Document:

exv10w3

 

Exhibit 10.3

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

LICENSE AGREEMENT

          THIS LICENSE AGREEMENT (this “Agreement”) is entered into as of February 19, 2008
(“Effective Date”), by and among NOVAVAX, INC., a Delaware corporation (“Novavax”),
and GRACEWAY PHARMACEUTICALS, LLC, a Delaware limited liability company (“Graceway”).

          WHEREAS, Graceway and Novavax are parties to that certain Asset Purchase Agreement dated as of
the date hereof (the “Asset Purchase Agreement”), pursuant to which, Novavax agreed to sell
to Graceway, and Graceway agreed to acquire from Novavax, certain assets used by Novavax in
connection with the research, development, manufacture, distribution, marketing, sale, promotion,
importation and use of the Product (as defined in the Asset Purchase Agreement);

          WHEREAS, pursuant to Section 7.02(d) of the Asset Purchase Agreement, Graceway has
agreed to license to Novavax certain rights in the Licensed Technology (as defined herein); and

          WHEREAS, it is a condition precedent to Novavax’s obligation to consummate the Closing under
the Asset Purchase Agreement that the parties enter into this Agreement, and the parties are
entering into this Agreement on and as of the Closing Date under the Asset Purchase Agreement.

          NOW, THEREFORE, in consideration of the foregoing, the covenants and agreements contained in
this Agreement and the Asset Purchase Agreement, and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as
follows:

ARTICLE 1

DEFINITIONS AND REFERENCES

     1.1. Defined Terms.

          Capitalized terms used in this Agreement and not otherwise defined in this Agreement shall
have the meanings given to such terms in the Asset Purchase Agreement.

          “Agreement” has the meaning set forth in the Preamble.

          “Asset Purchase Agreement” has the meaning set forth in the Recitals.

          “Effective Date” has the meaning set forth in the Preamble.

          “Field” means [* * *]

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

          “Graceway Confidential Information” has the meaning set forth in Section
4.2(a).

          “Licensed IP” means the Patents listed in Schedule 2.01(a) of the Asset
Purchase Agreement.

          “Licensed Technology” means the Transferred Know-How as defined in the Asset Purchase
Agreement.

     1.2. Construction of Certain Terms and Phrases.

          Unless the context of this Agreement otherwise requires: (a) words of any gender include each
other gender; (b) words using the singular or plural number also include the plural or singular
number, respectively; (c) the terms “hereof”, “herein”, “hereby” and derivative or similar words
refer to this entire Agreement; (d) all references herein to “Articles” or “Sections” are to
Articles or Sections of this Agreement; (e) the term “or” has, except as otherwise indicated, the
inclusive meaning represented by the phrase “and/or”; and (f) the words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”.

ARTICLE 2

LICENSE GRANT

     2.1. License Grant.

          (a) Subject to the terms and conditions of this Agreement, Graceway hereby grants to Novavax
an exclusive, non-transferable (except as permitted under Section 8.6), royalty-free,
limited license, with the right to grant sublicenses through multiple tiers, to develop, make, have
made, use, sell, offer for sale, and import products and services claimed or covered by the
Licensed IP solely in the Field. Novavax acknowledges and agrees that the license granted in this
Section 2.1(a) is for the sole purpose of enabling Novavax to practice and/or sublicense to
third parties the Licensed IP for the research, development and sale of products and services by
such third parties in the Field in accordance with the terms of the foregoing license, and Novavax
is expressly excluded from using the Licensed IP for any other purpose.

          (b) Subject to this Section 2.1(b), Novavax may sublicense the rights granted under
this Section 2.1 to a third party without the consent of Graceway. Novavax acknowledges
and agrees that any sublicense granted shall be made subject to the terms of this Agreement and
shall not relieve Novavax of its obligations under this Agreement. Promptly after the execution of
any sublicense agreement, Novavax shall provide Graceway with a complete copy of such agreement;
provided, that financial and other business terms that are unrelated to Novavax’s
obligations under this Agreement may be redacted.

          (c) Subject to the terms and conditions of this Agreement, Graceway hereby grants to Novavax
an exclusive, non-transferable (except as permitted under Section 8.6),

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royalty-free,
limited license, with the right to grant sublicenses through multiple tiers, to make,
have made, use, sell, offer for sale, and import products and services developed using or
incorporating the Licensed Technology solely in the Field and in the Territory.

     2.2. Reservation of Rights.

          Novavax acknowledges and agrees that Graceway owns, reserves and retains all right, title and
interest in and to the Licensed IP and the Licensed Technology, except for the limited, express
license grant set forth herein.

     2.3. No Access to Information.

          Novavax acknowledges and agrees that Graceway has no obligation to provide Novavax with any
information, data, materials or documentation regarding the Licensed Technology or any other assets
of Graceway (including the NDA for the Product), nor to provide any other technical assistance.
For the avoidance of doubt, Novavax acknowledges and agrees that neither Novavax nor any of its
licensees or sublicensees shall have any right of reference to any information, data, materials or
documentation regarding the Licensed Technology or any other assets of Graceway (including the NDA
for the Product).

     2.4. Disclaimers.

          Graceway makes no representation as to, and does not warrant, the accuracy or completeness of
the Licensed IP or the Licensed Technology, nor does Graceway warrant that the use of the Licensed
IP or the Licensed Technology, or any products developed, manufactured or packaged in accordance
with or utilizing such technology or the intellectual property rights therein, will be free from
claims of infringement of the patents, copyrights or other intellectual property rights of any
third party. Except for Graceway’s express obligations under this Agreement, Graceway shall not be
under any liability arising out of granting the license set forth in Section 2.1 under, in
connection with or as a result of this Agreement, whether on warranty, contract, negligence or
otherwise.

ARTICLE 3

COVENANTS

          Novavax covenants and agrees that Novavax shall not use, nor permit any permitted assignee or
sublicensee to use, all or any part of the Licensed IP or the Licensed Technology for any purpose
except as set forth in Section 2.1 and Novavax agrees that any use of the Licensed IP or
the Licensed Technology outside of the scope of the license grant set forth in Section 2.1
shall be a breach of this Agreement.

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

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ARTICLE 4

PROPRIETARY RIGHTS AND CONFIDENTIAL INFORMATION

     4.1. Ownership.

          Novavax hereby agrees that the Licensed Technology constitutes commercially valuable,
proprietary trade secrets and confidential information of Graceway. Novavax further agrees that
except for the limited license grant set forth in Section 2.1 and its rights to the
Licensed Technology outside the Territory, Novavax shall not assert any right, title or interest in
or to the Licensed IP or the Licensed Technology. Novavax acknowledges that the Licensed
Technology (i) derives independent economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons who can obtain
economic value from the disclosure or use and (ii) is the subject of efforts of Graceway that are
reasonable under the circumstances to maintain its secrecy.

     4.2. Confidential Information.

          (a) In addition to Novavax’s other confidentiality obligations set forth in the Asset Purchase
Agreement, Novavax agrees, during the term of this Agreement and thereafter, to (i) maintain the
Licensed Technology whether disclosed by Graceway to Novavax in any manner and in any form or
format or otherwise retained by Novavax (the “Graceway Confidential Information”), in the
strictest confidence, (ii) not disclose the Graceway Confidential Information to any third parties,
and (iii) only use such Graceway Confidential Information to practice the license and other rights
granted hereunder in accordance with this Agreement. Notwithstanding the foregoing, Novavax may
disclose Graceway Confidential Information, and authorize the use of such Graceway Confidential
Information on the same terms applicable to Novavax under this Agreement, to the following persons
and entities: (A) employees or contractors of Novavax who have a need to know such information and
(B) sublicensees in connection with the grant of any sublicense of the rights granted hereunder, in
each case where such persons or entities have a legal obligation to maintain the confidentiality of
such information on the same terms applicable to Novavax in this Agreement. In addition, Novavax
may disclose Graceway Confidential Information to Governmental Authorities solely for the purposes
of, and solely to the extent necessary for, submitting and maintaining applications for the
authorization or use of pharmaceutical products in the Field; provided, that Novavax shall
request confidential treatment for any submission of such information to any Governmental Authority
and, if such information will not receive confidential treatment by such Governmental Authority,
then Novavax shall not disclose such information to such Governmental Authority without Graceway’s
prior written consent, which consent will not be unreasonably withheld. Without limiting the
foregoing, Novavax shall, consistent with the practices and procedures under which Novavax protects
its own most valuable proprietary information and materials, protect the Graceway Confidential
Information against any unauthorized or unlawful use, disclosure, dissemination or copying.

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

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          (b) Novavax’s obligations under this Section 4.2 shall not apply to information that
Novavax can demonstrably prove (i) is, or later becomes, generally available to
the public through no fault of Novavax or its Affiliates, or (ii) is obtained from a third
party not under an obligation of confidentiality. If required by order of any Government
Authority, Novavax may disclose to such authority, data, information, or materials pertaining to or
involving the Graceway Confidential Information to the extent required by such order, provided that
Novavax shall first have notified Graceway of the required disclosure and provided reasonable
cooperation to Graceway’s efforts to obtain a protective order to maintain the confidentiality of
such data, information or materials.

          (c) Novavax’s obligations of confidentiality shall remain in full force and effect until the
Graceway Confidential Information falls into one of the categories set forth in (b) above.

          (d) Novavax acknowledges that in the event of a breach by Novavax of any provisions of this
Article 4, Graceway will not have an adequate remedy in money or damages. Graceway shall
therefore be entitled to seek injunctive relief against any such breach by Novavax in any court of
competent jurisdiction without the necessity of posting bond. Graceway’s rights hereunder shall
not in any way be construed to limit or restrict its right to seek or obtain other damages or
relief under this Agreement or under applicable law.

     4.3. Maintenance and Enforcement of Licensed IP.

          (a) Graceway agrees to use commercially reasonable efforts to prosecute and maintain patents
and patent applications within the Licensed IP in the Territory. However, Graceway may, in its
discretion, elect to abandon any patent applications or issued patent in the Licensed IP in all or
any jurisdictions in the Territory. Following any such abandonment in any such jurisdiction,
Novavax shall have the right, but not the obligation, to commence or continue such prosecution
solely in such jurisdiction and to maintain any such patent or patent application solely in such
jurisdiction under its own control and at its own expense (and, as between the parties hereto, such
abandoned patent applications or issued patent in the Licensed IP solely in such jurisdiction
shall, at the election of Novavax, become the sole and exclusive property of Novavax). Prior to
any such abandonment, Graceway shall give Novavax at least ninety (90) days notice and a reasonable
opportunity to take over prosecution of such patent or patent application.

          (b) Novavax shall, and shall cause its licensees and sublicensees to, use commercially
reasonable efforts to notify Graceway of any infringement or potential infringement by any Person
of the Licensed IP. Upon the reasonable request of Graceway, Novavax will use commercially
reasonable efforts to cooperate with Graceway in the prosecution and enforcement of Graceway’s
rights in the Licensed IP. Notwithstanding anything herein to the contrary, nothing in this
Agreement shall be construed to obligate Graceway to enforce or prosecute any of the Licensed IP.

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          (c) In the event Novavax notifies Graceway of an infringement in the Field with sufficient
supporting documentation or facts to support the good faith filing of an
enforcement action, Graceway has the right to determine within forty-five (45) days of receipt
of such notification, or twenty (20) days in the event a sufficient presentation is made by Novavax
as to the need for preliminary injunctive relief, to elect to bring such action against the
potential infringers in the Field. If Graceway determines to bring an action within such
applicable time period with respect to any infringement, Novavax agrees to fully cooperate with
Graceway, at its cost and expense, in prosecuting any such action. Graceway will promptly provide
Novavax with copies of all pleadings and documents filed by any third party or served on it.
Graceway will also promptly provide Novavax with copies of all pleadings and documents to be filed
by it and will reasonably implement any comments received from Novavax with respect to any such
pleadings and documents. In the event Graceway declines to bring an action, if Novavax
nevertheless desires to enforce the Licensed IP against potential infringers in the Field, then
Novavax shall inform Graceway. Upon the reasonable request of Novavax, Graceway will then use
commercially reasonable efforts to cooperate with Novavax in such enforcement, including, if
required to bring such action, by either, at Graceway’s option, furnishing a Power of Attorney or
joining such action as a necessary party. Novavax will promptly provide Graceway with copies of
all pleadings and documents filed by any third party or served on it. Novavax also will promptly
provide Graceway with copies of all pleadings and documents to be filed by it and will reasonably
implement any comments received from Graceway with respect to any such pleadings and documents.
Graceway will have the right to be represented by separate counsel in any such action. Except as
otherwise agreed by the parties as a cost sharing arrangement, any recovery realized as a result of
any litigation described in this Section 4.3(c) (whether by way of settlement or otherwise)
will be first allocated to reimbursement of Graceway’s legal fees and expenses, then toward
reimbursement of Novavax’s legal fees and expenses, and then the remainder will be divided [* * *]
to Novavax and [* * *] to Graceway.

          (d) Neither party shall have the right to settle any patent infringement litigation under this
Section 4.3 in a manner that diminishes the rights or interest of the other party without
the express written consent of such other party, such written consent to not be unreasonably
withheld.

ARTICLE 5

TERMINATION

     5.1. Termination.

          Novavax may terminate this Agreement for its convenience upon thirty (30) days prior written
notice to Graceway. Graceway may terminate this Agreement for any material breach by Novavax in
the event that Novavax fails to cure such breach within sixty (60) days after receipt of written
notice of such breach.

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EXCHANGE COMMISSION.

     5.2. Effect of Termination.

          Upon termination of this Agreement, all license rights granted herein shall automatically
terminate and Novavax and any permitted assignee or sublicensee shall immediately cease all use of
the Licensed IP and the Licensed Technology, unless Graceway otherwise agrees in writing

     5.3. Survival.

          The following articles and sections of this Agreement shall survive termination for any
reason: Sections 2.2, 2.4, 4.1 and 4.2, and Articles 5,
6, 7 and 8.

ARTICLE 6

WARRANTY DISCLAIMER

          GRACEWAY MAKES NO WARRANTIES REGARDING THE LICENSED TECHNOLOGY OF ANY KIND, EXPRESS OR
IMPLIED, WHETHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND GRACEWAY EXPRESSLY
DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR OTHERWISE. GRACEWAY MAKES
NO WARRANTY AS TO THE SUITABILITY OF THE LICENSED TECHNOLOGY.

ARTICLE 7

INDEMNIFICATION

          In addition to Novavax’s indemnification obligations under the Asset Purchase Agreement,
Novavax shall indemnify, defend, and hold Graceway and the Buyer Indemnified Parties harmless from
and against any claims and all Losses incurred or suffered by Graceway and the Buyer Indemnified
Parties from any claim brought by a third party to the extent caused by any breach by Novavax of
any term of this Agreement.

ARTICLE 8

MISCELLANEOUS

     8.1. Notices.

          All notices or other communications required or permitted to be given hereunder shall be in
writing and shall be deemed to have been duly given if delivered by hand, prepaid telex, cable,
courier, telegram or facsimile and confirmed in writing, or mailed first class, postage prepaid, by
registered or certified mail, return receipt requested (mailed notices and notices sent by telex,
cable or telegram shall be deemed to have been given on the date received) in
accordance with the notice information set forth in Section 10.04 of the Asset
Purchase Agreement.

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     8.2. Entire Agreement.

          This Agreement, the Asset Purchase Agreement, and its Appendices, Exhibits and Schedules
constitute the entire agreement between the parties with respect to the subject matter hereof and
supersede all prior agreements or understandings of the parties relating thereto.

     8.3. Waiver; Remedies.

          No delay on the part of either party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of either party of any right,
power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

     8.4. Amendment.

          This Agreement may be modified or amended only by written agreement of the parties hereto.

     8.5. No Third Party Rights.

          No provision of this Agreement shall be deemed or construed in any way to result in the
creation of any rights in or obligations of any Person not a party to this Agreement.

     8.6. Successors and Assigns.

          Novavax may not sublicense or otherwise transfer, convey or assign any of its rights, duties
or obligations hereunder without the prior written consent of Graceway; provided, that
Novavax shall be permitted to (i) grant sublicenses in accordance with the terms of Section
2.1; (ii) to the extent necessary, assign all, but not less than all, of Novavax’s rights under
this Agreement to a buyer in a Change of Control transaction if such buyer shall agree in writing
to be bound by the terms and conditions of this Agreement; and (iii) assign this Agreement, in
whole or in part, to a third party in connection with the sale of all or substantially all of the
assets or rights to which this Agreement relates if such buyer shall agree in writing to be bound
by the terms and conditions of this Agreement. Any purported assignment or sublicense in violation
of this Agreement shall be void. Any permitted assignee or sublicensee shall assume all
obligations of its assignor or sublicensor under this Agreement. No sublicense of this Agreement
or of any rights hereunder shall relieve the sublicensing party of any of its obligations or
liability hereunder. Graceway shall be free to assign or sublicense all or any part of this
Agreement
without the prior written consent of Novavax. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and permitted assigns.

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     8.7. Governing Law; Jurisdiction.

          This Agreement, the rights and obligations of the parties hereto, and any claims or disputes
relating thereto, shall be governed by and construed under and in accordance with the laws of the
State of New York, without giving effect to the conflicts of law principles thereof (other than
Section 5-1401 of the New York General Obligations Law). The parties hereto hereby waive personal
service of any process in connection with any such action, suit or proceeding and agree that the
service thereof may be made by certified or registered mail addressed to or by personal delivery to
the other party, at such other party’s address set forth pursuant to Section 10.04 of the
Asset Purchase Agreement. In the alternative, in its discretion, any of the parties hereto may
effect service upon any other party in any other form or manner permitted by law.

     8.8. Fees and Expenses.

          Except as may be otherwise specified in the Asset Purchase Agreement, each party shall bear
its own fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby.

     8.9. Further Assurances.

          Each party shall execute and deliver such additional instruments and other documents and use
all commercially reasonable efforts to take or cause to be taken, all actions and to do, or cause
to be done, all things necessary under applicable law to consummate the transactions contemplated
hereby.

     8.10. Interpretation.

          The parties hereto acknowledge and agree that: (a) each party and its representatives have
reviewed and negotiated the terms and provisions of this Agreement and have contributed to its
revision; (b) the terms and provisions of this Agreement shall be construed fairly as to each party
hereto and not in favor of or against either party regardless of which party was generally
responsible for the preparation or drafting of this Agreement; (c) all section titles or captions
contained in this Agreement and in any appendix referred to herein or annexed to this Agreement are
for convenience only, shall not be deemed a part of this Agreement and shall not affect the meaning
or interpretation of this Agreement; and (d) each Appendix, Exhibit and Schedule hereto is
incorporated by reference and made a part of this Agreement.

     8.11. No Joint Venture.

          Nothing contained herein shall be deemed to create any joint venture or partnership between
the parties hereto, and, except as is expressly set forth herein, neither party shall have any
right by virtue of this Agreement to bind the other party in any manner whatsoever.

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     8.12. Severability.

          If any provision of this Agreement is held to be illegal, invalid, or unenforceable under
present or future laws effective while this Agreement remains in effect, the legality, validity and
enforceability of the remaining provisions shall not be affected thereby.

     8.13. Counterparts.

          This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original but all of which together shall constitute a single instrument.

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          IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed, this License
Agreement as of the date first above written.

	 	 	 	 	 
	 	LICENSEE:

NOVAVAX, INC.

 	 
	 	By:  	/s/ Raymond J. Hage, Jr.
 	 
	 	Name:  	 	Raymond J. Hage, Jr. 	 
	 	Title:  	 	SVP Commercial Operations 	 
	 

	 	 	 	 	 
	 	LICENSOR:

GRACEWAY PHARMACEUTICALS, LLC

 	 
	 	By:  	/s/ Jefferson J. Gregory
 	 
	 	Name:  	 	Jefferson J. Gregory 	 
	 	Title:  	 	Chairman and CEOexv10w4

 

Exhibit 10.4

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A 
CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED 
WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 
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COMMISSION.

February 12, 2008

VP Global Packaging Solutions

3001 Red Lion Road

Philadelphia, PA 19114

     Re: Supply and Lease Terms and Conditions

Dear Renard:

     This letter confirms the agreement between Novavax, Inc. (“Novavax”) and Catalent Pharma
Solutions, Inc. (“Catalent”) with respect to certain supply and leasing arrangements between the
parties. As we have discussed, Novavax is negotiating a potential sale of the EstrasorbTM product
(the “Product”) with Graceway Pharmaceuticals, LLC (“Graceway”) and this letter agreement will be
effective upon consummation of that transaction and written notice to Catalent.

1. Changes to Facility Reservation Agreement. Pursuant to that certain Facility Reservation
Agreement, dated February 8, 2002, by and between Novavax and Packaging Coordinators, Inc.,
Catalent’s predecessor-in-interest, Catalent has leased certain real property to Novavax. As of
the date hereof, the formal Term of such agreement has expired and Novavax is holding over on a
month-to-month basis. Notwithstanding anything to the contrary set forth in such Facility
Reservation Agreement, Novavax and Catalent agree that (i) for the period beginning effective
January 1, 2008 and ending not later than July 31, 2008 (the “Interim Term”), the Base Monthly Fee
(as defined in such agreement) will be [* * *], and (ii) unless Catalent has entered into an
arrangement with Graceway (or its designee) for the continued manufacture of Product in the Area
(as defined in the Facility Reservation Agreement) prior to May 2008, Novavax, or Graceway, as its
designee, will decommission and remove all of its equipment from the Area and will vacate the Area
on or before July 31, 2008, when the lease will expire. All other terms and conditions set forth
in the Facility Reservation Agreement not expressly modified herein will continue in full force and
effect.

2. Interim Supply. The Term (as defined therein) of the Supply Agreement dated March 22, 2001
between Novavax, Inc. and Packaging Coordinators, Inc., Catalent’s predecessor-in-interest, was for
two years and it has been extended month-to-month by agreement of the Parties. During the Interim
Term (January 1, 2008 to July 31, 2008), Catalent will supply Novavax with [* * *] lots of (each of
approximately [* * *] months of therapy – 56 pouches of 1.74 grams of Estrasorb) finished Product
pursuant to the terms of this letter agreement, the Supply Agreement and other terms and
conditions to be agreed upon by the parties in individual purchase orders,

1

 

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which shall be
consistent with the terms and conditions applicable to Novavax’s current purchase of Product. Such
purchase orders will provide for a flat packaging price of [* * *] per pouch of Product. During
the Interim Term, Novavax may submit purchase orders for [* * *] packaged manufacturing lots of
Product (see Exhibit A, Supply Schedule). In addition, the terms set forth in the Quality
Agreement between Novavax and Cardinal Health PTS, LLC, dated May 28, 2007 (a copy of which is
attached hereto as Exhibit B), will govern such supply and any related testing, release, and
communication procedures for the Product. Due to the terminal nature of this project, any
components or raw materials purchased by Catalent consistent with requirements but not utilized in
the [* * *] lots, will be for Novavax’ account. If formal agreement is not reached between the
Parties regarding an extension of the Supply Agreement beyond the Interim Term, the Supply
Agreement shall expire on July 31, 2008. All other terms and conditions set forth in the Supply
Reservation Agreement not expressly modified herein will continue in full force and effect.

3. Other Terms. This letter agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument. This letter agreement and all information disclosed under this agreement will be
deemed to be “Confidential Information.” Novavax and Catalent agree to exclude applicability of the
United Nations Convention on Contracts for the International Sale of Goods. This Agreement shall
be governed by, and construed in accordance with, the laws of the state of Delaware in the United
States of America, without respect to the laws that might otherwise govern under applicable
principles of conflicts of laws. This letter agreement may not be modified except in a writing
signed by each party. No failure or delay by any party in enforcing this letter agreement shall be
construed as a waiver, nor shall any waiver be effective, unless expressly set forth in a writing
executed by the parties.

     If the foregoing is acceptable to you, please countersign this letter agreement to indicate
your agreement.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	NOVAVAX, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Raymond J. Hage, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Raymond J. Hage, Jr.	 	 
	 

	 	 	 	SVP Commercial Operations	 	 

Agreed and accepted:

[_Catalent Pharma Solutions, Inc.__]

	 	 	 	 	 
	By:

	 	     /s/ Tracy Tsuetaki
	 	 
	 

	 	 	 	 
	Name:

	 	Tracy Tsuetaki	 	 
	Title:

	 	Group President — Packaging Services	 	 

2

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