Document:

Asset Purchase and License Agreement, dated as of June 8, 2007

 Exhibit 10.3 
 CONFIDENTIAL 
 Portions of this Exhibit were omitted and have been filed separately with the Secretary of

 the Commission pursuant to the Company’s application requesting confidential treatment 
 under Rule 24b-2 of the Exchange Act. 
 ASSET PURCHASE AND LICENSE AGREEMENT 
 BY AND AMONG 
 3M COMPANY, 3M INNOVATIVE PROPERTIES COMPANY, 
 AND COLEY PHARMACEUTICAL GROUP, INC. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 

 ASSET PURCHASE AND LICENSE AGREEMENT 
 THIS AGREEMENT, made this 8th of June, 2007, (“Signing Date”) by and among 3M COMPANY (hereinafter “3M”), 3M INNOVATIVE PROPERTIES COMPANY (hereinafter “3M IPC”), Delaware corporations having offices at 3M Center,
St. Paul, Minnesota 55144, USA and COLEY PHARMACEUTICAL GROUP, INC. a Delaware corporation having its address at 93 Worcester Street, Suite 101, Wellesley, MA 02481 USA (hereinafter “COLEY”). 3M IPC is a wholly owned subsidiary of 3M.
Hereinafter a reference to “3M” or “COLEY” shall include their respective Affiliates where performance would be expected from or required by an Affiliate. 
 WITNESSETH: 
 WHEREAS, 3M has conducted extensive research and
development in the area of small-molecule immune response modifier compounds and other small molecule compounds, some of which act by stimulating basic immune cell receptors known as toll-like receptors (TLRs) 7 and/or 8, for possible treatment of
various conditions, including, for example, cancers, viral, bacterial, and fungal infections, inflammatory diseases such as asthma and allergic rhinitis, autoimmune diseases, wound-healing, photoaged skin, scar-reduction, as well as being useful as
Vaccine Adjuvants (as defined below). 
 WHEREAS, 3M has discovered and tested many thousands of such compounds, and has conducted
preclinical and, in some cases, clinical testing on a number of them, such as imiquimod, the active drug in 3M’s AldaraTM topical cream product, and others designated [***] and others. 
 WHEREAS, 3M has already entered into transactions conveying some or all rights in [***] to third parties, but still retains rights to the
remaining compounds for most uses. 
 AND WHEREAS, 3M and 3M IPC wish to sell and license, and COLEY wishes to purchase and license
the rights set forth herein. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 1 

 NOW, THEREFORE, in consideration of the foregoing premises and mutual promises set forth in this
Agreement, the Parties agree as follows: 
 ARTICLE 1. DEFINITIONS 
 The terms defined in Article 1 shall have the following meanings (applicable both to the singular and the plural forms): 
 “3M Compound(s)” means any compound that is covered by an Existing Claim within any of the patent families identified as the
“Compound Cases” in the Assigned Patent Rights and Licensed Patent Rights including any prodrug or any hydrate, solvate, conjugate, salt, ester, stereoisomer or polymorph of such compound or prodrug, or otherwise provided to Coley by 3M as
a Tangible Asset under this Agreement, other than Excluded 3M Compounds. Provided, however, that 3M Compound(s) does not include (i) metabolites of, or compounds used as intermediates for making, compounds that otherwise do not constitute 3M
Compounds, and (ii) the conjugation compounds identified as [***] for use as Vaccine Adjuvants. 
 “Affiliate” means
with respect to any of the Parties to this Agreement, any person, firm, trust, corporation, company or other entity or combination thereof, whether now existing or created in the future, that directly or indirectly (a) owns or controls said
Party, (b) is owned or controlled by said Party or (c) is under common ownership or control with said Party. The term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Party, whether through the ownership of voting securities, by contract or otherwise. Control will be presumed if any person, firm, trust, corporation, company or other entity or combination thereof owns, either of record
or beneficially, fifty percent (50%) or more of the voting stock of any Party. 
 “Assigned Agreements” means the
agreements listed on Schedule A. 
 “Assigned Patent Rights”. means the Patent Rights listed on Schedule B-1. 
 “Closing” and “Closing Date” shall be as set forth in Section 2.2. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 2 

 “Excluded 3M Compound(s)” means [***]. 
 “Excluded Field” has the meaning set forth in the definition of the term “Field” below. 
 “Existing Claim” means a claim of (i) an issued and unexpired patent, which claim has not been revoked or held invalid or
unenforceable by a court or other government agency of competent jurisdiction from which no appeal can be or has been taken and has not been held or admitted to be invalid or unenforceable through re-examination or disclaimer, reissue, opposition
procedure, nullity suit or otherwise, or (ii) a pending patent application that has not been cancelled, withdrawn or abandoned, provided, however, that if a claim of a pending patent application shall not have issued within five (5) years
after the earliest filing date from which such claim takes priority, such claim shall not constitute an Existing Claim for the purposes of this Agreement unless and until a patent issues with such claim. 
 “Field” means the diagnosis, treatment, mitigation, or prevention of any disease or condition in humans or animals, other than uses that
are within the “Excluded Fields.” The Excluded Fields are: 
  

	 	(1)	[***]; 

  

	 	(2)	[***]; 

  

	 	(3)	[***]; and 

  

	 	(4)	any use of the 3M Compounds as a Vaccine Adjuvant. 

 “First Commercial Sale” means the first sale of a Product by COLEY, a Sublicensee of COLEY, or one of their respective Affiliates, to a third party. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 3 

 “Issued Patents” has the meaning provided in the definition of the term “Patent
Rights” below. 
 “Know-How” means all non-public data and information owned by, used by or licensed to 3M, or its
Affiliates, existing on the Closing Date and contained in the items described on Schedule D, including all processes, methods, compounds, regulatory and clinical information, formulae, pharmacophores, discoveries, developments, designs, techniques,
improvements, trade secrets, molecules, know-how, specifications, inventions, assays and other research tools, and other scientific or technical data or information conceived, memorialized, developed and/or reduced to practice, set forth therein.

 “Licensed Patent Rights” means the Patent Rights listed on Schedule C. 
 “Major Market Country” means the United States, Great Britain, Germany, France, Italy, Spain, India, Japan and China. 
 “Net Sales” shall mean, for any period, COLEY and COLEY Affiliates’ gross invoiced sales for such period, less (i) promotional
allowances, rebates, pre-bates, administrative fees, profit share payments, quantity and cash discounts, and other customary discounts to customers, wholesalers, distributors, buying groups or health care insurance carriers, (ii) excise, sales
and other consumption taxes, value added taxes, taxes and duties paid, absorbed or allowed which are directly related to the sale, (iii) the amount of charge backs, and amounts repaid or credited by reason of rejections, allowances, billing
errors, rejected goods, recalls, damages or returns of goods, or because of retroactive price adjustments, (iv) freight and insurance costs, and (v) discounts or rebates or other payments required by law to be made under governmental
special medical assistance programs, all determined in accordance with United States generally accepted accounting principles consistently applied. If COLEY or a COLEY Affiliate sells any Product in a non-arms-length transaction, then the gross
invoiced sales amount shall be equitably adjusted by COLEY as necessary to make it equivalent to an arms-length price. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 4 

 “Patent Rights” means (i) issued and existing letters patent, U.S. and foreign,
including extensions (whether arising from patent or regulatory law), supplemental protection certificates, registrations, confirmations, reissues, reexaminations or renewals thereof (“Issued Patents”); and (ii) pending patent
applications, U.S. and foreign (including any continuation, divisional, reissues, continuation-in-part or division thereof, or any substitute application therefor or equivalent thereof) on which a patent application may be filed, and all Issued
Patents arising therefrom. For avoidance of doubt, it is understood that Patent Rights in family [***] are not included even though they claim common priority with [***] 
 “Parties” means COLEY, 3M, their permitted assignees, and as the context requires, 3M IPC; and a “PARTY” means individually COLEY, 3M, their permitted assignees and/or 3M IPC, as the context
requires. 
 “Product” means a product, the manufacture, use or sale of which in a particular country, or the importation of
which into a particular country, is covered by an Existing Claim within the Licensed Patent Rights or Assigned Patent Rights and/or contains a 3M Compound. 
 “Purchased Assets” means the Assigned Patent Rights, Assigned Agreements, Tangible Assets, and transferred Regulatory Filings. 
 “Regulatory Filings” means the items listed on Schedule E. 
 “Royalty Term” has the meaning provided in Section 4.3. 
 “Tangible Assets” means the items listed on Schedule F. 
 “Topical Field” has the meaning provided in the definition of the term “Field” above. 
 “Third Party” means a party other than COLEY, 3M, 3M IPC, RIKER or any of their respective Affiliates. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 5 

 “Vaccine Adjuvant” means a compound which is used to induce, augment, fine-tune,
enhance, or desensitize an antigen-specific immune response to an antigen contained in a vaccine or generated by a DNA vaccine for the therapeutic treatment of an existing disease or prophylactic use as protection against future disease (including
desensitization to allergens). The antigen and the vaccine adjuvant may be admixed, delivered simultaneously, conjugated, or delivered separately, provided however, that the separate administration of the antigen and vaccine adjuvant is
(a) limited to the topical (dermal or mucosal) or intradermal routes of administration and (b) must be administered within 48 hours at substantially the same site and (c) labeled as such by the applicable regulatory
authority. For avoidance of doubt, aside from vaccination through the topical and intradermal routes, the antigen and the vaccine adjuvant must be co-formulated (including the use of dual barrel syringes or tamper-proof kits for co-formulation prior
to injection) and co-administered. The antigen may not be administered intra-tumorally and may not be administered more than once in any four (4) week period. When the antigen and the vaccine adjuvant are admixed, delivered simultaneously,
conjugated or delivered separately, except in the case of topical or intradermal administration, the maximum dose for the vaccine adjuvant shall not be unreasonably in excess of an adjuvant dose for the purpose of enhancing immune response to the
vaccine antigen and shall not be for the purpose of effecting an immune response independent of the vaccine. Any administration of the vaccine adjuvant and the antigen may include other adjuvant compounds and pharmaceutical formulations such as
nanoparticles, microparticles, liposomes, or emulsions. For example, applying resiquimod gel topically as an adjuvant at the site of and in conjunction with topical or intradermal vaccination (within 48 hours) would be a Vaccine Adjuvant. Also for
avoidance of doubt, vaccine adjuvants may be used with any and all types of antigens, including DNA vaccines, allergens for desensitization, and patient-derived antigens that are removed and processed with dendritic cells and administered as a
vaccine, but not a patient’s endogenous disease antigens residing within the body or non-tumor cells derived from the body. 
 “Vaccine Adjuvant Patents” means the patents and applications listed on Schedule H. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 6 

 ARTICLE 2. CLOSING 
 2.1 Mutual Cooperation. Each Party shall use good faith reasonable efforts to cooperate with the other Party in overcoming any objection raised by any government authority regarding the legality of the
transaction proposed herein, including, if required by federal or state antitrust authorities, each Party promptly taking all reasonable steps to secure government antitrust clearance. Each Party shall cooperate in good faith at its own cost with
any government investigation regarding the legality of the transaction proposed herein and promptly produce documents, witnesses, and information demanded by a request for documents and witnesses if requested by the governmental authority; provided,
however, that nothing herein shall require either Party to make any changes to this Agreement that would materially affect the value of the Agreement to a Party. 
 2.2 Closing Date and Location. Subject to the terms and conditions of this Agreement, the sale and purchase of the Purchased Assets shall take place at a closing (the “Closing”) no later than
June 29, 2007, at a location or in a manner agreeable to 3M and COLEY or at such other date as 3M and COLEY may mutually agree upon in writing (the day on which the Closing takes place being the “Closing Date” with the Closing
effective as of 12:01 a.m. on the Closing Date). 
 2.3 Conditions to Closing. The Parties agree to be bound by the terms and
conditions of this Agreement as of the Effective Date, but the rights and obligations of the Parties shall be subject to the following closing conditions: (i) the representations and warranties of the Parties shall have been true and correct in
all material respects when made and shall be true and correct in all respects on and as of the Closing Date, and each Party shall have performed all agreements and covenants required by this Agreement to be performed by it on or prior to the Closing
Date, and (ii) no actions or proceedings that question the validity or legality of the transactions contemplated hereby shall have been instituted by a Third Party and not settled or otherwise terminated. 
 ARTICLE 3. TRANSFER OF RIGHTS AND ASSETS 
 3.1
Assigned Patent Rights. Subject to the terms of this Agreement, 3M and 3M IPC shall assign their entire right, title and interest in the Assigned Patent Rights to COLEY and, for avoidance of doubt, 3M shall retain no right to license, assign
or otherwise exploit, develop or commercialize any of the 3M Compounds as active pharmaceutical ingredient (as opposed to intermediates) for any use outside the Field, including specifically any use as 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 7 

 
Vaccine Adjuvant or as a component of a vaccine. Such assignment shall be evidenced by delivery of the attached Schedule B Patents Assignment at Closing. 3M
IPC shall deliver the patent files relating to the Assigned Patent Rights to COLEY or COLEY’s selected outside patent firm prior to or on the Closing Date, from which time COLEY shall assume full responsibility and bear all costs for the
further filing, prosecution, maintenance, defense, and enforcement of the Assigned Patent Rights. Such patent files shall contain and include all applications, patents, correspondence with patent offices, legal memoranda and opinions, correspondence
with patent agents as kept in such files in the normal course of 3M IPC’s practice. 
 3.2 Assigned Agreements. 3M and 3M
IPC shall as of the Closing Date assign, and COLEY shall accept, all of their rights and obligations under the Assigned Agreements. The Parties shall provide each other reasonable cooperation in efforts to transfer such rights and obligations under
the Assigned Agreements. In the event, any material rights and obligations under such agreements are not assignable despite reasonable efforts to do so, the Parties shall cooperate to the extent reasonably practical to provide COLEY the effective
rights and obligations thereunder. Further, subject to the written approval of both Parties, such approval not be unreasonably withheld, in the six months following Closing, other agreements which are useful to develop or commercialize the Products
in the Field which are available for assignment, they will be assigned to COLEY and added to the list of Assigned Agreements on Schedule A. Further, in the event that an Assigned Agreement relates to subject matter outside the Field the rights and
obligations shall be deemed assigned only commensurate in scope with the Field. 
 3.3 Regulatory Filings. Subject to the terms of
this agreement, 3m and 3M IPC shall, and hereby do, assign their entire right, title and interest in the Regulatory Filings to COLEY. Promptly following the Closing Date, 3M will assign and transfer all of its right, title and interest in and to the
Regulatory Filings to COLEY, or, if such assignment is not permitted, 3M shall provide access and a right of reference under the Regulatory Filings to COLEY, and shall promptly take such other measures as are reasonably requested by COLEY in order
for COLEY to obtain substantially all of the rights and benefits of such Regulatory Filings as if they were fully assigned to COLEY hereunder. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 8 

 3.4 Tangible Assets. 3M and 3M IPC will deliver an executed Bill of Sale on the Closing Date and
will delivery the Tangible Assets on the Closing Date or within ten (10) business days thereafter (unless later delivery or other arrangements are indicated on Schedule F). It is understood that Tangible Assets and Know-How reflected therein,
may be provided in the form of copies and that 3M and 3M IPC may retain copies as set forth in Section 3.8. Further, subject to the written approval of both Parties, such approval not be unreasonably withheld, in the six months following
Closing, other assets and items may be added to the list of Tangible Assets on Schedule F which are useful to develop or commercialize the Products in the Field and if the relevant tangible asset is available, it would be provided to COLEY.

 3.5. License Grants by 3M. 3M, 3M IPC and their Affiliates hereby grant to COLEY, as of the Closing Date: 
 3.5.1 a royalty-bearing, exclusive license, with right to sublicense through one or more tiers, under the Licensed Patent Rights to make,
have made, use, have used, sell, have sold, offer for sale, have offered for sale, import and have imported Products in the Field. Provided, such license does not include any rights under family [***] for any products not containing 3M Compounds.

 3.5.2 a royalty-bearing, exclusive license, with right to sublicense through one or more tiers, under the Know-How, to
make, have made, use, have used, sell, have sold, offer for sale, have offered for sale, import and have imported Products in the Field and a nonexclusive license to any other know-how existing on the Closing Date and provided to Coley which is
useful to develop or commercialize the Products in the Field. 3M will provide such other know-how to Coley after Closing only to the extent it is readily available or accessible to 3M, but, for the avoidance of doubt, 3M is not obligated to develop
or transfer any know-how which is not pre-existing or readily available or accessible to 3M. 
 3.6 License Grant Back from COLEY.
Once the Assigned Patent Rights are transferred pursuant to Section 3.1, COLEY hereby grants back to 3M IPC, as of the Closing Date, a permanent and irrevocable, fully paid, royalty-free, exclusive license, with right to sublicense, under the
Assigned Patent Rights, to make, use, sell, offer for sale, and import products not containing the 3M Compounds as an active pharmaceutical ingredient outside the Field. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 9 

 3.7 Post-Closing Cooperation. 3M and 3M IPC will, at COLEY’s request and expense for any
filing fees or other external out-of-pocket costs, take all such other and further acts and execute, acknowledge and deliver all instruments of conveyance, assignment, transfer, consent and assumption as COLEY may reasonably request to confirm the
conveyance and transfer to COLEY of any of the rights or assets conveyed or transferred hereunder. 
 3.8 Retention of Certain
Records. It is understood and agreed that 3M reserves the right to retain copies of written records related to the Purchased Assets as required by law or as reasonably necessary for use outside the Field or in connection with defending any
claims, losses, causes of action or lawsuits, including those related to the sale of the Purchased Assets by 3M, and for the purpose of preparing any tax returns or financial statements or reports. Use and disclosure of any such information shall be
subject to the terms and conditions of this Agreement, including without limitation, Section 6.1. 
 3.9 No Implied Licenses.
Except as expressly set forth in this Agreement, no right, license or immunity from suit under any Patent Rights, trademark, or other proprietary rights is granted by either Party or any of its Affiliates pursuant to this Agreement. 
 3.10 Post-Closing Liabilities. Unless otherwise provided in this Agreement or expressly agreed in writing by the Parties, any formal written legal
claims pending or asserted, and any actual liabilities incurred (whether such liabilities were formally asserted, known or unknown prior to the Closing Date) in connection with the Purchased Assets the Licensed Patent Rights and Know-How, existing
prior to the Closing Date shall be the responsibility of 3M and 3M IPC, and those that are incurred on or after the Closing Date shall be the responsibility of COLEY. For avoidance of doubt, with regard to any liabilities or obligations under
Assigned Agreements, 3M shall only be responsible for payments owed or incurred prior to the Closing Date and COLEY shall have liability for all other obligations arising under such Assigned Agreements. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 10 

 3.11 Covenant. 3M and its Affiliates will not market, nor assign, license or otherwise
transfer any rights to the Vaccine Adjuvant Patents to a Third Party to market any product containing a compound claimed under the Compound Cases of the Vaccine Adjuvant Patents for any use other than as a Vaccine Adjuvant. 
 ARTICLE 4. PAYMENTS 
 4.1 Upfront Payments.
COLEY shall be obligated, unconditionally guaranteed without exception or offset under any circumstances, to pay 3M IPC a total of twenty million dollars ($20,000,000) in four (4) equal, non-refundable payments, by wire transfer, as follows:

 $5 million within ten (10) days after the Signing Date. 
 $5 million on the first anniversary of the Closing Date. 
 $5 million on the second anniversary of the Closing Date. 
 $5 million on the third anniversary of the Closing Date. 
 4.2 Milestone Payments. COLEY will pay 3M IPC the indicated milestone payments within 10 days upon achievement by COLEY of each of the following milestone events. For avoidance of doubt, each milestone payment
shall be payable only one time. 
  

			
	 Milestone Event
	  	 Milestone Payment

	First acceptance for filing by a regulatory agency of an application for marketing approval of a Product by the U.S. FDA, EU EMEA, or equivalent agency in UK, France, Germany, Italy, or Spain.
	  	[***]
		
	First approval of an application for marketing approval for a Product by the U.S. FDA, EU EMEA, or equivalent agency in UK, France, Germany, Italy, or Spain.	  	[***]

 4.3 Royalty Payments. COLEY shall pay 3M IPC, or a designated Affiliate, a nonrefundable
royalty of [***] of Net Sales of any and all Products during the applicable Royalty Term. Such royalty shall be payable on Net Sales of each Product for the longer of (i)

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 11 

 
ten (10) years from the First Commercial Sale of such Product in a Major Market Country or (ii) until the expiration or termination of the last
Existing Claim within the Assigned Patent Rights or Licensed Patent Rights that claims the manufacture, use or sale of such Product in a country, or the importation of such Product into a country (such period is the “Royalty Term”). For
avoidance of doubt, the Royalty Term for each Product shall be determined on a Product-by-Product and country-by-country basis. 
 4.3.1 Combination Products. In the event that a Product is sold in combination with another product or active component for a single price, Net Sales from sales of such combination product, for purposes of calculating royalties due
under this Agreement, shall be calculated by multiplying the Net Sales of such combination product by the fraction A/(A+B), where A is the average per unit Net Sales of the Product sold separately in the country of sale and B is the average per unit
Net Sales of the other product(s) or component(s) sold separately in the country of sale. In the event that no such separate sales are made, Net Sales, for purposes of determining royalty payments on such combination products, shall be a
reasonable apportionment of the gross amount invoiced therefore based upon the relative contribution of the Product to the price of the combination product. Such apportionment shall be negotiated in good faith between the parties and, if they
are unable to agree, resolved in accordance with the dispute resolution mechanism in Section 10.7. 
 4.4 License Income. COLEY
shall also pay 3M IPC [***] of any non-royalty license income that COLEY receives during each calendar quarter in connection with the grant of licenses or sublicenses by COLEY of rights in the Assigned Patent Rights, and Licensed Patent Rights. For
these purposes, “non-royalty license income” means and includes upfront payments and milestone payments received in connection with such licenses and sublicenses but does not include royalties (that is, payments made in connection with the
sale of products) received from such licensees or sublicensees, amounts paid to reimburse COLEY for actual development costs, or amounts paid for other assets unrelated to the Purchased Assets or Licensed Patent Rights sold by COLEY, or reimbursing
the cost of services provided by COLEY, to such licensees or sublicensees in connection with the grant of such licenses or sublicenses. In addition to the foregoing, COLEY shall pay to 3M IPC twenty percent (20%) of all royalties received by
COLEY during each calendar quarter from such licensees and 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 12 

 
sublicensees on account of sales by such licensees and sublicensees of Licensed Products. 3M IPC shall be deemed a third party beneficiary with the right to
take direct action against any COLEY licensees or sublicensees to enforce payment obligations should COLEY fail to do so after notice from 3M IPC. 
 4.5 Royalty and License Income Payments. Other than as provided in the “Net Sales” definition above, COLEY shall pay the royalties and license income payments due hereunder in US Dollars, not later than sixty (60) days
following the end of each calendar quarter in which the payments accrue. Each payment shall be accompanied by a report identifying the unit volume and royalty due for the subject Products, or the basis for non-royalty income, as the case may be.
Whenever a conversion from one currency to another is involved, the exchange rate shall be as reported in the Wall Street Journal on the last business day of the period for which the payment or report applies. Late payments shall accrue a late fee
at a rate of 1% per month. Payments shall be made via wire transfer to the following: 
 Wells Fargo Bank NA 

420 Montgomery Street 
 San Francisco, CA 94104-1298 
 ABA Number: 121000248 
 Beneficiary: 3M Company 
 Account Number: 0000030103 
 Re: “COLEY IRM Agreement” 
 or to such other address as 3M or 3M IPC may from time to time designate. 
 All payments required to be made by COLEY under this Agreement shall be made without set-off and free and clear of and without deduction or withholding for or on account of, any taxes, duties, imposts, fees or
charges, except as withholding which may be required under applicable law. COLEY shall furnish 3M or 3M IPC with proof of such withholdings, and shall provide a certificate or other documentary evidence to assist 3M or 3M IPC to submit a claim for a
refund or a foreign tax credit with respect to any withheld taxes. The Parties will co-operate under the provisions of any applicable taxation treaty or under any other applicable law, in order to assist 3M or 3M IPC in obtaining such payments
without any deduction or withholding. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 13 

 4.6 Right to Audit. 3M IPC may inspect and audit the records of COLEY in connection with royalty
and non-royalty payments due through an independent certified public accounting firm of its own selection and reasonably acceptable to COLEY. COLEY shall provide such accountants with access to the records during reasonable business hours, to check,
at 3M IPC’s expense, the payments due hereunder. Such access shall be provided only one time for any particular period and need not be given to any such set of records more often than once each year nor more than three years after the date of
any report to be audited. The accountants shall report to 3M IPC only the information set forth above. 3M IPC shall give COLEY written notice of its election to inspect and audit the records related to the royalty due hereunder not less than 30 days
prior to the proposed date of review of the records by the independent certified public accounting firm. COLEY shall maintain sufficient records to permit the inspection and auditing permitted hereunder for three years after the date of each
respective reporting period. COLEY shall prepare its records and reports according to generally accepted accounting principles. 
 4.6.1 Inaccurate Payments. In the event that an audit under Section 4.6 reveals an underpayment by COLEY, COLEY shall within two months of its receipt of the accounting firm’s audit report, pay the amount due in excess of
the amount actually paid. In the event that an audit under Section 4.6 reveals an underpayment by COLEY of more than 10% of the amount due for the period under audit, COLEY shall, in addition to interest on the late paid amount, pay for 3M
IPC’s reasonable costs in conducting the audit. 
 4.7 Taxes and Fees. COLEY shall pay all value added tax, sales, use, transfer
taxes, stamp duties, registration taxes and fees, and all other taxes, duties, fees and levies equivalent in nature or effect other than capital gains and income taxes, whether imposed by federal, state, local or foreign taxing or other authorities,
and all recording fees, conveyance fees and other governmental fees and charges associated with the transfer of Purchased Assets hereunder, if any, including but not limited to all fees imposed by any regulatory authority. COLEY and/or COLEY
Affiliates shall reimburse 3M, 3M IPC and its Affiliates fully for any such taxes, duties, levies, or fees that are paid by 3M, 3M IPC or any of its Affiliates to any such taxing authorities, government agency or regulatory authority after the
Signing Date at 3M’s request. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 14 

 4.8 General Diligence. COLEY shall use commercially reasonable efforts to develop and
commercialize, itself or via licensees, the Purchased Assets. Such efforts shall include an ongoing program to develop at least one compound and one backup compound leveraging COLEY’s existing research and development expertise and resources,
as well as COLEY’s established and anticipated strategic partnerships, aimed at developing and commercializing Products. In the event COLEY (i) makes a decision that it will discontinue or suspend such commercially reasonable efforts, or
(ii) subject to the notice and cure provisions set forth in Section 9.2, otherwise fails to use such commercially reasonable efforts, COLEY shall promptly notify 3M IPC of such decision or failure, in which event all licenses granted by 3M
IPC hereunder shall terminate and COLEY shall and hereby does transfer back to 3M and 3M IPC any remaining rights in the Purchased Assets. 
 4.9 [***] 
 ARTICLE 5. PATENT PROSECUTION AND ENFORCEMENT 
 5.1 Responsibility for Assigned Patent Rights. COLEY shall have the sole right to prepare, file, prosecute, defend, maintain, and enforce the Assigned Patent Rights at its sole discretion and expense. Provided,
however, in the event COLEY elects to abandon or fails to maintain, defend or enforce a patent or application in the Assigned Patent Rights, it shall notify 3M IPC in writing at least 30 days in advance of any loss of rights or decision not to
enforce, in which case 3M IPC shall have the right upon request to assume responsibility for such patent or application and have the subject patent(s) assigned to 3M IPC, upon which such patent or application shall become one of the Licensed Patent
Rights. However, in the event that COLEY reasonably decides that the abandonment or failure to maintain, defend or enforce a Patent Right within the Assigned Patent Rights will avoid a greater liability or will preserve or achieve a greater
commercial advantage other than avoiding payments hereunder, then 3M IPC shall have no right to assume responsibility for or perform such activities. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 15 

 5.2 Enforcement of Assigned Patent Rights. COLEY and 3M IPC shall each provide prompt written
notice to the other Party of any alleged infringement by a Third Party of Assigned Patent Rights. COLEY shall have the right, but not the obligation, to institute and control, at its expense, any action against Third Party infringement of the
Assigned Patent Rights in the Field. 3M shall provide reasonable cooperation in enforcing the Assigned Patent Rights at Coley’s request and expense, and shall, if required, be joined as a necessary party to such action. Coley shall be entitled
to retain all proceeds of such action, subject to payments due under Section 4.4, and shall indemnify 3M and 3M IPC for any and all liability of any kind relating to such enforcement. 
 5.3 No Obligation to Enforce or Maintain Licensed Patent Rights. Notwithstanding the grant of exclusive licenses under Section 3.1 above, 3M
and 3M IPC shall have the right but not the obligation, and COLEY shall have no right, to enforce the Licensed Patent Rights against Third Parties. All such enforcement, and prosecution, maintenance, and defense, of Licensed Patent rights shall be
at 3M IPC’s sole discretion and expense. If 3M IPC elects not to continue the prosecution or maintenance of Licensed Patent Rights, 3M IPC shall so notify COLEY in writing at least 30 days in advance of any loss of rights, in which case Coley
shall have the right upon request to assume responsibility for such patent or application and have subject patent or application assigned to Coley, upon which such patent or application shall become one of the Assigned Patent Rights. However, in the
event that 3M IPC reasonably decides that the abandonment or failure to maintain, or defend any Patent Rights within the Licensed Patent Rights will avoid a greater liability or will preserve or achieve a greater commercial advantage, for example
due to another commercial relationship or licensee relating to such Patent Rights, then COLEY shall have no right to assume responsibility for or receive assignment of such Patent Rights. 
 ARTICLE 6. CONFIDENTIAL INFORMATION 
 6.1
Obligations. Each Party agrees not to disclose to Third Parties or use Confidential Information (as hereinafter defined) furnished by another Party for any purpose other than for purposes of performing under this Agreement. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 16 

 Each Party will treat Confidential Information furnished by the other Party with the same degree of care as if it were
its own confidential proprietary information and, except as required for purposes of performing or exercising its rights under this Agreement, will not disclose such information to any Third Party, other than its employees, agents or consultants who
have a need to know the information for such purpose and who have agreed, or who are informed of and agree, to be bound by and comply with all of the provisions of this Article, without the prior written consent of the Party who furnished such
information, except to the extent that such Confidential Information is required to be disclosed for the purpose of complying with law or government regulations. The receiving Party shall undertake to have any and all employees, agents and
consultants observe the obligations of this Section and shall be responsible for any failure of any of them to do so. 
 “Confidential Information”
refers to all technical and business information including but not limited to regulatory filings, know-how, manufacturing, and testing information, clinical data, marketing plans and studies, patent information, and relevant clinical and regulatory
programs, disclosed by one Party to the other under this Agreement, except information which: 
 i) was known or used by the receiving Party
as evidenced by its written records made prior to the time of receipt hereunder; 
 ii) either before or after the time of disclosure becomes
known to the public other than by an unauthorized act or omission of the receiving Party or its employees, agents or consultants; 
 iii) was
lawfully disclosed to the receiving Party by a Third Party having the right to disclose said Confidential Information; or 
 iv) was
information developed by the receiving Party independently from the Confidential Information provided by the other Party hereto as evidenced by the receiving Party’s written records. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 17 

 Except for uses and disclosures reasonably required or permitted in connection with this Agreement, 3M shall treat the
Purchased Assets as COLEY Confidential Information (subject to any rights retained by or licensed back to 3M or 3M IPC) and COLEY shall treat the Know-How and Licensed Patent Rights as Confidential Information of 3M for all purposes outside the
Field. 
 6.2 Right to Disclose in Hearings and Proceedings. The parties shall maintain, however, the right to disclose such
Confidential Information in judicial or administrative hearings or proceedings to the extent necessary. If one Party finds it necessary to disclose any such Confidential Information in any such judicial or administrative hearing or proceeding, the
disclosing Party shall provide prompt written notice to the other Party in advance of such disclosure and shall cooperate with any efforts of the other Party to disclose such Confidential Information “in camera” or on some other protected
non-public basis. 
 6.3 Duration. Except as otherwise expressly provided herein, each Party’s obligations under this Article
shall survive for 5 years after the termination or expiration of this Agreement, but in any event shall not expire earlier than January 1, 2022. 
 6.4 Applicability of Previous CDAs. All Confidential Information exchanged between the Parties in the confidential disclosure agreements previously executed by and between 3M and COLEY relating to the subject
matter of this Agreement shall continue to be treated as Confidential Information under this Agreement. This Agreement shall supplement such previous agreements to the extent the provisions of this Agreement extend or enlarge any term of any
previous agreement. 
 6.5 Disclosure of Agreement. Neither this Agreement nor its terms shall by disclosed by a Party except as
required by law or government regulation to prospective permitted assignees of the Agreement under Section 10.4, or by 3M and 3M IPC, with financial terms redacted, to existing or prospective Third Party licensees and/or acquirers of rights to
other 3M IRM technology for the sole purpose of allowing such Third Party to conduct due diligence regarding possible restrictions under, and compatibility of rights with, this Agreement. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 18 

 ARTICLE 7. REPRESENTATIONS, WARRANTIES AND DISCLAIMERS 
 7.1 General Representations. Each Party represents and warrants that (a) it is a duly organized corporation in good standing and has power and
authority to perform its obligations under this Agreement including the right, power and authority to grant the licenses granted herein, (b) the execution and performance of this Agreement has been duly authorized by all requisite corporate
action, (c) the execution and performance of this Agreement and compliance with its terms does not and will not violate any applicable law or regulation (d) this Agreement does not conflict with or violate or result in a breach or default
under any agreement with a Third Party, and (e) this Agreement does not conflict with or violate any order, writ, injunction or decree of any court or governmental authority. 
 7.2 3M Warranties. 3M and 3M IPC hereby represent and warrant that, except as disclosed in Schedule G or otherwise known to COLEY, as of the
Closing Date: 
 7.2.1 3M, 3M IPC, and/or a 3M Affiliate owns all right, title and interest in and to the Purchased Assets and
on the Closing Date will convey, rights to and ownership of, the Purchased Assets to COLEY, free and clear of any and all liens and encumbrances. 
 7.2.2 To the actual knowledge of 3M, 3M IPC and/or a 3M Affiliate, through the Office of Intellectual Property Counsel, there have been no undisclosed claims made in writing by Third Parties received by and against 3M
asserting the invalidity, abuse, misuse, misappropriation, or unenforceability of any of the Purchased Assets. 
 7.2.3 To the
actual knowledge of 3M IPC through it Office of Intellectual Property Counsel, the 3M Compounds (i.e., the molecules as opposed to uses and formulations thereof), the [***] (as they exist on the Closing Date) [***], and the [***] (as it exists on
the Closing Date) [***], do not infringe upon the valid patent rights of any Third Party or constitute misappropriation of any know-how rights of a Third Party. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 19 

 7.2.4 3M and 3M IPC have assigned and/or granted to COLEY under Section 3.5 all
patent rights owned or controlled by 3M and 3M IPC covering the 3M Compounds, the [***] (as they exist on the Closing Date) [***][***], and the [***] (as it exists on the Closing Date) [***]. 
 7.2.5 Any claim for breach of the representations and warranties in Sections 7.1 or 7.2 must be made within 3 years of the Closing Date by
providing written notice before such time detailing the facts and allegations relating to such breach. 
 7.2.6 3M and its
Affiliates have not knowingly and willfully failed to disclose any materially adverse information regarding the safety and efficacy of the 3M Compounds [***]. 
 7.3 COLEY Warranty. COLEY hereby represents and warrants COLEY has, or will obtain, cash and/or access to funding sources sufficient to enable it to consummate the transactions and undertake the obligations
contemplated by this Agreement. 
 7.4 Disclaimers. 3M and 3M IPC have made available to COLEY and its representatives
information and records relating to Purchased Assets and provides the Purchased Assets, licenses, and any technical or other assistance or cooperation on an “AS IS” basis. It is understood and agreed by the Parties that no representation
or warranty, express or implied, has been made by 3M, 3M IPC or their Affiliates or agents regarding the accuracy or completeness of any such information or records. Accordingly, other than as specifically set forth in Sections 7.1 or 7.2, NO
EXPRESS OR IMPLIED WARRANTIES ARE GIVEN BY 3M, 3M IPC, OR ANY 3M AFFILIATE WITH RESPECT TO PURCHASED ASSETS, SAFETY OR TOXICITY OF 3M IRM COMPOUNDS, LICENSES, SUCCESS OF THE PURCHASED ASSETS OR ANY RELATED PRODUCT CLINICALLY OR IN THE MARKETPLACE,
OR ANY OTHER MATTER OR SUBJECT ARISING OUT OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ANY IMPLIED WARRANTY ARISING OUT OF COURSE OF 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 20 

 
DEALING OR USAGE OF TRADE, AND ANY IMPLIED WARRANTY OF FREEDOM FROM INFRINGEMENT, OR REGARDING THE VALIDITY, SCOPE, OR ENFORCEABILITY OF ANY PATENT OR
KNOW-HOW ASSIGNED OR LICENSED UNDER THIS AGREEMENT. 
 7.5 Acknowledgment. COLEY HEREBY ACKNOWLEDGES THAT IT HAS EXPERIENCE IN THE
OPERATION OF PHARMACEUTICAL DEVELOPMENT, MANUFACTURING, DISTRIBUTION AND SALES, HAS INDEPENDENTLY EVALUATED AND CONDUCTED THOROUGH DUE DILIGENCE WITH RESPECT TO THE PURCHASED ASSETS, KNOW-HOW, AND EXCLUDED PATENT RIGHTS (INCLUDING ASSESSING THE
ADEQUACY OF KNOW-HOW AND PATENT RIGHTS), AND HAS BEEN REPRESENTED BY, AND HAD THE ASSISTANCE OF, COUNSEL INCLUDING INTELLECTUAL PROPERTY COUNSEL IN THE CONDUCT OF SUCH DUE DILIGENCE, THE PREPARATION AND NEGOTIATION OF THIS AGREEMENT, AND THE
CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY. 
 ARTICLE 8. INDEMNIFICATION AND LIMITATION OF REMEDIES 
 8.1 3M Indemnification. 3M shall defend, indemnify and hold harmless, COLEY and its Affiliates, directors, officers and shareholders, harmless
against and with respect to any and all Third Party claims, losses, injuries, damages, deficiencies, liabilities, obligations, assessments, judgments, costs and expenses, including (except as otherwise expressly provided in this Agreement) costs and
expenses of litigation and reasonable attorneys’ fees to the extent caused by or arising out of: (i) any material breach of any representation or warranty of 3M contained in Sections 7.1 or 7.2 of this Agreement, (ii) any claim by a
Third Party for damages of any kind by or relating to Purchased Assets, or 3M’s, its Affiliates or licensees use thereof, and (iii) the exercise of the grantback license in Section 3.6 by 3M or any Third Party, to the extent such
damages under (i) – (iii) were incurred prior to the Closing Date. 
 8.2 COLEY Indemnification. COLEY shall defend,
indemnify and hold 3M, 3M IPC, their Affiliates, directors, officers and shareholders harmless against and with respect to any and all Third Party claims, losses, injuries, damages, deficiencies, liabilities, obligations, assessments, judgments,
costs and expenses, including (except as otherwise expressly provided in this Agreement) costs and expenses of litigation and reasonable attorneys’ fees to 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 21 

 
the extent caused by any material breach of any representation or warranty of COLEY contained in Sections 7.1 or 7.3 of this Agreement, and any claim by a
Third Party for damages of any kind by or relating to COLEY’s or its Affiliates’ or licensees’, development, use, testing, manufacturing, sale, marketing, licensing or enforcement of, or any Product relating to, the Purchased Assets,
arising on or after the Closing Date. 
 8.3 Limitation of Liability. In no event shall a Party be liable to any other
Party for any indirect, incidental, special, punitive or consequential damages in any way related to this Agreement or the performance or non-performance of this Agreement, under any theory of law or equity, including but not limited to, contract,
tort or strict liability. 
 ARTICLE 9. TERM AND TERMINATION 
 9.1 Term of Agreement. The term of this Agreement shall commence upon the Closing Date and continue until the later of (i) expiration of all Patent Rights licensed or assigned under this Agreement, or
(ii) COLEY’s obligations to make payments under Article 4 , unless terminated earlier pursuant to Section 9.2. 
 9.2
Material Breach. Upon material breach by a Party in the performance of any material obligation or warranty in this Agreement that results in significant harm, or potential harm, to another Party, the non-breaching Party may give notice in
writing to the Party in breach, and the breaching Party shall have 90 days thereafter to cure the breach. If the breaching Party does not cure or institute measures to substantially cure such breach within the 90 days, the non-breaching Party shall
have the right to terminate. In the event of termination by 3M for material breach by COLEY, all licenses from 3M IPC shall terminate and COLEY shall upon request assign, and if such breach is a failure to pay any of the annual $5 million payments
under Section 4.1 Coley hereby does assign, to 3M and 3M IPC all rights to the Assigned Patent Rights, Regulatory Filings, and Assigned Agreements. 
 9.3 Disputed Breach. If COLEY disputes in good faith the existence or materiality of a breach specified in a notice provided by 3M pursuant to Section 9.2 other than breach for failure to make the payments
under Section 4.1, and COLEY provides notice to 3M of such dispute within the applicable 90 day cure period, 3M shall not have the right to terminate this 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 22 

 
Agreement unless and until the existence of such material breach by COLEY has been determined in accordance with Section 10.7 and COLEY fails to cure
such breach within sixty (60) days following such determination (except to the extent such breach involves the failure to make a payment when due, which breach must be cured within ten (10) business days following such determination). It
is understood and acknowledged that during the pendency of such a dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations hereunder. 

ARTICLE 10. MISCELLANEOUS 
 10.1 Approvals.
In any provision of this Agreement where one Party is required to obtain the consent or approval of the other Party before taking some action, the parties agree that such consent or approval shall not be unreasonably withheld. This Section 10.1
shall apply in all instances, except where the other provision specifically leaves a decision to the sole discretion of a Party. 
 10.2
Events of Excused Performance. Neither COLEY nor 3M (nor 3M IPC if applicable) shall be considered in default or be liable to the other Party for any delay in performance or non-performance caused by circumstances beyond the reasonable
control of such Party, including but not limited to acts of God, explosion, fire, flood, earthquake, war whether declared or not, accident, labor strike or labor disturbances, sabotage, transportation strike or interference, order or decrees of any
court or action of governmental authority or shortages in or an inability to procure materials beyond 3M’s or COLEY’s reasonable control; provided, however, that diligent efforts are made to resume performance as quickly as possible.

 10.3 Notices. Except as otherwise provided herein, any notice or other communications sent or delivered hereunder shall be in
writing and shall be effective if hand delivered or if sent by express delivery service or certified or registered mail, postage prepaid or by facsimile transmission. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 23 

 If to 3M and 3M IPC, to: 
 Chief Intellectual Property Counsel 
 3M Office of Intellectual Property Counsel 
 3M Center, Bldg. 220-10W 
 St. Paul, Minnesota
55144-1000 
 Fax Number: 651-736-3833 
 If to
COLEY, to: 
 Coley Pharmaceutical Group, Inc. 
 93 Worcester Street, Suite 101 
 Wellesley, MA 02481, U.S.A. 
 Attention: President and CEO 
 Facsimile:
1-781-431-6403 
 with a copy to: 
 Coley
Pharmaceutical Group, Inc. 
 93 Worcester Street, Suite 101 
 Wellesley, MA 02481, U.S.A. 
 Attention: Senior Vice President and General Counsel 
 Facsimile: 1-781-431-6403 
 or to such address as a Party
shall hereafter designate by notice to the other Party. A notice shall be deemed to have been given on the date of delivery to the Party. 
 10.4 Assignability. This Agreement and the rights hereunder shall be assignable by a Party at its sole discretion provided any assignee thereof is in good financial standing and confirms in writing to the other Party its intent to
accept and comply in good faith with all the terms of this Agreement. 
 10.5 Waiver. The failure of any Party at any time to require
performance by the other Party of any provision of this Agreement shall not affect the right of such aggrieved Party to require future performance of that provision, and any waiver by any Party of any breach of any provision of this Agreement must
be in writing to be effective and shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 24 

 10.6 Relationship of Parties. Nothing contained in this Agreement shall create a partnership or
joint venture between the Parties, and the Parties shall be considered independent contractors. Except as specifically provided herein, neither of the Parties shall hold itself out as the agent of the other, nor shall either of the Parties incur any
indebtedness or obligation in the name of, or which shall be binding on the other, without the prior written consent of the other. No employees or agents of a Party shall be deemed employees or agents of the other Party. 
 10.7 Dispute Resolution. All disputes between the Parties relating to this Agreement shall be resolved in the following order of preference:
(i) by good faith negotiations between representatives of 3M, 3M IPC and COLEY who have authority to fully and finally resolve the dispute; (ii) in the event such representatives are unable to resolve such dispute within a thirty
(30) day period, either Party may invoke the provisions of this Section 10.7. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach thereof, including any question regarding this Agreement’s
existence, termination or validity, shall be referred to and finally settled by binding arbitration, in accordance with the rules of the American Arbitration Association in force on the date the demand for arbitration is filed. The demand for
arbitration may be filed by either Party within a reasonable time after the controversy or claim has arisen, but no later than after the date upon which institution of legal proceedings shall be barred by the applicable statute of limitations. There
shall be three (3) arbitrators, each Party to designate one arbitrator and the two Party-designated arbitrators to select the third arbitrator. The Party initiating recourse to arbitration shall include in its notice of arbitration its
appointment of an arbitrator. The place of arbitration shall be Delaware. The language to be used in the arbitral proceedings shall be English. Any determination by such arbitration shall be final and conclusively binding, and shall not include any
damages expressly prohibited by Section 8.3. Judgment on the arbitral award may be entered in any court having jurisdiction thereof. All costs incurred in connection with such arbitration, including reasonable attorneys’ fees, shall be
borne by the Party which incurs the costs; provided that a Party which is determined by the arbitral tribunal to have been in willful default of the provisions of this Agreement shall bear all costs of arbitration. Nothing herein shall preclude
either party from seeking injunctive relief to enforce specific performance under the contract or to prevent immediate, irreparable harm to its interests. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 25 

 10.8 Governing Law. This Agreement shall be governed by and construed under Delaware law,
notwithstanding any choice of law provision to the contrary. 
 10.9 Entire Agreement/Interpretation. This Agreement and any previous
Confidentiality Agreements signed by the Parties constitute the entire understanding of the Parties hereto and cancels and supersedes all previous agreements between the Parties with respect to the matters contained herein. No modification of this
Agreement or terms or conditions hereof shall be binding upon a Party unless approved in writing by an authorized representative of each of the Parties. This Agreement has been prepared jointly and shall not be strictly construed against a Party.

 10.10 Partial Invalidity. In case any one or more of the provisions contained herein shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision or
provisions had never been contained herein unless the deletion of such provision or provisions would result in such a material change as to cause completion of the transactions contemplated herein to be impossible or significantly frustrated and
provided that the performance required by this Agreement with such clause deleted remains substantially consistent with the intent of the Parties. 
 10.11 Required Disclosure. If a Party is required by judicial or administrative process to disclose Information that is subject to the non-disclosure provisions of Section 9.1, then such Party shall promptly inform the other
Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure obligations. Information that is disclosed by judicial or administrative process shall remain otherwise subject to
the confidentiality and non-use provisions of Section 9.1, and the Party disclosing Information pursuant to law or court order shall take all steps reasonably necessary, including without limitation obtaining an order of confidentiality, to
ensure the continued confidential treatment of such Information. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 26 

 10.12 Disclosure of Financial Terms. Each Party shall have the further right to disclose the
financial terms of this Agreement under a confidentiality obligation no less stringent than those contained in this Agreement, to any bona fide potential acquirer, merger partner, potential provider of financing and existing stockholder or investor
of such Party and their respective advisors. 
 10.13 SEC Filings. The Parties shall agree in advance with each other on the terms of
this Agreement to be redacted in any Securities and Exchange Commission filings; provided, that, each Party shall have the right to comply with any requests of the SEC to include in any such filing previously redacted information. 
 10.14 Publicity/Use of Names. Except as expressly set forth in this Agreement, no disclosure of the existence, or the terms, including the
financial terms, of this Agreement may be made by either Party, in any publicity, promotion, news release or disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other Party, except as may
be required by Applicable Laws. Notwithstanding anything to the contrary in this Section 10.14, the Parties shall have the right to issue a press release with respect to this Agreement following signature which reasonably reflects the overall
scope and nature of the transaction. Each Party shall upon request provide reasonable cooperation in reviewing the content of any press release, but the issuing Party is fully responsible for the content of any press release it issues. Either Party
may make subsequent public disclosure of the contents of such press release or any subsequent press release without approval of the other Party. 
 10.15 Headings. The headings of the Articles or Sections of this Agreement are for the convenience of the Parties only and shall not be deemed a substantive part of this Agreement. 
 10.16 3M Affiliates. 3M shall cause its Affiliates to comply with this Agreement. 
 10.17 COLEY Affiliates. COLEY shall cause its Affiliates to comply with this Agreement. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 27 

 10.18 Execution. This Agreement may be executed by counterparts and by facsimile transmission of
separately signed signature pages to the other Parties, followed by mail of the originals. 
 Balance of page intentionally left blank

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 28 

 IN WITNESS WHEREOF, authorized representatives for each of the Parties hereto have caused this Agreement to be duly
executed in duplicate as of the date and year above stated. 
  

									
	ACCEPTED AND AGREED TO:	 		 	
			
	3M COMPANY	 		 	COLEY PHARMACEUTICAL GROUP, INC
			
	By:     /s/ John Sampson        	 		 	By:     /s/ Robert L. Bratzler        
			
	Print Name:     John Sampson        	 		 	Print Name:     Robert L. Bratzler        
			
	Title: General Manager/Vice President, 3M Pharmaceuticals Division	 		 	Title: President and Chief Executive Officer

  

			
	3M INNOVATIVE PROPERTIES COMPANY
	
	By:     /s/ Robert W. Sprague        
	
	Print Name:     Robert W. Sprague        
	
	Title:     Secretary        

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 29 

 SCHEDULE A 
 ASSIGNED AGREEMENTS 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 30 

 SCHEDULE B 
 ASSIGNED PATENT RIGHTS ASSIGNMENT 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 31 

 SCHEDULE B-1 
 ASSIGNED PATENT RIGHTS LIST 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 32 

 SCHEDULE C 
 LICENSED PATENT RIGHTS 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 33 

 SCHEDULE D 
 KNOW-HOW 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 34 

 SCHEDULE E 
 REGULATORY FILINGS 
 Regulatory Filings and Information 
 IND Numbers 
  

							
	 Compound
	 	Indications	 	IND Number	 	Availability
				
	[***]	 	Melanoma, IV	 	66,797	 	Transfer to Buyer
				
	[***]	 	Melanoma, topical	 	68,761	 	Transfer to Buyer
				
	EU Development Programs	 		 		 	
				
	Compound	 	Indication	 	EUDRACT Number	 	Availability
				
	[***]	 	Melanoma, IV	 	2004-003910-41	 	Transfer to Buyer
				
	Other Information	 		 		 	
				
	[***]	 	Hepatitis C	 	Pre-IND meeting package	 	Transfer, pdf only
				
	[***]	 	Viral Warts	 	Pre-IND meeting package	 	Transfer, pdf only
				
	[***]	 	Allergy/Asthma	 	Pre-IND meeting package	 	Transfer, pdf only

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 35 

 SCHEDULE F 
 TANGIBLE ASSETS 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 36 

 SCHEDULE G 
 DISCLOSURE SCHEDULE 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 37 

 SCHEDULE H 
 VACCINE ADJUVANT PATENTS 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 38 

 SCHEDULE I 
 [***] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 39License Agreement, dated as of June 26, 2007

 Exhibit 10.4 
 Portions of this Exhibit were omitted and have been filed separately with the Secretary of 
 the
Commission pursuant to the Company’s application requesting confidential treatment 
 under Rule 24b-2 of the Exchange Act. 

 COLEY PHARMACEUTICAL GROUP, INC. 
 And 
 DYNAVAX TECHNOLOGIES CORPORATION 
 LICENSE AGREEMENT 
  

 Dated June 26, 2007 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 

 LICENSE AGREEMENT 
 This LICENSE AGREEMENT (this “Agreement”), effective as of June 26, 2007 (the “Effective Date”), is between Coley Pharmaceutical Group, Inc., a Delaware corporation located at 93
Worcester Street, Suite 101, Wellesley, Massachusetts 02481 USA, and its Affiliates (collectively, “Coley”), and Dynavax Technologies Corporation, a Delaware corporation having a principal place of business at 2929 Seventh Street,
Suite 100, Berkeley, California 94710 USA and its Affiliates (“Licensee”) (each, a “Party” and collectively, the “Parties”). 
 RECITALS 
 WHEREAS, Coley is the owner or licensee of certain rights, title, and
interests in proprietary technologies involving immunomodulatory oligonucleotides; and 
 WHEREAS, Licensee has developed and/or is developing or evaluating
a vaccine containing an HBsAg Antigen (as hereinafter defined) for the prevention of infection by Hepatitis B Virus in humans; and 
 WHEREAS, Licensee
desires to obtain a license under the Patents (as hereinafter defined) in the Field (as hereinafter defined) and in the Territory (as hereinafter defined), and Coley desires to grant Licensee such rights and license; and 
 NOW, THEREFORE, in consideration of the premises and covenants contained herein and other good and valuable consideration, the adequacy of which is hereby acknowledged,
and intending to be legally bound, the Parties hereby agree as follows: 
  

	1.	DEFINITIONS. 

 1.1 General. 
 Unless otherwise specified, references in this Agreement to any section are references to such section of this Agreement and, unless otherwise specified, references in
any section or definition to any clause are references to such clause of such section or definition. Terms which are defined in this Agreement shall apply equally to the singular and plural forms of the terms defined. Whenever the context may permit
or require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The term “including” means including, without limiting the generality of any description proceeding such term. Each reference herein to any
Person shall include a reference to such Person’s permitted successors and assigns. Unless otherwise specified, references to any agreement, instrument or other document in this Agreement refer to such agreement, instrument or other document as
originally executed or, if subsequently varied, replaced or supplemented from time to time, as so varied, replaced or supplemented and in effect at the relevant time of reference thereto. References to “dollars” or “$” are to
United States dollars. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 1 

 1.2 Defined Terms. 
 As used in this Agreement, the following terms shall have the following respective meanings: 
 (a)
“Affiliate” shall mean any individual or entity directly or indirectly controlling, controlled by or under common control with a Party to this Agreement. For purposes of this definition, the term “control” means
(i) direct or indirect ownership of more than fifty percent (50%) of the voting interest in the entity in question, or more than fifty percent (50%) interest in the income of the entity in question; provided, however,
that if local law requires a minimum percentage of local ownership, in addition to the foregoing clause, control will also be established by direct or indirect beneficial ownership of one hundred percent (100%) of the maximum ownership
percentage that may, under such local law, be owned by foreign interests; or (ii) possession, directly or indirectly, of the power to direct or cause the direction of management or policies of the entity in question (whether through ownership
of securities or other ownership interests, by contract or otherwise). 
 (b) “Agreement” shall have the
meaning set forth in the first paragraph of this Agreement. 
 (c) “Antigen” shall mean the [***] antigen.

 (d) “Business Day” shall mean a day other than a Saturday or Sunday on which banking institutions in New
York, New York are open for business. 
 (e) “Claim” shall mean any claim, demand, action or other
proceedings (including for personal injury, death or disability) by a Third Party. 
 (f) “Coley” shall have
the meaning set forth in the first paragraph of this Agreement. 
 (g) “Coley Indemnified Party” shall have
the meaning set forth in Section 10.1. 
 (h) “Commercially Reasonable Efforts” shall have the meaning
set forth in Section 4.1. 
 (i) “Compound” shall mean an immunomodulatory oligonucleotide identified by
Licensee as [***], having a [***] and the nucleotide base sequence [***]. 
 (j) “Confidential Information”
shall mean any confidential and proprietary scientific, technical, commercial, marketing or other business information or Data furnished, directly or indirectly (including in connection with meetings with Regulatory Authorities or Third Parties),
and whether in writing, 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 2 

 
orally or otherwise, by one Party or one of its Affiliates (the “Disclosing Party”) to the other Party or one of its Affiliates (the
“Receiving Party”) pursuant to or in connection with this Agreement (including the negotiation of this Agreement) or the activities or transactions contemplated hereby or thereby. 
 (k) “Data” shall mean all data and other information included or referenced in a Submission. 
 (l) “Delivery Method” for the Licensed Product shall mean [***] delivery. 
 (m) “Develop” shall mean to engage in Development. 
 (n) “Development” shall mean all activities related to research, preclinical and other non-clinical testing, test method
development, process development, Manufacturing scale-up, qualification and validation, quality assurance/quality control and clinical trials, including Manufacturing in support thereof, statistical analysis and report writing, the preparation and
submission of any application for Regulatory Approval, regulatory affairs with respect to the foregoing and all other activities necessary or reasonably useful or otherwise requested or required by a Regulatory Authority as a condition or in support
of obtaining or maintaining a Regulatory Approval. 
 (o) “Disclosing Party” shall have the meaning set forth
in Section 1.2(j). 
 (p) “Effective Date” shall have the meaning set forth in the first paragraph of
this Agreement. 
 (q) “EU Major Market Country” shall mean [***]. 
 (r) “Exploit” and cognates thereof shall mean to make, have made, import, use, sell, or offer for sale, including to
Develop, register, modify, enhance, improve, Manufacture, have Manufactured, store, formulate, export, transport, distribute, promote, market, or otherwise dispose of. 
 (s) “FDA” shall mean the United States Food and Drug Administration or any successor entity. 
 (t) “Field” shall mean the use of the Licensed Product for the prevention of infection by Hepatitis B Virus in humans.
The Field specifically excludes any product for the prevention of disease, indications or disorders other than Hepatitis B Virus in humans and any product for the treatment of any disease, indications or disorders. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 3 

 (u) “First Commercial Sale” shall mean, with respect to the Licensed
Product and a particular country in the Territory, the first transaction by Licensee or a Sublicensee that transfers to an arm’s-length Third Party purchaser, for value, title and right of physical possession of the Licensed Product for use in
the Field in the country (other than named patient sales). Notwithstanding the provisions of the preceding sentence, transfer of possession and title to an Affiliate shall not constitute a First Commercial Sale unless the Affiliate is an end user of
the Licensed Product. 
 (v) “Indemnitee” shall have the meaning set forth in Section 10.3. 

(w) “Indemnitor” shall have the meaning set forth in Section 10.3. 
 (x) “Iowa Agreement” shall mean that certain License Agreement by and between CpG ImmunoPharmaceuticals, Inc. (the
predecessor corporation to Coley) and UIRF, dated March 31, 1997, as amended March 7, 2001, as it exists on the Effective Date. A redacted copy of the Iowa Agreement is attached hereto as Exhibit B. 
 (y) “Large Pharmaceutical Company” shall mean any pharmaceutical or biotechnology company that has at least [***] in aggregate
annual pharmaceutical net sales for its most recently-completed fiscal year (consisting of 12 consecutive months) based on data provided by IMS International, or if such data is not available, such other reliable data as determined by Licensee and
agreed to in writing by Coley, such agreement not to be unreasonably withheld. 
 (z) “Liability” shall have
the meaning set forth in Section 10.1. 
 (aa) “Licensed Product” shall mean a prophylactic vaccine
containing the Compound co-formulated with the Antigen for delivery by the Delivery Method. No Licensed Product(s) may be developed for the prevention, treatment or control of any cancer nor may any clinical trial be conducted with clinical
endpoints of prevention, treatment or control of any cancer. 
 (bb) “Licensee” shall have the meaning set
forth in the first paragraph of this Agreement. 
 (cc) “Licensee Indemnified Party” shall have the meaning
set forth in Section 10.2. 
 (dd) “Manufacture” and “Manufacturing” shall mean, with
respect to a product or compound, the manufacturing, processing, formulating, packaging, labeling, holding and quality control testing of such product or compound. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 4 

 (ee) “Net Sales” shall mean the gross amount invoiced by Licensee and
its Affiliates and its Sublicensees for sales of the Licensed Product for end use or consumption to Third Parties that are not Affiliates or Sublicensees of the selling party (unless such purchasing Affiliate or Sublicensee is the end user of the
Licensed Product, in which case the amount billed therefore shall be deemed to be the same amount that would be billed to a Third Party end user in an arms-length transaction) in the Territory, less the total of the following deductions to the
extent they are included in the gross invoiced sale price of the Licensed Product or otherwise directly paid or incurred by Licensee or its Affiliates or its Sublicensees with respect to the sale of the Licensed Product: 
 (i) trade, cash, and/or quantity discounts not already reflected in the amount invoiced; 
 (ii) excise, sales and other consumption taxes and customs duties to the extent included in the invoice price; 
 (iii) freight, insurance and other transportation charges to the extent included in the invoice price; 
 (iv) amounts repaid or credited by reason of rejections and defects; 
 (v) returns or retroactive price reductions; 
 (vi) payments and rebates directly related to the sale of the Licensed Product, and 
 any other specifically
identifiable amounts included in gross amounts invoiced for the Licensed Product[***]. Any such exclusions shall be negotiated in good faith between the Parties and, if they are unable to agree, resolved in accordance with the dispute resolution
mechanism in Section 11.3, as determined in accordance with Licensee’s accounting methods (which are in accordance with its or its Sublicensee’s accounting standards as generally and consistently applied). 
 In the case of any sale or other disposal for value, such as barter or counter-trade, of the Licensed Product or part thereof, other than in an arm’s
length transaction exclusively for money, Net Sales shall be calculated as above on the fair market value of the consideration received by Licensee or its Affiliates or Sublicensees. 
 (ff) “OHRI Agreement” shall mean the License Agreement, effective as of September 1, 1998 between The Ottawa Health
Research Institute at the Ottawa Hospital (successor in interest to The Loeb Health Research Institute at Ottawa Hospital) (“OHRI”) and Coley Pharmaceutical Group, Inc. (formerly known as CpG ImmunoPharmaceuticals, Inc.), as amended
on September 25, 2001. A redacted copy of the OHRI Agreement is attached hereto as Exhibit C. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 5 

 (gg) “Party” and “Parties” shall have the meaning set
forth in the first paragraph of this Agreement. 
 (hh) “Patents” shall mean the patents and patent
applications listed on Exhibit A including (a) utility models, petty patents, design patents and certificates of invention, (b) any substitutions, divisions, continuations, continuations-in-part, reissues, renewals, registrations,
confirmations, re-examinations, extensions, supplementary protection certificates and the like, and any provisional applications, of any such patent or patent application, and (c) any unissued or ungranted foreign or international equivalent of
any of the foregoing. 
 (ii) “Permitted Assignment” shall have the meaning set forth in Section 11.1;

 (jj) “Person” shall mean an individual, sole proprietorship, partnership, limited partnership, limited
liability partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, or similar entity or organization, including a government or political subdivision, department or
agency of a government, or an academic or research institution. 
 (kk) “Receiving Party” shall have the
meaning set forth in Section 1.2(j). 
 (ll) “Regulatory Approval” shall mean the marketing
authorization (including pricing approval or reimbursement approval, if applicable to the sale) of the Licensed Product in a country in the Territory, in each case by the appropriate Regulatory Authority. 
 (mm) “Regulatory Authority” shall mean, with respect to each country in the Territory, the government agency or health
authority that regulates and is responsible for granting approvals for the Manufacture, marketing and/or sale of pharmaceutical products in such country. 
 (nn) “Regulatory Milestone” shall have the meaning set forth in Section 3.2. 
 (oo) “Regulatory Milestone Payment” shall have the meaning set forth in Section 3.2. 
 (pp)
“Royalty Payments” has the meaning set forth in Section 3.3(a). 
 (qq) “Royalty
Period” shall mean the initial partial Royalty Quarter commencing on the date of the First Commercial Sale in any country in the Territory and every complete or partial Royalty Quarter thereafter with respect to which Licensee has the
obligation to make Royalty Payments under Section 3. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 6 

 (rr) “Royalty Report” shall have the meaning set forth in
Section 3.3(b). 
 (ss) “Royalty Quarter” shall mean the respective periods of three
(3) consecutive calendar months ending on March 31, June 30, September 30 and December 31. 
 (tt) “Royalty Year” shall mean each successive period of twelve (12) months commencing on January 1 and ending on December 31. 
 (uu) “Submission” shall mean an application to obtain Regulatory Approval by a Regulatory Authority. 
 (vv) “Sublicensee” shall mean a Third Party who has been granted the right by Licensee strictly for the purpose of
commercializing the Licensed Product. 
 (ww) “Term” shall have the meaning set forth in Section 6.1.

 (xx) “Territory” shall mean all the countries of the world. 
 (yy) “Third Party” shall mean any Person other than Coley or Licensee. 
 (zz) “Third Party Claim” shall mean all claims of any Third Party that are subject to indemnification as provided for in
Sections 10.1 or 10.2. 
 (aaa) “UIRF” shall mean the University of Iowa Research Foundation. 
 (bbb) “Valid Claim” shall mean any claim from an issued and unexpired Patent that (a) has not been revoked or held
unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction from which no appeal can be taken or has been taken within the time allowed for appeal, (b) has not been abandoned, disclaimed, denied or
admitted to be invalid or unenforceable through reissue or disclaimer or otherwise, and (c) provides exclusionary and enforceable rights with respect to the claimed subject matter. 
 (ccc) “Withholding Taxes” shall have the meaning set forth in Section 3.1(a). 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 7 

	2.	LICENSE GRANT. 

 2.1 Non-Exclusive License Grant to Licensee.

 Subject to the terms of this Agreement, Coley shall grant, and hereby grants, to Licensee and Licensee hereby accepts, a non-exclusive, royalty-bearing
license, with the right to grant sublicenses as defined in Section 2.2, below, under the Patents, including the patents listed in Exhibit A which are subject to the terms of the OHRI Agreement and the UIRF Agreement (i) to Exploit the
Licensed Product in the Field in the Territory and (ii) to Manufacture or have Manufactured the Compound in connection with such Exploitation of the Licensed Product. 
 2.2 Right to Grant Sublicenses. 
 (a) Sublicensees. 
 Licensee shall have the right to grant sublicenses to Sublicensees solely to Exploit the Licensed Product on behalf of Licensee provided that: (i) it shall be a
condition of any such sublicense that the Sublicensee agrees to be bound by all of the applicable obligations set forth in this Agreement; (ii) if Licensee grants such sublicense, Licensee shall be deemed to have guaranteed that such
Sublicensee shall fulfill all of Licensee’s obligations under this Agreement applicable to the subject matter of such sublicense; and (iii) such sublicense shall not reduce or delay payments otherwise due and owing to Coley by Licensee
under this Agreement. 
 (b) Large Pharmaceutical Company. 
 Licensee shall have the right to grant [***] of all of the provisions of this Agreement to a Large Pharmaceutical Company provided that: (i) it shall be a condition of the sublicense that the Large Pharmaceutical
Company agrees to be bound by all of the applicable obligations set forth in this Agreement; (ii) if Licensee grants such sublicense, Licensee shall be deemed to have guaranteed that such Large Pharmaceutical Company shall fulfill all of
Licensee’s obligations under this Agreement applicable to the subject matter of such sublicense; and (iii) the sublicense shall not reduce or delay payments otherwise due and owing to Coley by Licensee under this Agreement. 
 Any sublicense agreement with a Large Pharmaceutical Company shall provide in the event of an early termination of this Agreement (other than a termination for
convenience by Licensee pursuant to Section 6.2 (a) or by Coley pursuant to Section 6.2 (b) (ii)) for the termination of the sublicense and the conversion of the sublicense to a license directly between Coley and the Large
Pharmaceutical Company on substantially the same terms as this Agreement. Further, if Licensee has agreed to grant a sublicense to a Large Pharmaceutical Company and [***] For the avoidance of doubt, [***] 
 2.3 Limitations. 
 Except as specifically provided in Section 2.1
(including the right to grant sublicenses pursuant to Section 2.2), Licensee shall have no rights to use the Patents for any other purpose. Licensee acknowledges and agrees that Coley’s right to terminate the Agreement in the event that
Licensee takes any of the actions described in Section 6.2 (c) was expressly bargained for and agreed to by the parties and is a necessary condition for obtaining and maintaining the licenses provided in this Section 2. No other
rights, express or implied, are granted to Licensee pursuant to this Agreement except as expressly granted herein. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 8 

 2.4 Option. 
 Effective upon written notice to Coley, Licensee may [***] 
  

	3.	PAYMENTS AND ROYALTIES. 

 3.1 Up-Front Payment. 

In partial consideration of (i) Coley’s investment in the Patents and (ii) the license granted to Licensee pursuant to Section 2.1, Licensee shall
make a non-refundable, non-creditable up-front license fee payment of Five Million Dollars ($5,000,000.00). Such up-front license fee shall be payable by Licensee within two business days of the execution of this Agreement by both Parties.

 3.2 Regulatory Milestone Payments. 
 At any point in
time when a Regulatory Milestone (as defined below) is achieved for the Licensed Product by either Licensee, its Affiliates or Sublicensees, Licensee shall promptly notify Coley of the achievement of said Regulatory Milestone and shall pay Coley the
amount corresponding to the Regulatory Milestone achieved hereunder (the “Regulatory Milestones”) set forth below (each, a “Regulatory Milestone Payment”). Each Regulatory Milestone Payment shall be immediately due
and payable by Licensee. Each Regulatory Milestone Payment shall be payable only once. 
  

			
	 Regulatory Milestone Payments
	  	 Regulatory Milestone Payment

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

 3.3 Royalty Payments. 
 (a) Royalty Payments Due. Licensee and its Sublicensees shall pay to Coley royalty payments on the Net Sales of the Licensed
Product in the amounts set forth below (“Royalty Payments”): 
 (i) With respect to Net Sales of the Licensed
Product during the period in which the Licensed Product is covered by a Valid Claim, Licensee shall pay Coley a royalty of [***] percent ([***]%) of such Net Sales. 
 Royalty Payments shall be due for sale of the Licensed Product under this Section 3.3(a) if there is a Valid Claim in either the country in which the Licensed Product is sold or in the country in which the
Licensed Product is Manufactured. In any event, only one (1) Royalty Payment shall be due under this Section 3.3(a) for the Licensed Product sold even if more than one Valid Claim covers the Licensed Product. Royalty Payments shall [***]
for royalties or payments made to Third Parties by Licensee for Third Parties’ technologies which are utilized or incorporated into or otherwise required to be paid regarding the Licensed Product. Coley shall be solely responsible for any
payments owed to UIRF and OHRI due to the rights granted to Licensee pursuant to Section 2.1. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 9 

 (b) Tender of Royalty Payments and Royalty Reports. Within [***] after the
conclusion of each Royalty Quarter, Licensee shall tender payment of any Royalty Payments due under this Agreement and shall concurrently deliver to Coley a report on the Net Sales activity of Licensee during such Royalty Quarter (the
“Royalty Report”). If no Royalty Payment is due, the Royalty Report shall so state. All such Royalty Reports shall be considered Confidential Information of Licensee under this Agreement. Royalty Reports shall contain at least the
following information: 
 (i) Net Sales of the Licensed Product sold by Licensee and Sublicensee(s) on a country-by-country
basis (including number of units sold during the applicable Royalty Quarter); and 
 (ii) total Royalty Payments due with
respect to Net Sales of the Licensed Product sold by Licensee and Sublicensee(s) in each country. 
 (c) Period During
Which Royalties Are Payable. Royalty Payment obligations under this Section 3.3 shall become effective on a country-by-country basis upon the First Commercial Sale of the Licensed Product and continue thereafter until there are no Valid
Claims covering the Licensed Product in such country. Upon expiration of the period during which Licensee or Sublicensee is obligated to make Royalty Payments with respect to the Licensed Product, on a country-by-country basis, the rights granted to
Licensee pursuant to Section 2.1 with respect to the Licensed Product shall become perpetual, irrevocable, fully paid-up and royalty-free. 
 3.4
Withholding; Payments. 
 (a) Any payments made by Licensee or Sublicensee to Coley under this Agreement shall be
reduced by the amount that Licensee or Sublicensee is required to withhold pursuant to any applicable tax law (“Withholding Taxes”). Licensee shall submit reasonable proof of payment of the Withholding Taxes to Coley within a
reasonable period of time after such Withholding Taxes are remitted to the proper taxing authority. 
 (b) Any payments due
under this Section 3 shall be made in dollars, using a mutually acceptable method of payment. With respect to sales of the Licensed Product invoiced in a currency other than dollars, the Net Sales and amounts due to Coley hereunder shall be
expressed in the domestic currency of the Person making the sale, together with the dollar equivalent of the amount payable to Coley For each Royalty Quarter and each currency, such dollar equivalent shall be calculated using an exchange rate equal
to [***], or, if not so available, as otherwise agreed by the Parties. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 10 

 (c) Payments shall be made via wire transfer to: 
 [***] 
 3.5 Late Payments. 
 Any payments due under this Section 3 that are not made on or before the date specified under the terms of this Agreement shall bear interest, to the extent
permitted by law, at a rate equal at all times to the prime rate of interest announced publicly from time to time by Citibank, N.A., plus [***] percent ([***]%), but in no case higher than the maximum rate permitted by applicable law, for
the number of days delinquent. 
 3.6 Audit of Records. 
 (a) Records. Licensee and Sublicensees shall keep and maintain records of sales, importations, and other dispositions of the Licensed Product. The records required by this Section 3.6 shall be maintained
and available for inspection for a period of [***] following the Royalty Year to which they pertain. 
 (b) Audit.
Coley shall have the right, at Coley’s expense, to examine, through an independent certified public accounting firm reasonably acceptable to Licensee, those records of Licensee and Sublicensee as may be reasonably necessary to confirm the
accuracy of the Royalty Reports. Any such examination shall be made only upon not less than [***] prior written notice to Licensee or Sublicensee, as the case may be, during regular business hours, and within [***] after the end of Royalty Period;
provided, however, that such examination shall not take place more often than [***] per Royalty Year and shall not cover such records for more than the preceding [***] Royalty Years. Such accounting firm shall disclose to Coley only the final
audited Royalty Payment amounts to be paid by Licensee or Sublicensee. Upon the completion of an audit hereunder for any Royalty Year, the calculation of amounts payable with respect to such year shall be binding and conclusive upon Coley, and
Licensee and its Sublicensees shall be released from any liability or accountability with respect to amounts payable for such year. 
 (c) Audit Costs. In the event that any such inspection shows an underreporting or an underpayment in excess of [***] percent ([***]%) for any Royalty Year, then (i) Licensee or Sublicensee, as the case may be, shall pay
the reasonable costs of such examination charged by such accounting firm and in any event shall pay any additional sum, including interest charges as provided in Section 3.5 on any such additional sum shown to be due to Coley and (ii) such
audit will not count against the [***] per Calendar Year limit set forth in Section 3.6 (b) above. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 11 

	4.	DEVELOPMENT; DILIGENCE OBLIGATIONS. 

 4.1 Diligence
Generally. Licensee shall use commercially reasonable efforts consistent with the efforts and resources normally used for a product of its own discovery of similar market potential at a similar stage in its product life, taking into account the
competitiveness of the market place, the proprietary position of the product, the regulatory structure involved, the profitability of the applicable products and other relevant factors (“Commercially Reasonable Efforts”), (a) to
pursue the Exploitation of the Licensed Product in the U.S. and in one or more EU Major Market Countries and (b) to undertake investigations and actions required to obtain appropriate Regulatory Approval therefor. The Parties agree that the
diligence obligations set forth in this Section 4.1 shall [***] and the Parties further agree that [***]. 
  

	5.	SUPPLY OF MATERIALS; MARKING. 

 5.1 Manufacture of Compound and
Manufacturing Information. 
 (a) Supply of Compound. Coley shall not be obligated to supply any quantities of the
Compound to Licensee or Sublicensee(s). 
 (b) Licensee agrees that, to the extent required by the Iowa Agreement and
applicable law, the Licensed Product produced for sale in the United States and embraced by a Valid Claim under a Patent Right listed on Exhibit A with UIRF identified as an Assignee will be Manufactured substantially in the United States,
unless any waiver of such requirement is obtained. 
 (c) Manufacturing Information. In the event that Licensee or
Sublicensee(s) Manufacture(s) or has a Third Party Manufacture Compound and uses information and/or intellectual property rights which result in a Regulatory Authority mandating changes to specifications for any immunomodulatory oligonucleotide and,
as a result, Coley is unable to obtain or Manufacture reasonable quantities of other immunomodulatory oligonucleotides and/or other immunomodulatory oligonucleotides in compliance with the mandate by such Regulatory Authority with respect to such
materials, Licensee or Sublicensee(s), as the case may be, shall use commercially reasonable efforts to provide Coley and its licensees with a license on commercially reasonable terms to the necessary information and/or intellectual property rights
to Manufacture the Compound and/or other immunomodulatory oligonucleotides in compliance with such specifications for any immunomodulatory oligonucleotide or the applicable mandate. In the event that Coley or Sublicensee(s) Manufacture(s) or has a
Third Party Manufacture Compound and uses information and/or intellectual property rights which result in a Regulatory Authority mandating changes to specifications for the Compound and, as a result, Licensee or its Sublicensee(s) is unable to
obtain or Manufacture reasonable quantities of the Compound in compliance with the mandate by such Regulatory Authority with respect to such materials, Coley shall use commercially reasonable efforts to provide Licensees and its sublicensees with a
license on 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 12 

 
commercially reasonable terms to the necessary information and/or intellectual property rights to Manufacture the Compound in compliance with such
specifications for the Compound or the applicable mandate. 
 5.2 Marking. 
 Licensee shall comply with the requirements as to the marking of the Licensed Product set forth in Article 7 of the Iowa Agreement. 
  

	6.	TERM AND TERMINATION. 

 6.1 Term. 
 The term of this Agreement shall begin on the Effective Date and, unless earlier terminated pursuant to this Section 6, continue on a country-by country basis until
the expiration or termination of the last Valid Claim with respect to such country (the “Term”). 
 6.2 Termination. 
 (a) Termination by Either Party; Termination by Licensee. Upon a material breach of this Agreement by either Party, the
non-breaching Party may provide written notice to the breaching Party specifying the material breach. If the breaching Party fails to cure the material breach during a [***] period (or in the case of a material breach of Section 4.1, a [***]
period) following the date on which the notice of breach is provided then the non-breaching Party shall have the right to terminate this Agreement. If such breach is not reasonably cured within such [***] but (1) the breaching Party is making a
bona fide effort to cure any such breach, such termination shall be delayed in order to permit the breaching Party a reasonable period of time to remedy the breach, or (2) if the breaching Party initiates a dispute resolution proceeding
pursuant to Section 11.3 with respect to such breach prior to the expiration of such [***] period, then such termination shall not become effective until [***] following the final conclusion of the dispute resolution proceeding if termination
is permitted by such resolution. Licensee shall have the right to terminate this Agreement for convenience upon [***] prior written notice to Coley. 
 (b) Termination by Coley. 
 (i) Coley shall have the right upon written notice to
Licensee to terminate this Agreement for non-payment of any amount due hereunder from Licensee to Coley if such non-payment shall continue uncured for a period ending (1) [***] following notice of such non-payment given by Coley to Licensee or,
(2) if Licensee initiates a dispute resolution proceeding pursuant to Section 11.3 with respect to such payment prior to the expiration of such [***] period, then [***] following the final conclusion of the dispute resolution proceeding if
termination is permitted by such resolution. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 13 

 (ii) Coley may terminate this Agreement in the event that Licensee or its Affiliates take
any action, direct or indirect: (a) to challenge the validity, scope, or enforceability of the Patents licensed to Licensee hereunder; or (b) to oppose, object to, provoke an interference toward or initiate or support any re-examination
proceedings challenging the Patents; provided that it shall not be grounds for terminating this Agreement if Licensee challenges the validity, scope, or enforceability of the Patents licensed to Licensee hereunder in defense of an action for
infringement of the Patents brought by Coley arising from Licensee’s activities outside of the scope of this Agreement. 
 (c) Termination for Insolvency. 
 (i) To the extent permitted by law, upon the filing or institution of
bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment of a substantial portion of the assets for the benefit of creditors (a “Bankruptcy Event”) by either Party, Coley, in the case of a
Bankruptcy Event by Licensee, or Licensee, in the case of a Bankruptcy Event by Coley, may terminate this Agreement; provided, however, that, in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective
if the subject Party consents to the involuntary bankruptcy or such proceeding is not dismissed within ninety (90) days after the filing thereof. 
 (ii) This Section 6.2(c) is without prejudice to any rights the non-Affected Party may have arising under any bankruptcy, reorganization, insolvency or similar laws, and Licensee expressly reserves the right to
maintain its license in effect pursuant to Section 11.17 with respect to a Bankruptcy Event involving Coley. 
 (d) No
Limitation on Other Rights. Nothing in this Agreement shall be construed to limit the rights of Licensee, upon a material breach by Coley, to maintain its license in full force and effect and pursue any remedies otherwise available at law or
equity. 
 6.3 Effects of Expiration or Termination. 
 (a) Surviving Provisions. The provisions of Sections 3 (with respect to payment obligations accruing prior to the date of expiration or termination), 6, 7, 8, 9, 10, and 11 shall survive expiration or
termination of this Agreement for any reason. 
 (b) Licensee Rights. Subject to the provisions of Section 6.3(a),
(i) upon expiration of the Term, the rights granted to Licensee pursuant to Section 2.1 shall become perpetual, irrevocable, fully paid-up and royalty-free, and (ii) subject to the following sentence, upon termination of this
Agreement by Coley pursuant to Section 6.2(a), 6.2(b) or 6.2(c) , the rights granted to Licensee pursuant to Section 2.1 shall terminate. Upon termination of this Agreement by Coley pursuant to Section 6.2(a), 6.2(b) or 6.2(c),
(i) Licensee shall [***] and (ii) Licensee shall with respect to any sales of the Licensed Product made prior to the termination of this Agreement [***], continue to provide Royalty Reports and to pay royalties on all Net Sales of the
Licensed Product as required hereunder. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 14 

 (c) Obligations Survive. Any termination of this Agreement shall be without
prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to termination. 
  

	7.	CONFIDENTIALITY. 

 7.1 Nondisclosure Obligation. 

Each Party shall use the Confidential Information of the other Party only in accordance with the activities contemplated by this Agreement and shall not disclose to
any Third Party any Confidential Information of the other Party, without the prior written consent of the other party or as expressly provided below. This obligation shall not apply to Confidential Information that: 
 (a) is known by the Receiving Party at the time of its receipt, and not through a prior disclosure by the Disclosing Party to the
Receiving Party, as documented by business records; 
 (b) at the time of disclosure or thereafter becomes published or
otherwise part of the public domain without breach of this Agreement by the Receiving Party; 
 (c) is subsequently disclosed
to the Receiving Party by a Third Party who has the right to make such disclosure; or 
 (d) is developed by the Receiving
Party independently of Confidential Information received from the Disclosing Party and such independent development can be properly demonstrated by the Receiving Party. 
 7.2 Permitted Disclosures. 
 Notwithstanding the provisions of Section 7.1, a Receiving Party may make the
following disclosures of Confidential Information received from the Disclosing Party: 
 (a) disclosures to governmental or
other regulatory agencies in order to gain approval to conduct Licensed Product trials or to market the Licensed Product, but such disclosure may be only to the extent reasonably necessary to obtain such authorizations upon consultation with the
other Party; 
 (b) disclosures to agents, consultants, Affiliates and/or other Third Parties as necessary for the research
and development, Manufacturing and/or marketing of the Licensed Product, or to complete a Permitted Assignment (as defined in Section 11.1), (or for such Persons to determine their interest in performing such activities or such Permitted
Assignment), in accordance with this Agreement on the condition that such Third Parties are or agree to be bound by confidentiality obligations substantially as restrictive and long as those contained in this Agreement; or 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 15 

 (c) disclosures required by law or court order, provided that notice is promptly
delivered to the Disclosing Party in order to provide it with an opportunity to seek a protective order or other similar order with respect to such Confidential Information and the Receiving Party thereafter discloses only the minimum information
reasonably required to be disclosed in order to comply with the request, whether or not a protective order or other similar order is obtained by the Disclosing Party. 
 7.3 Partial Disclosures. 
 Specific aspects or details of Confidential Information shall not be deemed to be within
the public domain or in the possession of a Party merely because the Confidential Information is embraced by more general information in the public domain or in the possession of such Party. Further, any combination of Confidential Information shall
not be considered in the public domain or in the possession of a Party merely because one or more individual elements of such Confidential Information are in the public domain or in the possession of such Party unless every feature of the
Confidential Information has been disclosed in accordance with the provisions herein. 
 7.4 Publicity. 
 Neither Coley nor Licensee shall issue any press release or other public disclosure relating to this Agreement except as mutually agreed. The joint press release
announcing the execution of this Agreement shall be substantially in the form as Exhibit D attached. Notwithstanding any other provision contained in this Section 7.4, either Party may make such public disclosure relating to this Agreement as
may be required by applicable law. Prior to any public disclosure relating to this Agreement pursuant to the preceding sentence, the Party proposing to make such disclosure shall provide reasonable notice thereof and the proposed contents of such
disclosure to the other Party and shall consult in good faith with the other Party regarding the timing and contents of any such disclosure. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 16 

	8.	MAINTENANCE AND ENFORCEMENT OF PATENTS. 

 8.1 Responsibility for
Patents. 
 Coley, by counsel it selects, shall have the sole right, but not the obligation, to prepare, file, prosecute and maintain all Patents in
Coley’s name and in countries designated by Coley at the sole discretion of Coley. 
 8.2 Infringement by Third Parties. 
 The Parties agree to provide each other written notice promptly after becoming aware of any infringement of the Patents in the Field (irrespective of the delivery method
used for the vaccine). Coley shall have the right, but not the obligation, under its own control and at its own expense, to prosecute any Third Party infringement of the Patents and/or to defend the Patents in any declaratory judgment action brought
by a Third Party which alleges invalidity, unenforceability, or non-infringement of the Patents. Subject to Section 8.4 below, Coley may enter into any settlement, consent judgment, or other voluntary final disposition of any infringement or
declaratory judgment action hereunder without the prior written consent of Licensee. 
 8.3 Infringement Claims. 
 If the Manufacture, sale or use of the Compound as used in the Licensed Product in the Field results in any claim, suit or proceeding filed by a Third Party alleging
patent infringement by Coley or Licensee or Sublicensee, such Party shall promptly notify the other Party in writing. In the event that one Party is sued subject to Section 8.4, the Party subject to such claim shall have the exclusive right to
defend and control the defense of any such claim, suit or proceeding, at its own expense, using counsel of its own choice; provided, however, that if Coley or Licensee and Coley together are sued with respect to the Licensed Product sold by Licensee
or Sublicensee, Coley shall have the exclusive right to take control of such defense. Licensee shall have the right to retain its own counsel at its sole cost and expense, and shall have the right to consult with Coley in any proceeding under this
Section 8.3. The Party subject to the claim shall keep the other Party hereto reasonably informed of all material developments in connection with any such claim, suit or proceeding. The Party not subject to the claim shall cooperate in all
reasonable respects with the Party subject to the claim in the defense of the claim. 
 8.4 Settlements. 
 No settlements, consent judgments, or other voluntary final dispositions of a dispute adversely affecting the rights or obligations of a Party or Sublicensee, including
the rights or obligations of the Party under this Agreement, shall be entered into in connection with any dispute, claim or proceeding described in Section 8.2 or 0 without the prior written consent of the adversely affected Party or
Sublicensee, such consent not to be unreasonably withheld or delayed. Without limiting the foregoing, no settlements, consent judgments, or other voluntary final dispositions of any dispute, claim or proceeding described in Section 8.2
or 0 adversely affecting the rights or 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 17 

 
obligations of Coley under the Patents shall be entered into without the prior written consent of Coley, such consent not to be unreasonably withheld or
delayed. The Parties shall comply with the provisions of Section 8.4 of the Iowa Agreement with respect to any settlement, consent judgment, or other voluntary final disposition of any suit relating to the subject matter of this Agreement.

 8.5 Recoveries and Damages. 
 Any recoveries and
damages received as a result of a dispute, claim or proceeding described in Section 8.2 or 8.3 or any settlement, consent judgment, or other voluntary final disposition thereof shall first go toward reimbursing the Parties or Sublicensee
for their respective costs and expenses of such suit. Thereafter, any remainder shall be [***]. 
 8.6 Subject to Iowa Agreement. 
 To the extent related to Patents under the Iowa agreement, the provisions of this Section 8 are subject to in all respects the provisions of the Iowa Agreement,
including Article 8 thereof. 
  

	9.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PARTIES. 

 9.1
Representations and Warranties of Each Party to the Other. 
 Each Party hereby represents and warrants to the other Party hereto, effective as of the
Effective Date, that: 
 (a) Such Party is a corporation duly organized and validly existing under the laws of the state or
other jurisdiction of its incorporation or formation; 
 (b) The execution and performance of this Agreement by such Party has
been duly authorized by all requisite corporate action; 
 (c) Such Party has the power and authority to execute and deliver
this Agreement and to perform its obligations hereunder, including the right, power and authority to grant the licenses granted herein; 
 (d) The execution 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 loan agreement, guaranty, financing agreement, agreement affecting the Licensed Product or the Compound, or other agreement or instrument binding or affecting it or its property; (ii) the provisions of
its charter documents or bylaws; or (iii) any order, writ, injunction or decree of any court or governmental authority entered against it or by which it or any of its property is bound; 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 18 

 (e) The execution and performance by such Party of this Agreement and its compliance with
the terms and provisions hereof do not and will not violate any law or regulation applicable to it; and 
 (f) This Agreement
has been duly authorized by all necessary corporate action on the part of such Party, has been executed and delivered by such Party and constitutes such Party’s legal, valid and binding obligation, enforceable against such Party in accordance
with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to the availability of particular remedies under general equity
principles. 
 9.2 Covenants of Licensee. 
 Licensee
hereby covenants with Coley that: 
 (a) It will comply with all of the obligations applicable to sublicensees of Coley under
the Iowa Agreement and OHRI Agreement; 
 (b) Licensee will not market or actively promote the Licensed Product for off-label
use outside the Field; and 
 (c) Licensee agrees not to take any further action, direct or indirect, in connection with
current patent opposition proceedings in Europe for the Patents, shall withdraw its participation in such proceedings, and shall not initiate any additional opposition proceedings for the Patents currently in opposition proceedings by the European
Patent Office. Licensee agrees to take any actions reasonably requested by Coley in connection with its withdrawal from opposition proceedings, shall not directly or indirectly oppose, object to, provoke an interference toward or initiate or support
any re-examination proceedings challenging the Patents and agrees to withdraw any challenge to the Patents, other than in defense of an action for infringement of the Patents. 
 9.3 Representations, Warranties and Covenants of Coley. 
 Coley hereby represents, warrants and covenants to Licensee,
effective as of the Effective Date, that: 
 (a) Coley owns or possesses adequate licenses or other rights to use the Patents
in the Field and to grant the rights and licenses herein; and 
 (b) (i) The Patents existing as of the Effective Date are
subsisting and have not been held by a court of competent jurisdiction to be invalid or unenforceable, in whole or in part; (ii) there are no claims, judgments or settlements against or amounts with respect thereto owed by Coley or any of its
Affiliates relating to the Patents, (iii) except as listed in Exhibit E, no claim or litigation has been brought or threatened by any Person alleging (A) that any Patent 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 19 

 
is invalid or unenforceable or (B) the Patents or the disclosing, copying, making, assigning, licensing or Exploitation of the Patents or products
embodying the Patents, including the Exploitation of the Licensed Product, violates, infringes or otherwise conflicts with any intellectual property or proprietary right of any Third Party; (iv) the conception, development and reduction to
practice of the Patents existing as of the Effective Date have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person; and (v) it has not received notice of any claim or litigation asserted
or commenced against it that would have an adverse effect on the rights granted to Licensee under this Agreement. 
 (c) (i)
The OHRI Agreement and Iowa Agreement are in full force and effect, Coley has the right to grant any and all sublicenses granted under this Agreement under each of the OHRI Agreement and Iowa Agreement and (ii) Coley has not received notice of
termination and is not aware of any facts or information that would, with the passage of time result in the termination of the OHRI Agreement or Iowa Agreement, respectively. 
 (d) Except as may be listed on Exhibit A , to the best of Coley’s knowledge, there are no patents or patent applications owned or
controlled by Coley as of the effective date of this Agreement that, but for the licenses granted in this Agreement, would be infringed by the Exploitation of the Licensed Product by the Licensee or its Sublicensees. If any such patent or patent
application is identified during the Term, at Licensees option it shall be included in the Patents licensed under this Agreement, without the payment of additional consideration by Licensee to Coley. 
 9.4 Bayh-Dole. 
 Both Parties acknowledge that the U.S. Public Health
Service may have certain rights, as provided in Bayh-Dole (Public Law 96-517 of 1980), to the Patents. 
  

	10.	INDEMNIFICATION AND LIMITATION OF LIABILITY. 

 10.1
Indemnification by Licensee. 
 Licensee shall indemnify, defend and hold harmless Coley, and each of its employees, officers, directors and agents (each,
a “Coley Indemnified Party”), from and against any and all liability, loss, damage, cost, and expense, including reasonable attorneys’ fees and reasonable expenses of litigation (collectively, a “Liability”),
arising out of any Third Party Claim which the Coley Indemnified Party may incur, suffer or be required to pay to the extent resulting from or arising in connection with (i) the breach by Licensee of any covenant, representation or warranty
contained in this Agreement; (ii) any negligent or wrongful act or omission of Licensee (its directors, officers, or agents, or distributors thereof) which is the proximate cause of injury, death 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 20 

 
or property damage to a Third Party; (iii) actual or asserted violations of any applicable law or regulation (other than patent or other intellectual
property law or regulation) by Licensee, Sublicensees or distributors by virtue of which the Licensed Product in the Field Manufactured, distributed or sold by Licensee, Sublicensees or distributors shall be alleged or determined to be adulterated,
misbranded, mislabeled or otherwise not in compliance with any such applicable law or regulation; (iv) claims for bodily injury, death, product liability, warranty of fitness or merchantability, or property damage attributable to the
development, Manufacture, distribution, sale or use of the Licensed Product in the Field by Licensee, Sublicensees or distributors; or (v) a recall of the Licensed Product in the Field Manufactured, distributed or sold by Licensee, Sublicensees
or distributors ordered by a governmental agency or required by a confirmed product failure as reasonably determined by Licensee, Sublicensees or distributors; except to the extent that such Liability arises in connection with or is otherwise
attributable to (A) a breach by Coley of this Agreement or (B) any manufacturing agreement into which Coley may enter pursuant to Section 5.1 or (C), in the case of clauses (ii) through (v), any negligent act or omission or
intentional misconduct on the part of Coley or any Liability for which Coley is required to provide indemnification under Section 10.2. 
 10.2
Indemnification by Coley. 
 Coley shall indemnify, defend and hold harmless Licensee and its employees, officers, directors and agents and its
Sublicensees (each, a “Licensee Indemnified Party”) from and against any Liability arising out of any Third Party Claim, which Licensee Indemnified Party may incur, suffer or be required to pay to the extent resulting from or
arising in connection with (i) the breach by Coley of any covenant, representation or warranty contained in this Agreement; (ii) any negligent or wrongful act or omission by Coley (or any of its licensees, licensors or their respective
directors, officers, or agents, or distributors thereof) which is the proximate cause of injury, death or property damage to a Third Party; (iii) any Third Party Claim that the granting of the rights and licenses herein by Coley violates any
rights of any Third Party, or (iv) claims for bodily injury, death, product liability, warranty of fitness or merchantability, or property damage attributable to the development, Manufacture, distribution, sale or use of the Compound or
pharmaceutical products incorporating the Compound by Coley, any of its licensees other than Licensee or their respective agents or distributors; except to the extent that such Liability arises in connection with or is otherwise attributable to
(A) a breach by Licensee of this Agreement or (B), in the case of clauses (ii) through (v), any negligent act or omission or intentional misconduct on the part of Licensee or any Liability for which Licensee is required to provide
indemnification under Section 10.1. 
 10.3 Indemnification Procedure. 
 Any Person seeking indemnification under this Section 10 (the “Indemnitee”) shall promptly notify the Party from whom indemnification is sought (the “Indemnitor”) in writing of
any Claim, and, subject to Section 8.3, the Indemnitor shall have the right to participate in, and, to the extent the Indemnitor so desires, to assume the defense thereof with counsel mutually satisfactory (consent not to be unreasonably
withheld or delayed) to the other Party by giving written notice to the Indemnitee and the other Party within thirty (30) days after receipt of written notice of such Claim from the Indemnitee; provided, however, that an Indemnitee shall

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 21 

 
have the right to retain its own counsel, with the fees and expenses to be paid (a) by the Indemnitor, if representation of such Indemnitee by the
counsel retained by the Indemnitor would be inappropriate due to actual or potential differing interests between the Indemnitee and any other party represented by such counsel in such proceeding; or (b) by Indemnitee in all other cases. In no
event shall the Indemnitor be liable for any Liabilities that result from any unreasonable delay by the Indemnitee in providing the written notice pursuant to the first sentence of this Section 10.3. In the event that it is ultimately
determined that the Indemnitor is not obligated to indemnify, defend or hold harmless an Indemnitee from and against such Claim, the Indemnitee shall reimburse the Indemnitor for any and all costs and expenses (including attorneys’ fees and
costs of suit) and any Liabilities incurred by the Indemnitor in its defense of such Claim with respect to the Indemnitee. The Indemnitee and its employees and agents shall reasonably cooperate with, and at the expense of, the Indemnitor and its
legal representatives in the investigation of any Claim covered by this Section 10. 
 10.4 Settlements. 
 Neither Party may settle a Claim without the consent of the other Party if such settlement would (a) impose any monetary obligation on the other Party,
(b) require the other Party to submit to an injunction, or (c) otherwise limit the other Party’s rights under this Agreement, such consent not to be unreasonably withheld or delayed in the case of clauses (b) and (c). Any payment
made by a Party to settle a Claim shall be, unless otherwise provided in Section 10.1 or 10.2, as the case may be, at its own cost and expense. 
 10.5 Limitation of Liability. 
 With respect to any claim by one Party against the other Party arising out of the performance or failure of
performance of the other Party under this Agreement, the Parties expressly agree that, except for a Party’s indemnification obligations pursuant to Section 10.1 or 10.2 with respect to Third Party claims, the liability of such Party
to the other Party for such breach shall be limited under this Agreement or otherwise at law or equity to direct damages only and in no event shall a Party be liable for punitive, special, incidental, multiple, exemplary or consequential damages.

 10.6 Insurance. 
 (a)
Licensee. Prior to or immediately upon the first administration of the Licensed Product in the Field to a human in accordance with this Agreement, and for a period of [***] after the last sale of the Licensed Product in the Field hereunder,
Licensee shall obtain and/or maintain, at its expense, product liability insurance in amounts which are reasonable and customary in the industry for companies of comparable size and activities. Such product liability insurance shall insure against
liability for personal injury, physical injury, and property damage. Licensee shall provide proof of insurance to Coley upon request. Licensee may satisfy this requirement by a representation that it is self-insured and/or maintains Third Party
liability insurance in amounts sufficient to meet the foregoing requirement. 
 (b) Coley. Prior to or immediately upon
the first administration of the Licensed Product in the Field to a human in accordance with this Agreement, as notified by 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 22 

 
Licensee to Coley, and for a period of [***] after the last sale of the Licensed Product in the Field hereunder, as notified by Licensee to Coley, Coley
shall obtain and/or maintain, at its expense, product liability insurance in amounts which are reasonable and customary in the industry for companies of comparable size and activities. Such product liability insurance shall insure against liability
for personal injury, physical injury, and property damage. Coley shall provide proof of insurance to Licensee upon request. Coley may satisfy this requirement by a representation that it is self-insured and/or maintains Third Party liability
insurance in amounts sufficient to meet the foregoing requirement. 
 10.7 Warranty Disclaimer. 
 EXCEPT AS EXPRESSLY MADE UNDER THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS, NOR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING
ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, WITH RESPECT, IN THE CASE OF COLEY, TO THE PATENTS OR, IN THE CASE OF LICENSEE, TO THE LICENSED PRODUCT OR THE COMPOUND USED THEREIN. 
 10.8 Performance by Subcontractors. 
 The Parties recognize that the
Licensee may perform some or all of its obligations under this Agreement through Third Party subcontractors, provided, however, that the Licensee shall remain responsible and liable for the performance by its Third Party subcontractors and shall
cause its Third Party subcontractors to comply with the provisions of this Agreement in connection therewith. 
  

	11.	MISCELLANEOUS. 

 11.1 Assignment. 
 Neither this Agreement nor any or all of the rights and obligations of a Party shall be assigned, delegated, sold, transferred, sublicensed (except as otherwise provided
herein) or otherwise disposed of, by operation of law or otherwise, to any Third Party without the prior written consent of the other Party, which shall not be unreasonably withheld, and any attempted assignment, delegation, sale, transfer,
sublicense or other disposition, by operation of law or otherwise, of this Agreement or of any rights or obligations hereunder contrary to this Agreement shall be a material breach of this Agreement by the attempting Party and shall be void and
without force or effect; provided, however, that either Party may, without such consent, assign this Agreement and its rights and obligations hereunder in connection with the transfer or sale of all or substantially all of its assets
or stock, in the event of its merger or consolidation or change in control or similar transaction, or, in the case of Licensee, in the event of a sale or transfer by Licensee of all or substantially all of its vaccine business related to the
Licensed Product in connection with the transfer or sale of all or substantially all of its business related to 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 23 

 
a Licensed Product (any such transaction described in this proviso, a “Permitted Assignment”). In the event of a Permitted Assignment
by Licensee, [***]. In addition, either Party may, without such consent, assign this Agreement and delegate its rights and obligations hereunder, in whole or in part, to an Affiliate; provided, however, that the Party making any such
assignment or delegations shall, notwithstanding such assignment or delegation, remain responsible for the full, complete and faithful performance of its obligations hereunder. This Agreement shall be binding upon, and inure to the benefit of, each
Party, and its permitted successors and assigns. 
 11.2 Governing Law. 
 This Agreement shall be governed by and construed in accordance with the laws of the state of New York, U.S.A. without regard to its conflict of law rules. 
 11.3 Dispute Resolution. 
 In the event of any dispute, controversy or
claim arising out of, relating to or in connection with any provision of this Agreement, the Parties shall try to settle their differences amicably and in good faith between themselves first, by referring the disputed matter to the respective Chief
Executive Officers of each Party, or any direct report designated by such Chief Executive Officer. In the event such executives are unable to resolve such dispute within a thirty (30) day period, either Party may invoke the provisions of this
Section 11.3. Except as provided in Section 11.4, any dispute, controversy or claim arising out of or relating to this Agreement, or the breach thereof, including any question regarding this Agreement’s existence, termination or
validity, shall be referred to and finally settled by binding arbitration, in accordance with the rules of the American Arbitration Association in force on the date the demand for arbitration is filed. The demand for arbitration may be filed by
either Party within a reasonable time after the controversy or claim has arisen, but no later than after the date upon which institution of legal proceedings shall be barred by the applicable statute of limitations. There shall be three
(3) arbitrators, each Party to designate one arbitrator and the two Party-designated arbitrators to select the third arbitrator. The Party initiating recourse to arbitration shall include in its notice of arbitration its appointment of an
arbitrator. The place of arbitration shall be New York, New York. The language to be used in the arbitral proceedings shall be English. Any determination by such arbitration shall be final and conclusively binding, and shall not include any damages
expressly prohibited by Section 10.5. Judgment on the arbitral award may be entered in any court having jurisdiction thereof. All costs incurred in connection with such arbitration, including reasonable attorneys’ fees, shall be borne by
the Party which incurs the costs. 
 11.4 No Arbitration of Patent Disputes. 
 Unless otherwise agreed by the Parties, disputes relating to the scope, validity, enforceability or infringement of Patents shall not be subject to arbitration, and shall be submitted to a court or patent office of
competent jurisdiction. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 24 

 11.5 Injunctive Relief and Jurisdiction. 
 Nothing in this Agreement shall be construed to limit or preclude a Party from bringing any action in any court of competent jurisdiction for injunctive or other provisional relief to compel the other Party to comply
with its obligations hereunder, whether before or during the pendancy of arbitration proceedings. The Parties agree that all such suits may, at the option of either Party, be initiated and maintained before the United States District Court for the
Southern or Eastern District of New York U.S.A. and both Parties submit to personal jurisdiction and to the service of process, pleadings and notices in connection with any and all actions seeking such injunctive or provisional relief to the court
referred to above. Notwithstanding the foregoing, any dispute regarding the validity, scope or enforceability of patents, trademarks or other intellectual property that is or can be the subject of registration with a governmental entity shall be
submitted to a court of competent jurisdiction in the territory in which such rights apply. 
 11.6 Waiver. 
 Any delay or failure in enforcing a Party’s rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of
such Party’s rights to the future enforcement of its rights under this Agreement, nor operate to bar the exercise or enforcement thereof at any time or times thereafter, excepting only as to an express written and signed waiver as to a
particular matter for a particular period of time. No waiver of a breach shall be deemed to be a waiver of a different or subsequent breach. 
 11.7
Independent Relationship. 
 Nothing herein contained shall be deemed to create an employment, agency, joint venture or partnership relationship between
the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose liability upon one Party for the act or failure to act of the other Party. Neither Party shall have any power to enter into any contracts or
commitments or to incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever. 
 11.8
Export Control. 
 This Agreement is made subject to any restrictions concerning the export of the Licensed Product or technical information from the
United States of America which may be imposed upon or related to the Parties from time to time by the government of the United States of America. Licensee agrees that it will not export, directly or indirectly, any technical information acquired
from Coley under this Agreement, and Licensee agrees that it will not export, directly or indirectly, the Licensed Product using such technical information, to any country for which the United States government or any agency thereof at the time of
export requires an export license or other governmental approval, without first obtaining any consent that may be required by applicable law or regulation. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 25 

 11.9 Entire Agreement; Amendment. 
 This Agreement (along with the Exhibits attached hereto) sets forth the complete, final and entire agreement of the Parties relating to the subject matter hereof and all the covenants, promises, agreements,
warranties, representations, conditions and understandings between the Parties with respect thereto and supersedes and terminates all prior agreements, writings and understandings between the Parties to the extent they relate to the subject matter
hereof, including the term sheet agreed to by the Parties. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties relating to the subject matter hereof
other than as are set forth herein or otherwise contemplated by this Section 11.9. No terms or provisions of this Agreement shall be varied or modified and no subsequent alteration, amendment, change or addition to this Agreement shall be
binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party. 
 11.10 Notices. 
 Each notice required or permitted to be given or sent under this Agreement shall be in writing and delivered personally or given by facsimile transmission (with
confirmation copy by registered first-class mail) or by registered or certified mail (return receipt requested) or internationally-recognized overnight courier, to the Parties at the addresses and facsimile numbers indicated below. 
  

			
	If to Coley, to:	  	Coley Pharmaceutical Group, Inc.
		  	Wellesley Gateway
		  	93 Worcester Street, Suite 101
		  	Wellesley, MA 02481, U.S.A.
		  	Attention: President and CEO
		  	Facsimile: 1-781-431-6403
		
	with a copy to:	  	Coley Pharmaceutical Group, Inc.
		  	Wellesley Gateway
		  	93 Worcester Street, Suite 101
		  	Wellesley, MA 02481, U.S.A.
		  	Attention: Senior Vice President and General Counsel
		  	Facsimile: 1-781-431-6403
		
	If to Licensee, to:	  	Dynavax Technologies Corporation
		  	2929 Seventh Street, Suite 100
		  	Berkeley, California 94710
		  	Attn: Chief Executive Officer
		
	with a copy to:	  	Dynavax Technologies Corporation
		  	2929 Seventh Street, Suite 100
		  	Berkeley, California 94710
		  	Attn: General Counsel

	

 All notices, requests, reports, approvals or other communications required or permitted under this
Agreement shall be in writing (except in the case of verbal communications and teleconferences updating either Party as to the status of work hereunder), and shall be deemed 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 26 

 
given (a) when delivered personally; (b) five (5) days after having been sent by registered or certified mail, return receipt requested,
postage prepaid; or (c) one (1) day after deposited with a commercial express courier specifying next day delivery, with written verification of receipt. No notice of default or termination shall be deemed effective unless delivered by two
(2) of the aforementioned delivery routes. Either Party may change its address or its facsimile number by giving the other Party written notice, delivered in accordance with this Section 11.10. 
 11.11 Force Majeure. 
 Failure of any Party to perform its obligations
under this Agreement (except the obligation to make payments when properly due) shall not subject such Party to any liability or place them in breach of any term or condition of this Agreement to the other Party if such failure is caused by any
cause beyond the reasonable control of such non-performing Party, including acts of God, fire, explosion, flood, drought, war (whether or not declared), terrorism, riot, sabotage, embargo, strikes or other labor trouble, failure in whole or in part
of suppliers to deliver on schedule materials, equipment or machinery, interruption of or delay in transportation, a national health emergency or compliance with any order or regulation of any government entity acting with color of right unless such
governmental order or regulation was the direct result of a Party’s failure to comply with applicable law; provided, however, that the Party affected shall promptly notify the other Party of the condition constituting force majeure as defined
herein and shall exert reasonable efforts to eliminate, cure and overcome any such causes and to resume performance of its obligations with all possible speed. If a condition constituting force majeure as defined herein exists for more than ninety
(90) consecutive days, the Parties shall meet to negotiate a mutually satisfactory solution to the problem, if practicable. 
 11.12 Severability.

 If any provision of this Agreement is declared invalid or unenforceable by a court having competent jurisdiction, it is mutually agreed that, except to
the extent that either Party would be adversely affected thereby, this Agreement shall endure except for the part declared invalid or unenforceable by order of such court; provided, however, that in the event that the terms and conditions of this
Agreement are materially altered, the Parties will, in good faith, renegotiate the terms and conditions of this Agreement to reasonably substitute a valid and enforceable provision consistent with the intent of this Agreement for such invalid or
unenforceable provision. 
 11.13 Further Actions. 
 Each
Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 
 11.14 Headings. 
 The captions to the several Sections hereof are not
a part of this Agreement, but are merely guides or labels to assist in locating and reading the several Sections hereof. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 27 

 11.15 Waiver of Rule of Construction. 
 Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement shall be
construed against the drafting party shall not apply. 
 11.16 Counterparts. 
 This Agreement may be executed in any number of counterparts, each of which shall be an original as against either Party whose signature appears thereon, but all of which taken together shall constitute but one and
the same instrument. Copies of executed counterparts of this Agreement transmitted by facsimile shall be considered original executed counterparts provided receipt of such facsimile is confirmed. 
 11.17 Bankruptcy. 
 All rights and licenses granted under this
Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of Title 11, U.S. Code (the “Bankruptcy Code”), licenses of rights to “intellectual property” as defined under Section 101 of the
Bankruptcy Code. Licensee, as a holder of such rights under this Agreement, shall retain and may fully exercise any or all of its rights and elections under the Bankruptcy Code. In the event of commencement of a bankruptcy proceeding by or against
Coley under the Bankruptcy Code, Licensee shall be entitled to a complete duplicate of (or complete access to, as appropriate) any intellectual property licensed by Licensee hereunder, and all embodiments of such intellectual property, if not
already in its possession, shall be promptly delivered to Licensee. 
 BALANCE OF PAGE INTENTIONALLY LEFT BLANK 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 28 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. 
  

									
	Coley Pharmaceutical Group, Inc.	 		 	Dynavax Technologies Corporation
					
	By:	 	/s/ Robert L. Bratzler	 		 	By:	 	/s/ Dino Dina
	Title:	 	President & CEO	 		 	Title:	 	President & CEO

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 29 

 EXHIBIT A 
 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

 [***] 

													
	 WGS #
	  	 SN
	  	FILING DATE	  	INVENTORS	  	ASSIGNEE	  	TITLE	  	STATUS
							
	 [***]
	  		  		  		  		  		  	

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 30 

 EXHIBIT B 
 Iowa Agreement 
 {to be attached} 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 31 

 EXHIBIT C 
 OHRI Agreement 
 {to be attached} 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 1 

 EXHIBIT D 
 (to be attached) 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 

			
	

	 	

 News Release 
  

			
	Coley Contact:	  	Dynavax Contact:
	Susan Hager	  	Shari Annes
	Senior Director, Investor Relations and	  	Investor Relations
	Corporate Communications	  	Public Relations
	+1.781.431.9079	  	+1-650-888-0902
	shager@coleypharma.com	  	sannes@dynavax.com

  

	
	Media Contact:
	Karen L. Bergman or
	Michelle Corral
	BCC Partners
	+1.650.575.1509 or +1.415.794.8662
	kbergman@bccpartners.com
	mcorral@bccpartners.com

 For Immediate Release 
 Coley Pharmaceutical Group Grants Dynavax 
 License for Commercialization of HEPLISAVTM 

 Wellesley, MA and Berkeley, CA, June 28, 2007 – Coley Pharmaceutical Group, Inc. (Nasdaq: COLY) and Dynavax Technologies Corporation
(Nasdaq: DVAX) today announced they have entered into a license agreement relating to certain TLR TherapeuticsTM patents from Coley. 
 Under the terms
of the agreement, Dynavax receives a non-exclusive license under Coley’s immunostimulatory oligonucleotide patent estate for the commercialization of HEPLISAVTM, a hepatitis B prophylactic vaccine, currently in Phase 3 clinical trials.
Coley will receive a $5 million up-front payment. Coley is also eligible to receive up to an additional $5.0 million upon regulatory approvals of HEPLISAV, as well as royalty payments for any future sales of HEPLISAV. 
 —more— 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 ii 

 About HEPLISAV and Hepatitis B 
 HEPLISAV is currently being evaluated in a Phase 3 clinical trial in Canada and in Europe. The multi-center trial,
known as PHAST (Phase 3 HeplisAv Short-regimen Trial), is comparing a two-dose regimen of HEPLISAV administered at 0 and 1 month to the conventional three-dose regimen of Engerix-B®. The enrollment target of the study is approximately 2,000 subjects, ages 11 to 55 years. Dynavax expects to submit a BLA in 2008 for approval of the product with a database of approximately 4,000 patients

 In several previous clinical studies, HEPLISAV has been shown to provide seroprotection against hepatitis B faster and with fewer doses than conventional
hepatitis B vaccines. Additionally, HEPLISAV has provided 100% seroprotection in all subjects who have received the full regimen, including those who are difficult-to-immunize. 
 About Coley’s TLR TherapeuticsTM 
 Coley’s TLR Therapeutics are a new class of investigational drug
candidates that target certain immune cells through Toll-like receptors. The patents licensed today to Dynavax relate to Coley’s Toll-like receptor 9 (TLR9) agonist technology that induce enhanced antigen-specific antibody and T-cell
immune responses when used in combination with vaccines. Coley’s TLR9 agonist drug candidate has been included in approximately 35 clinical trials of vaccines in development for use in various cancer indications, infectious diseases and
biowarfare defense. The most advanced clinical program with Coley’s TLR9 agonist vaccine adjuvant candidate is a forthcoming Phase III clinical trial under the direction of GlaxoSmithKline (GSK) as part of a treatment for resectable, early
stage lung cancer. 
 About Coley Pharmaceutical Group 
 Coley Pharmaceutical Group, Inc. is an international biopharmaceutical company, headquartered in Wellesley, Massachusetts, USA, that discovers and develops TLR TherapeuticsTM, a new class of investigational drug candidates that direct
the human immune system to fight cancers, asthma and allergic diseases and to enhance the effectiveness of vaccines. Coley has established a pipeline of TLR Therapeutic product candidates currently advancing through clinical development with
partners and has additional product candidates in preclinical development. Coley has product development, research and license agreements with Pfizer, sanofi-aventis, GSK, Novartis Vaccines, Merck and the United States government. For further
information on Coley Pharmaceutical Group please visit www.coleypharma.com. 
 About Dynavax 
 Dynavax Technologies Corporation discovers, develops, and intends to commercialize innovative TLR9 agonist-based products to treat and prevent infectious diseases,
allergies, cancer, and chronic inflammatory diseases using versatile, proprietary approaches that alter immune system responses in highly specific ways. The company’s TLR9 agonists are based on immunostimulatory sequences, or ISS, which are
short DNA sequences that enhance the ability of the immune system to fight disease and control chronic inflammation. Dynavax’s pipeline includes: HEPLISAV, a hepatitis B vaccine in Phase 3; TOLAMBA(TM), a ragweed allergy immunotherapeutic; a
therapy for non-Hodgkin’s lymphoma (NHL) in Phase 2 and for metastatic colorectal cancer in Phase 1; and a therapy for hepatitis B also in Phase 1. A preclinical asthma and COPD program is partnered with AstraZeneca. The National Institutes of
Health (NIH) partially funds preclinical work on a vaccine for influenza; Symphony Dynamo, Inc., funds the company’s colorectal cancer trials and a preclinical hepatitis C therapeutic program. While the NIH and Symphony provide program support,
Dynavax has retained rights to seek strategic partners for future development and commercialization. For more information, please visit http://www.dynavax.com. 
 —more— 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 iii 

 Safe Harbor Statements 
 Certain statements in this news release concerning Coley’s business are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not
limited to, those relating to royalty payments for any future product sales involving HEPLISAV. Any or all of the forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions Coley might
make or by known or unknown risks and uncertainties, including, but not limited to: the early stage of product development; uncertainties as to the future success of ongoing and planned clinical trials; the risk that results from early stage
clinical trials may not be indicative of results in later stage trials; the unproven safety and efficacy of products under development; intellectual property rights and litigation; competitive products; and other risks identified in Coley’s
filings with the Securities and Exchange Commission including, but not limited to, Coley’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Consequently, no forward-looking statement can be guaranteed, and actual
results may vary materially. Coley undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law. 
 This press release contains forward-looking statements concerning Dynavax that are subject to a number of risks and uncertainties, including statements about
Dynavax’s HEPLISAV hepatitis B vaccine and financial terms of its agreement with Coley. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in Dynavax’s business,
including difficulties or delays in development; achieving the objectives of collaborative and licensing efforts; and obtaining regulatory approval for HEPLISAV; the scope and validity of patent protection; possible claims based on the patent rights
of others; the ability to obtain additional financing to support operations; and other risks detailed in the “Risk Factors” section of Dynavax’s Quarterly Report on Form 10-Q. Dynavax undertakes no obligation to revise or update
information herein to reflect events or circumstances in the future, even if new information becomes available. 
 TLR Therapeutics is a trademark of Coley
Pharmaceutical Group. HEPLISAV is a trademark of Dynavax Technologies Corporation. All other trademarks are the property of their respective holders. 
 # # # 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. 
 iv

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