nor any person performing any duties or engaging in any work at the request of such
party, shall be deemed to be an employee or agent of the other party to this Agreement.

13.05 Use of Names: Neither Party shall use the name of the other in any promotional
materials or advertising without the prior written consent of the other except as specifically
provided in this Agreement or other related agreements.

13.06 Choice of Law; Submission to Jurisdiction: All questions with respect to the
construction of this Agreement and the rights and liabilities of the Parties hereto shall be
determined in accordance with the laws of the State of Delaware applicable to business arrangements
entered into and performed entirely within the State of Delaware.

13.07 Provisions Contrary to Law: In performing this Agreement, the Parties shall comply
with all applicable laws and regulations. Nothing in this Agreement shall be construed so as to
require the violation of any law, and wherever there is any conflict between any provision of this
Agreement and any law the law shall prevail, but in such event the affected provision of this
Agreement shall be affected only to the extent necessary to bring it within the applicable law.

13.08 Remedies: Except as otherwise expressly stated in this Agreement, the rights and
remedies of a party set forth herein with respect to failure of the other to comply with the terms
of this Agreement (including, without limitation, rights of full termination of this Agreement) are
not exclusive, the exercise thereof shall not constitute an election of remedies and the aggrieved
party shall in all events be entitled to seek whatever additional remedies may be available in law
or in equity.

13.09 Fees: Except as otherwise provided herein, each Party shall bear its own legal

 

			
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fees incurred in connection with the transactions contemplated hereby, provided, however, that if
any Party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings
or otherwise, the non-prevailing Party shall pay all costs and expenses incurred by the prevailing
party, including, without limitation, all reasonable attorneys’ fees.

13.10 Headings: Headings herein are for convenience of reference only and shall in no way
affect interpretation of this Agreement.

13.11 Counterparts: This Agreement may be executed in any number of counterparts with the
same effect as if all parties had signed the same document. All such counterparts shall be deemed
an original, shall be construed together and shall constitute one and the same instrument.

13.12 Appendices: The appended Appendices and any modifications or amendments thereof form an
integral part of this Agreement.

     IN WITNESS WHEREOF, the Parties hereto have understood, agreed to and caused this Agreement to
be executed in duplicate originals by their duly authorized representatives as of the date written
beneath their respective signatures.

	 	 	 	 	 	 	 	 	 
	The Dow Chemical Company	 	 	 	Iomai Corporation
	(Licensor)	 	 	 	(Licensee)
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Andrew N. Liveris
	 	 	 	By:
	 	/s/ Stanley C. Erck
	 

	 	 
	 	 	 	 	 	 
	Name: Andrew N. Liveris	 	 	 	Name: Stanley C. Erck
	Title: Chief Executive Officer	 	 	 	Title: CEO
	Date: June 23, 2005	 	 	 	Date: 30 Jun 05

 

			
	[**]	 	Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

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