Document:

EX-10.2

 Exhibit 10.2 

CONFIDENTIAL 
 EXECUTION
VERSION 
 CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 AMENDED AND RESTATED 

LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 

DATED AS OF MARCH 22, 2017 

BY AND BETWEEN 
 ELI
LILLY AND COMPANY 
 AND 

IGNYTA, INC. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1
	 	 Definitions
	  	 	1	 
			
	 ARTICLE 2
	 	 Licenses
	  	 	17	 
			
	 2.1
	 	 Grant to Licensee
	  	 	17	 
	 2.2
	 	 Grant to Lilly
	  	 	18	 
	 2.3
	 	 Additional Licensing Provisions
	  	 	18	 
	 2.4
	 	 Performance by Affiliates, Third Party Contractors and Sublicensees
	  	 	19	 
	 2.5
	 	 Restrictive Covenants
	  	 	20	 
	 2.6
	 	 Progress Updates
	  	 	20	 
			
	 ARTICLE 3
	 	 Development
	  	 	21	 
			
	 3.1
	 	 Overview of Licensee Development
	  	 	21	 
	 3.2
	 	 Development Activities
	  	 	21	 
	 3.3
	 	 Records, Reports and Information
	  	 	22	 
	 3.4
	 	 On-Going Studies
	  	 	22	 
	 3.5
	 	 Ownership and Transfer of Development Data
	  	 	22	 
	 3.6
	 	 Rights of Reference
	  	 	23	 
			
	 ARTICLE 4
	 	 Regulatory
	  	 	23	 
			
	 4.1
	 	 Regulatory Data and Regulatory Materials
	  	 	23	 
	 4.2
	 	 Regulatory Filings and Regulatory Approvals
	  	 	24	 
	 4.3
	 	 Communications
	  	 	24	 
	 4.4
	 	 Pharmacovigilance and Medical Inquiries
	  	 	25	 
	 4.5
	 	 Regulatory Authority Communications Received by a Party
	  	 	26	 
	 4.6
	 	 Recall, Withdrawal, or Market Notification
	  	 	26	 
	 4.7
	 	 Licensee Support for the Reserved Field
	  	 	27	 
	 4.8
	 	 Clinical Trial Subjects
	  	 	27	 
			
	 ARTICLE 5
	 	 Commercialization
	  	 	27	 
			
	 5.1
	 	 Commercialization
	  	 	27	 
	 5.2
	 	 Performance
	  	 	27	 
	 5.3
	 	 No Disparagement
	  	 	28	 
	 5.4
	 	 Reports
	  	 	28	 
	 5.5
	 	 Provisions Applicable to Sales Representatives and/or Medical Science Liaisons
	  	 	28	 
	 5.6
	 	 Questions Regarding Products and Lilly Products
	  	 	29	 
	 5.7
	 	 Promotional Materials
	  	 	29	 
	 5.8
	 	 Trademarks and Trade Dress
	  	 	30	 
	 5.9
	 	 Commercialization Data
	  	 	31	 
	 5.10
	 	 Promotion of the Lilly Products
	  	 	31	 
			
	 ARTICLE 6
	 	 Supply
	  	 	32	 
			
	 6.1
	 	 Reserved
	  	 	32	 
	 6.2
	 	 Packaging and Labeling; Certain Other Manufacturing Activities
	  	 	32	 
	 6.3
	 	 Ongoing Supply
	  	 	32	 

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 6.4
	 	 Manufacturing Technology Transfer
	  	 	33	 
			
	 ARTICLE 7
	 	 Payments
	  	 	33	 
			
	 7.1
	 	 Reserved
	  	 	33	 
	 7.2
	 	 Amendment Consideration
	  	 	33	 
	 7.3
	 	 Milestone Payments
	  	 	35	 
	 7.4
	 	 Royalty Payments
	  	 	35	 
	 7.5
	 	 Royalty Payments and Reports
	  	 	37	 
	 7.6
	 	 Taxes and Withholding
	  	 	37	 
	 7.7
	 	 Currency Conversion
	  	 	38	 
	 7.8
	 	 General Payment Procedures
	  	 	38	 
	 7.9
	 	 Late Payments
	  	 	39	 
	 7.10
	 	 Records; Audits
	  	 	39	 
	 7.11
	 	 Licensee Capital Stock
	  	 	40	 
			
	 ARTICLE 8
	 	 Intellectual Property Matters
	  	 	40	 
			
	 8.1
	 	 Ownership of Intellectual Property
	  	 	40	 
	 8.2
	 	 Disclosures
	  	 	41	 
	 8.3
	 	 Patent Filings, Prosecution and Maintenance
	  	 	41	 
	 8.4
	 	 Defense and Enforcement of Patents
	  	 	41	 
	 8.5
	 	 Lilly Patents (including any patents covering or claiming a Combination Invention) Excluding the
Lilly Compound Patents
	  	 	43	 
	 8.6
	 	 Patent Term Extensions
	  	 	44	 
			
	 ARTICLE 9
	 	 Representations, Warranties and Covenants; Compliance
	  	 	44	 
			
	 9.1
	 	 Mutual Representations and Warranties
	  	 	44	 
	 9.2
	 	 Additional Representations, Warranties and Covenants of Lilly
	  	 	45	 
	 9.3
	 	 Additional Representations, Warranties and Covenants of Licensee
	  	 	46	 
	 9.4
	 	 Disclaimer
	  	 	47	 
	 9.5
	 	 No Other Representations or Warranties
	  	 	47	 
	 9.6
	 	 Compliance
	  	 	47	 
	 9.7
	 	 Non-Competition
	  	 	48	 
			
	 ARTICLE 10
	 	 Indemnification
	  	 	49	 
			
	 10.1
	 	 Indemnification by Lilly
	  	 	49	 
	 10.2
	 	 Indemnification by Licensee
	  	 	49	 
	 10.3
	 	 Indemnification Procedures
	  	 	49	 
	 10.4
	 	 Limitation of Liability
	  	 	50	 
	 10.5
	 	 Insurance
	  	 	50	 
			
	 ARTICLE 11
	 	 Confidentiality
	  	 	51	 
			
	 11.1
	 	 Confidential Information
	  	 	51	 
	 11.2
	 	 Publicity
	  	 	53	 
	 11.3
	 	 Securities Filings
	  	 	53	 

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 11.4
	 	 Publications
	  	 	53	 
	 11.5
	 	 Use of Names
	  	 	53	 
	 11.6
	 	 Unauthorized Disclosure of Confidential Information
	  	 	54	 
	 11.7
	 	 Survival
	  	 	54	 
			
	 ARTICLE 12
	 	 Term and Termination
	  	 	54	 
			
	 12.1
	 	 Term
	  	 	54	 
	 12.2
	 	 Termination for Breach
	  	 	54	 
	 12.3
	 	 Termination as a Result of Bankruptcy
	  	 	54	 
	 12.4
	 	 Patent Challenge Termination by Lilly
	  	 	55	 
	 12.5
	 	 Termination Pursuant to Section 3.2.5
	  	 	55	 
			
	 ARTICLE 13
	 	 Effects of Expiration or Termination
	  	 	55	 
			
	 13.1
	 	 Effect on Licenses
	  	 	55	 
	 13.2
	 	 Program Transition
	  	 	55	 
	 13.3
	 	 Accrued Rights
	  	 	56	 
	 13.4
	 	 Survival
	  	 	56	 
	 13.5
	 	 Rights in Bankruptcy
	  	 	56	 
			
	 ARTICLE 14
	 	 Dispute Resolution
	  	 	57	 
			
	 ARTICLE 15
	 	 Miscellaneous
	  	 	57	 
			
	 15.1
	 	 Entire Agreement; Amendment
	  	 	57	 
	 15.2
	 	 Force Majeure
	  	 	57	 
	 15.3
	 	 Notices
	  	 	58	 
	 15.4
	 	 Assignment
	  	 	59	 
	 15.5
	 	 Offset Rights
	  	 	60	 
	 15.6
	 	 Severability
	  	 	60	 
	 15.7
	 	 Cumulative Remedies
	  	 	60	 
	 15.8
	 	 Ambiguities; No Presumption
	  	 	60	 
	 15.9
	 	 Headings
	  	 	60	 
	 15.10
	 	 Interpretation
	  	 	60	 
	 15.11
	 	 Governing Law; Equitable Relief; and Jurisdiction
	  	 	61	 
	 15.12
	 	 No Waiver
	  	 	62	 
	 15.13
	 	 No Third Party Beneficiaries
	  	 	62	 
	 15.14
	 	 Independent Contractors
	  	 	62	 
	 15.15
	 	 Counterparts; Facsimile Signatures
	  	 	62	 
	 15.16
	 	 Release of Claims
	  	 	62	 
	  
 SCHEDULES:

 
 Schedule 1.49 – Lilly Compound Patents

 
 Schedule 1.89 – Taladegib Chemical Structure

 
 Schedule 2.1 – Third Party Contracts for
On-Going Studies
	  			

  
 -iii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
	 Schedule 7.1 – Share Issuance Agreement
  

Schedule 11.4 – Press Release
	  	

  
 -iv- 

 AMENDED AND RESTATED 

LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 

This Amended and Restated License, Development and Commercialization Agreement (this “Agreement”), dated as of March 22,
2017 (the “Effective Date”), is made by and between Eli Lilly and Company, an Indiana corporation (“Lilly”), and Ignyta, Inc., a Delaware corporation (“Licensee”). Lilly and Licensee are sometimes
referred to herein individually as a “Party” and collectively as the “Parties”.  
 RECITALS

 WHEREAS, Lilly has developed the Compound (as defined below); 

WHEREAS, Licensee is interested in further developing and commercializing the Compound; 

WHEREAS, Lilly wishes to grant a license to Licensee under certain intellectual property rights related
to the Compound to develop, manufacture and commercialize Product (as defined below), and Licensee wishes to take such license, in each case in accordance with the terms and conditions set forth below; 

WHEREAS, Lilly desires to retain certain rights to the Compound to pursue combination therapies with the
Lilly Target Molecules (as defined below), and Licensee wishes to facilitate such combination activities, in each case, in accordance with the terms and conditions set forth below; 

WHEREAS, the Parties previously entered into that certain License, Development and Commercialization
Agreement (the “Original Agreement”), dated November 6, 2015 (the “Original Effective Date”), pursuant to which Lilly granted a license to Licensee under certain intellectual property rights related to the
Compound; and 
 WHEREAS, the Parties desire to amend and restate the Original Agreement in its
entirety as set forth below and the Parties acknowledge and agree that this Agreement satisfies the requirement of Section 15.1 of the Original Agreement that any amendment of the Original Agreement be in writing. 

NOW THEREFORE, in consideration of the foregoing premises and the mutual promises,
covenants and conditions contained in this Agreement, the Parties agree as follows: 
  

ARTICLE 1 
 DEFINITIONS

 As used in this Agreement, the following initially capitalized terms shall have the meanings set forth in this ARTICLE 1 or as
otherwise defined elsewhere in this Agreement: 

  
 1 

 1.1    “Affiliate” means any entity directly or indirectly
controlled by, controlling, or under common control with, a Person, but only for so long as such control shall continue. For purposes of this definition, “control” (including, with correlative meanings, “controlled by”,
“controlling” and “under common control with”) means (a) possession, direct or indirect, of the power to direct or cause direction of the management or policies of an entity (whether through ownership of securities or other
ownership interests, by contract or otherwise), or (b) beneficial ownership of more than fifty percent (50%) (or the maximum ownership interest permitted by Applicable Law) of the voting securities or other ownership or general partnership
interest (whether directly or pursuant to any option, warrant or other similar arrangement) or other comparable equity interests of an entity; provided, however, that where an entity owns a majority of the voting power necessary to elect a majority
of the board of directors or other governing board of another entity, but is restricted from electing such majority by contract or otherwise, such entity shall not be considered to be in control of such other entity until such time as such
restrictions are no longer in effect. 
 1.2    “Analytical Release Testing and Characterization” means
all activities associated with carrying out the analytical testing and release of the Product. Such activities shall include: transferring test methods, developing and validating new analytical tests required, amending the release specifications to
be in compliance with local Applicable Law, conducting the release testing of the Product and final release of the Product (including raw materials, intermediates, drug substance, and drug product). 

1.3    “Anti-Corruption Laws” means the U.S. Foreign Corrupt Practices Act, as amended, the UK Bribery
Act 2010, as amended, as well as Applicable Law related to the prevention of fraud, racketeering, money laundering or terrorism. 

1.4    “Applicable Law” means any applicable United States federal, state or local or foreign or
multinational law, statute, standard, ordinance, code, rule, regulation, resolution or promulgation, or any order, writ, judgment, injunction, decree, stipulation, ruling, determination or award entered by or with any Governmental Authority, or any
license, franchise, permit or similar right granted under any of the foregoing, or any similar provision having the force or effect of law. For the avoidance of doubt, any specific references to any Applicable Law or any portion thereof, shall be
deemed to include all then-current amendments thereto or any replacement or successor law, statute, standard, ordinance, code, rule, regulation, resolution, order, writ, judgment, injunction, decree, stipulation, ruling, or determination thereto.

 1.5    “[***] Agreement” means that certain agreement entered into between Lilly and [***] on
[***]. 
 1.6    “Business Day” means a day other than a Saturday, Sunday, or bank or other public
holiday in San Diego, California or Indianapolis, Indiana, United States. 
  

 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 2 

 1.7    “Calendar Quarter” means each three (3) month
period commencing January 1, April 1, July 1 or October 1 of any year; provided, however, that (a) the first Calendar Quarter of the Term shall extend from the Original Effective Date to the end of the first full Calendar
Quarter thereafter, and (b) the last Calendar Quarter of the Term shall end upon the expiration or termination of this Agreement. 

1.8    “Calendar Year” means the period beginning on the 1st of January and ending on the 31st of
December of the same year; provided, however, that (a) the first Calendar Year of the Term shall commence on the Original Effective Date and end on December 31 of the same year and (b) the last Calendar Year of the Term shall commence
on January 1 of the Calendar Year in which this Agreement terminates or expires and end on the date of termination or expiration of this Agreement. 

1.9    “Change of Control” means, with respect to a Party, (a) the sale or disposition to a Third
Party of substantially all of the assets of such Party to which the subject matter of this Agreement relates other than in conjunction with any of the transactions described in clauses (b) through (d) of this Section 1.9 (a
“Program Sale”), (b) the acquisition by a Third Party which constitutes one person, as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, together with any of such person’s
“affiliates” or “associates,” as such terms are defined in the Securities Exchange Act of 1934, other than an employee benefit plan (or related trust) sponsored or maintained by such Party or any of its Affiliates or persons
“acting in concert” as such term is used in the Internal Revenue Code, of more than fifty percent (50%) of the outstanding shares of voting capital stock of such Party, (c) the acquisition, merger or consolidation of a Party with or
into another Person, other than, in the case of this Section 1.9, an acquisition or a merger or consolidation of a Party in which the holders of shares of voting capital stock of such Party, immediately prior to such acquisition, merger or
consolidation will beneficially own, directly or indirectly, at least fifty percent (50%) of the shares of voting capital stock of the acquiring Third Party or the surviving entity in such acquisition, merger or consolidation, as the case may be,
immediately after such acquisition, merger or consolidation, or (d) the sale or disposition to a Third Party of all or substantially all of the assets of such Party. 

1.10    “Clinical Trial” means a clinical trial, including any phase I clinical trial, Phase II Clinical
Trial, Phase III Clinical Trial, or Phase IV Clinical Trial, as the case may be, and as any such trial is defined by an applicable Regulatory Authority. 

1.11    “Combination Invention” means an Invention that comprises the composition of matter of a Compound
in combination or conjunction with a Lilly Target Molecule. Such Inventions include fixed dose formulations, treatment regimens, articles of manufacture, methods of use, devices, and processes. 

1.12    “Commercialization Product” means any Compound (i) for which Licensee has obtained
Regulatory Approval or (ii) which is actively being developed by Licensee in a Clinical Trial as Licensee’s lead compound for the Compound program for Commercialization, or (iii) which is developed by Lilly for use in a Fixed Dose
Combination Product as described in Section 1.27(i). 

  
 3 

 1.13    “Commercialize” means, with respect to a compound or
product, to promote, market, distribute, Sell (and contract to Sell or, to the extent applicable, offer for sale), import, export, or otherwise commercially exploit or provide product support for such compound or product and to conduct activities,
other than Development or Manufacturing, in preparation for conducting the foregoing activities, including activities to produce commercialization support data and to secure and maintain market access and reimbursement.
“Commercializing” and “Commercialization” shall have correlative meanings. For the avoidance of doubt, Commercialization does not include Development and Manufacturing. 

1.14    “Commercially Reasonable Efforts” means, with respect to a Party’s efforts with respect to
any objective, those reasonable, good faith efforts and that level of resources required to accomplish such objective consistent with the general practices such Party would normally use to accomplish a similar objective under similar circumstances.
With respect to any efforts relating to the Development, Regulatory Approval, Manufacturing or Commercialization, as applicable, of the Compound or Product by a Party, generally or with respect to any particular country, such Party will be deemed to
have exercised Commercially Reasonable Efforts if such Party, subject to this Section 1.14, has exercised those efforts normally used by such Party, in the relevant country, with respect to a compound, product or product candidate, as
applicable (1) to which such Party or its Affiliates have similar rights, (2) which is of similar market potential in such country, and (3) which is at a similar stage in its development or product life cycle, as the Product, in each
case, taking into account, at the time such efforts are to be expended, issues of safety, efficacy or stability; product profile; stage of development or life cycle status; the competitive environment; market potential; the patent and other
proprietary position of the compound or product; the potential profitability of the compound or product; the cost-effectiveness of efforts or resources while optimizing profitability; the financial resources available; and other relevant scientific,
technical, operational and commercial factors. 
 Without limiting the foregoing, Commercially Reasonable Efforts requires, with respect to such
obligations, that Licensee: (x) promptly assign responsibility for such obligation to specific employee(s) who are held accountable for progress and monitor such progress on an on-going basis,
(y) set objectives for carrying out such obligations, and (z) allocate resources designed to advance progress with respect to such objectives. 

1.15    “Competing Products” means (i) Compounds, (ii) Products and/or (iii) any other
compounds or products that are useful for any oncology or dermatological indication containing a small or large molecule that [***] for Hedgehog or Smoothened. Notwithstanding the foregoing, Competing Products does not include (a) any Compound,
Product or Lilly Target Molecule to the extent contained in or comprising a Lilly Product (including one in development) or (b) [***]. 

1.16    “Compound” means (a) Taladegib, (b) any other compounds or molecules described
generically or specifically within any of the Lilly Compound Patents and (c) any salt, 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
 4 

 
free acid or base, crystal, co-crystal, hydrate, anhydrous form, solvate, isomer, regioisomer, or stereoisomer (including enantiomers and diastereoisomers
of (a) or (b)) described generically or specifically within any of the Lilly Compound Patents, in each case of (a), (b) and (c), in any dosage, form or formulation. 

1.17    “Compound Invention” means an Invention that comprises a composition of matter of a Compound
alone or in combination with a molecule other than a Lilly Target Molecule. 
 1.18    “Control” and
“Controlled by” means, with respect to any Know-How, Invention, Patent, technology, copyright, trademark or other intellectual property right, possession by a Party or its Affiliates (whether
by ownership, license grant or other means) of the legal right to grant the right to access or use, or to grant a license or a sublicense to, such Know-How, Invention, Patent Right, technology, copyright,
trademark or other intellectual property right as provided for herein without violating the proprietary rights of any Third Party or any terms of any agreement or other arrangement between such Party (or any of its Affiliates) and any Third Party.

 1.19    “Designated Officer” means, for Lilly, the President of Lilly’s Oncology Business Unit,
and, for Licensee, the Chief Operating Officer. 
 1.20    “Develop” means to research, develop,
analyze, test and conduct preclinical trials, Clinical Trials (including, for the avoidance of doubt, Phase IV Clinical Trials and any preclinical/clinical/CMC commitments following Regulatory Approval) and all other regulatory trials, as well as
any and all activities pertaining to manufacturing development, formulation development, medical affairs and lifecycle management (including the conduct of Phase IV Clinical Trials not explicitly for registrational purposes and non-interventional studies), including new indications, new formulations and all other activities, including regulatory activities, related to securing and maintaining Regulatory Approval.
“Developing” and “Development” shall have correlative meanings. 

1.21    “Development Activities” means those Development activities undertaken by or on behalf of a Party
with respect to a compound or product, including the On-Going Studies. 

1.22    “Dollar” or “$” means the legal tender of the United States of America. 

1.23    “Excluded Claim” means a dispute, controversy or claim between the Parties that concerns
(a) the validity or infringement, scope, enforceability or inventorship of a patent, trademark or copyright, (b) any antitrust, anti-monopoly or competition law, or (c) any breach of confidentiality obligations. 

1.24    “FDA” means the United States Food and Drug Administration and any successor Regulatory Authority
having substantially the same function. 
 1.25    “FD&C Act” means the U.S. Federal Food, Drug and
Cosmetic Act, as amended, and the regulations promulgated thereunder. 

  
 5 

 1.26    “First Commercial Sale” means, with respect to a
Royalty Product in any country, the first shipment of such Royalty Product to a Third Party in such country for end use or consumption of such Royalty Product in such country after Regulatory Approval of such Royalty Product in such country or, if
earlier, the invoicing of a Third Party for such shipment. 
 1.27    “Fixed Dose Combination Product”
means (i) a product that contains a Commercialization Product with a Lilly Target Molecule in finished dosage form (i.e. a “single pill”), (ii) a product containing the Commercialization Product and a separate product
containing or comprising a Lilly Target Molecule, which Commercialization Product and separate product are in separate final dosage forms, and packaged together with appropriate labeling or (iii) a combination therapy that includes a Compound
(other than a Commercialization Product) and a separate Lilly Target Molecule, which Compound and separate Lilly Target Molecule are approved by a Regulatory Authority as separate final dosage forms indicated for use in combination and which Lilly
is selling pursuant to Section 5.2.3(a). 
 1.28    “Force Majeure” means any circumstances
whatsoever which are not within the reasonable control of the Party affected thereby, potentially including an act of God, war, act of terrorism, insurrection, riot, strike or labor dispute, shortage of materials, fire, explosion, flood, government
requisition or allocation, breakdown of or damage to plant, equipment or facilities, interruption or delay in transportation, fuel supplies or electrical power, embargo, boycott, order or act of civil or military authority. 

1.29    “Fully Burdened Manufacturing Cost” means the fully-burdened aggregate reasonable direct and
indirect costs and expenses incurred and recorded by a Party in Manufacturing a Product consisting solely of: 

(a)    direct labor costs (salaries, wages, employee benefits, overtime costs and shift premiums); 

(b)    direct materials (including raw materials and intermediates and packaging) costs; 

(c)    operating costs of facilities and equipment (including start up and cleaning costs of production); 

(d)    quality, release and in-process control costs; 

(e)    charges for reasonable spoilage, scrap or rework costs; 

(f)    amounts (without markup) that are paid to a Third Party, in connection with the Manufacture of a Product or any
component thereof; 
 (g)    any non-refundable or non-creditable indirect taxes, customs and excise duties, or similar taxes paid or payable to any Third Party or Affiliate in relation to the Manufacture of any portion of a Product; and 

  
 6 

 (h)    the reasonable allocation of facility overhead, both fixed and
variable, to such Manufacturing operation (including the allocable costs of administrators and managers overseeing manufacturing and production) maintenance, engineering, safety, finance, capital equipment depreciation to the extent such capital
equipment is utilized with respect to Product, supply chain management, management of agreements with Third Party contract manufacturers, and inventory write off. 

In each case of Sections 1.29(a)-(h), inclusive, solely to the extent specifically identifiable to the Manufacture of such Product as determined in accordance
with GAAP. 
 Under no circumstances will Fully Burdened Manufacturing Cost include any costs associated with excess capacity or idle plant and subject to
Section 1.29(f) above. 
 1.30    “Generic Product” means, with respect to a Royalty Product and a
country, any pharmaceutical product that is distributed by a Third Party (that is not licensed by the relevant Selling Party) in such country (i) under a Regulatory Approval approved by a Regulatory Authority in reliance, in whole or in part,
on the Regulatory Approval for such Royalty Product, including any product authorized for sale (a) in the United States pursuant to Section 505(b)(2) or 505(j) of the FD&C Act (21 U.S.C. 355(b)(2) and 355(j), respectively), (b) in
the EU pursuant to Article 10(1), Article 10(4) or Article 10a of Directive 2001/83/EC as amended, or (c) in any other country or jurisdiction pursuant to all equivalents of such provisions in (a) and (b), and (ii) which product
(a) contains the same active pharmaceutical ingredient(s) as such Royalty Product, (b) is approved based in part upon clinical data generated and used for obtaining Regulatory Approval of such Product, and (c) solely with respect to a
505(j) Regulatory Approval or foreign equivalent (but expressly excluding 505(b)(2) or its foreign equivalent) is approved for at least one of the same indication(s) as such Royalty Product in such country and is approved for the same method of
administration as such Royalty Product in such country. 
 1.31    “Good Clinical Practices” or
“GCP” means all applicable Good Clinical Practice standards for the design, conduct, performance, monitoring, auditing, recording, analyses and reporting of clinical trials, including, as applicable, (i) as set forth in the
International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use (“ICH”) Harmonized Tripartite Guideline for Good Clinical Practice (CPMP/ICH/135/95), (ii) the Declaration of
Helsinki (2004) as last amended at the 52nd World Medical Association in October 2000 and any further amendments or clarifications thereto, (iii) U.S. Code of Federal Regulations Title 21, Parts 50 (Protection of Human Subjects), 56
(Institutional Review Boards) and 312 (Investigational New Drug Application), as may be amended from time to time, and (iv) the equivalent Applicable Law in any relevant country, each as may be amended and applicable from time to time and in
each case, that provide for, among other things, assurance that the clinical data and reported results are credible and accurate and protect the rights, integrity, and confidentiality of trial subjects. 

1.32    “Good Laboratory Practices” or “GLP” means all applicable Good Laboratory
Practice standards, including, as applicable, (i) as set forth in the then-current good laboratory practice standards promulgated or endorsed by the FDA as defined in 21 C.F.R. Part 58, and 

  
 7 

 
(ii) the equivalent Applicable Law in any relevant country, each as may be amended and applicable from time to time. 

1.33    “Good Manufacturing Practices” or “GMP” means all applicable Good Manufacturing
Practices including, as applicable, (i) the principles detailed in the U.S. Current Good Manufacturing Practices, 21 C.F.R. Sections 210, 211, 601 and 610, (ii) the principles detailed in the ICH Q7 guidelines, and (iii) the
equivalent Applicable Law in any relevant country, each as may be amended and applicable from time to time. 

1.34    “Government Official” means: (i) any official, officer, employee, representative, or anyone
acting in an official capacity on behalf of: (a) any government or any department or agency thereof; (b) any public international organization (such as the United Nations, the International Monetary Fund, the International Red Cross, or
the World Health Organization), or any department, agency, or institution thereof; or (c) any government-owned or controlled company, institution, or other entity, including a government-owned hospital or university; (ii) any political
party or party official; and (iii) any candidate for political office. 
 1.35    “Governmental
Authority” means any United States federal, state or local, or any foreign, government or political subdivision thereof, or any multinational organization or authority, or any authority, agency or commission entitled to exercise any
administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any governmental arbitrator or arbitral body. For clarity, any Regulatory
Authority shall be a Governmental Authority. 
 1.36    “Healthcare Professional” or
“HCP” means any person (including any physician, physician’s assistant, nurse practitioner, radiologist, pathologist or other medical professional where so licensed) licensed to prescribe, administer, or dispense drugs who is
in a position to directly influence or recommend the prescription or purchase of Product; provided, that non-prescribing support staff (e.g., nurses) shall also be considered an HCP hereunder to the extent
such support staff is in a position to directly influence the prescription or purchase of Product by a person with prescribing authority. 

1.37    “IND” means an investigational new drug application, clinical trial authorization or similar
application or submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority. 

1.38    “Invented” means the acts of (an) inventor(s), as determined in accordance with Applicable Law
relating to inventorship set forth in the patent laws of the United States (Title 35, United States Code), in discovering, conceiving and reducing to practice an Invention. 

1.39    “Invention” means any discovery or invention, whether or not patentable, conceived or otherwise
made by either Party, or by both Parties, under this Agreement. 

  
 8 

 1.40    “Joint Invention” means an Invention that is
Invented jointly by an employee of, or Person under an obligation of assignment to, each of Lilly and Licensee or their respective Affiliates. 

1.41    “Know-How” means all technical, scientific, regulatory
and other information, results, knowledge, techniques and data, in whatever form and whether or not confidential, patented or patentable, including Inventions, invention disclosures, discoveries, plans, processes, practices, methods, knowledge,
trade secrets, know-how, instructions, skill, experience, ideas, concepts, data (including biological, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical, safety, quality
control, and preclinical and clinical data), formulae, formulations, compositions, specifications, marketing, pricing, distribution, cost, sales and manufacturing data or descriptions. Know-How does not
include any Patent claiming any of the foregoing. 
 1.42    “Licensed Field” means any and all uses
and applications, outside of the Reserved Field. 
 1.43    “Licensee Invention” means an Invention,
other than a Combination Invention, that is Invented, solely or jointly with a Third Party, by an employee of Licensee or its Affiliates or a Person under an obligation of assignment to Licensee or its Affiliates. 

1.44    “Licensee Know-How” means any and all Know-How, whether or not patented or patentable, to the extent Controlled by, or on behalf of, Licensee or its Affiliates as of the Original Effective Date or at any time during the Term that is necessary in
connection with the Development, Manufacture, Commercialization or other use of the Compound or Product; provided, that this Section 1.44 shall be subject to subclause (iii) of Section 15.4. 

1.45    “Licensee Patent” means any Patent that (i) (a) is Controlled by Licensee (or its
Affiliates) as of the Original Effective Date or comes under the Control of Licensee (or its Affiliates) during the Term (other than as a result of the licenses granted by Lilly to Licensee under this Agreement) and (b) that would be infringed
by the Development, Manufacture, Commercialization or use of the Compound or Product or that claims or covers Licensee Know-How or (ii) a Licensee Collaboration Patent; provided, that this
Section 1.45 shall be subject to subclause (iii) of Section 15.4. 
 1.46    “Licensee Reserved
Target(s)” means any of the following Targets: [***]. 
 1.47    “Licensee Technology” means
Licensee Know-How and Licensee Patents. 
 1.48    “Lilly Compound
Patent” means (i) the Patents listed on Schedule 1.48 hereto and (ii) any Patents which claim priority to or through any of the foregoing Patents and (iii) any foreign equivalents to any of the
foregoing. For clarity, Schedule 1.48 is the same as Schedule 1.49 attached to the Original Agreement. 

  
  

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 1.49    “Lilly Invention” means (i) an Invention, other
than a Compound Invention, that is Invented solely or jointly with a Third Party, by an employee of Lilly or its Affiliates or a Person under an obligation of assignment to Lilly or its Affiliates or (ii) a Combination Invention. 

1.50    “Lilly Know-How” means any and all Know-How, whether or not patented or patentable, to the extent Controlled by Lilly or its Affiliates as of the Original Effective Date or at any time during the Term that is necessary in connection with the
Development, Manufacture, Commercialization or other use of the Compound or Product. 
 1.51    “Lilly
Patent” means any Patent that (a) is Controlled by Lilly (or its Affiliates) as of the Original Effective Date or comes under the Control of Lilly (or its Affiliates) during the Term (other than as a result of the licenses granted by
Licensee to Lilly under this Agreement) and (b) that would be infringed by the Development, Manufacture, Commercialization or use of a Compound or Product or that claims or covers Lilly Know-How. For
clarity, Lilly Compound Patents are a subset of Lilly Patents. 
 1.52    “Lilly Product” means a Fixed
Dose Combination Product or a Non-Fixed Dose Combination Product that is, in each case, Controlled by Lilly or its Affiliates, including any such product that is sold by a sublicensee of Lilly or its
Affiliates under the rights granted to Lilly under Section 2.2. 
 1.53    “Lilly Target” means
(i) gamma secretase/NOTCH, (ii) PD-L1/PD-1, (iii) TGF-b, (iv) PI3K-AKT-MTOR and (v) ERK. 

1.54    “Lilly Target Molecule” means a molecule that is directed against a Lilly Target and that has
[***] for such Target; provided, however, that the following shall be deemed not to be a Lilly Target Molecule: any compound or product that (i) with respect to Development Activities, Lilly or its Affiliate is Developing with [***], or
(ii) with respect to Commercialization activities, [***]. Notwithstanding the foregoing, “Lilly Target Molecule” does not include any molecule that is being Developed or Commercialized by Licensee. 

1.55    “Lilly Technology” means Lilly Know-How and Lilly
Patents. 
 1.56    “Manufacture” or “Manufacturing” or
“Manufactured” means, with respect to a compound or product, the receipt, handling and storage of active pharmaceutical ingredients, drug substance or drug product, medical devices and other materials, the manufacturing, processing,
packaging and labeling, holding (including storage), quality assurance and quality control testing (including release) of such compound or product (other than quality assurance and quality control related to development of the manufacturing process,
which activities shall be considered Development Activities) and shipping of such compound or product. 

  
  

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 1.57    “Marketing Authorization Application” or
“MAA” means an application to the appropriate Regulatory Authority for approval to sell the Product (but excluding Pricing Approval) in any particular country or regulatory jurisdiction. 

1.58    “Medical Science Liaison” means an individual who is employed by or on behalf of Licensee or its
Affiliates and who provides educational services and other educational efforts directed towards the medical and/or scientific community. 

1.59    “Net Sales” means, with respect to a Royalty Product, the gross amount invoiced by a Selling
Party thereof to non-Related Party Third Parties for such Royalty Product, less: 

(a)    trade, quantity and cash discounts allowed; 

(b)    discounts, refunds, rebates, chargebacks, retroactive price adjustments, and any other allowances that effectively
reduce the net selling price; 
 (c)    Royalty Product returns and allowances; 

(d)    wholesaler inventory management fees; 

(e)    allowance for distribution expenses; and 

(f)    any tax imposed on the production, sale, delivery or use of such Royalty Product, including, sales, use, excise or
value added taxes, or the annual fee imposed on the pharmaceutical manufacturers by the U.S. government. 
 Such amounts shall be determined from the books
and records of the Selling Party maintained in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) or, in the case of sublicensees, such similar accounting principles, consistently applied. The
Selling Party further agrees in determining such amounts, it will use (or cause to be used, as applicable) the Selling Party’s then current standard procedures and methodology, including the Selling Party’s then current standard exchange
rate methodology for the translation of foreign currency sales into U.S. Dollars or, in the case of sublicensees, such similar methodology, consistently applied, or a reputable source such as the Wall Street Journal or Reuters. 

In no event shall any particular amount of deduction identified above be deducted more than once in calculating Net Sales (i.e., no “double
counting” of deductions). 
 1.60    “Non-Fixed Dose Combination
Product” means a combination therapy (other than a Fixed Dose Combination Product) that includes a Commercialization Product prescribed for use in combination with a Lilly Target Molecule. For clarity, Commercialization Product shall be
deemed to be prescribed for use in combination with a Lilly Target Molecule where a prescription for such Commercialization Product on a unit basis is dispensed resulting from a 

  
 11 

 
prescription from an HCP to a patient, and, [***], a prescription for such Lilly Target Molecule on a unit basis is dispensed resulting from a prescription written by the same HCP (or a colleague
or employee thereof) to the same patient, in each case based on Prescription Data. 

1.61    “On-Going Studies” means the following Clinical Trials
involving the Product: (1) that certain Clinical Trial with a clinicaltrial.gov identifier NCT01919398; (2) that certain Clinical Trial with ISRCTN Registry Number 15903698; and (3) that certain Clinical Trial with a clinicaltrial.gov
identifier NCT02530437. The Parties acknowledge and agree that the Clinical Trial with a clinicaltrial.gov identifier NCT01226485 (the “HHBB Study”) was an On-Going Study under the Original
Agreement, but that responsibility for the HHBB Study has been transitioned from Lilly to Licensee and that the HHBB Study is not an On-Going Study under this Agreement. 

1.62    “Patents” means any and all (a) issued patents, (b) pending patent applications,
including all provisional applications, substitutions, continuations, continuations-in-part, divisionals and renewals, and all patents granted thereon, (c) patents-of-addition, reissues, reexaminations and extensions or restorations by existing or future extension or restoration mechanisms, including patent term
adjustments, patent term extensions, supplementary protection certificates or the equivalent thereof, (d) inventor’s certificates, (e) other forms of government-issued rights substantially similar to any of the foregoing, and
(f) United States and foreign counterparts of any of the foregoing. 
 1.63    “Patent Term
Extension” means any term extensions, supplementary protection certificates, Regulatory Exclusivity and equivalents thereof offering Patent protection beyond the initial term with respect to any issued Patents. 

1.64    “Person” means any individual, firm, corporation, partnership, limited liability company, trust,
business trust, joint venture, Governmental Authority, association or other entity. 
 1.65    “Phase II
Clinical Trial(s)” means a human clinical trial of a compound or product for an indication, the principal purpose of which is a determination of safety and efficacy for such indication in the target patient population as described in 21
C.F.R. §312.21(b), or similar clinical trial in a country other than the US. 
 1.66    “Phase III Clinical
Trial(s)” means a human clinical trial of a compound or product for an indication on a sufficient number of subjects that is designed to establish that the compound or product is safe and efficacious for its intended use, and to determine
warnings, precautions, and adverse reactions that are associated with the compound or product in the dosage range to be prescribed, and to support Regulatory Approval of the compound or product for such indication or label expansion of the compound
or product. For clarity, the term “Phase III Clinical Trials” includes early access and compassionate use programs. 

  
  

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 1.67    “Phase IV Clinical Trial(s)” means a human clinical
trial, or other test or study, of a compound or product for an indication that is commenced after receipt of the initial Regulatory Approval for such indication in the country for which such trial is being conducted and that is conducted within the
parameters of the Regulatory Approval for the compound or product for such indication (and which may include investigator sponsored clinical trials), including a clinical trial conducted due to the request or requirement of a Regulatory Authority or
as a condition of a previously granted Regulatory Approval. 

1.68    “Pre-Marketing” means all sales and marketing activities
undertaken prior to and in preparation for the launch of the Product. Pre-Marketing shall include market research, key opinion leader development, advisory boards, medical education, disease-related public
relations, health care economic studies, sales force training and other pre-launch activities prior to the First Commercial Sale of the Product in a given country or other regulatory jurisdiction. 

1.69    “Prescription Data” means one or more data sets provided to Licensee by a Third Party
prescription data service that reports prescriptions dispensed for a pharmaceutical or biologic product (by individual prescriber and by patient) during a specified time period. If during the Term no Prescription Data exists that meets such
criteria, then the Parties will cooperate in good faith to ascertain a reasonable method for measuring prescriptions written for the Product (by individual prescriber and/or by patient) during a specified time period, which method shall be
implemented at Licensee’s reasonable expense. 
 1.70    “Pricing Approval” means, with respect to
any country where a Governmental Authority authorizes reimbursement or access, or approves or determines pricing for pharmaceutical products, receipt (or, if required to make such authorization, approval of determination effective publication) of
such reimbursement or access authorization or pricing approval or determination (as the case may be). 

1.71    “Product” means any pharmaceutical product, other than a Lilly Product, containing or comprising
the Compound, whether or not as the sole active ingredient, and in any dosage, form or formulation; provided, however, that the following shall be deemed not to be a Product: any combination product (whether in a fixed dose or otherwise) that
combines Compound or Product with another product, which other product (i) with respect to Development Activities, Licensee or its Affiliate is Developing [***], or (ii) with respect to Commercialization activities, has [***]. For clarity,
(a) Product does not include a Fixed Dose Combination Product, but, subject to the proviso at the end of the foregoing sentence, includes the Compound combined in a single product with molecules other than Lilly Target Molecules and
(b) Product includes all Commercialization Products. 
 1.72    “Product Approval” means the
approval of a Governmental Authority necessary for the marketing and sale of a Product in a given country or regulatory jurisdiction, which may include the approval of an MAA (but shall not include any Pricing Approvals). 

  
  

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 1.73    “Product Complaint” means any written, verbal or
electronic expression of dissatisfaction regarding any Product sold by or on behalf of a Selling Party, including reports of actual or suspected product tampering, contamination, mislabeling or inclusion of improper ingredients. 

1.74    “Product Specifications” means those Manufacturing, performance, quality-control, and Packaging
and Labeling specifications for the Product, as such specifications may be amended from time to time pursuant to the terms of this Agreement. 

1.75    “Promotional Materials” means, all written, printed, video or graphic advertising, promotional,
educational and communication materials (other than the Product labels and package inserts) for marketing, advertising and promoting of the Product in the Licensed Field, for use (i) by a Sales Representative or a Medical Science Liaison or
(ii) in advertisements, web sites or direct mail pieces. 
 1.76    “Regulatory Approval” means,
with respect to any Product or Lilly Product in any regulatory jurisdiction for a given indication, approval from the applicable Regulatory Authority permitting the manufacture, distribution, use and sale of such product in such regulatory
jurisdiction for such indication in accordance with Applicable Law, including any Pricing Approvals. 

1.77    “Regulatory Authority” means, in a particular country or regulatory jurisdiction, any applicable
Governmental Authority involved in granting Regulatory Approval and/or, to the extent required in such country or regulatory jurisdiction, governmental Pricing Approval of a compound or product in such country or regulatory jurisdiction. 

1.78    “Regulatory Data” means any and all research data, pharmacology data, chemistry, manufacturing
and control data, preclinical data, clinical data and all other documentation submitted, or required to be submitted, to Regulatory Authorities in association with regulatory filings for the Product (including any applicable Drug Master Files
(“DMFs”), Chemistry, Manufacturing and Control (“CMC”) data, or similar documentation), in each case of the foregoing to the extent Controlled by the applicable Party. 

1.79    “Regulatory Exclusivity” means any exclusive marketing rights or data exclusivity rights
conferred by any Governmental Authority with respect to a Product or a Lilly Product other than a Patent right. 

1.80    “Regulatory Materials” means regulatory applications, submissions, notifications, communications,
correspondence, registrations, Regulatory Approvals and/or other filings made to, received from or otherwise conducted with a Regulatory Authority that are necessary in order to Develop, Manufacture, obtain marketing authorization, market, sell or
otherwise Commercialize a Product or a Lilly Product in a particular country or regulatory jurisdiction. Regulatory Materials include INDs, MAAs, presentations, responses, and applications for other Product Approvals. 

  
 14 

 1.81    “Related Parties” means Licensee’s Affiliates
and sublicensees of the rights granted to Licensee hereunder (excluding distributors). 
 1.82    “Released
Claims” means any and all claims, demands, sums of money, actions, rights, causes of action, obligations and liabilities of any kind or nature whatsoever which Releasors, or any of them, has, may have had or claim to have had, now has or
claims to have, against any of Releasees, whether known or unknown, or accrued or unaccrued, arising out of the Original Agreement. 

1.83    “Reserved Field” means the use of a [***]. 

1.84    “Royalty Product” means a Product or Lilly Product, as applicable. 

1.85    “Royalty Term” means, with respect to a Royalty Product on a country-by-country and product-by-product basis, the period of time beginning on the First Commercial Sale of such Royalty
Product in such country and ending the later of (a) the expiration of the last to expire Valid Claim of a Lilly Compound Patent or Licensee Patent in such country, or (b) ten (10) years from the First Commercial Sale of such Royalty
Product in such country. 
 1.86    “Sales Representative” means an individual who is employed by a
Party and who performs details and other promotional efforts with respect to the Product. 

1.87    “Sell” means to introduce into the commercial supply chain; provided, that, for clarity, Sell
shall not include performing details or other promotional efforts. 
 1.88    “Selling Party” means
(a) with respect to Product, Licensee or a Related Party; and (b) with respect to Lilly Product, Lilly or Lilly’s Affiliate or a Third Party granted the right to sell such Lilly Product by Lilly or Lilly’s Affiliate (excluding
distributors). 
 1.89    “Taladegib” means that certain compound internally designated by Lilly as
LY2940680, and having the chemical structure and other defining characteristics, set forth on Schedule 1.89.  

1.90    “Target” means a node contained within a molecular pathway associated with a disease to which a
compound is directed to modulate the disease.    For clarity, Target shall be deemed the same Target for a ligand, or enzyme and its binding partner or receptor (for example: (i) if VEGFR2 is named as the Target, VEGF ligand
shall be deemed to be the same Target and vice versa, and (ii) MAP kinase would be a molecular pathway, and hence not a Target, but MEK is a node in the MAP kinase molecular pathway and hence could be a Target). 

1.91    “Third Party” means any Person other than Lilly, Licensee or their respective Affiliates. 

  
  

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 1.92    “United States” or “U.S.” means the
United States of America and its possessions and territories. 
 1.93    “Valid Claim” means, with
respect to a particular country, (a) a claim of an issued and unexpired Patent that (i) has not been specifically held permanently revoked, unenforceable or invalid by a decision of a court or other Governmental Authority of competent
jurisdiction, which decision is unappealed or unappealable within the time allowed for appeal, and (ii) has not been cancelled, withdrawn, abandoned, disclaimed or admitted to be invalid or unenforceable through reissue, disclaimer or
otherwise, or (b) a bona fide claim of a pending patent application filed in good faith included within a Patent that has not been (i) cancelled, withdrawn or abandoned without being re-filed in
another application in the applicable jurisdiction, or (ii) finally rejected by an administrative agency action from which no appeal can be taken or that has not been appealed within the time allowed for appeal; provided, that any claim in any
patent application pending for more than [***] from the earliest date on which such patent application claims priority shall not be considered a Valid Claim for purposes of the Agreement from and after such [***] date unless and until a patent
containing such claim issues from such patent application. 
 1.94    Additional Definitions. The following terms
have the meanings set forth in the corresponding Sections of this Agreement: 
  

  
  

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	 Term
	 	 Section

	 “Agreement”
	 	Preamble
	 “Audit”
	 	7.10
	 “Bankrupt Party”
	 	13.5
	 “Binding Affinity”
	 	1.15
	 “Breaching Party”
	 	12.2
	 “Claim”
	 	10.1
	 “CMC”
	 	1.78
	 “Commercialization Data”
	 	5.9
	 “Compound-Specific Assignee Patent”
	 	15.4
	 “Confidential Information”
	 	11.1.1
	 “Courts”
	 	15.11.3
	 “Cure Period”
	 	12.2
	 “Development Data”
	 	3.5
	 “Dispute”
	 	ARTICLE 14
	 “DMFs”
	 	1.78
	 “eCTD”
	 	4.1
	 “Effective Date”
	 	Preamble
	 “GAAP”
	 	1.59
	 “HHBB Study”
	 	1.61
	 “ICH”
	 	1.31
	 “Indemnified Party”
	 	10.3.1
	 “Indemnifying Party”
	 	10.3.1
	 “Infringement Claim”
	 	8.4.1
	 “Licensee”
	 	Preamble
	 “Licensee Collaboration Patents”
	 	8.1.1
	 “Lilly”
	 	Preamble
	 “Lilly Collaboration Patents”
	 	8.1.1

			
	 Term
	 	 Section

	 “Losses”
	 	10.1
	 “Milestone Notification Notice”
	 	7.3
	 “Original Agreement”
	 	Preamble
	 “Original Effective Date”
	 	Preamble
	 “Packaging and Labeling”
	 	6.2
	 “Party” or “Parties”
	 	Preamble
	 “Pre-Existing Acquirer Product”
	 	9.7.2
	 “Pre-Existing Sublicensee
Product”
	 	2.4.2
	 “Product Trade Dress”
	 	5.8.1
	 “Product Trademark”
	 	5.8.1
	 “Program Sale”
	 	1.9
	 “Quality Agreement”
	 	6.3.3
	 “Recovery”
	 	8.4.2(c)(iv)
	 “Regulatory Support”
	 	4.7
	 “Releasee”
	 	15.16
	 “Releasor”
	 	15.16
	 “Shares”
	 	7.1
	 “Share Issuance Agreement”
	 	7.1
	 “Sublicensee”
	 	2.4.2
	 “Sublicense Notice”
	 	2.4.2
	 “Supply Agreement”
	 	6.3.3
	 “Term”
	 	12.1
	 “Third Party Patent”
	 	7.4.4(b)
	 “Upfront Payment”
	 	7.1
	 “U.S. Bankruptcy Code”
	 	13.5
	 “VAT”
	 	7.6.1

 
 

  
 ARTICLE 2 

LICENSES 

2.1    Grant to Licensee. Subject to the terms and conditions of this Agreement, including the rights granted by
Licensee to Lilly under Section 2.2, Lilly hereby grants to Licensee during the Term an exclusive (even as to Lilly and its Affiliates, but, subject to the non- 

  
 17 

 
exclusive rights granted to Third Parties pursuant to the [***] Agreement and the contracts listed in Schedule 2.1), worldwide, payment-bearing license with the right to
sublicense in accordance with Section 2.4.2, under and with respect to the Lilly Technology, to Develop, Manufacture, have Manufactured and Commercialize Products and/or Compounds (for clarity any Commercialization of a Compound shall be as a
Product). 
 2.2    Grant to Lilly. Subject to the terms and conditions of this Agreement, Licensee, together
with its Affiliates, hereby grants to Lilly an exclusive (even as to Licensee and its Affiliates, but subject to the right of Licensee to Manufacture and have Manufactured the Commercialization Products and to Sell the Commercialization Products in
the Reserved Field in accordance with this Agreement), worldwide, payment-bearing license, with the right to sublicense, under the Licensee Technology and Lilly Technology, to Develop, Manufacture and Commercialize Lilly Products; provided, that
(a) the right of Lilly to Manufacture, or have Manufactured on its behalf, Compound is subject to Section 6.3, and (b) the right of Lilly to Sell the Commercialization Product component of a
Non-Fixed Dose Combination Product is subject to Section 5.2.3(a), in each case, solely in and for the Reserved Field. For clarity, the license granted under this Section 2.2 includes the right for
Lilly to Develop a Compound for formulation with a Lilly Target Molecule in a final dosage form. 
 2.3    Additional
Licensing Provisions. 
 2.3.1    Negative Covenant. 

(a)    Each Party covenants that it will not use or practice any of the other Party’s Patent rights or other
intellectual property rights licensed (or sublicensed, as applicable) to it under this ARTICLE 2, except for the purposes expressly permitted in the applicable license grant. 

(b)    Licensee covenants that, consistent with and subject to the scope of the licenses granted under ARTICLE 2, with
respect to the Lilly Technology and the Reserved Field, it shall (i) not conduct any Development Activities using the Lilly Technology in the Reserved Field, (ii) only conduct those manufacturing activities using the Lilly Technology in
and for the Reserved Field as expressly permitted herein, and (iii) only Sell Product using the Lilly Technology in the Reserved Field as expressly permitted herein, and conduct no other commercialization activities using the Lilly Technology
in the Reserved Field. The foregoing covenant shall not be applicable to any activity if the only Lilly Technology that would be infringed or misappropriated by conducting such activity is Lilly Know-How that
is no longer subject to treatment as Confidential Information consistent with Section 11.1.1. 
 (c)    Lilly
covenants that, consistent with and subject to the scope of the licenses granted under ARTICLE 2, with respect to the Licensee Technology and the Licensed Field, it shall (i) not conduct any Development Activities using the Licensee Technology
in the Licensed Field, (ii) only conduct those manufacturing activities using the Licensee Technology 

  
  

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 18 

 
in and for the Reserved Field as expressly permitted herein, and (iii) only Sell Lilly Products using the Licensee Technology in the Reserved Field as expressly permitted herein, and conduct
no other commercialization activities using the Licensee Technology outside the Reserved Field. The foregoing covenant shall not be applicable to any activity if the only Licensee Technology that would be infringed or misappropriated by conducting
such activity is Licensee Know-How that is no longer subject to treatment as Confidential Information consistent with Section 11.1.1. 

2.3.2    No Implied Licenses; Retained Rights. Except as explicitly set forth in this Agreement, neither Party
grants any license, express or implied, under its intellectual property rights to the other Party, whether by implication, estoppel or otherwise, and each Party hereby agrees that it does not have rights under any intellectual property of the other
Party that are broader than the licenses expressly granted herein. 
 2.4    Performance by Affiliates, Third Party
Contractors and Sublicensees. 
 2.4.1    Performance by Affiliates and Third Party Contractors. The Parties
recognize that each may perform some or all of its obligations under this Agreement through Affiliates and/or Third Party vendors or service providers (“Third Party Contractors”); provided, however, that each Party shall remain
responsible for and be guarantor of the performance by its Affiliates and Third Party Contractors and shall cause its Affiliates and Third Party Contractors to comply with the provisions of this Agreement in connection with such performance. Each
Party hereby expressly waives any requirement that the other Party exhausts any right, power or remedy, or proceed against an Affiliate or Third Party Contractor, for any obligation or performance hereunder prior to proceeding directly against such
Party. Wherever in this Agreement the Parties delegate responsibility to Affiliates or Third Party Contractors, the Parties agree that such entities may not make decisions inconsistent with this Agreement, amend the terms of this Agreement or act
contrary to its terms in any way. 
 2.4.2    Sublicensees. Licensee shall have the full right (but not the
obligation) to sublicense those rights granted to it under Section 2.1 to a Third Party, including through multiple tiers of sublicense to Third Parties (each such Third Party, a “Sublicensee”); provided, however, that,
Licensee may not grant any such sublicense without (i) Licensee providing prior written notice (at least twenty (20) Business Days in advance) to Lilly, which shall include a description of the rights to be granted and the purpose
therefor, the identity of the Third Party and the countries involved (a “Sublicense Notice”), and (ii) Lilly’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Within fifteen
(15) Business Days of receipt of any Sublicensee Notice, Lilly shall respond in writing to Licensee either (x) consenting to the grant of such sublicense or (y) rejecting such sublicense if Lilly in good faith believes that it has
reasonable grounds for withholding its consent to such sublicense. If Lilly fails to provide such written response within fifteen (15) Business Days of receipt of such Sublicense Notice, then, effective upon the expiration of such fifteen
(15) Business Day period, Lilly shall be deemed to have consented to the grant of the sublicense described in such Sublicense Notice. Licensee shall remain responsible for the performance of all Sublicensees. For clarity, Third Party
Contractors performing Product Development, Manufacturing or other services on behalf and for the benefit of Licensee shall not be considered Sublicensees, unless they are granted a sublicense under the rights granted to Licensee under
Section 2.1, in which 

  
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case such a Third Party Contractor will also be a Sublicensee (or potential Sublicensee) subject to this Section 2.4.2. With respect to any Sublicensee granted a sublicense to any
Commercialization rights hereunder, Licensee shall ensure that each Sublicensee accepts in writing all applicable terms and conditions of this Agreement, including the non-competition, reporting, audit,
inspection and confidentiality provisions hereunder; provided, that, with respect to the non-competition clause set forth in Section 9.7, a Sublicensee shall not be prohibited from continuing to develop
and/or commercialize a compound or product with respect to which [***] has occurred at the time of, or is being commercialized by such Sublicensee prior to, the effective date of the sublicense (a
“Pre-Existing Sublicensee Product”); provided, further, that under no circumstances may such Sublicensee use the Lilly Technology subject to such sublicense in the development and
commercialization of such Pre-Existing Sublicensee Product. For the avoidance of doubt, (a) Licensee will remain directly responsible for all amounts owed to Lilly under this Agreement, and (b) each
Sublicensee is subject to the negative and restrictive covenants set forth in Sections 2.3.1 and 2.5, respectively. Licensee hereby expressly waives any requirement that Lilly exhaust any right, power or remedy, or proceed against a Sublicensee, for
any obligation or performance hereunder prior to proceeding directly against Licensee. 
 2.5    Restrictive
Covenants. Licensee hereby covenants and agrees that it shall not (and shall cause its Related Parties not to), either directly or indirectly, Develop or market (i) the Product for use outside the Licensed Field or (ii) any product(s),
including Product, in or for the Reserved Field. Without limiting the generality of the foregoing, Licensee (and its Related Parties) shall not engage in any advertising activities relating to the Product directed to use outside the Licensed Field.
It is the desire and intent of the Parties that the restrictive covenants contained in this Section 2.5 be enforced to the fullest extent permissible under Applicable Law and public policies applied in each jurisdiction in which enforcement is
sought. Lilly and Licensee believe that the restrictive covenants in this Section 2.5 are valid and enforceable. However, if any restrictive covenant should for any reason become or be declared by a competent court or competent authority to be
invalid or unenforceable in any jurisdiction, such restrictive covenant shall be deemed to have been amended to the extent necessary in order that such provision be valid and enforceable, such amendment shall apply only with respect to the operation
of such provision of this Section 2.5 in the particular jurisdiction in which such declaration is made. 

2.6    Progress Updates. Each Party shall keep the other Party reasonably informed as to its progress and
activities relating to the Development, Manufacture and Commercialization of the Product in the Licensed Field, in the case of Licensee, or the Lilly Products in the Reserved Field, in the case of Lilly, including with respect to regulatory matters
and meetings with Regulatory Authorities, by way of updates once every [***] to the other Party and as otherwise specified in this Agreement. In connection therewith, each Party shall provide the other Party with such information regarding such
progress and activities concerning such Party’s Development Activities. 

  
  

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 ARTICLE 3 

DEVELOPMENT 

3.1    Overview of Licensee Development. Subject to the terms and conditions of this Agreement, Licensee shall be
responsible for the Development of the Product for use in the Licensed Field as set forth herein. Licensee shall [***]; provided, that, upon Licensee determining to develop [***] as the Commercialization Product, Licensee shall use Commercially
Reasonable Efforts to perform Development Activities for such Compound and Commercialization Product. 

3.2    Development Activities. 

3.2.1    Licensee Development Activities. Licensee agrees that the initial Commercialization Product shall be
Taladegib. Notwithstanding the foregoing, Licensee shall have the right to abandon Development of Taladegib (or the then-current Commercialization Product) and to then Develop an alternative Compound as the Commercialization Product, following
discussion with respect thereto with Lilly and good faith consideration of any comments Lilly may provide, provided that if such decision was made for any reason other than substantive and verifiable safety concerns, Lilly shall have the right to
continue Development of Taladegib (or the then-current Commercialization Product). [***]. 
 3.2.2    Lilly
Development Activities. Except as set forth in Section 3.2.1, Lilly shall conduct Development Activities in the Reserved Field only for Lilly Product that includes the current Commercialization Compound or with such other Compound as may be
necessary or useful to formulate a Fixed Dose Combination Product combining such Compound and the applicable Lilly Target Molecule in final dosage form. 

3.2.3    Compliance. Licensee shall conduct Development Activities in accordance with sound and ethical business
and scientific practices, and in compliance with all Applicable Law, including GMPs, GCPs and GLPs, and also including all applicable data privacy and data protection laws. In addition, Licensee shall not use in any capacity, in connection with its
Development (or Commercialization) of the Compound or Product hereunder, any Person who has been debarred pursuant to Section 306 of the FD&C Act (or similar Applicable Law outside of the U.S.), or who is the subject of a conviction
described in such section, and Licensee shall inform Lilly in writing immediately to the extent it becomes aware that it or any Person who is performing services Licensee hereunder is debarred or is the subject of a conviction described in
Section 306 (or similar Applicable Law outside of the U.S.), or if any action, suit, claim, investigation or legal administrative proceeding is pending or, to Licensee’s knowledge, is threatened, relating to the debarment of Licensee or
any Person used in any capacity by Licensee in connection with its Development (or Commercialization) of the Compound or Product hereunder. 

  
  

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 3.2.4    Development Costs. Licensee shall be solely responsible for
one hundred percent (100%) of all Development costs incurred with respect to any Development Activities or Analytical Release Testing and Characterization associated with the Product for the Licensed Field incurred on or after the Original Effective
Date. 
 3.2.5    Failure to Develop. If Licensee (either itself or through an Affiliate, Sublicensee or an
assignee of Licensee’s rights hereunder) neither is actively developing Taladegib in a Clinical Trial as of December 31, 2018 (it being understood that continuing the HHBB Study, by itself, shall not constitute active development for
purposes of this Section 3.2.5) nor has filed an IND for an alternative Compound by December 31, 2018, then this Agreement shall immediately terminate and Article 13 shall apply. 

3.3    Records, Reports and Information. 

3.3.1    General. Licensee shall, and shall cause each of its Related Parties to, maintain current and accurate
records (paper or electronic) of work conducted by it in relation to Development of the Products, in accordance with standard business practices and Applicable Law. 

3.3.2    Status Updates. As part of Licensee’s updating obligations pursuant to Section 2.6, Licensee
shall provide Lilly with reports summarizing its Development Activities with respect to the Compound and/or Product, including the preparation of any Regulatory Materials, Regulatory Authority review of Regulatory Materials, and Regulatory
Approvals, and the results thereof during the [***]. 
 3.3.3    Access to Records. Lilly shall have the right to
review all records related to Development Activities maintained by Licensee with respect to the Compound and/or Product at reasonable times, upon written request, in each case, to the extent necessary for Lilly to Develop or Commercialize Lilly
Products. 
 3.4    On-Going Studies. As between the Parties, Lilly shall
continue to conduct, and supply necessary clinical materials, including the Compound, for the performance of, the On-Going Studies. Notwithstanding the foregoing, Lilly will have the right to wind-down the On-Going Studies [***]. Licensee shall reimburse Lilly promptly for any direct costs incurred by Lilly in connection with the On-Going Studies and for activities occurring on
or after the Original Effective Date. 
 3.5    Ownership and Transfer of Development Data. All data (including pre-clinical, clinical, technical, chemical, safety, and scientific data and information), Know-How and other results generated by or resulting from or in connection with the
Development of the Compound (including any Product and the Manufacture thereof), including relevant screening data, Regulatory Data and synthesis schemes, including descriptions in any form, data and other information (collectively, the
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the Party generating such data and shall be Confidential Information of such Party (and each Party shall require that all of its Affiliates, Sublicensees (or licensees in the case of Lilly) and
subcontractors assign any of such Affiliates’, Sublicensees’ (or licensees’ in the case of Lilly) and subcontractors’ right, title and interest in and to such Development Data to such Party). With respect to Development Data
generated by a Party, such Party shall promptly provide the other Party with copies of reports and summaries thereof, in each case as such reports and summaries become available to such Party, in each case solely to the extent necessary for such
other Party to fully exercise its rights under Section 2.1 or Section 2.2, as applicable. Licensee may only use the Development Data provided by Lilly in accordance with the rights granted to Licensee under Section 2.1. 

3.6    Rights of Reference. Licensee hereby grants Lilly (and its Affiliates and designees) a right of reference to
all Development Data (and safety data generated therefrom) owned by Licensee (or Related Parties) for uses solely in connection with the licenses granted to Lilly hereunder with respect to the Reserved Field (including in connection with the
Development (including obtaining and maintaining Regulatory Approvals), Manufacturing and Commercialization of Lilly Products), which right of reference shall survive the expiration or termination of this Agreement. Lilly hereby grants Licensee (and
its Affiliates and designees) a right of reference to all Development Data (and safety data generated therefrom) owned by Lilly (or its Affiliates) for all uses solely in connection with the licenses granted to Lilly hereunder with respect to the
Licensed Field (including the Development (including obtaining and maintaining Regulatory Approvals), Manufacturing and Commercialization of Products), which right of reference shall survive the expiration or termination of this Agreement to the
extent that the license granted to Licensee under Section 2.1 survives the expiration or termination of this Agreement. 
 ARTICLE 4

 REGULATORY 

4.1    Regulatory Data and Regulatory Materials. During the Term, Lilly and Licensee shall each promptly provide to
the other copies of any Regulatory Materials and Regulatory Data that either may generate or otherwise acquire that is necessary for such other Party to Develop, Manufacture or Commercialize its respective products (i.e., Products in the case of
Licensee, and Lilly Products in the case of Lilly) and that was not previously provided under the Original Agreement. Lilly shall make such data and information available in electronic common technical document (“eCTD”) format as is
currently in such eCTD format, it being understood that Lilly shall provide all other data and information not in eCTD format in its current electronic and/or paper format. For clarity, Licensee shall have the right to use and reference all such
data and information made available under this Section 4.1 in connection with its Development and Commercialization of Products in accordance with this Agreement. Each Party may use the Regulatory Materials and Regulatory Data provided by the
other Party hereunder only in accordance with the rights granted to, or retained by, such other Party hereunder. 

  
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 4.2    Regulatory Filings and Regulatory Approvals. 

4.2.1    General Responsibilities; Ownership of Regulatory Approvals. Except with respect to the On-Going Studies, and subject to Section 3.4 and Section 4.4.3, Licensee shall be responsible for the preparation of all Regulatory Materials necessary or desirable for obtaining and maintaining the
Regulatory Approvals for the Product in the Licensed Field (including in connection with the HHBB Study, Patient Information Leaflets, labeling and packaging for Products) and Licensee shall submit such Regulatory Materials, as applicable, to the
applicable Governmental Authorities. For clarity, to the extent allowed by Applicable Law, all Regulatory Approvals for the Product in the Licensed Field shall be held and owned by Licensee in its name. 

4.2.2    Pricing Approvals. To the extent that a given country or regulatory jurisdiction requires Pricing Approval
for sale of the Product in the Licensed Field, Licensee shall (to the extent permitted by Applicable Law) be solely responsible for (and shall use Commercially Reasonable Efforts toward) obtaining and maintaining Pricing Approvals in all such
countries and regulatory jurisdictions, in its own name. Without limiting the foregoing, Licensee shall use Commercially Reasonable Efforts to apply for Pricing Approvals in each country or regulatory jurisdiction where Pricing Approvals are
required for the sale of the Product in the Licensed Field no later than [***] following receipt of the Product Approval in such country or regulatory jurisdiction. 

4.2.3    Cost of Regulatory Activities. All regulatory costs incurred on or after the Original Effective Date in
connection with the preparation of Regulatory Materials for, and obtaining of Regulatory Approvals in, the Licensed Field for the Product shall be borne solely by Licensee. Licensee shall be responsible for all regulatory costs involved in the
maintenance of all Regulatory Approvals for the Product in the Licensed Field, and Lilly shall be responsible for all regulatory costs involved in the maintenance of all Regulatory Approvals for the Lilly Products in the Reserved Field. 

4.3    Communications. 

4.3.1    Except as may be required by Applicable Law, Licensee (and its Affiliates, Sublicensees, subcontractors,
wholesalers or distributors) shall not communicate in writing with any Regulatory Authority with respect to a Lilly Product or an On-Going Study unless (a) such communication is directly and solely
related to the Compound component of a Lilly Product, or (b) requested or permitted in writing to do so by Lilly, or unless so ordered by such Regulatory Authority, and in each case of (a) and (b) Licensee shall immediately notify Lilly of
such order and shall, to the extent permitted by Applicable Law, not take any further actions or communicate with such Regulatory Authority further until Lilly has provided instruction as to how to proceed. All communications with Regulatory
Authorities regarding the Product in the Licensed Field shall be undertaken as provided in this Agreement. 

  
  

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 4.3.2    Except as may be required by Applicable Law, Lilly (and its
Affiliates, licensees (other than Licensee), subcontractors, wholesalers or distributors) shall not communicate in writing with any Regulatory Authority with respect to the Product for use outside the Reserved Field unless (a) such
communication is directly and solely related to a Lilly Product or an On-Going Study, or (b) requested or permitted in writing to do so by Licensee, or unless so ordered by such Regulatory Authority, and
in each case of (a) and (b) Lilly shall immediately notify Licensee of such order and shall, to the extent permitted by Applicable Law, not take any further actions or communicate with such Regulatory Authority further until Licensee has
provided instruction as to how to proceed. 
 4.4    Pharmacovigilance and Medical Inquiries. 

4.4.1    Pharmacovigilance. Subject to Section 4.2.1, Licensee, as the holder of the Product Approvals, shall
be responsible for the collection, review, assessment, tracking and filing of information related to adverse events associated with the Product in the Licensed Field (whether or not Product Approval has been achieved), in each case in accordance
with Applicable Law and this Agreement (and Licensee shall ensure that, in the Development and Commercialization of the Product, it will record, investigate, summarize, notify, report and review all adverse events in accordance with Applicable Law).
Lilly (or its designee) shall be responsible for the collection, review, assessment, tracking and filing of information related to adverse events associated with Lilly Products. The Parties have entered into that certain pharmacovigilance agreement
dated March 29, 2016 (the “Pharmacovigilance Agreement”) to ensure that adverse event and other safety information, including aggregate safety reports, are exchanged, as required, and according to a schedule that will permit
each Party (and its designees or, solely with respect to Lilly, its licensees) to comply with Applicable Law and regulatory requirements in their respective markets. The Pharmacovigilance Agreement identifies Licensee as the Party with
responsibility for holding the global safety database for the Product. 
 4.4.2    Medical Inquiries for the
Product. Following the Original Effective Date, subject to Section 4.2.1, Licensee shall be responsible for handling all medical questions or inquiries in each country with regard to any Product in the Licensed Field and Lilly shall be
responsible for handling all medical questions or inquiries in each county with regard to any Lilly Products, in each case in accordance with Applicable Law and this Agreement. 

4.4.3    Clinical Transparency. The Clinical Trial sponsor shall be responsible for registering its Clinical Trials
with the appropriate Clinical Trial registries as per its standards and in accordance with Applicable Law. Lilly will initiate the transfer of any applicable trial sponsorship in the United States (clinicaltrials.gov) and/or in the European Union
(EU Clinical Trial Registry) to the Licensee, as agreed on by the Parties pursuant to the plan entered into under Section 3.4. If the Licensee is not in agreement to take sponsorship, then Lilly will release the trial results, when required, on
the applicable Clinical Trial registries. 

  
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 4.5    Regulatory Authority Communications Received by a Party. 

4.5.1    General. Each Party shall promptly inform the other Party of notification of any action by, or notification
or other information that it receives (directly or indirectly) from, any Regulatory Authority that (i) raises any material concerns regarding the safety or efficacy of the Product or Compound or Lilly Products, (ii) indicates or suggests a
potential material liability of either Party to Third Parties in connection with the Product or Compound or Lilly Products, (iii) is reasonably likely to lead to a recall, market withdrawal or market notification with respect to the Product or
Compound or Lilly Products, or (iv) relates to expedited and periodic reports of adverse events with respect to the Product or Compound or Lilly Products, or Product Complaints, and which may have an adverse impact on Regulatory Approval or the
continued Commercialization of the Product or Compound or Lilly Products. Licensee shall be solely responsible for responding to any such communications relating to the Product, Lilly shall be primarily responsible for responding to any such
communications relating to the Lilly Product (provided however, that to the extent any such communication also relates to the Product, Lilly shall discuss communication with Licensee in good faith prior to responding to the extent allowed by
Applicable Law), and the Parties shall reasonably cooperate with and assist each other in complying with regulatory obligations. Each Party shall also promptly provide the other Party with a copy of all material correspondence received from a
Regulatory Authority specifically regarding the matters referred to above. Notwithstanding the foregoing, Lilly’s reporting obligations under this Section 4.5.1 are limited to the Product or Compound component of a Lilly Product and Lilly
is not obligated under this Section 4.5.1 to provide Licensee with any notice or information that is related solely to a Lilly Target Molecule. 

4.5.2    Disclosures. In addition to its obligations under this Agreement, each Party shall promptly disclose to
the other Party the following regulatory information: 
 (a)    All material information pertaining to actions taken by
Regulatory Authorities, in connection with the Product or Compound, including any notice, audit notice, notice of initiation by Regulatory Authorities of investigations, inspections, detentions, seizures or injunctions concerning the Product or
Compound, notice of violation letter (i.e., an untitled letter), warning letter or service of process. 
 (b)    All
information pertaining to notices from Regulatory Authorities regarding material non-compliance with Applicable Law in connection with the Product or Compound, including receipt of a warning letter or other
notice of alleged non-compliance from any Regulatory Authority relating to the Product or Compound. 

4.6    Recall, Withdrawal, or Market Notification. In the event that any Governmental Authority threatens or
initiates any action to remove the Product from the market, Licensee shall notify Lilly of such communication promptly, but in no event later than two (2) Business Days, after receipt thereof. Licensee shall determine whether to initiate any
recall, withdrawal or market notification of the Product. Each Party shall at all times utilize a batch tracing system that will enable the Parties to identify, on a prompt basis, customers who have been supplied with Product of any particular
batch, and to recall such Product from such customers as set forth in this Section 4.6. The Parties will reasonably cooperate with each other 

  
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in obtaining all needed documentation and inventory requested during a recall, withdrawal or market notification. All costs and expenses associated with implementing a recall, withdrawal or
market notification with respect to the Product shall be borne by Licensee. For clarity, Lilly has the unilateral right to initiate a recall, withdrawal or market notification with respect to a Fixed Dose Combination Product. 

4.7    Licensee Support for the Reserved Field. Licensee shall make itself reasonably available to Lilly for
regulatory explanations, advice and on-site support, that may reasonably be required by Lilly relating to regulatory matters in conjunction with its Development and Commercialization of the Lilly Products
(including preparation and filing for any INDs and MAAs) (the “Regulatory Support”). The Regulatory Support shall be provided by Licensee at no charge up to an [***], and Lilly shall reimburse Licensee for actual expenses reasonably
and wholly incurred by the Licensee in providing the Regulatory Support beyond such cap; provided, that (a) Lilly has approved such expenses in advance and (b) Licensee provides to Lilly reasonable evidence of such expenses being incurred
during the Term. Additionally, Licensee shall provide a copy of any investigator’s brochure related to the Product to Lilly, and an updated copy of any such investigator’s brochure promptly upon any modifications thereto, but, in any
event, at least annually. 
 4.8    Clinical Trial Subjects. Each Party has obtained, or shall obtain, all
consents and authorizations from data subjects that may be necessary in order for such Party to disclose to the other Party all Development Data and Commercialization Data, and all other data that may include the personal information of data
subjects, as required by this Agreement for the use and the purposes set forth in this Agreement. 
 ARTICLE 5 

COMMERCIALIZATION 

5.1    Commercialization. During the Term, Licensee shall be solely responsible for Commercializing the Product for
use in the Licensed Field, which Commercialization shall be in accordance with this Agreement. Licensee shall be responsible for one hundred percent (100%) of the expenses (including Pre-Marketing and other
Commercialization expenses) incurred in connection with the Commercialization of the Product for use in the Licensed Field. Without limiting the foregoing, Licensee shall use Commercially Reasonable Efforts to Commercialize the Product for use in
the Licensed Field. 
 5.2    Performance. Without limiting the generality of the provisions of Section 5.1,
in connection with the Commercialization of the Product for use in the Licensed Field by Licensee hereunder: 

5.2.1    Bundled Products. In the event Licensee sells or has a Product sold as part of a bundle with any other
products, any discount on such bundle shall be apportioned 

  
  

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equitably across the products therein for purposes of determining Net Sales under this Agreement. 

5.2.2    Product Orders. Licensee shall be solely responsible for (i) receiving, accepting and filling orders
for the Product, (ii) handling all returns of the Product, (iii) controlling invoicing, order processing and collection of accounts receivable for the sales of the Product, and (iv) distributing and managing inventory of the Product.

 5.2.3    Product Launch. 

(a)    To the extent that Licensee has not launched the Commercialization Product in a given country as of the date that
all applicable Regulatory Approvals for the Non-Fixed Dose Combination Product in such country (or other regulatory jurisdiction) have been obtained, Licensee shall [***]; provided, that, Licensee will notify
Lilly in writing within thirty (30) Business Days of all applicable Regulatory Approvals for the Non-Fixed Dose Combination Product being received with respect to such a country [***] in connection with
the Commercialization of the Non-Fixed Dose Combination Product in such country. [***]. 

(b)    Notwithstanding Section 5.2.3(a), by no later than the date upon which Licensee files for Regulatory
Approvals of a Product in the United States, Licensee will notify Lilly of where Licensee intends to pursue Regulatory Approval outside of the United States for such Product and will discuss such plans with Lilly in good faith. 

5.3    No Disparagement. Neither Party shall disparage, defame, discredit, or negatively comment to Third Parties
in any way about or concerning the Product, Compound, Lilly Product, or the other Party (including the other Party’s activities, operations or other products) nor permit its employees, officers or directors to do so, except as required by
Applicable Law. 
 5.4    Reports. As part of Licensee’s updating obligations pursuant to Section 2.6,
Licensee shall, [***], provide Lilly a report summarizing its significant Commercialization activities involving Product during [***]. 

5.5    Provisions Applicable to Sales Representatives and/or Medical Science Liaisons. 

5.5.1    General. Licensee shall, and shall cause its Sales Representatives to, conduct all details with respect to
the Product and perform its other Commercialization activities under this Agreement in adherence with Applicable Law and Regulatory Approvals, the Product package inserts, labeling and packaging, including those relating to promotion of
pharmaceutical products, consumer protection, fraud and abuse and false claims, and in compliance with all applicable data protection and data privacy rules. 

  
  

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 5.5.2    Compensation. Licensee shall be solely responsible for
(i) any compensation that is payable to its Sales Representatives (including with respect to any employee benefit plan), (ii) the payment or withholding of any contributions, payroll taxes, or any other payroll-related item by or on behalf
of Licensee (or its Affiliates) or any of its Sales Representatives or Medical Science Liaisons, and (iii) any failure of Licensee (or its Affiliates) to withhold or pay required taxes or failure to file required forms with regard to
compensation and benefits paid or extended by Licensee (or its Affiliates) to any of its Sales Representatives or Medical Science Liaisons. Licensee acknowledges and agrees that Lilly does not and will not maintain or procure any worker’s
compensation, healthcare, or other insurance for or on behalf of the Licensee’s Sales Representatives, all of which shall be Licensee’s sole responsibility. 

5.5.3    Training. Licensee shall be solely responsible for training, and all costs associated with such training,
its Sales Representatives and Medical Science Liaisons using Commercially Reasonable Efforts and in all cases in accordance with Applicable Law, including timely reporting of any adverse events with respect to the Product. 

5.5.4    Acts of Sales Representatives and Medical Science Liaisons. For the avoidance of doubt, Licensee shall be
solely responsible for any act or omission of its Sales Representatives and Medical Science Liaisons while performing any Commercialization activities (including any proceedings or claims for benefits that any Sales Representative or Medical Science
Liaison may make under or with respect to any Lilly benefit plan). Licensee shall be solely responsible and liable for all probationary and termination actions taken by it with respect to its Sales Representatives and Medical Science Liaisons, as
well as for the formulation, content and dissemination (including content) of all employment policies and rules (including written compliance policies, and probationary and termination policies) applicable to its employees and contractors. Licensee
shall ensure that its policies require a clear delineation between the promotional and medical activities, including training both its Sales Representatives and Medical Science Liaisons on the differentiation of their roles under Applicable Law. For
clarity, Sales Representatives shall not engage in medical affairs activities (including receiving, approving or delivering grants) nor will they attend formulary committee meetings and no Medical Science Liaison shall concurrently serve as a Sales
Representative. 
 5.6    Questions Regarding Products and Lilly Products. Each Party shall promptly refer to the
other Party any and all questions such Party, its Sales Representatives and/or its Medical Science Liaisons receive from any HCP relating to the other Party’s product(s); provided, that, in the case of Lilly, such referral shall only be with
respect to questions pertaining to Compound or Product as a monotherapy or in combination with molecules that are not Lilly Target Molecules. 

5.7    Promotional Materials. 

5.7.1    Creation of Promotional Materials. Licensee will create and develop Promotional Materials for the Product
for the Licensed Field in accordance with the Regulatory Approvals and Applicable Law. 

  
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 5.7.2    No Inclusion of Lilly Logos on Packaging and Promotional
Materials. Notwithstanding anything to the contrary herein, Licensee shall not use any Lilly trademark, names, logos or housemark in connection with any Promotional Materials for the Product for the Licensed Field. Without limiting the
foregoing, Licensee will take no action that will interfere with or diminish Lilly’s rights in its respective trademarks, names and logos. 

5.7.3    Ownership of Promotional Materials. During the Term, Licensee shall own all right, title and interest in
and to any Promotional Materials created by Licensee hereunder relating to the Product in the Licensed Field, including copyrights, but excluding any trademarks, names, logos and other marks owned by or on behalf of Lilly or its Affiliates. 

5.7.4    Use of Promotional Materials. The Promotional Materials, and any aspects of those uniquely tied to the
Product, shall be used by Licensee exclusively in connection with the Commercialization of the Product in the Licensed Field in accordance with the terms of this Agreement, and Licensee shall not use, or allow any other Person (other than Related
Parties) to use, any such Promotional Materials except in accordance with this Agreement. 
 5.8    Trademarks and
Trade Dress. 
 5.8.1    Trademark. Licensee shall have the right to Commercialize the Product under the
trademark and the trade dress selected by Licensee (the “Product Trademark” and the “Product Trade Dress”, respectively). Notwithstanding the foregoing, in the event that Lilly believes that the use or registration
of the Product Trademark or Trade Dress in a particular country would interfere with or diminish the strategic value of the Lilly Products or be against the Applicable Law of such country, or in conflict with any Third Party’s intellectual
property rights in that country, based on a review of market research, regulatory research, legal searches, investigation results, and any other relevant information that may have been collected by either Party that is relevant to the clearance for
use and registration of a trademark or for use and registration of a trade dress, such Lilly shall present such concern to Licensee, and Licensee shall consider such concern in good faith. 

5.8.2    Use and Ownership of Product Trademarks and Product Trade Dress. All uses of the Product Trademark and
Product Trade Dress by Licensee (and its Related Parties) to identify and/or in connection with the Commercialization of the Product in the Licensed Field, and to Sell the Product, shall be in accordance with Regulatory Approvals and Applicable Law.
Licensee shall own and retain all rights to the Product Trademark and Product Trade Dress (in each case, together with all goodwill associated therewith). Licensee shall also own rights to any Internet domain names incorporating the Product
Trademark or any variation or part of such trademark as its URL address. 
 5.8.3    Maintenance of Trademarks.
During the Term, Licensee will use Commercially Reasonable Efforts to establish, maintain and enforce the Product Trademark and will bear all costs and expenses relating thereto. 

5.8.4    Trademark Acknowledgments. Each Party acknowledges the sole ownership by the other Party and validity of
all trademarks, trade dress, logos and slogans owned 

  
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by the other Party and used or intended to be used in connection with the Product or Lilly Product, as applicable. Each Party agrees that it will not at any time during or after the Term assert
or claim any interest in, or do anything that may adversely affect the validity or enforceability of, any copyright, trademark, trade dress, logo or slogan owned by the other Party and used or intended to be used on or in connection with the
marketing or sale of the Product or Lilly Product, as applicable. Neither Party will register, seek to register or cause to be registered any copyrights, trademarks, trade dress, logos or slogans owned by the other Party and used or intended to be
used on or in connection with the marketing or sale of the Product or Lilly Product, as applicable, or any variation thereof, under any Applicable Law providing for registration of copyrights, trademarks, service marks, trade names or fictitious
names (including as an Internet domain name) or similar Applicable Law, without the other Party’s prior written consent (in its sole discretion). 

5.9    Commercialization Data. Licensee shall own all marketing and sales data and information resulting from its
Commercialization of the Product in the Licensed Field during the Term (the “Commercialization Data”), including promotional materials, marketing strategies and market research data. 

5.10    Promotion of the Lilly Products. In the event that Lilly decides, in its sole discretion, to Commercialize
the Lilly Products, the Parties may, at each Party’s sole discretion, negotiate in good faith [***]. 

  
  

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 ARTICLE 6 

SUPPLY 

6.1    Reserved. 

6.2    Packaging and Labeling; Certain Other Manufacturing Activities. Notwithstanding anything to the contrary
contained herein, Licensee or its designated Third Party shall be responsible (at its sole cost and expense) for all final product labeling and packaging (whether in commercial or clinical packaging presentation), including insertion of materials
such as patient inserts, patient medication guides, professional inserts and any other written, printed or graphic materials accompanying the Product and considered to be part of the finished Product packaging and labeling, and handling, storage,
quality control, quality assurance of the Product for the Licensed Field in connection with the foregoing (collectively, “Packaging and Labeling”). Licensee or its designated Third Party shall ensure that all such Packaging and
Labeling complies with Applicable Law, GMPs and the Regulatory Approvals for the Product, including the Product Specifications. Licensee or its designated Third Party shall also be responsible for performing the testing and release aspects of
Analytical Release Testing and Characterization of the Product. To the extent that a Third Party is involved in Packaging and Labeling or other activities described in this Section 6.2, Licensee shall be wholly responsible for, and bear one
hundred percent (100%) of the costs related to, qualifying such Third Party to perform such activities. 

6.3    Ongoing Supply. 

6.3.1    Product. Licensee shall have sole responsibility for the Manufacture of the Commercialization Product
including the Compound used in such Commercialization Product (including for Non-Fixed Dose Combination Products) Developed by Licensee from and after the Original Effective Date. All such Manufacturing shall
be conducted in compliance with Applicable Law. 
 6.3.2    Lilly Manufacturing. Lilly shall have sole
responsibility for the Manufacture of any (a) Lilly Target Molecules prescribed for use in a Lilly Product and (b) Compound used in a Lilly Product that is not used in the Commercialization Product. 

6.3.3    Fixed Dose Combination Product. If Lilly decides, in its sole discretion, to pursue the Development or
Commercialization of a Fixed Dose Combination Product that includes a Commercialization Product, the Parties shall discuss in good faith and enter into a mutually acceptable supply agreement (the “Supply Agreement”) to govern the
supply of Commercialization Product and the Compound used in such Commercialization Product and a related quality agreement (the “Quality Agreement”) to govern the responsibilities and procedures associated with record retention,
complaint handling, quality-specific audit rights, specifications, key contacts and other quality-related matters. Additionally, Lilly shall have the right to audit all nodes of Licensee’s supply chain, including Third Party manufacturing
sites, prior to entering into, and during the term of, the Supply Agreement. Lilly shall have sole responsibility for the Manufacture of any Lilly Target Molecules prescribed for use in Lilly Product. To the extent that Lilly notifies Licensee in
writing that it desires to establish an 

  
 32 

 
alternative source of supply for Fixed-Dose Combination Products: (a) to the extent that the Fixed-Dose Combination Product includes a Commercialization Product, Lilly shall be permitted to
establish such alternative source of supply of a finished dosage form containing the applicable Compound (but not the Compound itself), and (b) to the extent that the Fixed-Dose Combination Product does not include a Commercialization Product,
Lilly shall be permitted to establish such alternative source of supply for the Compound and the finished dosage form containing the Compound; provided, that notwithstanding clauses (a) and (b) if Lilly reasonably determines based on its audit
of Licensee’s supply chain discussed above that there are quality issues with the Compound, Lilly shall be permitted to establish an alternative source of supply for the Compound and the finished dosage form containing the Compound for any
Fixed-Dose Combination Product. 
 6.4    Manufacturing Technology Transfer. 

6.4.1    In the event that Lilly exercises its right to establish an alternative supply chain pursuant to the final
proviso of Section 6.3.3, then within [***] of Lilly exercising such right, Lilly and Licensee shall meet and agree upon the information in Licensee’s possession related to the Manufacture of the Compound and Product that is necessary for
Lilly to exercise its rights hereunder and Licensee shall thereafter use Commercially Reasonable Efforts to provide Lilly with such Manufacturing-related information, and Lilly shall use Commercially Reasonable Efforts to receive such information.

 6.4.2    The technology transfer under Section 6.4.1 shall occur in an orderly fashion and in a manner
reasonably agreed by the Parties to ensure that the value, usefulness and confidentiality of the transferred Licensee Know-How is preserved in all material respects. The implementation and transfer of
information pursuant hereto shall be conducted through electronic, email and teleconference consultation between the Parties; provided, that (i) Licensee’s participation in such activities shall not exceed [***] and (ii) Licensee
shall not be required to conduct any on-site or in person consultation in connection therewith. For clarity, Lilly shall be responsible for any Development or Manufacturing related costs associated with such
technology transfer, including lab runs, pilot scale testing and demo batches. For clarity, the Parties’ rights and obligations with respect to the transfer of regulatory materials is described in ARTICLE 4. 

ARTICLE 7 
 PAYMENTS

 7.1    Reserved. 

7.2    Amendment Consideration. As consideration for the amending and restating of the Original Agreement pursuant
to this Agreement, and granting of the applicable Releases under Section 15.16, Licensee shall pay to Lilly the sum of $15,000,000 in cash in accordance with Section 7.2.1 and Section 7.2.2 below; provided, that, Licensee’s
payment obligations under 

  
  

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this Section 7.2 shall expire at the time that Licensee has paid Lilly $15,000,000 under this Section 7.2. 

7.2.1    Payment Schedule. 

(a)    $3,000,000 within five (5) days of the Effective Date; 

(b)    $[***] on or before [***]; 

(c)    [***]% of any cash consideration received by Licensee in connection with (i) the assignment of this Agreement
in whole or in part, (ii) a Program Sale, or (iii) the grant of any sublicense pursuant to Section 2.4.2 prior to [***]; 

(d)    with respect to any non-cash consideration received by Licensee prior to
March 31, 2020, in connection with (i) the assignment of this Agreement in whole or in part, (ii) a Program Sale, or (iii) the grant of any sublicense pursuant to Section 2.4.2, which
non-cash consideration is converted to cash prior to March 31, 2020, [***]% of the converted cash amount; 

(e)    $[***] (or such lesser amount as would result in Licensee having paid Lilly $15,000,000 in total cash payments
under paragraphs 7.2.1(a) through 7.2.1(d), inclusive) on or before [***]; and 
 (f)    $[***] (or such lesser
amount as would result in Licensee having paid Lilly $15,000,000 in total cash payments under paragraphs 7.2.1(a) through 7.2.1(e), inclusive) on or before March 31, 2020. 

7.2.2    Change of Control. If at any time before Licensee has paid Lilly $15,000,000 in total cash payments as
provided in Section 7.2.1, there is a Change of Control (other than a standalone Program Sale) with respect to Licensee, Licensee shall pay to Lilly the amount necessary to achieve a total payment to Lilly under this Section 7.2 of
$15,000,000. For clarity, this Section 7.2.2 shall apply in the event that a Program Sale occurs in connection with a more broadly defined Change of Control. 

7.2.3    Maximum Payment. For clarity, the maximum amount payable by Licensee to Lilly pursuant to this
Section 7.2 is $15,000,000. 
 7.2.4    Procedure for Payments. Licensee shall pay the applicable payments
due under this Section 7.2 by wire transfer of immediately available funds into an account designated by Lilly within five (5) days after the occurrence of the relevant event, which “event,” in the case of payments due pursuant
to (1) paragraphs 7.2.1(a), 7.2.1(b), 7.2.1(e), and 7.2.1(f) means no later than the date indicated, (2) paragraphs 7.2.1(c) and 7.2.1(d) means the date on which applicable cash consideration is received by Licensee or the conversion
of the applicable 

  
  

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non-cash consideration to cash occurs, and (3) paragraph 7.2.2 means the date on which such Change of Control is consummated. Each of the foregoing
payments is non-refundable and non-creditable against any other payments due hereunder, except as expressly stated in this Section 7.2. 

7.3    Milestone Payments. Licensee shall pay to Lilly the milestone payments described in this Section 7.3
following achievement (for the avoidance of doubt, only upon the first occurrence) of the corresponding milestone event. Licensee shall promptly notify Lilly in writing of, but in no event later than five (5) days after, the achievement of each
such milestone event (each, a “Milestone Notification Notice”). Each such milestone payment is non-refundable and non-creditable against any other
payments due hereunder. 
 7.3.1    Milestones. 

 

			
	 Milestone Event
	  	 Milestone Payment

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

 7.3.2    Procedure for Payments. Licensee shall pay the applicable payments due
under Section 7.3 by wire transfer of immediately available funds into an account designated by Lilly within five (5) days after the occurrence of the relevant event or date. For clarity, in no event shall a failure to deliver a Milestone
Notification Notice pursuant to Section 7.3 relieve Licensee of its obligation to pay Lilly the milestone payments described in this Section 7.3.2. 

7.4    Royalty Payments. 

7.4.1    Product. Subject to Section 7.4.2, on a Product-by-Product and country-by-country basis during the Royalty Term applicable to such Product and such country, Licensee
shall pay to Lilly the following royalties on Net Sales of Products: 
  

			
	 Form of Product Administration
	  	 Royalty Rate

	Product administered topically	  	[***]
	Product administered other than topically (e.g., oral or subcutaneous)	  	[***]

 7.4.2    Non-Fixed Dose Combination
Product. With respect to Non-Fixed Dose Combination Products, on a Non-Fixed Dose Combination Product-by-Non-Fixed Dose Combination Product and country-by-country basis during the Royalty Term applicable to Such

  
  

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Non-Fixed Dose Combination Product and such country, Licensee shall pay Lilly a royalty equal to [***] of its Net Sales associated with the Product
component of each such Non-Fixed Dose Combination Product [***]. Licensee will be responsible for acquiring monthly Prescription Data and reporting to Lilly which Product sales are deemed to be associated with
a Non-Fixed Dose Combination Product. 
 7.4.3    Fixed Dose Combination
Product. With respect to Fixed Dose Combination Products, on a Fixed Dose Combination Product-by-Fixed Dose Combination Product and country-by-country basis during the Royalty Term applicable to such Fixed Dose Combination Product and such country, Lilly shall pay Licensee a [***] royalty on Net Sales of such Fixed Dose Combination
Product. 
 7.4.4    Royalty Reductions. 

(a)    On a country-by-country basis, with
respect to any Royalty Product, if, at any time during the Royalty Term applicable to such Royalty Product in such country, sales of Generic Products with respect to such Royalty Product equal or exceed a [***], then any royalty payments owed with
respect to such Royalty Product in such country pursuant to this Section 7.4 will be reduced by twenty-five percent (25%) for so long as [***], provided that if sales of Generic Products with respect to such Royalty Product equal or exceed a
[***], then any royalty payments owed with respect to such Royalty Product in such country pursuant to this Section 7.4 will be reduced by fifty percent (50%) for so long as [***]. 

(b)    Licensee shall have the right (but not the obligation), at its own expense (subject to the reduction provided for
by this Section 7.4.4(b)), for obtaining any licenses from any Third Parties (that are not Sublicensees of Licensee with respect to a Product in such country) to any issued Patents that would be infringed by the practice of the Lilly Technology
licensed under Section 2.1 with respect to a given Product in a particular country (each such Patent, a “Third Party Patent”). If Licensee obtains such a license to a Third Party Patent, Licensee shall be entitled to credit
fifty percent (50%) of the royalties paid to such Third Party during a Calendar Quarter from the royalty payment otherwise payable by Licensee to Lilly pursuant to this Section 7.4 with respect to such Product and such country in such Calendar
Quarter. 
 (c)    On a
country-by-country basis, with respect to any Royalty Product, if, at any time during the Royalty Term applicable to such Royalty Product in such country, there is no
(i) Valid Claim of a Lilly Compound Patent or Licensee Patent claiming or covering the composition of matter of such Product, or any portion thereof, or the Manufacture or approved use thereof in such country or (ii) other Regulatory
Exclusivity covering such Royalty Product in such country, as from the first Calendar Quarter this Section 7.4.4(c) applies, and thereafter for so long as this Section 7.4.4(c) applies in such particular country, the royalty rate
applicable to such Product shall be reduced by twenty-five percent (25%). 

  
  

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 (d)    Notwithstanding the foregoing Sections 7.4.4(a), 7.4.4(b), and
7.4.4(c), in no event shall any royalty payment for any Royalty Product in any country in any Calendar Quarter be reduced to less than fifty percent (50%) of the royalty payment otherwise payable by a Party to the other Party pursuant to
Section 7.4.1, 7.4.2, or 7.4.3, as applicable, before taking into account the reductions permitted by Sections 7.4.4(a), 7.4.4(b), and 7.4.4(c). 

7.4.5    [***] Agreement. The Parties will agree on a process for paying royalties and milestones arising
from the [***] Agreement, if any; provided, that each Party will be responsible for [***]. 
 7.5    Royalty Payments
and Reports. Each Selling Party (and Licensee on behalf of its Related Parties) shall keep complete and accurate books and records that may be necessary to ascertain properly and to verify the payments owed hereunder and shall calculate all
Royalty Payments payable to the other Party pursuant to Section 7.4 with respect to Net Sales at the end of each Calendar Quarter, which amounts shall be converted to Dollars at such time in accordance with Section 7.7. Each Selling Party
(and Licensee on behalf of its Related Parties) shall pay to the other Party the royalty payment due for Net Sales during a given Calendar Quarter within forty-five (45) days after the end of such Calendar Quarter. Each royalty payment due
shall be accompanied by a statement of the amount of Net Sales of the Royalty Product, (a) as a whole and (b) on a country-by-country basis during the
applicable Calendar Quarter. Without limiting the generality of the foregoing, Licensee shall require its Affiliates and Related Parties (and any distributors) to account for its Net Sales and to provide such reports with respect thereto as if such
sales were made by Licensee. 
 7.6    Taxes and Withholding. 

7.6.1    VAT. The Parties agree to cooperate with one another and use reasonable efforts to ensure that value added
tax or similar payment (“VAT”) in respect of any payments made by one Party to the other under this Agreement does not represent an unnecessary cost in respect of payments made under this Agreement. For purposes of clarity, all sums
payable under this Agreement shall be exclusive of VAT. In the event that any VAT is owing in any jurisdiction in respect of any such payment, the paying Party shall pay such VAT, and (i) if such VAT is owing as a result of any action by the
paying Party, including any assignment or sublicense (including assignment to, or payment hereunder by, a paying Party -related entity or Affiliate), or any failure on the part of the paying Party or its Affiliates to comply with applicable tax laws
or filing or record retention requirements, that has the effect of modifying the tax treatment of the Parties hereto, then the payment in respect of which such VAT is owing shall be made without deduction for or on account of such VAT to ensure that
the non-paying/receiving Party receives a sum equal to the sum which it would have received had such VAT not been due or (ii) otherwise, such payment shall be made after deduction of such VAT. In the
event that any deducted VAT is later recovered by the paying Party or an Affiliate, the paying Party shall promptly reimburse the non-paying/receiving Party for the deducted amount. For the sake of

  
  

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clarity, any increase in payments to the non-paying/receiving Party under this Section 7.6 shall reflect only the incremental increase in VAT directly
resulting from clause (i) above. In the event that any VAT is owing in any jurisdiction in respect of any such payment, the non-paying/receiving Party will provide to the paying Party tax invoices showing
the correct amount of VAT in respect of such payments hereunder. 
 7.6.2    Withholding Tax Matters. If the
paying Party is required to make a payment to the non-paying/receiving Party subject to a deduction of tax or withholding tax, the sum payable by the paying Party (in respect of which such deduction or
withholding is required to be made) shall be made to the non-paying/receiving Party after deduction of the amount required to be so deducted or withheld, which deducted or withheld amount shall be remitted in
accordance with Applicable Law. Any such withholding taxes required under Applicable Law to be paid or withheld shall be an expense of, and borne solely by the non-paying/receiving Party, subject to
Section 7.6.1 and the obligation of the paying Party to assume the responsibility of such expense in the event that such expense arises as a result of any action by the paying Party. 

7.6.3    Tax Cooperation. To the extent the paying Party is required to deduct and withhold taxes on any payments
to the non-paying/receiving Party, the paying Party shall pay the amounts of such taxes to the proper Governmental Authority in a timely manner and promptly transmit to the
non-paying/receiving Party an official tax certificate or other evidence of such withholding sufficient to enable the non-paying/receiving Party to claim such payments
of taxes. The non-paying/receiving Party shall provide to the paying Party any tax forms that may be reasonably necessary in order for the paying Party not to withhold tax or to withhold tax at a reduced rate
under an applicable bilateral income tax treaty. The non-paying/receiving Party shall use reasonable efforts to provide any such tax forms to the paying Party at least thirty (30) days prior to the due
date for any payments for which the non-paying/receiving Party desires that the paying Party apply a reduced withholding rate. Each Party shall provide the other with reasonable assistance to enable the
recovery, as permitted by Applicable Law, of withholding taxes, VAT, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing such withholding tax or VAT. 

7.7    Currency Conversion. All payments hereunder shall be made in U.S. Dollars. For the purpose of calculating
any sums due under, or otherwise reimbursable pursuant to, this Agreement (including the calculation of Net Sales expressed in currencies other than U.S. Dollars), any amount expressed in a foreign currency shall be converted into U.S. Dollars in a
manner consistent with such Party’s normal practices used to prepare its audited financial statements for external reporting purposes, in accordance with GAAP, consistently applied, or by using a reputable source such as the Wall Street Journal
or Reuters. 
 7.8    General Payment Procedures. Unless otherwise expressly payable in certain time frames as
provided in this Agreement, the receiving Party shall invoice the paying Party for all amounts due to such non-paying/receiving Party under this Agreement, and such payments shall be made within thirty
(30) days following the receipt by the paying Party of an invoice from the receiving Party specifying the amount due. 

  
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 7.9    Late Payments. Any amount required to be paid by a Party
hereunder which is not paid on the date due shall bear interest at a rate equal to the thirty (30) day U.S. dollar LIBOR rate effective for the date that payment was first due as reported by The Wall Street Journal plus eight percent (8%). Such
interest shall be computed on the basis of a year of three hundred sixty (360) days for the actual number of days payment is delinquent. 

7.10    Records; Audits. During the Term and for two (2) years thereafter, the
non-paying/receiving Party shall have a right to request an audit of each Selling Party in order to confirm the accuracy of royalty payments or any other applicable amount audited hereunder (an
“Audit”); provided, however, that each non-paying/receiving Party shall only have the right to request such Audit one time during any given Calendar Year. Upon the written request by the non-paying/receiving Party to Audit a Selling Party, the non-paying/receiving Party shall have the right to engage an independent certified public accountant approved by the
paying Party, such approval not to be unreasonably withheld, conditioned or delayed, to perform a review as is reasonably necessary to enable such accounting firm to calculate or otherwise confirm the accuracy of any of the royalty payments or any
other applicable amount audited hereunder for the Calendar Year(s) requested by the non-paying/receiving Party; provided that (i) such accountants shall submit an audit plan, including audit scope, to the
Selling Party for the Selling Party’s approval, which shall not be unreasonably withheld, conditioned or delayed, prior to audit implementation, (ii) such accountants shall be given access to, and shall be permitted to examine and copy
such books and records of the Selling Party upon five (5) days’ prior written notice to the Selling Party, and at reasonable times on Business Days, (iii) prior to any such examination taking place, such accountants shall enter into a
confidentiality agreement with the Selling Party reasonably acceptable to the Selling Party in order to keep all information and data contained in such books and records strictly confidential and shall not disclose such information or copies of such
books and records to any third person including the non-paying/receiving Party, but shall only use the same for the purpose of the reviews and/or calculations which they need to perform in order to determine
any amounts being reviewed, and (iv) such accountants shall use reasonable efforts to minimize any disruption to the Selling Party’s business. The Selling Party shall make personnel reasonably available during regular business hours to
answer queries on all such books and records required for the purpose of the Audit. The accountants shall deliver a copy of their findings to each of the Parties upon completion of the review, and, in the absence of fraud or manifest error, the
findings of such accountant shall be final and binding on each of the Parties. Any underpayments by the Selling Party shall be paid to the non-paying/receiving Party within thirty (30) Business Days of
notification of the results of such inspection. Any overpayments made by the Selling Party shall be refunded by the non-paying/receiving Party within thirty (30) Business Days of notification of the
results of such inspection. The cost of the accountants shall be the responsibility of the non-paying/receiving Party unless the accountants’ calculation shows that the actual royalties payable, Net Sales
and/or any other applicable amount Audited hereunder to be underpaid by more than five percent (5%), than the amounts as paid and reported by the Selling Party for the period subject to the Audit. This Section 7.10 shall apply mutatis
mutandis with respect to Lilly’s right to audit records in connection with payments that Licensee receives and that Lilly is entitled to share in pursuant to Section 7.2; provided, however, that Lilly’s right to audit such records
pursuant to the final sentence of this Section 7.10 in connection with payments that Licensee receives and 

  
 39 

 
that Lilly is entitled to share in pursuant to Section 7.2 shall terminate [***] from the date upon which Lilly has received $15,000,000 pursuant to Section 7.2. 

7.11    Licensee Capital Stock. Licensee shall inform Lilly of any [***] of which Licensee becomes aware. 

ARTICLE 8 
 INTELLECTUAL
PROPERTY MATTERS 
 8.1    Ownership of Intellectual Property. 

8.1.1    General. Subject to the provisions of this Section 8.1.1 and except as expressly set forth otherwise
in this Agreement, (i) Lilly shall solely own, and it alone shall have the right to apply for, Patents claiming or covering any Lilly Invention (“Lilly Collaboration Patents”), and (ii) Licensee shall solely own, and it
alone shall have the right to apply for, Patents claiming or covering any Licensee Invention (“Licensee Collaboration Patents”). 

8.1.2    Joint Inventions. Each Party shall promptly disclose to the other Party all Lilly Inventions, Licensee
Inventions and Joint Inventions, as applicable, made by it during the Term. The determination of inventorship for such Inventions shall be made in accordance with Applicable Law relating to inventorship set forth in the patent laws of the United
States (Title 35, United States Code) and the Parties shall reasonably agree to a process for prosecuting and maintaining Patents covering any such Joint Inventions. 

8.1.3    Other Inventions. Any Compound Invention that is Invented solely by either Party, jointly by the Parties,
or jointly by a Party and a Third Party during the Term shall be solely owned by Licensee (and any such patents shall be deemed Licensee Patents) and Lilly shall, and hereby does, assign to Licensee Lilly’s entire right, title and interest in
and to any such Compound Inventions. Any Combination Invention that is Invented solely by either Party, jointly by the Parties, or jointly by a Party and a Third Party during the Term shall be solely owned by Lilly (and any such patents shall be
deemed Lilly Patents) and Licensee shall, and hereby does, assign to Lilly Licensee’s entire right, title and interest in and to any such Combination Inventions. 

8.1.4    Employees. Each Party will require all of its and its Affiliates’ employees to assign all Inventions
that are developed, made or conceived by such employees according to the ownership principles described in Section 8.1.1 free and clear of all liens, encumbrances, charges, security interests, mortgages or other similar restrictions. Each Party
will also use its Commercially Reasonable Efforts to require any agents or independent contractors performing an activity pursuant to this Agreement to assign all Inventions that are developed, made or conceived by such agents or independent
contractors to Lilly and/or Licensee, as applicable, according to the ownership principles described in Section 8.1.1 free and clear of all liens, encumbrances, charges, security interests, mortgages or other similar restrictions. 

  
  

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 8.2    Disclosures. Each Party shall, before filing a new Patent
application (including provisionals and continuations-in-part) claiming an Invention, promptly disclose such Invention to the other Party and shall provide the other
Party with a copy of the proposed patent application at least ten (10) Business Days before filing such application or such shorter time as may be required to preserve Patent rights, including the avoidance of a statutory bar or prior
publication. If the non-filing Party believes that filing Party’s proposed Patent application discloses the non-filing Party’s Confidential Information, non-filing Party shall so notify the filing Party within such ten (10) Business Days after receipt thereof, and the filing Party shall amend its proposed application to remove any such Confidential Information.
If the non-filing Party does not provide the filing Party with a response within the ten (10) Business Days following the non-filing Party’s receipt of notice
from the filing Party of the proposed patent application by the filing Party, the non-filing Party will be deemed not to have objected to the contents of, and the filing Party may proceed with the filing of,
the proposed patent application. 
 8.3    Patent Filings, Prosecution and Maintenance. 

8.3.1    Lilly Compound Patents and Licensee Patents. Licensee shall have the first right to prepare, file,
prosecute and maintain Lilly Compound Patents and Licensee Patents, at its own cost and expense. Licensee shall keep Lilly generally informed of the status of Lilly Compound Patents and Licensee Patents. If, during the Term, Licensee
(a) intends to allow any Lilly Compound Patent to expire or intends to otherwise abandon any such Lilly Compound Patent, Licensee shall notify Lilly of such intention or decision at least thirty (30) days (or as soon as possible if less
than thirty (30) days) prior to any filing or payment due date, or any other date that requires action, in connection with such Lilly Compound Patent and Lilly shall thereupon have the right, but not the obligation, to assume responsibility for
the preparation, filing, prosecution or maintenance thereof at its sole cost and expense, in the name of Lilly. 

8.3.2    Cooperation. The Parties agree to cooperate in the preparation, filing, prosecution and maintenance of all
Patents under this Section 8.3, including obtaining and executing necessary powers of attorney and any necessary assignments, including by the named inventors, providing relevant technical reports to the filing Party concerning the Invention
disclosed in such Patent, obtaining execution of such other documents which are needed in the filing and prosecution of such Patent, and, as requested by a Party, updating each other regarding the status of such Patent, and shall cooperate with the
other Party so far as reasonably necessary with respect to furnishing all information and data in its possession reasonably necessary to obtain or maintain such Patents. 

8.4    Defense and Enforcement of Patents. 

8.4.1    Infringement of Third Party Patents. Each of the Parties shall promptly, but in any event no later than ten
(10) days after receipt of notice thereof, notify the other Party in writing in the event of any claims by a Third Party of alleged patent infringement by Licensee or Lilly or any of their respective Affiliates or, in the case of Licensee, its
Related Parties with respect to the research, Development, Manufacture, use, sale, offer for sale or importation of the Compound or Product (each, an “Infringement Claim”). With respect to any Infringement Claim in the Licensed
Field, the Parties shall attempt to negotiate in good faith a 

  
 41 

 
resolution with respect thereto. If the Parties cannot settle such Infringement Claim with the appropriate Third Parties within thirty (30) days after the receipt of the notice pursuant to
this Section 8.4.1, then Licensee shall assume control of the defense of such Infringement Claim. Lilly, upon request of Licensee, agrees to join in any such litigation, and in any event to reasonably cooperate with Licensee, in each case, at
Licensee’s reasonable expense. Lilly will have the right to consult with Licensee concerning such Infringement Claim and to participate in and be represented by independent counsel in any litigation in which Lilly is a party at its own expense.
Licensee shall have the exclusive right to settle any Infringement Claim without the consent of Lilly, unless such settlement would have a material adverse impact on Lilly (in which case the consent of such other Lilly shall be required). For
purposes of this Section 8.4.1, any settlement that would involve the waiver of rights (including the rights to receive payments) of Lilly shall be deemed a material adverse impact and shall require the consent of Lilly, such consent not to be
unreasonably withheld, conditioned or delayed. 
 8.4.2    Prosecution of Infringers. 

(a)    Notice. If either Party (i) receives notice of any patent nullity actions, any declaratory judgment
actions or any alleged or threatened infringement of patents or patent applications or misappropriation of intellectual property comprising the (w) Joint Inventions, (x) Lilly Patents (including Lilly Compound Patents), Lilly Inventions or
Lilly Know-How or (y) Licensee Patents, Licensee Inventions, or Licensee Know-How, or (ii) learns that a Third Party is infringing or allegedly infringing any
Patent within the Lilly (including Lilly Compound Patents) Patents or Licensee Patents, or if any Third Party claims that any such Patent is invalid or unenforceable, it will promptly notify the other Party thereof, including providing evidence of
infringement or the claim of invalidity or unenforceability reasonably available to such Party. 

(b)    Enforcement of Patents. 

(i)    As between the Parties, (A) Licensee will have the first right (but not the obligation) to take the
appropriate steps to enforce or defend any Patent within the Lilly Compound Patents, and Licensee will have the sole right (but not the obligation) to take the appropriate steps to enforce or defend any Patent within the Licensee Patents against
infringement by a Third Party, that is, in each case, conducting the Manufacture, sale, use, offer for sale or import of any Product, and (B) Lilly will have the first right (but not the obligation) to take the appropriate steps to enforce or
defend any Patent within the Lilly Patents (including the Lilly Compound Patents) against infringement by a Third Party, that is conducting the Manufacture, sale, use, offer for sale or import of any Lilly Product. The applicable Party may take
steps including the initiation, prosecution and control of any suit, proceeding or other legal action by counsel of its own choice and shall bear the costs of such enforcement or defense, as applicable. Notwithstanding the foregoing, the other Party
shall have the right, at its own expense, to be represented in any such action related to enforcement or defense of any such Patent by counsel of its own choice. 

(ii)    If, pursuant to Section 8.4.2(b)(i), and subject to Section 8.5, a Party having the first right to
institute such litigation or otherwise take steps to 

  
 42 

 
remedy the applicable infringement fails to do so within one hundred eighty (180) days of the date such Party has provided notice to the other Party pursuant to Section 8.4.2(a) of such
infringement or claim, then such other Party will have the right (but not the obligation), at its own expense, to bring any such suit, action or proceeding by counsel of its own choice and such first Party will have the right, at its own expense, to
be represented in any such action by counsel of its own choice. 
 (c)    Cooperation; Damages. 

(i)    If one Party brings any suit, action or proceeding under Section 8.4.2(b), the other Party agrees to be joined
as party plaintiff if necessary to prosecute the suit, action or proceeding and to give the first Party reasonable authority to file and prosecute the suit, action or proceeding; provided, however, that neither Party will be required to transfer any
right, title or interest in or to any property to the other Party or any other party to confer standing on a Party hereunder. 

(ii)    The Party not pursuing the suit, action or proceeding hereunder will provide reasonable assistance to the other
Party, including by providing access to relevant documents and other evidence and making its employees available, subject to the other Party’s reimbursement of any costs incurred by the non-enforcing or
defending Party in providing such assistance. 
 (iii)    Neither Party shall, without the prior written consent of the
other Party (in its sole discretion), enter into any compromise or settlement relating to any claim, suit or action that it brought under Section 8.4.2 involving a Patent controlled by the other Party, that admits the invalidity or
unenforceability of any Patent controlled by the other Party, or requires the other Party to pay any sum of money, or otherwise adversely affects the rights of the other Party with respect to such Patents, the Product or rights hereunder (including
the rights to receive payments). 
 (iv)    Any settlements, damages or other monetary awards (a
“Recovery”) recovered pursuant to a suit, action or proceeding brought pursuant to Section 8.4.2(b) will be allocated first to the costs and expenses of the Party taking such action, and second, to the costs and expenses (if
any) of the other Party, with any remaining amounts (if any) to be allocated (A) as Net Sales of the Product or Lilly Product, as applicable, if the Party having the first right to bring the action brings such action under
Section 8.4.2(b)(i), or (B) solely to the other Party if such Party brings such action under Section 8.4.2(b)(ii). 

8.5    Lilly Patents (including any patents covering or claiming a Combination Invention) Excluding the Lilly Compound
Patents. For clarity, with respect to any Lilly Patent (including any patents covering or claiming a Combination Invention), other than the Lilly Compound Patents, Lilly (or its designee) shall have the sole and exclusive right to Control the
prosecution and maintenance thereof and to bring an appropriate suit or other action against any Person engaged in such infringement or defense of any such Lilly Patents, in its sole discretion and Licensee shall have no rights with respect thereto.

  
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 8.6    Patent Term Extensions. As between Lilly and Licensee, Licensee
shall have the exclusive right, but not the obligation, to seek, in Licensee’s name if so required, Patent Term Extensions (including any supplemental protection certificates and the like available under Applicable Law) in any country in
relation to the Lilly Compound Patents and the Licensee Patents. Licensee and Lilly shall cooperate in connection with all such activities. Licensee, its agents and attorneys will give due consideration to all suggestions and comments of Lilly
regarding any such activities, but in the event of a disagreement between the Parties, Licensee will have the final decision making authority. 

ARTICLE 9 

REPRESENTATIONS, WARRANTIES AND COVENANTS; COMPLIANCE 

9.1    Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party as
follows, as of the Effective Date: 
 9.1.1    Corporate Existence and Power. It is a company or corporation duly
organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business
as it is now being conducted and as contemplated in this Agreement, including the right to grant the licenses granted by it hereunder. 

9.1.2    Authority and Binding Agreement. (i) It has the corporate power and authority and the legal right to
enter into this Agreement and perform its obligations hereunder, (ii) it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder,
and (iii) this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, and binding obligation of such Party that is enforceable against it in accordance with its terms, except as enforcement may
be affected by bankruptcy, insolvency or other similar laws and by general principles of equity. 
 9.1.3    No
Conflicts. The execution, delivery and performance of this Agreement by it does not (i) conflict with any agreement, instrument or understanding, oral or written, to which it is a party and by which it may be bound, except for rights
granted to Third Parties pursuant to the contracts set forth in Schedule 2.1 or the [***] Agreement, or (ii) violate any Applicable Law. 

9.1.4    All Consents and Approvals Obtained. Except with respect to Regulatory Approvals for the Development,
Manufacturing or Commercialization of the Products or Lilly Products or as otherwise described in this Agreement, (i) all necessary consents, approvals and authorizations of, and (ii) all notices to, and filings by such Party with, all
Governmental Authorities and other Persons required to be obtained or provided by such Party as of the Effective Date in connection with the execution, delivery and performance of this 

  
  

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 44 

 
Agreement have been obtained and provided, except for those approvals, if any, not required at the time of execution of this Agreement. 

9.2    Additional Representations, Warranties and Covenants of Lilly. Lilly hereby represents, warrants and
covenants to Licensee that, as of the Original Effective Date (except, solely with respect to, Section 9.2.12 as of the Effective Date): 

9.2.1    The Lilly Technology constitutes all of the rights (including all Patents,
Know-How, information and other intellectual property rights) owned or controlled by Lilly as of the Original Effective Date that are necessary to enable Licensee to fully Develop, Manufacture and
Commercialize the Compounds and Products as conducted, to the extent applicable, by Lilly prior to the Original Effective Date. 

9.2.2    To the knowledge of Lilly, the exploitation of the Lilly Compound Patents has not and does not infringe,
dilute, conflict with, misappropriate, or otherwise violate any intellectual property rights of any Third Party. 

9.2.3    Lilly has not filed any Marketing Authorization Applications with a Governmental Authority for the sale of
the Product. 
 9.2.4    Lilly is the owner or licensee of the Lilly Patents and Lilly Know-How. 
 9.2.5    To its knowledge, Lilly has complied with all Applicable
Law in all material respects, including any disclosure requirements, in connection with the filing, prosecution and maintenance of the Lilly Patents owned by Lilly. 

9.2.6    Neither Lilly nor, to the knowledge of Lilly, its subcontractors, has received written notice of any
proceedings pending before or threatened by any Regulatory Authority with respect to the Product. 
 9.2.7    To
the knowledge of Lilly as of the Original Effective Date, no Third Party (i) is infringing any Lilly Patents or has misappropriated any Lilly Know-How or (ii) has challenged the scope, duration,
validity, enforceability, priority, or Lilly’s right to use or license any Lilly Technology. 
 9.2.8    The
clinical, pre-clinical and other studies and tests conducted by or on behalf of or sponsored by Lilly involving Taladegib and Products containing or comprising Taladegib were and, if still pending, are being
conducted in all material respect in accordance with Applicable Law. 
 9.2.9    (i) Lilly has furnished
Licensee with access to complete copies of all INDs, clinical trial data and study reports, and all other Regulatory Materials related to Taladegib and Products containing or comprising Taladegib, (ii) Lilly is and was, at all times prior to
the Original Effective Date, the lawful holder of all rights under the Regulatory Materials that exist as of the Original Effective Date, and (iii) Lilly has complied in all material respects with Applicable Law relating to the Regulatory
Materials, and with regard to actions taken directly by Lilly, relating to the Compounds and Products. 

  
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 9.2.10    None of the executive officers of Lilly have been
disqualified or debarred by any Government Authority for any purpose, or have been charged with or convicted under any Applicable Law for conduct relating to the development or approval or otherwise relating to the regulation of any drug product
under any Applicable Law. 
 9.2.11    Lilly represents and warrants that the Development Data are true and
accurate in all material respects. 
 9.2.12    To the actual knowledge of Lilly (following appropriate and
reasonable investigation as of the Effective Date), Lilly has transferred to Licensee, as part of Development Data or other transfers called for in the Original Agreement, a copy of all of the information, including all manufacturing information, in
Lilly’s tangible possession as of the Original Effective Date that was necessary for Licensee to exercise its rights pursuant to Section 2.1 under the Original Agreement. 

9.3    Additional Representations, Warranties and Covenants of Licensee. Licensee hereby represents, warrants and
covenants to Lilly that, as of the Original Effective Date: 
 9.3.1    Licensee’s compensation programs for
its Sales Representatives do not, and will not, provide financial incentives for the promotion, sales, and marketing of the Product in violation of any Applicable Law or any professional requirements. 

9.3.2    Licensee’s training materials and programs relating to Products will be in accordance with the
Regulatory Approvals and Applicable Law. 
 9.3.3    All Product Commercialized or Manufactured by, or under
authority of, Licensee shall be: 
 (a)    packaged, labeled, handled, stored and shipped by Licensee, in accordance
with, and shall conform to, the applicable Product Specifications; 
 (b)    packaged, labeled, handled, stored and
shipped by Licensee in compliance with all Applicable Law including, GMPs; and 
 (c)    from and after the time
delivered by Lilly hereunder or Manufactured by Licensee (as applicable), free of any material that would cause the Product to be adulterated or misbranded within the meaning of Applicable Law. 

9.3.4    To the knowledge of Licensee, no claim or demand of any Person has been asserted in writing to Licensee
that challenges the rights of Licensee to use or license any of the Licensee Technology. 
 9.3.5    To its
knowledge, Licensee has complied with all Applicable Law, in all material respects, including any disclosure requirements, in connection with the filing, prosecution and maintenance of the Licensee Patents owned by Licensee. 

  
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 9.3.6    Licensee is its own Ultimate Parent Entity and the
transaction considered in this Agreement does not satisfy the jurisdictional thresholds described in 15 U.S.C. § 18a(B)(i). Capitalized terms in this Section 9.3.6 have the meaning set forth in the Hart-Scott-Rodino Antitrust Improvements
Act of 1976 and applicable regulations. 
 9.4    Disclaimer. Licensee understands that the Product is the
subject of ongoing clinical research and development and that Lilly cannot ensure the safety or usefulness of the Product or that the Product will receive Regulatory Approvals. In addition, Lilly makes no warranties except as set forth in this
ARTICLE 9 concerning the Lilly Technology. 
 9.5    No Other Representations or Warranties. EXCEPT AS EXPRESSLY
STATED IN THIS AGREEMENT, NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, WHETHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS, ARE MADE OR GIVEN BY OR ON BEHALF OF A PARTY. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, ALL REPRESENTATIONS AND WARRANTIES, WHETHER ARISING BY
OPERATION OF LAW OR OTHERWISE, ARE HEREBY EXPRESSLY EXCLUDED. 
 9.6    Compliance. 

9.6.1    Compliance with Anti-Corruption Laws. In connection with this Agreement, each Party represents, warrants
and covenants that it has complied and will comply with all Applicable Law and industry codes dealing with government procurement, conflicts of interest, corruption or bribery, including, if applicable, the U.S. Foreign Corrupt Practices Act of 1977
(FCPA), as amended, and any laws enacted to implement the Organization of Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Officials in International Business Transactions. 

9.6.2    Prohibited Conduct. In connection with this Agreement, each Party represents, warrants and covenants that
it has not made, offered, given, promised to give, or authorized, and will not make, offer, give, promise to give, or authorize, any bribe, kickback, payment or transfer of anything of value, directly or indirectly, to any person or to any
Government Official for the purpose of: (i) improperly influencing any act or decision of the person or Government Official; (ii) inducing the person or Government Official to do or omit to do an act in violation of a lawful or otherwise
required duty; (iii) securing any improper advantage; or (iv) inducing the person or Government Official to improperly influence the act or decision of any organization, including any government or government instrumentality, in order to
assist Licensee or Lilly in obtaining or retaining business. 

  
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 9.7    Non-Competition. 

9.7.1    Until [***], neither Lilly nor any of its Affiliates shall, directly or indirectly Develop or Commercialize
a Competing Product anywhere in the world or otherwise own, manage, operate, control, participate in (including by engaging in any product development, product support or joint venture activities), or transfer or license rights in support of any
business that Lilly or its Affiliates knows or should know does or intends to Develop or Commercialize a Competing Product; provided, that, for clarity, Lilly, in performance of its obligations hereunder, including the performance of the On-Going Studies, shall not be in breach of this Section 9.7.1. Without limiting the foregoing covenant, in the event that Lilly or any of its Affiliates proposes to [***]. 

9.7.2    Until [***], neither Licensee nor any of its Affiliates shall, directly or indirectly, Develop or
Commercialize a product comprised of [***]. Without limiting the foregoing covenant, in the event that Licensee or any of its Affiliates proposes to [***]. Notwithstanding anything to the contrary contained herein, Licensee shall have the right to
Develop, Manufacture, have Manufactured and Commercialize products comprising a [***].    Notwithstanding the foregoing, in the event Licensee undergoes a Change of Control and this Agreement is accordingly assigned pursuant to
Section 15.4, the Third Party involved in such Change of Control shall not be prohibited from developing and/or commercializing a compound or product with respect to which [***] has occurred at the time of, or is being commercialized by such
Third Party prior to, the effective date of the Change of Control (a “Pre-Existing Acquirer Product”); provided, further, that, under no circumstances may such Third Party acquirer use any
Lilly Technology in the development and commercialization of such Pre-Existing Acquirer Product. 

9.7.3    In the event of a breach of any provision of this Section 9.7 by the other Party, the non-breaching Party may, in addition to other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance and injunctive relief in order to enforce or prevent any
violation of such provisions. Each Party recognizes that the restrictions contained in, and the terms of, this Section 9.7 are properly required for the adequate protection of the other Party’s rights hereunder, and agrees that if any
provision in this Section 9.7 is determined by any court to be unenforceable by reason of its extending for too great a period of time or over too great a geographic area, or by reason of its being too extensive in any other respect, such
covenant shall be interpreted to extend only for the longest period of time and over the greatest geographic area, and to otherwise have the broadest application as shall be enforceable. 

  
  

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 ARTICLE 10 

INDEMNIFICATION 

10.1    Indemnification by Lilly. Lilly hereby agrees to save, indemnify, defend and hold Licensee, its Affiliates,
and their respective directors, officers, agents and employees harmless from and against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Losses”)
arising in connection with any and all charges, complaints, actions, suits, proceedings, hearings, investigations, claims, demands, judgments, orders, decrees, stipulations or injunctions by a Third Party (each a “Claim”) resulting
or otherwise arising from (i) any breach by Lilly of any of its representations, warranties, covenants or obligations pursuant to the Original Agreement and/or this Agreement, (ii) the negligence or willful misconduct by Lilly or its
Affiliates, sublicensees or subcontractors or their respective officers, directors, employees, agents or consultants in performing any obligations under the Original Agreement and/or this Agreement, (iii) the conduct of the Development,
Manufacturing or Packaging and Labeling activities (including, for clarity, any product liability Losses resulting therefrom) conducted by Lilly (or its Affiliates or their respective officers, directors, employees, agents or consultants) related to
Compounds or Products prior to the Original Effective Date, or (iv) any matter related to the Development, Manufacturing, Packaging and Labeling or Commercialization of Lilly Products under this Agreement or under the Original Agreement
(including, for clarity, any product liability Losses resulting therefrom) by Lilly (or its Affiliates, or their respective officers, directors, employees, agents or consultants), in each case except to the extent that such Losses are subject to
indemnification by Licensee pursuant to Section 10.2. 
 10.2    Indemnification by Licensee. Licensee
hereby agrees to save, indemnify, defend and hold Lilly, its Affiliates, and their respective directors, agents and employees harmless from and against any and all Losses arising in connection with any and all Claims resulting or otherwise arising
from (i) any breach by Licensee of any of its representations, warranties, covenants or obligations pursuant to the Original Agreement and/or this Agreement, (ii) the negligence or willful misconduct by Licensee (or its Affiliates,
Sublicensees, subcontractors, wholesalers or distributors) or their respective officers, directors, employees, agents or consultants in performing any obligations under the Original Agreement and/or this Agreement, or (iii) any matter related
to the Development, Manufacturing, Packaging and Labeling or Commercialization of the Product under this Agreement or under the Original Agreement (including, for clarity, any product liability Losses resulting therefrom) by Licensee (or its
Affiliates, Sublicensees, subcontractors, wholesalers or distributors) or their respective officers, directors, employees, agents or consultants, in each case except to the extent that such Losses are subject to indemnification by Lilly pursuant to
Section 10.1. 
 10.3    Indemnification Procedures. 

10.3.1    A Party believing that it is entitled to indemnification under, as applicable, Section 10.1 or
Section 10.2 (an “Indemnified Party”) shall give prompt written notification to the other Party (the “Indemnifying Party”) of the commencement of any Claim for which indemnification may be sought or, if
earlier, upon the assertion of any such Claim by a Third Party (it being understood and agreed, however, that the failure by an Indemnified Party to give 

  
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notice of a Claim as provided in this Section 10.3.1 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such
Indemnifying Party is actually materially prejudiced as a result of such failure to give notice). Within thirty (30) days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party,
assume control of the defense of such Claim with counsel reasonably satisfactory to the Indemnified Party. If a Party believes that a Claim presented to it for indemnification is one as to which the Party seeking indemnification is not entitled to
indemnification under, as applicable, Section 10.1 or Section 10.2, it shall so notify the Party seeking indemnification. 

10.3.2    If the Indemnifying Party elects to assume the defense of such Claim, the Indemnified Party may
participate in such defense at its own expense; provided, that if the Indemnified Party reasonably concludes, based on advice from counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests with respect to such Claim,
the Indemnifying Party shall be responsible for the reasonable fees and expenses of counsel to the Indemnified Party solely in connection therewith. 

10.3.3    The Indemnifying Party shall keep the Indemnified Party advised of the status of such Claim and the
defense thereof and shall consider recommendations made by the Indemnified Party with respect thereto. 

10.3.4    The Indemnified Party shall not agree to any settlement of such Claim without the prior written consent
of the Indemnifying Party, which shall not be unreasonably withheld, conditioned or delayed. The Indemnifying Party shall not agree to any settlement of such Claim or consent to any judgment in respect thereof that does not include a complete and
unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party or adversely affects the Indemnified Party without the prior written consent of the
Indemnified Party, which shall not be unreasonably withheld, conditioned or delayed. 
 10.4    Limitation of
Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY LOST PROFITS, SPECIAL DAMAGES, EXEMPLARY, PUNITIVE, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES, OR MULTIPLE DAMAGES, ARISING FROM OR RELATING TO ANY BREACH OF THIS
AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 10.4 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 10.1
or 10.2, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF CONFIDENTIALITY OBLIGATIONS UNDER ARTICLE 11. 

10.5    Insurance. Licensee shall procure and maintain insurance, including clinical trials insurance and product
liability insurance, adequate to cover its obligations hereunder and which is consistent with normal business practices of prudent companies similarly situated at all times during which the Product is being clinically tested in human subjects or
commercially distributed or sold by Licensee pursuant to this Agreement, and the clinical trials insurance 

  
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coverage shall, prior to the First Commercial Sale of a Product, in no event be less than two million Dollars ($2,000,000) per loss occurrence and five million Dollars ($5,000,000) in the
aggregate, and product liability insurance coverage shall, after such First Commercial Sale, in no event be less than five million Dollars ($5,000,000) per loss occurrence and fifty million Dollars ($50,000,000) in the aggregate. It is understood
that such insurance shall not be construed to create a limit of Licensee’s liability with respect to its indemnification obligations under this ARTICLE 10. Licensee shall provide Lilly with written evidence of such insurance prior to
commencement of this Agreement and upon expiration of any one coverage. Licensee shall provide Lilly with written notice at least thirty (30) days prior to the cancellation, nonrenewal or material change in such insurance or self-insurance
which materially adversely affects the rights of Lilly hereunder. 
 ARTICLE 11 

CONFIDENTIALITY 

11.1    Confidential Information. 

11.1.1    A Party receiving Confidential Information of the other Party will (X) maintain in confidence such
Confidential Information to the same extent such Party maintains its own proprietary information of similar kind and value, (Y) not disclose such Confidential Information to any Third Party without the prior written consent of the other Party,
except as otherwise expressly permitted below, and (Z) not use such Confidential Information for any purpose except those permitted by this Agreement. As used herein, “Confidential Information” means all Know-How and other information and materials received by either Party from the other Party or its Affiliates pursuant to this Agreement. The foregoing obligations and the other obligations set forth in this
Section 11.1 shall not apply with respect to any portion of such Confidential Information which: 
 (a)    is
publicly disclosed by the disclosing Party, either before or after it becomes known to the receiving Party; 

(b)    was known to the receiving Party or any or its Affiliates, without any obligation to keep it confidential, prior
to when it was received from the disclosing Party; 
 (c)    is subsequently disclosed to the receiving Party or any of
its Affiliates by a Third Party that is lawfully in possession thereof without obligation to keep it confidential; 

(d)    has been published by a Third Party or otherwise enters the public domain through no fault of the receiving Party
or any of its Affiliates in breach of this Agreement; or 
 (e)    has been independently developed or acquired by the
receiving Party or any of its Affiliates without the aid, application or use of the disclosing Party’s Confidential Information. 

  
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 11.1.2    The receiving Party shall have the right to disclose any
Confidential Information provided by the other Party hereunder if, in the reasonable opinion of the receiving Party’s legal counsel, such disclosure is necessary to comply with the terms and conditions of this Agreement, or the requirements of
any law or rule imposed by the U.S. Securities and Exchange Commission or any securities exchange or other Applicable Law, but only to the extent of such necessity or requirements; and no such disclosure shall cause any such information to cease to
be Confidential Information hereunder, except to the extent such disclosure results in a public disclosure of such information. Where reasonably possible, the receiving Party shall notify the disclosing Party of the receiving Party’s intent to
make such disclosure of Confidential Information pursuant to the preceding sentence sufficiently prior to making such disclosure so as to allow the disclosing Party adequate time to take whatever action the disclosing Party may deem to be
appropriate to protect the confidentiality of the Confidential Information. 
 11.1.3    Except as set forth
above, each Party agrees that it shall provide or permit access to Confidential Information of the other Party only to (i) the receiving Party’s attorneys, independent accountants and financial advisors for the sole purpose of enabling
such attorneys, independent accountants and financial advisors to provide advice to the receiving Party, (ii) the receiving Party’s Affiliates, directors, officers, employees, consultants, advisors and permitted subcontractors,
sublicensees and subdistributors, and to the directors, officers, employees, consultants, advisors and permitted subcontractors, sublicensees and subdistributors of such Affiliates, who have a need to know such Confidential Information to assist the
receiving Party with the activities contemplated or required of it by this Agreement, and (iii) bona fide potential sublicensees, potential investors and potential acquirers in connection with due diligence or similar investigations following
either (a) the identification of any such Third Parties to Lilly and Lilly providing its consent to such disclosure or (b) no less than, on a case-by-case
basis two (2) circulations of a term sheet between Licensee and any such Third Party; provided that in each case the Person to whom Confidential Information is being disclosed is subject to obligations of confidentiality and non-use with respect to such Confidential Information substantially similar to the obligations of confidentiality and nonuse of the receiving Party pursuant to this Section 11.1; and provided further, that each
Party shall remain responsible for any failure by its attorneys, independent accountants and financial advisors, Affiliates, and its and its Affiliates’ respective directors, officers, employees, consultants, advisors, permitted subcontractors,
sublicensees and subdistributors, potential sublicensees, potential investors and potential acquirers to treat such Confidential Information as required under this Section 11.1. 

For clarity, either Party may disclose without any limitation such Party’s U.S. federal income tax treatment and the U.S. federal income tax structure of
the transactions relating to such Party that are based on or derived from this Agreement, as well as all materials of any kind (including opinions, other tax analyses, or a complete copy of this Agreement and any amendments thereto) relating to such
tax treatment or tax structure, except to the extent that nondisclosure of such matters is reasonably necessary in order to comply with applicable securities laws. 

11.1.4    Each Party acknowledges that a Party in breach of any of its obligations under this Section 11.1
shall cause the non-breaching Party irreparable harm, for which monetary damages will be an inadequate remedy. Therefore, notwithstanding anything to the contrary in

  
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this Agreement in the event of any such breach, the non-breaching Party shall be entitled, in addition to any other remedy available to it under this
Agreement, at law or in equity, to injunctive relief, including an accounting for profits, specific performance of the terms hereof and other equitable relief for such breach, without the posting of bond or other security. 

11.2    Publicity. Any press releases or other public statements or disclosures regarding the subject matter of
this Agreement shall be subject to the express prior written consent of each of the Parties; provided that a disclosure shall be permitted without the other Party’s consent to the extent that it does not contain information beyond that included
in a prior disclosure approved in writing by both Parties. Notwithstanding the foregoing any disclosure that is required by Applicable Law or the rules of the U.S. Securities and Exchange Commission or any securities exchange, as reasonably advised
by the disclosing Party’s counsel, may be made without the prior consent of the other Party, although, prior to any such legally required disclosure by Licensee, Licensee shall give Lilly prompt notice and an opportunity to comment on the
proposed disclosure. 
 11.3    Securities Filings. In the event Licensee proposes to file with the U.S.
Securities and Exchange Commission or the securities regulators of any state or other jurisdiction under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other applicable securities law a registration
statement or any other disclosure document that describes or refers to this Agreement, Licensee shall notify Lilly of such intention and shall provide Lilly with a copy of relevant portions of the proposed filing not less than three
(3) Business Days prior to such filing (or such shorter period of time as may be required in the circumstances, and any revisions to such portions of the proposed filing a reasonable time prior to the filing thereof), and shall use reasonable
efforts to obtain confidential treatment of any information concerning Lilly that Lilly requests be kept confidential, consistent with Licensee’s disclosure obligations under applicable securities laws. For clarity, Lilly may, at its
discretion, file with the U.S. Securities and Exchange Commission or the securities regulators of any state or other jurisdiction under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other applicable
securities law a registration statement or any other disclosure document which describes or refers to this Agreement. 

11.4    Publications. Except for disclosures permitted under this Agreement and the initial press release that was
published following the Original Effective Date in substantially the form attached hereto as Schedule 11.4, either Party, its Affiliates, or their respective employee(s) or consultant(s) wishing to make a publication
related to the Product or which otherwise may reasonably contain Know-How, or other intellectual property, of the other Party shall deliver to such other Party a copy of the proposed written publication or an
outline of an oral disclosure at least thirty (30) days prior to submission for publication or presentation. Notwithstanding the foregoing, the Parties acknowledge and agree that Lilly may make any such public disclosures regarding the Compound
as have been planned as of the Original Effective Date. 
 11.5    Use of Names. Except as otherwise set forth in
this Agreement, neither Party shall use the name of the other Party in relation to this transaction in any public announcement, press release or other public document without the written consent of such other Party, which consent shall not be
unreasonably withheld, conditioned or delayed; provided, however, that 

  
 53 

 
subject to Section 11.4, either Party may use the name of the other Party in any document filed with any Regulatory Authority or Governmental Authority, including the Securities and Exchange
Commission. 
 11.6    Unauthorized Disclosure of Confidential Information. Each Party shall have a response plan
in place for any disclosure of Confidential Information that is not authorized or otherwise permitted under this Agreement. Such plan shall include considerations of, among other things, notification, remediation and retrieval. In the event that a
Party becomes aware of an unauthorized disclosure of Confidential Information, then such Party shall notify the other Party promptly in writing. 

11.7    Survival. The obligations and prohibitions contained in this ARTICLE 11 as they apply to Confidential
Information shall survive the expiration or termination of this Agreement for a period of ten (10) years. 
 ARTICLE 12 

TERM AND TERMINATION 

12.1    Term. This Agreement shall become effective on the Effective Date and, unless earlier terminated pursuant
to this ARTICLE 12, shall remain in effect on a Royalty Product-by-Royalty Product and country-by-country basis until the
expiration of the Royalty Term applicable to such Royalty Product and country (the “Term”). 

12.2    Termination for Breach. Either Party may, without prejudice to any other remedies available to it at law or
in equity, terminate this Agreement upon written notice to the other Party in the event that the other Party (the “Breaching Party”) shall have materially breached this Agreement, which notice shall describe such breach in
reasonable detail and shall state the non-breaching Party’s intention to terminate this Agreement. The Breaching Party shall have ninety (90) days (thirty (30) days in the event of non-payment) after written notice thereof was provided to the Breaching Party by the non-breaching Party to remedy such default (the “Cure Period”); provided,
however, that if any breach is not curable within the Cure Period, such Cure Period shall be extended for so long a period as the Breaching Party is making a bona fide effort to cure such alleged material breach. If the alleged material breach
relates to non-payment of any amount due under this Agreement the Cure Period will be tolled following notice of any such dispute pending resolution of any bona fide dispute between the Parties as to whether
such payment is due, and upon determination of amount due, such payment will bear interest in accordance with Section 7.9 dated back to the original date upon which such payment was due. It is understood and agreed that during the pendency of
such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations hereunder. Termination shall become effective upon receipt of the written notice of
termination by the Breaching Party to be given within ten (10) days of the end of such Cure Period if not cured prior to then. 

12.3    Termination as a Result of Bankruptcy. Each Party shall have the right to terminate this Agreement upon
written notice (a) if the other Party files or is the subject of the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings 

  
 54 

 
(provided that such termination shall be effective only if such proceeding is not dismissed within ninety (90) days after the filing thereof), or (b) upon an assignment of a substantial
portion of the assets for the benefit of creditors by the other Party. 
 12.4    Patent Challenge Termination by
Lilly. Lilly will be permitted to terminate this Agreement upon written notice to Licensee, effective upon receipt, if Licensee or any of its Related Parties, directly or indirectly, (i) initiate or request an interference or opposition
proceeding with respect to, (ii) make, file or maintain any claim, demand, lawsuit or cause of action to challenge the validity or enforceability of, or (iii) oppose any extension of, or the grant of a supplementary protection certificate
with respect to, any Lilly Patent. Notwithstanding the foregoing, nothing in this Section 12.4 will either: (i) prevent Licensee or its Affiliates from asserting any defense or counterclaim in an action for infringement of intellectual
property brought by Lilly or its Affiliates against Licensee or its Affiliates; or (ii) allow Lilly to terminate this Agreement in the event Licensee or any of its Affiliates asserts any such defense or counterclaim or otherwise responds in any
such action for infringement brought by Lilly or its Affiliates. 
 12.5    Termination Pursuant to
Section 3.2.5. This Agreement may terminate in accordance with Section 3.2.5 without any action required by either Party. 

ARTICLE 13 
 EFFECTS OF
EXPIRATION OR TERMINATION 
 13.1    Effect on Licenses. 

13.1.1    Upon the expiration of this Agreement (but not the termination of this Agreement) with respect to any
given Product(s) and country(ies), the license granted to Licensee in Section 2.1 with respect to such Product and country shall survive, subject to becoming a non-exclusive license. 

13.1.2    Upon the termination of this Agreement, in its entirety, all rights and licenses granted to Licensee
hereunder shall immediately terminate. 
 13.1.3    If Licensee has the right to terminate this Agreement
pursuant to Section 12.2 in connection with Lilly’s uncured material breach or default, then Licensee may elect not to terminate this Agreement and may instead (i) elect to keep this Agreement in full force and effect subject only to
the milestone and royalty payments due to Lilly under ARTICLE 7 being reduced by fifty percent (50%) and (ii) terminate Lilly’s rights under Section 2.2, including all licenses granted thereunder and any corresponding sections related
thereto. 
 13.2    Program Transition. In the event of any termination of this Agreement, in its entirety, or
with respect to any given Product(s) and country(ies), the Parties will work together in good faith to determine and implement reasonable wind-down procedures with respect to relevant Product and Compound-related activities ongoing at the time of
such termination; provided, that Licensee shall remain responsible for conducting the HHBB Study through to completion. Without limiting the forgoing, upon any termination of this Agreement prior to its

  
 55 

 
expiration, Licensee hereby assigns to Lilly Licensee’s and its Affiliates’ entire right, title and interest in and to any and all data and/or intellectual property rights owned by any
of them that (a) relates to Product and/or Compound (including any patents or patent applications claiming or covering or including the same) or (b) arising out of the performance of the HHBB Study. Licensee shall provide any assistance
reasonably requested by Lilly in connection with documenting such assignment, including providing Lilly with copies of any and all such data. In the event that an assignment of such intellectual property rights by Licensee to Lilly is not
practicable (due to, e.g., rules and regulations applicable to such patent rights where they exist), Licensee shall grant to Lilly a worldwide, exclusive license under, in and to such intellectual property rights for any and all purposes. 

13.3    Accrued Rights. Expiration or termination this Agreement for any reason will be without prejudice to any
rights that will have accrued to the benefit of a Party prior to the effective date of such expiration or termination. Such expiration or termination will not relieve a Party from obligations that are expressly indicated to survive the expiration or
termination of this Agreement. 
 13.4    Survival. Notwithstanding anything to the contrary contained herein,
the following provisions shall survive any expiration or termination of this Agreement: ARTICLES: 1 (to the extent necessary to give meaning to other surviving provisions), 10, 11, 13 (to the extent applicable), and 15 and Sections: 2.3.1, 3.4, 3.6,
4.3, 4.4, 7.2 and 7.5 through 7.10, inclusive (with respect to relevant sales prior to the effective date of expiration or termination). Except as set forth in this ARTICLE 13 or otherwise expressly set forth herein, upon expiration or termination
of this Agreement all other rights and obligations of the Parties shall cease. 
 13.5    Rights in Bankruptcy.
All rights and licenses granted under or pursuant to this Agreement by Lilly and Licensee are, and shall otherwise be deemed to be, for purposes of Section 365(n) of title 11 of the United States Code (the “U.S. Bankruptcy
Code”) or any analogous provision or law in any other country or jurisdiction, licenses of rights to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code or any analogous provision or law in any
other country or jurisdiction. The Parties agree that each Party, as licensee of certain rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any analogous provision or
law in any other country or jurisdiction. The Parties further agree that, in the event of the commencement of a bankruptcy case by or against a Party (such Party, the “Bankrupt Party”) under the U.S. Bankruptcy Code or any analogous
provision or law in any other country or jurisdiction, (a) the other Party shall be entitled to a complete duplicate of (or complete access to, as appropriate) any intellectual property licensed to such other Party and all embodiments of such
intellectual property, which, if not already in such other Party’s possession, shall be promptly delivered to it (x) upon any such commencement of a bankruptcy case upon such other Party’s written request therefore, unless the
Bankrupt Party elects to continue to perform all of its obligations under this Agreement or (y) if not delivered under clause (x), following the rejection of this Agreement by the Bankrupt Party upon written request therefore by the other Party
and (b) the Bankrupt Party shall not unreasonably interfere with the other Party’s rights to intellectual property and all embodiments of intellectual property, and shall assist and not unreasonably interfere with the other Party in
obtaining intellectual property and all embodiments of intellectual property from 

  
 56 

 
another entity. The “embodiments” of intellectual property includes all tangible, intangible, electronic or other embodiments of rights and licenses hereunder, including all compounds
and products embodying intellectual property, Products, filings with Regulatory Authorities and related rights and Lilly Know-How in the case that Lilly is the Bankrupt Party and Licensee Know-How in the case Licensee is the Bankrupt Party. 
 ARTICLE 14 

DISPUTE RESOLUTION 
 The Parties recognize
that, from time to time, disputes, controversies or claim may arise which stem from or are related to a Party’s respective rights or obligations under this Agreement or a Party’s actual or alleged breach of this Agreement (a
“Dispute”). It is the desire of the Parties to establish procedures to facilitate the resolution of Disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to arbitration or litigation.
To accomplish this objective, the Parties agree to follow the procedures set forth in this ARTICLE 14 if and when a Dispute arises under this Agreement, subject to Section 15.11.2. If the Parties are unable to resolve any Dispute within thirty
(30) days after such Dispute is submitted to it, either Party may, by written notice to the other Party, have such dispute referred to Designated Officers of each Party for attempted resolution. If the Designated Officers cannot reach
resolution of the Dispute within thirty (30) days after such referral, the Dispute shall be referred to the Parties’ designated executive officers or their delegates for attempted resolution. In the event the designated executive officers
or their delegates are not able to resolve such Dispute within such thirty (30) day period after receipt of written notice, then each Party is free to pursue any remedy at law or in equity available to such Party. 

ARTICLE 15 

MISCELLANEOUS 

15.1    Entire Agreement; Amendment. This Agreement, together with the Schedules and Exhibits hereto, contains the
entire understanding of the Parties with respect to the subject matter hereof. Any other express or implied agreements and understandings, negotiations, writings and commitments, either oral or written, in respect to the subject matter hereof are
superseded by the terms of this Agreement. The Schedules and Exhibits to this Agreement are incorporated herein by reference and shall be deemed a part of this Agreement. This Agreement may be amended, or any term hereof modified, only by a written
instrument duly executed by authorized representatives of each of the Parties. 
 15.2    Force Majeure. No Party
shall be liable for any failure to perform, or be considered in breach of, its obligations under this Agreement (other than obligations to make payments of money) to the extent such performance has been delayed, interfered with or prevented by an
event of Force Majeure, and the obligations of such Party under this Agreement (other than obligations to make payments of money) whose performance is affected by Force Majeure shall be suspended during, but not longer than, the continuance of the
event of Force Majeure. Any Party that experiences an event of Force Majeure shall provide prompt notice of such event to the other Party, including and an estimate of the likely period of time during which its performance will be affected, and
shall use reasonable efforts to remove the condition 

  
 57 

 
constituting Force Majeure. In the event of a prolonged condition of Force Majeure that makes it unreasonable to continue to perform other activities then being performed by the Parties and their
Affiliates pursuant to this Agreement, the Parties shall consult directly or through the appropriate Committees and may appropriately scale back their respective activities in order to avoid waste or inappropriate usage of resources under the
circumstances, and neither Party shall be liable for any such reasonable scale back, or be considered in breach of its obligations under this Agreement (other than obligations to make payments of money to the other Party) as a result of such
reasonable scale back. 
 15.3    Notices. Any notice required or permitted to be given under this Agreement
shall be in writing, shall specifically refer to this Agreement and shall be deemed to have been sufficiently given for all purposes if mailed by first class certified or registered mail, postage prepaid (which notice shall be effective five
(5) Business Days after such mailing); express delivery service (which notice shall be effective on the first Business Day after delivery to such service); or personally delivered to the appropriate addresses (which notice shall be effective
upon delivery to such addresses) set forth below or to such other addresses or numbers for a Party as such Party may inform the other Party by giving five (5) Business Days’ prior written notice: 

 

			
	If to Lilly:	  	Eli Lilly and Company
		  	Lilly Corporate Center
		  	Indianapolis, Indiana 46285
		  	Attention: President, Oncology Business Unit
		  	Fax: (317) 276-9574
	
	With copies to (which shall not constitute notice):
		
		  	Eli Lilly and Company
		  	Lilly Corporate Center
		  	Indianapolis, Indiana 46285
		  	Attention: General Counsel
		  	Fax: (317) 433-3000
		
		  	Eli Lilly and Company
		  	Lilly Corporate Center
		  	Indianapolis, Indiana 46285
		  	Attention: General Counsel, Oncology Business Unit
		  	Fax: (317) 433-3000
		
	If to Licensee:	  	Ignyta, Inc.
		  	4545 Towne Centre Court
		  	San Diego, California 92121
		  	Attention: Chief Executive Officer
		  	Fax: (858) 255-5960

  
 58 

			
	With copies to (which shall not constitute notice):
		
		  	 Ignyta, Inc.
 4545 Towne Centre Court

San Diego, California 92121
 Attention: General Counsel

Fax: (858) 255-5960
  

Latham & Watkins LLP
 12670 High Bluff Drive

San Diego, CA 92130
 Attention: Cheston J. Larson, Esq.

Fax: (858) 523-5450

 15.4    Assignment. Neither Party may assign or transfer this Agreement or any
rights or obligations hereunder without the prior written consent of the other Party, except that a Party may make such an assignment or transfer without the other Party’s written consent to any of its Affiliates (but only for so long as such
Person is and remains an Affiliate of such Party, it being agreed that such Party shall cause such assignment to terminate prior to such time, if any, as such Person ceases to be an Affiliate of such Party). For clarity, either of the Parties may,
without the other Party’s written consent, assign its rights and obligations under this Agreement to any Third Party in connection with a Change of Control involving such Party and such Third Party; provided, that in the event Licensee
undergoes such a Change of Control, (i) Licensee shall provide prompt notice to Lilly, which such notice shall include the applicable Third Party’s name, (ii) the effectiveness of such assignment shall be contingent upon [***], and
(iii) “Licensee Technology” (and relatedly, “Licensee Know-How” and “Licensee Patent”, as applicable) shall exclude any Know-How or
Patents of such Third Party assignee that existed prior to the consummation of such Change of Control, provided that if any such pre-existing Patent of such Third Party assignee generically or specifically
claims the composition of matter or any method of use of Taladegib or any other Compound (a “Compound-Specific Assignee Patent”), then, effective upon the consummation of such Change of Control and by virtue of such Third Party
assignee’s assumption of this Agreement as described in the next sentence, such Third Party assignee hereby grants (and Ignyta shall so cause such Third Party to grant) Lilly a non-exclusive, worldwide, royalty-free license, with the right to sublicense, under such Compound-Specific Assignee Patent, to Develop, Manufacture, have Manufactured, and Commercialize Lilly Products for the life of such Compound-Specific
Assignee Patent, subject to the provisos set forth in Section 2.2 of this Agreement (and, for clarity, any license granted under this Section 15.4 includes the right for Lilly to Develop, Manufacture, have Manufactured, and Commercialize a
Compound for formulation with a Lilly Target Molecule in a final dosage form). Any permitted successor or assignee of rights or obligations hereunder shall, in a writing delivered to the other Party, expressly assume the performance of such rights
or obligations, including all payment obligations. Except as set forth in the immediately preceding sentence, in 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
 59 

 
the event of an assignment or transfer as permitted above in this Section 15.4, if this Agreement is assigned or transferred to an Affiliate, the assigning or transferring Party shall remain
responsible (jointly and severally) with such Affiliate for the performance of such assigned or transferred obligations, including all payment obligations. Any assignment or transfer, or attempted assignment or transfer, by either Party in violation
of the terms of this Section 15.4 shall be null and void and of no legal effect. This Agreement shall be binding on, and inure to the benefit of, each Party, its successors and permitted assigns. 

15.5    Offset Rights. Notwithstanding anything to the contrary in this Agreement, neither Party may, at any time
or for any reason, offset any payments due to the other Party or its Affiliates under this Agreement. 

15.6    Severability. If any one (1) 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, such provision shall be considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make a
good faith effort 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. 

15.7    Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be
cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under Applicable Law. 

15.8    Ambiguities; No Presumption. Each of the Parties acknowledges and agrees that this Agreement has been
diligently reviewed by and negotiated by and between them, that in such negotiations each of them has been represented by competent counsel and that the final agreement contained herein, including the language whereby it has been expressed,
represents the joint efforts of the Parties hereto and their counsel. Accordingly, in interpreting this Agreement or any provision hereof, no presumption shall apply against any Party hereto as being responsible for the wording or drafting of this
Agreement or any such provision, and ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision. 

15.9    Headings. The headings for 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. 

15.10    Interpretation. Except where the context expressly requires otherwise, (a) the use of any gender
herein shall be deemed to encompass references to either or both genders, and the use of the singular shall be deemed to include the plural (and vice versa), (b) the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”, (c) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (d) 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), (e) any reference herein to any 

  
 60 

 
person shall be construed to include the person’s successors and assigns, (f) the words “herein”, “hereof” and “hereunder”, and words of similar import,
shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to ARTICLES, Sections, Exhibits or Schedules shall be construed to refer to ARTICLES, Sections, Exhibits or
Schedules of this Agreement, and references to this Agreement include all Exhibits and Schedules hereto, (h) the word “notice” means notice in writing (whether or not specifically stated) and shall include notices, consents, approvals
and other written communications contemplated under this Agreement, (i) provisions that require that a Party, the Parties or any committee hereunder “agree”, “consent” or “approve” or the like shall require that
such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise (but excluding instant messaging), (j) references to any specific law, rule or regulation, or article, section
or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement or successor law, rule or regulation thereof, and (k) the term “or” shall be interpreted in the inclusive sense commonly
associated with the term “and/or.” 
 15.11    Governing Law; Equitable Relief; and Jurisdiction. 

15.11.1     Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of
the State of New York applicable to agreements made and to be performed entirely within such state, without regard to the conflicts of law principles of such state, other than Section 5-1401 of the New
York General Obligations Applicable Law; provided that any matters relating to the construction or effect of any patent will be governed by the patent laws of the United States. This Agreement was prepared in the English language, which language
shall govern the interpretation of, and any dispute regarding, the terms of this Agreement. 
 15.11.2     Equitable
Relief. Notwithstanding anything in this Agreement to the contrary, each Party shall have the right to seek injunctive or other equitable relief from a court of competent jurisdiction pursuant to Section 15.11.3 that may be necessary to
avoid irreparable harm or to maintain the status quo. 
 15.11.3     Jurisdiction. Each Party
(a) irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York and the Supreme Court of the State of New York, New York County (collectively, the “Courts”), for purposes
of any action, suit or other proceeding arising out of this Agreement, (b) agrees not to raise any objection at any time to the laying or maintaining of the venue of any such action, suit or proceeding in any of such Courts, and
(c) irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably waives the right to object, with respect to such action, suit or other proceeding, that such Courts do
not have any jurisdiction over such Party. Each Party further agrees that service or any process, summons, notice or document by U.S. registered mail to such Party’s notice address provided for in this Agreement shall be effective service of
process for any action, suit or proceeding in New York with respect to any matters to which it has submitted to jurisdiction in this Section 15.11.3. Notwithstanding the forgoing, nothing contained in this Agreement will deny any Party the
right to seek injunctive relief or other equitable relief from a court of competent jurisdiction applying 

  
 61 

 
the laws of the court in the context of a bona fide emergency or prospective irreparable harm, and such an action may be filed and maintained notwithstanding any other ongoing proceeding. 

15.12    No Waiver. Any delay in enforcing a Party’s rights under this Agreement or any waiver as to a
particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement, except with respect to an express written and signed waiver relating to a particular matter
for a particular period of time. 
 15.13    No Third Party Beneficiaries. No person or entity other than
Licensee, Lilly and their respective Affiliates, successors and permitted assignees hereunder, shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement. 

15.14    Independent Contractors. It is expressly agreed that Licensee and Lilly shall be independent contractors
and that the relationship between Licensee and Lilly shall not constitute a partnership, joint venture or agency. Neither Licensee nor Lilly 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 Party, without the prior written consent of such other Party. 

15.15    Counterparts; Facsimile Signatures. This Agreement may be executed in three (3) or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one (1) and the same instrument. This Agreement may be executed by delivery of electronically scanned copies of original signatures delivered by facsimile or
electronic mail, and such signatures shall be deemed to bind each Party as if they were original signatures. 

15.16    Release of Claims. Upon execution of this Agreement, each Party, on its own behalf and on behalf of any
and all of its heirs, assigns, predecessors, successors, agents, attorneys, representatives, employers, employees, affiliates, and partners of any kind (each herein a “Releasor” and all collectively “Releasors”),
hereby forever releases, discharges, and acquits the other Party, and any and all of each of its members, partners of any kind, parent entities, subsidiaries, affiliates, related companies, agents, attorneys, representatives, managers, officers,
directors, employees, heirs, assigns, predecessors, and successors, and each of them (each herein, a “Releasee” and all collectively “Releasees”), of and from the Released Claims. Each Party acknowledges that it has
read, considered and understood the provisions and significance of Section 1542 of the California Civil Code, which presently provides as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 Each Party expressly
waives any and all rights that it or any other Releasor has or may have under Civil Code § 1542, as now worded or hereafter amended, with respect to the Released Claims. In connection with this waiver, each Party acknowledges that it is
aware that it or other Releasors may hereafter discover claims presently unknown or unsuspected or facts in addition to or different from those which it or other Releasors now know or believe to be true with respect

  
 62 

 
to the Released Claims. Nevertheless, that Party intends by this Agreement to release fully, finally, and forever the Released Claims. It is expressly understood and agreed that this waiver of
Civil Code §1542 and the releases set forth herein are material terms of this Agreement, and were negotiated between the Parties. Without limiting the foregoing, each Party acknowledges and agrees that this Agreement shall only release such
Party from claims that the other Party may have related to the Original Agreement and each Party reserves all rights and remedies that may be available to it related to, or arising out of, other interactions and agreements between the Parties except
solely for the Original Agreement. 
 [Signature Page Follows] 

  
 63 

 IN WITNESS WHEREOF, the Parties have executed
this Agreement by their duly authorized representatives as of the date first written above. 
  

									
	IGNYTA, INC.	 		 	ELI LILLY AND COMPANY
					
	By:	 	 /s/ Jonathan E. Lim
	 		 	By:	 	 /s/ Susan Mahony

	Name:	 	 Jonathan E. Lim
	 		 	Name:	 	 Susan Mahony

	Title:	 	 President and CEO
	 		 	Title:	 	 President Lilly Oncology

 
Schedule 1.48 
 Lilly Compound Patents 

[***] 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
Schedule 1.89 
 Taladegib Chemical Structure 

[***] 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
Schedule 2.1 
 Third Party Contracts for
On-Going Studies 
 [***] 

[***] 
 [***] 

[***] 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Schedule 7.1 

Share Issuance Agreement 

IGNYTA, INC. 
 SHARE
ISSUANCE AGREEMENT 
 THIS SHARE ISSUANCE AGREEMENT (this “Agreement”) is entered into as of November 6,
2015 (the “Effective Date”), by and between Ignyta, Inc., a Delaware corporation (the “Company”), and Eli Lilly and Company, an Indiana corporation (the “Investor”). 

WHEREAS, simultaneously herewith, the Company and the Investor are entering into a License, Development and Commercialization Agreement (the
“License Agreement”), pursuant to which the Investor is licensing certain technologies to the Company; and 
 WHEREAS,
simultaneously herewith, the Company and the Investor are entering into a Stock Purchase Agreement (the “Stock Purchase Agreement”), whereby the Investor will purchase 1,500,000 shares of the Company’s common stock, par value
$0.0001 per share (the “Common Stock”), for an aggregate purchase price of $30,000,000. 
 NOW, THEREFORE, in consideration
of the mutual covenants hereinafter set forth, the parties to this Agreement hereby agree as follows: 
 1. Share Issuance; License
Agreement. Pursuant to Section 7.1 of the License Agreement, the Company hereby agrees to issue and deliver to the Investor 1,213,000 shares of Common Stock (the “Stock”) within two (2) business days (as defined below) of
the Effective Date (such date the Stock is issued and delivered to the Investor, the “Closing Date”). 
 2. Investor
Representations. The Investor hereby represents and warrants as of the Closing Date to the Company as follows (unless as of a specific date therein): 

(a) Organization; Authority. The Investor is an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and
delivery of this Agreement and performance by the Investor of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action, as applicable, on the part of the Investor. This Agreement has been
duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Investor, enforceable against it in accordance with its terms, except: (i) as
limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. The Investor has not been organized for the specific purpose
of purchasing the Stock and is not prohibited from doing so. 
 (b) Own Account. The Investor understands that the shares of Stock
are “restricted securities” and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities law, and is acquiring the Stock as principal for its own
account and not with a view to or for distributing or reselling such Stock or 

 
any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Stock in violation of the Securities Act or any
applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Stock in violation of the Securities Act or any applicable state securities law
(this representation and warranty not limiting the Investor’s right to sell the Stock in compliance with applicable federal and state securities laws). The Investor is acquiring the Stock hereunder in the ordinary course of its business. 

(c) Investor Status. At the time the Investor was offered the Stock, it was, and as of the date hereof it is either: (i) an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. The Investor is not
required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
 (d) Experience of the Investor. The
Investor, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Stock, and
has so evaluated the merits and risks of such investment. The Investor is able to bear the economic risk of an investment in the Stock and, at the present time, is able to afford a complete loss of such investment. 

(e) General Solicitation. The Investor is not purchasing the Stock as a result of any advertisement, article, notice or other
communication regarding the Stock published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar, or any other general solicitation or general advertisement. 

3. Legends; Stop Transfer. 

(a) All certificates or book-entry statements for shares of the Stock shall bear substantially the following legends: 

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 
 THE SHARES REPRESENTED HEREBY ARE SUBJECT TO AN AGREEMENT BY THE
REGISTERED HOLDER HEREOF NOT TO SELL OR 

  
 2 

 
OTHERWISE TRANSFER SUCH SECURITIES (THE “MARKET STAND-OFF”) FOR A PERIOD OF SIX MONTHS AFTER NOVEMBER 10, 2015 AND SUCH MARKET STAND-OFF SHALL REMAIN IN EFFECT THROUGH AND INCLUDING MAY
10, 2016. 
 (b) In addition, the Company or its transfer agent shall make a notation regarding the restrictions on transfer of the Stock in
its stockbooks and records, and shares of the Stock shall be transferred on the books of the Company or its transfer agent only if transferred or sold pursuant to an effective registration statement under the Securities Act covering such shares or
pursuant to an exemption from such registration requirements. 
 4. Market Stand-Off. The Investor hereby agrees that it will not for
a period ending six (6) months after the Closing Date: 
 (a) Offer, pledge, sell, contract to sell, sell any options or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any shares of the Company’s Common Stock or other equity securities of the Company whether now owned or
hereafter acquired by the Investor or with respect to which the Investor has or hereafter acquires the power of disposition, in each case, other than to the Investor or its affiliates; and 

(b) Purchase or otherwise acquire any additional Company Common Stock or other equity securities of the Company; provided, however, that the
Investor may purchase additional shares of the Company’s Common Stock or other equity securities of the Company directly from the Company. 

5. Company Representations. The Company hereby certifies that the representations and warranties of the Company contained in the Stock
Purchase Agreement are true and correct in all respects (in the case of any representation or warranty qualified by materiality or Material Adverse Effect, as such term is defined in the Stock Purchase Agreement) or in all material respects (in the
case of any representation or warranty not qualified by materiality or Material Adverse Effect) on and as of the date thereof and on and as of the Closing Date with the same effect as though made at and as of such date (except those representations
and warranties that address matters only as of a specified date, the accuracy of which shall be determined only as of that specified date in all respects). 

6. Delaware Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and
federal courts sitting in the State of Delaware in each case located in the City of Dover and County of Kent. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Dover, County of
Kent for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim

  
 3 

 
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at
the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any other manner permitted by law. 
 7. Notice. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the
signature pages attached hereto prior to 5:30 p.m. (Pacific Time) on a business day, (b) the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the
signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Pacific Time) on any business day, (c) the second (2nd) business day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service, (d) upon actual receipt by the party to whom such notice is required to be given, or (e) if delivered by e-mail, upon the sending thereof so long as a copy of the
same is also sent by one of the other means set forth in subclauses (a)-(d). The address for such notices and communications shall be as set forth on the signature pages attached hereto or such other address as the party to whom notice is to be
given may have furnished to the other party in writing in accordance herewith. “Business day” shall mean any day other than a day on which banking institutions in the State of Delaware are legally closed for business. 

8. Successors. The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and permitted assigns. 
 (Signature Page Follows) 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Share Issuance Agreement as of the
Effective Date. 
  

									
	COMPANY:	 		 	INVESTOR:
			
	IGNYTA, INC.,	 		 	ELI LILLY AND COMPANY,
	a Delaware corporation	 		 	an Indiana corporation
					
	By:	 		 		 	By:	 	
		 	  
	 		 		 	  

	Name:	 	Jonathan E. Lim, M.D.	 		 	Name:	 	
	Title:	 	President and Chief Executive Officer	 		 	Title:	 	
	Address:	 	11111 Flintkote Avenue	 		 	Address:	 	
		 	San Diego, California 92121	 		 		 	
	Fax:	 	(858) 255-5960	 		 	Fax:	 	
	Email:	 	jl@ignyta.com	 		 	Email:	 	

  

									
	With copies to (which shall not constitute notice):	 		 	With a copy to (which shall not constitute notice):
			
	Ignyta, Inc.	 		 	Eli Lilly and Company
	11111 Flintkote Avenue	 		 	Lilly Corporate Center
	San Diego, California 92121	 		 	Indianapolis, Indiana 46285
	Attn: Matthew W. Onaitis, Esq.	 		 	Attn: Joseph Marxer
	Fax: (858) 255-5960	 		 	Fax: (317) 433-6610
	Email: mo@ignyta.com	 		 	Email: marxer_joseph_h@lilly.com
			
	Latham & Watkins LLP	 		 	
	12670 High Bluff Drive	 		 	
	San Diego, CA 92130	 		 	
	Attn: Cheston J. Larson, Esq.	 		 	
	Fax: (858) 523-5450	 		 	
	Email: cheston.larson@lw.com	 		 	

 [Signature Page to Share Issuance Agreement] 

 Schedule 11.4 

Initial Press Release 
  

 
 Ignyta Announces Acquisition of Exclusive Rights 

to Taladegib Oncology Program from Lilly 
  

	 	•	 	Exclusive license of Phase 1 clinical development program with compelling proof-of- concept data 

  

	 	•	 	Concurrent $30 million equity investment in Ignyta by Lilly 

  

	 	•	 	Lilly to maintain certain rights to develop and commercialize taladegib in combination with other Lilly compounds 

  

	 	•	 	Ignyta to host conference call and simultaneous webcast to discuss the transaction at 8:00 am ET (5:00 am PT) on Monday, November 9, 2015 

SAN DIEGO, November 8, 2015 – Ignyta, Inc. (Nasdaq: RXDX) (“Ignyta”), a precision oncology biotechnology company, today announced the
exclusive license of worldwide rights relating to Eli Lilly and Company’s taladegib oncology development program in exchange for an upfront payment of $2.0 million in cash and the issuance to Lilly of [    ] million shares
of Ignyta’s common stock. Taladegib is a potent, orally bioavailable small molecule hedgehog/smoothened antagonist that has achieved clinical proof-of-concept and a recommended Phase 2 dose based on results from prior clinical studies. Ignyta
also licensed exclusive worldwide rights to the topical formulation of taladegib, which is a late preclinical program being developed for the potential treatment of patients with superficial and nodular basal cell carcinoma. 

Concurrently with the license, Ignyta entered into a stock purchase agreement with Lilly under which Lilly will purchase a further 1.5 million shares of
Ignyta common stock at a price of $20 per share in a private placement. Lilly has agreed not to sell or otherwise transfer any of the shares acquired from Ignyta until May 6, 2016, and Ignyta is required to register the resale of the shares
issued to Lilly with the Securities and Exchange Commission (SEC) prior to such date. 
 Under the license agreement, Ignyta is obligated to pay to Lilly
development and sales milestones related to taladegib products totaling up to approximately $38 million (a portion of which may be paid in Ignyta equity), along with royalties on net sales of taladegib products. Ignyta also granted back to Lilly
non-exclusive rights to develop and commercialize taladegib-containing products in combination with certain Lilly compounds. Lilly is obligated to pay to Ignyta a royalty on net sales of such combination products it commercializes. Further financial
terms were not disclosed. 
 “We are pleased to be working with Ignyta to further the development of taladegib and explore its potential to help
patients across multiple tumor types,” said Richard Gaynor, M.D., senior 

 

 
  
 vice president, product development and medical
affairs for Lilly Oncology. “Lilly continues to raise the bar on innovation by leveraging external relationships and expertise. Moreover, we are looking forward to working with Ignyta on potential combination therapies with other Lilly
compounds”. 
 “The exclusive license of this clinical program with demonstrated compelling Phase 1 activity from Lilly is well aligned with our
strategic vision of developing first-in-class and/or best-in-class therapeutics that can potentially eradicate residual disease in precisely defined patient populations,” said Jonathan Lim, M.D., Chairman and CEO of Ignyta. “This new
targeted oncology program is a hedgehog/smoothened antagonist that complements our pipeline well and provides us with exciting potential monotherapy and combination therapy approaches across multiple solid tumor indications. We are grateful to Lilly
for sharing Ignyta’s precision oncology vision and recognizing the strong strategic fit of taladegib with our pipeline and capabilities, which led to its $30 million investment in the company.” 

Ignyta Slide Deck and Conference Call 
 Ignyta has posted
a slide presentation relating to the Lilly transaction, its new development program, the concurrent equity financing and its third quarter 2015 company highlights and financial results on the Investors page of the company’s website at
http://investor.ignyta.com. On Monday, November 9, 2015, Ignyta will host a conference call with interested parties beginning at 8:00 a.m. ET (5:00 a.m. PT) to discuss the transactions and related matters. A live webcast of the
conference call will be available online on the Investors page of the company’s website at http://investor.ignyta.com. The call will also be archived and accessible at that site for one year. Alternatively, callers may participate in the
conference call by dialing (888) 734-0328 (domestic) or [(678) 894-3054] (international), and entering passcode 75823674. 
 Discussion during the
conference call may include forward-looking statements regarding such topics as, but not limited to, Ignyta’s development plans for its new product candidate, its other product candidates and discovery programs, the company’s financial
status, and any comments the company may make about its future plans or prospects in response to questions from participants on the conference call. 

About Ignyta, Inc. 
 Ignyta, Inc., located in San Diego,
California, is a precision oncology biotechnology company pursuing an integrated therapeutic (Rx) and companion diagnostic (Dx) strategy for treating cancer patients. The company’s goal with this Rx/Dx approach is to discover, develop and
commercialize new drugs that target activated cancer genes and pathways for the customized treatment of cancer. It aims to achieve this goal by pairing each of its product candidates with 

 

 
  
 biomarker-based companion diagnostics that are
designed to identify, at the molecular level, the patients who are most likely to benefit from the precisely targeted drugs the company develops. For more information, please visit: www.ignyta.com. 

Lilly Forward-Looking Statement 
 This press
release contains forward-looking statements about the benefits of collaboration between Lilly and Ignyta. It reflects Lilly’s and Ignyta’s current beliefs; however, as with any such undertaking, there are substantial risks and
uncertainties in the process of implementing the transaction and in drug development and commercialization. There is no guarantee that Lilly will realize the expected benefits of the transaction, that product will be approved by the FDA on the
anticipated timeline or at all, that product will be/will continue to be commercially successful, or that collaborator’s pipeline will yield commercially successful products. For further discussion of these and other risks and uncertainties,
please see Lilly’s latest Forms 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. The companies undertake no duty to update forward-looking statements. 

Ignyta Forward-Looking Statements 
 This press
release contains forward-looking statements about Ignyta as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are
forward-looking statements. Such forward-looking statements include, among other things, references to the development of Ignyta’s new or other product candidates, the potential advantages and first-in-class or best-in- class nature of these
drug programs and the potential for Ignyta to establish a leadership position in oncology personalized medicine and provide benefit to cancer patients. Actual results could differ from those projected in any forward-looking statements due to
numerous factors. Such factors include, among others, the inherent uncertainties associated with developing new products or technologies and operating as a development stage company; regulatory developments in the United States and foreign
countries; Ignyta’s ability to develop, complete preclinical studies and clinical trials for, obtain approvals for and commercialize any of its product candidates; changes in Ignyta’s plans to develop and commercialize its product
candidates; the potential for final results of ongoing clinical trials of Ignyta’s product candidates, or any future clinical trials of Ignyta’s product candidates, to differ from preliminary or expected results; Ignyta’s ability to
raise any additional funding it will need to continue to pursue its business and product development plans; Ignyta’s ability to obtain and maintain intellectual property protection for its product candidates; the potential for the company to
fail to maintain the CLIA registration of its diagnostic laboratory or to fail to achieve full CLIA accreditation of such laboratory; the loss of key scientific or management personnel; 

 

 
  
 competition in the industry in which Ignyta
operates; and market conditions. These forward-looking statements are made as of the date of this press release, and Ignyta assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from
those projected in the forward-looking statements. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents the company files with the SEC
available at www.sec.gov, including without limitation Ignyta’s Annual Report on Form 10-K for the year ended December 31, 2014 and subsequent Quarterly Reports on Form 10-Q.Exhibit 4.3

 

**Confidential
portions have been omitted pursuant to a request for confidential treatment and have been filed separately with the Securities
and Exchange Commission (the “Commission”)**

 

LICENSE
AGREEMENT

 

This
Research and License Agreement (“Agreement”) is made in Jerusalem this 30th day of March 2017 (the
“Effective Date”), by and between:

 

YISSUM
RESEARCH DEVELOPMENT COMPANY OF THE HEBREW UNIVERSITY OF JERUSALEM, LTD., of Hi Tech Park, Edmond J. Safra Campus, Givat Ram,
Jerusalem 91390, Israel (“Yissum”) of the first part; and

 

THERAPIX
BIOSCIENCES LTD., of 5 Azrieli Center (Square Tower) 27 Fl., Tel-Aviv 6702501, Israel; (the “Company”),
of the second part;

 

(each
of Yissum and the Company, a “Party”, and collectively the “Parties”)

 

	WHEREAS:	in
    the course of research conducted by Prof. Elka Touitou (the “Researcher”), at the University (as defined
    in Section 1 below), the Researcher developed technology comprising Compositions for Nasal Delivery, as more fully
    described in the patents listed in Appendix A (collectively, the “Existing Patents”); and

 

	WHEREAS:	pursuant
    to the regulations of the University, the rights and title to all inventions, know-how and the results of research created
    by scientists of the University vest solely with Yissum, including the technology developed by the Researcher as aforesaid;
    and

 

	WHEREAS:	in
    the course of a license previously granted by Yissum to a third party regarding the Existing Patents, and which was duly terminated
    by Yissum (the “Previous License”), certain know-how was created, as more fully described in Appendix
    B (the “Existing Know-How”), which following the termination of the Previous License was assigned in
    its entirety to, and is currently owned in its entirety, without restriction, by Yissum;

 

	WHEREAS:	the
    Company has represented to Yissum that (i) the Company is experienced in the development of products in the Field similar
    to those to be based on the inventions that are the subject of this Agreement; and (ii) either by itself or through third
    parties, it has the financial capacity and the strategic commitment to facilitate the development, production, marketing,
    sale and distribution of such products; and

 

	WHEREAS:	the
    Company wishes to obtain a license from Yissum for the development and commercialization, in the Field, of the inventions
    covered by the Existing Patents, as well as a license for
    the use of the Existing Know-How for this purpose; and

  

	WHEREAS:	Yissum
    agrees to grant the Company such a license, all in accordance with the terms and conditions of this Agreement.

 

     

     

    

 

NOW
THEREFORE THE PARTIES DO HEREBY AGREE AS FOLLOWS:

 

	1.	Interpretation
    and Definitions

 

	 	1.1.	The
    preamble and appendices to this Agreement constitute an integral part hereof and shall be read jointly with its terms and
    conditions.

 

	 	1.2.	In
    this Agreement, unless otherwise required or indicated by the context, the singular shall include the plural and vice-versa,
    the masculine gender shall include the female gender, “including” or “includes” shall mean including,
    without limiting the generality of any description preceding such terms and the use of the term “or” shall mean
    “and/or” and any reference to the term “sale” shall include the sale, lease, rental, or other disposal
    of any Product.

 

	 	1.3.	The
    headings of the Sections in this Agreement are for the sake of convenience only and shall not serve in the interpretation
    of the Agreement.

 

	 	1.4.	In
    this Agreement, the following capitalized terms shall have the meanings appearing alongside them, unless provided otherwise:

 

	 	1.4.1.	“Affiliate”
    shall mean any person, organization or other legal entity which controls, or is controlled by, or is under common control
    with, the Company. “Control” shall mean the holding of more than fifty percent (50%) of (i) the equity,
    or (ii) the voting rights, or (iii) the right to elect or appoint directors. 

 

	 	1.4.2.	“Development
    Plan” shall mean the written plan and timetable, a copy of which is attached to this Agreement as Appendix C,
    for the development and the commercialization of Products, including specific development milestones, prepared by the Company
    and approved by Yissum pursuant to Section 5.1 below.

 

	 	1.4.3.	“Development
    Results” shall mean the results of activities carried out by the Company or by third parties (other than the Researcher
    and his/her team or any other University employee) at the direction of the Company pursuant to the Development Plan, including
    any invention, patent or patent application, product, material, method, discovery, composition, process, technique, know-how,
    data, information or other result which do not form part of the Licensed Technology, and further including any governmental
    or regulatory filing submitted, or approval, license, registration, or authorization obtained, by the Company, an Affiliate
    or Sublicensee in respect of the Products, as well as any other information, data, material, results, devices and know-how
    arising from the performance of the Development Plan.

 

    	 	2	 

     

    

 

	 	1.4.4.	“Field”
    shall mean nasal delivery of cannabinoids, excluding any use or exploitation of cannabinoids in conjunction or combination
    with Tramadol, it being clarified that exploitation of cannabinoids in conjunction or combination with other substances is
    included. 

 

	 	1.4.5.	“First
    Commercial Sale” shall mean the first sale of a Product by the Company, an Affiliate or a Sublicensee after the
    receipt of any required regulatory approval to market and sell such Product. Notwithstanding the foregoing and for the avoidance
    of doubt, sales of Products for the purposes of clinical trials or other testing prior to a First Commercial Sale shall entitle
    Yissum to payment of consideration in accordance with Sections 7.2 (Royalties); 7.4 (Milestone Payments); and 7.5 (Sublicense
    Fee) of this Agreement, but shall not be considered a First Commercial Sale.

 

	 	1.4.6.	“Know-How”
    shall mean (i) any non-public, proprietary, tangible or intangible information, techniques, technology, practices, trade secrets,
    inventions, methods, processes, knowledge, ancillary materials, results or devices (whether patentable or not) developed by
    the Researcher, prior to the execution of this Agreement, solely and directly related to the subject matter claimed in the
    Existing Patents, and belonging to Yissum and described generally in Appendix A; and (ii) the Existing Know-How belonging
    to Yissum and described generally in Appendix B.

 

	 	1.4.7.	“License”
    shall have the meaning set forth in Section 3.1 below. 

 

	 	1.4.8.	“Licensed
    Patents” shall mean (i) the Existing Patents, and any patent application that claims priority therefrom; as well
    as (ii) all divisions, continuations, continuations-in-part, re-examinations, reissues, renewals, registrations, confirmations,
    substitutions, or extensions, including European Supplementary Protection Certificates (“SPCs”) (within
    the meaning of such term under Council Regulation (EU) No. 1768/92), and/or any other similar statutory protection, and any
    provisional applications, national, regional, PCT or similar applications and any and all patents issuing from, and patentable
    inventions, methods, processes, and other subject matter disclosed or claimed in, any or all of the foregoing.

 

	 	1.4.9.	“Licensed
    Technology” shall mean the Know-How, the Licensed Patents and to the extent applicable, Research Results.

 

	 	1.4.10.	“Net
    Sales” shall mean:

 

	 	(a)	the
    gross sales price invoiced for sales of Products by the Company, an Affiliate or Sublicensee to a third party ; or

 

    	 	3	 

     

    

 

	 	(b)	the
    fair market value of non-monetary consideration received in connection with such sales; 

 

After deduction of: (i) discounts
    and return credits to the extent actually taken by third parties; and (ii) to the extent separately stated on purchase orders
    or invoices, sales and other applicable taxes, including VAT, customs, duties or other governmental charges levied on the
    production, sale, transportation, import or export, delivery, (but excluding income tax and the like) or paid by customers
    for transfer in full to applicable tax authorities; provided that such deductions shall be reasonable and directly related
    to the sale of Products that were awarded within the regular running of the business of the Company, Affiliate or Sublicensee.
    For the sake of clarity, any payment or rebate received by the Company, an Affiliate or Sublicensee from any governmental
    agency directly in relation to the sales shall be considered as Net Sales.

 

In
the event of sales of Products made through a distributor, or marketing agent, where the Company, Affiliate or Sublicensee is
entitled to receive from such distributor, or marketing agent, in addition to any fixed price, any further compensation for such
transfer based upon the price at which the distributor or marketing agent sells Products to a third party, such further compensation,
when received by the Company, Affiliate or Sublicensee from such distributor, or marketing agent, shall also be deemed “gross
sales” for the purposes of this Agreement.

 

In
the event of sales or deductions not made at “arms-length”, then for the purpose of calculation of Royalties (as defined
below) to Yissum, Net Sales shall be calculated in accordance with arms-length prices for sale of Products to an independent third
party purchaser and arms-length deductions, to be determined by the current market conditions, or in the absence of such conditions,
according to the assessment of an independent appraiser to be selected by the Parties.

 

With
respect to sales by the Company or its Affiliate or Sublicensee, as applicable, to any Affiliate or Sublicensee of any of the
foregoing, as the case may be, the term “Net Sales” shall mean the amount received by such Affiliate or Sublicensee
on resale to an independent third party after deduction of the items specified above, to the extent applicable.

 

	 	1.4.11.	“Product”
    shall mean any product, system, device, material, method, process or service, the development, obtaining regulatory approvals
    (including clinical development, marketing and sales) manufacture, provision, marketing or sale of which, in whole or in part
    (i) uses, exploits, comprises, contains, improves upon or incorporates the Licensed Technology or the Development Results
    or any part thereof, or is otherwise covered thereby, or falls within the scope thereof, in whole or in part, or uses the
    Licensed Technology or the Development Results as a basis for subsequent modifications; or (ii) but for the License (as defined
    below) would infringe any claim of a Licensed Patent.

  

    	 	4	 

     

    

 

	 	1.4.12.	“Representatives”
    shall mean employees, researchers, officers, agents, subcontractors, consultants, and/or any other person or entity acting
    on a Party’s behalf. 

 

	 	1.4.13.	“Research”
    shall mean research which may be conducted by the Researcher as set forth in Section 2.1 below.

 

	 	1.4.14.	“Researcher”
    shall mean Professor Elka Touitou, or such other person as determined and appointed from time to time by Yissum, with the
    written agreement of the Company, to supervise and to perform the Research, if applicable.

 

	 	1.4.15.	“Research
    Results” shall mean any inventions, products, materials, compounds, compositions, substances, methods, processes,
    techniques, know-how, data, information, discoveries and other results of whatsoever nature, discovered or occurring in the
    course of, or arising from, the performance of the Research, including any patent applications and patents (which shall be
    added to the list of Licensed Patents set forth on Appendix A), information, material, results, devices or know-how
    arising therefrom. 

 

	 	1.4.16.	“Royalties”
    shall have the meaning set forth in Section 7.2 below.

 

	 	1.4.17.	“Subcontracting
    Agreement” shall mean (i) a bona fide subcontracting agreement with a subcontractor in which the Company must grant
    the subcontractor the right to make use of the Licensed Technology on behalf of the Company, and for which use the Company
    is required to pay or otherwise compensate the subcontractor, including, but not limited to, manufacturing or developing any
    of the Products (or part thereof); or (ii) a bona fide arms-length research agreement, pursuant to which an academic or research
    institution is engaged for the purpose of performing research, on the Company's behalf, for the development of any of the
    Products (or part thereof); provided that in no event shall the consideration (if any) therefor comprise any Products; and
    further provided that such subcontracting agreement in (i) and (ii) above shall contain terms substantially as protective
    in relation to the Licensed Technology, as the terms of this Agreement; and the term “Subcontractor” shall
    be construed accordingly.

 

    	 	5	 

     

    

 

	 	1.4.18.	“Sublicense”
    shall mean any grant by the Company or its Affiliates of any of the rights granted under this Agreement or any part thereof;
    including the right to develop, manufacture, market, sell or distribute the Licensed Technology or any Product, for which
    grant the recipient of the Sublicense is required to pay the grantor of the Sublicense (or the grantor's related entity),
    excluding a Subcontracting Agreement and further excluding agreements with resellers, channels, or distributors that are operating
    under an agreement with Licensee or Sublicensee, or any Affiliate thereof, solely for the distribution and sale of a Product
    in its final form and paying fair market value for their purchase of the Product as a bona fide distributor or reseller, provided
    that the only license rights granted by the Licensee, Sublicensee or Affiliate, as applicable, to such reseller or distributor
    are distribution and sale (such distributors and resellers collectively: “Distributors”).

  

	 	1.4.19.	“Sublicense
    Consideration” shall mean any proceeds or consideration or benefit of any kind whatsoever, whether monetary or otherwise,
    that the Company or an Affiliate actually receive from a Sublicensee as a result of the grant of a Sublicense or an option
    for a Sublicense and/or pursuant thereto, except for (i) amounts received by the Company or an Affiliate which constitute
    royalties based on sales by Sublicensees in respect of which the Company is required to pay Royalties to Yissum, (ii) research
    and development funding pursuant to a research and development plan and budget, a copy of which will be provided to Yissum
    at its request and provided that such funding is actually used to cover the actual cost for research and development of a
    Product performed under the Sublicense agreement, and (iii) any amounts received from a Sublicensee as a result of the purchase
    of debt or equity securities by a Sublicensee (but only with respect to the portion of payments not in excess of the market
    value of such securities).

 

	 	1.4.20.	“Sublicense
    Fees” shall have the meaning set forth in Section 7.5 below.

 

	 	1.4.21.	“Sublicensee”
    shall mean any third party to whom the Company or an Affiliate shall grant a Sublicense or an option for a Sublicense. For
    the sake of clarity, Sublicensee shall include any other third party (other than a Subcontractor and Distributors) to whom
    such rights shall be transferred or assigned, or who may assume control thereof by operation of law or otherwise, it being
    clarified that a change of control in the Company shall not be deemed a transfer or assignment of rights hereunder.

 

	 	1.4.22.	“Territory”
    shall mean worldwide.

 

	 	1.4.23.	“University”
    shall mean the Hebrew University of Jerusalem and each of its branches.

 

    	 	6	 

     

    

 

	 	1.4.24.	“Valid
    Claim” shall mean (i) a claim of: (a) any issued, unexpired patent which has not been revoked or held unenforceable
    or invalid by a decision of a court or governmental agency of competent jurisdiction from which no appeal can be taken, or
    with respect to which an appeal is not taken within the time allowed for appeal, and which has not been disclaimed, denied
    or admitted to be invalid or unenforceable through reexamination, reissue, disclaimer or otherwise, or (b) any patent application
    that has not been cancelled, rejected, withdrawn or abandoned without the possibility of appeal or re-filing. For the avoidance
    of doubt, the term “Valid Claim” shall include any extension of the exclusivity period under a claim of an issued
    patent included within the Licensed Technology through patent term extension, SPC, US Patent Term Extensions (PTEs), or any
    other arrangement whereby the exclusivity period of any such patent or any part thereof is extended.

  

	2.	Research

 

	 	2.1.	Should
    the Company choose to (i) retain the services of the Researcher, or any other employee of the University for the purpose of
    conducting any research in connection with the License; or (b) grant any benefit, including cash payments or securities of
    any kind, to the Researcher, or any other employee of the University, it shall do so only through a written agreement executed
    between the Company and Yissum. The Research Results and any intellectual property resulting from the Research shall be exclusively
    owned by Yissum, and shall form part of the Licensed Technology.

 

	 	2.2.	For
    the avoidance of doubt, nothing herein shall prevent Yissum or the University or the Researcher from obtaining any finance
    or grants from other entities for research regarding the Licensed Technology, provided that such entities shall not be granted
    rights prejudicial to the rights granted to the Company in this Agreement. The results of any such research financed by other
    entities shall not form part of the Licensed Technology and shall not be subject to the License hereunder.

  

	3.	The
    License

 

	 	3.1.	Subject
    to the full performance by the Company of its obligations in accordance with this Agreement and the provisions of Section
    16, Yissum hereby grants the Company an exclusive license to make commercial use of the Licensed Technology, in order to develop,
    obtain regulatory approvals, manufacture, market, distribute or sell Products, all within the Field and the Territory only,
    subject to and in accordance with the terms and conditions of this Agreement (the “License”).

 

    	 	7	 

     

    

 

	 	3.2.	Notwithstanding
    the provisions of Section 3.1, above, Yissum, on behalf of the University, shall retain the right (i) to make, use and practice
    the Licensed Technology for the University's own research and educational purposes; and (ii) to license or otherwise convey
    the Licensed Technology, in whole or in part, to any third party for research or commercial applications outside the Field.
    In the event Yissum receive requests for the Licensed Technology from researchers at academic and/or not-for-profit research
    organizations for use in non-commercial research in the Field, Yissum will forward the requests to the Company, and the Company,
    in consultation with the Researcher, will determine whether it is willing to supply Licensed Technology for such purpose.
    Any such disclosure or other supply of Licensed Technology shall be made pursuant to the Company's standard form confidentiality
    or material transfer agreement (as the case may be) and will acknowledge Yissum’s contribution.

  

	 	3.3.	Yissum,
    through the Researcher, shall convey the Licensed Technology to the Company and provide reasonable assistance to the Company
    in implementing the same, provided that such assistance does not interfere with the Researcher's academic and other responsibilities,
    and does not exceed eight (8) hours per month (on average) during the Tech Transfer Period (as defined below). The Company
    shall cover travel expenses incurred by the Researcher for the provision of the assistance as provided herein. Without derogating
    from the foregoing, the Parties shall cooperate as shall reasonably be required in order to ensure the orderly transfer of
    Know-How to the Company's personnel be completed within three (3) months from the Effective Date (the “Tech Transfer
    Period”).. Other than as provided herein, Yissum and the Researcher shall not be obliged to provide any scientific,
    professional, technical or other support to the Company, its Affiliates or its Sublicensees.

  

	4.	Term
    of the License

 

The
License shall expire, if not earlier terminated pursuant to the provisions of this Agreement, on a country-by-country, Product-by-Product
basis, upon the later of: (i) the date of expiration in such country of the last to expire Licensed Patent included in the Licensed
Technology; (ii) the date of expiration of any exclusivity on the Product granted by a regulatory or government body in such country;
or (iii) the end of a period of fifteen (15) years from the date of the First Commercial Sale in such country. Should the periods
referred to in Subsections (i) or (ii) expire in a particular country prior to the period referred to in Subsection (iii), above,
the license in that country or those countries shall be deemed a license to the Know-How during such post-expiration period (the
“Term”).

  

    	 	8	 

     

    

 

Upon
the expiration of the later of the periods set forth in Subsections (i) through (iii) above (and provided that the License has
not been terminated prior thereto), the Company shall have a fully-paid non-exclusive license to the Know-How in the Field, and
the Company shall have an irrevocable option to obtain an exclusive license in the Field to the Know-How by agreeing to pay Yissum
fifty percent (50%) of the consideration set forth in Section 7.2 and 7.5 below, in respect of Net Sales and Sublicense Consideration
received during the period of such license which shall continue for a period of five (5) years after termination of the later
of the periods as referred to above and shall be renewed automatically for additional successive five (5) year periods, unless
the Company or Yissum notifies the other Party in writing prior to the end of the then current five (5) year period that it does
not wish the license to be renewed as aforesaid.

  

	5.	Development
    and Commercialization.

 

	 	5.1.	The
    Company undertakes, at its own expense, to use commercially reasonable efforts to carry out the development, regulatory, manufacturing
    and marketing work necessary to develop and commercialize Products in accordance with the Development Plan (including the
    Essential Development Milestones defined below) agreed by Yissum, a copy of which shall be incorporated into this Agreement
    as Appendix C within 45 (forty-five) days of the Effective Date, as such Development Plan may be amended, modified
    or replaced from time to time as determined by the Board of Directors of the Company (the "Board"), in its
    sole and absolute discretion, provided however that the Company shall amend any of the milestones set forth in Appendix
    C under the heading ‘Essential Development Milestone’ (“Essential Development Milestones”)
    only if the Company first receives the written approval of Yissum for the particular amendment. All terms and conditions of
    the License and this Agreement shall apply to the modified Development Plan and subsequent Development Results. In the event
    that there is no Development Plan (including the Essential Development Milestones) prepared by the Company that meets Yissum’s
    approval and is incorporated into this Agreement within 45 (forty-five) days of the Effective Date, then Yissum shall be entitled,
    at its sole discretion, to terminate without cause, with immediate effect, this Agreement and all rights of the Company hereunder,
    upon written notice to the Company of such termination.

 

	 	5.2.	The
    Parties shall establish a steering committee (the “Committee”) to oversee the exercise of the License.
    Each Party shall be entitled to designate two (2) representatives to the Committee (the “Committee Representatives”),
    which shall meet at least twice per calendar year. The Committee Representatives shall be bound by the confidentiality arrangements
    set out in this Agreement. The Company shall consult with Yissum, via Yissum's Committee Representatives, in respect of significant
    decisions related to the exercise of the License. For the avoidance of doubt, the Committee shall be a forum for the exchange
    of information between the Parties with respect to the foregoing matters, shall act only in an advisory capacity and shall
    not have decision-making powers.

 

    	 	9	 

     

    

 

The
Company shall, for the period of the License, (i) provide Yissum with periodic written reports (“Development Reports”)
not less than once per every six (6) months concerning all material activities undertaken in respect of the exercise of the License,
(ii) keep Yissum informed on a timely basis concerning all material activities and changes to the Development Plan undertaken
in respect of the exercise of the License, and (iii) at Yissum's reasonable request, from time to time, provide Yissum with further
information relating to the Company’s activities in exercise of the License. The Development Reports shall include detailed
descriptions of the progress and results, if any, of: (a) the tests and trials conducted and all other actions taken by the
Company pursuant to the Development Plan, and a summary of the Development Results and any other related work effected by the
Company or by any Affiliate or Sub-Licensee during the six (6) month period prior to the report, (b) manufacturing, sublicensing,
marketing and sales during the six (6) month period prior to the report; (c) the Company’s plans in respect of the testing,
undertaking of trials or commercialization of Products for the following six (6) months; and (d) projections of sales and
marketing efforts following the First Commercial Sale. Development Reports shall also set forth a general assessment regarding
the achievement of any milestones; the projected – or actual – completion date of the development of a Product and
the marketing thereof; as well as a description of any corporate transaction involving the Products or the Licensed Technology.
If progress in respect of a Product differs from that anticipated in its Development Plan or a preceding Development Report, the
Company shall explain, in its Development Report, the reason therefor and shall prepare a modified Development Plan for Yissum’s
review. The Company shall also make reasonable efforts to provide Yissum with any reasonable additional data that Yissum requires
to evaluate the performance of the Company hereunder.

  

	 	5.3.	Upon
    completion of the development of any Product, the Company undertakes to perform all commercially reasonable actions necessary
    to maximize Net Sales of such Product on a regular and consistent basis.

 

	 	5.4.	If
    the Company shall not meet one of the Essential Development Milestones within the timeframe set out in the Development Plan
    for the attainment of the said Essential Development Milestone, unless such delay is caused by (i) the requirements of a regulatory
    or other governmental authority; (ii) force majeure in accordance with Section 18.9, below; Yissum shall notify the Company
    in writing of the Company's failure to meet its obligations of diligence and shall allow the Company one hundred and twenty
    (120) days to cure such failure of diligence. If, to Yissum’s reasonable satisfaction, the Company is diligently taking
    measures to cure such failure, Yissum may, at its sole discretion, notify the Company in writing that it is extending the
    period given to cure such failure by an additional period of up to sixty (60) days. The Company's failure to cure such failure,
    to Yissum's reasonable satisfaction, within the aforementioned cure period (or extended cure period) shall be a material breach
    of this Agreement, entitling Yissum to immediate termination under Section 16.3 below.

 

    	 	10	 

     

    

 

	 	5.5.  	The Company shall
    perform all its activities hereunder in accordance with all applicable laws and regulations, and shall procure the receipt
    of all approvals and consents necessary for the performance of its obligations hereunder.

 

	6.	Sublicenses

 

	 	6.1.	The
    Company shall be entitled to grant one or more Sublicenses in accordance with the applicable terms and conditions of this
    Agreement, including the terms and conditions of this section 6, only after obtaining Yissum’s written approval regarding
    the identity of the Sublicensee and the material terms of the Sublicense, such approval not to be unreasonably denied or withheld.
    In the event that a sublicense is a Pharmaceutical Sublicensee (as defined in Section 6.3), the prior written approval of
    Yissum shall not be required, provided however Yissum shall be notified in advance and in writing of the material terms of
    the Sublicense and any amendment thereof.

 

	 	6.2.	The
    Company shall provide Yissum with an executed copy of any Sublicense within ten (10) days of its execution. Any material amendments
    to a Sublicense other than a Sublicense with a Pharmaceutical Sublicensee, shall be subject to Yissum’s prior written
    approval which shall not be unreasonably denied or withheld. The Company shall provide Yissum with an executed copy of such
    amendment to the Sublicense within ten (10) days of the execution of such amendment.

 

	 	6.3.	Any
    Sublicense shall be dependent on the validity of the License and shall terminate upon termination of the License, provided,
    however, that, for each Sublicense granted to a Pharmaceutical Sublicensee, upon termination of the License with the Company,
    if the Pharmaceutical Sublicensee is not then in breach of its Sublicense agreement with the Company such that the Company
    would have the right to terminate such Sublicense, Yissum shall be obligated, at the request of such Pharmaceutical Sublicensee,
    to enter into a new license agreement with any Pharmaceutical Sublicensee on substantially the same terms as those contained
    in the respective Sublicense agreement, provided that such terms shall be amended, if necessary, to the extent required to
    ensure that such agreement does not impose any obligations or liabilities (i) on the Company (without derogating from any
    liability due to the Company’s breach or such other liabilities that survive the termination of the Agreement), or (ii)
    on Yissum which are not included in this Agreement, applied mutatis mutandis. “Pharmaceutical Sublicensee”
    shall mean a Sublicensee that is a company in the pharmaceutical industry with annual sales of at least $500,000,000 (Five
    Hundred and Thousand Million US Dollars).

 

	 	6.4.	The
    Company shall ensure that any Sublicense shall include material terms that require the Sublicensee to comply with the terms
    of this Agreement, including Section 15 below, the breach of which terms shall be a material breach resulting in termination
    of the Sublicense. In such an event, the Company undertakes to take all reasonable steps to enforce such terms upon the Sublicensee,
    including the termination of the Sublicense. In all cases, the Company shall immediately notify Yissum of any breach of the
    material terms of a Sublicense, and shall copy Yissum on all correspondence with regard to such breach.

 

    	 	11	 

     

    

 

Furthermore,
in the context of any Sublicense, the Company will obtain an agreement from the relevant Sublicensee (i) that such Sublicensee
may only use the Licensed Technology and any related information received from the Company in connection with the further development
and/or commercialization of a Product pursuant to the terms of the Sublicense agreement, and will keep same confidential; and
(ii) naming Yissum as a third party beneficiary with the right to directly enforce the use and confidentiality provisions described
in Subsection (i) above and the reporting provisions set out in Sections 6.5 and 8.2 below.

 

	 	6.5.	Without
    derogating from the generality of Section 6.4 above, the Company shall require each Sublicensee to provide it with regular
    written royalty reports that include at least the detail that the Company is required to provide pursuant to Section 8.2 below.
    Upon request, the Company shall provide such reports to Yissum. 

 

	 	6.6.	Any
    act or omission of the Sublicensee which is not promptly remedied by the Company or the Sublicensee and which would have constituted
    a breach of this Agreement by the Company had it been an act or omission of the Company, and which the Company has not made
    best efforts to promptly cure, including termination of the Sublicense, shall constitute a breach of this Agreement by the
    Company.

 

	 	6.7.	For
    the avoidance of any doubt it is hereby declared that under no circumstance whatsoever shall a Sublicensee be entitled to
    assign such Sublicense or further Sublicense the License or any part thereof, provided, however, that a Pharmaceutical Sublicensee
    shall be entitled to sublicense its rights under such Sublicense agreement through multiple tiers to its Affiliates (through
    one or more tiers, provided that each tier is an Affiliate of the Pharmaceutical Sublicensee)(a “Sub-Sublicense”),
    without the prior written consent of Yissum; provided however that any such Sub-Sublicense shall be in compliance with the
    terms and conditions of this Agreement, including but not limited this Section 6.

 

	7.	License
    Consideration

 

In
consideration for the grant of the License, the Company shall pay Yissum the following consideration during the term of the License
as set forth in Section 4 above:

 

	 	7.1.	An
    irrevocable, non-creditable, and non-refundable License fee in the amount of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED
    PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION], to be paid within
    ten (10) days of the Effective Date.

 

    	 	12	 

     

    

 

	 	7.2.	Royalties
    at the rates set forth in Sections 7.2.1 through 7.2.3 below (respectively the “Royalty Rate”), and subject
    to the provisions of Section 7.3 below:

 

	 	7.2.1.	Royalties
    at the rate of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN
    FILED SEPARATELY WITH THE COMMISSION] in cumulative sales on a world-wide basis;

 

	 	7.2.2.	Royalties
    at the rate of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN
    FILED SEPARATELY WITH THE COMMISSION] in cumulative sales on a world-wide basis;

 

	 	7.2.3.	Royalties
    at the rate of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN
    FILED SEPARATELY WITH THE COMMISSION] in cumulative sales on a world-wide basis;

 

	 	7.3.	Royalty
    Reductions. 

 

Notwithstanding
the foregoing the following provisions shall apply with respect to reductions in the Royalties payments (the “Reductions”):

 

	 	7.3.1.	Competition:
    In the event that during the Term of the License (as defined in Section 4 above), there is any Competition (as defined below)
    with respect to a particular Product in a particular country in which such Product is being sold, and for so long as such
    Competition persists, the royalty amount payable to Yissum for sales of such Product (only) in such country shall be reduced
    by [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY
    WITH THE COMMISSION].

 

For
purposes of illustration only, if Yissum would be entitled to receive the royalty amount of [THE CONFIDENTIAL PORTION HAS BEEN
SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] if not for
any royalty reduction, as aforementioned, then in the event that there is Competition, then Yissum will be entitled to receive
the royalty amount of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS
BEEN FILED SEPARATELY WITH THE COMMISSION].

 

    	 	13	 

     

    

 

For
the purpose of this Section 7.3.1 only “Competition” shall mean, with respect to a particular Product in a
particular country, when (a) one or more Competitive Product(s) are being marketed in such country; and (b) there are no Valid
Claims covering such Product or regulatory exclusivity in respect of such Product, in such country.

 

“Competitive
Product” shall mean a product (a) containing an active pharmaceutical ingredient that is the same as the active ingredient
in a particular Product being sold in a particular country and that utilizes a nasal delivery system as the system of delivery
for such active pharmaceutical ingredient; and (b) that has obtained regulatory approval; and (c) that is legally marketed in
such country by an entity other than the Company, its Affiliates and/or Sublicensees; and (d) that at the end of the applicable
calendar year, due to the marketing and sales of the Competitive Product, there is a reduction in the volume of sales of such
Product in such country by the Company, its Affiliates and/or Sublicensees, in comparison to the previous calendar year, by at
least [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY
WITH THE COMMISSION].

 

In
the event of Competition in any particular calendar year for a particular Product in a particular country, then should there be
deductions from royalty payments that the Company was entitled under this Section 7.3.1 to deduct, but did not deduct due to the
need to compare product sales for that calendar year and the preceding calendar year, then such deductions will be rolled over
and deducted from royalty amounts payable during the first quarter of the next calendar year for sales of such Product in such
country.

 

    	 	14	 

     

    

 

	 	7.3.2	Third
    Party License. In the event that the Company is required to pay, and actually pays, during the term of the License Agreement
    royalty payments to third parties for exploitation of their intellectual property rights, covering Product technology, that
    are lawfully required for the sale of the particular Product (“Third Party Royalty Payments”), then the
    Company shall be entitled to take [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
    TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] of such Third Party Royalty Payments as a deduction from
    the gross sales amount of such Product in such country during the same period in computing the Net Sales amount for the relevant
    Product, country and period. Notwithstanding the foregoing, the Royalty Rate shall not, in any event, be reduced by more than
    [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY
    WITH THE COMMISSION] for such Products sold by the Company, its Affiliates and Sublicensees in such country.

   

	 	 	All
reductions in Royalties combined, pursuant to this Section 7.3, shall, in aggregate, be capped at, and not exceed, [THE CONFIDENTIAL
PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION]
of the respective Royalty Rate.
	 	 	 
	 	7.4.	The
    Company shall pay Yissum the following amounts in connection with the achievement of the following milestones (whether by
    the Company, an Affiliate or a Sublicensee) (each a “Milestone Payment”):

 

	 	[THE
    CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH
    THE COMMISSION]

  

	 	 	For avoidance of doubt, no Milestone Payment shall be
paid by the Company to Yissum more than once.

	 	 	In the event that the achievement of a certain milestone
(as determined above in this Section 7.4) entitles Yissum to receive both the respective Milestone Payment (as determined above
in this Section 7.4) and a Sublicense Fees payment, Yissum shall be entitled to receive a payment which is the higher of the two
amounts, but not both the respective Milestone Payment and the Sublicense Fees payment.

	 	 	 
	 	7.5.	Sublicense
    fees at a rate of [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS
    BEEN FILED SEPARATELY WITH THE COMMISSION] of Sublicense Consideration.

  

	8.	Reports
    and Accounting

 

	 	8.1.	The
    Company shall give Yissum written notice of any (i) Sublicense Consideration received; and (ii) First Commercial Sale made;
    within thirty (30) days of the particular event.

 

    	 	15	 

     

    

  

	 	8.2.	One
    (1) month after the end of each calendar quarter commencing from the earlier of (i) the First Commercial Sale; or (ii) the
    grant of a Sublicense or receipt of Sublicense Consideration, the Company shall furnish Yissum with a quarterly report (“Periodic
    Report”), certified as being correct by the chief financial officer of the Company, detailing the total sales and
    Net Sales effected during the preceding quarter, the total Sublicense Consideration received during the preceding quarter
    and the total Royalties and Sublicense Fees due to Yissum in respect of that period. Once the events set forth in Subsection
    (i) or (ii) above, have occurred, Periodic Reports shall be provided to Yissum whether or not Royalties and Sublicense Fees
    are payable for a particular calendar quarter. The Periodic Reports shall contain full particulars of all sales made by the
    Company, Affiliates or Sublicensees and of all Sublicense Consideration received, including a breakdown of the number and
    type of Products sold, discounts, returns, the country and currency in which the sales were made, invoice dates and all other
    data enabling the Royalties and Sublicense Fees payable to be calculated accurately. 

 

	 	8.3.	On
    the date prescribed for the submission of each Periodic Report, the Company shall pay the Royalties and Sublicense Fees due
    to Yissum for the reported period, against a valid invoice issued by Yissum. All payments under this Agreement shall be computed
    and paid in US dollars, using the appropriate foreign exchange rate reported by the Bank of Israel on the last working day
    of the calendar quarter in respect of which the revenues are being reported. Payment of value added tax or any other tax,
    charge or levy applicable to the payment to Yissum of the consideration as detailed in Section 7 above, (except income tax,
    which shall be borne by Yissum), shall be borne by the Company and added to each payment in accordance with the statutory
    rate in force at such time. All payments made to Yissum by an Israeli entity shall be made without the withholding of any
    taxes, provided that Yissum shall supply such Israeli entity, to the extent required, with a valid tax certificate indicating
    an official exemption from tax withholding (פטור מניכוי מס
    במקור). ). For the avoidance of doubt, if Yissum does not supply such certificate, the Israeli
    entity shall withhold taxes according to applicable law. All other payments to Yissum by non-Israeli entities shall be made
    without the withholding of any taxes. Payments may be made by check or by wire transfer to the following account:

 

Name
of Bank: Hapoalim

Bank
Key: 12

Bank's
address: 1 Hamarpe Street, Jerusalem, Israel

Branch:
Jerusalem Business Branch - 436

Bank
account Number: 12-436-142-155001

Swift
Code: POALILIT

IBAN:
IL56-0124-3600-0000-0155-001 (for payment from Europe only)

 

    	 	16	 

     

    

 

	 	8.4.	The
    Company shall keep, and shall require its Affiliates and Sublicensees to keep, full and correct books of account in accordance
    with applicable Generally Accepted Accounting Principles as required by international accounting
    standards enabling the Royalties and Sublicense Fees to be calculated accurately. Starting from the first calendar year after
    the First Commercial Sale, or the first grant of a Sublicense, whichever occurs first, and until twenty four (24) months after
    the lapse of the term of the License, an annual report, authorized by a certified public accountant, shall be submitted to
    Yissum within ninety (90) days of the end of each calendar year, detailing Net Sales and Sublicense Consideration, Royalties
    and Sublicense Fees, both due and paid (the “Annual Reports”). The Annual Reports shall also include the
    Company's sales and royalty forecasts for the following calendar year, if available.

 

The
Company shall, and shall require and cause its Affiliates and Sublicensees to, retain such books of account for five (5) years
after the end of each calendar year during the period of this Agreement, and, if this Agreement is terminated for any reason whatsoever,
for five (5) years after the end of the calendar year in which such termination becomes effective.

 

	 	8.5.	Yissum
    will either (i) allow the Company a credit against future Royalties or Sublicense Fees to be paid for Royalties or Sublicense
    Fees previously paid on account of Net Sales, as appropriate, that were reported as bad debts in the Company's annual audited
    financial statements; or (ii) if such bad debts are recorded by the Company in its annual audited financial statement after
    the Company's obligation to pay Royalties or Sublicense Fees has ceased, Yissum shall repay any Royalties or Sublicense Fees
    received on account of Net Sales that were reported as bad debts by the Company.

 

	 	8.6.	Yissum
    shall be entitled to appoint not more than two (2) representatives who must be independent certified public accountants or
    such other professionals as appropriate (the “Auditors”) to inspect during normal business hours the Company’s
    and its Affiliates’ books of account, records and other relevant documentation to the extent relevant or necessary for
    the sole purpose of verifying the performance of the Company’s payment obligations under this Agreement, the calculation
    of amounts due to Yissum under this Agreement and of all financial information provided in the Periodic Reports, provided
    that Yissum shall coordinate such inspection with the Company or Affiliate (as the case may be) in advance. In addition, Yissum
    may require that the Company, through the Auditors, inspect during normal business hours the books of account, records and
    other relevant documentation of any Sublicensees, to the extent relevant or necessary for the sole purpose of verifying the
    performance of the Company’s payment obligations under this Agreement, the calculation of amounts due to Yissum under
    this Agreement and of all financial information provided in the Periodic Reports, and the Company shall cause such inspection
    to be performed. The Parties shall reconcile any underpayment or overpayment within thirty (30) days after the Auditors deliver
    the results of the audit. Any underpayment shall be subject to interest in accordance with the terms of Section 8.7 below.
    In the event that any inspection as aforesaid reveals any underpayment by the Company to Yissum in respect of any year of
    the Agreement in an amount exceeding five percent (5%) of the amount actually paid by the Company to Yissum in respect of
    such year, then the Company shall, in addition, pay the cost of such inspection. 

 

    	 	17	 

     

    

  

	 	8.7.	Any
    sum of money due Yissum which is not duly paid on time shall bear interest from the due date of payment until the actual date
    of payment at the rate of annual LIBOR plus three percent (3%) per annum accumulated on a monthly basis.

 

	9.	Ownership

 

	 	9.1.	All
    right, title and interest in and to the Licensed Technology vest and shall vest solely in Yissum, and the Company shall hold
    and make use of the rights granted pursuant to the License solely in accordance with the terms of this Agreement.

 

	 	9.2.	All
    rights in the Development Results shall be solely owned by the Company, except to the extent that an employee of the University,
    including the Researcher, is considered an inventor of a patentable invention arising from the Development Results, in which
    case such invention and all patent applications and/or patents claiming such invention (“Joint Patents”)
    shall be owned jointly by the Company and Yissum, as appropriate, and Yissum's share in such Joint Patents shall be automatically
    included in the Licensed Technology. 

 

	 	9.3.	Upon
    the execution of this Agreement, the Company shall execute the letter of assignment attached to this Agreement as Appendix
    D concerning its interest in any Joint Patents that will provide that such interest will be irrevocably assigned to Yissum
    in the event that the Company is declared bankrupt, is voluntarily or involuntarily dissolved, or otherwise ceases operations.

 

	10.	Patents

 

	 	10.1.	Within
    ten (10) days of the Effective Date, the Company shall reimburse Yissum for all previous documented expenses and costs relating
    to the registration and maintenance of the Licensed Patents listed in Appendix A (the “Historical Patent Costs”)
    which, as of the Effective Date, are approximately [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST
    FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION].

 

	 	10.2.	Yissum,
    in close coordination and cooperation with the Company, and at the Company’s expense, shall be responsible for the filing,
    prosecution and maintenance of the Licensed Patents and the Joint Patents in the Territory, through Yissum's patent counsel;
    provided however that the Company may elect to file, prosecute and maintain the Joint Patents through a patent counsel selected
    by the Company and reasonably acceptable to Yissum (the “Ongoing Patent Expenses”). Each application and
    every patent registration shall be made and registered in the name of Yissum or, should the law of the relevant jurisdiction
    so require, in the name of the relevant inventors and then assigned to Yissum, provided that any application or registration
    relating to the Joint Patents shall be made and registered jointly in the name of Yissum and the Company. The Company agrees
    to have Yissum's patent counsel directly bill the Company for such expenses and shall directly pay such bills in accordance
    with patent counsel's directions.

  

    	 	18	 

     

    

 

	 	10.3.	Notwithstanding
    Sections 10.1 and 10.2 above, should Yissum grant a third party a license to some or all of the Licensed Patents outside the
    Field (a “Third Party License”), then, the Company's reimbursement obligation shall be reduced to a percentage
    of the Historical Patent Expenses and Ongoing Patent Expenses going forward equal to the fraction 1/n+1, where "n"
    is the number of third parties to which a Third Party License has been granted (the “Reduced Percentage”).
    The Reduced Percentage shall be payable for so long as at least one such Third Party License remains in effect. In addition,
    following the grant of a Third Party License, the Company shall be entitled to credit for any Ongoing Patent Expenses and
    Historical Patent Expenses that were previously paid by the Company in excess of the amount that would have been payable by
    the Company in accordance with the Reduced Percentage, such credit to be applied against future payments of the Ongoing Patent
    Expenses and Historical Patent Expenses that become due pursuant to this Agreement, for so long as such Third Party License
    remains in effect. By way of illustration only: (a) upon the grant of the first Third Party License by Yissum, the Company's
    reimbursement obligation shall be reduced to 50% of the Ongoing Patent Expenses going forward, and the Company shall be entitled
    to a credit equal to 50% of the Ongoing Patent Expenses and Historical Patent Expenses already paid by the Company up to such
    date; and (b) upon the grant of a second Third Party License, the Company's reimbursement obligation shall be reduced to 33.33%
    of the Ongoing Patent Expenses going forward, and the Company shall be entitled to an additional credit equal to 16.67% of
    the Ongoing Patent Expenses and Historical Patent Expenses for which payments have already been made by the Company.

 

	 	10.4.	The
    Company undertakes and warrants that no amounts utilized by the Company for such payment of Ongoing Patent Expenses or for
    the reimbursement of Yissum’s past documented expenses and costs relating to the registration and maintenance of the
    Licensed Patents listed in Appendix A will be (i) funding provided by the Office of the Chief Scientist at the Israeli
    Ministry of Economics (the “OCS”); (ii) funding that is earmarked as supplementary funding (“mimun
    mashlim”) for an OCS approved project; or funding provided to the Company from any other governmental or regulatory
    institution of the State of Israel.

 

	 	10.5.	Notwithstanding
    the foregoing in Section 10.2, above, upon the execution of this Agreement, the Company shall deposit with Yissum the amount
    of $5,000 to secure the payment of the Ongoing Patent Expenses (the “Expense Deposit”). Should the Company
    fail to pay any amounts due in connection with the Ongoing Patent Expenses within thirty (30) days following receipt of Yissum's
    written request accompanied by a detailed account, Yissum shall be entitled to pay the unpaid expenses from the Expense Deposit.
    In the event that Yissum utilizes some or all of the Expense Deposit as set forth in this Section, it shall so notify the
    Company in writing. The Company shall be obligated to deposit with Yissum an amount equal to the difference between $5,000
    and the balance in the Expense Deposit within thirty (30) days of its receipt of Yissum's notice. Upon termination or expiration
    of this Agreement, Yissum shall return to the Company the nominal amount of any remaining Expense Deposit that will not be
    required to cover Ongoing Patent Expenses for the period up until such termination or expiration.

 

    	 	19	 

     

    

  

	 	10.6.	Subject
    to the above, the Parties shall consult and make every effort to reach agreement in all respects relating to the manner of
    making applications for and registering the patents, including the time of making the applications, the countries where applications
    will be made and all other particulars relating to the registration and maintenance of the Licensed Patents. In the case of
    a disagreement between the Parties, the recommendations of the Patent Counsel handling the particular Licensed Patent shall
    be followed.

 

	 	10.7.	The
    Parties shall assist each other in all respects relating to the preparation of documents for the registration of any patent
    or any patent-related right upon the request of the other Party. Both Parties shall take all appropriate action in order to
    assist the other to extend the duration of a Licensed Patent or obtain any other extension obtainable under law, to maximize
    the cost-effective scope of the protection afforded by the Licensed Patents.

 

	 	10.8.	In
    the event that the Company is approached by a patent examiner or attorney in connection with any matter that is the subject
    matter of this Agreement, it shall give Yissum immediate notice of such approach. The Company shall only reply to such approaches
    after consultation with Yissum and subject to its consent, such consent not to be unreasonably withheld or delayed.

 

	 	10.9.	The
    Company, shall mark, and shall cause its Affiliates and Sublicensees to mark, all Products covered by one or more of the Licensed
    Patents with patent numbers (or the legend “patent pending”) applicable to such Product. The Company shall take
    all reasonable action on its part to ensure that its Sublicensee complies with the provisions of this Section.

 

If
at any time during the term of this Agreement the Company decides that it is undesirable, as to one or more countries, to file,
prosecute or maintain any patents or patent applications within the Licensed Patents, it shall give at least ninety (90) days
written notice thereof to Yissum, and upon the expiration of the ninety (90) day notice period (or such longer period specified
in the Company's notice) the Company shall be released from its obligations to bear the expenses to be incurred thereafter as
to such patent(s) or patent application(s). As of such time, such patent(s) or application(s) shall be removed from the Licensed
Technology and Yissum shall be free to grant rights in and to such patent(s) or patent application(s) in such countries to third
parties, without further notice or obligation to the Company, and the Company shall have no rights whatsoever to exploit such
patent(s) or patent application(s) or with respect to such abandoned jurisdiction only, the Know-How related thereto). Notwithstanding
the foregoing, the Company shall be required to bear the costs and expenses for filing, prosecuting and maintaining the Licensed
Patents in at least the following jurisdictions: the United States, Israel, Japan, China, India, the United Kingdom, Germany,
France, Italy and Spain (the “Required Jurisdictions”). Should the Company fail to do so in any one of the
Required Jurisdictions, and such default is not cured within 30 business days from the date notice of such failure is given to
the Company by Yissum, Yissum shall be entitled to terminate this Agreement without any further notice and without any need to
compensate the Company in any manner.

 

    	 	20	 

     

    

 

	 	10.10.	The
    foregoing does not constitute an obligation, representation or warranty, express or implied, on the part of Yissum that any
    patent or patent registration application will indeed be made or registered or be registerable in respect of the Licensed
    Technology or any part thereof, nor shall it constitute an obligation, representation, or warranty, express or implied, on
    the part of Yissum that a registered patent will be valid or afford any protection. For the avoidance of doubt, nothing in
    this Agreement constitutes an obligation, representation or warranty, express or implied, on the part of Yissum regarding
    the validity of or the protection afforded by any of the patents or patent registration applications detailed in Appendix
    A or regarding the commercial exploitability or any other value of the Licensed Technology or that the Licensed Technology
    will not infringe the rights of any third party.

 

	11.	Patent
    Rights Protection

 

	 	11.1.	The
    Company and Yissum shall each inform the other promptly in writing of any alleged infringements by a third party of the Licensed
    Patents in the Territory, together with any available written evidence of such alleged infringement.

 

	 	11.2.	To
    the extent permitted by applicable law, if the Company, its Affiliate or any Sublicensee makes (directly or indirectly), any
    assertion, application or claim, or initiates or supports (directly or indirectly) any action or proceeding, that challenges
    the validity, enforceability or scope of any of the Licensed Patents (“Challenge Proceeding”), Yissum will
    have the right, at any time following the commencement of the Challenge Proceeding, to terminate this Agreement and the Royalty
    rates specified in this Agreement will be tripled with respect to Net Sales of Products that are sold, leased or otherwise
    transferred during the course of such Challenge Proceeding, and the percentage due to Yissum in respect of Sublicense Consideration
    will be tripled with respect to Sublicense Consideration during such period. If the outcome of such Challenge Proceeding is
    a determination in favor of Yissum, (a) the Royalty rate with respect to Net Sales of Products and the percentage due to Yissum
    with respect to Sublicense Consideration will remain at such triple rate as aforesaid; and (b) Company will reimburse Yissum
    for all expenses incurred by Yissum (including reasonable attorneys’ fees and court costs) in connection with such Challenge
    Proceeding. If the outcome of such Challenge Proceeding is a determination in favor of Company, Company will have no right
    to recoup any Royalties or Sublicense Fees paid before or during the course of such Challenge Proceeding.

  

    	 	21	 

     

    

 

	 	11.3.	The
    Company, its Affiliate or Sublicensee shall have the first right in its own name and at its own expense to initiate any legal
    action and enforce the Licensed Patents against any infringement of such Licensed Patents in the Field. 

 

In
the event of an infringement of the Licensed Patents which is both in the Field and outside the Field, Yissum shall decide which
of its licensees shall be entitled to lead the legal action after consulting with the Company and giving reasonable consideration
to the views of the Company in making such decision. In the event that Yissum decides that another licensee shall be entitled
to lead the legal action, Yissum shall require such lead licensee to keep the Company reasonably apprised of all developments
in the action and shall provide the Company with information and copies of all documents directly relevant to the proceedings,
including, all documents filed with the courts by the parties to the legal action(s), and shall seek the Company’s input
on any substantive submissions or positions taken in the litigation that may adversely affect the Company and/or the License,
it being agreed further that the grant of any rights and/or license to the infringing party that adversely affects the License
shall be subject to the prior written consent of the Company, such consent not to be unreasonably delayed, denied or conditioned.

 

Before
the Company, its Affiliate or its Sublicensee commences an action with respect to any infringement, the Company shall give careful
consideration to the views of Yissum in making its decision whether or not to initiate any legal action and, if relevant, make
these views known to its Affiliate or Sublicensee. The Company shall, or, if relevant, shall ensure that its Affiliate or Sublicensee
shall, continuously keep Yissum apprised of all developments in the action and shall continuously provide Yissum with full information
and copies of all documents relevant to the proceedings, including, all documents filed with the courts by the parties to the
legal action(s) and all correspondence with the other parties to the proceedings, and shall seek Yissum's input and approval on
any substantive submissions or positions taken in the litigation regarding the scope, validity or enforceability of the Licensed
Patents.

 

If
Yissum shall determine that the legal actions taken by the Company may adversely affect Yissum's rights hereunder, Yissum shall
be entitled to appoint its own counsel at its own expense to represent it in such litigation; provided however that if the views
of Yissum were not taken into consideration, as provided above, the Company shall reimburse Yissum for its reasonable expenses
for such legal representation.

 

    	 	22	 

     

    

 

If
the Company, its Affiliate or its Sublicensee elects to commence an action as described above and Yissum is a legally indispensable
party to such action (being the registered owner of the infringed patent rights), Yissum, at the Company's expense, may be joined
as a co-plaintiff, provided that all the following conditions shall be fulfilled:

 

	 	(a)	the Company shall
    continuously provide Yissum with full information and copies of all documents relevant to the proceedings, including, all
    documents filed with the courts by the parties to the legal action(s) and all correspondence with the other parties to the
    proceedings, as well as all drafts of written submissions relating to such legal action that are sent to the Company for review,
    and all Yissum’s comments in respect thereof will be taken into account;

 

	 	(b)	any out of pocket
    expenses incurred by the Company or Yissum in connection with such action(s), including all legal and litigation related fees
    and expenses, all out of pocket expenses for external assistance required to comply with any discovery or other motions and
    any costs or amounts awarded to the counterparties in such action(s) shall be borne by the Company;

 

	 	(c)	if Yissum shall
    determine that a conflict of interest exists between the Company and Yissum, Yissum shall be entitled, at its own expense,
    to appoint its own counsel to represent it in such litigation and the Company shall make best efforts to ensure that such
    counsel chosen by Yissum is fully informed and receives all material necessary to adequately participate in such action; and

 

	 	(d)	the Company shall
    bear all costs, expenses and awards incurred by or awarded against Yissum, with respect to any action filed against Yissum
    alleging that an action initiated by the Company pursuant to the terms of this Section 11 was anticompetitive, malicious,
    or otherwise brought for an improper purpose, whether by a counterparty to such aforementioned action or by any third party.

 

If
Yissum is not required by law to be joined as a co-plaintiff, Yissum, to the extent permitted by law, and at its own cost, may
elect to join the action as a co-plaintiff at its own initiative and shall jointly control the action with the Company, its Affiliate
or its Sublicensee. Irrespective of whether Yissum joins any such action as described above it shall provide reasonable cooperation
to the Company, its Affiliate or its Sublicensee. The Company shall reimburse Yissum for any costs it incurs as part of an action
brought pursuant to this Section where Yissum has not elected to join the action as a co-plaintiff at its own initiative.

  

    	 	23	 

     

    

 

	 	11.4.	If
    the Company, its Affiliate or its Sublicensee does not bring an action against an alleged infringer pursuant to Section 11.3,
    above, or has not commenced negotiations with said infringer for discontinuance of said infringement within one hundred and
    eighty (180) days after learning of said infringement, Yissum shall have the right, but not the obligation, to bring an action
    for such infringement at its own expense, and retain all proceeds from such action. In the event that Yissum has decided to
    bring an action for such infringement, the Company shall provide Yissum with any assistance reasonably required by Yissum
    with respect to such action. If the Company has commenced negotiations with said infringer for the discontinuance of said
    infringement within such one hundred and eighty (180) day period, the Company shall have an additional period of ninety (90)
    days from the end of the first one hundred and eighty (180) day period to conclude its negotiations before Yissum may bring
    an action for said infringement.

 

	 	11.5.	No
    settlement, consent judgment or other voluntary disposition of an infringement suit may be entered without the consent of
    Yissum, which consent shall not be unreasonably withheld, conditioned or delayed. For the avoidance of doubt and notwithstanding
    anything to the contrary herein, should Yissum bring an action as set forth in Section 11.4 above, it shall have the right
    to settle such action by licensing the Licensed Technology, or part of it, to the alleged infringer.

 

	 	11.6.	Any
    award or settlement payment resulting from an action initiated by the Company pursuant to this Section ‎11 shall be utilized,
    first to effect reimbursement of documented out-of-pocket expenses incurred by both Parties in relation to such legal action,
    and thereafter shall be paid to the Company and shall be deemed Sublicense Consideration received under this Agreement, in
    respect of which Sublicense Fees shall be due to Yissum.

 

	 	11.7.	If
    either Party commences an action and then decides to abandon it, such Party will give timely notice to the other Party. The
    other Party may continue the prosecution of the suit after both Parties agree on the sharing of expenses.

 

	 	11.8.	The
    Company shall use its best efforts at its own expense to defend any action, claim or demand made by any entity against the
    Company or Yissum in connection with rights in the Licensed Technology. Each Party shall notify the other immediately upon
    learning of any such action, claim or demand as aforesaid.

 

    	 	24	 

     

    

 

	12.	Confidentiality

 

	 	12.1.	For
    the purposes of this Agreement (i) “Yissum Confidential Information” means this Agreement and the terms
    hereof and any and all reports, details, data, formulations, solutions, designs, and inventions and other information disclosed
    to the Company or any of its Representatives by Yissum or any of Yissum's Representatives in connection with the Licensed
    Technology, Yissum, the University, the Researcher and other Representatives of Yissum and/or the University, whether in written,
    oral, electronic or any other form, except and to the extent that that any such information: (a) was known to the Company
    at the time it was disclosed, other than by previous disclosure by or on behalf of Yissum, as evidenced by the Company’s
    written records at the time of disclosure; (b) is in the public domain at the time of disclosure or becomes part of the public
    domain thereafter other than as a result of a violation by the Company or any of its Representatives of the confidentiality
    obligations herein; (c) is lawfully and in good faith made available to the Company by a third party who is not subject to
    obligations of confidentiality with respect to such information; or (d) is independently developed by the Company without
    the use of Yissum Confidential Information, as demonstrated by documentary evidence; and (ii) “Company Confidential
    Information” means this Agreement and the terms hereof and any and all reports, details, data, formulations, solutions,
    designs, and inventions and other information disclosed by or on behalf of the Company or any of the Company's Representatives
    under this Agreement, whether in written, oral, electronic or any other form, except and to the extent that any such information:
    (a) was known to Yissum or the University at the time it was disclosed, other than by previous disclosure by or on behalf
    of the Company, as evidenced by Yissum's or the University’s written records at the time of disclosure; (b) is in the
    public domain at the time of disclosure or becomes part of the public domain thereafter other than as a result of a violation
    by Yissum or its Representatives of the confidentiality obligations herein; (c) is lawfully and in good faith made available
    to Yissum or the University by a third party who is not subject to obligations of confidentiality with respect to such information;
    or (d) is independently developed by Yissum or the University without the use of the Company Confidential Information, as
    demonstrated by documentary evidence.

  

	 	12.2.	Yissum
    Confidential Information. The Company undertakes that during the term of this Agreement and for a period of five (5) years
    subsequent thereto, it shall maintain full and absolute confidentiality of and shall not use the Yissum Confidential Information
    other than for the purposes of this Agreement. Except as otherwise set forth herein, the Company undertakes not to convey
    or disclose any of the Yissum Confidential Information to any third party without the prior written permission of Yissum.
    The Company shall be liable for its officers or employees or other Representatives maintaining absolute confidentiality of
    and not using or disclosing the Yissum Confidential Information except as expressly provided herein. The Company shall treat
    such Yissum Confidential Information with the same degree of care and confidentiality that it maintains or protect its own
    confidential information, but in any event, no less than a reasonable degree of care and confidentiality.

 

	 	12.3.	Notwithstanding
    the foregoing, the Company may only disclose the Yissum Confidential Information:

 

	 	(a)	to
    those of its Representatives who have a “need to know” such information as necessary for the exercise of its rights
    and/or performance of its obligations hereunder, provided that such Representatives are legally bound by agreements which
    impose similar confidentiality and non-use obligations to those set out in this Agreement. The Company shall be responsible
    for ensuring that its Representatives abide by such undertakings of confidentiality; and

 

	 	(b)	to
    any potential third party investor, including, any government, public foundation and/or private foundation, commercial partners
    or potential Sublicensees, in connection with seeking potential funding for the Company or the entering into a commercial
    collaboration or a Sublicense, provided that such potential third party has executed a confidentiality and non-use agreement
    which imposes similar obligations to those set out in this Agreement; and

  

    	 	25	 

     

    

 

	 	(c)	to
    any competent authority for the purposes of obtaining any approvals or permissions required for the exercise of the License
    and/or the implementation of this Agreement, or in the fulfillment of a legal duty owed to such competent authority (including
    a duty to make regulatory filings or to comply with any other reporting requirements); and

 

	 	(d)	to
    the extent required to be disclosed under any law, rule, regulation, court, or order of any competent authority (including
    any Stock Exchange), provided that, to the extent permissible, the Company promptly notifies Yissum thereof in order to enable
    Yissum to seek an appropriate protective order or other reliable assurance that confidential treatment will be accorded to
    such information (with the Company’s assistance, if necessary), and such disclosure shall be made to the minimum extent
    required. 

 

	 	12.4.	The
    Company Confidential Information. Yissum undertakes that during the term of this Agreement and for a period of five (5)
    years subsequent thereto, it shall maintain in confidence, and shall not use the Company Confidential Information other than
    for the purposes of this Agreement. Yissum undertakes not to convey or disclose any of the Company Confidential Information
    to any third party without the prior written permission of the Company. Yissum shall treat such Company Confidential Information
    with the same degree of care and confidentiality it maintains and protects its own confidential information, but in any event,
    no less than a reasonable degree of care and confidentiality.

 

	 	12.5.	Notwithstanding
    the foregoing, Yissum may only disclose the Company Confidential Information:

 

	 	(a)	to
    the University and to those of the Representatives of Yissum and/or the University who have a “need to know” such
    information as necessary for the exercise of Yissum's rights and/or performance of Yissum's obligations hereunder, provided
    that such Representatives are legally bound by agreements which impose similar confidentiality and non-use obligations to
    those set out in this Agreement; and

 

	 	(b)	to
    any competent authority in connection with the filing and prosecution of patent applications relating to the Licensed Technology,
    or in the fulfillment of a legal duty owed to any competent authority; and

 

	 	(c)	to
    the extent required to be disclosed under any law, rule, regulation, court, or order of any competent authority, provided
    that Yissum promptly notifies the Company thereof in order to enable the Company to seek an appropriate protective order or
    other reliable assurance that confidential treatment will be accorded to such information (with Yissum’s assistance,
    if necessary), and such disclosure shall be made to the minimum extent required.

 

    	 	26	 

     

    

  

	 	12.6.	Each
    Party shall be responsible and liable to the other Party for any breach by its Representatives, Affiliates, Subcontractors,
    Sublicensees and investors of the undertakings of confidentiality set forth in this Section 12 as if such breach were a breach
    by the Party itself.

  

	 	12.7.	Without
    prejudice to the foregoing, the Company shall not mention the name of the University, Yissum or the Researcher, unless required
    by law, in any manner or for any purpose in connection with this Agreement, the subject of the Research or any matter relating
    to the Licensed Technology, without obtaining the prior written consent of Yissum, which will not be unreasonably withheld
    or delayed. Notwithstanding the foregoing, the mere statement of the fact that the Company is a party to, or that the Licensed
    Technology is subject to, this Agreement, shall not be deemed a prohibited disclosure hereunder. 

 

	 	12.8.	Neither
    Party shall issue any press release or other media statement regarding the execution, existence or terms of this Agreement
    or any developments of the Licensed Technology without the prior written approval of the other Party.

  

	 	12.9.	The
    provisions of this Section shall be subject to permitted publications pursuant to Section 13 below.

 

	13.	Publications

 

	 	13.1.	Yissum
    shall ensure that no publications in writing, in scientific journals or orally at scientific conventions relating to the Licensed
    Technology, the Development Plan, the Development Results or the Product, which are subject to the terms and conditions of
    this Agreement, are published by it or the Researcher, without first seeking the consent of the Company.

 

	 	13.2.	The
    Company undertakes to reply to any such request for publication by Yissum within thirty (30) days of its receipt of a request
    in connection with the publication of articles in scientific journals, and within fourteen (14) days of its receipt of a request
    in connection with article abstracts. The Company may only decline such a request upon reasonable grounds, which shall be
    fully detailed in writing, requiring the postponement of such publication because it contains patentable subject matter for
    which patent protection should be sought, or the removal of any Company Confidential Information.

 

	 	13.3.	Should
    the Company decide to object to publication as provided in sub-Section 13.2, the publication shall be postponed for a period
    of not more than ninety (90) days from the date the publication was sent to the Company, to enable the filing of an appropriate
    patent application, or until the removal of the Company Confidential Information as requested by the Company. Thereafter,
    the publication will automatically be permitted. 

 

    	 	27	 

     

    

 

	 	13.4.	The
    provisions of this Section 13 shall not prejudice any other right which Yissum has pursuant to this Agreement or at law.

 

	 	13.5.	For
    the avoidance of doubt, the prohibitions with respect to disclosure and publication set out in Sections 12 and 13 shall not
    apply to internal research and educational activities at the University for the Researcher and University employees provided
    that such persons are subject to written obligations of confidentiality substantially similar to those set forth in Section
    12.

 

	14.	Representations
    by Yissum

 

	 	14.1.	This
    Agreement has been duly authorized by all necessary corporate action of Yissum and is a valid and binding corporate obligation
    of Yissum enforceable against it in accordance with its terms. 

 

	 	14.2.	At
    the Effective Date, all right, title and interest in and to the Licensed Technology is owned by Yissum and neither Yissum,
    the Researcher nor any other person then acting on the behalf of either of them is licensing or granting any rights which
    contradict the License rights set forth in this Agreement to any person, or agreed to license to any person, the Licensed
    Technology in the Field.

 

	 	14.3.	To
    the knowledge of Yissum, at the Effective Date, Yissum has not received any written notice that any action or proceeding related
    to the Licensed Technology has been initiated or threatened against the University, Yissum and/or the Researcher, before any
    court, arbitration board or tribunal or administrative or other governmental agency, including by way of any letter of demand,
    legal suit or proceeding contesting the ownership of the Licensed Patents or the validity of the Licensed Patents, or claiming
    that the practice of the Licensed Patents or the Licensed Technology would infringe the rights of such third party.

 

    	 	28	 

     

    

 

	15.	Liability
    and Indemnity

 

	 	15.1.	TO
    THE EXTENT PERMITTED BY THE APPLICABLE LAW, EXCEPT AS EXPLICITLY SET OUT HEREIN, YISSUM MAKES NO REPRESENTATIONS OR WARRANTIES
    OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE LICENSED TECHNOLOGY. IN PARTICULAR, YISSUM MAKES NO EXPRESS OR IMPLIED
    WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NOR DOES YISSUM REPRESENT, WARRANT OR GUARANTEE THAT THE
    USE OF THE LICENSED TECHNOLOGY WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS OF ANY THIRD PARTY. IN ADDITION,
    NOTHING IN THIS AGREEMENT MAY BE DEEMED A REPRESENTATION OR WARRANTY BY YISSUM AS TO THE VALIDITY OF ANY OF THE LICENSED PATENTS
    OR THEIR REGISTRABILITY OR OF THE ACCURACY, SAFETY, EFFICACY, OR USEFULNESS, FOR ANY PURPOSE, OF THE LICENSED TECHNOLOGY.
    YISSUM HAS NO OBLIGATION, EXPRESS OR IMPLIED, TO SUPERVISE, MONITOR, REVIEW OR OTHERWISE ASSUME RESPONSIBILITY FOR THE PRODUCTION,
    MANUFACTURE, TESTING, MARKETING OR SALE OF ANY PRODUCT. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NEITHER YISSUM NOR THE
    RESEARCHER, NOR THE UNIVERSITY, NOR THE REPRESENTATIVES OF YISSUM AND/OR OF THE UNIVERSITY SHALL HAVE ANY LIABILITY WHATSOEVER
    TO THE COMPANY OR TO ANY THIRD PARTY FOR OR ON ACCOUNT OF ANY INJURY, LOSS, OR DAMAGE, OF ANY KIND OR NATURE WHETHER DIRECT
    OR INDIRECT, SUSTAINED BY THE COMPANY OR BY ANY THIRD PARTY, FOR ANY DAMAGE ASSESSED OR ASSERTED AGAINST THE COMPANY, OR FOR
    ANY OTHER LIABILITY INCURRED BY OR IMPOSED UPON THE COMPANY OR ANY OTHER PERSON OR ENTITY, DIRECTLY OR INDIRECTLY ARISING
    OUT OF OR IN CONNECTION WITH OR RESULTING FROM THIS AGREEMENT AND/OR THE EXERCISE OF THE LICENSE, INCLUDING, (i) THE PRODUCTION,
    MANUFACTURE, USE, PRACTICE, LEASE, OR SALE OF ANY PRODUCT; (ii) THE USE OF THE LICENSED TECHNOLOGY; OR (iii) ANY ADVERTISING
    OR OTHER PROMOTIONAL ACTIVITIES WITH RESPECT TO ANY OF THE FOREGOING.

  

	 	15.2.	EXCPET
    WITH RESPECT TO CLAIMS BY ANY THIRD PARTY FOR WHICH COMPANY IS OBLIGATED TO INDEMNIFY YISSUM UNDER SECTION 15.4 OR IN THE
    EVENT OF USE OF THE LICENSED TECHNOLOGY IN BREACH OF THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY, OR THE REPRESENTATIVES
    OF SUCH PARTY BE LIABLE TO THE OTHER PARTY OR ANY OF ITS AFFILIATES OR TO ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL,
    INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, LOST PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY THE
    OTHER PARTY OR ANY OF ITS AFFILIATES OR ANY THIRD PARTY, WHETHER BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE
    OR TORT, OR OTHERWISE, ARISING OUT OF THIS AGREEMENT.

 

	 	15.3.	The
    Company shall be liable for any loss, injury or damage whatsoever caused directly or indirectly to or suffered by its employees
    or any Representatives of Yissum or the University (including the Researcher and his/her team), or to any third party by reason
    of the Company's acts or omissions pursuant to this Agreement or by reason of any use made by the Company, its Representatives,
    Affiliates, Subcontractors, and the Sublicensees and their respective business associates and customers of the Licensed Technology,
    the Development Results or any Product or exercise of the License, except to the extent such loss, injury or damage results
    directly from an uncured material breach of Yissum's obligations or representations hereunder.

 

    	 	29	 

     

    

  

	 	15.4.	Except
    with respect to loss, injury or damage resulting directly from an uncured material breach of Yissum's obligations or representations
    hereunder, the Company undertakes to compensate, indemnify, defend and hold harmless Yissum, the University, and any of their
    respective Representatives (including the Researcher and his/her team) (herein referred to jointly and severally as “Indemnitees”)
    from and against any claim, investigation or liability including, product liability, damage, loss, costs and expenses, including
    legal costs, attorneys’ fees and litigation expenses, incurred by or imposed upon the Indemnitees by reason of any acts
    or omissions of the Company, its Representatives, Affiliates, Subcontractors, and the Sublicensees, or which derive from the
    development, manufacture, marketing, sale, use or other exploitation, or sublicensing (as applicable) of any Product, or Licensed
    Technology, or the exercise of the License

 

The
Company shall ensure that its Sublicensees shall provide undertakings of indemnification which shall also be given also in favor
of, and shall be actionable by Yissum, the University and any director, officer or employee of Yissum or of the University, and
by the Researcher.

 

	 	15.5.	The
    Company shall procure and maintain, at its sole cost and expense, policies of comprehensive general liability insurance in
    amounts not less than (i) [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
    AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] per incident and [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT
    TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] annual aggregate, commencing
    as of the date and for such period that any Product is being tested in clinical trials by the Company, its Affiliate or Sublicensee
    prior to commercial sale; and (ii) [THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
    TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] per incident and [THE CONFIDENTIAL PORTION HAS BEEN SO
    OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] annual aggregate
    during the period that any Product is being commercially distributed or sold Company, its Affiliate or Sublicensee. Such policy
    shall name the Indemnitees as additional insureds. The policy or policies so issued shall include a “cross-liability”
    provision pursuant to which the insurance is deemed to be separate insurance for each named insured (without right of subrogation
    as against any of the insured under the policy, or any of their representatives, employees, officers, directors or anyone
    in their name). Such comprehensive general liability insurance shall provide (i) product liability coverage and (ii) broad
    form contractual liability coverage for the Company's indemnification obligations under this Section 15. If the Company elects
    to self-insure all or part of the limits described above (including deductibles or retentions which are in excess of a $250,000
    annual aggregate), such self-insurance program shall include assets or reserves which have been actuarially determined for
    the liabilities associated with this Agreement and must be reasonably acceptable to Yissum.

  

    	 	30	 

     

    

 

The
minimum amounts of insurance coverage required above shall not be construed to create a limit of the Company's liability with
respect to its indemnification obligations under this Section 15.

 

	 	15.6.	The
    Company shall provide Yissum with written evidence of such insurance upon request. The Company shall provide Yissum with written
    notice at least fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance. If the Company
    does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, Yissum shall have
    the right to terminate this Agreement effective at the end of such fifteen (15) day period without notice or any additional
    waiting periods.

 

	 	15.7.	The
    Company shall maintain, at its own expense, liability insurance as set forth in Section 15 above, beyond the expiration or
    termination of this Agreement as long as a Product relating to or developed pursuant to this Agreement is being commercially
    distributed or sold by the Company, an Affiliate or a Sublicensee, and thereafter as required by applicable laws.

 

	16.	Termination
    of the Agreement

 

	 	16.1.	Unless
    otherwise agreed by the Parties in writing, this Agreement shall terminate upon the occurrence of the later of the following:
    (i) the date of the expiry of the Term pursuant to Section 4 above; or (ii) if the Company elects to obtain an exclusive license
    to the Know-How pursuant to Section 4 above - the date of expiry of the period of such exclusive license. 

 

	 	16.2.	Without
    prejudice to the Parties’ rights pursuant to this Agreement or at law, either Party may terminate this Agreement by
    written notice to the other in any of the following cases:

 

	 	16.2.1.	immediately
    upon such written notice, if: (i) the other Party passes a resolution for voluntary winding up or a winding up application
    is made against it and not set aside or suspended within ninety (90) days; or (ii) a receiver or liquidator is appointed for
    the other Party and has not been removed within ninety (90) days; or (iii) the other Party enters into winding up or insolvency
    or bankruptcy proceedings which have not been set aside or suspended within ninety (90) days. 

 

Each
of the Parties undertakes to notify the other within seven (7) days if any of the abovementioned events occur; or

 

	 	16.2.2.	upon
    breach of this Agreement, where such breach has not been remedied within thirty (30) days from the breaching Party's receipt
    of written notice from the non-breaching Party requiring such remedy.

  

    	 	31	 

     

    

 

	 	16.2.3.	The
    Company shall be entitled to terminate this Agreement for convenience upon ninety (90) days prior written notice provided
    that immediately on or before the date of such termination the Company ceases or terminates on a world-wide basis: (a) all
    exploitation and use of the technology covered by or claimed in the Licensed Technology, whether by the Company, an Affiliate,
    a Sublicensee, or any contractor, distributor, reseller or agent and (b) all marketing and sales of all Products.

 

	 	16.2.4.	Yissum
    shall be entitled to terminate this Agreement for convenience upon ninety (90) days prior written notice to the Company in
    the event that the Company or any of its Affiliates is engaged in development, research, evaluation or other commercial activities
    involving other technologies for nasal delivery of cannabinoids (the “Additional Activity”) during a consecutive
    period of more than 180 days.

 

	 	16.2.5.	Yissum,
    at its sole discretion, shall be entitled to terminate this Agreement, without cause, with immediate effect, upon written
    notice to the Company in the event that a Development Plan (including the Essential Development Milestones) prepared by the
    Company and meeting Yissum’s approval, has not been incorporated into this Agreement within 45 (forty-five) days of
    the Effective Date as set out in Section 5.1 above.

 

	 	16.3.	In
    addition to the above, and without prejudice to Yissum’s rights pursuant to this Agreement or at law, Yissum shall be
    entitled to terminate this Agreement immediately upon written notice to the Company in the following circumstances:

  

	 	16.3.1.	failure
    or a delay of more than one hundred and twenty (120) days, or such extended period as provided in Section 5.4 above, in meeting
    the Essential Development Milestones as provided in Section 5 above;

 

	 	16.3.2.	if
    an attachment is made over the majority of the Company's assets or if execution proceedings are taken against the Company
    and the same are not set aside within sixty (60) days of the date the attachment is made or the execution proceedings are
    taken or the Company seeks protection under any laws or regulations, the effect of which is to suspend or impair the rights
    of any or all of its creditors, or to impose a moratorium on such creditors and such act is not cancelled within sixty (60)
    days of the performance thereof; or 

 

	 	16.3.3.	if
    the Company, its Affiliate or a Sublicensee initiates, supports or makes a Challenge Proceeding as detailed in Section 11.2
    above.

  

    	 	32	 

     

    

 

	 	16.4.	Upon
    termination of this Agreement for any reason (including termination for convenience and termination without cause), other
    than the expiration of its term, the License shall terminate, the Licensed Technology and all rights included therein shall
    revert to Yissum, and Yissum shall be free to enter into agreements with any other third parties for the granting of a license
    or to deal in any other manner with such right as it shall see fit at its sole discretion.

 

The
Company shall return or transfer to Yissum, within fourteen (14) days of termination of the License, all material, in soft or
hard copy, provided by Yissum or Yissum's Representatives and relating to the Licensed Technology or Products connected with the
License, and it may not make any further use thereof. In case of termination as set out herein the Company will not be entitled
to any reimbursement of any amount paid to Yissum under this Agreement. Yissum shall be entitled to conduct an audit in order
to ascertain compliance with this provision and the Company agrees to allow access to Yissum or its representatives for this purpose.

 

	 	16.5.	The
    Company will prepare and present all regulatory filings necessary or appropriate in any country and will obtain and maintain
    any regulatory approval required to market Products in any such country, at all its own expense. Company will solely own all
    right, title and interest in and to all such regulatory approvals and filings; provided, however, that (1) Company will provide
    copies thereof to Yissum on an on-going basis; and (2) without derogating from Company’s assignment undertaking in this
    Section 16.5 below, upon termination of the License (in whole or in part) for any reason other than due to an uncured breach
    by Yissum (as set forth in Section16.2.2 above), Company agrees that Yissum shall have the right, on its own or via third
    parties, to reference, cross-reference, review, have access to, incorporate and use all documents and other materials filed
    by or on behalf of Company and its Affiliates with any regulatory authority in furtherance of applications for regulatory
    approval in the relevant country with respect to Products. 

 

    	 	33	 

     

    

 

Upon
the termination of the Agreement for any reason (including termination for convenience and termination without cause), other than
the expiration of its term or due to an uncured breach by Yissum (as set forth in Section 15.2.2 above), the Company shall transfer
and assign to Yissum all of the Development Results and any information and documents, in whatever form, relating thereto, including
any data, results, regulatory information (including applications, registrations, licenses, authorizations, approvals and all
clinical studies, tests, and manufacturing batch records relating to a Product, and all data contained in any of the foregoing)
and files that relate to the Licensed Technology or the Product(s), with the exclusion of Development Results which are directly
applicable to other products of the Company (the “Excluded Development Results”) or intellectual property of
the Company existing prior to the Effective Date or developed independently of this Agreement (collectively, the "Assigned
Development Results"); provided however that Yissum shall have a non-exclusive, worldwide, royalty free, limited in purpose
license to use the Excluded Development Results for the sole purpose of demonstrating the feasibility of the Licensed Technology
in the re-commercialization of the Licensed Technology to other third parties, and subject to such third parties being bound to
confidentiality provisions regarding such Excluded Development Results. The Company shall fully cooperate with Yissum to effect
such transfer and assignment and shall execute any document and perform any acts required to do so.

 

Without
derogating from the force and effect of the foregoing assignment undertaking, the Parties acknowledge and agree that if under
applicable law the aforesaid assignment undertaking will not be fully enforceable, then the part (if any) of such undertaking
which is enforceable shall remain in full force and effect, and the part (or whole) which is not enforceable shall be automatically
replaced with an irrevocable grant by the Company to Yissum, binding upon all of the Company’s acquirers, successors and
assignees, of an unrestricted, perpetual, irrevocable, worldwide, royalty-free, license to use, exploit, transfer and sublicense
(on a multi-tier basis) the Assigned Development Results, for any and all purposes and uses. To the extent permitted by applicable
law, such license will be exclusive, provided, however, that the foregoing assignment shall be subject to any conditions
preventing or governing such transfer and assignment set out in the applicable laws and regulations governing grants received
by the Company and used in generation of the Assigned Development Results (“Grant Transfer Conditions”), in
which case the Company will not be required to transfer and assign the Assigned Development Results as contemplated above unless
and until Yissum either (i) agrees in writing to assume all obligations required by the Grant Transfer Conditions, or (ii)
reach another arrangement with the grantors of the grants which absolves the Company of any liability to such grantors with respect
to the transfer or assignment of the Assigned Development Results.

 

Notwithstanding
anything to the contrary in Section 11 (Confidentiality) or elsewhere in this Agreement, Yissum (on its own or via third parties)
shall be entitled to freely exploit the Assigned Development Results without any obligation of confidentiality to the Company.

  

    	 	34	 

     

    

 

	 	16.6.	In
    the event that Yissum commercializes any of the Assigned Development Results assigned and transferred in accordance with Section
    16.5, through a license or otherwise, Yissum shall pay the Company a royalty equal to [THE CONFIDENTIAL PORTION HAS BEEN
    SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION] of Net
    Licensor Receipts as defined below, until such time as the Company shall have received, in aggregate, two (2) times the full
    amount of the documented capital investment actually expended out-of-pocket by the Company in order to generate the Assigned
    Development Results as certified by external independent auditors agreed upon by the Parties, less any amounts received or
    receivable by the Company from third parties in connection with the Licensed Technology or the Assigned Development Results
    prior to the transfer of the Assigned Development Results to Yissum the “Development Reimbursement Amounts”)
    . The Development Reimbursement Amounts shall be paid by Yissum on a quarterly basis, within thirty (30) days of the end of
    the calendar quarter in which the Net Licensor Receipts were received. The Company shall have the rights granted to Yissum
    pursuant to Section 8, mutatis mutandis, in respect of the Net Licensor Receipts. For purposes of this Section 16.6,
    the following terms shall have the following meanings:

  

“Net
Licensor Receipts” shall mean Licensor Receipts less Licensor Expenses;

 

“Licensor
Receipts” shall mean all amounts in cash and other consideration actually received by Yissum from the grant of a license
in the field of nasal delivery of cannabinoids under the Assigned Development Results; except for (a) any amounts received for
sponsored research and fees for the provision of services; and (b) any academic research grants; and

 

“Licensor
Expenses” shall mean (a) payments actually incurred by Yissum in accordance with detailed budgets and research workplans
included in sponsored research or research and license agreements relating to the Assigned Development Results; and (b) any out-of-pocket
expenses paid by Yissum in connection with enabling the receipt of such Licensor Receipts.

 

	 	16.7.	Notwithstanding
    the foregoing, neither the termination of this Agreement for any reason nor the expiration of the License shall release the
    Company from its obligation to carry out any financial or other obligation which it was liable to perform prior to the Agreement's
    termination or the License's expiration.

 

In
addition, Sections 8, 9, 12, 13, 14, 15, 16, 17 and 19 shall survive the termination of this Agreement to the extent required
to effectuate the intent of the Parties as reflected in this Agreement.

 

	17.	Law

 

	 	17.1.	The
    provisions of this Agreement and everything concerning the relationship between the Parties in accordance with this Agreement
    shall be governed exclusively by Israeli law without application of any conflict of law principles that direct that the laws
    of another jurisdiction apply and jurisdiction shall be granted to the competent court in Tel-Aviv exclusively except that
    Yissum may bring suit against the Company in any other jurisdiction outside the State of Israel in which the Company has assets
    or a place of business.

 

	 	17.2.	Each
    Party agrees that any breach or threatened breach of the terms and conditions of this Agreement governing confidentiality
    or the exploitation and use of the Licensed Technology may cause irreparable harm, that may be difficult to ascertain and
    that monetary damages may not afford an adequate remedy. Accordingly, in addition to all other rights and remedies that may
    be available to the non-breaching Party under this Agreement or by law, such Party shall be entitled to seek, in the courts
    and under the law mutually agreed to in Section 17.1 above, injunctive relief without proof of damages.

  

    	 	35	 

     

    

 

	18.	Miscellaneous

 

	 	18.1.	Relationship
    of the Parties. It is hereby agreed and declared between the Parties that they shall act in all respects relating to this
    Agreement as independent contractors and there neither is nor shall there be any employer-employee or principal-agent relationship
    or partnership relationship between the Company (or any of its employees) and Yissum. Each Party will be responsible for payment
    of all salaries and taxes and social welfare benefits and any other payments of any kind in respect of its employees and officers,
    regardless of the location of the performance of their duties, or the source of the directions for the performance thereof.

 

	 	18.2.	Assignment.
    No Party may transfer or assign or endorse its rights, duties or obligations pursuant to this Agreement to another, without
    the prior written consent of the other Parties, which consent shall not be unreasonably denied, conditioned or delayed, except
    that the Company shall be entitled to assign its rights and obligations under this License Agreement to a wholly owned subsidiary
    of the Company (the “Subsidiary”) without requiring to obtain the prior written consent of Yissum, provided, however,
    that in the event of such assignment (i) the Subsidiary shall undertake in writing to be bound by all the terms and conditions
    of this Agreement, and (ii) any such assignment shall not derogate from the Company’s obligations which have accrued
    prior to the date of such assignment. In addition, the Company may assign this Agreement and its rights hereunder without
    the consent of Yissum to an acquirer acquiring all or substantially all of its assets or shares, provided that such acquirer
    shall agree in writing to be bound to Yissum by all of the terms of this Agreement.

 

	 	18.3.	No
    waiver. No waiver by any Party, whether express or implied, of its rights under any provision of this Agreement shall
    constitute a waiver of such Party’s rights under such provisions at any other time or a waiver of such Party’s
    rights under any other provision of this Agreement. The failure or delay of a Party to claim the performance of an obligation
    of another Party shall not be deemed a waiver of the performance of such obligation or of any future obligations of a similar
    nature.

 

	 	18.4.	Representation
    by Legal Counsel. Each Party represents that it has been represented by legal counsel in connection with this Agreement
    and acknowledges that it has participated in drafting this Agreement. In interpreting and applying the terms and provisions
    of this Agreement, the Parties agree that no presumption shall exist or be implied against the Party which drafted such terms
    and provisions. 

 

	 	18.5.	Legal
    Costs. Each Party shall bear its own legal expenses involved in the negotiation and drafting of this Agreement.

 

    	 	36	 

     

    

 

	 	18.6.	Disclosure
    of Agreements with Researcher. The Company shall disclose to Yissum any existing agreement or arrangement of any kind
    with the Researcher and or any representative of the Researcher, and shall not enter into any such agreement or arrangement
    without the prior written consent of Yissum. 

 

	 	18.7.	Taxes.
    Monetary amounts mentioned in this agreement do not include value added tax (“VAT”), or any duties or other
    taxes. Each Party shall itself be responsible to pay the taxes for which it is liable under the law.

 

	 	18.8.	Severability.
    The provisions of this Agreement are severable and, in the event that any one or more of the provisions or part of a provision
    contained in this Agreement shall, for any reason, be held by any court of competent jurisdiction to be invalid, illegal or
    unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part
    of a provision of this Agreement; but such provision shall be modified as set out below and the balance of this Agreement
    shall be interpreted as if such provision were so modified. The Parties shall negotiate in good faith in order to agree on
    the terms of an alternative provision which complies with applicable law and achieves, to the greatest extent possible, the
    same effect as would have been achieved by the invalid, illegal or unenforceable provision. In the event that the Parties
    fail to agree within thirty (30) days, the head of the Israeli Bar Association (on his/her own or via a representative that
    he/she appoints) (“Deciding Expert”) will determine the text of the alternative provision, and each Party
    shall bear its own costs and the Parties shall equally bear the fees and expenses of the Deciding Expert. Each Party agrees
    that the determination of the Deciding Expert will be non-appealable, final and binding.

 

	 	18.9.	Force
    Majeure. Neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or
    breached the Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for
    so long as, such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party
    and without fault of such Party, including fires, earthquakes, floods, embargoes, wars, acts of war (whether war is declared
    or not), insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances (except of such Party's personnel),
    acts of God or acts, omissions or delays in acting by any governmental authority provided that the nonperforming Party uses
    commercially reasonable efforts to avoid or remove such causes of nonperformance and continues performance under this Agreement
    with reasonable dispatch whenever such causes are removed. The Party affected by such circumstances shall promptly notify
    the other Party in writing when such circumstances cause a delay or failure in performance and when they cease to do so.

 

	 	18.10.	Counterparts.
    This Agreement may be executed in any number of counterparts (including counterparts transmitted by facsimile and by electronic
    mail), each of which shall be deemed an original, but all of which taken together shall be deemed to constitute one and the
    same instrument.

 

    	 	37	 

     

    

 

	 	18.11.	Binding
    Effect. This Agreement shall be binding upon the Parties once executed by both Parties and shall enter into force and
    become effective as of the later of the signature dates.

 

	 	18.12.	Entire
    Agreement. This Agreement constitutes the full and complete agreement between the Parties and supersedes any and all agreements
    or understandings, whether written or oral, concerning the subject matter of this Agreement, and may only be amended by a
    document signed by both Parties.

  

	19.	Notices

 

All
notices and communications pursuant to this Agreement shall be made in writing and sent by facsimile, electronic mail or by registered
mail or served personally at the following addresses:

 

To
Yissum at:

 

Yissum
Research Development Company

of
the Hebrew University of Jerusalem Ltd.

P.O.
Box 39135,

Jerusalem
91390

Israel

Facsimile:
972-2-6586689

Email:
bob.trachtenberg@yissum.co.il

 

To
the Company at:

 

Therapix
Biosciences Ltd.

5
Azrieli Center (Square Tower) 27 Fl.

Tel-Aviv
6702501, Israel

Facsimile:
972-3-616-7056

Email:
elran@therapixbio.com

 

or
such other address furnished in writing by one Party to the other. Any notice served personally shall be deemed to have been received
on the day of service, any notice sent by registered mail as aforesaid shall be deemed to have been received seven (7) days after
being posted by prepaid registered mail. Any notice sent by facsimile or electronic mail shall be deemed to have been received
by the next business day after receipt of confirmation of transmission (provided that any notice terminating this Agreement which
is sent by electronic mail shall be followed by a notice sent in any other manner provided herein).

 

    	 	38	 

     

    

 

IN
WITNESS WHEREOF THE PARTIES HAVE SET THEIR HANDS

  

YISSUM
THERAPIX BIOSCIENCES LTD.

 

	By:
    	/s/
    Ariela Markel	 	By:
    	/s/
    Elran Haber
	Name:
    	Ariela
    Markel, M.Sc., MBA	 	Name:
    	Elran
    Haber
	Title:
    	VP
    Licensing, Biotechnology	 	Title:
    	CEO
	 	 	 	 	 
	Date:
    	30.
    3. 17	 	Date: 5 APR - 17
	 	 	 	 	 
	 	/s/
    Itzik Goldwaser	 	 	/s/
    Ascher Shmulewitz
	 	Itzik
    Goldwaser PhD	 	 	Ascher
    Shmulewitz
	 	VP,
    Head of Research Collaborations 	 	 	Chairman
	 	 	 	 	 
	 		 	5 APR. 17

 

I
the undersigned, Prof. Elka Touitou, have reviewed, am familiar with and agree to all of the above terms and conditions. I hereby
undertake to cooperate fully with Yissum in order to ensure its ability to fulfill its obligations hereunder, as set forth herein.

  

	/s/
    Elka Touitou	 	3.
    04. 2017
	Prof.
    Elka Touitou	 	Date
    signed

  

    	 	39	 

     

    

 

Appendix
A

 

[THE
CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE
COMMISSION]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	40	 

     

    

 

Appendix
B

  

[THE
CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE
COMMISSION]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	41	 

     

    

 

Appendix
C

 

THE
DEVELOPMENT PLAN (including the Essential Development Milestones)

 

[To
be prepared by the Company, subject to Yissum approval; for incorporation into this Agreement within 45 days of the Effective
Date]

  

	YISSUM	 	 	THE
    COMPANY
	 	 	 	 
	By:
    	/s/
    Ariela Markel	 	By:
    	/s/
    Elran Haber
	Name:
    	Ariela
    Markel, M.Sc., MBA	 	Name:
    	Elran
    Haber
	Title:
    	VP
    Licensing, Biotechnology	 	Title:
    	CEO
	 	 	 	 	 
	Date:	30.
    3. 17 	 	Date:
5 – APR – 17
	 	 	 	 	 
	 	/s/
    Itzik Goldwaser 	 	 	 /s/
    Ascher Shmulewitz
	 	Itzik
    Goldwaser PhD	 	 	Ascher
    Shmulewitz
	 	VP,
    Head of Research Collaborations 	 	 	Chairman

 

    	 	42	 

     

    

 

Appendix
D

 

JOINT
PATENT ASSIGNMENT LETTER

 

ASSIGNMENT
AGREEMENT

 

Made
as a Deed

 

This
ASSIGNMENT AGREEMENT (the “Agreement”) is made this 30th day of March, 2017, by and between Yissum Research
Development Company of the Hebrew University of Jerusalem Ltd., Hi-Tech Park, Edmond J. Safra Campus, Givat Ram, Jerusalem, Israel
on the one hand (“Yissum”) and Therapix Biosciences Ltd. of 5 Azrieli Center (Square Tower) 27 Fl., Tel-Aviv
6702501, Israel, on the other hand (the “Company”). Yissum and the Company shall be referred each as a “Party”,
and together as the "Parties".

 

	WHEREAS,	on
    March 30, 2017, the Parties signed a Research and License Agreement (the “R&L Agreement”), according
    to which the Company received, among other things, a License to the Licensed Patents; and

 

	WHEREAS,	pursuant
    to the R&L Agreement, certain inventions have been or shall/may be registered jointly in the name of Yissum and the Company
    and shall be regarded as Joint Patents; and

 

	WHEREAS,	the
    Parties have agreed that, upon the occurrence of certain Events (as defined below), the Company shall assign and transfer
    to Yissum its title and ownership in and to the Joint Patents and thereafter Yissum shall become the sole and exclusive owner
    of such Joint Patents; all in accordance with the terms and conditions of this Agreement;

 

NOW
THEREFORE THE PARTIES DO HEREBY AGREE AS FOLLOWS: 

 

	1.	Preamble

 

	 	1.1	The recitals hereto
    constitute an integral part hereof.

 

	 	1.2	The headings of
    the sections in this Agreement are for the sake of convenience only and shall not serve in the interpretation of the Agreement.

 

	 	1.3	All
    capitalized terms not defined herein shall have the meaning ascribed to such terms in the R&L Agreement.

 

	 	1.4	In this Agreement
    the following expressions shall have the meanings appearing alongside them, unless the context otherwise requires:

 

“Effective
Date” shall mean the date of occurrence of the earliest of the Events.

 

“Event(s)”
shall mean a situation in which: (i) the Company passes a resolution for voluntary winding up or a winding up application
is made against it and not set aside or suspended within ninety (90)days; or (ii) a receiver or liquidator is appointed for the
Company and has not been removed within ninety (90) days; or (iii) the Company enters into winding up or insolvency or bankruptcy
proceedings which have not been set aside or suspended within ninety (90)days; or (iv) the Company ceases operations for a consecutive
period of 180 days ; or ) a Joint Patent has become a Relinquished Patent.

 

“Intellectual
Property Rights” shall mean any and all rights relating to intellectual property, including without limitation, all
inventions, patents and patent applications, including all re-issuances, continuations, continuations-in-part, divisions, revisions,
extensions and re-examinations thereof.

 

“Relinquished
Patent” shall mean a Joint Patent for which the Company fails to pay the expenses of the filing, prosecution, maintenance
or any activity required by the patent office, relating thereto, in accordance with the Company's obligations under the R&L
Agreement.

 

    	 	43	 

     

    

 

	2.	Assignment of
    Joint Patents.

 

	 	2.1	Upon the Effective
    Date, the Company shall assign, convey and transfer to Yissum, its successors and assigns, the entire right, title and interest
    and benefits in and to any Joint Patent(s), including all Intellectual Property Rights therein. Notwithstanding the foregoing,
    in case the Event relates solely to a Relinquished Patent, the aforementioned assignment shall relate only to such Relinquished
    Patent. Notwithstanding the foregoing, any assignment hereunder shall be subject, to any conditions governing such transfer
    and assignment set out in the applicable laws and regulations governing grants received by the Company and used in generation
    of the Joint Patent(s).

 

	 	2.2	Subsequent to an
    assignment pursuant to this Agreement, the Company or its successors, legal representatives or assigns, at Yissum's sole cost
    and expense, shall notify Yissum, its successors, legal representatives and assigns, of any facts known to it regarding said
    Joint Patents, testify in any legal proceeding, sign all lawful papers, execute all divisional, continuing, reissue and foreign
    applications, make all rightful oaths, and generally do everything possible to assist Yissum, its successors, legal representatives
    and assigns, to obtain and enforce proper protection, full ownership and rights of use for said Joint Patents in all countries.

 

	 	2.3	In the event the
    Company, its successors, legal representatives or assigns fail to execute and deliver such documents and instruments promptly
    upon Yissum’s request, Yissum is hereby authorized and appointed attorney-in-fact of and for the Company to make, execute
    and deliver any and all such documents and instruments.

 

	3.	Governing Law
    and Jurisdiction. The provisions of this Agreement and everything concerning the relationship between the Parties in accordance
    with this Agreement shall be governed by the laws of the State of Israel and exclusive jurisdiction shall be granted to the
    appropriate courts in Tel Aviv, Israel.
	 	 

	4.	Miscellaneous.
    This Agreement supersedes any prior understanding, agreement, practice or contract, oral or written, between the Parties with
    respect to the matters covered by this Agreement. This Agreement may not be modified except by written instrument signed by
    all Parties hereto. 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. This Agreement shall be binding upon the Parties’ heirs, executors, administrators,
    successors, and assigns. The invalidity of any provision of this Agreement shall not result in the invalidity of the entire
    Agreement.

 

AS
WITNESS THE HANDS OF THE PARTIES:

 

	Therapix
                                         Biosciences Ltd.

        5
        Azrieli Center (Square Tower) 27 Fl.

        Tel-Aviv
        6702501, Israel

         

         

        By:
        _________________________

        Name:
        _______________________

        Title:
        ________________________

        Date:
        ________________________
	Yissum
                                         Research Development Company 

        of
        the Hebrew University of Jerusalem Ltd.

        Hi-Tech
        Park, Edmond J. Safra Campus,

        Givat
        Ram, P.O.B 39135, Jerusalem 91390, Israel

         

        By:
        ___________________________

        Name:_________________________

        Title:__________________________

        Date:
        _________________________

 

 

44

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