Document:

EX-10.25

 Exhibit 10.25 

Execution Version 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. 

Triple asterisks denote omissions. 

COLLABORATION AND LICENSE AGREEMENT 

BY AND BETWEEN 

MACROGENICS, INC. 
 AND

 JANSSEN BIOTECH, INC. 

 Execution Version 
  

TABLE OF CONTENTS 
  

							
	 ARTICLE 1 DEFINITIONS
		 	1	  
	 ARTICLE 2 GOVERNANCE
		 	23	  
			
	 2.1
		 Joint Steering Committee.
		 	23	  
	 2.2
		 Additional Subcommittees and Working Groups.
		 	26	  
	 2.3
		 Authority.
		 	26	  
	 2.4
		 Alliance Managers.
		 	26	  
	 2.5
		 Decision-Making Restrictions.
		 	26	  
		
	 ARTICLE 3 LICENSES
		 	27	  
			
	 3.1
		 License to Company.
		 	27	  
	 3.2
		 Licenses to MacroGenics.
		 	28	  
	 3.3
		 Trademark License.
		 	28	  
	 3.4
		 No Implied Licenses.
		 	28	  
		
	 ARTICLE 4 DEVELOPMENT
		 	29	  
			
	 4.1
		 Transition of Development Responsibilities.
		 	29	  
	 4.2
		 Development.
		 	29	  
	 4.3
		 Decision-Making.
		 	31	  
	 4.4
		 Compliance with Law.
		 	31	  
	 4.5
		 Records.
		 	31	  
	 4.6
		 Cooperation.
		 	31	  
	 4.7
		 Progress Reports.
		 	31	  
	 4.8
		 Subcontracting.
		 	31	  
		
	 ARTICLE 5 REGULATORY RESPONSIBILITIES
		 	32	  
			
	 5.1
		 Initial Data Transfer.
		 	32	  
	 5.2
		 Preparation of Regulatory Materials.
		 	33	  
	 5.3
		 Adverse Event Reporting and Safety Data Exchange.
		 	34	  
	 5.4
		 Recalls and Voluntary Withdrawals.
		 	34	  
	 5.5
		 Subcontracting.
		 	35	  
		
	 ARTICLE 6 COMMERCIALIZATION
		 	35	  
			
	 6.1
		 Commercialization Activities.
		 	35	  
	 6.2
		 Trademarks.
		 	36	  
	 6.3
		 Decision-Making.
		 	36	  
	 6.4
		 Transparency Reporting.
		 	36	  
	 6.5
		 Compliance with Law.
		 	36	  
	 6.6
		 Subcontracting.
		 	36	  
		
	 ARTICLE 7 MANUFACTURING
		 	37	  

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

							
	 7.1
		 General Supply Terms.
		 	37	  
	 7.2
		 Transition of Manufacturing Responsibilities.
		 	38	  
	 7.3
		 Decision Making.
		 	38	  
	 7.4
		 Compliance with Law.
		 	38	  
	 7.5
		 Subcontracting.
		 	38	  
		
	 ARTICLE 8 MACROGENICS OPTIONS
		 	38	  
			
	 8.1
		 Generally.
		 	38	  
	 8.2
		 Co-Funding Option.
		 	38	  
	 8.3
		 Co-Promote Option.
		 	44	  
		
	 ARTICLE 9 CONSIDERATION
		 	47	  
			
	 9.1
		 Upfront Payment.
		 	47	  
	 9.2
		 Reimbursement of Expenses.
		 	47	  
	 9.3
		 Milestone Payments.
		 	47	  
	 9.4
		 Company Royalty Obligations.
		 	52	  
	 9.5
		 Royalty Term.
		 	55	  
	 9.6
		 Royalty Rate Reductions.
		 	55	  
	 9.7
		 Manner of Royalty Payment.
		 	56	  
	 9.8
		 Currency.
		 	57	  
	 9.9
		 Allocation of N.A. Profit/Loss.
		 	57	  
	 9.10
		 Third Party Financial Obligations.
		 	57	  
	 9.11
		 Taxes.
		 	58	  
	 9.12
		 Tax Returns.
		 	59	  
	 9.13
		 Audit. .
		 	59	  
	 9.14
		 Late Payment.
		 	59	  
		
	 ARTICLE 10 INTELLECTUAL PROPERTY MATTERS
		 	60	  
			
	 10.1
		 Ownership of Inventions.
		 	60	  
	 10.2
		 Disclosure of Inventions.
		 	60	  
	 10.3
		 Prosecution of Patents.
		 	60	  
	 10.4
		 Patent Term Extensions in the Territory.
		 	63	  
	 10.5
		 Infringement of Patents by Third Parties.
		 	63	  
	 10.6
		 Infringement of Third Party Rights in the Territory.
		 	66	  
	 10.7
		 Patent Oppositions and Other Proceedings.
		 	67	  
		
	 ARTICLE 11 REPRESENTATIONS, WARRANTIES AND COVENANTS
		 	68	  
			
	 11.1
		 Mutual Representations, Warranties and Covenants.
		 	68	  
	 11.2
		 Additional Representations and Warranties of MacroGenics.
		 	69	  
	 11.3
		 Additional Representations and Warranties of Company.
		 	72	  
	 11.4
		 No Other Representations or Warranties.
		 	72	  
		
	 ARTICLE 12 CONFIDENTIALITY
		 	73	  

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

							
	 12.1
		 Nondisclosure.
		 	73	  
	 12.2
		 Exceptions.
		 	73	  
	 12.3
		 Authorized Disclosure.
		 	74	  
	 12.4
		 Terms of this Agreement.
		 	75	  
	 12.5
		 Publicity.
		 	75	  
	 12.6
		 Securities Filings.
		 	76	  
	 12.7
		 Relationship to Confidentiality Agreement.
		 	76	  
	 12.8
		 Equitable Relief.
		 	76	  
	 12.9
		 Publications.
		 	77	  
		
	 ARTICLE 13 TERM AND TERMINATION
		 	77	  
			
	 13.1
		 Term.
		 	77	  
	 13.2
		 Unilateral Termination by Company.
		 	77	  
	 13.3
		 Termination for Material Breach.
		 	77	  
	 13.4
		 Termination by Company for Safety Reasons.
		 	78	  
	 13.5
		 Termination for [***].
		 	78	  
	 13.6
		 HSR Filing; Termination Upon HSR Denial.
		 	79	  
	 13.7
		 Termination for Bankruptcy.
		 	79	  
	 13.8
		 Effects of Termination.
		 	81	  
	 13.9
		 Remedies.
		 	85	  
	 13.10
		 Survival.
		 	86	  
		
	 ARTICLE 14 DISPUTE RESOLUTION
		 	86	  
			
	 14.1
		 Exclusive Dispute Resolution Mechanism.
		 	86	  
	 14.2
		 Resolution by Executive Officers.
		 	86	  
	 14.3
		 Arbitration.
		 	86	  
	 14.4
		 Provisional Remedies.
		 	88	  
	 14.5
		 Confidentiality.
		 	88	  
		
	 ARTICLE 15 INDEMNIFICATION
		 	88	  
			
	 15.1
		 Indemnification by Company.
		 	88	  
	 15.2
		 Indemnification by MacroGenics.
		 	89	  
	 15.3
		 Indemnification Procedures.
		 	89	  
	 15.4
		 Insurance.
		 	90	  
	 15.5
		 Limitation of Liability.
		 	91	  
		
	 ARTICLE 16 MISCELLANEOUS
		 	91	  
			
	 16.1
		 Notices.
		 	91	  
	 16.2
		 Governing Law.
		 	92	  
	 16.3
		 Change of Control of MacroGenics.
		 	92	  
	 16.4
		 Assignment.
		 	92	  
	 16.5
		 Designation of Affiliates.
		 	93	  
	 16.6
		 Relationship of the Parties.
		 	93	  

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

							
	 16.7
		 Force Majeure.
		 	93	  
	 16.8
		 Entire Agreement; Amendments.
		 	93	  
	 16.9
		 Severability.
		 	94	  
	 16.10
		 English Language.
		 	94	  
	 16.11
		 Waiver and Non-Exclusion of Remedies.
		 	94	  
	 16.12
		 Further Assurance.
		 	94	  
	 16.13
		 Headings.
		 	94	  
	 16.14
		 Construction.
		 	94	  
	 16.15
		 Counterparts.
		 	95	  

 LIST OF EXHIBITS 
  

					
	 Exhibit A
		–		Commercialization Expenses
	 Exhibit B
		–		Global Development Plan
	 Exhibit C
		–		MacroGenics Patents
	 Exhibit D
		–		MGD011
	 Exhibit E
		–		J & J Universal Calendar
	 Exhibit F
		–		Form of Press Release
	
	LIST OF SCHEDULES
			
	 Schedule 7.1
		–		MacroGenics’ Estimated, Non-Binding Manufacturing Costs

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 COLLABORATION AND LICENSE AGREEMENT 

THIS COLLABORATION AND LICENSE AGREEMENT (“Agreement”) is entered into as of December 19, 2014 (the “Execution
Date”), by and between JANSSEN BIOTECH, INC., a Pennsylvania corporation, having its principal place of business at 800/850 Ridgeview Drive, Horsham, PA 19044 (hereinafter “Company”) and MACROGENICS, INC., a
Delaware corporation having its principal place of business at 9640 Medical Center Drive, Rockville, MD 20850 (together with its Affiliates, “MacroGenics”). Company and MacroGenics are sometimes referred to herein individually as a
“Party” and collectively as the “Parties”. 
 WHEREAS, MacroGenics has discovered and is developing
a proprietary program that includes a Compound (as defined below) containing CD3 and CD19 specificities and is coded by MacroGenics as MGD011, with various potential human therapeutic uses; 

WHEREAS, Company desires to obtain certain license rights in respect of such Compound, all in accordance with the terms and conditions
of this Agreement, with MacroGenics retaining certain options to co-promote the Initial Product (as defined below) in the U.S. and to co-fund certain development costs and participate in the profits and losses of the Initial Product, all as set
forth in this Agreement; and 
 WHEREAS, MacroGenics and Johnson & Johnson Innovation - JJDC, Inc., an Affiliate (as defined
below) of Company, are contemporaneously entering into that certain Stock Purchase Agreement and that certain Investor Agreement, each as of the Execution Date. 

NOW, THEREFORE, in consideration of the foregoing and the premises and conditions set forth herein, the Parties agree as follows: 

ARTICLE 1 
 DEFINITIONS

 1.1 “Accelerated Approval” means FDA approval of a BLA that (a) includes clinical data from a Phase 2 Trial or Phase 2/3
Trial, but no clinical data from a Phase 3 Trial; (b) has been granted expedited review by the FDA (e.g., such BLA has been granted a Breakthrough Therapy designation pursuant to Section 506(a) of the FFDCA or a Fast Track
designation pursuant to Section 506(b) of the FFDCA); or (c) has been granted orphan drug status pursuant to Section 526 of the FFDCA. 

1.2 “Acquirer” means any Third Party that is a party to any Change of Control transaction and any of such Third Party’s
Affiliates. 
 1.3 “Affiliate” means, with respect to a particular Person, a person, corporation, partnership, or other entity that
controls, is controlled by or is under common control with such first Person. For the purposes of this definition, the word “control” (including, with correlative meaning, the terms “controlled by” or “under the common
control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of fifty percent (50%) or
more of the voting stock of such entity, or by contract or otherwise. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.4 “Alliance Manager” means the person appointed by each Party from within their
respective organization to coordinate and facilitate the communication, interaction and cooperation of the Parties pursuant to this Agreement. 
 1.5
“Antitrust Laws” means any law relating to competition that is enforced by (a) the Federal Trade Commission or the Antitrust Division of the U.S. Department of Justice or (b) any equivalent foreign authority, including the
European Commission. 
 1.6 “Applicable Law” means all applicable statutes, ordinances, regulations, rules, or orders of any kind
whatsoever of any Governmental Authority, including the FFDCA, Prescription Drug Marketing Act of 1987 (21 U.S.C. §§331, 333, 353, 381), the Generic Drug Enforcement Act of 1992 (21 U.S.C. §335(a) et seq.), U.S. Patent Act (35 U.S.C.
§1 et seq.), Federal False Claims Act (31 U.S.C. §3729 et seq.), and the Anti-Kickback Statute (42 U.S.C. §1320a-7b et seq.), all as amended from time to time, together with any rules, regulations, and compliance guidance promulgated
thereunder. 
 1.7 “BLA” means (a) a Biologics License Application as defined in the Public Health Service Act and the
regulations promulgated thereunder, (b) a Marketing Authorization Application in Europe, or (c) any equivalent or comparable application, registration or certification in any other country or region. 

1.8 “Business Day” means a day other than Saturday, Sunday or any other day that is designated as a J&J holiday in the J&J
Universal Calendar (a copy of which for the years 2014 and 2015 is attached as Exhibit E and a copy of which prior to the beginning of each such year for succeeding years shall be provided to MacroGenics). 

1.9 “Calendar Quarter” means a financial quarter based on a Calendar Year; provided, however, that the first Calendar
Quarter and the last Calendar Quarter may be partial quarters as applicable under the relevant Calendar Year. 
 1.10 “Calendar
Year” means a year based on the Johnson & Johnson Universal Calendar; provided, however, that the first Calendar Year and the last Calendar Year of the applicable period (such as the Royalty Term) may be a partial
year as the case may be. 
 1.11 “Centralized Approval Procedure” means, to the extent compulsory or permitted for the Regulatory
Approval of a Compound or Product in Iceland, Liechtenstein, Norway or any country in the European Union, the procedure administrated by the EMA which results in a single marketing authorization that is valid in Iceland, Liechtenstein, Norway and
all countries in the European Union. 
 1.12 “CFDA” means the China Food and Drug Administration and any successor agency(ies) or
authority having substantially the same function. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.13 “Change of Control” shall occur if: (a) any Third Party acquires directly or
indirectly the beneficial ownership of any voting security of a Party, or if the percentage ownership of such person or entity in the voting securities of a Party is increased through stock redemption, cancellation or other recapitalization, and
immediately after such acquisition or increase such Third Party is, directly or indirectly, the beneficial owner of voting securities representing more than fifty percent (50%) of the total voting power of all of the then outstanding voting
securities of a Party; (b) a merger, consolidation, recapitalization, or reorganization of a Party is consummated, other than any such transaction, which would result in stockholders or equity holders of such Party immediately prior to such
transaction, owning at least fifty percent (50%) of the outstanding securities of the surviving entity (or its parent entity) immediately following such transaction; (c) the stockholders or equity holders of a Party approve a plan of
complete liquidation of such Party, or an agreement for the sale or disposition by such Party of all or substantially all of such Party’s assets, other than pursuant to the transaction described above or to an Affiliate; (d) individuals
who, as of the date hereof, constitute the Board of Directors of a Party (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of such Party (provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for election by such Party’s shareholders, was recommended or approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board of Directors of such Party); or (e) the sale or transfer to a
Third Party of (i) all or substantially all of such Party’s assets taken as a whole or (ii) a majority of such Party’s assets which relate to this Agreement, is effected. 

1.14 “Clinical Trials” means a Phase 1 Trial, Phase 2 Trial, Phase 2/3 Trial, Phase 3 Trial or Phase 4 Trial, as applicable. 

1.15 “Co-Funding Term” means the time period commencing on the date that Company receives the Co-Funding Option Exercise Notice and
concluding on the Co-Funding Termination Date. 
 1.16 “Co-Funding Termination Date” means the last day of the Calendar Quarter
during which the Co-Funding Termination Event occurs. 
 1.17 “Co-Funding Termination Event” means the earlier of: (a) the
[***] after MacroGenics’ receipt of a GDC Late Payment Notice, provided that MacroGenics has not paid the entire non-disputed outstanding amount due under the applicable GDC Invoice; (b) Company’s receipt of the Co-Funding
Opt-Out Notice; (c) if, Net Sales of the Initial Product in the Northern American Territory are less than [***], the last day of such second Calendar Year or (d) [***] after the First Commercial Sale of the Initial Product in the Northern
American Territory. 

  
 3 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.18 “Combination Product” means (a) a Product that comprises, consists of or
incorporates two (2) or more active pharmaceutical ingredients or (b) a package that includes a Product and at least one pharmaceutical product that is not a Product. 

1.19 “Commercial FTE” means [***] of work devoted to or in direct support of the Commercialization of a Product (other than Detailing)
that is carried out by one or more qualified employees or contractors or consultants of MacroGenics or its Affiliates or Company or its Affiliates, [***]. 

1.20 “Commercial FTE Costs” means, with respect to any period, the Commercial FTE Rate multiplied by the number of Commercial FTEs
expended by a Party during such period. 
 1.21 “Commercial FTE Rate” means a rate of [***] per Commercial FTE per Calendar Year
(pro-rated for the period beginning on the Effective Date and ending on the last day of the first Calendar Year of the Term); provided, however, that such rate shall be increased or decreased annually beginning on January 4, 2016
by the percentage increase or decrease in the [***]. The Commercial FTE Rate is “fully burdened” and covers employee salaries, benefits, travel and other costs not separately accounted for in Commercialization Expenses. 

1.22 “Commercialization” means any activities directed to marketing, promoting, distributing, importing, offering to sell and/or
selling a Product. When used as a verb, “Commercialize” means to engage in Commercialization activities. 
 1.23
“Commercially Reasonable Efforts” means, with respect to the efforts to be expended, or considerations to be undertaken, by a Party or its Affiliate with respect to any objective, activity or decision to be undertaken hereunder,
reasonable, good faith efforts to accomplish such objective, activity or decision as such Party would normally use to accomplish a similar objective, activity or decision under similar circumstances, it being understood and agreed that, with respect
to the Development, Manufacture, seeking and obtaining Regulatory Approval, or Commercialization of a Compound or Product, such efforts and resources shall be consistent with those efforts and resources commonly used by a Party under similar
circumstances for similar compounds or products to which it has similar rights, which compound or product, as applicable, is at a similar stage in its development or product life and is of similar market potential, taking into account all
commercial, scientific, economic and other factors, including: (a) issues of efficacy, safety, and expected and actual approved labeling; (b) the expected and actual competitiveness of alternative products sold by Third Parties in the
marketplace; (c) the expected and actual product profile of the Compound or Product; (d) the expected and actual patent and other proprietary position of the Compound or Product; (e) the likelihood of Regulatory Approval of the
Compound or Product given the regulatory structure involved, including the likelihood of obtaining Regulatory Exclusivity; and (f) the expected and actual profitability and return on investment of the Compound or Product, taking into
consideration, among other factors, expected and actual Third Party costs and expenses, the pricing and reimbursement relating to the Product(s), and the payments due to a Party hereunder. To the extent that the performance of a Party’s
obligations hereunder is adversely affected by the other Party’s failure to perform its obligations hereunder, the impact of such performance failure will be taken into account in determining whether such first Party has used Commercially
Reasonable Efforts to perform its affected obligations. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.24 “Company Applied Technology” means, with respect to any Reverted Product,
(a) any Know-How Controlled by Company as of the Effective Date or during the Term (other than as a result of the licenses granted by MacroGenics to Company under this Agreement) that (i) Company had applied to such Reverted Product prior
to termination of this Agreement, provided that such Know-How is necessary for the continued Exploitation of such Reverted Product as it exists at the time of such termination or (ii) Company had incorporated into such Reverted Product
prior to termination of this Agreement and (b) any Patents Controlled by Company as of the Effective Date or during the Term that Covers the Know-How described in clause (a). 

1.25 “Company Inventions” means Inventions Controlled by Company that are necessary or otherwise used to Exploit Compounds or Products
in the Field in the Territory. 
 1.26 “Company Know-How” means all Know-How Controlled by Company, during the Term, used to Exploit
Compounds or Products in the Field in the Territory as contemplated by this Agreement, including Company Inventions. 
 1.27 “Company
Patents” means all Patents Controlled by Company, covering Inventions discovered or invented during the Term pursuant to activities under this Agreement that: (a) Cover the composition of matter of, the method of making or using, or
the sale or the importation of the Compounds or the Products, to the extent included within a Company Invention; or (b) are otherwise used to Exploit the Compounds or the Products in the Field in the Territory. 

1.28 “Company Technology” means, collectively, the Company Patents and the Company Know-How. 

1.29 “Competitive Infringement” means any infringement or misappropriation that involves the Development, Manufacture, use or
Commercialization of a product or product candidate that [***]. 
 1.30 “Compound” means (a) MGD011, its derivatives and
variants, including molecules that [***] and are specifically claimed in Patents that specifically claim the amino acid sequence of MGD011; and (b) any other DART derived from the DART Platform that [***]. 

1.31 “Confidential Information” means, subject to ARTICLE 12, all non-public or proprietary Information disclosed by a Party to the
other Party under this Agreement, which may include ideas, inventions, discoveries, concepts, compounds, compositions, formulations, formulas, practices, procedures, processes, methods, knowledge, know-how, trade secrets, technology, inventories,
machines, techniques, development, designs, drawings, computer programs, skill, experience, documents, apparatus, results, clinical and regulatory strategies, Regulatory Documentation, Information and submissions pertaining to, or made in
association with, filings with any Governmental Authority, data, including pharmacological, toxicological and clinical 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
data, analytical and quality control data, manufacturing data and descriptions, patent and legal data, market data, financial data or descriptions, devices, assays, chemical formulations,
specifications, material, product samples and other samples, physical, chemical and biological materials and compounds, and the like, without regard as to whether any of the foregoing is marked “confidential” or “proprietary,” or
disclosed in oral, written, graphic, or electronic form. 
 Confidential Information shall include: (a) the terms and conditions of this Agreement; and
(b) Confidential Information disclosed by either Party pursuant to the Confidential Disclosure Agreement [***] (the “Prior CDA”). 

1.32 “Control” or “Controlled” means, with respect to any Information, Know-How, Patent or other intellectual
property right, (a) ownership by a Party or, subject to Section 16.5, any of its Affiliates, of such Information, Know-How, Patent or other intellectual property right, or (b) possession by a Party or, subject to Section 16.5,
any of its Affiliates, of the ability (without taking into account any rights granted by one Party to the other Party under the terms of this Agreement) to grant access, a license or a sublicense to such Information, Know-How, Patent or other
intellectual property right without violating the terms of any agreement or other arrangement with, or necessitating the consent of, any Third Party, at such time that the Party would be first required under this Agreement to grant the other Party
such access, license or sublicense, but excluding, in each case ((a) and (b)), any Information, Know-How, Patent or other intellectual property right that comes into the Control of a Party pursuant to a Change of Control of such Party, except to the
extent, and only to the extent that, such Information, Know-How, Patent or other intellectual property right is either (i) actually used by such Party or its Affiliates, or the Acquirer, to Develop, Manufacture or Commercialize the Compounds or
Products following the consummation of such Change of Control or (ii) made, conceived or reduced to practice by the Acquirer through the use of, or reference to, any Information, Know-How, Patent or other intellectual property right of such
Party. 
 1.33 “Co-Promote Option Deadline” means [***] after Company delivers the Co-Promote Materials relating to such second
Indication to MacroGenics in accordance with Section 8.3 (the [***]”). 
 1.34 “Cover” or “Covering”
means, with respect to a product, technology, process or method, that, in the absence of ownership of or a license granted under a Valid Claim, the practice or Exploitation of such product, technology, process or method would infringe such Valid
Claim (or, in the case of a Valid Claim that has not yet issued, would infringe such Valid Claim if it were to issue). 
 1.35 “CPI”
means the Consumer Price Index-Urban Wage Earners and Clerical Workers, U.S. City Average, All Items, 1982-1984=100, published by the U.S. Department of Labor, Bureau of Labor Statistics (or its successor equivalent index) in the U.S. 

1.36 [***] 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.37 “DART” means a dual affinity re-targeting molecule consisting of [***]. 

1.38 “DART Platform” means MacroGenics’ proprietary platform for generating DARTs. 

1.39 “Detail” or “Detailing” means an interactive face-to-face meeting between a sales representative acting on
behalf of the applicable Party and a health care professional having prescribing authority within the target audience that occurs after Regulatory Approval of a Product, during which such Product’s attributes (including approved uses, safety,
effectiveness, contraindications, side effects warnings and/or other relevant characteristics) are discussed in an effort to increase prescribing preferences of such Product for its approved uses, in a manner consistent with Applicable Law and
industry standards and with the quality of similar presentations made by a Party’s sales representatives for such Party’s other products, if applicable. Details may include First Position Details or Second Position Details. Detailing shall
not include (a) sample drops made by sales representatives, (b) medical affairs activities or related activities conducted by medical support staff (such as medical science liaisons), (c) activities conducted at conventions,
(d) electronic details or (e) activities performed by market development specialists, managed care account directors or other personnel not performing face-to-face sales calls or not specifically trained with respect to a Product. 

1.40 “Development” means all research and non-clinical and clinical drug development activities and processes, including toxicology,
pharmacology, project management and other non-clinical efforts, statistical analysis, formulation development, delivery system development, statistical analysis, Manufacturing Development, the performance of clinical trials (including the
manufacturing of Product for use in clinical trials), or other activities reasonably necessary in order to obtain, but not maintain, Regulatory Approval of Products in the Field in the Territory. When used as a verb, “Develop” means
to engage in Development activities. 
 1.41 “Development FTE” means (a) with respect to Company, [***] hours of work devoted
to or in direct support of the Global Development Activities by one or more qualified employees or contractors or consultants of Company or its Affiliates, as measured in accordance with Company’s normal time allocation practices, or
(b) with respect to MacroGenics, [***] of work devoted to or in direct support of the Global Development Activities, pursuant to Section 4.2(c) or providing assistance to Company pursuant to Section 5.2 or Section 7.1 by one or
more qualified employees or contractors or consultants of Company or its Affiliates, as measured in accordance with MacroGenics’ normal time allocation practices, provided that, in each case ((a) and (b)) such employees or contractors or
consultants must be [***]. 
 1.42 “Development FTE Costs” means, with respect to any period, the Development FTE Rate multiplied by
the number of Development FTEs expended by a Party during such period. 
 1.43 “Development FTE Rate” means a rate of [***]
per FTE per Calendar Year (pro-rated for the period beginning on the Effective Date and ending on the last day of the first Calendar Year of the Term); provided, however, that such rate shall be increased or decreased annually
beginning on January 4, 2016 by the [***]. The Development FTE Rate is “fully burdened” and will cover employee salaries and such facilities and equipment and other materials and services, including ordinary laboratory consumables
procured from distributors of relevant products as they may use. 

  
 7 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.44 “Development Transition Date” means the earlier of (a) the IND Clearance Date
for the IND for the first Phase 1 Trial of the Initial Product submitted by MacroGenics in accordance with Section 5.2(a), (b) the date on which the JSC determines that Company shall assume responsibility for the preparation and filing of
such IND in accordance with Section 4.1(a) or (c) twelve (12) months after the Effective Date. 
 1.45 [***]. 

1.46 “Effective Date” means the first (1st) Business Day immediately following the date on which the Parties have actual
knowledge that all applicable waiting periods under the HSR Act with respect to the transactions contemplated hereunder have expired or have been terminated. 

1.47 “EMA” means the European Medicines Agency or any successor agency(ies) or authority having substantially the same function. 

1.48 [***] and including, in each case, the territories and possessions of each country. 

1.49 “European Union” or “EU” means the European Union member states as then-currently constituted; provided,
however, that the EU shall always be deemed to include the [***]. As of the Execution Date, the European Union member states are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom. 

1.50 “Executive Officers” means (a) with respect to Company, either (i) prior to the first Regulatory Approval, the Global
Head of Research and Development (or his or her designee), and (ii) following the first Regulatory Approval, the president of U.S. oncology commercial operations (or his or her designee) and (b) with respect to MacroGenics, the Chief
Executive Officer (or his or her designee). 
 1.51 “Exploit” or “Exploitation” means to research, make, have made,
distribute, import, export, use, have used, sell, have sold, or offer for sale, Develop, Commercialize, register, modify, enhance, improve, Manufacture, have Manufactured or otherwise dispose of a Compound or Product. 

1.52 “FDA” means the U.S. Food and Drug Administration and any successor agency(ies) or authority having substantially the same
function. 
 1.53 “FFDCA” means the U.S. Federal Food, Drug and Cosmetic Act (21 U.S.C. §301 et seq.), as amended from time to
time. 

  
 8 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.54 “Field” means all uses, including the diagnosis, treatment or prevention of any
disease in humans. 
 1.55 “First Commercial Sale” means, on a Product-by-Product and country-by-country basis, the first sale for
monetary value of such Product under this Agreement by Company, its Affiliates or its sublicensees to an end user for use, consumption or resale of such Product in such country in the Field after Regulatory Approval of such Product has been obtained
in such country in the Field, where such sale results in a Net Sale. Sale of a Product under this Agreement by Company to an Affiliate of Company or a sublicensee of Company shall not constitute a First Commercial Sale unless such Affiliate or such
sublicensee is the end user of such Product. For the avoidance of doubt, the sale of Product for clinical study purposes, early access programs (such as to provide patients with a Product prior to Regulatory Approval pursuant to treatment INDs or
protocols, named patient programs or compassionate use programs) or any similar uses shall not constitute a First Commercial Sale. 
 1.56
“First Position Detail” means a Detail in which a Product is Detailed before any other product and a predominant portion of time is devoted to Detailing such Product. 

1.57 “Force Majeure” means any event beyond the reasonable control of the affected Party, which may include embargoes; war or acts of
war, including terrorism; insurrections, riots, or civil unrest; strikes, lockouts or other labor disturbances; epidemics, fire, floods, earthquakes or other acts of nature; acts, omissions or delays in acting by any Governmental Authority (other
than delays incident to the ordinary course of drug development); and failure of plant or machinery. 
 1.58 “FPD” means, with
respect to a Clinical Trial, the first patient dosed in such Clinical Trial. 
 1.59 “FTE” means, collectively, Development FTE,
Commercial FTE and Sales Rep FTE. For clarity, no more than [***] per Calendar Year (or equivalent pro-rata portion thereof for the period beginning on the Effective Date and ending on the last day of the first Calendar Year) may be charged for a
single individual contributing work factoring into any reimbursable FTE Costs hereunder, regardless of how much additional work time is contributed by such individual during such Calendar Year (or period beginning on the Effective Date and ending on
the last day of the first Calendar Year), and any individual contributing less than [***] per Calendar Year (or equivalent pro-rata portion thereof for the period beginning on the Effective Date and ending on the last day of the first Calendar Year)
shall be deemed a fraction of an FTE on a pro-rata basis. 
 1.60 “FTE Costs” means, collectively, Development FTE Costs and
Commercial FTE Costs. 
 1.61 “GAAP” means generally accepted accounting principles in the U.S., consistently applied. 

1.62 “Global Development Activities” means the following Development activities relating to the Initial Product: 

 

	 	(a)	performance of any Phase 2 Trial or Pivotal Trial of the Initial Product in accordance with the Global Development Plan; 

  
 9 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(b)	Manufacturing of the Initial Product to conduct such Phase 2 Trial or Pivotal Trial (and associated Manufacturing Development (except to the extent expressly [***])); and 

 

	 	(c)	preparation, filing and maintenance of Regulatory Documentation directly supporting such Phase 2 Trial or Pivotal Trial and obtaining Regulatory Approval of the Initial Product; 

provided, however, that Global Development Activities shall specifically exclude: [***]. 

1.63 “Global Development Costs” means all of the following expenses related to Global Development Activities incurred by Company or
its Affiliates (or by MacroGenics or its Affiliates pursuant to Section 4.2(c)), regardless of whether such expenses are incurred before or during the Co-Funding Term: 
  

	 	(a)	Third Party Expenses; 

  

	 	(b)	Development FTE Costs; and 

  

	 	(c)	Product Liabilities arising from the conduct of the Global Development Activities before or during the Co-Funding Term (even if such Product Liabilities are not incurred until after the Co-Funding Term),
provided that any Product Liabilities for which a Party is obligated to indemnify the other Party pursuant to Section 15.1 or 15.2 because such Product Liabilities are Losses to which such other Party becomes subject as a result of a
Claim (or would be Losses if such other Party became subject to such Product Liabilities as a result of a Claim) shall be expressly excluded from this definition of Global Development Costs and shall be the responsibility of such first Party to the
extent that such first Party is (or would be) responsible for such Losses pursuant to ARTICLE 15. 

 For purposes of clarity, Global
Development Costs shall not include [***] 
 1.64 “Global Development Plan” means the high-level, written plan attached hereto as
Exhibit B covering the planned Development of the Compounds and the Products, as amended from time to time in accordance with Section 4.2(b). 

1.65 “Good Clinical Practices” or “GCP” means the then-current standards, practices and procedures promulgated or
endorsed by the FDA as set forth in the guideline adopted by the International Conference on Harmonization (“ICH”), titled “Guidance for Industry E6 Good Clinical Practice: Consolidated Guidance” (or any successor
document), including related regulatory requirements imposed by the FDA and comparable regulatory standards, practices and procedures promulgated by the EMA, PMDA, CFDA or other Regulatory Authority applicable to the Territory, as they may be
updated from time to time. 

  
 10 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.66 “Good Laboratory Practices” or “GLP” means the then-current
standards, practices and procedures promulgated or endorsed by the FDA as set forth in 21 C.F.R. Part 58 (or any successor statute or regulation), including related regulatory requirements imposed by the FDA and comparable regulatory standards,
practices and procedures promulgated by the EMA, PMDA, CFDA or other Regulatory Authority applicable to the Territory, as they may be updated from time to time, including applicable guidelines promulgated under the ICH. 

1.67 “Good Manufacturing Practices” or “GMP” means the then-current good manufacturing practices required by the FDA,
as set forth in the FFDCA, as amended, and the regulations promulgated thereunder, for the manufacture and testing of pharmaceutical materials, and comparable Applicable Law related to the manufacture and testing of pharmaceutical materials in
jurisdictions outside the U.S., including the quality guideline promulgated by the ICH designated ICH Q7A, titled “Q7A Good Manufacturing Practice Guidance for Active Pharmaceutical Ingredients” and the regulations promulgated thereunder,
in each case as they may be updated from time to time. 
 1.68 “Governmental Authority” means any multi-national, federal, state,
local, municipal or other government authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch, office, commission, council, court or other tribunal). 

1.69 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended from time to time, and any comparable
Applicable Law in jurisdictions outside the U.S. related to the approval of transactions similar to those contemplated under this Agreement. 
 1.70
“HSR Clearance Date” means the expiration or termination of all applicable waiting periods and requests for information (and any extensions thereof) under the HSR Act. 

1.71 “HSR Filing” means (a) filings by Company and MacroGenics with the U.S. Federal Trade Commission and the Antitrust Division
of the U.S. Department of Justice of a Notification and Report Form for Certain Mergers and Acquisitions (as that term is defined in the HSR Act) with respect to the matters set forth in this Agreement, together with all required documentary
attachments thereto, or (b) equivalent filings with relevant foreign authorities. 
 1.72 “IND” means (a) an
Investigational New Drug application as defined in the FFDCA and applicable regulations promulgated thereunder by the FDA; (b) a clinical trial authorization application for a product filed with a Regulatory Authority in any other regulatory
jurisdiction outside the U.S., the filing of which (in the case of (a) or (b)) is necessary to commence or conduct clinical testing of a pharmaceutical product in humans in such jurisdiction; or (c) documentation issued by a Regulatory
Authority that permits the conduct of clinical testing of a product in humans in such jurisdiction. 
 1.73 “IND Clearance Date”
means, with respect to any IND, the date on which the sponsor of such IND is permitted to initiate clinical trials following submission of such IND to the applicable Regulatory Authority. 

  
 11 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.74 “Indication” means a [***]. 

1.75 “Information” means information, inventions, discoveries, compounds, compositions, formulations, formulas, practices, procedures,
processes, methods, knowledge, know-how, trade secrets, technology, techniques, designs, drawings, correspondence, computer programs, documents, apparatus, results, strategies, Regulatory Documentation, information and submissions pertaining to, or
made in association with, filings with any Governmental Authority or patent office, data, including pharmacological, toxicological, non-clinical and clinical data, analytical and quality control data, manufacturing data and descriptions, market
data, financial data or descriptions, devices, assays, chemical formulations, specifications, material, product samples and other samples, physical, chemical and biological materials and compounds, and the like, in written, electronic, oral or other
tangible or intangible form, now known or hereafter developed, whether or not patentable. 
 1.76 “Initial Product” means the
initial Product Developed hereunder that either (a) contains MGD011 as its sole active pharmaceutical ingredient, or (b) contains a different Compound approved for Development by mutual agreement of the Parties. 

1.77 “Invention” means any invention, discovery or development, whether or not patentable, made, conceived or reduced to practice in
the course of performance of this Agreement, whether made, conceived or reduced to practice solely by, or on behalf of, MacroGenics, Company, the Parties jointly, or any Affiliate of the same. 

1.78 “Johnson & Johnson Universal Calendar” means the calendar of a particular period of twelve (12) months that
constitutes a financial year for the purposes of Johnson & Johnson, a New Jersey corporation and the ultimate parent company of Company (“Johnson & Johnson”), and its Affiliates. 

1.79 “Know-How” means all Information and Inventions Controlled by a Party that are necessary or useful to Exploit Compounds and/or
Products in the Field in the Territory. Know-How excludes any Information contained within a Party’s published Patents. 
 1.80
“Knowledge” means, as applied to a Party, that such Party shall be deemed to have knowledge of a particular fact or other matter to the extent that a reasonably prudent person with primary responsibility for the applicable subject
matter (whether an officer or employee of such Party) knew or should have known of such fact or other matter. 
 1.81 “MAA” or
“Marketing Authorization Application” means an application for Regulatory Approval in any particular jurisdiction other than the U.S. 

1.82 “MacroGenics Inventions” means Inventions Controlled by MacroGenics during the Term that are necessary or useful to Exploit
Compounds or Products in the Field in the Territory. 
 1.83 “MacroGenics Know-How” means all Know-How Controlled by MacroGenics as
of the Execution Date or during the Term, including all MacroGenics Inventions. 

  
 12 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.84 “MacroGenics Options” mean, individually, the Co-Funding Option and the Co-Promote
Option. 
 1.85 “MacroGenics Out-of-Pocket Patent Costs” means all Third Party Expenses incurred by MacroGenics pursuant to the
filing, prosecution and maintenance of MacroGenics Patents. 
 1.86 “MacroGenics Patents” means all Patents Controlled by
MacroGenics, as of the Execution Date or during the Term that: (a) Cover the composition of matter of, or the method of making or using, the sale or the importation of the Compounds or the Products; or (b) are otherwise necessary or useful
to Exploit the Compounds or the Products in the Field in the Territory. The MacroGenics Patents as of the Execution Date include those set forth in Exhibit C. The MacroGenics Patents include any Patents Covering MacroGenics Inventions. 

1.87 “MacroGenics Platform Patent” means a MacroGenics Patent that is a Platform Patent. 

1.88 “MacroGenics Product Patent” means a MacroGenics Patent that is a Product Patent. 

1.89 “MacroGenics Technology” means, collectively, the MacroGenics Patents and the MacroGenics Know-How. 

1.90 “MacroGenics Trademarks” means the trademark DART®, trademarks which
incorporate the acronym “DART”, and related logos. 
 1.91 “Major Markets” mean the [***]. 

1.92 “Manufacture” means all activities and processes related to the manufacturing of a Compound or a Product, or any ingredient
thereof, including manufacturing of finished Product for Development and Commercialization, labeling, packaging, in-process and finished Product testing, release of Product or any component or ingredient thereof, including Compound, quality
assurance activities related to manufacturing and release of Compound or Product, and ongoing stability tests and regulatory activities related to any of the foregoing. Where the context so requires, Manufacture shall also include obtaining Product
from contract manufacturers. When used as a verb, to “Manufacture” means to engage in Manufacturing activities. 
 1.93
“Manufacturing Development” means any of the following with respect to a Compound or Product: [***] 
 1.94
“MGD011” means the compound with the chemical structure and amino acid sequence as set forth on Exhibit D. 
 1.95
“N.A. Profit/Loss” means the profits or losses resulting from the Commercialization of the Initial Product in the Northern American Territory, which shall be equal to [***]. 

1.96 “Net Sales” means, with respect to any Product, the gross amounts invoiced by Company or any of its Affiliates or sublicensees
for sales of such Product to unaffiliated Third Party 

  
 13 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
purchasers in arms-length transactions, less the following deductions calculated in accordance with GAAP and standard internal policies and procedures and accounting standards consistently
applied throughout Johnson & Johnson, to the extent reasonable and customary, and specifically and solely allocated to such Product, whether fixed or variable, and actually taken, paid, accrued, allowed, included, or allocated based on good
faith estimates in the gross sales prices with respect to such sales (and consistently applied as set forth below): 
  

	 	(a)	normal and customary cash, trade or quantity discounts, allowances, and credits allowed, in the form of deductions or fees actually allowed with respect to sales of such Product (to the extent not already reflected in
the amount invoiced), excluding commissions for Commercialization of such Product; 

  

	 	(b)	charge-back payments, rebates, administrative fees, and discounts (or equivalents thereof) payable to trade customers, managed health care organizations, pharmacy benefit managers (or equivalents thereof), group
purchasing organizations, specialty pharmacy providers, federal, state/provincial, local, or other governments, or their agencies or purchasers or reimbursers; 

  

	 	(c)	retroactive price reductions or credits actually granted upon rejections or returns of such Product, where such adjustments are limited to recalls or damaged goods, billing errors, reserves for returns, and the actual
amount of any write-offs for bad debt; 

  

	 	(d)	outbound freight, shipment and insurance costs, to the extent included in the price and separately itemized on the invoice price; 

  

	 	(e)	taxes (other than income taxes assessed against the income arising from the sale of such Product), duties, tariffs, mandated contribution or other governmental charges imposed on the sale of such Product,
including customs duties, VAT (but only to the extent that such VAT are not reimbursable or refundable), excise taxes, use taxes and sales taxes, in each case to the extent included in the price and separately itemized on the invoice price;

  

	 	(f)	compulsory payments and cash rebates related to sales of such Product payable to a Governmental Authority (or agent thereof) pursuant to Applicable Law by reason of any national or local health insurance program
or similar program, including government-levied fees resulting from healthcare reform policies and annual fees paid pursuant to the Patient Protection and Affordable Care Act (“ACA”), provided that such ACA annual fees shall
be reasonably allocable to the Product; and 

  

	 	(g)	amounts payable to patients through co-pay assistance cards or similar forms of rebate directly related to the prescribing of such Product. 

All of the aforementioned deductions shall be determined, on a country-by-country basis, as 

  
 14 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
incurred in the ordinary course of business in type and amount consistent with Company’s or its applicable Affiliate’s or sublicensee’s (as the case may be) business practices
consistently applied across its product lines and accounting standards and verifiable based on the Johnson & Johnson sales reporting system. All such deductions shall be fairly and equitably allocated to such Product and other products of
Company and its Affiliates and sublicensees, such that such Product does not bear a disproportionate portion of such deductions. 
 Notwithstanding the
foregoing, amounts invoiced by Company, its Affiliates, or its sublicensees for the sale of a Product among Company, its Affiliates or its sublicensees for resale shall not be included in the computation of Net Sales hereunder unless such Affiliate
or such sublicensee is the end user of such Product and as long as such Product is subsequently resold to a Third Party end user. In addition, the following shall not be included in the computation of Net Sales: (i) transfer or dispositions of
reasonable quantities of samples of a Product at no cost for promotional or educational purposes, (ii) transfers or dispositions of reasonable and customary quantities of a Product as free samples or donations, or for patient assistance,
testing marketing programs or other similar programs at no cost, and (iii) sales of a Product for clinical study or other scientific testing purposes, early access programs (such as to provide patients with such Product prior to Regulatory
Approval pursuant to treatment INDs or protocols, named patient programs or compassionate use programs) or any similar use. 
 With respect to sales of any
Combination Product in a country, the Parties shall determine Net Sales for such Combination Product in such country by mutual agreement based on the relative contribution of the Product and the other active ingredient(s) in the Combination Product.

 With respect to any Product that is sold in combination with services from Company or the selling Affiliate or sublicensee, where the customer receives a
specific discount for the bundling of products or services, the Net Sales of such Combination Product or Product shall be determined by the mutual agreement of the Parties. 

1.97 “Northern American Territory” shall mean the U.S. and Canada, including in each case the territories and possessions of such
country. 
 1.98 “Patents” means all: (a) patents, including any utility or design patent; (b) patent applications,
including provisionals, substitutions, divisionals, continuations, continuations in-part or renewals; (c) patents of addition, restorations, extensions, supplementary protection certificates, registration or confirmation patents, patents
resulting from post-grant proceedings, re-issues and re-examinations; (d) other patents or patent applications claiming priority directly or indirectly to (i) any such specified patent or patent application specified in (a) through
(c), or (ii) any patent or patent application from which a patent or patent application specified in (a) through (c) claim direct or indirect priority; (e) inventor’s certificates; and (f) other rights issued from a
Governmental Authority similar to any of the foregoing; in each case of (a) through (f), irrespective of whether such patent, patent application or other right arises in the U.S. or any other jurisdiction in the Territory. 

  
 15 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.99 “Person” means an individual, sole proprietorship, partnership, limited partnership,
limited liability partnership, corporation, limited liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization, including a government or political subdivision, department
or agency of a government. 
 1.100 “Phase 1 Trial” means a clinical trial of the Product that (a) (i) is a
first-in-humans trial on subjects who are patients, (ii) is for the purposes of establishing initial safety, tolerability, pharmacokinetic and pharmacodynamic Information for the Product, (iii) exposes subjects to the Product and
(iv) is designed to provide the sponsor of the clinical trial with sufficient Information about the Product to initiate a Phase 2 Trial; or (b) meets the definition in 21 C.F.R. §312.21(a) or any of its foreign equivalents. Solely for
purposes of determining which activities are “Global Development Activities” that are included in “Global Development Costs” shared pursuant to Section 8.2 during the Co-Funding Term, any Phase 1/2 Trial included in the
Global Development Plan shall be treated as a [***]. 
 1.101 “Phase 1/2 Trial” means a clinical trial of the Product that combines
both a Phase 1 Trial and a Phase 2 Trial of such Product into a single protocol, where the Phase 1 Trial portion is performed first to (i) to establish initial safety, tolerability, pharmacokinetic and pharmacodynamic Information for the
Product as a monotherapy or in combination with another agent or (ii) determine the Maximum Tolerable Dose (“MTD”) of such Product in subjects, and the Phase 2 Trial portion is performed second to further evaluate safety and/or
efficacy of such Product as a monotherapy or in combination with another agent in subjects treated with a selected dose. 
 1.102 “Phase 2
Trial” means a clinical trial of the Product (a) with the endpoint of evaluating its effectiveness for a particular Indication or Indications, its short term tolerance and safety, as well as its pharmacokinetic and pharmacodynamic
Information in patients with the Indications under study and is not intended to be pivotal to support Regulatory Approval for the Product; or (b) that meets the definition in 21 C.F.R. §312.21(b) or any of its foreign equivalents. 

1.103 “Phase 2/3 Trial” means a Phase 2 Trial involving a sufficient number of subjects that, prior to commencement of the trial or at
any other defined point in the trial, satisfies both of the following ((a) and (b)): 
  

	 	(a)	such trial is designed to (i) establish that the Product is safe and efficacious for its intended use, and (ii) define and determine warnings, precautions, and adverse reactions that are associated with the
Product in the dosage range to be prescribed, which trial is intended to support Regulatory Approval of such Product or a similar clinical study prescribed by the FDA; and 

 

	 	(b)	such trial is or becomes a registration trial sufficient for filing an application for a Regulatory Approval for such Product in the U.S., as evidenced by (i) an agreement with or statement from the FDA on a
Special Protocol Assessment or equivalent, or (ii) other guidance or minutes issued by the FDA, for such registration trial. 

  
 16 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.104 “Phase 3 Trial” means a clinical trial of the Product (a) on a sufficient
number of patients, which trial (i) is designed to establish that the Product is safe and efficacious for its intended use, (ii) is designed to define warnings, precautions and adverse reactions that are associated with the Product in the
dosage range to be prescribed, and (iii) is pivotal to support Regulatory Approval for the Product; or (b) that meets the definition in 21 C.F.R. §312.21(c) or any of its foreign equivalents. 

1.105 “Phase 4 Trial” means a clinical trial of a Product, possibly including pharmacokinetic studies, which trial (a) is not
required to be completed prior to obtaining Regulatory Approval of an Indication; and (b) either (i) is required by the applicable Regulatory Authority as mandatory to be conducted on or after the Regulatory Approval of an Indication, or
(ii) is conducted voluntarily to enhance marketing or scientific knowledge of the Product (e.g., providing additional drug profile, safety data or marketing support Information, or supporting expansion of Product labeling). 

1.106 “Pivotal Trial” means a Phase 2/3 Trial and/or a Phase 3 Trial. 

1.107 “Platform Claim” means a Patent claim that Covers [***]. 

1.108 “Platform Patent” means a Patent that includes a Platform Claim and no Product Claims. 

1.109 “PMDA” means the Pharmaceuticals and Medical Devices Agency in Japan and any successor agency(ies) or authority having
substantially the same function. 
 1.110 [***]. 

1.111 [***] 
 1.112 “Product”
means any pharmaceutical product, including all forms, presentations, strengths, doses and formulations (including any method of delivery), containing a Compound alone or in combination with other active pharmaceutical ingredients (other than any
active pharmaceutical ingredient that is owned or controlled by MacroGenics or any of its Affiliates that is not a Compound), including any Combination Product. For the sake of clarity, all forms, presentations, doses and formulations of a
pharmaceutical product containing a Compound shall be considered the same Product for purposes of this Agreement, so long as each form, presentation, dose and formulation contains the same Compound and other active pharmaceutical ingredients (and no
other Compounds or other active pharmaceutical ingredients). 
 1.113 “Product Claim” means a Patent claim that (a) Covers
[***]. 
 1.114 “Product Liabilities” means all Losses incurred by Company, its Affiliate or its sublicensee and resulting from or
relating to the use of a Compound and/or a Product in a human (including Clinical Trials and/or Commercialization) in the Territory incurred after the Effective Date. For the avoidance of doubt, Product Liabilities shall include (i) reasonable
attorneys’ and experts’ fees and costs relating to any claim or potential claim against a Party, its Affiliate, or its 

  
 17 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
sublicensee and all losses, damages, fees and costs associated therewith, and (ii) Losses associated with recalls and/or the voluntary or involuntary withdrawal of the Compound and/or the
Product (except to the extent a Party is obligated to indemnify the other Party pursuant to Section 15.1 or 15.2 for such Losses) and (iii) fines, penalties, assessments or other financial sanctions levied by any Governmental Authority
related to such a claim (except to the extent a Party is obligated to indemnify the other Party for such amounts pursuant to Section 15.1 or 15.2 because such amounts are Losses to which such other Party becomes subject as a result of a Claim
(or would be Losses if such other Party became subject to such amounts as a result of a Claim)). 
 1.115 “Product Patent” means any
Patent that does not include a Platform Claim and includes a Product Claim. 
 1.116 “Product Target” means [***]
“CD19” means [***] 
 1.117 “Promotional Materials” means all written, printed, graphic, electronic, audio or video
presentations of Information, including journal advertisements, sales visual aids, formulary binders, reprints, direct mail, direct-to-consumer advertising, disease awareness materials, internet postings, broadcast advertisements and sales reminder
aides (for example, note pads, pens and other such items, if appropriate), which, in each case, are permitted under Applicable Law and intended for use or used by or on behalf of a Party, its Affiliates or its sublicensees in connection with the
Commercialization of the Product in the Territory. 
 1.118 “Regulatory Approval” means any and all approvals (including
supplements, amendments, pre- and post-approvals), licenses, registrations or authorizations of any national, regional, state or local Regulatory Authority, department, bureau, commission, council or other governmental entity, that is necessary to
market and/or sell a Product in any country or jurisdiction in the Territory for one or more uses, including any pricing and reimbursement approvals that are necessary to conduct a launch of such Product in such country or jurisdiction (even if such
approvals are not legally required to launch such Product in such country or jurisdiction). [***] 
 1.119 “Regulatory Approval
Application” means a New Drug Approval Application or Biologics License Application (each, as defined in the FFDCA) in the U.S., or any corresponding application for Regulatory Approval in any country or jurisdiction in the Territory
outside the U.S., including, with respect to the European Union, an MAA filed with the EMA pursuant to the Centralized Approval Procedure or with the applicable Regulatory Authority of a country in Europe with respect to the decentralized procedure,
mutual recognition or any national approval procedure. 
 1.120 “Regulatory Authority” means any applicable Governmental Authority
involved in granting Regulatory Approval in a country or jurisdiction in the Territory, including (a) in the U.S., the FDA and any other applicable Governmental Authority having jurisdiction over a Product; (b) in the EU, the EMA or any
other applicable Governmental Authority in the EU having jurisdiction over a Product; (c) in Japan, the PMDA; (d) in China, the CFDA; and (e) in any country or jurisdiction other than the U.S., EU, Japan or China, any applicable
Governmental Authority having jurisdiction over a Product. 

  
 18 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.121 “Regulatory Documentation” means, with respect to any Compound or Product, all
regulatory filings and supporting documents created, for, submitted to or received from an applicable governmental agency or Regulatory Authority relating to such Compound or Product, and all data contained therein, including all Regulatory
Materials, as well as the contents of any minutes from meetings (whether in person or by audio conference or videoconference) with Regulatory Authorities, registrations and licenses, regulatory drug lists, advertising and promotion documents shared
with Regulatory Authorities, adverse event files, complaint files and Manufacturing records. 
 1.122 “Regulatory Exclusivity” means
any exclusive marketing rights or data protection or other exclusivity rights conferred by any Regulatory Authority with respect to a Product in a country or jurisdiction in the Territory, including orphan drug exclusivity, pediatric exclusivity,
rights conferred in the U.S. under the Drug Price Competition and Patent Term Restoration Act (21 U.S.C. §355), as amended (the “Hatch-Waxman Act”), the ACA or in the European Union under Directive 2001/83/EC, as amended, and
Regulation (EC) No. 1901/2006, as amended, or rights similar thereto in other countries or regulatory jurisdictions in the Territory, that prevent such Regulatory Authority from granting any regulatory approval under the Biologics Price
Competition and Innovation Act or similar Applicable Law, of a Third Party product that has an amino acid sequence that is the same as or substantially identical to the amino acid sequence of such Product; provided, however, that, in
the event that a Regulatory Authority confers more than one type of exclusivity with respect to a Product in a country or jurisdiction (e.g., the FDA grants both new chemical entity exclusivity and orphan drug exclusivity with respect to such
Product), “Regulatory Exclusivity” will be deemed to apply to such Product in such country so long as any Regulatory Exclusivity granted to such Product prevents such Regulatory Authority from granting any regulatory approval under the
Biologics Price Competition and Innovation Act, or similar Applicable Law, of a Third Party product that has an amino acid sequence that is the same as or substantially identical to the amino acid sequence of such Product. Regulatory Exclusivity
shall not include exclusivity conferred by a Patent right. 
 1.123 “Regulatory Materials” means regulatory applications,
submissions, notifications, registrations, Regulatory Approvals or other regulatory submissions, including any written correspondence or meeting minutes, made to, made with, or received from a Regulatory Authority that are necessary or reasonably
desirable in order to research Develop, Manufacture, or Commercialize a Product in a particular country or jurisdiction in the Territory. Regulatory Materials include INDs and Regulatory Approval Applications, and amendments and supplements for any
of the foregoing, and applications for pricing and reimbursement approvals. 
 1.124 “Royalty Term” means, [***], the time period
beginning with the First Commercial Sale of such Product in such country and continuing until the later of: (a) the expiration of the last Valid Claim Covering the composition of matter or the method of making or using such Product included in
a MacroGenics Patent licensed to Company under the Company License; (b) [***]; or (c) if Regulatory Exclusivity is granted with respect to such Product in such country, the expiration or termination of such Regulatory Exclusivity in such
country. 

  
 19 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 1.125 Second Position Detail” means a Detail in which a Product is Detailed in the second
position (i.e., no more than one other product is presented to or discussed with the applicable healthcare professional before such Product) and the second most predominant portion of time is devoted to the Detailing of such Product. 

1.126 “Tax” or “Taxes” means any present or future taxes, levies, imposts, duties, charges, assessments or fees of
any nature (including any interest thereon). 
 1.127 “Territory” means any country in the world. 

1.128 “Third Party” means any Person other than (a) Company, (b) MacroGenics or (c) an Affiliate of either of Company
or MacroGenics. 
 1.129 “Third Party Expenses” means out-of-pocket expenses incurred by a Party or any of its Affiliates for
services performed by a Third Party on behalf of Company or MacroGenics in the course of such Party’s performance of this Agreement. For clarity, such Third Party Expenses will include the costs of any raw materials and resins used for
Manufacture of clinical trial material. 
 1.130 “U.S.” means the United States of America, including its territories and
possessions. 
 1.131 “U.S. Commercialization Plan” means a plan, prepared by Company pursuant to Section 6.1 in the event that
MacroGenics exercises the Co-Promote Option, for the coordination of Detailing activities in the U.S. 
 1.132 “Valid Claim”tmeans
(a) a claim of an issued and unexpired Patent, to the extent such claim has not been revoked, held invalid or unenforceable by a patent office, court or other Governmental Authority of competent jurisdiction in a final order, from which no
further appeal can be taken, and which claim has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise; or (b) a claim within a patent application that has not been
pending for more than [***] from the date of its first priority patent application filing anywhere in the Territory and which claim has not been revoked, cancelled, withdrawn, held invalid or abandoned. 

Additional Definitions. Each of the following definitions is set forth in the Section of this Agreement indicated below: 

 

			
	 Definition
	  	 Section

	ACA	  	1.96
	Advertising and Market Research Expenses	  	Exhibit A
	Agreement	  	Preamble
	Approval Milestone	  	9.3(b)
	Approval Milestone Payment	  	9.3(b)
	Bankruptcy Laws	  	13.7(b)
	Breaching Party	  	13.3(a)

  
 20 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

			
	 Definition
	  	 Section

	CD3	  	1.116
	CD19	  	1.116
	Claim	  	15.1
	Clinical Supply Agreement	  	7.1
	Co-Funding Approval Milestone	  	9.3(c)
	Co-Funding Approval Milestone Payment	  	9.3(c)
	Co-Funding Materials	  	8.2(b)
	Co-Funding Option	  	8.2(a)
	Co-Funding Option Deadline	  	8.2(a)
	Co-Funding Option Exercise Notice	  	8.2(a)
	Co-Funding Opt-Out	  	8.2(e)
	Co-Funding Opt-Out Notice	  	8.2(e)
	Co-Funding Sales Milestone	  	9.3(e)
	Co-Funding Sales Milestone Payment	  	9.3(e)
	Commercialization Expenses	  	Exhibit A
	Company	  	Preamble
	Company Detailing Expenses	  	Exhibit A
	Company Indemnitee	  	15.2
	Company License	  	3.1
	Cooperating Party	  	12.5(b)
	Co-Promote Materials	  	8.3(b)
	Co-Promote Option	  	8.3(a)
	Co-Promote Option Exercise Notice	  	8.3(a)
	Co-Promotion Agreement	  	8.3(c)
	Cost Cap	  	8.2(d)(iii)
	Cost Per PDE	  	Exhibit A
	Cost Variances	  	Exhibit A
	[***]	  	14.3
	Cure Period	  	13.3(a)
	[***]	  	[***]
	Development Milestone	  	9.3(a)
	Development Milestone Payment	  	9.3(a)
	Disclosing Party	  	12.1
	Dispute(s)	  	14.1
	Distribution Expenses	  	Exhibit A
	EAP Expenses	  	Exhibit A
	Education Expenses	  	Exhibit A
	[***]	  	[***]
	Execution Date	  	Preamble
	[***]	  	[***]
	[***]	  	[***]
	[***]	  	[***]

  
 21 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

			
	 Definition
	  	 Section

	[***]	  	[***]
	GDC Invoice	  	8.2(d)(ii)
	GDC Late Payment Notice	  	8.2(d)(ii)
	GDC Repayment Option	  	8.2(e)(iii)
	Good Faith Dispute	  	10.4
	Hatch-Waxman Act	  	1.122
	ICH	  	1.65
	Incumbent Board	  	1.13
	Indemnifying Party	  	15.3(a)
	Indemnitee	  	15.3(a)
	Infringement Recovery	  	10.5(d)
	Insolvency Event	  	13.7(a)
	Insolvent Party	  	13.7(b)
	Johnson & Johnson	  	1.78
	Joint Inventions	  	10.1
	Joint Patents	  	10.3(d)
	JSC	  	2.1(a)
	Licensed Patents	  	11.2(b)
	Losses	  	15.1
	MacroGenics	  	Preamble
	MacroGenics Indemnitee	  	15.1
	Manufacturing Expenses	  	Exhibit A
	Manufacturing Process	  	7.1(a)
	Manufacturing Technology Transfer	  	7.1(a)
	Manufacturing Transition Plan	  	7.1(a)
	Marketing Expenses	  	Exhibit A
	Marketing Management Expenses	  	Exhibit A
	Medical Affairs Expenses	  	Exhibit A
	Milestone Events	  	9.3
	Milestone Payments	  	9.3
	MTD	  	1.101
	Non-Insolvent Party	  	13.7(b)
	Other Costs	  	Exhibit A
	Other Costs Not Included in Standard	  	Exhibit A
	Party/Parties	  	Preamble
	Patent Extension(s)	  	10.4
	PDE	  	Exhibit A
	Phase 4 Trial Expenses	  	Exhibit A
	[***]	  	[***]
	Prior CDA	  	1.31
	Protocol	  	14.3(b)(iii)
	PVA	  	5.3(b)

  
 22 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

			
	 Definition
	  	 Section

	Quarterly N.A. Profit/Loss Report	  	9.9(b)
	Recall Expenses	  	Exhibit A
	Receiving Party	  	12.1
	Requesting Party	  	12.5(b)
	Reverted Product	  	13.8(a)(iv)
	Sales Milestone	  	9.3(d)
	Sales Milestone Payment	  	9.3(d)
	Sales Rep FTE	  	Exhibit A
	Sales Rep FTE Rate	  	Exhibit A
	Sales Rep PDE Total	  	Exhibit A
	[***]	  	[***]
	Selling Costs	  	Exhibit A
	Sole Inventions	  	10.1
	Standard Cost of Goods Manufactured	  	Exhibit A
	Term	  	13.1
	Terminated Country	  	13.8
	Terminated Product	  	13.8
	Terminating Party	  	13.3(a)
	Third Party Obligation	  	9.10(a)
	Third Party Obligation Expenses	  	Exhibit A
	Third Party Patent Challenge	  	10.7(b)
	Transition Plan	  	4.1(b)

 ARTICLE 2 

GOVERNANCE 
 2.1 Joint Steering
Committee. 
  

	 	(a)	Formation and Purpose. The Parties agree to establish and convene a joint steering committee (the “JSC”) within [***] after the Effective Date. The JSC shall consist of representatives from each
Party as further described in Section 2.1(d) and operate in accordance with this Section 2.1. The purpose of the JSC shall be to provide a forum for the overall coordination, communication and oversight of the Parties’ activities
under this Agreement, including the resolution of disputes properly referred to the JSC under this Agreement. 

  

	 	(b)	Responsibilities of the JSC. The JSC’s overall responsibility shall be to: 

(i) discuss, approve and oversee MacroGenics Development, regulatory and Manufacturing activities with respect to the
Initial Product; 
 (ii) discuss, approve and oversee the Transition Plan and Manufacturing Transition Plan; 

  
 23 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 (iii) if MacroGenics exercises the Co-Funding Option in accordance with
Section 8.2(a), encourage and facilitate communication and information sharing regarding Global Development Activities and Commercialization of the Initial Product in the Northern American Territory, including review and discussion of
Company’s then-current Global Development Plan, during the Co-Funding Term; 
 (iv) coordinate the fulfillment of
those rights and obligations arising from MacroGenics’ exercise of any of the MacroGenics Options; 
 (v) decide
matters and resolve disputes referred to the JSC which the JSC has authority to decide or resolve under this Agreement; and 

(vi) perform other obligations specifically delegated to it under this Agreement. 

 

	 	(c)	JSC Decisions and Actions. Actions to be taken by the JSC shall be taken only following [***], with each Party having [***]. If the JSC fails to reach unanimous agreement on a matter before it for decision within
[***] from the date that the matter is first presented to the JSC in writing, such matter shall be referred to the Executive Officers for discussion and resolution pursuant to Section 14.2. Any resolution of such matter by the Executive
Officers shall be final and binding on the Parties. If the Executive Officers are not able to resolve the matter within the [***] period specified in Section 14.2, then [***] with respect to such matter, and [***] on such matter shall be final
and binding on the Parties, subject to the limitations set forth in Section 2.5. 

  

	 	(d)	JSC Membership. Promptly after the Effective Date, each Party shall designate three (3) such representatives for the JSC. The JSC may elect to vary the number of representatives from time to time,
provided that, unless otherwise agreed by the Parties in writing at the JSC, the JSC shall maintain an equal number of representatives from each Party. Each representative shall have the appropriate level of experience in the subject area of
the JSC, and at least one (1) representative shall have sufficient seniority within the applicable Party’s organization to have the necessary decision-making authority in order for the JSC to fulfill its responsibilities. Either Party may
designate substitutes for its JSC representatives if one (1) or more of such Party’s designated representatives is unable to be present at a meeting. From time to time each Party may replace its JSC representatives by written notice to the
other Party specifying the prior representative(s) and their replacement(s). Each representative shall be bound by confidentiality and non-use obligations at least as restrictive as those set forth in this Agreement. 

 

	 	(e)	 JSC Chairperson. The JSC will have a chairperson, to be designated by Company. The chairperson shall be responsible for calling and convening
meetings, but shall have no special authority over the other members of the JSC, 

  
 24 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
and shall have no additional voting rights. The chairperson (or its designate) shall: (i) prepare and circulate an agenda reasonably in advance of each upcoming meeting; and
(ii) prepare and issue minutes of the JSC meeting within thirty (30) days thereafter. Such minutes shall not be finalized until each JSC representative reviews and approves such minutes, provided that any minutes shall be deemed
approved unless a JSC representative objects to the accuracy of such minutes within [***] after the circulation of the minutes. 

  

	 	(f)	Meetings.  

 (i) Timing and Frequency. No
later than [***] after the Effective Date, the JSC will hold an in-person meeting to establish the JSC’s operating procedures. The JSC shall meet at least once every Calendar Quarter until the later of the Co-Funding Option Deadline or the
final Co-Promote Option Deadline, at which time the JSC shall dissolve; provided, however, that, (A) in the event MacroGenics exercises the Co-Funding Option, the JSC shall meet at least 

once every Calendar Quarter until the end of the end of the Co-Funding Term, unless otherwise agreed by the Parties, and (B) in the event
that MacroGenics exercises the Co-Promote Option oversight of Co-Promotion activities shall be as specified in the Co-Promotion Agreement. Additional meetings of the JSC may be held with the consent of each Party (such consent not to be unreasonably
withheld, delayed or conditioned), as required under this Agreement or to resolve any matter or dispute referred to the JSC in accordance with this Agreement. In the case of any matter or dispute referred to the JSC, such meeting shall be held
within [***] following referral to the JSC, or as soon as reasonably possible thereafter. 
 (ii) Meeting
Procedures. Meetings of the JSC shall be effective only if a majority of representatives of each Party are present or participating. Other than the initial meeting, the JSC may meet either (i) in person at either Party’s facilities
or at such locations as the Parties may otherwise agree, at least twice every Calendar Year; or (ii) by audio or video teleconference. Each Party shall be responsible for all of its own expenses incurred in connection with its
representatives’ participation in the JSC meeting, including all travel and lodging. All other Third Party expenses incurred by the JSC in furtherance of a JSC meeting, such as expenses associated with off-site meetings, shall be shared equally
by the Parties. 
 (iii) Non-Member Participation. Additional non-members of the JSC having relevant
experience may from time to time be invited to participate in a JSC meeting, provided that such participants shall have no voting rights or powers. Non-member participants who are not employees of a Party or its Affiliates shall only be
allowed to attend if: (i) the other Party’s representatives have consented to the attendance (such consent not to be unreasonably withheld, delayed or conditioned); and (ii) such non-member participant is subject to confidentiality
and non-use obligations at least as restrictive as those set forth in this Agreement. 

  
 25 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 2.2 Additional Subcommittees and Working Groups. The JSC may establish other subcommittees or
working groups, as needed to further the purposes of this Agreement, including any responsibilities assigned to the JSC under this Agreement; provided, however, that the JSC shall not delegate its dispute resolution authority. In
particular, if MacroGenics exercises the Co-Funding Option, the Parties contemplate establishment of a Joint Development Committee to facilitate communication regarding Global Development Activities during the Co-Funding Term and a Joint Marketing
Committee to facilitate communication and information sharing regarding the Commercialization of the Initial Product in the Northern American Territory. The purpose, scope and procedures of any such subcommittee or working group shall be mutually
agreed in writing by the JSC. Actions to be taken by any subcommittee or working group shall be taken only following unanimous vote, with each Party having one (1) vote. If any subcommittee or working group fails to reach unanimous agreement on
a matter before it for decision relating to the Development or Commercialization of Products for a period in excess of [***] from the date that the matter is first presented to such subcommittee or working group in writing, such matter shall be
referred to the JSC for resolution pursuant to Section (c). 
 2.3 Authority. The Parties agree that it shall be conclusively presumed that,
unless otherwise explicitly stated, each voting member of the JSC, or each subcommittee or working group established by the JSC, has the authority and approval of such member’s respective senior management in casting his or her vote. The JSC,
and each subcommittee or working group established by the JSC, shall each have only the powers assigned expressly to the JSC in this ARTICLE 2 and elsewhere in this Agreement, and shall not have any power to amend or modify the Global Development
Plan or the U.S. Commercialization Plan or to amend, modify or waive compliance with this Agreement. 
 2.4 Alliance Managers. Promptly
following the Effective Date, each Party shall designate in writing an Alliance Manager to serve as the primary point of contact for the Parties regarding all collaboration activities contemplated under this Agreement. Each Alliance Manager shall
facilitate communication and coordination of the Parties’ activities under this Agreement relating to the Compounds and the Products. The Alliance Managers shall not be a member of the JSC. The Alliance Managers shall be allowed to attend, as a
non-voting observer, meetings of the JSC, as well as any subcommittee or working group established by the JSC of which the Alliance Manager is not a member. 

2.5 Decision-Making Restrictions. Notwithstanding anything to the contrary in this Agreement, to the extent that [***] with respect to any
matter pursuant to Section 2.1(c), [***] shall not [***] to: (i) expand [***] or [***], or [***]or [***], under this Agreement; (ii) determine that [***], or [***], under this Agreement; (iii) [***] that is expressly stated to
[***] or [***] or the [***] or [***] and; (iv) resolve any dispute regarding whether a [***] or the [***]. 

  
 26 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 ARTICLE 3 

LICENSES 
 3.1 License to
Company. Subject to the terms and conditions of this Agreement, MacroGenics hereby grants to Company an exclusive (even as to MacroGenics), royalty-bearing, non-transferable (except in accordance with Section 16.4) license, with the
right to grant sublicenses as provided in Section 3.1(a), under the MacroGenics Technology, to Exploit the Compounds and the Products in the Field in the Territory (the “Company License”). 

Sublicensing. Company shall have the right to grant sublicenses of the rights granted to Company under this Section 3.1 to:
(i) its Affiliates through multiple tiers; and (ii) Third Parties through multiple tiers subject to the conditions in this subsection (a) provided below. Any sublicenses to Third Parties [***] that include [***] may only be granted
with MacroGenics’ prior consent, not to be unreasonably withheld, conditioned or delayed, unless such sublicense is: (A) in connection with, and only to the extent necessary or useful to enable, a Third Party to perform services for the
Company, its Affiliate or sublicensee in the course of its performance of its Development, Manufacturing and Commercialization rights and obligations under this Agreement; and (B) to one or more Third Party distributors only to the extent
reasonably necessary or useful, to enable such Third Party distributors to Commercialize Products in such countries. Company shall identify each Third Party sublicensee to MacroGenics for which Company has [***]. Each sublicense shall refer to and
be subordinate to this Agreement and, except to the extent the Parties may otherwise agree in writing, any sublicense must be consistent in all material respects with the terms and conditions of this Agreement. Company shall remain responsible for
the performance of this Agreement and the performance of its sublicensees hereunder. Company shall provide to MacroGenics copies of all sublicenses which grant the right to directly [***] to a Third Party in a jurisdiction in the Territory,
provided that Company shall have the right to redact commercially sensitive information from such copies. Information regarding the scope of the license grants, territory and/or term of each such sublicense shall not be considered
commercially sensitive. 
  

	 	(a)	Company Termination of License. Company shall have the right to terminate the Company License with respect to one or more of the MacroGenics Patents included in the Company License, by providing [***] prior
written notice to MacroGenics specifying the MacroGenics Patent(s) to be subject to such termination. Upon the effectiveness of such termination, (i) the Company License will no longer extend to such MacroGenics Patent(s); (ii) such
MacroGenics Patent(s) shall no longer be subject to the provisions of ARTICLE 10, and MacroGenics shall have the sole right to prosecute, maintain, enforce and defend such MacroGenics Patent(s) at MacroGenics’ sole expense; and (iii) no
claims of such MacroGenics Patent(s) shall be considered a Valid Claim for purposes of Section 9.5 or Section 9.6. 

  
 27 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 3.2 Licenses to MacroGenics. Subject to the terms and conditions of this Agreement: 

 

	 	(a)	Company hereby grants back to MacroGenics a non-exclusive, fully-paid, royalty-free, non-transferable (except in accordance with Section 16.4), non-sublicensable sublicense under the Company License for use with
the Compounds and the Products in the Field in the Territory, solely to the extent necessary for MacroGenics to exercise its rights and perform its obligations under this Agreement, including any rights or obligations that arise in the event
MacroGenics elects to exercise any of the MacroGenics Options. 

 Company hereby grants back to MacroGenics a non-exclusive,
fully-paid, royalty-free, non-transferable (except in accordance with Section 16.4), non-sublicensable license under (i) the Company Technology, (ii) any Know-How Controlled by Company, as of the Execution Date or during the Term,
that is incorporated into the embodiment of a Product Developed hereunder, and (iii) any Patent Controlled by Company, as of the Execution Date or during the Term, that Covers technology incorporated into the embodiment of a Product Developed
hereunder, in each case ((i), (ii) and (iii)), for use with the Compounds and the Products in the Field in the Territory, solely to the extent necessary for MacroGenics to exercise its rights and perform its obligations under this Agreement,
including any rights or obligations that arise in the event MacroGenics elects to exercise any of the MacroGenics Options. 
  

	 	(b)	Company hereby grants back to MacroGenics a non-exclusive, fully-paid, royalty-free, non-transferable (except in accordance with Section 16.4), non-sublicensable license under the Company License to [***],
provided that MacroGenics shall not [***] without the prior written consent of Company. 

  

	 	(c)	Company hereby grants to MacroGenics a non-exclusive, fully-paid, royalty-free, non-transferable (except in accordance with Section 16.4) license, with the right to sublicense, under any Platform Patent Controlled
by Company by virtue of the use of the MacroGenics Know-How or exercise of the Company License and that claims technology applied to a Product, [***]. 

3.3 Trademark License. MacroGenics hereby grants Company a non-exclusive license to use the MacroGenics Trademarks in connection with the
Development and Commercialization of the Products, subject to customary and reasonable quality control procedures to be mutually agreed upon by the Parties prior to the launch of any Products. 

3.4 No Implied Licenses. All licenses and rights are granted only as expressly provided in this Agreement and no license or other right is or
shall be created or granted under this Agreement by implication, estoppel, or otherwise. All rights not expressly granted by a Party under this Agreement are reserved by such Party and may not be used by the other Party for any purpose. 

  
 28 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 ARTICLE 4 

DEVELOPMENT 
 4.1 Transition of
Development Responsibilities. 
 During the period beginning on the Effective Date and ending on the Development Transition Date,
MacroGenics shall use diligent efforts to perform (i) all Development activities necessary to [***], other than [***], and (ii) any Development activities assigned to MacroGenics in the Transition Plan; provided, however,
that, in the event that MacroGenics does not [***]after the Effective Date, upon Company’s request, the JSC shall discuss and determine whether Company should assume responsibility for the [***]. If the JSC determines that Company should assume
responsibility for the [***], then, promptly following such determination, MacroGenics shall transfer to Company all Information Controlled by MacroGenics that is reasonably necessary for Company [***] and provide reasonable assistance to Company
with respect to the [***]. 
  

	 	(a)	[***] following the Development Transition Date, MacroGenics shall transfer to Company, and Company shall cooperate in good faith to support MacroGenics’ transfer of, all activities and responsibilities related to
the Compounds and the Products in accordance with a transition plan to be approved by the JSC promptly after the Effective Date (the “Transition Plan”). The Transition Plan shall be designed to effect an efficient transfer from
MacroGenics to Company of all Compound and Product-related Development, Manufacturing, regulatory and other related responsibilities and documentation, as well as all Information Controlled by MacroGenics that is reasonably necessary or useful for
Company’s Exploitation of the Compounds and the Products (including copies or tangible embodiments thereof), and may be updated and amended by the JSC as necessary to effect such transfer. The Transition Plan shall include an itemized list of
deliverables and the dates by which such deliverables are expected to be provided by MacroGenics to Company. Any dispute between the Parties regarding the conduct of the activities set forth in the Transition Plan shall be referred to the JSC for
resolution. 

  

	 	(b)	MacroGenics shall report on the status of any activities conducted pursuant to this Section 4.1 at each meeting of the JSC or as otherwise requested by Company. 

4.2 Development. 
  

	 	(a)	Company Development Activities. Except for Development activities to be undertaken prior to the Development Transition Date by MacroGenics pursuant to Section 4.1, Company shall be solely responsible for and
have sole authority with respect to, at its own expense (subject to MacroGenics’ exercise of the Co-Funding Option), all Development of the Compounds and the Products. Company shall use Commercially Reasonable Efforts to Develop, and to seek
Regulatory Approval for, [***]. In addition, Company shall use Commercially Reasonable Efforts to [***]. 

  
 29 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(b)	Global Development Plan. Except with respect to [***]as specified below, Company shall use Commercially Reasonable Efforts to conduct the Development of the Products for the Territory in accordance with the
Global Development Plan, at its own expense (subject to MacroGenics’ sharing of expenses upon its exercise of the Co-Funding Option). Company shall have the right to make amendments to the Global Development Plan, which shall be consistent with
Company’s Development obligations set forth in Section 4.2(a), and each amended Global Development Plan shall include all material Development activities anticipated to be required to obtain Regulatory Approval for Products in [***], as
well as timelines regarding such activities, including the plans and timelines for preparing the necessary Regulatory Materials. The Global Development Plan shall include any Development activities with respect to [***] that Company elects to
conduct, provided that Company shall have no obligation to conduct Development or to seek Regulatory Approval for Products in [***]. Beginning with the delivery of the Co-Funding Materials and continuing through the Co-Funding Option Deadline
(if MacroGenics does not exercise the Co-Funding Option) and the Co-Funding Termination Date (if MacroGenics exercises the Co-Funding Option), Company shall update the Global Development Plan to include a then-current, non-binding budget for any
Global Development Costs. During the Co-Funding Term, Company shall update and amend, as appropriate, the then-current Global Development Plan and shall submit such updates and/or amendments for review to the JSC. While the Global Development Plan
shall not require the approval of the JSC, Company shall review and consider all comments to the Global Development Plan received from MacroGenics at the JSC in good faith. Company will consider including, in the Global Development Plan, Clinical
Trials using the Initial Product [***], to the extent that Company reasonably determines that such Clinical Trials are feasible from a medical, scientific, regulatory and commercial perspective. The Parties acknowledge and agree that Company’s
ability to conduct such Clinical Trials may be subject to [***] and that Company shall have no obligation to conduct such Clinical Trials unless the conduct of such Clinical Trials is [***]. 

 

	 	(c)	 MacroGenics Development. In the event that MacroGenics, at any time during the Co-Funding Term, wishes to conduct a Clinical Trial of the
Initial Product that is consistent with, but not currently included in, the Global Development Plan, it shall submit a written proposal for the conduct of such Clinical Trial to the JSC for approval, together with a draft protocol, clinical plan and
budget. The JSC shall consider such proposal in good faith. If the JSC approves such proposal, then: (i) such Clinical Trial shall be deemed to be a Global Development Activity and shall become part of the Global Development Plan; (ii) the
costs associated with such 

  
 30 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
Clinical Trial shall be Global Development Costs and shared in accordance with Section 8.2; (iii) upon Company’s request, the Parties shall enter into a clinical trial agreement
governing the conduct of such Clinical Trial, which agreement shall account for necessary regulatory and other considerations and shall be consistent with the terms of this Agreement; (iv) MacroGenics’ agreement with the sites at which
such Clinical Trial is conducted shall be consistent with Company’s form of clinical trial site agreement and with the terms of this Agreement; (v) the Parties shall amend the PVA as necessary to provide for the sharing of information and
data relating to such Clinical Trial; and (vi) MacroGenics shall use Commercially Reasonable Efforts to conduct such Clinical Trial in accordance with the Global Development Plan. If the JSC does not approve such proposal, the JSC shall inform
MacroGenics as to the reasons for such determination and, if the JSC has any specific suggestions for revisions to the protocol that may address the reasons underlying such JSC determination, such suggestions and MacroGenics may submit a revised
proposal to JSC. MacroGenics shall not conduct any Clinical Trial of the Initial Product without the express approval thereof by the JSC. 

  

	 	(d)	Clinical Trial Registries. For all Clinical Trials in the Field in the Territory, Company shall be responsible, in accordance with Applicable Law, for registering in the appropriate clinical trial registry and
posting the results of such Clinical Trials. 

 4.3 Decision-Making. Company shall have sole authority with respect to the
Development of the Compounds and the Products in the Field in the Territory in accordance with this Agreement. 
 4.4 Compliance with Law.
Each Party shall conduct all Development activities related to Compound and Products in all material respects in a good scientific manner and in compliance in all material respects with all Applicable Law, including applicable national and
international (e.g., ICH, GCP, GLP, and GMP) guidelines. 
 4.5 Records. Company shall prepare and maintain, or shall cause to be
prepared and maintained, complete and accurate written records, accounts, notes, reports and data with respect to Development activities conducted pursuant to this Agreement (including the Global Development Plan) in conformity with Applicable Law
and Company’s standard practices, provided that in no case shall such records be maintained for [***] following the Calendar Year to which such records pertain (or any longer period required by Applicable Law). 

4.6 Cooperation. Upon reasonable advance notice, at the request of the JSC, each Party agrees to make its employees and consultants reasonably
available at their respective places of employment to consult with the other Party on issues arising in connection with the Global Development Plan. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 4.7 Progress Reports. No later than [***] and [***], Company shall provide to MacroGenics in
writing (or, if the JSC has not yet been dissolved pursuant to Section 2.1(f)(i), to the JSC verbally) a report detailing Company’s efforts and progress during the [***] to such date, as applicable, to Exploit each Compound and Product.
Each such report shall describe, among other matters: (a) material Development activities completed since the last report, including the object and parameters of the Development, when initiated, when completed and a summary of all material
results; (b) material Development activities planned to be undertaken before the next report, including the type and object of any Clinical Trials to be conducted and their projected starting and completion dates; and (c) material changes
in Company’s Development and Commercialization plans. In addition, Company shall reasonably respond to reasonable requests by MacroGenics for information regarding Company’s 

Development and Commercialization activities for such Compounds and Products, to the extent such information is necessary to assess Company’s compliance
with its obligations hereunder. In addition, if MacroGenics does not exercise the Co-Funding Option or MacroGenics exercises the Co-Funding Opt-Out in accordance with Section 8.2(e), at the request of MacroGenics, the Parties shall meet to
discuss Development and Commercialization progress at either Party’s facilities (or such other location as may be agreed upon by the Parties) on a semi-annual basis. 

4.8 Subcontracting. Company may subcontract the performance of any Development activities conducted in accordance with this Agreement to any of
its Affiliates or any Third Party, provided that Company shall oversee the performance of any subcontracted activities in a manner that would be reasonably expected to result in their successful and timely completion and shall remain
responsible for the performance of such subcontracted activities in accordance with this Agreement. 
 ARTICLE 5 

REGULATORY RESPONSIBILITIES 
 5.1
Initial Data Transfer. 
  

	 	(a)	Within [***] after the Development Transition Date, MacroGenics shall deliver to Company electronic copies (unless otherwise required by Applicable Law) of all Regulatory Materials relating to the Products in the Field
in the Territory which are Controlled by MacroGenics. Upon the completion of such transfer, MacroGenics shall, and hereby does, assign to Company all such Regulatory Materials and shall promptly (and in any case within [***] take all steps
reasonably necessary to effectuate the assignment of all INDs, Regulatory Approval Applications and Regulatory Approvals included in such Regulatory Materials, including submitting to any applicable Regulatory Authority a letter or other necessary
documentation (with copy to Company) notifying the Regulatory Authority of the assignment. In the event that any such IND, Regulatory Approval Application or Regulatory Approval cannot be transferred within such [***] period, MacroGenics shall take
all actions reasonably requested by Company with respect to the maintenance or transfer of such IND, Regulatory Approval Application or Regulatory Approval. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(b)	Within [***] after the Development Transition Date, MacroGenics shall make available to Company separate electronic copies of all remaining Regulatory Documentation, including the study reports from all non-clinical
trials and clinical trials, in each case, whether completed prior to the Development Transition Date or then in-progress, that are Controlled by MacroGenics (to the extent not previously provided to Company). 

 

	 	(c)	Notwithstanding Section 5.1(a) and Section 5.1(b), from time to time after the Development Transition Date, to the extent not done so already, MacroGenics shall, and shall cause its Affiliates to, without
additional compensation, disclose and make available to Company, in whatever form Company may reasonably request, as soon as reasonably practicable after the earlier of the development, making, conception or reduction to practice, all Regulatory
Documentation and other Information Controlled by MacroGenics, which in each case is reasonably necessary or useful for Company’s Exploitation of the Compounds and the Products, including copies or tangible embodiments thereof. For clarity,
MacroGenics will have the right, unless otherwise required by Applicable Law, to retain original copies of the foregoing subject to ARTICLE 12. 

5.2 Preparation of Regulatory Materials. 
  

	 	(a)	By MacroGenics. During the period beginning on the Effective Date and ending on the Development Transition Date, [***], in consultation with [***], shall (i) [***]as soon as possible after the Effective
Date, provided that Company shall [***] and provide a [***], and (ii) take all actions necessary to maintain all Regulatory Materials relating to the Products in the Field in the Territory which are Controlled by MacroGenics.

  

	 	(b)	By Company. Except for the activities to be undertaken prior to the Development Transition Date by MacroGenics pursuant to Section 5.2(a), Company shall, with respect to the Products in the Field in the
Territory, have the sole right and sole authority, at its own expense (subject to MacroGenics’ exercise of the Co-Funding Option), to: (i) develop and implement the overall regulatory strategy with respect to obtaining Regulatory Approval
of Products in the Field in the Territory; (ii) prepare, obtain, and maintain all Regulatory Documentation, including all INDs, Regulatory Approval Applications and Regulatory Approvals; and (iii) conduct communications with the relevant
Regulatory Authorities. The regulatory strategy for the Territory shall be consistent with the Global Development Plan and the terms of this Agreement. All Regulatory Materials (including all Regulatory Approvals) generated with respect to the
Products under this Agreement shall be owned by, and shall be the sole property and held in the name of, Company or its designee. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(c)	MacroGenics Assistance. MacroGenics shall assist Company as reasonably requested in connection with the preparation and filing of Regulatory Documentation for the Territory, at MacroGenics’ sole expense;
provided, however, that Company shall reimburse MacroGenics for FTE Costs and Third Party Expenses incurred by MacroGenics in providing any such assistance later than six (6) months after the Effective Date. 

5.3 Adverse Event Reporting and Safety Data Exchange. 
  

	 	(a)	Company Responsibilities. Upon the transfer of ownership of the INDs, Regulatory Approval Applications and Regulatory Approvals in accordance with Section 5.1(a), Company will assume responsibility for the
monitoring of all clinical experiences, maintaining the global safety database, safety monitoring, pharmacovigilance surveillance, compliance and filing of all required safety reports to all Regulatory Authorities in the Territory with respect to
Compounds and Products, including annual safety reports, throughout the Development and Commercialization of each Compound and Product. 

  

	 	(b)	Safety Information Exchange; Pharmacovigilance Agreement. In the event MacroGenics exercises the Co-Promote Option, the Parties shall cooperate to develop methods and/or procedures for sharing Information
relating to the clinical experiences referred to in Section 5.3(a) with respect to the Initial Product in accordance with safety reporting requirements of the respective Governmental Authorities and as necessary to comply with Applicable Law.
Specific details regarding the management of safety Information, including adverse events reports, related to the Development and the Commercialization of the Initial Product in the Territory, will be delineated in a separate global
pharmacovigilance agreement (the “PVA”). The Parties shall meet to discuss the PVA within [***] after MacroGenics exercises the Co-Promote Option and shall agree upon the terms of the PVA as soon as practicable, but in any event no
later than the anticipated date of the First Commercial Sale of any Product in the U.S.; provided, however, that, in the event the Parties do not reach agreement on all terms of the PVA prior to the First Commercial Sale of any Product
in the U.S., then the Parties shall enter into an interim PVA prior to the First Commercial Sale of any Product in the U.S. and shall agree upon the terms of the final PVA as soon as practicable thereafter. In the event of any conflicts or
inconsistencies between the PVA and this Agreement, the terms of the PVA shall take precedence for matters relating to pharmacovigilance. 

5.4 Recalls and Voluntary Withdrawals. Company shall use reasonable efforts to notify MacroGenics promptly, but in no event later than
[***], following its determination that any event, incident, or circumstance related to safety issues or regulatory concerns has occurred that is reasonably likely to result in the need for a recall, market suspension or market withdrawal of a
Product in the Territory, and shall include in such notice the reasoning behind such determination 

  
 34 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
and any supporting facts. Company shall have the sole right to make the final determination of whether to voluntarily implement any such recall, market suspension or market withdrawal in the
Territory, provided that, prior to the implementation of such a recall, market suspension or market withdrawal, Company shall, to the extent practical, consult with MacroGenics and shall consider MacroGenics’ comments in good faith. For
all recalls, market suspensions or market withdrawals undertaken pursuant to this Section 5.4, Company shall be solely responsible for the execution thereof and MacroGenics shall reasonably cooperate in all such recall efforts. Subject to
ARTICLE 15, Company shall be responsible for all costs of conducting any such recall, market suspension, or market withdrawal. For the sake of clarity, during the Co-Funding Term certain [***] associated with recalls and market withdrawals [***] in
accordance with Section 9.9. 
 5.5 Subcontracting. Company may subcontract the performance of any activities conducted in accordance
with this ARTICLE 5 to any of its Affiliates or any Third Party, provided that Company shall oversee the performance of any subcontracted activities in a manner that would be reasonably expected to result in their successful and timely
completion and shall remain responsible for the performance of such subcontracted activities in accordance with this Agreement. 
 ARTICLE
6 
 COMMERCIALIZATION 
 6.1
Commercialization Activities. 
  

	 	(a)	Company Commercialization Activities. Subject to MacroGenics’ exercise of the Co-Promote Option, Company shall be solely responsible for and have sole authority with respect to, at its own expense
(subject to MacroGenics’ sharing of expenses upon its exercise of the Co-Funding Option), all aspects of the Commercialization of the Product in the Field in the Territory, including: (i) developing and executing a commercial launch and
pre-launch plan; (ii) marketing and promotion (including Detailing); (iii) booking sales and distribution and performance of related services; (iv) handling all aspects of order processing, invoicing and collection, inventory and
receivables; (v) publications; (vi) providing customer support, including handling medical queries, and performing other related functions; (vii) the review and approval of all Promotional Materials for compliance with Applicable Law,
including submission, where appropriate, to the applicable Regulatory Authority and (viii) conforming its practices and procedures in all material respects to Applicable Law relating to the marketing, detailing and promotion of the Products in
the Field in the Territory. Company shall use Commercially Reasonable Efforts to Commercialize Products for which Regulatory Approval is received in the Territory. 

 

	 	(b)	Ordering. MacroGenics shall not accept orders for the purchase of a Product from Third Parties, or make sales of Product to Third Parties in the Field in the Territory for its own account or for Company’s
account. If MacroGenics receives any order for a Product in the Field in the Territory, it shall refer such orders to Company for acceptance or rejection. 

  
 35 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(c)	U.S. Commercialization Plan. In the event MacroGenics exercises the Co-Promote Option in accordance with Section 8.3(a), Company shall submit the initial U.S. Commercialization Plan to the JSC, or such
subcommittee designated by the JSC, at [***] for review by the JSC or such subcommittee. Thereafter, Company shall submit an updated U.S. Commercialization Plan to the JSC, or such subcommittee designated by the JSC, at least once each Calendar Year
until the termination or expiration of the Co-Promotion Agreement for review by the JSC or such subcommittee. 

 6.2 Trademarks.
Company shall have sole responsibility, at its own expense, for all matters relating to the use of, and shall own, all trademarks used in the sale of Products in the Field in the Territory (but excluding the MacroGenics Trademarks and any trademark
that is confusingly similar to a MacroGenics Trademark), including the selection, filing, prosecution, maintenance, defense and enforcement thereof. Notwithstanding the foregoing, in the event MacroGenics exercises the Co-Funding Option, costs
related to Product trademarks in the Northern American Territory shall be treated as a Commercialization Expense. 
 6.3 Decision-Making.
Except with respect to a MacroGenics decision to exercise the Co-Promote Option as set forth in Section 8.3(a) and MacroGenics’ right to conduct [***] upon any such exercise, after the Effective Date, Company shall have sole authority with
respect to all aspects of Commercialization of Products in the Field in the Territory in accordance with this Agreement, including all decisions regarding pricing, discounts and the terms of sale. 

6.4 Transparency Reporting. Company and, in the event it exercises either or both the Co-Funding Option or Co-Promote Option, MacroGenics, shall
each be responsible for tracking and reporting transfers of value initiated and controlled by its and its Affiliates’ employees, contractors, and agents pursuant to the requirements of the marketing reporting laws or research expense reporting
laws of any Governmental Authority in the Territory, including Section 6002 of ACA, commonly referred to as the “Sunshine Act.” 
 6.5
Compliance with Law. Company and, if MacroGenics exercises the Co-Promote Option, MacroGenics, shall conduct all Commercialization activities related to Compound and Products in compliance in all material respects with all Applicable Law.

 6.6 Subcontracting. Company may subcontract the performance of any Commercialization activities conducted in accordance with this Agreement
to any of its Affiliates or any Third Party, provided that Company shall oversee the performance of any subcontracted activities in a manner that would be reasonably expected to result in their successful and timely completion and shall
remain responsible for the performance of such subcontracted activities in accordance with this Agreement. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 ARTICLE 7 

MANUFACTURING 
 7.1 General
Supply Terms. After the Effective Date, except as provided below, Company shall have sole responsibility for and sole authority with respect to, at its own expense (subject to MacroGenics’ exercise of the Co-Funding Option),
Manufacturing clinical and commercial supplies of the Compounds and the Products for use in the Field in the Territory. Upon Company’s request, (a) MacroGenics shall transfer to Company, at no cost, all nucleotide molecules, cell lines and
protein material of Compounds, and all Products in finished form or in process on the Effective Date, in MacroGenics’ inventory on the Effective Date, provided that MacroGenics may retain reasonable quantities of such materials for [***]
of such inventory; and (b) MacroGenics shall use Commercially Reasonable Efforts to Manufacture, at MacroGenics’ facility, and supply to Company (i) [***]; (ii) [***]; and (iii) based on a timeline reasonably acceptable to
MacroGenics, in its sole discretion, clinical supplies of Compound for use in other [***], in each case ((i), (ii) and (iii)), at a cost equal to [***] incurred by MacroGenics in connection with such Manufacture [***] with respect to new
clinical supplies Manufactured after the Execution Date for [***]). A non-binding estimate of such costs are set forth on Schedule 7.1. MacroGenics shall not be obligated to [***] in fulfilling any such Company request pursuant to clause
(b) of this Section 7.1, unless otherwise agreed by the Parties. MacroGenics shall continue to conduct and complete [***] that are being conducted as of the Execution Date with respect to [***] through the [***] of the Execution Date, and
Company shall reimburse MacroGenics for any reasonable Third Party Expenses and Development FTE Costs incurred by MacroGenics after the Execution Date in conducting such [***]. Promptly after the Effective Date, the Parties shall enter into good
faith negotiations to conclude a clinical supply agreement (the “Clinical Supply Agreement”) and a related quality agreement within [***] after the Execution Date, which Clinical Supply Agreement shall include specifications and
procedures for delivery and acceptance of Products. Such quality agreement will reflect the findings of any supply qualification audits conducted by Company of MacroGenics and any critical sub-suppliers. Company shall not have the right to [***] to
be negotiated under the Clinical Supply Agreement. 
 7.2 Transition of Manufacturing Responsibilities. 

 

	 	(a)	 Subject to the JSC’s approval of a Manufacturing transition plan (the “Manufacturing Transition Plan”), MacroGenics shall effect
a transfer to Company or its designee (which designee may be an Affiliate or a Third Party manufacturer, and which Third Party manufacturer may be a backup manufacturer or a second manufacturer of a Compound or a Product) of all MacroGenics Know-How
and rights under Third Party agreements relating to the then-current process for the Manufacture of Compound and Product (the “Manufacturing Process”) and to facilitate implementation of the Manufacturing Process at facilities
designated by Company (such transfer and implementation, as more fully described in this Section 7.1(a), the “Manufacturing Technology Transfer”). MacroGenics shall provide all reasonable assistance requested by Company to
enable Company (or its Affiliate or designated Third Party manufacturer, as applicable) to implement the Manufacturing Process at the facilities designated by 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
Company. Company shall reimburse MacroGenics’ personnel costs at the Development FTE Rate and reimburse Third Party Expenses incurred by MacroGenics in providing any such assistance.

  

	 	(b)	Without limitation to the foregoing, in connection with the Manufacturing Technology Transfer, MacroGenics shall cause all appropriate employees and representatives of MacroGenics and its Affiliates to meet with
employees or representatives of Company (or its Affiliate or designated Third Party manufacturer, as applicable) at the applicable manufacturing facility at mutually convenient times to assist with the working up and use of the Manufacturing Process
and with the training of the personnel of Company (or its Affiliate or designated Third Party manufacturer, as applicable) to the extent reasonably necessary or useful to enable Company (or its Affiliate or designated Third Party manufacturer, as
applicable) to use and practice the Manufacturing Process. 

 7.3 Decision Making. Company shall have sole authority with
respect to the all aspects of Manufacturing of Compound and Product in the Field in the Territory, including CMC development. 
 7.4 Compliance with
Law. Each Party shall conduct all Manufacturing activities related to Compound and Products in compliance in all material respects with all Applicable Law, including applicable national and international (e.g., ICH, GCP, GLP, and GMP)
guidelines. 
 7.5 Subcontracting. Company may subcontract the performance of any Manufacturing activities conducted in accordance with this
Agreement to any of its Affiliates or any Third Party, provided that Company shall oversee the performance of any subcontracted activities in a manner that would be reasonably expected to result in their successful and timely completion and
shall remain responsible for the performance of such subcontracted activities in accordance with this Agreement. 
 ARTICLE 8 

MACROGENICS OPTIONS 
 8.1
Generally. Subject to the terms of this Agreement, MacroGenics may, at its discretion, exercise the Co-Promote Option and the Co-Funding Option. MacroGenics’ exercise(s) of the Co-Promote Option and the Co-Funding Option are separate
and independent of each other, such that MacroGenics may exercise: only the Co-Promote Option; only the Co-Funding Option; both the Co-Promote Option and the Co-Funding Option; or neither. 

8.2 Co-Funding Option. 
  

	 	(a)	 Option Grant and Exercise. Company hereby grants MacroGenics an option to fund [***] of the Global Development Costs and share [***]of the N.A.
Profit/Loss (in lieu of royalties on Net Sales of the Initial Product in the Northern American 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
Territory), as further described in this Section 8.2 (the “Co-Funding Option”). MacroGenics may, at its discretion, exercise the Co-Funding Option by delivering written
notice thereof to Company (the “Co-Funding Option Exercise Notice”) at any time before the date that is [***] (the “Co-Funding Option Deadline”). Company shall promptly provide written notice to MacroGenics
of the occurrence of [***]. The Co-Funding Option shall be deemed to be exercised on the date that Company receives the Co-Funding Option Exercise Notice. If the Co-Funding Option Deadline passes without Company receiving a Co-Funding Option
Exercise Notice, the Co-Funding Option shall immediately and permanently expire on the day after the Co-Funding Option Deadline. 

  

	 	(b)	Co-Funding Materials. No later than [***], Company shall deliver to MacroGenics: (i) a projected timeline for the Global Development Activities; (ii) a summary of [***]; (iii) a then-current, [***]
that are included in the Global Development Plan, which [***] of the Global Development Activities and an annual basis thereafter; (iv) a then-current, non-binding [***], which shall be on an [***], and (v) a then-current, [***] (the
“Co-Funding Materials”). After delivery of the Co-Funding Materials, but prior to the Co-Funding Option Deadline, upon MacroGenics’ reasonable request and with reasonable notice, Company shall promptly make available to
MacroGenics (i) during normal business hours its employees and consultants who performed the activities on behalf of Company in preparation of the Co-Funding Materials to answer MacroGenics’ questions about the Co-Funding Materials; and
(ii) any additional Information in Company’s possession relating to the Initial Product that may be reasonably useful in evaluating the Co-Funding Materials. MacroGenics acknowledges and agrees that nothing in the Co-Funding Materials will
be deemed to be a representation or warranty, either express or implied, that Company will be able to successfully Develop or Commercialize the Initial Product in the Northern American Territory or, if Commercialized, that it will achieve any
particular sales level of the Initial Product in the Northern American Territory. 

  

	 	(c)	Terms of Co-Funding. During the Co-Funding Term: (1) MacroGenics shall be responsible for [***] of the Global Development Costs; (2) the N.A. Profit/Loss shall be allocated between the Parties as
provided in Section 9.9; (3) Section 9.3(c) shall apply in lieu of Section 9.3(b); (4) Section 9.3(e) shall apply in lieu of Section 9.3(d) and (3) royalties with respect to Net Sales of the Products shall be
payable only under Section 9.4(b) (i.e. no royalties shall be payable with respect to Net Sales of the Initial Product in the Northern American Territory). 

 

	 	(d)	Invoicing and Payment of Global Development Costs. 

 (i) Company
shall provide to MacroGenics, no later than [***] before the [***] during the Co-Funding Term, a rolling, non-binding annual forecast of Global Development Costs that Company expects to incur during the [***] (the “Final GDC
Forecast”), with the [***]. In addition, Company shall provide to 

  
 39 

 

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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
MacroGenics, no later than [***] before the [***] during the Co-Funding Term, a [***]. The first Calendar Year in each Final GDC Forecast shall be referred to as the “Current
Forecast.” The Final GDC Forecast shall be consistent with the Global Development Plan and with Company’s internal budget for the relevant periods. 

(ii) Except with respect to the Calendar Quarter in which the Co-Funding Option is exercised, within thirty
(30) days after the end of each Calendar Quarter during the Co-Funding Term (including the Calendar Quarter in which the Co-Funding Termination Date occurs, if any), (A) Company will provide a written report and invoice to MacroGenics
setting forth in reasonable detail the Global Development Costs incurred by Company during such Calendar Quarter and (B) MacroGenics will provide a written report and invoice to Company setting forth in reasonable detail the Global Development
Costs incurred by Company pursuant to Section 4.2(c) during such Calendar Quarter and Company’s share of such Global Development Costs (each, a “GDC Invoice”). The GDC Invoice for the first Calendar Quarter during the
Co-Funding Term shall also include all Global Development Costs incurred by Company prior to such Calendar Quarter (i.e. Global Development Costs relating to Global Development Activities incurred prior to the exercise of the Co-Funding Option).
Within sixty (60) days after the receipt of each GDC Invoice, MacroGenics, to the extent the amounts set forth in such GDC Invoice are not in reasonable dispute and after netting out Company’s share of any GDC Invoice provided by
MacroGenics for such Calendar Quarter, shall pay the GDC Invoice in full, subject to the Cost Cap provisions set forth in Section 8.2(d)(iii). If MacroGenics fails to pay to Company the total amount set forth in a GDC Invoice within [***] from
the date of such GDC Invoice , Company shall so notify MacroGenics in writing (a “GDC Late Payment Notice”). MacroGenics shall notify Company of any amount reasonably disputed in a GDC Invoice, including the basis for such dispute.
Company shall notify MacroGenics of any amount reasonably disputed in a GDC Invoice provided by MacroGenics, including the basis for such dispute. Disputes with respect to the amounts set forth in a GDC Invoice that are not resolved by the
Parties [***] after such dispute is first raised shall be referred to the JSC for attempted resolution; provided, however, that such dispute shall not be subject to Company’s final decision-making authority under
Section 2.1(c). If the JSC does not resolve such dispute within [***], the provisions of ARTICLE 14 shall apply. The audit rights set forth in Section 9.13 shall apply to any payment made pursuant to this Section 8.1(d)(ii). 

(iii) Notwithstanding Section 8.2(d)(ii), during any Calendar Year in which Global Development Costs to be paid by
MacroGenics [***], MacroGenics may elect to [***] by providing written notice of such election to Company within [***] after receipt of the first GDC Invoice for such Calendar Year that [***]. Following Company’s receipt of a [***] during any
Calendar Year, MacroGenics shall not be obligated to [***] Any [***] that have not been paid or 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
deducted from payments due hereunder at the end of any Calendar Quarter shall be carried forward to the next Calendar Quarter; provided, however, that all [***] shall be paid by
MacroGenics or deducted within [***] during which such Excess Costs were incurred. [***] that are carried forward from one Calendar Year to a subsequent Calendar Year [***] for purposes of determining whether the [***]. As used above, [***] means
(a) with respect to [***] during the period beginning [***] and ending on [***] for the period beginning [***] and ending [***] during such Calendar Year, and (b) for each [***] thereafter [***] during such Calendar Year. For example, if
the [***] that became due and payable pursuant [***] during the applicable [***]) 
 (iv) Notwithstanding subsection
(ii), during any [***] in which Global Development Costs are greater than [***] of the [***] for such Calendar Year [***], Company shall [***]. 

(v) Upon the request of either Party, the finance teams of the Parties will meet and attempt to agree in good faith on
changes to the processes for reporting, calculating and invoicing Global Development Costs (including [***] and [***]) pursuant to this Section 8.2(d) to reflect any process improvements identified with respect thereto. 

 

	 	(e)	Co-Funding Opt-Out. Notwithstanding the foregoing, at any time during the Co-Funding Term after MacroGenics has paid at least a cumulative total of [***] in Global Development Costs pursuant to
Section 8.2(d), MacroGenics may, in its discretion, elect to cease funding [***] of the Global Development Costs and sharing [***] of the N.A. Profit/Loss (the “Co-Funding Opt-Out”) by providing written notice of
such election to Company (the “Co-Funding Opt-Out Notice”) on or before [***] of the applicable Calendar Year. If MacroGenics delivers a Co-Funding Opt-Out Notice in accordance with this Section 8.2(e), then the
following provisions shall apply beginning on the Co-Funding Termination Date and for the remainder of the Term: 

(i) MacroGenics’ obligation to fund [***] of Global Development Costs shall terminate on the Co-Funding Termination Date and MacroGenics shall have no obligation to fund any Global Development Costs (including Global Development Costs incurred by MacroGenics in performing Clinical Trials in accordance with
Section 4.2(c)) incurred after the Co-Funding Termination Date (but, for clarity, MacroGenics shall be responsible for paying any and all invoiced Global Development Costs incurred on or prior to the Co-Funding Termination Date); 

(ii) the sharing of N.A. Profit/Loss pursuant to Section 9.9 shall terminate on the Co-Funding Termination Date;

 (iii) if MacroGenics exercises the Co-Funding Opt-Out [***], then MacroGenics may elect (in the Co-Funding Opt-Out Notice) to be reimbursed for the 

  
 41 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
Global Development Costs paid by MacroGenics prior to the Co-Funding Termination Date (the “GDC Repayment Option”), in which case (A) Company shall pay to MacroGenics, in
[***], the Global Development Costs previously funded by MacroGenics, with the [***] to be made within [***] after the Co-Funding Termination Date and the [***] to be made on or before the last day of the next [***] immediately following the payment
of the [***], provided that Company’s obligation to make any such payments shall terminate as of the effective date of the termination of this Agreement by Company pursuant to Section 13.3, and (B) beginning with the first
Calendar Quarter after the Co-Funding Termination Date, royalties with respect to Net Sales of the Products shall be payable under Section 9.4(c)(ii); and 

(iv) if (x) MacroGenics exercises the Co-Funding Opt-Out [***]or (y) MacroGenics exercises the Co-Funding Opt-Out prior to the [***] but does not elect the GDC Repayment Option in the Co-Funding Opt-Out Notice, then, in each case ((x) and (y)), beginning with the first Calendar Quarter after the Co-Funding Termination Date, royalties with respect to Net Sales of the Products shall be payable under Section 9.4(c)(i). 
  

	 	(f)	Termination of Co-Funding Term due to Failure to Pay Global Development Costs. If MacroGenics fails to pay the entire non-disputed, outstanding invoiced amount set forth in a GDC Invoice within [***] after
receiving a GDC Late Payment Notice (and MacroGenics has not delivered [***] in accordance with Section 8.2(d)(iii)), then the following provisions shall apply beginning on the Co-Funding Termination Date and for the remainder of the Term:

 (i) MacroGenics’ obligation to fund [***] of Global Development Costs shall terminate on the Co-Funding Termination Date (except with respect to Global Development Costs incurred on or prior to the Co-Funding Termination Date), and MacroGenics shall have no obligation
to fund any Global Development Costs incurred after the Co-Funding Termination Date (but, for clarity, MacroGenics shall be responsible for paying any and all invoiced Global Development Costs incurred on or
prior to the Co-Funding Termination Date); 
 (ii) the sharing of N.A. Profit/Loss pursuant to Section 9.9 shall
terminate on the Co-Funding Termination Date; 
 (iii) beginning with the first Calendar Quarter after the Co-Funding Termination Date, royalties with respect to Net Sales of the Products shall be payable under Section 9.4(c)(ii); and 

(iv) Company may setoff against any amounts that are then owed to MacroGenics or that subsequently become due to
MacroGenics pursuant to this Agreement the amount of any such non-disputed, outstanding invoiced Global Development Costs and any other Global Development Costs MacroGenics subsequently becomes obligated to pay pursuant to Section 8.2(d). 

  
 42 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(g)	Expiration of Co-Funding Term. If the Co-Funding Termination Event is the result of the application of subsection (c) or (d) of Section 1.17, then the following provisions shall apply
beginning on the Co-Funding Termination Date and for the remainder of the Term: 

 (i) MacroGenics’
obligation to fund [***] of Global Development Costs shall terminate on the Co-Funding Termination Date (except with respect to Global Development Costs incurred on or prior to the Co-Funding Termination Date), and MacroGenics shall have no
obligation to fund any Global Development Costs incurred after the Co-Funding Termination Date (but, for clarity, MacroGenics shall be responsible for paying any and all invoiced Global Development Costs incurred on or prior to the Co-Funding
Termination Date); 
 (ii) the sharing of N.A. Profit/Loss pursuant to Section 9.9 shall terminate on the
Co-Funding Termination Date; and 
 (iii) Company shall have no obligation to make any payments to MacroGenics’
hereunder with respect to Net Sales of the Initial Product in the Northern American Territory beginning with the first Calendar Quarter after the Co-Funding Termination Date. 

 

	 	(h)	Change of Control. In the event of the occurrence of a Change of Control of MacroGenics before or during the Co-Funding Term, the following provisions shall apply
until the end of the Co-Funding Term. 

 (i) Upon the consummation of a Change of Control of
MacroGenics, MacroGenics shall have no further right to [***] pursuant to Section 8.2(d)(iii). Commencing within [***] after such Change of Control, MacroGenics shall reimburse Company for all outstanding [***] under Section 8.2(d)(iii)
that have not previously been recouped by Company as set forth therein[***]. 
 (ii) Upon the consummation of a Change
of Control of MacroGenics, (A) the JSC shall be dissolved (except to the extent necessary to perform the activities described in clause (B) of this sentence), and (B) prior to dissolution, the JSC shall establish reasonable procedures
to protect the secrecy of Company’s and MacroGenics’ competitively sensitive Confidential Information with respect to such other products, including, for example, limiting access to such information and requiring each Party’s
representatives on the JSC and any employees performing activities in connection with this Agreement to sign individual confidentiality agreements agreeing to comply with the confidentiality provisions of this Agreement. It is understood that such
procedures shall not be established or required in any way that would diminish any of MacroGenics’ rights 

  
 43 

 

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
under this Agreement to information regarding Products, diminish MacroGenics’ operational responsibilities under this Agreement in any meaningful way, or otherwise impair MacroGenics’
rights with respect to Compounds or Products. 
  

	 	(i)	Decision-Making. For clarity, MacroGenics’ exercise of the Co-Funding Option shall not alter either Party’s respective rights with respect to the Development of Compounds or Products, including
Company’s decision making rights as set forth in Section 4.3. 

 8.3 Co-Promote Option. 

 

	 	(a)	Option Grant and Exercise. Company hereby grants MacroGenics an option to co-promote the Initial Product in the U.S. for all approved Indications, as further described in this Section 8.3 (the
“Co-Promote Option”). MacroGenics may, at its discretion, exercise the Co-Promote Option by delivering written notice thereof to Company (the “Co-Promote Option
Exercise Notice”) at any time before the [***] (in the case of the [***]) or the [***] (in the case of the Indication planned for [***]); provided, however, that MacroGenics shall only have the right to exercise the
Co-Promote Option with respect to the [***] if Company obtains, or seeks to obtain, an [***]. For purposes of clarity: (a) if MacroGenics does not exercise the Co-Promote Option [***]and Company has not obtained, or is not seeking to obtain, an
[***], then the Co-Promote Option shall expire upon the [***], and (b) if MacroGenics does not exercise the Co-Promote Option prior to the [***] and Company has obtained, or is seeking to obtain, an [***] for the [***], then the Co-Promote
Option shall remain exercisable until the expiration of the [***]. Furthermore, once MacroGenics exercises the Co-Promote Option, such exercise shall [***]. Notwithstanding the foregoing, in the event of the occurrence of a Change of Control of
MacroGenics prior to MacroGenics’ exercise of the Co-Promote Option, Company may terminate the Co-Promote Option upon immediate written notice to MacroGenics within [***] of the consummation of such Change of Control, if, after such Change of
Control, MacroGenics or the Acquirer or its Affiliates would be conducting Clinical Trials or Commercializing any product that would directly compete in the Field with the Initial Product, whether through the same mechanism of action (e.g., [***])
or for treatment of the same Indication as the Initial Product with such competitive product in the U.S. and, upon receipt of such notice by MacroGenics, this Section 8.3 shall be of no further force or effect. 

 

	 	(b)	 Co-Promote Materials. With respect to [***], Company shall deliver to MacroGenics (i) a non-binding [***] and (ii) a summary
of the key terms of the Co-Promotion Agreement (the “Co-Promote Materials”); provided, however, that Company shall not be obligated to deliver the Co-Promote Materials for the [***] for which the [***]
unless Company obtains, or seeks to obtain, an [***]. After 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
delivery of the Co-Promote Materials, but prior to the applicable Co-Promote Option Deadline, upon MacroGenics’ reasonable request and with reasonable notice, Company shall promptly make
available to MacroGenics (x) during normal business hours its employees and consultants who performed the activities on behalf of Company in preparation of the Co-Promote Materials to answer
MacroGenics’ questions about the Co-Promote Materials, and (y) any additional Information in Company’s possession relating to the Initial Product that may be reasonably useful in evaluating the
Co-Promote Materials. 

  

	 	(c)	Terms of Co-Promote. Promptly following Company’s receipt of the Co-Promote Option Exercise Notice in accordance with Section 8.3(a), the Parties shall enter into good faith negotiations for a separate
co-promotion agreement with respect to the co-promotion of the Initial Product in the U.S. (the “Co-Promotion Agreement”). In addition to such usual and customary terms that are typically found within contract sales force
agreements, including with respect to the diligence obligations of MacroGenics, the Co-Promotion Agreement shall include the terms set forth below in this Section 8.3(c). MacroGenics shall commit in the Co-Promotion Agreement to employ a number
of sales representatives sufficient to provide [***]of the Details for the Initial Product in the U.S. For the sake of clarity, MacroGenics’ exercise of the Co-Promote Option shall have no affect on
Company’s authority with respect to Commercialization of the Products under Section 6.3 and MacroGenics shall have no right to Detail the Initial Product in the U.S. unless and until the Parties execute the Co-Promotion Agreement.

 (i) MacroGenics’ Detailing Percentage.
Unless otherwise agreed by the Parties, MacroGenics shall contribute [***] of the total Details for the Initial Product in the U.S. for each Calendar Year, as set forth in the U.S. Commercialization Plan; provided, however, that, if
Company increases the total number of Details in a given Calendar Year, MacroGenics shall have the right, but not the obligation, to increase its total sales force efforts within [***] of receipt of notice from Company in order to maintain the
agreed-upon percentage of Details assigned to MacroGenics. Company will have the right to allocate the planned Details for the Initial Product in the U.S. for each Calendar Year between the Parties, which allocation shall be set forth in
Company’s call plan for such Calendar Year. The Parties may agree to treat electronic detailing, such as live video conferencing, as a form of Detail, in which event the Parties shall mutually agree upon the costs of such electronic details and
such costs shall be deemed to be Commercialization Expenses during the Co-Funding Term. 
 (ii)
Fee for Detail. Company shall reimburse MacroGenics for the Details of the Initial Product in the U.S. performed by MacroGenics at a Cost Per PDE as measured and approved by the JSC prior to the First Commercial Sale of the Initial
Product in the Northern American Territory. For clarity, Company shall not pay or be responsible for any costs associated with MacroGenics’ Detailing of the Initial Product other than the Cost Per

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
PDE agreed upon by the Parties and, in the event the Parties agree to treat electronic details as a form of Detail, such electronic details shall not be reimbursed at the Cost Per PDE, but
instead shall be reimbursed at the cost mutually agreed upon by the Parties as described in Section 8.30(i). 

(iii) Audit Right. Each Party shall have the right to audit the other Party’s records regarding
performance under the Co-Promotion Agreement, solely for the purpose of determining the other Party’s compliance with the Co-Promotion Agreement. 

(iv) Termination of Co-Promotion Agreement. MacroGenics may terminate the Co-Promotion Agreement by [***]
prior written notice to Company. Company may terminate the Co-Promotion Agreement immediately if (1) MacroGenics fails to contribute at least [***] of the Details for the Initial Product in the Northern American Territory that MacroGenics is
obligated to provide under the U.S. Commercialization Plan and fails to remedy such shortfall within [***] after receiving written notice of such shortfall from Company or (2) MacroGenics materially breaches the Co-Promotion Agreement and fails
to cure such breach within [***] after receiving written notice of such breach from Company. The Co-Promotion Agreement shall be subordinate to and coterminous with this Agreement. 

(v) Promotional Materials and Samples. Except for MacroGenics Trademarks, Company shall remain solely
responsible for the production of product labeling and Promotional Materials for the Initial Product, the training and testing materials for all sales representatives (including those acting on behalf of MacroGenics) who Detail the Initial Product,
and restrictions with respect to the ability of such sales representatives to Detail other products. MacroGenics’ sales representatives for the Initial Product shall only use Promotional Materials provided by Company, without alteration, and
shall use all such Promotional Materials. Company will provide to MacroGenics, at Company’s expense, reasonable quantities of Promotional Materials and product samples and/or sample vouchers for the Initial Product to support MacroGenics’
Detailing of the Initial Product in the U.S.. Company shall not use the MacroGenics Trademarks in any of the Promotional Materials without MacroGenics’ written consent (such consent not to be unreasonably withheld, delayed or conditioned). 

(vi) Training and Related MacroGenics Sales Force Issues. Company will be responsible for designing and
providing training materials for the representatives (including those acting on behalf of MacroGenics) who Detail the Initial Product. Company shall provide training to MacroGenics’ sales representatives who Detail the Initial Product, at
MacroGenics’ expense. Company will ship training materials to MacroGenics as reasonably required for MacroGenics’ ongoing training needs at MacroGenics’ expense. MacroGenics shall compensate its sales representatives who Detail the
Initial Product in the U.S. using a sales compensation structure similar to that used by Company with respect to its sales representatives who Detail the Initial Product in the U.S. Each sales representative who Details in the Initial Product in the
U.S. on behalf of MacroGenics shall be an employee of MacroGenics or its Affiliate. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 (vii) Compliance. MacroGenics’ sales representatives
performing Details of the Initial Product in the U.S. shall comply with Applicable Law and all of Company’s reasonable instructions, quality standards, policies and guidelines which relate to the Commercialization of the Initial Product and of
which MacroGenics has been given sufficient written notice by Company to appropriately train such sales representatives. MacroGenics shall establish a compliance program and appoint a compliance officer to ensure that MacroGenics’ Detailing of
the Initial Product is in compliance with Applicable Law and such Company instructions, quality standards, policies and guidelines. 

(viii) Governance. The Parties shall establish a committee to oversee and facilitate communication between
the Parties with respect to the Detailing of the Initial Product in the U.S. 
 (ix) Change of Control.
In the event of the occurrence of a Change of Control of MacroGenics during the Term, Company may terminate the Co-Promotion Agreement upon immediate written notice to MacroGenics within [***] of the consummation of such Change of Control if, after
such Change of Control, MacroGenics or the Acquirer would be Developing or Commercializing, or assisting a Third Party or its Affiliates to conduct any Pivotal Trial or Commercialize, any product that would directly compete in the Field with the
Initial Product, whether through the same mechanism of action (e.g., binds to the Product Target) or for treatment of the same Indication as the Initial Product with such competitive product in the U.S. 

ARTICLE 9 
 CONSIDERATION

 9.1 Upfront Payment. Within [***] after the Effective Date, Company shall pay to MacroGenics Fifty Million Dollars ($50,000,000) as a
one-time, non-refundable, non-creditable upfront payment. 
 9.2 Reimbursement of Expenses. Company shall reimburse MacroGenics for FTE Costs
and Third Party Expenses incurred by MacroGenics in providing assistance pursuant to Section 5.2(c) and 7.1(a) of this Agreement as contemplated thereby. Company shall also reimburse MacroGenics Out-of-Pocket Patent Costs incurred pursuant to
Section 10.3(b). Company shall reimburse such FTE Costs, Third Party Expenses and MacroGenics Out-of-Pocket Patent Costs within sixty (60) days after receipt of an invoice issued by MacroGenics describing such costs in reasonable detail
and providing appropriate supporting documentation. 
 9.3 Milestone Payments. Company will notify MacroGenics within [***] following the
achievement by Company, its Affiliate or sublicensee of each Development Milestone, each Approval Milestone or Co-Funding Approval Milestone, as applicable, and each Sales Milestone or Co-Funding Sales Milestone, as applicable (collectively, the
“Milestone Events”). Within [***] after achievement of each Milestone Event, Company shall remit the applicable Development Milestone Payment, Approval Milestone Payment or Co-Funding Approval

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
Milestone Payment, as applicable, or Sales Milestone Payment or Co-Funding Sales Milestone Payment, as applicable (collectively, the “Milestone Payments”) to MacroGenics. Each
Milestone Payment by Company pursuant to this Section 9.3 shall be payable only once. For the sake of clarity, if Development of a first Product is discontinued prior to the time at which a Milestone Payment pursuant to this Section 9.3 is
made with respect to such Product, then the achievement by a subsequent Product of any Milestone Event for which the Development of such first Product did not result in the achievement of a Milestone Payment under this Section 9.3 shall be
deemed to be the first achievement of such milestone event under this Section 9.3. In addition, if for any reason the [***] Development Milestone does not occur prior to the occurrence of the [***] Development Milestone, then the [***]
Development Milestone shall be deemed to occur concurrently with the occurrence of the [***] Development Milestone (e.g., if Development Milestone [***] occurs with respect to [***] Milestone [***] has not previously occurred with respect to such
Indication or any other Indication, then Development Milestone [***] will be deemed to occur concurrently with Development Milestone [***] and Development Milestone Payments [***] and [***] shall become due and payable in accordance with this
Section 9.3). Similarly, if for any reason a [***] Development Milestone does not occur with respect to an Indication prior to the occurrence of a [***] Development Milestone with respect to such Indication, then a [***] Development Milestone
shall be deemed to occur concurrently with the occurrence of such [***] Development Milestone, but only if at least one of the [***] Development Milestones has not yet occurred with respect to another Indication (e.g. if (a) Development
Milestone [***] occurs with respect to an Indication (other than [***]) and none of Development Milestone [***],[***] or [***] have occurred with respect to such Indication or any other Indication, then Development Milestone [***] will be deemed to
occur concurrently with Development Milestone [***] and Development Milestone Payments [***] and [***] shall become due and payable in accordance with this Section 9.3 or (b) if Development Milestone [***] occurs with respect to [***] and
Development Milestone [***] has not yet occurred with respect to [***], then Development Milestone [***] will be deemed to occur concurrently with Development Milestone [***] and Development Milestone Payments [***] and [***] shall become due and
payable in accordance with this Section 9.3). 
  

	 	(a)	Development Milestones. The following payments (each, a “Development Milestone Payment”) shall be made on a one-time basis with respect to the first Product to achieve the corresponding
milestone event (each, a “Development Milestone”): 

  

			
	 Development Milestone
	  	Development
Milestone
Payment (USD)
	 [***] Trial Development Milestone
	  	
		
	 1. [***]
	  	[***]
		
	 [***] Trial Development Milestones
	  	

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

					
	 Development Milestone
	  	Development
Milestone
Payment (USD)
	2.	 	[***]	  	[***]
			
	3.	 	[***]1	  	[***]
			
	4.	 	[***] with respect to which Development Milestone [***] was achieved 1	  	[***]
			
	5.	 	[***] with respect to which Development Milestone [***] was achieved or the [***] with respect to which Development Milestone [***] was achieved 1	  	[***]
			
	6.	 	[***]	  	[***]
			
	7.	 	[***]2	  	[***]
			
	8.	 	[***] respect to which Development Milestone [***] was achieved 2	  	[***]
			
	9.	 	[***] with respect to which Development Milestone [***] was achieved or the [***] with respect to which Development Milestone [***] was achieved 2	  	[***]

  

	1 	The Development Milestone Payment for this Development Milestone, when achieved, will be due regardless of whether [***]. 

	2 	The Development Milestone Payment for this [***] Milestone, when achieved, will be due regardless of whether [***]. 

 

	 	(b)	Regulatory Approval Milestones. The following payments (each, an “Approval Milestone Payment”) shall be made on a one-time basis with respect to the first Product to achieve corresponding
milestone event (each, an “Approval Milestone”), if and only if the Co-Funding Term is not in effect when such Approval Milestone is achieved. 

  

					
	 Approval Milestone
	  	Approval Milestone
Payment (USD)
	1.	 	[***]	  	[***]
			
	2.	 	[***]1	  	[***]
			
	3.	 	[***] with respect to which Approval	  	[***]

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

					
	 Approval Milestone
	  	Approval Milestone
Payment (USD)
		 	Milestone [***] was achieved 1	  	
	4.	 	[***]	  	[***]
			
	5.	 	[***]2	  	[***]
			
	6.	 	[***] with respect to which Approval Milestone [***] was achieved 2	  	[***]

  

	1 	The Approval Milestone Payment for this Approval Milestone, when achieved, will be due regardless of whether [***]. 

  

	2 	The Approval Milestone Payment for this Approval Milestone, when achieved, will be due regardless of whether [***]. 

  

	 	(c)	Regulatory Approval Milestones during Co-Funding Term. The following payments (each, a “Co-Funding Approval Milestone Payment”) shall be made on a one-time basis with respect to the first Product
to achieve corresponding milestone event (each, a “Co-Funding Approval Milestone”), if and only if such Co-Funding Approval Milestone is achieved during the Co-Funding Term. For the sake of clarity, this Section 9.3(c) shall
only apply during the Co-Funding Term. 

  

					
	 Co-Funding Approval Milestone
	  	Co-Funding
Approval Milestone
Payment (USD)
	1.	 	[***]	  	[***]
			
	2.	 	[***] 1	  	[***]
			
	3.	 	[***] with respect to which Approval Milestone [***] was achieved 1	  	[***]

  

	1 	The Co-Funding Approval Milestone Payment for this Co-Funding Approval Milestone, when achieved, will be due regardless of whether [***]. 

 

	 	(d)	Annual Net Sales Milestones. The milestone payments set forth in this Section 9.30 (each, a “Sales Milestone Payment”) shall each be payable to MacroGenics one-time only, upon the first time
during the Term that the total aggregate Net Sales of Products in any Calendar Year by Company, its Affiliates and its sublicensees in the Territory during the applicable Royalty Term for the Products in the applicable country exceed the amounts set
forth in the following table (each, a “Sales Milestone”), if and only if the Co-Funding Term is not in effect when such Sales Milestone is achieved. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Annual Aggregate Worldwide Net Sales Milestones 

 

			
	 Sales Milestone
	  	Sales Milestone
Payment (USD)
	 Upon the first occasion that aggregate annual Net Sales of the Products exceeds [***]
	  	[***]
		
	 Upon the first occasion that aggregate annual Net Sales of the Products exceeds [***]
	  	[***]
		
	 Upon the first occasion that aggregate annual Net Sales of the Products exceeds [***]
	  	[***]

 If more than one Sales Milestone described in this Section 9.30 is achieved during the same Calendar
Year, Company shall pay MacroGenics each Sales Milestone Payment that corresponds to such Sales Milestones. For purposes of clarity, only one Milestone Payment shall be owed on the first occasion that aggregate annual Net Sales of the Products
exceeds [***] or [***] under Section 9.30 and Section 9.3(e). 
  

	 	(e)	Annual Net Sales Milestones during the Co-Funding Term. The milestone payments set forth in this Section 9.3(e) (each, a “Co-Funding Sales Milestone Payment”) shall each be payable to
MacroGenics one-time only, upon the first time during the Co-Funding Term that the total aggregate Net Sales of the Products by Company, its Affiliates and its sublicensees in the Territory during the applicable Royalty Term for the Products in the
applicable country, excluding Net Sales of the Initial Product in the Northern American Territory during the Co-Funding Term, exceed the amounts set forth in the following table (each, a “Co-Funding Sales Milestone”), if and only if
such Co-Funding Sales Milestone is achieved during the Co-Funding Term. 

 Annual Aggregate Net Sales Milestones in the
Territory 
 (excluding only Net Sales in Northern American Territory with 

respect to the Initial Product) 
  

			
	 Co-Funding Sales Milestone
	  	Co-Funding Sales
Milestone
Payment (USD)
	 Upon the first occasion that aggregate annual Net Sales of the Products exceeds [***]
	  	[***]
		
	 Upon the first occasion that aggregate annual Net Sales of the Products exceeds [***]
	  	[***]
		
	 Upon the first occasion that aggregate annual Net Sales of the Products exceeds [***]
	  	[***]

 If more than one Co-Funding Sales Milestone described in this Section 9.3(e) is achieved during the same
Calendar Year, Company shall pay MacroGenics each Co-Funding Sales Milestone Payment that corresponds to such Co-Funding Sales 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 
Milestones. For purposes of clarity, only one Milestone Payment shall be owed on the first occasion that aggregate annual Net Sales of the Products exceeds [***] or [***] under
Section 9.3(d) and Section 9.3(e). 
 9.4 Company Royalty Obligations. As further consideration for the rights granted hereunder,
Company shall pay to MacroGenics royalties on the aggregate annual Net Sales of each Product at the rates set forth in this Section 9.4, in each case, subject to Section 9.5, Section 9.6 and Section 9.10 below. 

 

	 	(a)	Royalties if no Co-Funding. In the event that MacroGenics does not exercise the Co-Funding Option prior to the Co-Funding Option Deadline in accordance with Section 8.2(a), then Company shall pay to
MacroGenics, with respect to Net Sales of each Product in each country in the Territory during the applicable Royalty Term for such Product in such country, royalties at the following rates: 

 

			
	 Annual Net Sales
	  	Royalty Rate
	 On the portion of worldwide annual Net Sales of such Product less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of such Product greater than [***] and less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of such Product greater than [***]
	  	[***]

  

	 	(b)	Royalties during Co-Funding Term. In the event that MacroGenics exercises the Co-Funding Option prior to the Co-Funding Option Deadline in accordance with Section 8.2(a), then Company shall pay to
MacroGenics during the Co-Funding Term royalties at the rates set forth below in this Section 9.4(b). 

(i) Initial Product. With respect to Net Sales of the Initial Product in each country in the Territory
during the applicable Royalty Term for the Initial Product in such country, excluding Net Sales of the Initial Product in the Northern American Territory, royalties at the following royalty rates: 

 

			
	 Annual Net Sales of the Initial Product
	  	Royalty Rate
	 On the portion of worldwide annual Net Sales of the Initial Product (excluding Net Sales of the Initial Product in the Northern
American Territory) less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of the Initial Product (excluding Net Sales of the Initial Product in the Northern
American Territory) greater than [***] and less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of the Initial Product (excluding Net Sales of the Initial Product in the Northern
American Territory) greater than [***]
	  	[***]

  
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 For the avoidance of doubt, the aggregate annual Net Sales of the Initial Product in the
Northern American Territory during the Co-Funding Term shall be excluded from the calculation of the royalty thresholds set forth above and on royalties payable to MacroGenics pursuant to this Section 9.4(b)(i). 

(ii) Products other than Initial Product. With respect to Net Sales of any Product other than the Initial
Product in each country in the Territory during the applicable Royalty Term for such Product in such country, royalties at the following royalty rates: 
  

			
	 Annual Net Sales of any Product other than Initial Product
	  	Royalty Rate
	 On the portion of worldwide annual Net Sales of such Product less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of such Initial Product greater than [***] and less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of such Product greater than [***]
	  	[***]

  

	 	(c)	Royalties after Co-Funding Term. 

 MacroGenics exercises Co-Funding Opt-Out
and does not elect GDC Repayment Option. In the event that MacroGenics exercises the Co-Funding Option in accordance with Section 8.2(a), but MacroGenics thereafter exercises the Co-Funding Opt-Out in accordance with Section 8.2(e)
and does not elect the GDC Repayment Option, then Company shall pay MacroGenics during any part of the Term after the Co-Funding Term (x) with respect to Net Sales of the Initial Product in the Northern American Territory, royalties at the
rates set forth in the second column of the following table and (y) with respect to (1) Net Sales of the Initial Product in any country outside the Northern American Territory and (2) Net Sales of any Product other than the Initial
Product in any country in the Territory, 

  
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royalties at the rates set forth in the third column of the following table, in each case ((x) and (y)) during the applicable Royalty Term for such Product in such country: 

 

					
	 Annual Net Sales
	  	(a) Royalty Rate for
Northern American
Territory Net Sales of the
Initial Product	 	(b) Royalty Rate for
(i) outside Northern
American Territory
Net Sales of the
Initial Product and
(b) Territory
Net
Sales of each Product
other than the Initial
Product
	 On the portion of worldwide annual Net Sales of such Product less than or equal to [***]
	  	[***]	 	[***]
			
	 On the portion of worldwide annual Net Sales of such Product greater than [***] and less than or equal to [***]
	  	[***]	 	[***]
			
	 On the portion of worldwide annual Net Sales of such Product greater than [***]
	  	[***]	 	[***]

 (i) MacroGenics exercises Co-Funding Opt-Out and elects GDC Repayment Option;
Termination of Co-Funding for Cause. In the event that MacroGenics exercises the Co-Funding Option in accordance with Section 8.2(a) and (x) MacroGenics thereafter exercises the Co-Funding Opt-Out in accordance with
Section 8.2(e) and elects the GDC Repayment Option or (y) the Co-Funding Term is thereafter terminated pursuant to Section 8.2(f), then, in each case ((x) and (y)), during any part of the Term after the Co-Funding Term, Company shall
pay to MacroGenics, with respect to Net Sales of each Product in each country in the Territory during the applicable Royalty Term for such Product in such country, royalties at the following rates: 

 

			
	 Annual Net Sales
	  	Royalty Rate
	 On the portion of worldwide annual Net Sales of such Product less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of such Product greater than [***] and less than or equal to [***]
	  	[***]
		
	 On the portion of worldwide annual Net Sales of such Product greater than [***]
	  	[***]

  

	 	(d)	 Examples of Royalty Calculation for Initial Product. By way of example, if global aggregate annual Net Sales of the Initial Product is [***],
MacroGenics did not exercise the Co-Funding Option and no royalty rate reduction under Section 9.6 or 9.10 applies, then the royalty payable by Company to MacroGenics for the Initial

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
Product for such Calendar Year, subject to other applicable reductions, would be as follows: 

  

					
	Global Net Sales	  	Royalty Tier	 	Royalty Due
	 [***]
	  	[***]	 	[***]
	 [***]
	  	[***]	 	[***]
	 [***]
	  	[***]	 	[***]
	 [***]
	  	[***]	 	[***]

  

	 	(e)	No Multiple Royalties. For each Net Sale of a Product, only one royalty under Section 9.4(a), 9.4(b)(i), 9.4(b)(ii), 9.4(c)(i) or 9.4(c)(ii) shall be payable. 

9.5 Royalty Term. Royalties under Section 9.4 shall be payable on Net Sales on a Product-by-Product and country-by-country basis beginning
upon the First Commercial Sale of the relevant Product in the relevant country in the Territory until the expiration of the Royalty Term for such Product in such country. Following the expiration of the Royalty Term with respect to a Product in a
country of the Territory, subject to the terms and conditions of this Agreement, Company shall have a perpetual, irrevocable, non-exclusive, fully-paid and royalty-free right and license, with the right to grant sublicenses, under the MacroGenics
Technology to Exploit such Product in the Field in such country of the Territory. 
 9.6 Royalty Rate Reductions. The royalty rates set forth
in Section 9.4 shall be subject to reduction as follows: 
  

	 	(a)	the royalty rates shall be reduced by [***], on a country-by-country basis and Product-by-Product basis, in each country in which, at any given time, both (i) no Valid Claim of MacroGenics Patents [***] of the
applicable Product in such country, and (ii) either (x) [***] Product in such country [***] or (y) [***] Product in such country; 

  

	 	(b)	the royalty rates shall be reduced by [***], on a country-by-country and Product-by-Product basis, in each country in which, at any given time, (i) no [***] of the applicable Product in such country, and
(ii) there is [***] Product in such country and [***]; 

  

	 	(c)	in the event that the royalty rate reduction in Section 9.6(b) applies to a Product in a country and [***] Product in such country [***] [***], the reductions set forth in Section 9.6(a) shall
thereafter apply to such Product in such country; 

  

	 	(d)	in the event that Company does not [***] in a country in which [***] and MacroGenics does not elect to [***] in accordance with Section 10.3(b) which would have been at its sole expense, the requirements set forth
in clause (i) of 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	  	Sections 9.6(a) and 9.6(b) shall not be deemed to have been satisfied, and there shall be no reduction in the applicable royalty rates until the global expiration date of the family of such [***]; and

  

	 	(e)	in no event shall the cumulative effect of all reductions available to Company under this Agreement decrease the royalty rate to [***] of the otherwise applicable rates. 

9.7 Manner of Royalty Payment. Within [***]following the end of each Calendar Quarter after the First Commercial Sale of a Product in the
Territory (but excluding a First Commercial Sale in the Northern American Territory that occurs during the Co-Funding Term), Company shall provide MacroGenics with a report setting forth, on a Product-by-Product and country-by-country basis
(excluding any country in the Northern American Territory during the Co-Funding Term), the Net Sales of such Product in such country, a reasonably detailed statement of the [***] and a calculation of the royalty payment due with respect to such Net
Sales. Such report shall also include the exchange rates and other methodology used in converting Net Sales into U.S. Dollars from the currencies in which such sales were made for purposes of calculating the appropriate royalty rate and the royalty
payment due, and the application of the reductions, if any, made in accordance with the terms of Section 9.6 or Section 9.10. Company shall pay all amounts due to MacroGenics pursuant to Section 9.4 with respect to Net Sales by
Company, its Affiliates and their respective sublicensees for such Calendar Quarter in U.S. Dollars at the time the submission of such quarterly report is due.  

9.8 Currency. All payments under this Agreement shall be payable in U.S. Dollars. With respect to sales of a Product invoiced and
Commercialization Expenses incurred in a currency other than U.S. Dollars, such amounts and the amounts payable hereunder shall be expressed in their U.S. Dollars equivalent calculated using the Currency Hedge Rates described below. For each
Calendar Year during which royalties become due under Section 9.4, Company shall provide MacroGenics: (a) the [***]to be used for the [***]of each country in the Territory in which any royalty-bearing Net Sales are expected to occur; and
(b) the details of each such [***], in each case ((a) and (b)), in writing no later than [***] after the [***] are available from [***] or its Affiliates, which is customarily at the [***]. Each [***]will remain constant throughout the upcoming
Calendar Year. Company shall use the [***] to convert Net Sales to U.S. Dollars for the purpose of calculating royalty payments and N.A. Profit/Loss hereunder.  

9.9 Allocation of N.A. Profit/Loss. During the Co-Funding Term, N.A. Profit/Loss for the Initial Product shall be allocated [***] to Company and
[***] to MacroGenics.  
  

	 	(a)	 Expense Report. Within [***] after the end of each Calendar Quarter following the First Commercial Sale of the Initial Product in the Northern
American Territory during the Co-Funding Term, each Party shall submit to the other Party a [***] of [***] Party during such Calendar Quarter. Within [***] after the end of each Calendar Quarter following the First Commercial Sale of the Initial
Product in the Northern American Territory during the Co-Funding Term, each Party shall submit to the other Party a written report setting forth in reasonable detail the  

  
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Commercialization Expenses incurred by such Party during such Calendar Quarter, provided that the Commercialization Expenses incurred by either Party during the Co-Funding Term before the
First Commercial Sale in the Northern American Territory shall be included in the first Commercialization Expense report submitted by the Parties and shall be used to determine the allocation of N.A. Profit/Loss between the Parties for such Calendar
Quarter. Each Party shall have the right to review and submit any reasonable objection to the Commercialization Expenses set forth in the other Party’s report within [***] following its receipt of the Commercialization Expenses report from the
other Party. Disputes with respect to a Commercialization Expense that are not resolved by the Parties within [***] after such dispute is first raised shall be referred to the JSC for attempted resolution; provided, however, that such
dispute shall [***]. If the JSC does not resolve such dispute within [***], the provisions of ARTICLE 14 shall apply. Until the resolution of such dispute pursuant to ARTICLE 14, [***]. 

 

	 	(b)	N.A. Profit/Loss Reports. Within [***] after the end of each Calendar Quarter following the First Commercial Sale of the Initial Product in the Northern American Territory, and for the remainder of the Co-Funding
Term, Company shall submit to MacroGenics a report setting forth in reasonable detail all [***] (with the detail set forth in Section 9.7, mutatis mutandis) and an allocation of profits or losses between the Parties (the
“Quarterly N.A. Profit/Loss Report”). Company shall pay all amounts due to MacroGenics pursuant to this Section 9.9 at the time of submission of the Quarterly N.A. Profit/Loss Report; provided, however, that if
the Quarterly N.A. Profit/Loss Report indicates a loss for such Calendar Quarter, MacroGenics shall pay the amount due to Company pursuant to this Section 9.9 within [***] following its receipt of such Quarterly N.A. Profit/Loss Report. 

  

	 	(c)	Financial Report Formats and Timing. Upon the request of either Party, the finance teams of the Parties will meet and attempt to agree in good faith on alternative financial report formats and timetables to use
in lieu of the reports and deadlines described in Section 9.9(a).  

 9.10 Third Party Financial Obligations.

  

	 	(a)	 MacroGenics shall be solely responsible for the payment of any royalties, sublicense revenues, milestones or other payments due by either
Party, their Affiliates or sublicensees to Third Parties arising with respect to [***] (each, a “Third Party Obligation”), (i) to the extent such Third Party [***], or (ii) to the extent such Third Party Obligation [***].
If MacroGenics fails to pay any amount of a Third Party Obligation related to the DART Platform, a Compound and/or a Product and such payment [***] or the failure to make such payment [***], upon [***] prior notice, Company may elect, in its sole
discretion, to make such payment  

  
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to such Third Party on behalf of MacroGenics. If Company makes such payment to such Third Party, Company may deduct the amount of such payment from any payments that are owed or that become owed
to MacroGenics under this Agreement or, if such deduction is not applicable, MacroGenics shall reimburse Company the amount of such payment within [***] after Company makes such payment. 

 

	 	(b)	Except for Third Party Obligations set forth in Section 9.10(a), Company shall be responsible for all Third Party Obligations (including any licenses for [***]). Company may credit [***] of any Third Party
Obligation resulting from Patents and/or Know-How owned by Third Parties that is paid by Company pursuant to this Section 9.10(a) against any royalties payable to MacroGenics under Section 9.4. Company shall take such credit during any
Calendar Quarter for which royalties are payable hereunder, provided that in no event will such credit, together with any reductions under Section 9.6, reduce the royalties payable to MacroGenics for such Calendar Quarter by more than
[***]. Any share of such Third Party Obligations that remains uncredited due to the application of such floor may be carried forward to subsequent Calendar Quarters. 

9.11 Taxes. 
 Company will
make all payments to MacroGenics under this Agreement without deduction or withholding for Taxes, except to the extent that any such deduction or withholding is required by Applicable Law in effect at the time of payment. Any Tax required to be
withheld on amounts payable under this Agreement will be paid by Company on behalf of MacroGenics to the appropriate Governmental Authority, and Company will furnish MacroGenics with proof of payment of such Tax. Any such Tax required to be withheld
will be an expense of and borne by MacroGenics. If any such Tax is assessed against and paid by Company, then MacroGenics will indemnify and hold harmless Company from and against such Tax. 

 

	 	(a)	Company and MacroGenics will cooperate with respect to all documentation required by any taxing authority or reasonably requested by Company to secure a reduction in the rate of applicable withholding Taxes.

 If Company assigns its rights and obligations hereunder to an Affiliate or Third Party in compliance with
Section 16.4 and if such Affiliate or Third Party shall be required by Applicable Law to withhold any additional taxes from or in respect of any amount payable under this Agreement as a result of such assignment, then any such amount payable
under this Agreement shall be increased to take into account the additional taxes withheld as may be necessary so that, after making all required withholdings, MacroGenics receives an amount equal to the sum it would have received had no such
assignment been made. The foregoing sentence shall not apply to any additional taxes withheld to the extent MacroGenics may obtain a foreign tax credit therefor. 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 9.12 Tax Returns. 
  

	 	(a)	The Parties hereby agree that each Party’s share of Global Development Costs, including amounts paid under Section 8.2(d), shall be accounted for by each Party separately for research tax credit and
orphan drug credit purposes. 

  

	 	(b)	The Parties hereby agree that [***]of any deductions for tax purposes attributable to amounts paid or incurred by MacroGenics pursuant to this Agreement shall be deductible or amortizable solely by MacroGenics,
and [***]of any deductions for tax purposes attributable to amounts paid or incurred by Company pursuant to this Agreement shall be deductible or amortizable solely by Company. All Tax returns reflecting any such amounts shall be filed (and any
available elections to effect such intent, including a remedial allocation election, shall be made) consistent with the foregoing. 

9.13 Audit. Each Party shall maintain complete and accurate records in the ordinary course of such Party’s operations in order to permit
the other Party to confirm the accuracy of the calculation of royalties, milestones, profits, losses, Global Development Costs, FTE Costs, Third Party Expenses and other payments under this Agreement. Upon reasonable prior notice, but not more than
[***], such records shall be available during regular business hours for a period of [***] from the end of the Calendar Year to which they pertain for examination by an independent certified public accountant selected by the requesting Party and
reasonably acceptable to the other Party for the sole purpose of verifying the accuracy of the financial reports and correctness of the payments furnished by the other Party pursuant to this Agreement. Any such auditor shall not disclose the other
Party’s Confidential Information, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by the other Party or the amount of payments due by the other Party under this Agreement. Any amounts
shown to be owed but unpaid shall be paid within [***] from the accountant’s report, plus interest, as set forth in Section 9.14 from the original due date. Any amounts shown to have been overpaid shall be refunded within [***] from the
accountant’s report. The requesting Party shall bear the full cost of such audit unless such audit discloses an underpayment by the other Party of more than [***] of the amount due (except to the extent caused by improper reporting of the
requesting Party), in which case the other Party shall bear the full cost of such audit. 
 9.14 Late Payment. All payments due to a Party
hereunder shall be made in U.S. Dollars by wire transfer of immediately available funds into an account designated by the receiving Party. If a Party does not receive payment of any sum due to it on or before the due date, simple interest shall
thereafter accrue on the sum due to such Party until the date of payment at the per annum rate of [***] over the then-current prime rate quoted by [***] or the maximum rate allowable by Applicable Law, whichever is lower. 

  
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 ARTICLE 10 

INTELLECTUAL PROPERTY MATTERS 
 10.1
Ownership of Inventions. Each Party shall own any Inventions made solely by its (or its Affiliates’) own employees, agents, or independent contractors in the course of conducting its activities under this Agreement, together with all
intellectual property rights therein (“Sole Inventions”). The Parties shall jointly own any Inventions for which the inventors include at least one employee, agent, or independent contractor of each Party (or its respective
Affiliates) in the course of performing activities under this Agreement, together with all intellectual property rights therein (“Joint Inventions”). Inventorship shall be determined in accordance with U.S. patent laws. Subject to
any licenses granted under this Agreement, each Party will have the right to practice and Exploit any Joint Inventions without the duty of accounting to any other Party or seeking consent (for licensing, assigning or otherwise exploiting Joint
Inventions) from the other Party by reason of the joint ownership thereof; and each Party hereby waives any right such Party may have under the laws of any jurisdiction to require any such approval or accounting and, to the extent there are any
Applicable Laws that prohibit such a waiver, each Party will be deemed to have so consented. In furtherance thereof, at the reasonable written request of a Party, the other Party will in writing grant such consents and confirm that no such
accounting is required to effect the foregoing regarding Joint Inventions. 
 10.2 Disclosure of Inventions. Each Party shall promptly
disclose to the other Party any Invention that is necessary or useful to Exploit Compounds or Products in the Field in the Territory during the Term. With respect to any Joint Invention, each Party shall promptly disclose to the other Party any
invention disclosures, or other similar documents, submitted to it by its employees, agents or independent contractors describing the Joint Invention, and all Information relating to such Invention to the extent necessary for the use of such
Invention in the Development or Commercialization of the Compounds or the Products in the Field and, to the extent patentable, for the preparation, filing and maintenance of any Patent with respect to such Invention. 

10.3 Prosecution of Patents. 
  

	 	(a)	MacroGenics Platform Patents. Except as otherwise provided in this Section 10.3(a), as between the Parties, MacroGenics shall have the sole right and authority to prepare, file, prosecute and maintain the
MacroGenics Platform Patents on a worldwide basis at its sole expense. MacroGenics shall provide Company a reasonable opportunity to review and comment on its efforts to prepare, file, prosecute and maintain MacroGenics Platform Patents in the
Territory, including by providing Company with a copy of material communications from any patent authority in the Territory regarding any MacroGenics Platform Patent, and by providing drafts of any material filings or responses to be made to such
patent authorities in advance of submitting such filings or responses. MacroGenics shall consider Company’s comments regarding such communications and drafts in good faith.  

  
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	 	(b)	MacroGenics Product Patents. The Parties shall jointly prepare, file, prosecute and maintain the MacroGenics Product Patents on a worldwide basis through outside counsel selected by Company and acceptable to
MacroGenics, provided that Company shall reasonably consider utilizing the outside counsel currently prosecuting the MacroGenics Product Patents. Company shall reimburse MacroGenics for MacroGenics Out-of-Pocket Patent Costs incurred
in the filing, prosecution and maintenance of MacroGenics Product Patents. The Parties shall use good faith efforts to agree upon the Patent strategy with respect to the MacroGenics Product Patents, including the scope of protection to be sought in
such Patents and the countries in which such Patents are to be maintained. If the Parties disagree with respect to the preparation, filing, prosecution or maintenance of any MacroGenics Product Patent, such disagreement shall be [***], and such
[***] provide a potential resolution for the dispute; provided, however, that if such disagreement relates to whether or not [***], then such disagreement shall [***] and the Party that desires to file or maintain such [***] shall have
the right [***]. If the Parties agree with such potential resolution, such resolution shall be final and binding. If the Parties do not agree with such potential resolution, [***] with respect to the disputed matter. Each Party shall have access to
copies of all documents relating to the preparation, filing, prosecution and maintenance of the MacroGenics Product Patents and shall be permitted to access such documents in a timely manner. 

 

	 	(c)	Company Patents. Company shall have the sole right and authority to prepare, file, prosecute and maintain the Company Patents on a worldwide basis at its own expense. Company shall provide MacroGenics a
reasonable opportunity to review and comment on its efforts to prepare, file, prosecute and maintain Company Patents in the Territory, including by providing MacroGenics with a copy of material communications from any patent authority regarding any
Company Patent in the Territory, and by providing drafts of any material filings or responses to be made to such patent authorities in advance of submitting such filings or responses.Company shall consider MacroGenics’ comments regarding such
communications and drafts in good faith. 

  

	 	(d)	 Joint Patents. Except as otherwise provided in this Section 10.30, Company shall have the primary right and authority to prepare, file,
prosecute and maintain the Patents included in the Joint Inventions (“Joint Patents”) on a worldwide basis at its own expense. Company shall provide MacroGenics with a reasonable opportunity to review and comment on its efforts to
prepare, file, prosecute and maintain Joint Patents, including by providing MacroGenics with a copy of material communications from any patent authority regarding any Joint Patent, and by providing drafts of any material filings or responses to be
made in advance of submitting such filings or responses. Company shall consider MacroGenics’ comments regarding such communications and drafts in good faith. If Company determines in its discretion to abandon or not maintain any Joint Patent(s)
in any  

  
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country(ies) of the world, then Company shall provide MacroGenics with written notice of such determination within a period of time reasonably necessary to allow MacroGenics to determine its
interest in such Joint Patent(s) (which notice from Company shall be given no later than [***] prior to any final deadline for any pending action or response that may be due with respect to such Joint Patent(s) with the applicable patent authority).
If MacroGenics provides written notice expressing its interest in obtaining such Joint Patent(s), Company shall, free of charge, assign and transfer to MacroGenics the ownership of, and interest in, such Joint Patent(s) in such country(ies), at
MacroGenics’ own expense, and Company shall cooperate with MacroGenics for assignment and transfer of such Joint Patent(s) in such country. Thereafter, all such assigned and transferred Patents will be deemed MacroGenics Platform Patents and
MacroGenics shall have the right to prepare, file, prosecute and maintain such Patents as set forth in Section 10.3(a). 

  

	 	(e)	Cooperation in Prosecution. Each Party shall provide the other Party all reasonable assistance and cooperation in the Patent prosecution efforts provided above in this Section 10.3, including providing any
necessary powers of attorney and executing any other required documents or instruments for such prosecution, as well as further actions as set forth below. Such assistance and cooperation shall include making a Party’s inventors and other
scientific advisors reasonably available to assist the other Party’s Patent prosecution efforts. 

(i) The Parties shall respectively prepare, file, maintain and prosecute the MacroGenics Patents, the Company Patents
and the Joint Patents as set forth in this Section 10.3. As used herein, “prosecution” of such Patents shall include all communication and other interaction with any patent office or patent authority having jurisdiction over a patent
application in connection with pre-grant proceedings. 
 (ii) All communications between the Parties relating to the
preparation, filing, prosecution or maintenance of the MacroGenics Patents, the Company Patents and the Joint Patents, including copies of any draft or final documents or any communications received from or sent to patent offices or patenting
authorities with respect to such Patents, shall be considered Confidential Information of the Party Controlling the relevant Patent and subject to the confidentiality provisions of ARTICLE 12. 

(iii) Assignments in the MacroGenics Patents, Joint Patents and Company Patents shall be effected as follows:
(i) employees or agents of MacroGenics (or its Affiliates) that are named as inventors on the MacroGenics Patents shall assign their interest in such Patents to MacroGenics or its Affiliate; (ii) employees or agents of Company or
MacroGenics (or their respective Affiliates) that are named as inventors on the Joint Patents shall assign their interest in such Patents to their respective employer; and (iii) employees or agents of Company (or its Affiliates) that are named
as inventors on the Company Patents shall assign their interests in such Patents to Company or its Affiliate. 

  
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 10.4 Patent Term Extensions in the Territory. Company shall decide for which, if any, of the
MacroGenics Product Patents, Joint Patents, Company Patents or other Patents Controlled by Company, its Affiliates or designees the Parties should seek patent term extensions, supplemental protection certificates or their equivalents (each a
“Patent Extension” and collectively “Patent Extensions”) in the Territory and Company shall have the right to seek such Patent Extensions. In the event that the opportunity to seek a Patent Extension, supplemental
protection certificate or an equivalent becomes available for a Product in the Territory based on [***] and if Company, its Affiliates or designees do not seek a Patent Extension for [***], subject to the provisions of this Section 10.4,
MacroGenics shall have the right, but not the obligation, to [***] and Company shall reasonably cooperate with MacroGenics in [***]. MacroGenics shall not seek any Patent Extension that is reasonably likely to have a material adverse effect on the
Commercialization of the Product or if there is a good faith dispute between the Parties as to whether a Patent Extension is being sought for a Patent that does not Cover the applicable Product (a “Good Faith Dispute”). In the event
that Company does not intend to seek Patent Extensions for any [***], it shall so inform MacroGenics in writing in sufficient time to permit MacroGenics to seek a Patent Extension. MacroGenics shall not seek any such Patent Extension unless it first
engages in good faith discussions with Company regarding Company’s reasons for not seeking Patent Extensions and MacroGenics’ rationale and plans for seeking Patent Extensions, but, unless a Good Faith Dispute still exists, thereafter
shall have the right to seek such Patent Extensions. The Party that does not apply for a Patent Extension hereunder will cooperate fully with the other Party in making such filings or actions, including making available all required regulatory data
and Information and executing any required authorizations to apply for such Patent Extension. All expenses incurred in connection with activities of each Party with respect to the Patent(s) for which such Party seeks Patent Extension pursuant to
this Section 10.4 shall be entirely borne by such Party. 
 10.5 Infringement of Patents by Third Parties. 

 

	 	(a)	Notification. Each Party shall promptly notify the other Party in writing of any existing, alleged or threatened infringement of any MacroGenics Patent, Joint Patent or Company Patent of which it becomes aware,
and shall provide all Information in such Party’s possession or control demonstrating such infringement. 

  

	 	(b)	Infringement of MacroGenics Patents or Joint Patents. 

 (i)
Company, subject to Section 10.5(b)(ii) through 10.5(b)(vii), shall have the first right, but not the obligation, to bring an appropriate suit or other action against any Third Party engaged in any existing, alleged or threatened infringement
of any: (i) MacroGenics Product Patent or Joint Patent; and (ii) MacroGenics Platform Patent with respect to a Competitive Infringement. 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 (ii) Company shall notify MacroGenics of its election to take any action
in accordance with Section 10.5(b)(i) within the earlier of: (i[***] after the first notice under Section 10.5(a); or (ii) [***] before any time limit set forth in Applicable Law or regulation, including the time limits set forth
under the Hatch-Waxman Act. Notwithstanding the foregoing sentence, Company shall not initiate any such suit or take such other action with respect to any MacroGenics Product Patent or Joint Patent without first consulting with MacroGenics and
giving good faith consideration to any reasonable objection from MacroGenics regarding Company’s proposed course of action, and Company shall not initiate any such suit or take such other action with respect to a MacroGenics Platform Patent
without the prior written consent of MacroGenics, such consent not to be unreasonably withheld, delayed or conditioned. Should MacroGenics reasonably withhold such consent, MacroGenics shall keep Company reasonably informed of any enforcement
efforts with respect to the MacroGenics Platform Patents and shall consider Company’s comments regarding such enforcement in good faith. MacroGenics shall cooperate in the prosecution of any suit under this Section 10.5 as may be
reasonably requested by Company. In the event that Company elects not to initiate a lawsuit or take other reasonable action with respect to an infringement described in Section 10.5(b)(i), MacroGenics shall have the right, but not the
obligation, to initiate such suit or take such other action, after providing [***] notice to Company and giving good faith consideration to Company’s reason(s) for not initiating a suit or taking other action. 

(iii) If one Party elects to bring suit or take action under this Section 10.5(b) against an infringement, then the
other Party shall have the right, prior to commencement of the suit or action, to join any such suit or action. 

(iv) Each Party shall provide to the Party enforcing any such rights under this Section 10.5(b) reasonable
assistance in such enforcement, at such enforcing Party’s request and expense, including joining such action as a party plaintiff if required by Applicable Law to pursue such action. The enforcing Party shall keep the other Party regularly
informed of the status and progress of such enforcement efforts, shall reasonably consider the other Party’s comments on any such efforts, and shall consult the other Party in any important aspects of such enforcement, including determination
of material litigation strategy and filing of important papers to the competent court. 
 (v) Each Party shall bear
all of its own internal costs incurred in connection with its activities under this Section 10.5(b). In the event that the Parties are joined in suit or action against the infringement or the non-enforcing Party elects to join such suit or
action and, in either case, elects to be represented by the same outside counsel as the enforcing Party, then the enforcing Party shall be responsible for all expenses arising from such outside counsel, provided that the enforcing Party
consents to such joint representation by outside counsel, such consent not to be unreasonably withheld, delayed or conditioned. 

  
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 (vi) The Party not bringing an action with respect to infringement in the
Territory under this Section 10.5(b) shall be entitled to separate representation in such matter by counsel of its own choice and at its own expense, but such Party shall at all times cooperate fully with the Party bringing such action. 

(vii) Neither Party shall settle any claim, suit or action that it brought under this Section 10.5 involving
MacroGenics Product Patents or Joint Patents without the prior written consent of the other Party, such consent not to be unreasonably withheld, delayed or conditioned. 
  

	 	(c)	Infringement of Company Patents. For any and all infringement of any Company Patent, Company shall have the sole and exclusive right, but not the obligation, to bring, at Company’s expense and in its sole
control, an appropriate suit or other action against any person or entity engaged in such infringement of the Company Patent. 

  

	 	(d)	Allocation of Proceeds. If either Party recovers monetary damages from any Third Party in a suit or action brought under Section 10.5(b), 10.7(a) or 10.7(b) or any royalties, milestones or other payments
from a license agreement with a Third Party related to any alleged infringement related to a Product, whether such damages or royalties result from the infringement of MacroGenics Patents, Joint Patents or Company Patents, such recovery
(“Infringement Recovery”) shall be allocated first to the reimbursement of any expenses incurred by the Parties in such litigation, action or license negotiations, and any remaining amounts shall be allocated as follows:

 (i) with respect to suits or actions brought by Company resulting in an Infringement Recovery
relating to the Initial Product in the Northern American Territory during the Co-Funding Term, [***] to Company and [***] to MacroGenics; 

(ii) with respect to suits or actions brought by Company resulting in an Infringement Recovery relating to (w) the
Initial Product outside the Northern American Territory during the Co-Funding Term, (x) the Initial Product in the Northern American Territory after the Co-Funding Term if the Co-Funding Term is terminated, (y) the Initial Product anywhere
in the world if MacroGenics does not exercise the Co-Funding Option or (z) any Product other than the Initial Product anywhere in the world, then (1) if the reward is based on lost profits, an amount equal to the royalty that would be
payable pursuant to Section 9.4 on the imputed amount of Net Sales of the relevant Product(s) in the country(ies) where such infringement occurred, or (y) if the reward reflects royalty payments, such reward shall be considered Net Sales
and subject to the applicable royalty in accordance with Section 9.4; and 
 (iii) with respect to suits or
actions brought by MacroGenics, the Infringement Recovery shall be retained by MacroGenics. 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 10.6 Infringement of Third Party Rights in the Territory. 

 

	 	(a)	Notice. If any Product used or sold by either Party, its Affiliates, or sublicensees in the Field becomes the subject of a Third Party’s claim or assertion of infringement of a Patent granted by a
jurisdiction within the Territory, the Party first having notice of the claim or assertion shall promptly notify the other Party. 

  

	 	(b)	Defense. 

 (i) Company shall have the first right, but not the
obligation, to defend any such Third Party claim or assertion of infringement, other than a [***], of a Patent as described in Section 10.6(a), at Company’s expense. If Company does not commence actions to defend such claim within [***
]after it receives notice thereof (or within [***] after it should have given notice thereof to MacroGenics as required by Section 10.6(a)), then, to the extent allowed by Applicable Law, MacroGenics shall have the right, but not the
obligation, to control the defense of such claim by counsel of its choice, at MacroGenics’ expense. The non-defending Party shall reasonably cooperate with the Party conducting the defense of the claim or assertion, including if required to
conduct such defense, furnishing a power of attorney. 
 (ii) MacroGenics shall have the first right, but not the
obligation, to defend any [***] at MacroGenics’ expense. If MacroGenics does not commence actions to defend or settle such [***]within [***]after it receives notice thereof, then, to the extent allowed by Applicable Law, Company shall have the
right, but not the obligation, to control the defense of such claim by counsel of its choice, at MacroGenics’ expense. The non-defending Party shall reasonably cooperate with the Party conducting the defense of the claim or assertion, including
if required to conduct such defense, furnishing a power of attorney. 
  

	 	(c)	Settlement; Licenses. MacroGenics shall not enter into any settlement of any claim described in this Section 10.6 that affects Company’s rights or interests without Company’s prior written consent, such
consent not to be unreasonably withheld, delayed or conditioned. For purposes of clarification, MacroGenics shall not be required to obtain Company’s consent to enter into a settlement of a [***] that it elects to settle under Section
10.6(b)(ii), provided that Company is given prior notice of such proposed settlement with a reasonable amount of time to review and comment and, unless such settlement is likely to detrimentally affect Company’s material rights or
interest, as communicated to MacroGenics by Company. Except for a settlement of a [***] that MacroGenics declined to defend or settle under Section 10.6(b)(ii), Company shall not enter into any settlement of any claim described in this Section 10.6
that detrimentally affects MacroGenics’ 

  
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material rights or interests without MacroGenics’ written consent, such consent not to be unreasonably withheld, delayed or conditioned. Each Party shall have the right to decline to defend
or to tender defense of any claim described in this Section 10.6 upon reasonable notice to the other Party, including if the other Party fails to agree to a settlement that the declining Party proposes. In the event that it is determined by any
court of competent jurisdiction that the research, Development, Manufacture, or Commercialization of a Product, conducted in accordance with the terms and conditions of this Agreement, infringes, or Company determines reasonably and in good faith
that such activities are likely to infringe, any Patent, copyright, trademark, data exclusivity right or trade secret right arising under Applicable Law of any Third Party, Company shall use Commercially Reasonable Efforts to: [***]. To the extent
such a license relates to the Commercialization of a Product, the cost of such license shall be considered a Third Party Obligation and allocated between the Parties in accordance with Section 9.10. In the event that Company decides that
neither of the foregoing alternatives is reasonably available or commercially feasible, Company may, at its discretion, terminate this Agreement for the Product affected in accordance with Section 13.2. 

10.7 Patent Oppositions and Other Proceedings. 
  

	 	(a)	Third Party Patent Rights. If either Party desires to bring an opposition, action for declaratory judgment, nullity action, interference, declaration for non-infringement, reexamination or other attack upon the
validity, title or enforceability of a Patent owned or controlled by a Third Party and having one or more claims that Cover a Product, or the use, sale, offer for sale or importation of a Product (except insofar as such action is a counterclaim to
or defense of, or accompanies a defense of, a Third Party’s claim or assertion of infringement under Section 10.6, in which case the provisions of Section 10.6 shall govern), such Party shall so notify the other Party and the Parties
shall promptly confer to determine whether to bring such action or the manner in which to settle such action. Company shall have the exclusive right, but not the obligation, to bring, at its own expense and in its sole control, such action in the
Territory. If Company does not bring such an action in the Territory within [***] of notification thereof pursuant to this Section 10.7(a) (or earlier, if required by the nature of the proceeding), then MacroGenics shall have the right, but not
the obligation, to bring such action, at MacroGenics’ own expense. The Party not bringing an action under this Section 10.7(a) shall be entitled to separate representation in such proceeding by counsel of its own choice and at its own
expense, and shall cooperate fully with the Party bringing such action. Any awards or amounts received in bringing any such action shall be first allocated to reimburse the initiating Party’s expenses in such action, and any remaining amounts
shall be allocated between the Parties as provided in Section 10.5(d). 

  
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	 	(b)	Parties’ Patent Rights. If any MacroGenics Product Patent or Joint Patent becomes the subject of any proceeding commenced by a Third Party within the Territory in connection with an opposition, reexamination
request, action for declaratory judgment, nullity action, interference or other attack upon the validity, title or enforceability thereof (a “Third Party Patent Challenge”) (except insofar as such action is a counterclaim to or
defense of, or accompanies a defense of, an action for infringement against a Third Party under Section 10.6, in which case the provisions of Section 10.6 shall govern), then the Party responsible for filing, preparing, prosecuting and
maintaining such Patent as set forth in Section 10.3 hereof shall control such defense at its own expense. The controlling Party shall permit the non-controlling Party to participate in the proceeding to the extent permissible under Applicable
Law, and to be represented by its own counsel in such proceeding, at the non-controlling Party’s expense. If either Party decides that it does not wish to defend against such action, then the other Party shall have a backup right to assume
defense of such Third Party action at its own expense. Any awards or amounts received in defending any such Third Party action shall be allocated between the Parties as provided in Section 10.5(d). MacroGenics shall have the sole discretion
whether to defend and shall solely control any defense of a Platform Patent which is the subject of a Third Party Patent Challenge, provided that MacroGenics shall keep Company reasonably informed regarding such enforcement and shall consider
Company’s comments regarding such enforcement in good faith. 

 ARTICLE 11 

REPRESENTATIONS, WARRANTIES AND COVENANTS 

11.1 Mutual Representations, Warranties and Covenants. Each of the Parties hereby represents and warrants to the other Party as of the Execution
Date and, as applicable, hereinafter covenants that: 
  

	 	(a)	Organization. It is a corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization, and has all requisite power and authority, corporate or otherwise,
to execute, deliver, and perform this Agreement. 

  

	 	(b)	Binding Agreement. This Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, or other laws of general
application affecting the enforcement of creditor rights, judicial principles affecting the availability of specific performance, and general principles of equity (whether enforceability is considered a proceeding at law or equity).

  

	 	(c)	 Authorization. The execution, delivery, and performance of this Agreement by such Party have been duly authorized by all necessary corporate
action and do not 

  
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conflict with any agreement, obligation, instrument, or understanding, oral or written, to which it is a party or by which it is bound, nor violate any Applicable Law or any order, writ,
judgment, injunction, decree, determination, or award of any Governmental Authority presently in effect applicable to such Party. 

  

	 	(d)	No Further Approval. It is not aware of any government authorization, consent, approval, license, exemption of or filing or registration with any Governmental Authority under any Applicable Law, currently in
effect, necessary for, or in connection with, the transactions contemplated by this Agreement or any other agreement or instrument executed in connection herewith, or for the performance by it of its obligations under this Agreement and such other
agreements (save for Regulatory Approvals and similar authorizations from Governmental Authorities necessary for the Exploitation of the Compounds and Products as contemplated hereunder), except as may be required to obtain clearance of this
Agreement under the HSR Act. 

  

	 	(e)	No Inconsistent Obligations. It is not under any obligation, contractual or otherwise, to any Person that conflicts with or is inconsistent in any material respect with the terms of this Agreement, or that would
impede the diligent and complete fulfillment of its obligations hereunder. 

 11.2 Additional Representations and Warranties of
MacroGenics. MacroGenics represents and warrants as of the Execution Date and, as applicable, covenants to Company that: 
  

	 	(a)	MacroGenics (or its Affiliates) is the sole and exclusive owner of, or otherwise Controls pursuant to an existing Third Party agreement, the MacroGenics Technology and the Regulatory Materials. MacroGenics has all
rights necessary to grant the licenses under the MacroGenics Technology and rights of cross-reference under Regulatory Materials that it grants to Company in this Agreement. During the Term, MacroGenics shall not, and shall cause its Affiliates not
to, grant to any Third Party rights that encumber or conflict with the rights granted to Company hereunder with respect to the MacroGenics Technology or Regulatory Materials. 

 

	 	(b)	 The Patents set forth in Exhibit C (“Licensed Patents”) represent all Patents that MacroGenics or any of its Affiliates
owns or Controls that Cover or disclose any invention necessary or used for the Exploitation of the Compounds or Products in the Territory in the Field as of the Execution Date. The Licensed Patents are free and clear of liens, charges or
encumbrances other than licenses granted to Third Parties that are not inconsistent with the rights and licenses granted to Company hereunder. No Third Party has challenged or threatened in writing to challenge the scope, validity or enforceability
of any Licensed Patent (including, by way of example, through opposition or the institution or written threat of institution of interference, nullity or similar invalidity proceedings before the U.S. Patent and Trademark Office or any analogous
foreign Governmental Authorities). MacroGenics or its Affiliates have timely paid all filing and renewal fees payable 

  
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with respect to any Licensed Patents for which MacroGenics controls prosecution and maintenance. The development of the Licensed Patents has not been funded, in whole or in part, by the U.S.
government. 

  

	 	(c)	MacroGenics or any of its Affiliates owns or Controls all MacroGenics Know-How necessary or useful for the Exploitation of the Compounds or Products in the Territory in the Field. The MacroGenics Know-How is free and
clear of liens, charges or encumbrances other than licenses granted to Third Parties that are not inconsistent with the rights and licenses granted to Company hereunder. MacroGenics and its Affiliates have taken commercially reasonable measures
consistent with industry practices to protect the secrecy, confidentiality and value of all MacroGenics Know-How that constitutes trade secrets under Applicable Law (including requiring all employees, consultants and independent contractors to
execute binding and enforceable agreements requiring all such employees, consultants and independent contractors to maintain the confidentiality of such MacroGenics Know-How). The development of the MacroGenics Know-How has not been funded, in whole
or in part, by the U.S. government. 

  

	 	(d)	There is no actual or, to MacroGenics’ Knowledge, threatened infringement or misappropriation of the MacroGenics Technology by any Person in the Territory. MacroGenics has not received any written notice or threat
of any material suit, legal claim, action, proceeding or investigation against MacroGenics or any of its Affiliates that relates to the MacroGenics Technology, and no judgment or settlement is owed by MacroGenics or any of its Affiliates in
connection with the MacroGenics Technology. 

  

	 	(e)	The MacroGenics Technology collectively constitutes all intellectual property Controlled by MacroGenics that is necessary or useful for the Exploitation of the Compounds and the Products. To MacroGenics’ Knowledge,
except as otherwise disclosed by MacroGenics to Company, or discussed by the Parties, during the course of preparing this Agreement, the Exploitation of the Compounds or Products in the Field in the Territory does not and will not infringe or
misappropriate the Patents (including any Third Party patent application published as of the Execution Date, when and if the claims thereunder issue in their current form) or other intellectual property or proprietary rights of any Third Party in
the Territory. 

  

	 	(f)	 All current and former officers, employees, agents, advisors, consultants, contractors or other representatives of MacroGenics or any of its
Affiliates who are inventors of or have otherwise contributed in a material manner to the creation or development of any MacroGenics Technology have executed and delivered to MacroGenics or any such Affiliate a valid and enforceable assignment or
other agreement regarding the protection of proprietary Information and the assignment to MacroGenics or any such Affiliate of such person’s entire right, title and interest in and to any MacroGenics Technology. To MacroGenics’ Knowledge,
no current 

  
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officer, employee, agent, advisor, consultant or other representative of MacroGenics or any of its Affiliates is in violation of any term of any assignment or other agreement regarding the
protection of MacroGenics Patents or other MacroGenics Technology or of any employment contract or any other contractual obligation relating to the relationship of any such Person with MacroGenics or any such Affiliate. Company shall have no
obligation to contribute to any remuneration of any inventor employed or previously employed by MacroGenics or any of its Affiliates in respect of any such inventions, Information and discoveries and intellectual property rights therein that are so
assigned to MacroGenics or its Affiliate(s). MacroGenics will pay all such remuneration due to such inventors with respect to such inventions and other Know-How and intellectual property rights therein. 

 

	 	(g)	MacroGenics has (i) prepared, maintained and retained all Regulatory Materials for the Compounds and the Products in the Territory pursuant to and in accordance in all material respects with all Applicable Law,
including, as applicable, GLP, and such Regulatory Materials do not contain any materially false and misleading statements; (ii) MacroGenics has conducted, and has used Commercially Reasonable Efforts to cause its contractors and consultants to
conduct, all studies, tests and pre-clinical trials of the Compounds and the Products conducted prior to, or being conducted on, the Execution Date in accordance with the applicable experimental protocols, procedures and controls pursuant to
accepted professional scientific standards, accepted ethical standards and Applicable Law, including, as applicable, GLP; (iii) except as disclosed in writing by MacroGenics to Company prior to the Execution Date, no adverse event involving
human subjects has occurred in connection with any study, test or pre-clinical trial of the Compounds or the Products; and (iv) MacroGenics has disclosed to Company all material data and other information in its control generated in the design,
approval, undertaking and reporting of any study or pre-clinical trial involving the Compounds or the Products. 

  

	 	(h)	 Neither MacroGenics nor any of its Affiliates has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FFDCA
or is subject to any similar sanction of other Governmental Authorities in the Territory, and neither MacroGenics nor any of its Affiliates has used, in any capacity, any Person who either has been debarred by the FDA, is the subject of a conviction
described in Section 306 of the FFDCA or is subject to any such similar sanction. MacroGenics shall not engage, in any capacity in connection with this Agreement or any ancillary agreements, any Person who either has been debarred by the FDA,
is the subject of a conviction described in Section 306 of the FFDCA or is subject to any such similar sanction. MacroGenics shall inform Company in writing promptly if it or any Person engaged by MacroGenics or any of its Affiliates who is
performing services under this Agreement or any ancillary agreements is debarred or is the subject of a conviction described in Section 306 of the FFDCA, or if any action, 

  
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suit, claim, investigation or legal or administrative proceeding is pending or, to MacroGenics’ Knowledge, is threatened, relating to the debarment or conviction of MacroGenics, any of its
Affiliates or any such Person performing services hereunder or thereunder. 

 11.3 Additional Representations and Warranties of
Company. Company represents and warrants as of the Execution Date and covenants to MacroGenics that: 
  

	 	(a)	Neither Company nor any of its Affiliates has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FFDCA or is subject to any similar sanction of other Governmental Authorities
in the Territory, and neither Company nor any of its Affiliates has used, in any capacity, any Person who either has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FFDCA or is subject to any such
similar sanction. Company shall not engage, in any capacity in connection with this Agreement or any ancillary agreements, any Person who either has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FFDCA
or is subject to any such similar sanction. Company shall inform MacroGenics in writing promptly if it or any Person engaged by Company or any of its Affiliates who is performing services under this Agreement or any ancillary agreements is debarred
or is the subject of a conviction described in Section 306 of the FFDCA, or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to Company’s Knowledge, is threatened, relating to the debarment or
conviction of Company, any of its Affiliates or any such Person performing services hereunder or thereunder. 

  

	 	(b)	Company is not subject to any agreement with any Third Party which would limit or restrict its ability to perform its obligations under this Agreement in any material respect. 

11.4 No Other Representations or Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 11, THE PARTIES MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY
KIND WHATSOEVER, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, INCLUDING ANY EXPRESS OR IMPLIED WARRANTY OF QUALITY, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF NON-INFRINGEMENT OR AS TO THE VALIDITY OF ANY PATENTS. EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION OF ANY PRODUCT PURSUANT TO THIS
AGREEMENT WILL BE SUCCESSFUL OR THAT ANY PARTICULAR SALES LEVEL WITH RESPECT TO ANY PRODUCT WILL BE ACHIEVED. 

  
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 ARTICLE 12 

CONFIDENTIALITY 
 12.1
Nondisclosure. Each Party agrees that, during the Term and for a period of [***] thereafter, the Party (the “Receiving Party”) receiving Confidential Information of the other Party (the “Disclosing
Party”) shall (a) maintain in confidence such Confidential Information using not less than the efforts such Receiving Party uses to maintain in confidence its own confidential or proprietary Information of similar kind and value,
(b) not disclose such Confidential Information to any Third Party without the prior written consent of the Disclosing Party, except for disclosures expressly permitted below, and (c) not use such Confidential Information for any purpose
except those permitted by this Agreement (it being understood that this Section 12.1 shall not create or imply any rights or licenses not expressly granted under this Agreement). Notwithstanding anything to the contrary in the foregoing, the
obligations of confidentiality and non-use with respect to any trade secret within such Confidential Information shall survive such [***] period for so long as such Confidential Information remains protected as a trade secret under Applicable Law.

 12.2 Exceptions. The obligations in Section 12.1 shall not apply with respect to any portion of the Confidential Information that the
Receiving Party can show by competent evidence: 
  

	 	(a)	is publicly disclosed by the Disclosing Party, either before or after it is disclosed to the Receiving Party hereunder; 

  

	 	(b)	is known to the Receiving Party or any of its Affiliates, without any obligation to keep it confidential or any restriction on its use, in each case, to the Disclosing Party, prior to disclosure to the Receiving Party
or any of its Affiliates by the Disclosing Party; 

  

	 	(c)	is subsequently disclosed to the Receiving Party or any of its Affiliates on a non-confidential basis by a Third Party that, to the Receiving Party’s Knowledge, is not bound by a similar duty of confidentiality or
restriction on its use, in each case, to the Disclosing Party; 

  

	 	(d)	is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party or any of its Affiliates in violation of this Agreement, generally known or available, either before or after it is
disclosed to the Receiving Party by the Disclosing Party; 

  

	 	(e)	is independently discovered or developed by or on behalf of the Receiving Party or any of its Affiliates without the use of or reference to the Confidential Information belonging to the Disclosing Party; or

  

	 	(f)	is the subject of written permission to disclose provided by the Disclosing Party. 

  
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 12.3 Authorized Disclosure. The Receiving Party may disclose Confidential Information belonging to
the Disclosing Party only to the extent such disclosure is reasonably necessary in the following instances: 
  

	 	(a)	filing, prosecuting, maintaining, enforcing or defending Patents as permitted by this Agreement; 

  

	 	(b)	as reasonably required in generating Regulatory Materials and obtaining Regulatory Approvals; 

  

	 	(c)	prosecuting or defending litigation, including responding to a subpoena in a Third Party litigation; 

  

	 	(d)	complying with Applicable Law or court or administrative orders; 

  

	 	(e)	complying with any obligation under this Agreement; 

  

	 	(f)	in communications with existing or bona fide prospective acquirers, merger partners, financing sources, investment bankers, lenders or investors, and consultants and advisors of the Receiving Party in connection
with transactions or bona fide prospective transactions with the foregoing, in each case on a need to know basis and under appropriate confidentiality provisions substantially equivalent to those of this Agreement; provided,
however, that the Receiving Party shall remain responsible for any violation of such confidentiality provisions by any Third Party receiving such Confidential Information; or 

 

	 	(g)	to its Affiliates, sublicensees or prospective sublicensees, subcontractors or prospective subcontractors, consultants, agents and advisors on a “need-to-know” basis in order for the Receiving Party to
exercise its rights or fulfill its obligations under this Agreement, each of whom prior to disclosure must be bound by obligations of confidentiality and restrictions on use of such Confidential Information that are no less restrictive than those
set forth in this ARTICLE 12; provided, however, that, in each of the above situations, the Receiving Party shall remain responsible for any failure by any Person who receives Confidential Information pursuant to this
Section 12.3(g) to treat such Confidential Information as required under this ARTICLE 12. 

 If and whenever any
Confidential Information is disclosed in accordance with this Section 12.3, such disclosure shall not cause any such information to cease to be Confidential Information except to the extent that such disclosure results in a public disclosure of
such information (other than by breach of this Agreement). Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to Section 12.3(a) through
Section 12.3(e), it will, except where impracticable or not legally permitted, give reasonable advance notice to the other Party of such disclosure and use not less than the same efforts to secure confidential treatment of such information as
it would to protect its own confidential information from disclosure. 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 12.4 Terms of this Agreement. The Parties acknowledge that this Agreement and all of the respective
terms of this Agreement shall be treated as Confidential Information of both Parties, subject to the provisions of Sections 12.3(f), 12.3(g) and 12.6. 

12.5 Publicity. 
  

	 	(a)	Each Party may, but is not obligated to, make a public announcement of the execution of this Agreement in the form attached as Exhibit F to this Agreement, which shall be issued at a time to be mutually agreed by
the Parties, but no later than [***] after the Execution Date. Except as required to comply with Applicable Law or as set forth in subsection (b), each Party agrees not to issue any other press release or other public statement disclosing other
information relating to this Agreement or the transactions contemplated hereby without the prior written consent of the other Party, such consent not to be unreasonably withheld, delayed or conditioned. 

 

	 	(b)	 The Parties acknowledge the importance of supporting each other’s efforts to publicly disclose results and significant developments regarding the
Products and other activities in connection with this Agreement that may include information that is not otherwise permitted to be disclosed under this ARTICLE 12, and that may be beyond what is required by Applicable Law, but in each case
consistent with the need to keep investors informed regarding such Party’s business in accordance with customary investor relations, and each Party may request to the right to make such disclosures from time to time. Such disclosures may
include achievement of milestones, significant events in the Development and regulatory process, Commercialization activities and the like. Except for the initial press release(s) described in subsection (a), whenever a Party (the
“Requesting Party”) elects to make any such public disclosure, it shall first notify the other Party (the “Cooperating Party”) of such planned press release or public announcement and provide a draft for review at
least [***] in advance of issuing such press release or making such public announcement (or, with respect to press releases and public announcements that are required by Applicable Law, or by regulation or rule of any public stock exchange
(including NASDAQ), with as much advance notice as possible under the circumstances if it is not possible to provide notice at least [***] in advance). The Requesting Party and Cooperating Party will discuss such proposed public disclosure in good
faith. Unless otherwise permitted pursuant to Section 12.6 or required by Applicable Law, or by regulation or rule of any public stock exchange (including NASDAQ), the Requesting Party will not issue such press release or make such public
announcement without the prior written consent of the Cooperating Party, not to be unreasonably withheld, conditioned or delayed, provided that a Party may issue such press release or make such public announcement if: (i) the contents of
such press release or public announcement have 

  
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previously been made public other than through a breach of this Agreement by the Requesting Party, (ii) such press release or public announcement does not materially differ from the
previously issued press release or other publicly available information, (iii) such press release or public announcement does not contain the Cooperating Party’s name and (iv) the Requesting Party notifies the Cooperating Party
reasonably in advance of issuance. The principles to be observed in such disclosures shall include accuracy, compliance with applicable Law and regulatory guidance documents, reasonable sensitivity to potential negative reactions of the FDA (and its
foreign counterparts), the need to protect competitively sensitive information regarding the Products and the need to keep investors informed regarding the Requesting Party’s business. 

12.6 Securities Filings. Notwithstanding anything to the contrary in this ARTICLE 12, in the event either Party proposes to file with the
Securities and Exchange Commission or the securities regulators of any state or other jurisdiction a registration statement or any other disclosure document that describes or refers to the terms and conditions of this Agreement or any related
agreements between the Parties, or requires the filing of this Agreement as an exhibit to such registration, statement or disclosure document, such Party shall notify the other Party of such intention and shall provide the other Party with a copy of
relevant portions of the proposed filing at least [***]prior to such filing (and any revisions to such portions of the proposed filing a reasonable time prior to the filing thereof), including any exhibits thereto that refer to the other Party or
the terms and conditions of this Agreement or any related Agreements between the Parties. The Party making such filing shall cooperate in good faith with the other Party to obtain confidential treatment of the terms and conditions of this Agreement
or any related Agreements between the Parties that the other Party reasonably requests be kept confidential or otherwise afforded confidential treatment, and shall only disclose Confidential Information that it is advised by outside counsel is
legally required to be disclosed. Each Party acknowledges that the other Party may be required by securities regulators, including the Securities and Exchange Commission, or advised by such other Party’s outside counsel that the financial
terms, including the milestone amounts and/or royalty rates must be included in such filings. No notice shall be required under this Section 12.6 if the description of or reference to this Agreement or a related agreement between the Parties
contained in the proposed filing has been included in any previous filing made by either Party in accordance with this Section 12.6 or otherwise approved by the other Party. 

12.7 Relationship to Confidentiality Agreement. This Agreement supersedes the Prior CDA; provided, however, that all
“Confidential Information” disclosed or received by the Parties and their Affiliates thereunder shall be deemed Confidential Information hereunder and shall be subject to the terms and conditions of this Agreement. 

12.8 Equitable Relief. Given the nature of the Confidential Information and the competitive damage that could result to a Party upon
unauthorized disclosure, use or transfer of its Confidential Information to any Third Party, the Parties agree that monetary damages may not be a sufficient remedy for any breach of this ARTICLE 12. In addition to all other remedies, a Party shall
be entitled to seek specific performance and injunctive and other equitable relief as a remedy for any breach or threatened breach of this ARTICLE 12. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 12.9 Publications. Company shall have the right to publish results of all Clinical Trials conducted
with respect to a Compound or a Product; provided, however, that MacroGenics shall have the right to review all proposed publications prior to submission of such publication, solely for the purposes of identifying any relevant
intellectual property or Confidential Information of MacroGenics. Company shall provide MacroGenics with a copy of the applicable proposed abstract, manuscript, or presentation no less than [***] in the case of abstracts) prior to its intended
submission for publication. MacroGenics shall respond in writing promptly and in no event later than [***] in the case of abstracts) after receipt of the proposed material with any concerns regarding patentability or protection of MacroGenics’
Confidential Information. In the event of concern over patent protection, Company agrees not to submit such publication or to make such presentation that contains such information until MacroGenics is given a reasonable period of time, and in no
event less than [***], to seek patent protection for any material in such publication or presentation which it believes is patentable, unless Company reasonably determines that publication of such information is required by Applicable Law. Subject
to Section 12.3, any Confidential Information of MacroGenics shall, if requested by the reviewing Party, be removed by Company from such publication or presentation, except to the extent inclusion of such Confidential Information is required to
comply with Johnson & Johnson’s clinical trial publication policy. 
 ARTICLE 13 

TERM AND TERMINATION 
 13.1
Term. This Agreement shall become effective as of the Execution Date and, unless earlier terminated pursuant to this ARTICLE 13, shall continue in full force and effect as long as Company continues to Exploit the Compounds or the Products
in accordance with the terms and conditions of this Agreement (the “Term”). The provisions of ARTICLE 1 (Definitions), ARTICLE 11 (Representations, Warranties and Covenants), ARTICLE 12 (Confidentiality), ARTICLE 14 (Dispute
Resolution), ARTICLE 15 (Indemnification) and ARTICLE 16 (Miscellaneous), and Section 13.3 (Termination for Material Breach) and Section 13.6 (HSR Filing; Termination Upon HSR Denial), shall become effective on the Execution Date; the
other provisions of this Agreement shall not become effective until the Effective Date. 
 13.2 Unilateral Termination by Company. Company
shall have the right to terminate this Agreement in its entirety, or on a Product-by-Product basis, at any time after the Execution Date, for any or no reason, upon providing [***] prior written notice to MacroGenics. Notwithstanding the foregoing,
in the event that Company provides such a notice of termination, MacroGenics may, in its sole discretion, reduce the [***] notice period to a period determined by MacroGenics by written notice to Company. 

13.3 Termination for Material Breach. 
  

	 	(a)	 Either Party (the “Terminating Party”) may terminate this Agreement in its entirety, or on a country-by-country and
Product-by-Product basis, in the event the 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	
other Party (the “Breaching Party”) has materially breached this Agreement, and such material breach has not been cured within [***] after receipt of written notice of such
breach by the Breaching Party from the Terminating Party (the “Cure Period”). The written notice describing the alleged material breach shall provide sufficient detail to put the Breaching Party on notice of such material breach.
Any termination of this Agreement pursuant to this Section 13.3(a) shall become effective at the end of the Cure Period, unless the Breaching Party has cured any such material breach prior to the expiration of such Cure Period (or, if such
material breach is reasonably able to be cured within the Cure Period, the Breaching Party has notified the Terminating Party of its plan for curing such and has commenced and sustained its efforts to cure such material breach during the Cure
Period). The right of either Party to terminate this Agreement as provided in this Section 13.3(a) shall not be affected in any way by such Party’s waiver of or failure to take action with respect to any previous breach under this
Agreement. 

  

	 	(b)	If the Parties reasonably and in good faith disagree as to whether there has been a material breach or a cure thereof, the Party that disputes whether there has been a material breach or a cure may contest the
allegation in accordance with ARTICLE 14. Notwithstanding anything to the contrary contained in Section 13.3(a), the Cure Period for any material breach that is the subject of a Dispute will run from the date that written notice was first
provided to the Breaching Party by the Terminating Party through the resolution of such Dispute pursuant to ARTICLE 14 and for [***] thereafter, and it is understood and acknowledged that, during the pendency of a Dispute pursuant this
Section 13.3(b), 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 under this Agreement, except that all payment obligations from one Party to
the other Party under this Agreement which are subject to the Dispute shall be tolled until the resolution of such Dispute in accordance with ARTICLE 14. 

13.4 Termination by Company for Safety Reasons. Company shall have the right to terminate this Agreement, at any time after the Effective Date,
with respect to a Product in the Territory at any time upon providing [***] prior written notice to MacroGenics: (a) if senior executives responsible for Company’s pharmacovigilance and clinical science functions determine in good faith
that the risk/benefit profile of the Product is such that the Product cannot continue to be Developed or administered to patients safely; or (b) upon the occurrence of serious adverse events related to the use of the Product that cause Company
to conclude that the continued use of the Product by patients will result in patients being exposed to a product in which the risks outweigh the benefits. 

13.5 Termination [***]. MacroGenics may terminate this Agreement with respect to a Product (or this Agreement in its entirety if such Product is
the only Product for which this Agreement is applicable), [***] provided, however, MacroGenics acknowledges and agrees that nothing in this Section 13.5 [***] in this Section 13.5 and, provided further that
MacroGenics shall not have the right to terminate if Company: 

  
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	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(a)	[***] any [***] 

  

	 	(b)	[***] MacroGenics, its Affiliates, sublicensees, successors or designers [***] and/or 

  

	 	(c)	either (i) [***] that [***] 

 13.6 HSR Filing; Termination Upon HSR Denial. If Company and
MacroGenics determine that an HSR Filing is necessary, each Party shall, within [***] of the Execution Date (or such later time as may be agreed to in writing by the Parties), file with the United States Federal Trade Commission and the Antitrust
Division of the United States Department of Justice, and/or with equivalent foreign authorities, any HSR Filing required of it under the HSR Act in the reasonable opinion of either Party with respect to the transactions contemplated hereby. Each
Party will use reasonable efforts to do, or cause to be done, all things necessary, proper and advisable to, as promptly as practicable, take all actions necessary to make the filings required of such Party or its Affiliates under the HSR Act. The
Parties shall cooperate with one another to the extent necessary in the preparation of any such HSR Filing. Each Party shall be responsible for its own costs, expenses, and filing fees associated with any HSR Filing; provided, however,
that Company shall be solely responsible for any fees (other than penalties that may be incurred as a result of actions or omissions on the part of MacroGenics) required to be paid to any governmental agency in connection with making any such HSR
Filing. If the Parties make an HSR Filing hereunder, then this Agreement shall terminate (a) at the election of either Party, immediately upon notice to the other Party, if the U.S. Federal Trade Commission or the U.S. Department of Justice, or
an equivalent authority in the European Union, seeks a preliminary injunction under the Antitrust Laws against Company and MacroGenics to enjoin the transactions contemplated by this Agreement; or (b) at the election of either Party,
immediately upon notice to the other Party, in the event that the HSR Clearance Date shall not have occurred on or prior to [***] after the effective date of the HSR Filing. In the event of such termination, this Agreement shall be of no further
force and effect. 
 13.7 Termination for Bankruptcy. 
  

	 	(a)	Either Party may terminate this Agreement in its entirety upon providing written notice to the other Party on or after the time that such other Party makes a general assignment for the benefit of creditors, files an
insolvency petition in bankruptcy, petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve its business or any substantial part of its assets, commences under the laws of any jurisdiction
any proceeding involving its insolvency, bankruptcy, reorganization, adjustment of debt, dissolution, liquidation or any other similar proceeding for the release of financially distressed debtors, or becomes a party to any proceeding or action of
the type described above (each, an “Insolvency Event”), and such proceeding or action remains un-dismissed or un-stayed for a period of more than [***]. 

  
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	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

	 	(b)	 All rights and licenses granted under or pursuant to this Agreement, including, for the avoidance of doubt, the licenses granted to Company
pursuant to Section 3.1, are, and shall otherwise be deemed to be, for purposes of Section 365(n) of Title 11 of the U.S. Code and other similar laws in any jurisdiction outside the U.S. (collectively, the “Bankruptcy
Laws”), licenses of rights to “intellectual property” as defined under the Bankruptcy Laws. Upon the occurrence of any Insolvency Event with respect to a Party (the “Insolvent Party”), the Insolvent Party agrees
that the other Party (the “Non-Insolvent Party”), as licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Bankruptcy Laws. Further, each Party agrees and
acknowledges that all payments hereunder, other than the milestone payments pursuant to Section 9.3, the royalty payments pursuant to Section 9.4, and the payments pursuant to Section 9.9, do not constitute royalties within the
meaning of Section 365(n) of the Bankruptcy Code or relate to licenses of intellectual property hereunder. Each Party shall, during the term of this Agreement, create and maintain current copies or, if not amenable to copying,
detailed descriptions or other appropriate embodiments, to the extent feasible, of all such intellectual property (MacroGenics Technology in the case of MacroGenics and Company Technology in the case of Company). Each Party agrees and acknowledges
that “embodiments” of intellectual property within the meaning of Section 365(n) include, without limitation, laboratory notebooks, cell lines, product samples and inventory, research studies and data, Regulatory Approvals and
Regulatory Materials in each case to the extent related to the Compounds and Products. If (i) a case is commenced during the Term by or against a Party under the Bankruptcy Laws, (ii) this Agreement is rejected as provided for under the
Bankruptcy Laws, and (iii) the Non-Insolvent Party elects to retain its rights hereunder as provided for under the Bankruptcy Laws, then the Insolvent Party (in any capacity, including debtor-in-possession) and its successors and assigns
(including a Title 11 trustee), shall (x) provide to the Non-Insolvent Party immediately upon the Non-Insolvent Party’s written request copies of all such intellectual property (including embodiments thereof) held by the Insolvent Party
and such successors and assigns, or otherwise available to them, and (y) not interfere with the Non-Insolvent Party’s rights under this Agreement, or any related agreements between the Parties, to such intellectual property (including such
embodiments), including any right to obtain such intellectual property (or such embodiments) from another entity, to the extent provided in the Bankruptcy Laws. Whenever the Insolvent Party or any of its successors or assigns provides to the
Non-Insolvent Party any of the intellectual property licensed hereunder (or any embodiment thereof) pursuant to this Section 13.7(b), the Non-Insolvent Party shall have the right to perform the Insolvent Party’s obligations hereunder with
respect to such intellectual property, but neither such provision nor such performance by the Non-Insolvent Party shall release the 

  
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Insolvent Party from liability resulting from rejection of the license or the failure to perform such obligations. All rights, powers and remedies of the Non-Insolvent Party as provided herein
are in addition to and not in substitution for any and all other rights, powers and remedies now or hereafter existing at law or in equity (including the Bankruptcy Laws) in the event of the commencement of a case by or against a Party under the
Bankruptcy Laws. In particular, it is the intention and understanding of the Parties to this Agreement that the rights granted to the Parties under this Section 13.7 are essential to the Parties’ respective businesses and the Parties
acknowledge that damages are not an adequate remedy. The Parties agree that they intend the following rights to extend to the maximum extent permitted by Applicable Law, and to be enforceable under Section 365(n) of Title 11 of the U.S. Code:
(A) the right of access to any intellectual property (including embodiments thereof) of the Insolvent Party, or any Third Party with whom the Insolvent Party contracts to perform an obligation of the Insolvent Party under this Agreement, and,
in the case of the Third Party, which is necessary for the Exploitation of Compounds or Products; and (B) the right to contract directly with any Third Party to complete the contracted work upon failure of the Insolvent Party to comply with its
applicable obligations. 

 13.8 Effects of Termination. All of the following effects of termination are in addition to the other
rights and remedies that may be available to either of the Parties under this Agreement and shall not be construed to limit any such rights or remedies. In the event this Agreement is not terminated in its entirety, but rather is terminated on a
Product-by-Product or country-by-country basis with respect to one or more Products as specified herein (each, a “Terminated Product”) in one or more country(ies) (each, a “Terminated Country”), then,
notwithstanding anything to the contrary contained in Sections 13.8(a) or 13.8(b), the consequences of termination described under this Section 13.8 shall only apply to the Terminated Product in the Terminated Country, and this Agreement shall
remain in full force and effect in accordance with its terms with respect to all Products other than the Terminated Products, and in all countries of the Territory other than the Terminated Countries. 

 

	 	(a)	Consequences of Termination by MacroGenics or Company. In the event of termination of this Agreement by (i) MacroGenics pursuant to Section 13.3, 13.5, 13.7 or Section 16.7 or (ii) Company
pursuant to Section 13.2, Section 13.4 or Section 16.3, the following provisions of this Section 13.8(a) shall apply from and after the effective date of termination (except to the extent otherwise provided in Section
13.8(a)(vi): 

 (i) Without limiting the effect that such termination shall have on any provisions of
this Agreement, other than those provisions that this Agreement expressly provides shall survive such termination, all rights and licenses granted herein to Company shall terminate, and Company shall cease any and all Development, Manufacturing, and
Commercialization activities with respect to the Products (to the extent such activities were being performed using such rights and licenses) as soon as is reasonably practicable under Applicable Law. 

  
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 (ii) All payment obligations hereunder shall terminate, other than those
that are accrued and unpaid as of the effective date of such termination and royalties that become due under Section 9.4 with respect to sales of Reverted Products made by Janssen following the effective date of termination pursuant to
Section 13.8(a)(vii). 
 (iii) MacroGenics shall have a reversion of all rights previously licensed to Company
hereunder for which the relevant licenses have terminated on a fully paid-up and royalty-free basis, itself or with or through an Affiliate or Third Party, to Develop, Manufacture and Commercialize the Products at MacroGenics’ discretion,
provided that any Third Party Obligation arising pursuant to Section 9.10(a) is passed through to MacroGenics.  

(iv) Company hereby grants to MacroGenics, effective as of the effective date of such termination, a non-exclusive,
transferable, fully paid-up, royalty-free, sublicenseable license in the Field in the Territory, under the Company Applied Technology and Company’s right to Joint Inventions and Joint Patents, solely to Exploit any Product that is in active
clinical Development or has been Commercialized by Company at the time of termination (each, a “Reverted Product”); provided, however, that MacroGenics shall reimburse Company for any amounts paid by Company to any
Third Party in connection with MacroGenics’ exercise of such license. 
 (v) At MacroGenics’ written
request, Company shall grant to MacroGenics, effective as of the date of such request, an exclusive, transferable, fully paid-up, royalty free, sublicensable license to use any trademarks owned or Controlled by Company or any of its Affiliates which
are solely used in the Commercialization of Reverted Products in the Territory (excluding any Company house marks). 

(vi) The JSC (if then in existence) or a committee formed by the Parties for purposes of effecting transition of
responsibilities (if the JSC is not then in existence) shall coordinate the wind-down of Company’s efforts under this Agreement and Company, as soon as reasonably practicable after the effective date of such termination, shall provide to
MacroGenics, as applicable and to the extent permitted under any applicable Third Party contract, any material Information, including copies of all Clinical Trial data and results, Controlled by Company to the extent solely relating to the Reverted
Products, including control of, and all Information relating to, the global safety database. Company will reasonably cooperate with MacroGenics to provide a transfer of such material Information. Beginning on the date that notice of termination of
this Agreement is given by MacroGenics pursuant to Section 13.3, Section 13.7 or Section 16.7 or by Company pursuant to Section 13.2, Section 13.4 or Section 16.3, (A) Company shall have no further obligation to
commence or provide funding for any Clinical Trial that has not yet commenced (for purposes of this sentence, “commencement” means the [***]) 

  
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on or before such date of notice of termination of this Agreement; and (B) at MacroGenics’ request, MacroGenics shall have the right, and Company shall cooperate in good faith with
MacroGenics to enable MacroGenics, to commence any such Clinical Trial included in the then-current Global Development Plan prior to the effective date of termination of this Agreement; provided, however, that such cooperation shall
not include any obligation to provide funding for such Clinical Trial. At MacroGenics’ request, Company shall use reasonable efforts to (x) assign to MacroGenics any and all Third Party agreements to which Company or any of its Affiliates
are a party that relate exclusively to the Development, Commercialization and Manufacturing activities conducted in connection with Reverted Products prior to such termination (including agreements relating to the sourcing and Manufacture of a
Reverted Product or, to the extent the First Commercial Sale of a Reverted Product has occurred, for sale, promotion, distribution, or use of such Reverted Product) or, (y) if such assignment is not permitted under the relevant Third Party
agreement: (1) grant to MacroGenics other rights to provide to MacroGenics the benefit of such non-assignable agreement, at MacroGenics’ expense, to the extent permitted under the terms of such non-assignable agreement; or (2) to the
extent not permitted under the terms of such non-assignable agreement, the Parties shall discuss in good faith an alternative solution to enable MacroGenics to receive, at MacroGenics’ expense, the benefit of the terms of such non-assignable
agreement. In the event one or more Reverted Products, or any materials relating to such Reverted Products, are Manufactured by Company or its Affiliate, then, upon the written request of MacroGenics, Company shall supply MacroGenics with such
Reverted Product(s) and/or materials at [***] and for a transitional period to be mutually agreed upon by the Parties and, if necessary, provide technical assistance reasonably necessary to assist MacroGenics in the start-up of Manufacturing of such
Reverted Product(s) and/or materials, and/or obtaining Regulatory Approval of the Reverted Product(s). In addition to the actions contemplated in this Section 13.8(a)(vi) Company shall take such other actions and execute such other instruments,
assignments and documents as reasonably requested by MacroGenics as may be necessary to effect the transfer of rights to such Product(s) hereunder to MacroGenics. 

(vii) Subject to the payment of all amounts required under Section 13.8(a)(ii), Company shall have the right to
sell or otherwise dispose of any inventory of any Reverted Product on hand at the time of such termination or in the process of Manufacturing; provided, however, at MacroGenics’ request, Company shall transfer to MacroGenics any
Product that has not been sold or used [***] following such termination, at a cost [***]. 
 (viii) Company shall
transfer to MacroGenics any and all Regulatory Materials Controlled by Company on the effective date of termination, to the extent such Regulatory Materials relate solely to any Reverted Products, including any INDs, Regulatory Approval Applications
or Regulatory Approvals 

  
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solely related to any Reverted Products. Upon MacroGenics’ request, Company shall make available to MacroGenics any other relevant Information Controlled by Company on the effective date of
termination, to the extent such Information relates to such Regulatory Materials, and shall provide a right of reference to any Regulatory Materials Controlled by Company on the effective date of termination, to the extent such Regulatory Materials
are necessary for MacroGenics or its licensees to develop and commercialize Reverted Products and are not transferred to MacroGenics hereunder. 

(ix) MacroGenics shall have the right to assume all preparation, filing, prosecution, maintenance and enforcement
activities under ARTICLE 10 with respect to MacroGenics Patents as to which Company has assumed the right and authority to prepare, file, prosecute, maintain or enforce. Company will cooperate with MacroGenics and provide MacroGenics with reasonable
assistance with the preparation, filing, prosecution, maintenance, and enforcement activities with respect to such MacroGenics Patents. The step-in rights granted to MacroGenics with respect to Joint Patents under Sections 0, 10.5(b) and 10.7(a)
shall remain in effect, and MacroGenics shall have to the right to enforce the Company Patents, solely to the extent a license is granted under this Section 13.8(a), against Third Party infringers. 

 

	 	(b)	Consequences of Certain Terminations by Company. In the event of termination of this Agreement by Company pursuant to Section 13.3 or Section 13.7, the following provisions of this Section 13.8(b)
shall apply from and after the effective date of termination. 

 (i) Without limiting the effect that
such termination shall have on any provisions of this Agreement, other than those provisions that this Agreement expressly provides shall survive such termination, all rights and licenses granted herein to MacroGenics shall terminate (other than the
license granted to MacroGenics under Section 3.2(c), which shall survive such termination), and MacroGenics shall cease any and all Development, Manufacturing, and Commercialization activities (including any co-promotion activities) with
respect to the Products as soon as is reasonably practicable under Applicable Law. 
 (ii) All payment obligations
hereunder shall continue, including those payment obligations that are accrued and unpaid as of the effective date of such termination, provided that Company may pursue remedies under Section 13.9 and offset damages and costs as provided
in Section 13.9. 
 (iii) Company shall thereafter continue to have all rights previously licensed to Company
hereunder, itself or with a Third Party or through a Third Party sublicensee, to Develop, Manufacture and Commercialize any and all Products at Company’s discretion, in accordance with and subject to the terms and conditions of this Agreement.

  
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 (iv) All licenses granted to Company shall continue in full force and
effect, in accordance with and subject to the terms and conditions of this Agreement, and all rights of MacroGenics with respect to the Co-Promote Option shall cease. 

(v) The JSC (if then in existence) or a committee formed by the Parties for purposes of effecting transition of
responsibilities (if the JSC is not then in existence) shall coordinate the wind-down of MacroGenics’ efforts under this Agreement and MacroGenics, as soon as reasonably practicable after the effective date of such termination, shall provide to
Company, as applicable and to the extent permitted under any applicable Third Party contract, any material Information, including copies of all Clinical Trial data and results, Controlled by MacroGenics that relates solely to the Products.
MacroGenics will cooperate with Company to provide a transfer of such material Information. At Company’s request, MacroGenics shall use reasonable efforts to (x) assign to Company any and all Third Party agreements to which MacroGenics or
any of its Affiliates are a party that relate exclusively to Development, Commercialization and Manufacture of the Products in the Field in the Territory or (y) if such assignment is not permitted under the relevant Third Party agreement:
(1) grant to Company other rights to provide to Company the benefit of such non-assignable agreement, at Company’s expense, to the extent permitted under the terms of such non-assignable agreement; or (2) to the extent not permitted
under the terms of such non-assignable agreement, the Parties shall discuss in good faith an alternative solution to enable Company to receive, at Company’s expense, the benefit of the terms of such non-assignable agreement. In the event one or
more Products, or any materials relating to such Products, are Manufactured by MacroGenics or its Affiliate, then, upon the written request of Company, MacroGenics shall supply Company with such Product(s) and/or materials [***] and for a
transitional period to be mutually agreed upon by the Parties and, if necessary, provide technical assistance reasonably necessary to assist Company in the start-up of Manufacturing of such Product(s) and/or materials, and/or obtaining Regulatory
Approval of such Product(s). In addition to the actions contemplated in this Section 13.8(b), MacroGenics shall take such other actions and execute such other instruments, assignments and documents as reasonably requested by Company as may be
necessary to effect the transfer of rights to such Product(s) hereunder to Company. 
 13.9 Remedies. Except as otherwise explicitly set forth
in this Agreement, termination or expiration of this Agreement shall not relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination or expiration, nor prejudice either Party’s
right to obtain performance of any obligation. Each Party shall be free, pursuant to ARTICLE 14, to seek, without restriction as to the number of times it may seek, damages, costs and remedies that may be available to it under Applicable Law or in
equity and shall be entitled to offset the amount of any damages and costs obtained against the other Party in a final determination under Section 14.3, against any amounts otherwise due to such other Party under this Agreement. 

  
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 13.10 Survival. In the event of termination or expiration of this Agreement, in addition to the
provisions of this Agreement that continue in effect in accordance with their terms, the following provisions of this Agreement shall survive: ARTICLE 1 (Definitions) (as applicable), ARTICLE 12 (Confidentiality), ARTICLE 13 (Term and Termination),
ARTICLE 14 (Dispute Resolution), ARTICLE 15 (Indemnification) (solely as to activities arising during the Term or as to any activities conducted in the course of a Party’s exercise of a license surviving the Term), ARTICLE 16 (Miscellaneous);
Sections 3.2(d), 3.4 (No Implied Licenses), 4.5 (Records), 5.3(a) (Company Responsibilities) (solely with respect to activities undertaken prior to the effective date of expiration or termination of this Agreement), 9.8 (Currency), 9.11 (Taxes),
9.12 (Tax Returns), 9.13 (Audit), 9.14 (Late Payment), 10.1 (Ownership of Inventions), Section 10.2 (Disclosure of Inventions) and 11.4 (No Other Representations or Warranties); and any other provisions of this Agreement that are necessary to
interpret or effectuate the intent of the foregoing provisions. 
 ARTICLE 14 

DISPUTE RESOLUTION 
 14.1 Exclusive
Dispute Resolution Mechanism. The Parties agree that the procedures set forth in this ARTICLE 14 shall be the exclusive mechanism for resolving any dispute, controversy or claim between the Parties that may arise from time to time pursuant
to this Agreement relating to either Party’s rights or obligations hereunder (each, a “Dispute”, and collectively, the “Disputes”) that is not resolved through good faith negotiation between the Parties. For
the avoidance of doubt, this ARTICLE 14 shall not apply to any decision with respect to which a Party has final decision-making authority hereunder. Any Dispute, including Disputes that may involve the parent company, subsidiaries, or affiliates
under common control of any Party, shall be resolved in accordance with this ARTICLE 14. 
 14.2 Resolution by Executive Officers. Except as
otherwise provided in this ARTICLE 14, in the event of any Dispute regarding the construction or interpretation of this Agreement or the rights, duties or liabilities of either Party hereunder, the Parties shall first attempt in good faith to
resolve such Dispute by negotiation and consultation between themselves. In the event that such Dispute is not resolved on such basis within [***] (unless otherwise agreed by the Parties), either Party may, by written notice to the other Party,
refer the Dispute to the Executive Officers for attempted resolution by good faith negotiation within [***] after such notice is received (unless otherwise agreed by the Parties). Each Party may, in its discretion, seek resolution of any and all
Disputes that are not resolved under this Section 14.2 in accordance with Section 14.3. 
 14.3 Arbitration. If the Parties fail to
resolve the Dispute pursuant to Section 14.2, and a Party desires to pursue resolution of the Dispute, the Dispute shall be submitted by either Party for resolution in arbitration pursuant to the then current [***], except where they conflict
with these provisions, in which case these provisions control. The arbitration will be held in [***]. All aspects of the arbitration shall be treated as confidential. 

  
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	 	(a)	Arbitrators. 

 (i) The arbitrators will be chosen from the
[***], unless a candidate not on such panel is approved by both Parties. Each arbitrator shall be a lawyer with at least [***] experience with a law firm or corporate law department of over [***] lawyers or who was a judge of a court of general
jurisdiction. To the extent that the Dispute requires special expertise, the Parties will so inform CPR prior to the beginning of the selection process. 

(ii) The arbitration tribunal shall consist of [***] arbitrators, of whom each Party shall designate one in accordance
with the “screened” appointment procedure provided in CPR Rule 5.4. The chair will be chosen in accordance with CPR Rule 6.4. If, however, the aggregate award sought by the Parties is less than [***] and equitable relief is not sought, a
single arbitrator shall be chosen in accordance with the CPR Rules. 
 (iii) The Parties agree to select the
arbitrator(s) within [***] of initiation of the arbitration. 
  

	 	(b)	Procedures.  

 (i) The hearing will be concluded within
[***] after selection of the arbitrator(s) and the award will be rendered within [***] of the conclusion of the hearing, or of any post-hearing briefing, which briefing will be completed by both sides within
[***] after the conclusion of the hearing. In the event the Parties cannot agree upon a schedule, then the arbitrator(s) shall set the schedule following the time limits set forth above as closely as practical. 

(ii) The hearing will be concluded in [***] or less. Multiple hearing days will be scheduled consecutively to the
greatest extent possible. A transcript of the testimony adduced at the hearing shall be made and shall be made available to each Party. 

(iii) The arbitrator(s) shall be guided, but not bound, by the [***] (“Protocol”). The Parties will
attempt to agree on modes of document disclosure, electronic discovery, witness presentation, etc. within the parameters of the Protocol. If the Parties cannot agree on discovery and presentation issues, the arbitrator(s) shall decide on
presentation modes and provide for discovery within the Protocol, understanding that the Parties contemplate reasonable discovery. 

(iv) The arbitrator(s) shall decide the merits of any Dispute in accordance with the law governing this Agreement,
without application of any principle of conflict of laws that would result in reference to a different law. The arbitrator(s) may not apply principles such as “amiable compositeur” or “natural justice and equity.” 

(v) The arbitrator(s) are expressly empowered to decide dispositive motions in advance of any hearing and shall endeavor
to decide such motions as would a United States District Court Judge sitting in the jurisdiction whose substantive law governs. 

  
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 (vi) The arbitrator(s) shall render a written opinion stating the reasons
upon which the award is based. The Parties consent to the jurisdiction of the United States District Court for the district in which the arbitration is held for the enforcement of these provisions and the entry of judgment on any award rendered
hereunder. Should such court for any reason lack jurisdiction, any court with jurisdiction may act in the same fashion. 
 14.4 Provisional
Remedies. Each Party has the right to seek from the appropriate court provisional remedies such as attachment, preliminary injunction, replevin, etc. to avoid irreparable harm, maintain the status quo, or preserve the subject matter
of the Dispute. [***] does not apply to this Agreement 
 14.5 Confidentiality. Any and all activities conducted under this ARTICLE 14 shall
be deemed Confidential Information of each of the Parties, and shall be subject to ARTICLE 12 above. 
 ARTICLE 15 

INDEMNIFICATION 
 15.1
Indemnification by Company. Company hereby agrees to defend, indemnify and hold harmless MacroGenics and its Affiliates, and each of their respective directors, officers, employees, agents and representatives (each, a “MacroGenics
Indemnitee”) from and against any and all claims, suits, actions, demands, liabilities, expenses and/or losses, including reasonable legal expenses and attorneys’ fees (collectively, the “Losses”), to which any
MacroGenics Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party (each, a “Claim”), to the extent such Losses arise directly or indirectly out of: (a) the practice by
Company or its Affiliate or sublicensee of any license granted to it under this Agreement; (b) the manufacture, use, handling, storage, sale, marketing, export, import or other disposition of any Compound or Product by Company or its Affiliate
or sublicensee; (c) the breach by Company of any warranty, representation, covenant or agreement made by Company in this Agreement or, if MacroGenics exercises the Co-Promote Option, the Co-Promotion Agreement; or (d) the gross negligence,
illegal conduct or willful misconduct (including to the extent such gross negligence, illegal conduct or willful misconduct gives rise to product liability Claims under any legal theory) of Company or its Affiliate or sublicensee, or any officer,
director, employee, agent or representative thereof; except, with respect to each of clauses (a) through (d) above, to the extent such Losses arise directly or indirectly from the negligence, gross negligence, illegal conduct or willful
misconduct of any MacroGenics Indemnitee or the breach by MacroGenics of any warranty, representation, covenant or agreement made by MacroGenics in this Agreement. Notwithstanding the foregoing, this Section 15.1 shall not apply to any Losses
of a MacroGenics Indemnitee that arise during the Co-Funding Term, to the extent such Losses are Commercialization Expenses that are included in MacroGenics’ allocation of the N.A. Profit/Loss. 

  
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 15.2 Indemnification by MacroGenics. MacroGenics hereby agrees to defend, indemnify and hold
harmless Company and its Affiliates and each of their respective directors, officers, employees, agents and representatives (each, a “Company Indemnitee”) from and against any and all Losses to which any Company Indemnitee may
become subject as a result of any Claim to the extent such Losses arise directly or indirectly out of: (a) the practice by MacroGenics or its Affiliate or its licensee (other than Company or its Affiliates or sublicensee) of any retained or
reverted license right under ARTICLE 3 to Develop, Manufacture or Commercialize any Compound or Product pursuant to the terms of this Agreement or, if MacroGenics exercises its Co-Promote Option, any Co-Promotion Agreement; (b) the manufacture,
use, handling, storage, sale or other disposition of any Compound or Product by MacroGenics or its Affiliate or its licensee (other than Company or its Affiliate or sublicensee); (c) the breach by MacroGenics of any warranty, representation,
covenant or agreement made by MacroGenics in this Agreement, or, if MacroGenics exercises the Co-Promote Option, the Co-Promotion Agreement; or (d) the gross negligence, illegal conduct, or willful misconduct (including to the extent such gross
negligence, illegal conduct or willful misconduct gives rise to product liability Claims under any legal theory) of MacroGenics or its Affiliate or its licensee (other than Company or its Affiliate or sublicensee), or any officer, director,
employee, agent or representative thereof; except, with respect to each of clauses (a) through (d) above, to the extent such Losses arise directly or indirectly from the negligence, gross negligence, illegal conduct or willful misconduct
of any Company Indemnitee or the breach by Company of any warranty, representation, covenant or agreement made by Company in this Agreement. Notwithstanding the foregoing, this Section 15.2 shall not apply to any Losses of a Company Indemnitee
that arise during the Co-Funding Term, to the extent such Losses are Commercialization Expenses that are included in Company’s allocation of N.A. Profit/Loss. 

15.3 Indemnification Procedures. 
  

	 	(a)	Notice. Promptly after a MacroGenics Indemnitee or a Company Indemnitee (each, an “Indemnitee”) receives notice of a pending or threatened Claim, such Indemnitee shall give written notice of the
Claim to the Party from whom the Indemnitee is entitled to receive indemnification pursuant to Sections 15.1 or 15.2, as applicable (the “Indemnifying Party”). However, an Indemnitee’s delay in providing or failure to
provide such notice shall not relieve the Indemnifying Party of its indemnification obligations, except to the extent it can demonstrate prejudice due to the delay or lack of notice. 

 

	 	(b)	 Defense. Upon receipt of notice under this Section 15.3 from the Indemnitee, the Indemnifying Party will have the duty to either
compromise or defend, at its own expense and by counsel (reasonably satisfactory to Indemnitee) such Claim. The Indemnifying Party will promptly (and in any event not more than [***] after receipt of the Indemnitee’s original notice) notify the
Indemnitee in writing that it acknowledges its obligation (which acknowledgment shall not be deemed or construed as an admission of liability, either under this ARTICLE 15 or otherwise) to indemnify the Indemnitee with respect to the Claim pursuant
to this ARTICLE 15 and of its intention to compromise or defend such Claim. Once the 

  
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Indemnifying Party gives such notice to the Indemnitee, the Indemnifying Party is not liable to the Indemnitee for the fees of other counsel or any other expenses subsequently incurred by the
Indemnitee in connection with such defense, other than the Indemnitee’s reasonable Third Party expenses related to its investigation and cooperation. As to all Claims as to which the Indemnifying Party has assumed control under this
Section 15.3(b), the Indemnitee shall have the right to employ separate counsel and to participate in the defense of a Claim (as reasonably directed by the Indemnifying Party) at its own expense. 

 

	 	(c)	Cooperation. The Indemnitee will cooperate fully with the Indemnifying Party and its legal representatives in the investigation and defense of any Claim. The Indemnifying Party shall keep the Indemnitee informed
on a reasonable and timely basis as to the status of such Claim (to the extent the Indemnitee is not participating in the defense of such Claim) and conduct the defense of such Claim in a prudent manner. 

 

	 	(d)	Settlement. If an Indemnifying Party assumes the defense of a Claim, no compromise or settlement of such Claim may be effected by the Indemnifying Party without the Indemnitee’s written consent (such consent
not to be unreasonably withheld, delayed or conditioned), unless: (1) there is no finding or admission of any violation of law or any violation of the rights of any Person and no effect on any other claims that may be made against the
Indemnitee; (2) the sole relief provided is monetary damages that are paid in full by the Indemnifying Party; and (3) the Indemnitee’s rights under this Agreement are not adversely affected. If the Indemnifying Party fails to assume
defense of a Claim within a reasonable time, the Indemnitee may settle such Claim on such terms as it deems appropriate with the consent of the Indemnifying Party (such consent not to be unreasonably withheld, delayed or conditioned), and the
Indemnifying Party shall be obligated to indemnify the Indemnitee for such settlement as provided in this ARTICLE 15. 

  

	 	(e)	Product Liability Claims. Solely for purposes of coordinating the defense of any claims of a Third Party involving or that could result in Product Liabilities included in the definition of Global Development
Costs, such claims will be treated as if they were Claims covered by this Section 15.3 and Company shall be deemed to be the “Indemnifying Party” under this Section 15.3 for such claims. 

15.4 Insurance. Each Party shall, at its own expense, procure and maintain during the period commencing on the Execution Date through the period
of Commercialization and for a period of [***] thereafter, insurance policies, including product liability insurance, adequate to cover its obligations hereunder and which are consistent with normal business practices of prudent companies similarly
situated; provided, however, that in no event shall such product liability insurance be written in amounts less than [***] and annual aggregate. All such insurance shall include worldwide coverage. Prior to the initiation of any
Clinical Trial, the Party responsible for such Clinical Trial shall secure, and maintain in full force and effect, clinical trial insurance as required by Applicable Law in those territories where such Clinical Trial shall be conducted.

  
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Upon request, each Party shall provide the other Party with a certificate of insurance evidencing the coverage required under this Section 15.4. Such insurance shall not be construed to
create a limit of a Party’s liability with respect to its indemnification obligations under this ARTICLE 15. Each Party shall provide the other Party with prompt written notice of cancellation, non-renewal or material change in such insurance
that could materially adversely affect the rights of such other Party hereunder, and shall provide such notice within [***] after any such cancellation, non-renewal or material change. The Parties acknowledge
and agree that Company may meet its obligations under this Section 15.4 through self-insurance. 
 15.5 Limitation of Liability. EXCEPT
TO THE EXTENT INCLUDED IN LOSSES RESULTING FROM A THIRD PARTY CLAIM FOR WHICH ONE PARTY IS OBLIGATED TO INDEMNIFY THE OTHER PARTY (OR AN INDEMNITEE OF SUCH OTHER PARTY) PURSUANT TO THIS ARTICLE 15 AND ANY BREACH OF ARTICLE 12 (CONFIDENTIALITY), IN
NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY (OR THE OTHER PARTY’S AFFILIATES OR SUBLICENSEES) IN CONNECTION WITH THIS AGREEMENT FOR LOST REVENUE, LOST PROFITS, LOST SAVINGS, LOSS OF USE, DAMAGE TO GOODWILL, OR ANY CONSEQUENTIAL,
INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR INDIRECT DAMAGES UNDER ANY THEORY, INCLUDING CONTRACT, NEGLIGENCE, OR STRICT LIABILITY, EVEN IF THAT PARTY HAS BEEN PLACED ON NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. 

ARTICLE 16 

MISCELLANEOUS 
 16.1 Notices. All
notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given on the date delivered, if delivered personally, or on the next Business Day after being sent by reputable overnight
courier (with delivery tracking provided, signature required and delivery prepaid), in each case, to the Parties at the following addresses, or on the date sent and confirmed by electronic transmission to the telecopier number specified below (or at
such other address or telecopier number for a Party as shall be specified by notice given in accordance with this Section 16.1). 
  

	 	(a)	If to Company: 

 Janssen Biotech, Inc. 

800/850 Ridgeview Drive 

Horsham, PA 19044 

Attention: [***] 

Fax: [***] 

with copies to: 

Johnson & Johnson Law Department 

One Johnson & Johnson Plaza 

New Brunswick, NJ 08933 

Attention: [***] 
 Fax: [***]

  
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	 	(b)	If to MacroGenics: 

 MacroGenics, Inc. 

9640 Medical Center Drive 

Rockville, MD 20850 
 Attention:
[***] 
 with copies to: 

MacroGenics, Inc. 
 9640
Medical Center Drive 
 Rockville, MD 20850 

Attention: [***] 
 16.2 Governing
Law. This Agreement and all disputes arising out of or related to this Agreement or any breach hereof shall be governed by and construed under the laws of the State of [***], without giving effect to any choice of law principles that would
require the application of the laws of a different state. 
 16.3 Change of Control of MacroGenics. 

 

	 	(a)	MacroGenics (or its successor) shall provide notice to Company of any Change of Control of MacroGenics within [***] after the date upon which the Change of Control closes or otherwise becomes effective.

  

	 	(b)	On or before the date that is [***] after the date upon which a Change of Control of MacroGenics closes or otherwise becomes effective, Company may terminate this Agreement in its entirety; or, in Company’s sole
and absolute discretion, Company may require (and MacroGenics, or its successor, shall perform, as applicable) any one or more of the following actions: (1) the Parties shall dissolve the JSC and after such dissolution Company shall solely have
all rights (including all decision-making rights) and shall perform all activities assigned by this Agreement to the JSC; or (2) MacroGenics and its successor shall adopt reasonable written procedures, approved by Company, to prevent disclosure
of Company’s Confidential Information. 

 16.4 Assignment. Neither Party may assign or transfer this Agreement or any
rights or obligations hereunder without the prior written consent of the other Party (it being understood that neither a merger in respect of which such Party is a constituent corporation or entity, nor a change in the beneficial ownership of the
voting securities of such Party, shall be deemed to be an assignment for purposes of this Section 16.4), except that a Party may make such an assignment 

  
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without the other Party’s consent to (a) an Affiliate or (b) subject to Section 16.3 above, an acquirer of all or substantially all of the property and assets of the Party in
a sale of assets or other similar transaction. Any successor or assignee of rights and/or obligations permitted hereunder shall, in writing to the other Party, expressly assume performance of such rights and/or obligations. Any permitted assignment
shall be binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 16.4 shall be null, void and of no legal effect. 

16.5 Designation of Affiliates. Each Party may discharge any obligation and exercise any right hereunder through delegation of its obligations
or rights to any of its Affiliates. Each Party hereby guarantees the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in connection
with such performance. Any breach by a Party’s Affiliate of any of such Party’s obligations under this Agreement shall be deemed a breach by such Party, and the other Party may proceed directly against such Party without any obligation to
first proceed against such Party’s Affiliate. 
 16.6 Relationship of the Parties. It is expressly agreed that MacroGenics, on the one
hand, and Company, on the other hand, are independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency. Neither MacroGenics nor Company shall have the authority to make any
statements, representations or commitments of any kind, or to take any action which shall be binding on the other, without the prior written consent of the other Party to do so. All individuals employed by a Party shall be employees of that Party
and not of the other Party and all costs and obligations incurred by reason of such employment shall be for the account and expense of such Party. 

16.7 Force Majeure. Both Parties shall be excused from the performance of their obligations under this Agreement to the extent that such
performance is prevented by Force Majeure and the nonperforming Party promptly provides notice of such Force Majeure circumstances to the other Party. Such excuse shall be continued so long as the condition constituting Force Majeure continues and
the nonperforming Party takes reasonable efforts to remove the condition. Notwithstanding the foregoing, a Party shall not be excused from making payments owed hereunder because of a Force Majeure affecting such Party. If a Force Majeure persists
for more than [***], then the Parties shall discuss in good faith the modification of the Parties’ obligations under this Agreement in order to mitigate the delays caused by such Force Majeure. In the event a Party is prevented from performing
its obligations under this Agreement due to Force Majeure for more than [***] according to this Section 16.7, the other Party shall have the right to terminate this Agreement upon [***] notice after the expiration of such period. A termination
under this Section 16.7 by either Party shall be treated as a termination under Section 13.3 above and the corresponding provisions for termination under Section 13.3 shall apply except to the extent the affected Party is prevented
from performing due to the Force Majeure. 
 16.8 Entire Agreement; Amendments. This Agreement, including the Exhibits and Schedules hereto,
sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties with respect to the subject matter hereof and supersedes, as of the
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and contemporaneous agreements and understandings between the Parties with respect to the subject matter hereof, including the Prior CDA. There are no covenants, promises, agreements, warranties,
representations, conditions or understandings, either oral or written, between the Parties other than as are set forth herein and therein. 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. In the event of any inconsistency between the body of this Agreement and either any Exhibits or Schedules to this Agreement or any subsequent agreements ancillary to this
Agreement, unless otherwise express stated to the contrary in such Exhibit, Schedule or ancillary agreement, the terms contained in this Agreement shall control. 

16.9 Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable by any court of competent
jurisdiction from which no appeal can be or is taken, the provision shall be considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make good faith efforts to replace any invalid
or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the Parties when entering this Agreement may be realized. 

16.10 English Language. This Agreement shall be written in and executed in, and all other communications under or in connection with this
Agreement shall be in, the English language. Any translation into any other language shall not be an official version hereof or thereof, and in the event of any conflict in interpretation between the English version and such translation, the English
version shall control. 
 16.11 Waiver and Non-Exclusion of Remedies. Any term or condition of this Agreement may be waived at any time
by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. The waiver by either Party of any right
hereunder or of the failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise. The rights and
remedies provided herein are cumulative and do not exclude any other right or remedy provided by Applicable Law or otherwise available except as expressly set forth herein. 

16.12 Further Assurance. Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments and do
and cause to be done such further acts and things, including the filing of such assignments, agreements, documents, and instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out
more effectively the provisions and purposes hereof. 
 16.13 Headings. The headings of each Article and Section in this Agreement have been
inserted for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section. 

16.14 Construction. Whenever this Agreement refers to a number of days without using a term otherwise defined herein, such number refers to
calendar days. Except where the context otherwise requires, (a) wherever used, the singular shall include the plural, the plural shall include 

  
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the singular; (b) the use of any gender shall be applicable to all genders; (c) the terms “including,” “include,” “includes” or “for example”
shall not limit the generality of any description preceding such term and, as used herein, shall have the same meaning as “including, but not limited to,” and/or “including, without limitation”; (d) the words
“herein”, “hereof” and hereunder”, and words of similar import, refer to this Agreement in its entirety and not to any particular provision hereof; (d) the word “or” has the inclusive meaning that is typically
associated with the phrase “and/or”; (e) the word “will” means “shall”; (f) if a period of time is specified and dates from a given day or Business Day, or the day or Business Day of an act or event, it is to
be calculated exclusive of that day or Business Day; (g) “Dollar”, “USD” or “$” means U.S. Dollars; (h) references to a particular Person include such Person’s successors and assigns to the extent not
prohibited by this Agreement; (i) a capitalized term not defined herein but reflecting a different part of speech than a capitalized term which is defined herein shall be interpreted in a correlative manner; and (j) any definition of or
reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein). The language of this Agreement shall be deemed to be the language mutually chosen by the Parties and no rule of strict construction shall be applied against either Party. Each Party
represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof. 

16.15 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This Agreement may be executed by .pdf or other electronically transmitted signatures and such signatures shall be deemed to bind each Party as if they were the original signatures. 

SIGNATURE PAGE FOLLOWS 

  
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 Execution Version 

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date(s) set forth below. 

 

			
	Janssen Biotech, Inc.
		
	By:		 /s/ Scott White

	Name:		Scott White
	Title:		Vice President, North America Oncology
	Date:		December 19, 2014
	
	MacroGenics, Inc.
		
	By:		 /s/ Scott Koenig, M.D., Ph.D.

	Name:		Scott Koenig, M.D., Ph.D.
	Title:		President and CEO
	Date:		December 19, 2014

  

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 Execution Version 

EXHIBIT A 

Commercialization Expenses 

“Advertising and Market Research Expenses” means all Third Party Expenses related to: (a) conducting and monitoring
professional and consumer appraisals of the [***] in the Northern American Territory, such as market share services (e.g., IMS data), pricing analysis, special research testing and focus groups; and (b) advertising and promotion of the Initial
Product in the Northern American Territory [***] associated with Product advertising. 
 “Commercialization Expenses”
means those expenses incurred by either Party (as detailed below) for the purpose of, and directly and specifically attributable to, the Commercialization of the Initial Product in the Northern American Territory, to the extent such expenses are
incurred by either Party or for such Party’s account and are: (i) [***] Expenses, (ii) any fees per-Detail paid to MacroGenics pursuant to the Co-Promotion Agreement, (iii) [***] (xiii) any losses, damages, fees, costs and
other liabilities associated with [***] arising (except to the extent one of the Parties is solely responsible [***] provided, however, that any such expenses incurred by MacroGenics shall be deemed to be Commercialization Expenses
only to the extent that MacroGenics is permitted to conduct the underlying activity pursuant to the Agreement or the Co-Promotion Agreement or to the extent that the Parties mutually agree that MacroGenics may conduct the underlying activity. For
purposes of clarity [***]. 
 Commercialization Expenses shall not include: (a) any Development expenses including [***] in the Northern American
Territory; [***]. In addition, there shall be no double counting of any expense (or deduction from Net Sales) that could fall within multiple categories of Commercialization Expenses. 

“Company Detailing Expenses” means Selling Costs incurred by a Party in performance of Details, where such Selling Costs
shall be calculated on the basis of [***]. 
 “Cost Per PDE” means the [***]. 

“Distribution Expenses” means [***] of Net Sales of the Initial Product in the Northern American Territory. It is understood
that such amount shall be deemed to cover all Third Party Expenses and FTE Costs identifiable to the distribution of the Initial Product in the Northern American Territory, [***]. 

“EAP Expenses” means Third Party Expenses and FTE Costs to conduct early access programs, named patient programs, and
compassionate use programs for the [***] in the Northern American Territory. 
 “Education Expenses” means all Third Party
Expenses specifically incurred to educate health care professionals licensed to practice in the Northern American Territory with respect to the [***] in the Northern American Territory through any means not covered in the definition of
“Advertising and Marketing Research Expenses”, but including [***] 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 

“Manufacturing Expenses” means, with respect to the Initial Product, the reasonable and necessary internal and Third Party
invoiced costs, determined in accordance with GAAP and the terms and conditions of this Agreement, incurred in Manufacturing or acquisition of the Initial Product for sale in the Northern American Territory. Manufacturing costs and acquisition costs
are comprised of Standard Cost of Goods Manufactured, Cost Variances and Other Costs Not Included in Standard, where: 
  

	 	(a)	“Standard Cost of Goods Manufactured” are budgeted unit costs established to facilitate inventory evaluation, planning and budgetary control as well as to motivate optimal productivity and efficiency,
including [***] 

  

	 	(b)	“Cost Variances” are actual costs of manufacturing versus Standard Cost of Goods Manufactured and include [***]; and 

 

	 	(c)	“Other Costs Not Included in Standard” are actual costs of manufacturing which are incurred in the normal course of business but are not included in the Standard Cost of Goods Manufactured including
[***] 

 For clarity, royalty payments due to MacroGenics under this Agreement shall not be included in Manufacturing Expenses. 

“Marketing Expenses” means the sum of Marketing Management Expenses, Advertising and Market Research Expenses and Education
Expenses. 
 “Marketing Management Expenses” means Commercial FTE Costs of either Party arising from the management of
Commercialization activities for the [***] provided that, in each case, such costs may be allocated to the [***] within and across Company’s operating units and, provided further, that such allocation is made no less
favorable to the [***] than to the internal allocation to Company’s other products. 
 “Medical Affairs Expenses”
means (a) Third Party Expenses and FTE Costs reasonably necessary and identifiable to the [***] incurred with respect to: medical and scientific information and response [***] 

“Other Costs” means including both product costs and administrative costs that are [***] excluding funding allocated [***]
(to the extent such [***], provided that, if either [***] Commercialization of the [***], then the finance teams of the Parties will align on the inclusion and the appropriate allocation methodology for such [***] legal costs directly related
to, and specifically attributable to, [***] 
 “PDE” means a primary detailing equivalent, [***] provided,
however, that, prior to the First Commercial Sale of the Initial Product in the Northern American Territory, the JSC shall determine how to adjust the value of [***]. 

“Phase 4 Trial Expenses” means all Third Party Expenses incurred for the Northern American Territory by Company related to a
Phase 4 Trial for the Initial Product in the Northern American Territory, including expenses arising from: (a) the activities related to the performance 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

of the Phase 4 Trial; (b) Manufacturing Expenses for Product used in connection with such Phase 4 Trial; (c) preparation, filing, and maintenance of related Regulatory Documentation;
and (d) any Product Liabilities relating to a Product being used in the course of such Phase 4 Trial, provided that [***] and shall be treated as the responsibility of such [***], provided that Phase 4 Trial Expenses shall not
include expenses relating to: [***] Phase 4 Trials which address [***] requirements for a [***] in which there are [***] any Phase 4 Trial intended [***] For purposes of clarity, Phase 4 Trial Expenses shall not include [***] for Phase 4 Trials but
shall include the costs for [***]. 
 “Recall Expenses” means Third Party Expenses and FTE Costs directly associated with
notification, retrieval and return of the Initial Product in the Northern American Territory, destruction of such returned Initial Product, replacement Initial Product and distribution of the replacement Initial Product, in each case that are
incurred with respect to a recall conducted in accordance with Section 5.4 of the Agreement, provided that the foregoing Recall Expenses are limited to recalls that are not caused by the gross negligence, illegal conduct or willful
misconduct of a Party. 
 “Sales Rep PDE Total” means the total number of PDEs that one full time equivalent Sales Rep FTE
is planned to deliver in a Calendar Year, which number shall be approved by the JSC prior to the beginning of each Calendar Year. 

“Sales Rep FTE” means [***] hours of work devoted to or in direct support of Detailing the Initial Product in the Northern
American Territory that is carried out by (a) one or more qualified employees or contractors or consultants of Company or its Affiliates or (b) one or more qualified employees of MacroGenics or its Affiliates, [***]. 

“Sales Rep FTE Rate” means a rate of [***] per Sales Rep FTE per Calendar Year (prorated for the period beginning on the
Effective Date and ending on the last day of the first Calendar Year of the Term); provided, however, that such rate shall be increased or decreased annually beginning on January 4, 2016 by the [***]. The Sales Rep FTE Rate is
“fully burdened” and covers employee salaries, benefits, travel and other costs. 
 “Selling Costs” means the
total number of PDEs delivered by or on behalf of a Party multiplied by the Cost Per PDE. 
 “Third Party Obligation
Expenses” means Third Party Obligations incurred by a Party with respect to the Initial Product for the Northern American Territory, provided that, with respect to any Third Party Obligation that is not specifically allocated to the
Initial Product and/or the Northern American Territory, Company shall use a reasonable method to allocate a portion of such Third Party Obligation to the Initial Product in the Northern American Territory for purposes of determining the Third Party
Obligation Expenses. 
 Nothing in this Exhibit A is intended to modify or alter MacroGenics’ rights or obligations, or to grant additional
rights to MacroGenics, to perform Development or Commercialization activities pursuant to the Agreement. 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 

EXHIBIT B 
 Global
Development Plan 
 *** 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

EXHIBIT C 
 MacroGenics
Patents 
  

					
	 Title
	 	 Pending Application

Number
	 	 Foreign Rights

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

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

EXHIBIT D 
 MGD011

 [***] 
 [***] 

[***] 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

EXHIBIT E 
 J&J
Universal Calendar 
  
  
 

 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

EXHIBIT F 
 Form of Press
Release 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

 
 

 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

 
 

 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

 
 

 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

	 	An unredacted version of this exhibit has been filed separately with the Commission. 

 Execution Version 
  

SCHEDULE 7.1 

MacroGenics’ Estimated, Non-Binding Manufacturing Costs 

Estimated fully burdened manufacturing cost for single clinical production lot of MGD011: 

 

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

 [***] 
 This estimate is based
on expanded capacity that MacroGenics will be creating over [***]. Since production under the additional capacity will be a new circumstance, this estimate is still subject to change. 

  

	*** =	Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted version of this exhibit has been filed separately with the Commission.EX-10.26

 Exhibit 10.26 

Execution Version 

STOCK PURCHASE AGREEMENT 

By and Between 

JOHNSON & JOHNSON INNOVATION-JJDC, INC. 

AND 
 MACROGENICS, INC.

 Dated as of December 19, 2014 

 TABLE OF CONTENTS 

 

									
	 	 	  	  	 	  	Page	 
	 1.
	 	 Definitions
	  	 	1	  
				
		 	 1.1
	  	 Defined Terms
	  	 	1	  
				
		 	 1.2
	  	 Additional Defined Terms
	  	 	4	  
			
	 2.
	 	 Purchase and Sale of Common Stock
	  	 	5	  
			
	 3.
	 	 Closing Date; Deliveries
	  	 	5	  
				
		 	 3.1
	  	 Closing Date
	  	 	5	  
				
		 	 3.2
	  	 Deliveries
	  	 	5	  
			
	 4.
	 	 Representations and Warranties of the Company
	  	 	6	  
				
		 	 4.1
	  	 Organization, Good Standing and Qualification
	  	 	6	  
				
		 	 4.2
	  	 Capitalization and Voting Rights
	  	 	6	  
				
		 	 4.3
	  	 Subsidiaries
	  	 	7	  
				
		 	 4.4
	  	 Authorization
	  	 	7	  
				
		 	 4.5
	  	 No Defaults
	  	 	8	  
				
		 	 4.6
	  	 No Conflicts
	  	 	8	  
				
		 	 4.7
	  	 No Governmental Authority or Third Party Consents
	  	 	8	  
				
		 	 4.8
	  	 Valid Issuance of Shares
	  	 	9	  
				
		 	 4.9
	  	 Litigation
	  	 	9	  
				
		 	 4.10
	  	 Licenses and Other Rights; Compliance with Laws
	  	 	9	  
				
		 	 4.11
	  	 Company SEC Documents; Financial Statements; Nasdaq Stock Market
	  	 	9	  
				
		 	 4.12
	  	 Absence of Certain Changes
	  	 	11	  
				
		 	 4.13
	  	 Offering
	  	 	11	  
				
		 	 4.14
	  	 No Integration
	  	 	11	  
				
		 	 4.15
	  	 Brokers’ or Finders’ Fees
	  	 	12	  
				
		 	 4.16
	  	 Investment Company
	  	 	12	  
				
		 	 4.17
	  	 No General Solicitation
	  	 	12	  
				
		 	 4.18
	  	 Foreign Corrupt Practices
	  	 	12	  
				
		 	 4.19
	  	 Regulation M Compliance.
	  	 	12	  
				
		 	 4.20
	  	 Office of Foreign Assets Control
	  	 	12	  
				
		 	 4.21
	  	 Intellectual Property
	  	 	12	  
				
		 	 4.22
	  	 Full Disclosure
	  	 	13	  

									
			
	 5.
		 Representations and Warranties of the Investor
		 	13	  
				
			 5.1
		 Organization; Good Standing
		 	13	  
				
			 5.2
		 Authorization
		 	14	  
				
			 5.3
		 No Conflicts
		 	14	  
				
			 5.4
		 No Governmental Authority or Third Party Consents
		 	14	  
				
			 5.5
		 Purchase Entirely for Own Account
		 	14	  
				
			 5.6
		 Disclosure of Information
		 	14	  
				
			 5.7
		 Investment Experience and Accredited Investor Status
		 	15	  
				
			 5.8
		 Acquiring Person
		 	15	  
				
			 5.9
		 Restricted Securities
		 	15	  
				
			 5.10
		 Legends
		 	15	  
				
			 5.11
		 Financial Assurances
		 	15	  
				
			 5.12
		 Stock Ownership
		 	15	  
			
	 6.
		 Investor’s Conditions to Closing
		 	16	  
				
			 6.1
		 Representations and Warranties
		 	16	  
				
			 6.2
		 Representations and Warranties in the Collaboration Agreement
		 	16	  
				
			 6.3
		 Covenants
		 	16	  
				
			 6.4
		 Investor Agreement
		 	16	  
				
			 6.5
		 Collaboration Agreement
		 	16	  
				
			 6.6
		 No Material Adverse Effect
		 	16	  
				
			 6.7
		 Listing
		 	16	  
			
	 7.
		 Company’s Conditions to Closing
		 	17	  
				
			 7.1
		 Representations and Warranties
		 	17	  
				
			 7.2
		 Covenants
		 	17	  
				
			 7.3
		 Investor Agreement
		 	17	  
				
			 7.4
		 Collaboration Agreement
		 	17	  
			
	 8.
		 Mutual Conditions to Closing
		 	17	  
				
			 8.1
		 HSR Act and Other Qualifications
		 	17	  
				
			 8.2
		 Absence of Litigation
		 	17	  
				
			 8.3
		 No Prohibition
		 	18	  
			
	 9.
		 Termination
		 	18	  
				
			 9.1
		 Ability to Terminate
		 	18	  
				
			 9.2
		 Effect of Termination
		 	18	  

									
			
	10.		 Additional Covenants and Agreements
		 	19	  
				
			 10.1
		 Market Listing
		 	19	  
				
			 10.2
		 Notification under the HSR Act
		 	19	  
				
			 10.3
		 Assistance and Cooperation
		 	20	  
				
			 10.4
		 Form D; Blue Sky Filings
		 	20	  
				
			 10.5
		 Legend Removal
		 	20	  
				
			 10.6
		 Conduct of Business
		 	21	  
			
	11.		 Miscellaneous
		 	21	  
				
			 11.1
		 Governing Law; Submission to Jurisdiction
		 	21	  
				
			 11.2
		 Waiver
		 	22	  
				
			 11.3
		 Notices
		 	22	  
				
			 11.4
		 Entire Agreement
		 	22	  
				
			 11.5
		 Amendments
		 	22	  
				
			 11.6
		 Headings; Nouns and Pronouns; Section References
		 	22	  
				
			 11.7
		 Severability
		 	22	  
				
			 11.8
		 Assignment
		 	23	  
				
			 11.9
		 Successors and Assigns
		 	23	  
				
			 11.10
		 Counterparts
		 	23	  
				
			 11.11
		 Third Party Beneficiaries
		 	23	  
				
			 11.12
		 No Strict Construction
		 	23	  
				
			 11.13
		 Survival of Warranties
		 	23	  
				
			 11.14
		 Remedies
		 	23	  
				
			 11.15
		 Expenses
		 	24	  
				
			 11.16
		 No Publicity
		 	24	  
				
			 11.17
		 Limitation of Liability
		 	24	  
		
	 Exhibit A – Form of Investor Agreement
				
	 Exhibit B – Notices
				

 STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of December 19, 2014, by and between Johnson &
Johnson Innovation-JJDC, Inc. (the “Investor”), a New Jersey corporation with its principal place of business at 410 George Street, New Brunswick, New Jersey 08901, and MacroGenics, Inc. (the “Company”), a Delaware
corporation, with its principal place of business at 9640 Medical Center Drive, Rockville, MD 20850. 
 WHEREAS, pursuant to the terms and
subject to the conditions set forth in this Agreement, the Company desires to issue and sell to the Investor, and the Investor desires to subscribe for and purchase from the Company, certain shares of common stock, par value $0.01 per share, of the
Company (the “Common Stock”); and 
 WHEREAS, simultaneously with the execution of this Agreement, the Company and Janssen
Biotech, Inc. (“Janssen”), an Affiliate of the Investor, are entering into the Collaboration Agreement. 
 NOW, THEREFORE,
in consideration of the following mutual promises and obligations, and for good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the Investor and the Company agree as follows: 

1. Definitions. 
 1.1
Defined Terms. When used in this Agreement, the following terms shall have the respective meanings specified therefor below: 

“Affiliate” shall mean, with respect to any Person, another Person that controls, is controlled by or is under common control
with such Person; provided, that with respect to the Investor, “Affiliate” shall mean the Investor’s subsidiaries that are wholly-owned directly or indirectly, by the Investor and any Person that wholly-owns, directly or
indirectly, the Investor. A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of
voting securities, by contract or otherwise. Without limiting the generality of the foregoing, a Person shall be deemed to control another Person if any of the following conditions is met: (i) in the case of corporate entities, direct or
indirect ownership of more than fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (ii) in the case of non-corporate entities, direct or indirect ownership of more than fifty percent
(50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. For the purposes of this Agreement, in no event shall the Investor or any of its Affiliates be deemed Affiliates of the Company or
any of its Affiliates, nor shall the Company or any of its Affiliates be deemed Affiliates of the Investor or any of its Affiliates. 

“Agreement” shall have the meaning set forth in the Preamble, including all Exhibits attached hereto. 

 “Business Day” shall mean a day other than Saturday, Sunday or any other day
that is designated as a J&J holiday in the J&J Universal Calendar (a copy of which for the years 2014 and 2015 is attached as Exhibit E to the Collaboration Agreement and a copy of which prior to the beginning of each such year for
succeeding years shall be provided to the Company). 
 “Collaboration Agreement” shall mean the Collaboration and License
Agreement, of even date herewith, between Janssen and the Company. 
 “Collaboration Assets” shall mean the Compound and
any of the Company’s assets and Intellectual Property rights related to the Products or the Compound, each as defined in the Collaboration Agreement. 

“Collaboration Material Adverse Effect” shall mean any effect that, individually or when taken together with all other
Effects, has had, or would reasonably be expected to have, (i) a material adverse effect on the Collaboration Assets, taken as a whole, or (ii) a material adverse effect on the Company’s ability to perform its obligations under the
Collaboration Agreement. 
 “DOJ” means the U.S. Department of Justice. 

“Effect” shall have the meaning set forth in the definition of “Material Adverse Effect.” 

“FTC” means the U.S. Federal Trade Commission. 

“Governmental Authority” shall mean any court, agency, authority, department, regulatory body or other instrumentality of any
government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or country or any supranational organization of which any such country is a member. 

“Intellectual Property” shall mean trademarks, trade names, trade dress, service marks, copyrights, and similar rights
(including registrations and applications to register or renew the registration of any of the foregoing), patents and patent applications, trade secrets, and any other similar intellectual property rights. 

“Intellectual Property License” shall mean any license, permit, authorization, approval, contract or consent granted, issued
by or with any Person relating to the use of Intellectual Property. 
 “Investor Agreement” shall mean that certain
Investor Agreement between the Investor and the Company, to be dated as of the Closing Date, in substantially the form of Exhibit A attached hereto, as the same may be amended from time to time. 

“Law” or “Laws” shall mean all laws, statutes, rules, regulations, orders, judgments, injunctions and/or
ordinances of any Governmental Authority. 

  
 2 

 “Material Adverse Effect” shall mean any change, event or occurrence (each, an
“Effect”) that, individually or when taken together with all other Effects, has had, or would reasonably be expected to have, (i) a material adverse effect on the business, financial condition, assets or results of operations
of the Company and its subsidiaries, taken as a whole, or (ii) a material adverse effect on the Company’s ability to perform its obligations, or consummate the Transaction, in accordance with the terms of this Agreement, except in the case
of (i) to the extent that any such Effect results from or arises out of: (A) changes in conditions in the United States or global economy or capital or financial markets generally, including changes in interest or exchange rates,
(B) changes in general legal, regulatory, political, economic or business conditions or changes in generally accepted accounting principles in the United States or interpretations thereof, (C) acts of war, sabotage or terrorism, or any
escalation or worsening of any such acts of war, sabotage or terrorism, (D) earthquakes, hurricanes, floods or other natural disasters, (E) the announcement of this Agreement or the Transaction, (F) any change in the Company’s
stock price or trading volume or any failure to meet internal projections or forecasts or published revenue or earnings projections of industry analysts (provided that the underlying events giving rise to any such change shall not be excluded),
(G) any breach, violation or non-performance by the Investor or any of its Affiliates under the Collaboration Agreement, provided, however, that the Effects excluded in clauses (A), (B), (C) and (D) shall only be
excluded to the extent such Effects are not disproportionately adverse on the Company and its subsidiaries as compared to other companies operating in the Company’s industry. 

“Organizational Documents” shall mean (i) the Restated Certificate of Incorporation of the Company, as amended through
the date of this Agreement and (ii) the Amended and Restated Bylaws of the Company, as amended through the date of this Agreement. 

“Per Share Purchase Price” shall mean $39.00; provided, however, that in the event of any stock dividend, stock
split, combination of shares, recapitalization or other similar change in the capital structure of the Company after the date hereof and on or prior to the Closing which affects or relates to the Common Stock, the Per Share Purchase Price shall be
appropriately adjusted. 
 “Person” shall mean any individual, partnership, limited liability company, firm, corporation,
trust, unincorporated organization, government or any department or agency thereof or other entity, as well as any syndicate or group that would be deemed to be a Person under Section 13(d)(3) of the Exchange Act. 

“Third Party” shall mean any Person (other than a Governmental Authority) other than the Investor, the Company or any
Affiliate of the Investor or the Company. 
 “Trading Market” means The Nasdaq Stock Market. 

“Transaction” means the issuance and sale of the Shares by the Company, and the purchase of the Shares by the Investor, in
accordance with the terms hereof. 
 “Transaction Agreements” shall mean this Agreement and the Investor Agreement. 

  
 3 

 1.2 Additional Defined Terms. In addition to the terms defined in Section 1.1, the
following terms shall have the respective meanings assigned thereto in the sections indicated below: 
  

			
	 Defined Term
	  	 Section

	Aggregate Purchase Price	  	Section 2
		
	Closing	  	Section 3.1
		
	Closing Date	  	Section 3.1
		
	Common Stock	  	Preamble
		
	Company	  	Preamble
		
	Company Rights	  	Section 4.21(b)
		
	Company SEC Documents	  	Section 4.11(a)
		
	Exchange Act	  	Section 4.11(a)
		
	GAAP	  	Section 4.11(c)
		
	HSR Act	  	Section 4.7
		
	Investor	  	Preamble
		
	LAS	  	Section 4.7
		
	Permits	  	Section 4.10
		
	Proprietary Rights	  	Section 4.21(b)
		
	Rule 144	  	Section 5.9
		
	SEC	  	Section 4.7
		
	Securities Act	  	Section 4.11(a)
		
	Shares	  	Section 2
		
	Subsidiaries	  	Section 4.3
		
	Termination Date	  	Section 9.1(b)
		
	Transfer Agent	  	Section 10.5(c)

  
 4 

 2. Purchase and Sale of Common Stock. Subject to the terms and conditions of this
Agreement, at the Closing, the Company shall issue and sell to the Investor, free and clear of all liens, other than any liens arising as a result of any action by the Investor, and the Investor shall purchase from the Company, a number of shares of
Common Stock (the “Shares”) equal to the amount obtained by dividing the aggregate purchase price of US $75,000,000.00 (the “Aggregate Purchase Price”) by the Per Share Purchase Price. 

3. Closing Date; Deliveries. 

3.1 Closing Date. Subject to the satisfaction or waiver of all the conditions to the Closing set forth in Sections 6, 7 and 8 hereof,
the closing of the purchase and sale of the Shares hereunder (the “Closing”) shall be held on the third (3rd) Business Day after the satisfaction of the conditions to Closing
set forth in Sections 6, 7 and 8 (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction at such time of such conditions), at 9:00 a.m. Boston time, at the offices of Wilmer Cutler
Pickering Hale and Dorr LLP, 60 State Street, Boston, Massachusetts 02109, or at such other time, date and location as the parties may agree. The date the Closing occurs is hereinafter referred to as the “Closing Date.” 

3.2 Deliveries. 
 (a)
Deliveries by the Company. At the Closing, the Company shall deliver to the Investor the Shares, registered in the name of the Investor, and the Company shall instruct its transfer agent to register such issuance at the time of such issuance.
The Company shall also deliver at the Closing: (i) a certificate in form and substance reasonably satisfactory to the Investor and duly executed on behalf of the Company by an authorized executive officer of the Company, certifying that the
conditions to Closing set forth in Sections 6 and 8.2 of this Agreement have been fulfilled; (ii) a duly executed Investor Agreement; and (iii) a certificate of the secretary of the Company dated as of the Closing Date certifying
(A) that attached thereto is a true and complete copy of the Amended and Restated Bylaws of the Company as in effect at the time of the actions by the Board of Directors of the Company referred to in clause (B) below, and on the Closing
Date; (B) that attached thereto is a true and complete copy of all resolutions adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of the Transaction Agreements and the Transaction and that all
such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby as of the Closing Date; (C) that attached thereto is a true and complete copy of the Company’s
Restated Certificate of Incorporation as in effect at the time of the actions by the Board of Directors of the Company referred to in clause (B) above, and on the Closing Date; and (D) as to the incumbency and specimen signature of any
officer of the Company executing a Transaction Agreement on behalf of the Company. 
 (b) Deliveries by the Investor. At the
Closing, the Investor shall deliver, or cause to be delivered, to the Company the Aggregate Purchase Price by wire transfer of immediately available United States funds to an account designated by the Company. The Company shall notify the Investor
in writing of the wiring instructions for such account not less 

  
 5 

 
than five (5) Business Days before the Closing Date. The Investor shall also deliver, or cause to be delivered, at the Closing: (i) a certificate in form and substance reasonably
satisfactory to the Company duly executed by an authorized executive officer of the Investor certifying that the conditions to Closing set forth in Section 7 of this Agreement have been fulfilled; (ii) a duly executed Investor Agreement;
and (iii) a certificate of the secretary or assistant secretary of the Investor dated as of the Closing Date certifying as to the incumbency and specimen signature of any officer executing a Transaction Agreement on behalf of the Investor. 

4. Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor that: 

4.1 Organization, Good Standing and Qualification. 

(a) The Company and each of the Subsidiaries is a corporation duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company and each of the Subsidiaries
has all requisite corporate power and corporate authority to own, lease and operate its properties and assets, to carry on its business as now conducted, and as proposed to be conducted as described in the Company SEC Documents, the Company has all
requisite corporate power and corporate authority to enter into the Transaction Agreements and the Collaboration Agreement, to issue and sell the Shares and to perform its obligations under and to carry out the other transactions contemplated by the
Transaction Agreements and the Collaboration Agreement. 
 (b) The Company and each of the Subsidiaries is qualified to transact business
and is in good standing in each jurisdiction in which the character of the properties owned, leased or operated by the Company or Subsidiary, as applicable, or the nature of the business conducted by the Company or Subsidiary, as applicable, makes
such qualification necessary, except where the failure to be so qualified would not have a Material Adverse Effect. 
 4.2 Capitalization
and Voting Rights. 
 (a) The authorized capital of the Company as of the date hereof consists of: (i) 125,000,000 shares of Common
Stock of which, as of the date of this Agreement, (x) 27,954,191 shares are issued and outstanding and (y) 4,139,314 shares are reserved for issuance pursuant to the Company’s stock incentive plans, of which 3,630,702 shares are
issuable upon the exercise of stock options outstanding on the date hereof and (ii) 5,000,000 shares of preferred stock, par value $0.01 per share, of which no shares are issued and outstanding as of the date of this Agreement. All of the
issued and outstanding shares of Common Stock (A) have been duly authorized and validly issued, (B) are fully paid and non-assessable and (C) were issued in compliance with all applicable federal and state securities Laws and not in
violation of any preemptive rights. 
 (b) All of the authorized shares of Common Stock are entitled to one (1) vote per share. 

  
 6 

 (c) Except as described or referred to in Section 4.2(a) above and as provided in the
Investor Agreement, as of the date hereof, there are not: (i) any outstanding equity securities, options, warrants, rights (including conversion or preemptive rights) or other agreements pursuant to which the Company is or may become obligated
to issue, sell or repurchase any shares of its capital stock or any other securities of the Company or (ii) any restrictions on the transfer of capital stock of the Company other than pursuant to state and federal securities Laws. 

(d) Except as provided in the Investor Agreement or as disclosed in the Company SEC Documents, the Company is not a party to or subject to
any agreement or understanding relating to the voting of shares of capital stock of the Company or the giving of written consents by a stockholder or director of the Company. 

(e) Except as provided in the Investor Agreement or disclosed in the Company SEC Documents, no Person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the Company. 
 (f) The Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company
received any notification that the SEC is contemplating terminating such registration. 
 4.3 Subsidiaries. The Company has disclosed
all of its subsidiaries required to be disclosed pursuant to Item 601(b)(21) of Regulation S-K in an exhibit to its Annual Report on Form 10-K (the “Subsidiaries”). The Company owns, directly or indirectly, all of the capital
stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities. 
 4.4 Authorization. 

(a) All requisite corporate action on the part of the Company, its directors and stockholders required by applicable Law for the
authorization, execution and delivery by the Company of the Transaction Agreements and the Collaboration Agreement, and the performance of all obligations of the Company hereunder and thereunder, including the authorization, issuance and delivery of
the Shares, has been taken. 
 (b) This Agreement and the Collaboration Agreement have been, and upon the execution and delivery of the
Investor Agreement by the Company at the Closing, the Investor Agreement will be, duly executed and delivered by the Company, and upon the due execution and delivery of this Agreement by the Investor and the Collaboration Agreement by Janssen, this
Agreement and the Collaboration Agreement will constitute, and upon the due execution and delivery of the Investor Agreement by the Investor, the Investor Agreement will constitute, valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their respective terms (except with respect to the Investor 

  
 7 

 
Agreement and the Collaboration Agreement as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other Laws of general application
relating to or affecting enforcement of creditors’ rights and (ii) rules of Law governing specific performance, injunctive relief or other equitable remedies and limitations of public policy). 

(c) No stop order or suspension of trading of the Common Stock has been imposed by Nasdaq, the SEC or any other Governmental Authority and
remains in effect. 
 4.5 No Defaults. The Company is not in default under or in violation of (a) its Organizational Documents,
(b) any provision of applicable Law or any ruling, writ, injunction, order, Permit, judgment or decree of any Governmental Authority or (c) any agreement, arrangement or instrument, whether written or oral, by which the Company or any of
its assets are bound, except, in the case of subsections (b) and (c), as would not have a Material Adverse Effect. There exists no condition, event or act which after notice, lapse of time, or both, would constitute a default or violation by
the Company under any of the foregoing, except, in the case of subsections (b) and (c), as would not have a Material Adverse Effect. 

4.6 No Conflicts. The execution, delivery and performance of the Transaction Agreements and the Collaboration Agreement, and compliance
with the provisions hereof and thereof by the Company do not and shall not: (a) violate any provision of applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority, (b) constitute a
breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or
instrument, whether written or oral, by which the Company or any of its assets are bound, (c) violate or conflict with any of the provisions of the Company’s Organizational Documents or (d) result in any encumbrance upon any of the
Shares, other than restrictions pursuant to the Investor Agreement or securities Laws, or on any of the properties or assets of the Company or any Subsidiary, except, in the case of subsections (a) and (b), as would not have a Material Adverse
Effect with respect to this Agreement or the Investor Agreement or a Collaboration Material Adverse Effect with respect to the Collaboration Agreement. 

4.7 No Governmental Authority or Third Party Consents. No consent, approval, authorization or other order of, or filing with, or notice
to, any Governmental Authority or other Third Party is required to be obtained or made by the Company in connection with the authorization, execution and delivery by the Company of any of the Transaction Agreements or the Collaboration Agreement, or
with the authorization, issue and sale by the Company of the Shares, except (i) such filings as may be required to be made with the Securities and Exchange Commission (the “SEC”) and with any state blue sky or securities
regulatory authority, which filings shall be made in a timely manner in accordance with all applicable Laws, (ii) as required pursuant to the Hart-Scott-Rodino Antitrust Improvements Act, as amended (the “HSR Act”) and
(iii) with respect to the Shares, the filing with The Nasdaq Stock Market LLC of, and the absence of unresolved issues with respect to, a Notification Form: Listing of Additional Shares (the “LAS”). 

  
 8 

 4.8 Valid Issuance of Shares. When issued, sold and delivered at the Closing in accordance
with the terms hereof for the Aggregate Purchase Price, the Shares shall be duly authorized, validly issued, fully paid and nonassessable, free from any liens, encumbrances or restrictions on transfer, including preemptive rights, rights of first
refusal or other similar rights, other than as arising pursuant to the Transaction Agreements, as a result of any action by the Investor or under federal or state securities Laws. 

4.9 Litigation. Except as set forth in the Company SEC Documents filed prior to the date of this Agreement, there is no action, suit,
proceeding or investigation pending (of which the Company has received notice or otherwise has knowledge) or, to the Company’s knowledge, threatened, against the Company or which the Company intends to initiate which has had or is reasonably
likely to have a Material Adverse Effect. 
 4.10 Licenses and Other Rights; Compliance with Laws. The Company has all franchises,
permits, licenses and other rights and privileges (“Permits”) necessary to permit it to own its properties and to conduct its business as presently conducted and is in compliance thereunder, except where the failure to be in
compliance does not and would not have a Material Adverse Effect. The Company has not taken any action that would interfere with the Company’s ability to renew all such Permit(s), except where the failure to renew such Permit(s) would not have
a Material Adverse Effect. The Company is and has been in compliance with all Laws applicable to its business, properties and assets, and to the products and services sold by it, except where the failure to be in compliance does not and would not
have a Material Adverse Effect. 
 4.11 Company SEC Documents; Financial Statements; Nasdaq Stock Market. 

(a) Since October 1, 2013, the Company has timely filed all required reports, schedules, forms, statements and other documents (including
exhibits and all other information incorporated therein), and any required amendments to any of the foregoing, with the SEC (the “Company SEC Documents”). As of their respective filing dates, each of the Company SEC Documents
complied in all material respects with the requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and
regulations of the SEC promulgated thereunder applicable to such Company SEC Documents, and no Company SEC Documents when filed, declared effective or mailed, as applicable, contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

(b) As of the date of this Agreement, there are no outstanding or unresolved comments in comment letters received from the SEC or its staff.
As of the date of this Agreement, none of the Company’s Subsidiaries is subject to the reporting requirements of Section 13(a) or 15(d) under the Exchange Act. 

  
 9 

 (c) The consolidated financial statements of the Company included in its Annual Report on Form
10-K for the fiscal year ended December 31, 2013 and in its quarterly reports on Form 10-Q for the quarterly periods ended September 30, 2014, June 30, 2014, and March 31, 2014 comply as to form in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a
consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows
for the periods then ended. The interim, unaudited financial statements of the Company for the two-month period ended November 30, 2014 and as of November 30, 2014, as provided to the Investor have been prepared in accordance with GAAP
applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations
and cash flows for the period then ended. Except (i) as set forth in the Company SEC Documents or (ii) for liabilities incurred in the ordinary course of business subsequent to the date of the most recent balance sheet contained in
the Company SEC Documents, the Company has no liabilities, whether absolute or accrued, contingent or otherwise, other than those that would not, individually or in the aggregate, have a Material Adverse Effect. There are no material unconsolidated
subsidiaries of the Company or any material off-balance sheet arrangements of any type (including any off balance sheet arrangements required to be disclosed pursuant to Item 303(a)(4) of Regulation S-K promulgated under the Securities
Act) that have not been so described in the Company SEC Reports filed prior to the date hereof nor any obligations to enter into any such arrangements. 

(d) The Common Stock is listed on The Nasdaq Global Select Market, and the Company has taken no action designed to, or which is likely to
have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from The Nasdaq Global Market. The Company has not received any notification that, and has no knowledge that, the SEC or The
Nasdaq Stock Market LLC is contemplating terminating such listing or registration. 
 (e) The Company has implemented and maintains a
system of internal control over financial reporting (to the extent required by Rule 13a-15(a) under the Exchange Act) that is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
consolidated financial statements for external purposes, and, to the knowledge of the Company, such system of internal control over financial reporting is effective. For purposes of this Section 4.11(e), “knowledge of the Company”
means the actual knowledge of the Chief Executive Officer and the Chief Financial Officer of the Company. The Company has implemented and maintains disclosure controls and procedures (to the extent required by Rule 13a-15(a) of the Exchange Act)
that are designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the timeframes specified by the SEC’s rules
and forms (and such disclosure controls and procedures are effective), and has disclosed, based on its most recent evaluation of its system of internal control over financial 

  
 10 

 
reporting prior to the date of this Agreement, to the Company’s outside auditors and the audit committee of the Company Board (i) any significant deficiencies and material weaknesses
known to it in the design or operation of its internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that would reasonably be expected to adversely affect the Company’s ability to record, process, summarize
and report financial information and (ii) any fraud known to it, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting. 

(f) To the knowledge of the Company, as of the date hereof, no employee of the Company or its subsidiaries has provided since January 1,
2012 or is providing information to any law enforcement agency regarding the violation of any applicable Law of the type described in Section 806 of the Sarbanes-Oxley Act by the Company or its Subsidiaries. Neither the Company nor its
Subsidiaries have discharged, demoted or suspended an employee of the Company or its Subsidiaries in the terms and conditions of employment because of any lawful act of such employee described in Section 806 of the Sarbanes-Oxley Act. 

4.12 Absence of Certain Changes. 

(a) Except as disclosed in the Company SEC Documents, since December 31, 2013, there has not occurred any event that has caused or would
reasonably be expected to cause a Material Adverse Effect. 
 (b) Except as set forth in the Company SEC Documents filed prior to the date
hereof, since December 31, 2013, the Company has not (i) declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock, or (ii) sold, exchanged or otherwise
disposed of any of its material assets or rights. 
 (c) Since December 31, 2013, the Company has not admitted in writing its
inability to pay its debts generally as they become due, filed or consented to the filing against it of a petition in bankruptcy or a petition to take advantage of any insolvency act, made an assignment for the benefit of creditors, consented to the
appointment of a receiver for itself or for the whole or any substantial part of its property, or had a petition in bankruptcy filed against it, been adjudicated a bankrupt, or filed a petition or answer seeking reorganization or arrangement under
the federal bankruptcy laws or any other laws of the United States or any other jurisdiction. 
 4.13 Offering. Subject to the
accuracy of the Investor’s representations set forth in Sections 5.5, 5.6, 5.7, 5.9 and 5.10, the offer, sale and issuance of the Shares to be issued in conformity with the terms of this Agreement constitute transactions which are exempt from
the registration requirements of the Securities Act and from all applicable state registration or qualification requirements. Neither the Company nor any Person acting on its behalf will take any action that would cause the loss of such exemption.

 4.14 No Integration. The Company has not, directly or through any agent, sold, offered for sale, solicited offers to buy or
otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the Shares sold pursuant to this Agreement in a manner that would require the registration of the Shares under the Securities
Act. 

  
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 4.15 Brokers’ or Finders’ Fees. No broker, finder, investment banker or other
Person is entitled to any brokerage, finder’s or other fee or commission from the Company in connection with the transactions contemplated by the Transaction Agreements and the Collaboration Agreement. 

4.16 Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended. 
 4.17 No General Solicitation. Neither the Company
nor any person acting on behalf of the Company has offered or sold any of the Shares by any form of general solicitation or general advertising. The Company has offered the Shares for sale only to the Investor. 

4.18 Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of
the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or
domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable non-U.S. anti-bribery Law. 

4.19 Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any
compensation for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company. 

4.20 Office of Foreign Assets Control. Neither the Company nor, to the Company’s knowledge, any director, officer, agent, employee
or Affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department. 

4.21 Intellectual Property. 

(a) The Intellectual Property that is owned by the Company or any subsidiary is owned free from any liens or restrictions (other than any
restrictions set forth in any Intellectual Property License relating to such Intellectual Property), and all of the Company’s 

  
 12 

 
and its subsidiaries’ material Intellectual Property Licenses are in full force and effect in accordance with their terms, are free of any liens or restrictions, and neither the Company nor
to the Company’s knowledge any other party thereto, is in material breach of any such material Intellectual Property License, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default
thereunder or would result in the termination thereof or would cause or permit the acceleration or other change of any right or obligation of the loss of any benefit thereunder by the Company except (i) for such failures to be in full force and
effect, such liens or restrictions, and such material breaches that would not reasonably be expected to have a Material Adverse Effect, or (ii) as set forth in any such Intellectual Property License. Except as set forth in the Company SEC
Documents filed prior to the date hereof, there is no material legal claim or demand of any Person pertaining to, or any proceeding which is pending (of which the Company has received notice or otherwise has knowledge) or, to the knowledge of the
Company, threatened, (i) challenging the right of the Company in respect of any Company Intellectual Property, or (ii) that claims that any default exists under any Intellectual Property License, except, in the case of (i) and
(ii) above, where any such claim, demand or proceeding would not have or reasonably be expected to have a Material Adverse Effect. 

(b) Except as set forth in the Company’s SEC Documents: (i) the Company or one of its subsidiaries owns, free and clear of any lien
or encumbrance, or has a valid license to, or has an enforceable right to use, as it is used or held for use, all U.S. and non-U.S. patents, trade secrets, know-how, trademarks, service marks, copyrights, and other proprietary and intellectual
property rights, and all grants and applications with respect to the foregoing (collectively, the “Proprietary Rights”) necessary for the conduct of the Company’s business, the absence of which would not have or reasonably be
expected to have a Material Adverse Effect (such Proprietary Rights owned by or licensed to the Company collectively, the “Company Rights”); and (ii) the Company and its subsidiaries have taken reasonable measures to protect
the Company Rights, consistent with prudent commercial practices in the biotechnology industry, except where failure to take such measures would not have or reasonably be expected to have a Material Adverse Effect. 

4.22 Full Disclosure. As of the date hereof, and other than the transactions that are the subject of this Agreement and the
Collaboration Agreement, no material fact or circumstance exists that would be required to be disclosed in a current report on Form 8-K or in a registration statement filed under the Securities Act, were such a registration statement filed on the
date hereof, that has not been disclosed in an SEC Report filed on or after March 20, 2013. 
 5. Representations and Warranties of
the Investor. The Investor hereby represents and warrants to the Company that: 
 5.1 Organization; Good Standing. The Investor
is a corporation duly organized, validly existing and in good standing under the laws of New Jersey. The Investor has or will have all requisite power and authority to enter into the Transaction Agreements, to purchase the Shares and to perform its
obligations under and to carry out the other transactions contemplated by the Transaction Agreements. 

  
 13 

 5.2 Authorization. All requisite action on the part of the Investor and its directors and
stockholders, required by applicable Law for the authorization, execution and delivery by the Investor of the Transaction Agreements, and the performance of all of its obligations thereunder, including the subscription for and purchase of the
Shares, has been taken. This Agreement has been, and upon the execution and delivery of the Investor Agreement at the Closing by the Investor, the Investor Agreement will be, duly executed and delivered by the Investor and upon the due execution and
delivery thereof by the Company, will constitute valid and legally binding obligations of the Investor, enforceable against the Investor in accordance with their respective terms (except as such enforceability may be limited by (a) applicable
bankruptcy, insolvency, reorganization, moratorium or other Laws of general application relating to or affecting enforcement of creditors’ rights and (b) rules of Law governing specific performance, injunctive relief or other equitable
remedies and limitations of public policy). 
 5.3 No Conflicts. The execution, delivery and performance of the Transaction
Agreements and compliance with the provisions thereof by the Investor do not and shall not: (a) violate any provision of applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority,
(b) constitute a breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any agreement,
arrangement or instrument, whether written or oral, by which the Investor or any of its assets, are bound, or (c) violate or conflict with any of the provisions of the Investor’s organizational documents (including any articles or
memoranda of organization or association, charter, bylaws or similar documents), except as would not impair or adversely affect the ability of the Investor to consummate the Transactions and perform its obligations under the Transaction Agreements
and except, in the case of subsections (a) and (b) as would not have a material adverse effect on the Investor’s ability to perform its obligations or consummate the Transaction in accordance with the terms of this Agreement. 

5.4 No Governmental Authority or Third Party Consents. No consent, approval, authorization or other order of any Governmental Authority
or other Third Party is required to be obtained by the Investor in connection with the authorization, execution and delivery of any of the Transaction Agreements or with the subscription for and purchase of the Shares, except as required pursuant to
the HSR Act. 
 5.5 Purchase Entirely for Own Account. The Shares shall be acquired for investment for the Investor’s own
account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has no present intention of selling, granting any participation or otherwise distributing the Shares. The Investor does not
have and will not have as of the Closing any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participation to a Person any of the Shares. 

5.6 Disclosure of Information. The Investor has received all the information from the Company and its management that the Investor
considers necessary or appropriate for deciding whether to purchase the Shares hereunder. The Investor further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the Company, its financial
condition, results of operations and prospects and the terms and conditions of the offering of the Shares sufficient to enable it to evaluate its investment. 

  
 14 

 5.7 Investment Experience and Accredited Investor Status. The Investor is an
“accredited investor” (as defined in Regulation D under the Securities Act). The Investor has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the
Shares to be purchased hereunder. 
 5.8 Acquiring Person. As of the date of this Agreement and immediately prior to the Closing,
neither the Investor nor any of its Affiliates beneficially owns, or will beneficially own (as determined pursuant to Rule 13d-3 under the Exchange Act without regard for the number of days in which a Person has the right to acquire such beneficial
ownership, and without regard to Investor’s rights under this Agreement), any securities of the Company, except for securities that may be owned by employee benefit plans of the Investor or any of its Affiliates. 

5.9 Restricted Securities. The Investor understands that the Shares, when issued, shall be “restricted securities” under the
federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such Laws the Shares may be resold without registration under the Securities Act only in certain limited
circumstances. The Investor represents that it is familiar with Rule 144 of the Securities Act (“Rule 144”), as presently in effect. 

5.10 Legends. The Investor understands that any certificates representing the Shares shall bear the following legends: 

(a) “These securities have not been registered under the Securities Act of 1933. They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect to the securities under the Securities Act or an opinion of counsel (which counsel shall be reasonably satisfactory to MacroGenics, Inc.) that such registration is not
required or unless sold pursuant to Rule 144 of the Securities Act.”; 
 (b) any legend required by applicable state securities Laws;
and 
 (c) “The securities represented by this certificate are subject to and shall be transferable only upon the terms and conditions
of an Investor Agreement dated as of December 19, 2014, by and between MacroGenics, Inc. and Johnson & Johnson Innovation-JJDC, Inc., a copy of which is on file with the Secretary of MacroGenics, Inc.” 

5.11 Financial Assurances. As of the date hereof and as of the Closing Date, the Investor has and will have access to cash in an amount
sufficient to pay to the Company the Aggregate Purchase Price. 
 5.12 Stock Ownership. As of the date hereof, neither the Investor
nor any of its Affiliates (excluding for this purpose any employee benefit plan of the Investor) own any shares of capital stock of the Company. 

  
 15 

 6. Investor’s Conditions to Closing. The Investor’s obligation to purchase the
Shares at the Closing is subject to the fulfillment as of the Closing of the following conditions (unless waived in writing by the Investor): 

6.1 Representations and Warranties. The representations and warranties made by the Company in Section 4 hereof shall be true and
correct as of the date of this Agreement and as of the Closing Date as though made on and as of such Closing Date, except to the extent such representations and warranties are specifically made as of a particular date, in which case such
representations and warranties shall be true and correct as of such date; provided, however, that for purposes of this Section 6.1, all such representations and warranties of the Company (other than Sections 4.1(a), 4.2, 4.3, 4.4,
4.5(a), 4.6(c), 4.8, and 4.11 of this Agreement) shall be deemed to be true and correct for purposes of this Section 6.1 unless the failure or failures of such representations and warranties to be so true and correct, without regard to any
“material,” “materiality” or “Material Adverse Effect” qualifiers set forth therein, constitute a Material Adverse Effect. 

6.2 Representations and Warranties in the Collaboration Agreement. The representations and warranties made by the Company in Sections
11.1 and 11.2 of the Collaboration Agreement shall be true and correct as of the Closing Date as though made on and as of such Closing Date, except to the extent such representations and warranties are specifically made as of a particular date, in
which case such representations and warranties shall be true and correct as of such date; provided, however, that for purposes of this Section 6.2, all such representations and warranties of the Company shall be deemed to be true
and correct for purposes of this Section 6.2 unless the failure or failures of such representations and warranties to be so true and correct, without regard to any “material” or “materiality” qualifiers set forth therein,
individually or in the aggregate, has had or would reasonably be expected to have a Collaboration Material Adverse Effect. 
 6.3
Covenants. All covenants and agreements contained in this Agreement to be performed or complied with by the Company on or prior to the Closing Date shall have been performed or complied with in all material respects. 

6.4 Investor Agreement. The Company shall have duly executed and delivered to the Investor, pursuant to Section 3.2(a) of this
Agreement, the Investor Agreement, and (subject to execution by the Investor) such agreement shall be in full force and effect. 
 6.5
Collaboration Agreement. The Company shall have duly executed and delivered to the Investor the Collaboration Agreement, and there shall have been no termination of the Collaboration Agreement that, as of the Closing, is effective. 

6.6 No Material Adverse Effect. From and after the date of this Agreement until the Closing Date, there shall have occurred no event
that has caused a Material Adverse Effect or a Collaboration Material Adverse Effect. 
 6.7 Listing. The Shares shall be eligible
and approved for listing on the Nasdaq Global Select Market. 

  
 16 

 7. Company’s Conditions to Closing. The Company’s obligation to issue and sell
the Shares at the Closing is subject to the fulfillment as of the Closing of the following conditions (unless waived in writing by the Company): 

7.1 Representations and Warranties. The representations and warranties made by the Investor in Section 5 hereof shall be true and
correct as of the date of this Agreement and as of the Closing Date as though made on and as of such Closing Date, except to the extent such representations and warranties are specifically made as of a particular date, in which case such
representations and warranties shall be true and correct as of such date, in the case of Sections 5.1-5.4, and 5.11, except where any failure to be true and correct would not have a material adverse effect on the Investor’s ability to perform
its obligations, or consummate the Transaction in accordance with the terms of this Agreement, in the case of Section 5.5, 5.6 and 5.7, except where any inaccuracy would not result in the issuance of the Shares hereunder failing to qualify as
an offering of securities not involving any public offering under the federal securities Laws, and in the case of Section 5.8, except where any inaccuracy would not be material on the Investor’s ability to perform its obligations, or
consummate the Transaction in accordance with the terms of this Agreement. 
 7.2 Covenants. All covenants and agreements contained
in this Agreement to be performed or complied with by the Investor on or prior to the Closing Date shall have been performed or complied with in all material respects. 

7.3 Investor Agreement. The Investor shall have duly executed and delivered to the Company, pursuant to Section 3.2(b) of this
Agreement, the Investor Agreement, and (subject to execution by the Company) such agreement shall be in full force and effect. 
 7.4
Collaboration Agreement. Janssen shall have duly executed and delivered to the Company the Collaboration Agreement, and there shall have been no termination of the Collaboration Agreement that, as of the Closing, is effective. 

8. Mutual Conditions to Closing. The obligations of the Investor and the Company to consummate the Closing are subject to the
fulfillment as of the Closing Date of the following conditions: 
 8.1 HSR Act Qualification. The filings required under the HSR Act
in connection with this Agreement shall have been made and the required waiting period shall have expired or been terminated as of the Closing Date. 

8.2 Absence of Litigation. There shall be no action, suit, proceeding or investigation by a Governmental Authority pending or currently
threatened in writing against the Company or the Investor that questions the validity of any of the Transaction Agreements, the right of the Company or the Investor to enter into any Transaction Agreement or to consummate the transactions
contemplated hereby or thereby or which, if determined adversely, would impose substantial monetary damages on the Company or the Investor as a result of the consummation of the transactions contemplated by any Transaction Agreement. 

  
 17 

 8.3 No Prohibition. No provision of any applicable Law and no judgment, injunction
(preliminary or permanent), order or decree that prohibits, makes illegal or enjoins the consummation of the Transaction shall be in effect. 

9. Termination. 
 9.1
Ability to Terminate. This Agreement may be terminated at any time prior to the Closing by: 
 (a) mutual written consent of the
Company and the Investor; 
 (b) either the Company or the Investor, upon written notice to the other no earlier than March 18, 2015
(the “Termination Date”), if the Transaction shall not have been consummated by the Termination Date; 
 (c) either the
Company or the Investor, upon written notice to the other, if any of the mutual conditions to the Closing set forth in Section 8 shall have become incapable of fulfillment by the Termination Date and shall not have been waived in writing by the
other party within ten business days after receiving receipt of written notice of an intention to terminate pursuant to this clause (c) provided, however, that the right to terminate this Agreement under this Section 9.1(c) shall not be
available to any party whose failure to fulfill any obligation under this Agreement has been the cause of, or resulted in, the failure to consummate the transactions contemplated hereby prior to the Termination Date; 

(d) the Company, upon written notice to the Investor, so long as the Company is not then in breach of its representations, warranties,
covenants or agreements under this Agreement such that any of the conditions set forth in Section 6.1 or 6.2, as applicable, could not be satisfied by the Termination Date, (i) upon a material breach of any covenant or agreement on the
part of the Investor set forth in this Agreement, or (ii) if any representation or warranty of the Investor shall have been or become untrue, in each case such that any of the conditions set forth in Section 7.1, 7.2, 7.3 or 7.4, as
applicable, could not be satisfied by the Termination Date; 
 (e) the Investor, upon written notice to the Company, so long as the
Investor is not then in breach of its representations, warranties, covenants or agreements under this Agreement such that any of the conditions set forth in Section 7.1, 7.2 or 7.3, as applicable, could not be satisfied by the Termination Date,
upon a breach of any covenant or agreement on the part of the Company set forth in this Agreement, or if any representation or warranty of the Company shall have been or become untrue, in each case such that any of the conditions set forth in
Section 6.1, 6.2, 6.3 or 6.4, as applicable, could not be satisfied by the Termination Date. 
 9.2 Effect of Termination. In
the event of the termination of this Agreement pursuant to Section 9.1 hereof, (a) this Agreement (except for this Section 9.2 and Section 11 hereof (other than Section 11.13), and any definitions set forth in this Agreement
and used in such sections) shall forthwith become void and have no effect, without any liability on the part of 

  
 18 

 
any party hereto or its Affiliates, and (b) all filings, applications and other submissions made pursuant to this Agreement, to the extent practicable, shall be withdrawn from the agency or
other Person to which they were made or appropriately amended to reflect the termination of the transactions contemplated hereby; provided, however, that nothing contained in this Section 9.2 shall relieve any party from liability
for fraud or any intentional or willful breach of this Agreement. 
 10. Additional Covenants and Agreements. 

10.1 Market Listing. From the date hereof through the Closing Date, Company shall use all reasonable efforts to (a) maintain the
listing and trading of the Common Stock on The Nasdaq Global Market and (b) effect the listing of the Shares on The Nasdaq Global Market, including submitting the LAS to The Nasdaq Stock Market LLC no later than fifteen (15) calendar days
prior to the Closing Date. 
 10.2 Notification under the HSR Act. 

(a) As a result of the aggregate consideration being paid by the Investor under this Agreement and the Collaboration Agreement, which
satisfies the size of transaction jurisdictional threshold under the HSR Act, the parties shall, as soon as practicable, and, in any event, no later than ten (10) Business Days after the date of this Agreement, file or cause to be filed with
the Federal Trade Commission and the Department of Justice the notifications required to be filed under the HSR Act and the rules and regulations promulgated thereunder with respect to the transactions contemplated by this Agreement. The parties
will use all reasonable efforts to respond on a timely basis to any requests for additional information made by either of such agencies. 

(b) Each of Investor and Company shall: (i) reasonably cooperate with each other in connection with any investigation or other inquiry
relating to the transactions contemplated by the Transaction Agreements and the Collaboration Agreement; (ii) reasonably keep the other party informed of any communication received by such party from, or given by such party to, the FTC, the DOJ
or any other Merger Control Authority and of any communication received or given in connection with any proceeding by a private party, in each case regarding the transactions contemplated by the Transaction Agreements or the Collaboration Agreement;
(iii) promptly respond to and certify substantial compliance with any inquiries or requests received from the FTC or the DOJ for additional information or documentation; (iv) reasonably consult with each other in advance of any meeting or
conference with the FTC, the DOJ or any other Merger Control Authority, and to the extent permitted by the FTC, the DOJ or such other Merger Control Authority and reasonably determined by such party to be appropriate under the circumstances, give
the other party or their counsel the opportunity to attend and participate in such meetings and conferences; and (v) permit the other party or their counsel to the extent reasonably practicable to review in advance, and in good faith consider
the views of the other party or their counsel concerning, any submission, filing or communication (and documents submitted therewith) intended to be given by it to the FTC, the DOJ or any other Merger Control Authority; provided,
however, such party shall be under no obligation to reschedule any meetings or conferences with the FTC, the DOJ or any other Merger Control Authority to enable the other party to attend. 

  
 19 

 (c) Notwithstanding anything to the contrary in this Agreement, the terms “commercially
reasonable efforts” or “reasonable efforts” do not require that either party (i) offer, negotiate, commit to or effect, by consent decree, hold separate order, trust or otherwise, the sale, divestiture, license or other
disposition of any capital stock, assets, rights, products or businesses of Investor, Company or their respective Affiliates, (ii) agree to any restrictions on the activities of Investor, Company or their respective Affiliates, or
(iii) pay any material amount or take any other action to prevent, effect the dissolution of, vacate, or lift any decree, order, judgment, injunction, temporary restraining order, or other order in any suit or proceeding that would otherwise
have the effect of preventing or delaying any of the transactions contemplated by the Transaction Agreements or the Collaboration Agreement. 

10.3 Assistance and Cooperation. Prior to the Closing, upon the terms and subject to the conditions set forth in this Agreement, each
of the parties agrees to use all reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, and to assist and cooperate with the other party in doing, all things necessary, proper or advisable to consummate and
make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement, including using all reasonable efforts to accomplish the following: (a) taking all reasonable acts necessary to cause the conditions
precedent set forth in Sections 6, 7 and 8 to be satisfied (including, in the case of the Company, promptly notifying the Investor of any notice from The Nasdaq Stock Market LLC with respect to the LAS); (b) taking all reasonable actions
necessary to obtain all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from Governmental Authorities and the making of all necessary registrations, declarations and filings (including registrations,
declarations and filings with Governmental Authorities, if any); (c) taking all reasonable actions necessary to obtain all necessary consents, approvals or waivers from Third Parties; and (d) except as otherwise provided for in
Section 10.2, defending any suits, claims, actions, investigations or proceedings, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, including seeking to have any stay or
temporary restraining order entered by any court or other Governmental Authority vacated or reversed. 
 10.4 Form D; Blue Sky
Filings. The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof, promptly upon request of the Investor. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares for, sale to the Investor at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of the Investor. 
 10.5 Legend Removal. 

(a) Certificates evidencing the Shares shall not contain the legend set forth in Section 5.10(a): (i) following a sale of such
Shares pursuant to a registration statement 

  
 20 

 
covering the resale of such Shares, while such registration statement is effective under the Securities Act, (ii) following any sale of such Shares pursuant to Rule 144, (iii) if such
Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale restrictions or (iv) if
such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). 

(b) Certificates evidencing the Shares shall not contain the legend set forth in Section 5.10(c) following: (i) a sale of such
Shares pursuant to a registration statement covering the resale of such Shares, while such registration statement is effective under the Securities Act, (ii) any sale of such Shares pursuant to Rule 144 or (iii) the expiration of the
Standstill Term (as defined in the Investor Agreement), the Lock-Up Term (as defined in the Investor Agreement) and the Voting Agreement Term (as defined in the Investor Agreement); provided that any transfer described in clause (i) or
(ii) above shall have been in compliance with all applicable provisions of the Investor Agreement. 
 (c) The Company agrees that at
such time as any legend set forth in Section 5.10 is no longer required under this Section 10.5, the Company will, no later than three (3) Business Days following the delivery by the Investor to the Company or the Company’s
transfer agent (the “Transfer Agent”) of a certificate representing Shares issued with such legend, deliver or cause to be delivered to the Investor a certificate representing such Shares that is free from such legend, or, in the
event that such shares are uncertificated, remove any such legend in the Company’s stock records. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in Section 5.10. 
 10.6 Conduct of Business. During the period from the date hereof until the Closing, except as
consented to in writing by the Investor, the Company shall not (i) declare, set aside or pay any dividend or make any other distribution or payment (whether in cash, stock or property or any combination thereof) in respect of its capital stock,
or establish a record date for any of the foregoing, or (ii) make any other actual, constructive or deemed distribution in respect of any shares of its capital stock or otherwise make any payments to stockholders in their capacity as such,
except pursuant to repurchases of equity pursuant to the terms of its equity compensation plans. 
 11. Miscellaneous. 

11.1 Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the Laws of the
State of Delaware, without regard to the conflict of laws principles thereof that would require the application of the Law of any other jurisdiction. Any action brought, arising out of, or relating to this Agreement shall be brought in the Court of
Chancery of the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of said Court in respect of any claim relating to the validity, interpretation and enforcement of this Agreement, and hereby waives, and agrees
not to assert, as a defense in any action, suit or proceeding in which any such claim is made that it is not subject 

  
 21 

 
thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts, or that the venue thereof may not be appropriate or that this agreement may not be
enforced in or by such courts. The parties hereby consent to and grant the Court of Chancery of the State of Delaware jurisdiction over such parties and over the subject matter of any such claim and agree that mailing of process or other papers in
connection with any such action, suit or proceeding in the manner provided in Section 11.3 or in such other manner as may be permitted by law, shall be valid and sufficient thereof. 

11.2 Waiver. Waiver by a party of a breach hereunder by the other party shall not be construed as a waiver of any subsequent breach of
the same or any other provision. No delay or omission by a party in exercising or availing itself of any right, power or privilege hereunder shall preclude the later exercise of any such right, power or privilege by such party. No waiver shall be
effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the party granting the waiver. 

11.3 Notices. All notices, instructions and other communications hereunder or in connection herewith shall be in writing, shall be sent
to the address of the relevant party set forth on Exhibit B attached hereto and shall be (a) delivered personally, (b) sent by registered or certified mail, return receipt requested, postage prepaid, (c) sent via a reputable
nationwide overnight courier service or (d) sent by facsimile transmission or electronic mail, with a confirmation copy to be sent by registered or certified mail, return receipt requested, postage prepaid. Any such notice, instruction or
communication shall be deemed to have been delivered upon receipt if delivered by hand, three (3) Business Days after it is sent by registered or certified mail, return receipt requested, postage prepaid, one (1) Business Day after it is
sent via a reputable nationwide overnight courier service or when transmitted with electronic confirmation of receipt, if transmitted by facsimile or electronic mail (if such transmission is made during regular business hours of the recipient on a
Business Day; or otherwise, on the next Business Day following such transmission). Either party may change its address by giving notice to the other party in the manner provided above. 

11.4 Entire Agreement. This Agreement, the Investor Agreement (once executed) and the Collaboration Agreement, contain the entire
agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous arrangements or understandings, whether written or oral, with respect hereto and thereto. 

11.5 Amendments. No provision in this Agreement shall be supplemented, deleted or amended except in a writing executed by an authorized
representative of each of the Investor and the Company. 
 11.6 Headings; Nouns and Pronouns; Section References. Headings in this
Agreement are for convenience of reference only and shall not be considered in construing this Agreement. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the
singular form of names and pronouns shall include the plural and vice-versa. References in this Agreement to a section or subsection shall be deemed to refer to a section or subsection of this Agreement unless otherwise expressly stated. 

  
 22 

 11.7 Severability. If, under applicable Laws, any provision hereof is invalid or
unenforceable, or otherwise directly or indirectly affects the validity of any other material provision(s) of this Agreement in any jurisdiction (“Modified Clause”), then, it is mutually agreed that this Agreement shall endure and
that the Modified Clause shall be enforced in such jurisdiction to the maximum extent permitted under applicable Laws in such jurisdiction; provided that the parties shall consult and use all reasonable efforts to agree upon, and hereby consent to,
any valid and enforceable modification of this Agreement as may be necessary to avoid any unjust enrichment of either party and to match the intent of this Agreement as closely as possible, including the economic benefits and rights contemplated
herein. 
 11.8 Assignment. Except for an assignment of this Agreement or any rights hereunder by the Investor to an Affiliate,
neither this Agreement nor any of the rights or obligations hereunder may be assigned by either the Investor or the Company without (a) the prior written consent of Company in the case of any assignment by the Investor or (b) the prior
written consent of the Investor in the case of an assignment by the Company. 
 11.9 Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 11.10
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument. 

11.11 Third Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third
Party, including any creditor of any party hereto. No Third Party shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise)
against any party hereto. 
 11.12 No Strict Construction. This Agreement has been prepared jointly and will not be construed against
either party. 
 11.13 Survival of Warranties. The representations and warranties of the Company and the Investor contained in this
Agreement shall survive the Closing and the delivery of the Shares. 
 11.14 Remedies. The rights, powers and remedies of the parties
under this Agreement are cumulative and not exclusive of any other right, power or remedy which such parties may have under any other agreement or Law. No single or partial assertion or exercise of any right, power or remedy of a party hereunder
shall preclude any other or further assertion or exercise thereof. 

  
 23 

 11.15 Expenses. Each party shall pay its own fees and expenses in connection with the
preparation, negotiation, execution and delivery of the Transaction Agreements. 
 11.16 No Publicity. The parties hereto agree that
the provisions of Section 12.5 of the Collaboration Agreement shall be applicable to the parties to this Agreement with respect to any public disclosures regarding the proposed transactions contemplated by the Purchase Agreement and the
Collaboration Agreement or regarding the parties hereto or their Affiliates (it being understood that the provisions of Section 12.5(a) of the Collaboration Agreement shall be read to apply to disclosures of information relating to this
Agreement and the transactions contemplated hereby). 
 11.17 Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
OTHER PARTY (OR THE OTHER PARTY’S AFFILIATES OR SUBLICENSEES) IN CONNECTION WITH THIS AGREEMENT FOR LOST REVENUE, LOST PROFITS, LOST SAVINGS, LOSS OF USE, DAMAGE TO GOODWILL, OR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR
INDIRECT DAMAGES UNDER ANY THEORY, INCLUDING CONTRACT, NEGLIGENCE, OR STRICT LIABILITY, EVEN IF THAT PARTY HAS BEEN PLACED ON NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. 

(Signature Page Follows) 

  
 24 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first
above written. 
  

			
	JOHNSON & JOHNSON INNOVATION-JJDC, INC.
		
	By:		 /s/ Asish K. Xavier

	Name:		Asish K. Xavier
	Title:		Vice President, Venture Investments
	
	MACROGENICS, INC.
		
	By:		 /s/ Scott Koenig, M.D., Ph.D.

	Name:		Scott Koenig, M.D., Ph.D.
	Title:		President and CEO

 Signature Page to Stock Purchase Agreement 

 EXHIBIT A 

FORM OF INVESTOR AGREEMENT 

  
 B-1 

 EXHIBIT B 

NOTICES 
  

	(a)	If to the Investor: 

 Johnson & Johnson Innovation-JJDC, Inc. 

410 George Street 
 New Brunswick,
NJ 08901 
 Attention: General Manager 

with a copy to: 

Johnson & Johnson Law Department 

One Johnson & Johnson Plaza 

New Brunswick, NJ 08534 

Attention: General Counsel 
  

	(b)	If to the Company: 

 MacroGenics, Inc. 

9640 Medical Center Drive 

Rockville, MD 20850 
 Attention:
CEO 
 with a copy to: 

Wilmer Cutler Pickering Hale & Dorr LLP 

60 State Street 
 Boston, MA 02109

 Attention: Steven D. Singer 

  
 B-1

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