Document:

Settlement and License Agreement dated November 10, 2003

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  
 Exhibit 10.34 
  
 SETTLEMENT AND LICENSE AGREEMENT 
  
 Photon Dynamics Incorporated, a California corporation with principal offices in San Jose, California; Shimadzu Corporation, a Japanese corporation with
principal offices in Kyoto, Japan; Panelvision Technology, Inc. a California Corporation with principal offices in Los Gatos, California; and Guillermo Toro-Lira, an individual resident of California, (collectively, “the parties”) hereby
enter into this Settlement and License Agreement as of the Effective Date provided herein. 
  
 WHEREAS Photon Dynamics Incorporated (hereafter, “PDI”) is the owner of certain U.S. and Japanese Patents, including U.S. Patent No. 5,081,687; U.S. Reissue Patent No. 37,847; and Japanese Patent No.
3292990; 
  
 WHEREAS PDI filed a lawsuit against Panelvision
Technology Inc. (hereafter, “Panelvision”) and Guillermo Toro-Lira (hereafter, “Toro-Lira”) in the United States District Court for the Northern District of California, Civil Case Number C02-02563 PJH, and thereafter added
Shimadzu Corporation (hereafter, “Shimadzu”) as an additional defendant therein (“the U.S. Lawsuit”), alleging that the manufacture and sale of certain e-beam-based panel testing products infringe U.S. Patent 5,081,687 and/or
U.S. 
  
 [ * ] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 Reissue Patent No. 37,847; and Shimadzu, Panelvision and Toro-Lira filed counterclaims in the U.S. Lawsuit alleging that
said U.S. Patents are either not infringed, invalid and/or unenforceable; and that PDI had violated antitrust and unfair competition laws; 
  
 WHEREAS Shimadzu filed a separate lawsuit against PDI in the Tokyo District Court, (“the Japan Lawsuit”), alleging that Japanese Patent No.
3292990 is invalid and not infringed; 
  
 WHEREAS the parties
desire to compromise and settle the U.S. Lawsuit and the Japan Lawsuit upon the terms and in the manner herein provided; 
  
 WHEREAS the parties have each agreed to and signed a term sheet entitled “OFFER OF COMPROMISE” having an effective date of October 10, 2003, and
herein desire to effectuate the intent of the agreements and undertakings contained in said term sheet; 
  
 AND WHEREAS PDI and Shimadzu wish to establish a procedure for attempting to expeditiously resolve future disputes that may arise between them regarding
the subject matter of this Agreement; 
  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 NOW, THEREFORE, in consideration of the promises and covenants set forth hereinafter, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	A.	DEFINITIONS 

  

	 	A.	“Covered Product” shall mean any e-beam-based panel testing equipment, including e-beam-based active-plate testing equipment, and including dedicated attachments relating
to the testing capabilities of the equipment. 

  

	 	B.	“Licensed Patents” shall mean and include the following: U.S. Patent No. 5,081,687; U.S. Reissue Patent No. 37,847; Japanese Patent No. 3292990, and any corresponding
patent including: any reissue, reexamination, continuation, division, or extension thereof, or any patent claiming priority from any of the foregoing patents in any country. 

  

	 	C.	The “Effective Date” shall be November 10, 2003 . 

  

	B.	DISMISSAL 

  
 Dismissal of U.S. Lawsuit and Japan Lawsuit. On October 21, 2003, the Court in the U.S. Lawsuit entered an Order of Dismissal dismissing that
action without prejudice and providing that the parties could substitute a dismissal with prejudice within ninety 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 (90) days thereof. Within five (5) days of receipt of payment by PDI per Section H hereof, the parties agree to file the
attached Stipulation and Order for Dismissal With Prejudice, and in addition, Shimadzu agrees to withdraw the Japan Lawsuit. In order to effectively dismiss the Japan Lawsuit with prejudice, Shimadzu herein agrees, as part of the consideration for
this agreement, that it will not at a later date reinstitute or effectively re-bring the Japan Lawsuit. 
  

	C.	NO ADMISSION OF LIABILITY 

  
 No party admits any liability or wrongdoing. By this Agreement and the dismissal of the legal proceedings as set forth herein, except as provided in
Section D, no party concedes either the merits of the other party’s claims or the lack of merits as to its own claims, and each denies the assertions of the other in the U.S. Lawsuit, and the Japan Lawsuit. 
  

	D.	[*] 

  
 Effective upon the dismissal of the U.S. Lawsuit with prejudice as described in Section B, [*]. Effective upon the dismissal of the U.S. Lawsuit with prejudice as described in Section B, [*]. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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	E.	LICENSE GRANT 

  
 Subject to the satisfaction of Section H, PDI grants to Shimadzu a paid-up, world-wide, irrevocable, non-exclusive license under the Licensed Patents to
make, have made, use, sell, offer to sell, import (into any country in the world), export (from any country in the world), lease, promote or otherwise dispose of any Covered Products or any device covered by one or more claims of the Licensed
Patents. 
  
 Subject to the satisfaction of Section H, PDI grants
to Panelvision and Toro-Lira a paid-up, world-wide, irrevocable, non-exclusive license, under the Licensed Patents to make, have made, use, sell, offer to sell, import (into any country in the world), export (from any country in the world), lease,
promote or otherwise dispose of any Covered Products or any device covered by one or more claims of the Licensed Patents, provided that such acts are limited to research and development activities and are without the right to sell commercial
product(s) resulting from such research and development activities. 
  
 [ * ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 5 

 Nothing herein shall restrict Panelvision and/or Toro-Lira from selling commercially, product(s) that are
not Covered Products covered by one or more claims of the Licensed Patents; however, this provision is not to be interpreted as creating any additional rights beyond those elsewhere granted in this Section E. 
  
 Subject to the satisfaction of Section H, PDI further grants Panelvision and
Toro-Lira the right to make and sell, in the U.S. and the European Union, Covered Products covered by one or more claims of the Licensed Patents, under the Shimadzu name, that are not materially different from a Shimadzu design existing at the time
of any such manufacture and/or sale. 
  

	F.	COVENANTS 

  
 Subject to the satisfaction of Section H, PDI covenants not to sue Shimadzu or any Shimadzu-related company or Shimadzu customer, or Panelvision or
Toro-Lira for any act within the scope of the granted licenses. 
  
 Subject to the satisfaction of Section H, PDI agrees not to assert any currently issued patents or pending applications against the Covered Products that are not materially different from currently Covered Products as of the effective date
of this agreement. 
  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 6 

 No covenant not to sue or license granted hereunder by PDI shall extend to any panel test products or
product lines which Shimadzu may acquire from a party, who is not a signatory to this agreement, as part of a business acquisition or merger. 
  
 Neither the covenants not to sue nor the licenses granted hereunder are assignable or transferable in whole or in part without the prior written consent
of PDI. 
  

	G.	RELEASES 

  
 1. PDI’s Release of Shimadzu, Panelvision and Toro-Lira. Subject to the satisfaction of Section H, PDI hereby fully and unconditionally
releases and forever discharges Shimadzu, Panelvision and Toro-Lira, as well as, to the extent applicable, their past, former, present and future directors, officers, agents, distributors, representatives and customers, and any parent, subsidiary or
division or other affiliated entity, from all claims, demands, damages and causes of action of whatever kind or nature, whether in law or equity, whether known or unknown, that PDI may have or may have had relating in any way to the manufacture
and/or sale by Shimadzu, Panelvision and Toro-Lira of Covered Products anywhere in the world, including the claims, demands, damages and causes of action asserted in the U.S. Lawsuit and the Japan Lawsuit, relating to any of US patent 5,081,687, US
Reissue Patent No. 37,847, Japanese Patent No. 3292990, and any corresponding patent, or arising from any action or inaction relating to any of US Patent 5,081,687, US Reissue Patent No. 37,847, Japanese Patent No. 3292990, and any corresponding
patent; and specifically 
  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 including but not limited to PDI’s right to recover any and all damages for actual or alleged past infringement of
any claims under any of PDI’s patents, U.S. or otherwise. This release shall not limit the right of PDI to assert a breach of this Agreement. 
  
 2. Shimadzu’s, Panelvision’s and Toro-Lira’s Release of PDI. Effective upon the dismissal of the U.S. Lawsuit with prejudice,
Shimadzu, Panelvision and Toro-Lira hereby fully and unconditionally release and forever discharge PDI, as well as its past, former, present and future directors, officers, agents, distributors, representatives and customers, and any parent,
subsidiary or division or other affiliated entity, from all claims, demands, damages and causes of action of whatever kind or nature, whether in law or equity, whether known or unknown, that Shimadzu, Panelvision or Toro-Lira may have relating in
any way to US patent 5,081,687, US Reissue Patent No. 37,847, and/or Japanese Patent No. 3292990, or relating in any way to the invalidity and unenforceability of the same, or relating in any way to PDI’s enforcement of any one or more of such
patents, including the claims, counterclaims, demands, damages and causes of action asserted in the U.S. Lawsuit and the Japan Lawsuit. This release shall not limit the right of Shimadzu, Panelvision or Toro-Lira to assert a breach of this
Agreement. 
  
 3. Waiver of Section 1542. The parties’
releases are intended to cover the claims described in paragraphs 1 and 2 of this Section, whether the same are known, unknown or hereinafter discovered or ascertained. The parties acknowledge that they 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 have been advised by legal counsel and are familiar with the provisions of California Civil Code Section 1542, which
provides as follows: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 The parties waive any right, claim or cause of action that might arise as a result of the
discovery in the future of different or additional facts bearing on the claims and releases as set forth in paragraphs 1 and 2 of this Section. The parties understand the significance of such a release and expressly waive the provisions of Section
1542. 
  

	H.	PAYMENTS 

  
 In partial consideration for the release, the covenant not to sue and the license granted hereunder, PDI shall be paid the sum of
[ * ] US dollars. 
  
 PDI shall be liable
for any taxes of any kind levied on such payment, regardless of the taxing authority that levies such tax, and acknowledges that Shimadzu will withhold income taxes imposed in accordance with the U.S. – Japan Tax Treaty Concerning The Avoidance
of Double Taxation and other applicable U.S. laws, and pay the same to the Japanese Government for credit to the account of PDI. Shimadzu agrees to provide sufficient documentation of such withholding by the Japanese Government to enable PDI to seek
and obtain a corresponding credit from the government of the United States. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED. 
  

 9 

 Payment under this Section H shall be made, by wire transfer on November 10, 2003, directly to PDI’s
U.S. bank account as enumerated below: 
  
 SILICON VALLEY BANK

 3003 TASMAN DRIVE 
 SANTA CLARA,
CA 94596 
 ROUTING NUMBER 121140399 
  
 ACCOUNT NUMBER 3300132698 
  
 This section H will be deemed satisfied upon the receipt of the wired funds in PDI’s account. 
  

	I.	CONFIDENTIALITY 

  
 1. Return or Destruction and Nondisclosure of Confidential Material. The parties remain bound by the Protective Order entered in the US Lawsuit on
May 23, 2003, and will either return or destroy all confidential material subject to that Order, and abide by the non-disclosure requirements of that Order, as specified in Section VII thereof. 
  
 2. Confidential Agreement. The parties agree to keep the terms of this
Agreement confidential as to all Third Parties, except as provided in this paragraph 2. 
  
 PDI, Shimadzu, Panelvision and Toro-Lira agree to the issuance of a joint press release in the form of the attached Exhibit A. 
  

Shimadzu, Panelvision and Toro-Lira agree that PDI may disclose to a third party competitor of PDI the statement attached as Exhibit B, upon suitable
assurances from 
  
 [ * ] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 any such third party or third parties that the statement will be maintained in confidence by it or them, and upon
receiving written approval from Shimadzu, which will not be unreasonably withheld. [*]. 
  
 Any party to this agreement is permitted to disclose the statement attached as Exhibit C to any customer or prospective customer, provided that the customer agrees that the statement will be maintained in confidence
by it or them. 
  
 The parties agree that the text, terms and
conditions of this Agreement may, under appropriate conditions to maintain confidentiality, also be disclosed to: (1) its employees, attorneys, accountants or financial advisors who have a need to know in connection with the performance of their
duties, and (2) individuals or entities that are considering, in good faith, making a substantial investment in a party or are considering the acquisition of a party. 
  
 Other than the limited exceptions given above, the parties may disclose the entire Agreement herein, or its terms, only
where necessary to comply with any laws or applicable governmental administrative regulations or by court order. Where this Agreement is responsive to a Third Party subpoena or document request directed to one of the parties herein, such party may
produce this Agreement only on a confidential basis with disclosure only to outside counsel and only after giving written notice to the 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 other party to this Agreement with sufficient time given to the other party, prior to production, to seek a protective
order preventing or limiting disclosure. 
  

	J.	GENERAL REPRESENTATIONS AND WARRANTIES 

  
 1. PDI Authority. PDI hereby represents and warrants that PDI has the capacity, right and authority to enter into this Agreement and that there are
no other agreements binding upon PDI that would prevent PDI from, or would be breached by, entering into and performing this Agreement. 
  
 2. Shimadzu Authority. Shimadzu hereby represents and warrants that it has the capacity, right and authority to enter into this Agreement and there
are no other agreements binding upon Shimadzu that would prevent Shimadzu from, or would be breached by, entering into and performing this Agreement. 
  
 3. Panelvision Authority. Panelvision hereby represents and warrants that it has the capacity, right and authority to enter into this Agreement and
there are no other agreements binding upon Panelvision that would prevent Panelvision from, or would be breached by, entering into and performing this Agreement. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN
THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 4. Toro-Lira Authority. Toro-Lira hereby represents and warrants that he has the capacity, right
and authority to enter into this Agreement and there are no other agreements binding upon him that would prevent him from, or would be breached by, entering into and performing this Agreement. 
  

	K.	FUTURE DISPUTE RESOLUTION 

  
 The dispute resolution provisions of this Section K shall apply to the following disputes involving PDI and Shimadzu: (a) any dispute arising out of or
relating to this Agreement, including without limitation whether or not a given product is a Covered Product, (b) any dispute arising out of or relating to whether a given product, other than a Covered Product, is covered by a valid PDI patent, and
(c) any other dispute that PDI and Shimadzu collectively agree should be resolved using the provisions of this Section (collectively, “Future Disputes”). Panelvision and Toro-Lira are not bound to this Section K and do not agree to
arbitration under this Section K. 
  
 Future Disputes shall be
resolved in accordance with the two-step procedure specified in this Section K. Such procedure shall be the sole and exclusive procedure for the resolution of any Future Disputes but shall not apply to any other disputes between the parties, except
as agreed upon separately in writing. 
  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 As used hereafter in this Section K, the terms “party” and “parties” shall refer only
to the parties to the Future Dispute, and not more generally to the parties to this Agreement. 
  
 First Step – Informal Negotiations: Any party may provide written notice to the other party of its desire to resolve a Future Dispute that could not be resolved in the normal course of business. Within 15
days after delivery of the notice, the receiving party shall submit to the other a written response. Both the notice and the response shall include: (a) a statement of the party’s legal and factual position and a summary of arguments supporting
that position and (b) the name and title of the individuals who will represent that party in negotiations. Within 30 days after delivery of the disputing party’s response, the parties shall meet at a mutually acceptable time and place, and
thereafter as often as they reasonably deem necessary, to attempt to resolve the dispute. This Informal Negotiations step shall conclude after 120 days, unless the parties then agree to a longer fixed duration. All negotiations pursuant to this
paragraph shall be maintained as confidential as to all Third Parties and shall be considered as compromise and settlement negotiations which are inadmissible for any purpose in any evidentiary proceeding. 
  
 Second Step – Binding Arbitration: Should the Future Dispute at
issue remain unresolved at the conclusion of informal negotiations, and either party wishes to continue efforts to resolve the dispute, the parties shall initiate binding arbitration proceedings in Singapore. The binding arbitration shall proceed
according to the Rules 
  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 of Arbitration of the International Chamber of Commerce in effect at that time, as modified by this Agreement. Binding
arbitration shall be initiated by one party notifying the other party in writing of its election to proceed to binding arbitration to resolve the dispute. Unless the parties agree to conduct the arbitration using only a single arbitrator, each party
shall select a neutral disinterested arbitrator. Both arbitrators shall then select a third arbitrator to form a three-member panel. In the event that the parties elect to proceed with only one arbitrator, the arbitrator shall be jointly agreed to
by the parties or selected in accordance with the Rules of Arbitration of the International Chamber of Commerce, as set forth above. Any arbitrator selected, whether for a one-member panel or a three-member panel, shall be an attorney with at least
15 years of experience in the patent law field and at least five years of experience arbitrating patent disputes. The panel shall be selected no later than 30 days following written notice initiating arbitration. Upon appointment of the
arbitrator(s), the parties shall jointly meet with the arbitrator(s) to agree on a schedule for the arbitration and to set forth the issues to be arbitrated. The papers submitted to the arbitrator(s) shall consist of an opening memorandum by each
party, with supporting fact declarations if so desired, filed contemporaneously by the parties setting forth the legal and factual basis for the parties’ position. No expert declarations shall be submitted. No formal discovery, either via
written discovery or by deposition, shall be taken by the parties during the binding arbitration. Within 20 days after filing the opening memoranda, or as the parties and the arbitrator(s) may agree otherwise, each party may file contemporaneously a
supplemental memorandum, with rebuttal fact declarations only, if so desired. Within 30 days of the submission of the last to be filed memoranda, the arbitrator(s) shall conduct 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN
THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 a hearing that shall last no longer than two days and shall consist solely of attorney argument and presentation.
Although business representatives of each party may attend the hearing, neither party may bring a witness to the hearing for purposes of testifying. All oral argument and presentations pursuant to this paragraph shall be maintained as confidential
as to all Third Parties and shall be considered as compromise and settlement negotiations which are inadmissible in any future proceeding other than (a) those between the parties or (b) to enter judgment as described below. Upon receiving the
arbitration award, the losing party shall have 60 days to satisfy its terms. If the losing party has not satisfied the terms of the award within 60 days, the prevailing party may enter the arbitrators’ award as a judgment in any court having
jurisdiction. As a precondition to arbitration under this section K, all parties to the arbitration will consent, in advance, to jurisdiction in the Kyoto District Court in Japan, and any District Court in the Northern District of California, in the
US, for purposes of enforcement of the arbitration award. 
  
 In
proceeding to resolve any disputes under this Section K, the parties shall bear their own costs and attorneys’ fees, and shall share equally in the costs and fees for any arbitrator or panel of arbitrators selected to resolve such disputes.

  

	L.	MISCELLANEOUS PROVISIONS 

  
 Governing Law. This Agreement is made pursuant to, and shall be governed by, construed and interpreted in accordance with, the internal laws of the
State of California without reference to conflicts of law principles. 
  
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 
  

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 Further Actions and Assurances. The parties agree to cooperate fully and to execute any and all
supplementary documents and to take any and all additional actions that may be necessary or appropriate to give full force and effect to the terms, provisions and intentions of this Agreement. 
  
 Escrow. In order to memorialize the current form of the Covered
Products, Shimadzu agrees to place in escrow all technical documents produced to plaintiff during the course of the US Lawsuit. 
  
 Parties to Bear Costs. Each party shall bear its own costs and attorneys’ fees associated with all legal proceedings set forth herein.

  
 Entire Agreement; Merger. This Agreement constitutes
and confirms the entire agreement of the parties relating to the subject matter hereof and supersedes all prior and contemporaneous negotiations, correspondence, understandings and agreements of the parties relating to the subject matter hereof,
including the term sheet of October 10, 2003. Any modification, waiver or amendment of this Agreement or any term thereof must be in writing, signed by the party against which enforcement of any such modification, waiver or amendment is sought. No
oral modification of any term of this Agreement shall be effective for any purpose. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED. 
  

 17 

 Severability. If any provision within this Agreement is found void, invalid or unenforceable, it
shall not affect the validity of the other provisions of this Agreement, which shall remain valid and enforceable according to their terms; provided that no such severance shall be effective if the result materially changes the economic benefit of
this Agreement to any party. 
  
 Execution in Counterparts.
This Agreement may be executed in any number of counterparts, each of which, when so executed, shall be deemed an original and all of which shall constitute together one instrument. 
  
 Incorporation of Recitals. The recitals preceding this Agreement are incorporated into and made a part of this
Agreement. 
  
 Notices. All notices and communications
required to be given under this Agreement shall be in writing to the following addresses of the respective parties, or to such other address provided by notice from one party to each other party , and shall be deemed to have been properly delivered
either: five business days after mailing by registered mail, return receipt requested; two business days after mailing by Express Mail or overnight courier; or one business day after electronic transmittal by facsimile. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 18 

			
		
	 If to PDI:
	  	 Photon Dynamics, Inc.
 17 Great Oaks Blvd.
 San Jose, CA 95119
 USA
 Fax: 408-360-3551
  
 Attn: Richard Okumoto

		
	 If to Shimadzu:
	  	 Shimadzu Corporation
 Hadano Works
 380-1 Horiyamashita
 Hadano 259 –1304, Japan
 Fax: +81-75-811-2255
  
 Attn: Takashi Nishimura
 General Manager
 Research & Development Dept.
 Semiconductor Equipment Division

		
	 If to Panelvision or Toro-Lira:
	  	 Panelvision Technologies Inc.
 761 University Avenue
 Suite B
 Los Gatos, CA 95030
 Fax 408 395-2887
  
 Attn: Guillermo Toro-Lira,
 President

  
  
 Cooperative Drafting. Each party has cooperated in the drafting and preparation of this Agreement. No term of this Agreement shall be construed or
interpreted against any one party on the basis that the party was the drafter. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED. 
  

 19 

 Headings. The headings and titles in this Agreement are for convenience only, do not form part of
the parties’ agreement and should not be utilized in construing or interpreting this Agreement. 
  
 IN WITNESS WHEREOF, the parties through their duly authorized agents, have executed this Agreement. 
  

			
	PHOTON DYNAMICS
		
	By:	 	/s/    RICHARD OKUMOTO        
	 	 	

	 	 	 Name: Richard Okumoto
 Title: Chief Financial Officer

		
	Date:	 	November 5, 2003
	 	 	

	
	SHIMADZU
		
	By:	 	/s/    [*]        
	 	 	

	 	 	 Name:[*]
 Title: Director and General Manager
           Semiconductor Equipment Division

		
	Date:	 	November 5, 2003
	 	 	

  
 [ * ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 20 

			
	PANELVISION and TORO-LIRA
		
	By:	 	/s/    GUILLERMO TORO-LIRA        
	 	 	

	 	 	 Guillermo Toro-Lira, as an individual and as
 President of Panelvision

		
	Date:	 	November 6, 2003
	 	 	

	
	 
		
	By:	 	/s/    ALAN ABEL        
	 	 	

	 	 	 Alan Abel for Panelvision Technologies, Inc.
 Vice President

		
	Date:	 	November 6, 2003
	 	 	

  
 [ * ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 21 

 Photon Dynamics Incorporated v. Guillermo Toro-Lira, Panelvision Technology, and 
 Shimadzu Corporation 
 Case No. C02-02563 PJH

  
 Attachment A 
  
 Photon Dynamics, Inc. and Shimadzu Corporation announce that they have
settled all litigation between them regarding US Patent 5,081,687, US Reissue Patent No. 37,847, Japanese Patent 3292990. Pursuant to the agreement between the parties, Shimadzu Corporation, companies affiliated with Shimadzu, and customers of
Shimadzu are irrevocably licensed world-wide under US Patent 5,081,687, US Reissue Patent No. 37,847, Japanese Patent 3292990 and any corresponding patents to manufacture, use, and sell e-beam based panel test equipment designed by or for Shimadzu.
All other terms of the Agreement are confidential. 
  
 [ * ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 22 

 Photon Dynamics Incorporated v. Guillermo Toro-Lira, Panelvision Technology, and 
 Shimadzu Corporation 
 Case No. C02-02563 PJH

  
 Attachment B 
  
 Guillermo Toro-Lira, Panelvision, Photon Dynamics, Inc. and Shimadzu
Corporation have settled all litigation between them in both the United States and Japan. 
  
 As part of this settlement, [*]. 
  
 Also as part of this settlement, Shimadzu Corporation has a paid-up, world-wide, irrevocable, non-exclusive license under US Patent 5,081,687, US Reissue Patent No. 37,847, Japanese Patent 3292990, and any corresponding patent (including
any reissue, reexamination, continuation, division, or extension of any such patents) to make, have made, use, sell, offer to sell, import (into any country in the world), export (from any country in the world), lease, promote or otherwise dispose
of any e-beam panel testing equipment. 
  
 All other terms of the
agreement are confidential. 
  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 23 

 Photon Dynamics Incorporated v. Guillermo Toro-Lira, Panelvision Technology, and 
 Shimadzu Corporation 
 Case No. C02-02563 PJH

  
 Attachment C 
  
 Photon Dynamics, Inc., Guillermo Toro-Lira, Panelvision Technology, and
Shimadzu Corporation have settled all litigation between them in both the United States and Japan. 
  
 As part of this settlement, [*]. 
  
 Also as part of this settlement, Shimadzu Corporation, Guillermo Toro-Lira and Panelvision Technology have a paid-up, world-wide, irrevocable,
non-exclusive license under US Patent 5,081,687, US Reissue Patent No. 37,847, Japanese Patent 3292990, and any corresponding patent (including any reissue, reexamination, continuance, division, or extension of any such patents) to make, have made,
use, sell, offer to sell, import (into any country in the world), export (from any country in the world), lease, promote or otherwise dispose of any e-beam based panel testing equipment. 
  
 No party admits and liability or wrongdoing. In dismissing the legal proceedings, no party concedes the merits of the other
party’s infringement or non-infringement claims. 
  
 All
other terms of the agreement are confidential. 
  
 [ * ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 24 

 FRANK L. BERNSTEIN (State Bar No. 189504) 
 SUGHRUE MION, PLLC 
 1010 El Camino Real, Suite 300 
 Menlo Park, California 94025-4345 
 Telephone: (650) 325-5800 
 Facsimile: (650) 325-6606 
  
 (Additional counsel
on last page) 
  
 Attorneys for Defendants and Counterplaintiffs 
 PANELVISION TECHNOLOGY, 
 GUILLERMO TORO-LIRA, and 
 SHIMADZU CORPORATION 
  
 THEODORE W. BROWN (State Bar No. 114672) 
 GARY H. RITCHEY (State Bar No. 136209) 
 STEPHEN H. YOUTSEY (State Bar No. 212093) 
 TOWNSEND AND TOWNSEND AND CREW LLP

 379 Lytton Avenue 
 Palo Alto, California 94301 
 Telephone: (650) 326-2400 
 Facsimile: (650) 326-2422 
  
 Attorneys for Plaintiff and Counterdefendants 
 PHOTON DYNAMICS, INC. 
  
 UNITED STATES DISTRICT COURT 
 FOR THE NORTHERN DISTRICT OF CALIFORNIA

 SAN FRANCISCO DIVISION 
  

			
	
	 	 
		
	 PHOTON DYNAMICS, INC.,
 Plaintiff,
  
 v.
  
 PANELVISION TECHNOLOGY, GUILLERMO
 TORO-LIRA, and SHIMADZU CORPORATION,
 Defendants.
	  	Civ. No. C 02-02563 PJH  
 STIPULATION OF DISMISSAL

	
	 	 
		
	 PANELVISION TECHNOLOGY ET AL.,
 Counterplaintiffs,
  
 v.
  
 PHOTON DYNAMICS, INC.,
 Counterdefendant.
	  	 
	
	 	 

  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 25 

 Plaintiff and defendants hereby stipulate, by and through their respective counsel, that the
above-captioned action is dismissed with prejudice pursuant to Rule 41(a)(1) of the Federal Rules of Civil Procedure. Each party shall bear its own costs. 
  
 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 26 

							
	 	 	 Respectfully submitted,
 SUGHRUE MION, PLLC

				
	Dated:	 	 	 	By:	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 Frank L. Bernstein (Bar No. 189504)
  
 Richard C. Turner (admitted pro hac vice)
 Robert M. Masters (admitted pro hac vice)
 Grant K. Rowan (admitted pro hac vice)
 SUGHRUE MION, PLLC
 2100 Pennsylvania Ave. N.W.
 Washington, DC 20037
 Telephone: (202) 293-7060
 Facsimile: (202) 293-7860
  
 Robert E. Camors, Jr., (State Bar No. 121204)
 225 West Santa Clara Street, Suite
1200
 San Jose, CA 95113-1723
 Telephone: (408) 292-5800
 Facsimile: (408) 287-8040
  
 Attorneys for Defendants
 PANELVISION TECHNOLOGY,
 GUILLERMO TORO-LIRA, AND
 SHIMADZU CORPORATION

		
	 	 	 TOWNSEND AND TOWNSEND AND CREW, LLP

				
	Dated:	 	 	 	By:	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 Theodore G. Brown (State Bar No. 114672)
  
 Attorneys for Plaintiff
 PHOTON DYNAMICS, INC.

  
 [ * ] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 27Research, Development and License Agreement

 EXHIBIT 10.39 
  
 Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. Such portions are marked by a series of asterisks. 
  
 RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT 
  
 BETWEEN 
  
 NEOSE TECHNOLOGIES, INC. 
  
 AND 
  
 NOVO NORDISK A/S

  
 DATED AS OF NOVEMBER 17, 2003 

 EXHIBIT 10.39 
  
 Table of Contents 
  

					
	 	  	 	  	Page

	 1.
	  	DEFINITIONS	  	1
	 2.
	  	CONDUCT OF THE PROJECT AND COMMERCIALIZATION EFFORTS	  	7
	 3.
	  	FEES AND DEVELOPMENT PAYMENTS	  	9
	 4.
	  	PRODUCT PAYMENTS AND ROYALTIES	  	12
	 5.
	  	INTELLECTUAL PROPERTY GRANTS AND RIGHT OF NEGOTIATION	  	16
	 6.
	  	OWNERSHIP OF INTELLECTUAL PROPERTY	  	18
	 7.
	  	BLOCKING PATENTS	  	21
	 8.
	  	SUPPLY AGREEMENT	  	23
	 9.
	  	CONFIDENTIALITY	  	23
	 10.
	  	REPRESENTATIONS AND WARRANTIES	  	24
	 11.
	  	INDEMNIFICATIONS AND LIMITED LIABILITY	  	25
	 12.
	  	TERM AND TERMINATION	  	27
	 13.
	  	DISPUTE RESOLUTION	  	29
	 14.
	  	GOVERNMENT APPROVAL	  	29
	 15.
	  	MISCELLANEOUS	  	30

 EXHIBIT 10.39 
  
 RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT 
  
 This RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT (“Agreement”), is dated as of November 17, 2003, between Neose Technologies,
Inc., a Delaware corporation (“Neose”), and Novo Nordisk A/S, a Danish corporation (“Novo”). 
  
 BACKGROUND 
  
 Neose has developed and continues to develop proprietary technologies and related know-how for the glycosylation, design and remodeling of proteins,
peptides and antibodies. Such glycomodelling technologies are including but not limited to GlycoAdvanceTM,
GlycoPEGylationTM and GlycoConjugationTM technologies. Neose and Novo are parties to an Option
Agreement, dated December 10, 2002, whereby Novo has an exclusive option to negotiate a license to use Neose’s technologies to develop next generation ****** in collaboration with Neose. Novo now wishes to exercise such option under the terms
and conditions of this Agreement, which includes, among other things, further research and development, scale-up and technology transfer activities by Neose, and the grant of rights to Novo under certain patents and know-how owned or controlled by
Neose for use in connection with the development and commercialization of ******. 
  
 Contemporaneously with the execution and delivery of this Agreement, Neose and Novo are entering into another Research, Development and License agreement regarding ****** ******. 
  
 TERMS 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual
agreements and covenants contained in this Agreement, and intending to be legally bound hereby, Novo and Neose agree as follows: 
  
 1. DEFINITIONS. Capitalized terms not otherwise defined shall have the meaning set forth in this Section 1. 
  
 1.1 “Affiliate” means, with respect to any Person, any other
Person that directly or indirectly controls, is controlled by, or is under common control with, such Person. Without limiting the foregoing, a Person shall be regarded as in control of another Person if it owns, or directly or indirectly controls,
more than fifty percent (50%) of the voting stock or other ownership interest of the other Person. 
  
 1.2 “Blocking Patent” means any Patent Rights claimed to be owned or Controlled by a Third Party with respect to which Patent Rights an
assertion is being made by or on behalf of the Third Party that the use of the Neose Technology under this Agreement infringes such Person’s Patent Rights. 
  

1.3 “Calendar Quarter” means any of the respective periods of three (3) consecutive calendar months ending on March 31, June 30,
September 30 or December 31 during the Term. 

 1.4 “Calendar Year” shall mean the respective periods of twelve (12) consecutive
calendar months ending on December 31 during the Term. 
  
 1.5
“Commercially Reasonable Efforts” shall mean efforts and resources normally used by a Party in similar undertakings, taking into account the proprietary position of the product or technology involved, the regulatory structure involved,
the profitability of such undertaking, the competitiveness of the relevant marketplace, and other relevant factors. 
  
 1.6 “Commercial Sale” means any sale of a New Product by Novo, its Affiliates, or Sublicensees to a Person other than their respective
Affiliates or Neose. 
  
 1.7 “Confidential
Information” shall mean any of the Disclosing Party’s proprietary or confidential information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, the identity of the Novo
Materials, information relating to the Novo Materials, service plans, services, customer lists and customers, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, marketing, distribution and
sales methods and systems, sales and profit figures, finances and other business information disclosed to the Recipient by or on behalf of the Disclosing Party, either directly or indirectly, in writing, orally or by drawings or inspection of
documents or other tangible property. 
  
 1.8
“Control” or “Controlled” means possession of the ability to grant a license or sublicense as provided for herein without violating the terms of an agreement or other arrangement with a Third Party existing before or after
the Effective Date. 
  
 1.9 “Designated
Representative” means, in the case of Neose, its Senior Vice President, Business and Commercial Development, or such other person designated by Neose in writing from time to time to Novo, and, in the case of Novo, its Executive Vice
President and Chief Science Officer, or other such other person designated by Novo in writing from time to time to Neose. 
  
 1.10 “Disclosing Party” is used as defined in Section 9.1. 
  
 1.11 “Effective Date” shall mean the later of (i) the date of execution of this Agreement by both Parties
or (ii) if notification is required to be made under the HSR Act, the expiration or earlier termination of any notice and waiting period under the HSR Act. 
  
 1.12 “****** Agreement” means the Research, Development and License Agreement between Neose and Novo with respect to ******, which is
being entered into contemporaneously with the execution of this Agreement. 
  
 1.13 “FDA” means the United States Food and Drug Administration and any successor agency. 
  
 1.14 “Field of Use” means the development and commercial manufacture of New Products for ******. 
  
 1.15 “GMPs” shall mean current good manufacturing practices
for the methods to be used in, and the facilities and controls to be used for, the manufacture, processing, packing and holding of biological products, all as set forth from time to time by the FDA, including all amendments and supplements thereto
throughout the term of this Agreement. 
  

 - 2 - 

 1.16 “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules and regulations promulgated thereunder. 
  
 1.17 “Improvements” means any and all developments, discoveries, inventions, additions, amendments, modifications, ideas, processes, methods, compositions, formulae, techniques, information and data, whether or not
patentable, conceived, developed or reduced to practice, that improve or beneficially change, or enhance the economic and technical attributes of, any Know-How or Patent Rights or any process, device or composition. 
  
 1.18 “IND” means an application for an Investigational
Exemption for a New Drug filed with the FDA, or any comparable filing made with a regulatory authority outside the United States. 
  
 1.19 “Joint Improvements” means any and all Improvements made, conceived or reduced to practice jointly by Neose and Novo in the conduct
of the Work Plan under this Agreement, whether patentable or not, other than Neose Improvements and Novo Improvements. 
  
 1.20 “Know-How” means any and all formulae, procedures, processes, methods, designs, know-how, show-how, trade secrets, discoveries,
inventions (whether or not patentable), patent applications, licenses, software and source code, programs, prototypes, designs, discoveries, techniques, methods, ideas, concepts, data, engineering and manufacturing information, electronic control
circuits, specifications, diagrams, drawings, schematics, blueprints and parts lists and other proprietary information, rights and works of authorship, whether or not reduced to writing. 
  
 1.21 “M1 Profile for the New ****** Product” means the parameters for candidate selection required for
****** set forth on Exhibit 1.21, as amended from time to time in accordance with Section 2.2. 
  
 1.22 “M1 Profile for the New ****** Product” means the parameters for candidate selection required for ****** set forth on Exhibit 1.22,
as amended from time to time in accordance with Section 2.2. 
  
 1.23 “Mutual Nondisclosure Agreement” means the Amended and Restated Mutual Nondisclosure Agreement between the Parties dated November 25, 2002. 
  
 1.24 “Neose Improvements” means any and all Improvements relating to the Neose Technology made, conceived,
or reduced to practice by (i) either Neose or Novo or both in the conduct of the Work Plan under this Agreement or (ii) Neose or jointly by Neose and Novo under this Agreement, in each case, other than the Novo Materials, the Novo Materials modified
using the Neose Technology and New Products. 
  
 1.25
“Neose Patents” means all Patent Rights relating to methods and processes for glycosylation design and remodeling of proteins, peptides and antibodies that are Controlled by Neose, including, but not limited to, (i) the Patent Rights
listed in Exhibit 1.25, (ii) the Patent Rights developed by Neose in the conduct of the Work Plan during the Term of this Agreement, and (iii) any later acquired Patent Rights Controlled by Neose and used to develop any New Product. 
  
 1.26 “Neose Project-Related Costs” means Neose’s costs
of conducting the Work Plan, which shall be determined in accordance with this Agreement and calculated as follows: (i) with respect to personnel, at the rate of ******; and (ii) with respect to materials, at the ******. 
  

 - 3 - 

 1.27 “Neose Technology” means the Neose Patents and any Know-How Controlled by Neose
relating to methods and processes for the ******, including, without limitation, its GlycoAdvanceTM, GlycoPEGylationTM and GlycoConjugationTM technologies, and other ****** processes, and all Know-How resulting from work conducted by Neose during the Term. 
  
 1.28 “Net Sales” means proceeds from Commercial Sales of New Products by Novo, its Affiliates or Sublicensees to Third Parties, after
deducting (to the extent actually incurred or reasonably estimated and accrued in accordance with Generally Accepted Accounting Principles in the United States and to the extent not already deducted in the amount invoiced): (i) reasonable trade,
cash and quantity discounts or rebates (other than price discounts granted at the time of sale), reasonable service allowances and reasonable required agent’s commissions, if any, allowed or paid, (ii) credits or allowances actually given or
made for rejection or return of previously sold products or for retroactive price reductions (including Medicare, Medicaid, and/or discounts and similar types or rebates and/or discounts), (iii) taxes, duties or other governmental charges levied on
or measured by the billing amount (excluding income and franchise taxes), as adjusted for rebates and refunds, and (iv) charges actually incurred for freight and insurance directly related to the distribution of New Products (excluding amounts
reimbursed by Third Party customers). A “Commercial Sale of a New Product” is deemed to occur when the invoice is issued, or if no invoice is issued, upon the earlier of shipment or transfer of title in the New Product to a Third Party. In
the event that New Product is sold or distributed for use in combination with or as a component of another product or products (a “Combination Product”), the calculation of Net Sales from such Combination Product shall be determined as set
forth below: 
  
 If all of the active ingredient components of a
Combination Product are also sold separately and in identical strengths to those contained in the Combination Product, then the following shall apply: Net Sales shall be calculated as set forth above on the basis of the gross invoice price of a New
Product containing the same weight of the licensed active ingredient constituent sold independently [A], divided by the sum of the gross invoice price of all of the active ingredient constituents sold independently [B + A], multiplied by the gross
invoice price of the Combination Product, as shown by the following formula: 
  

					
	 Net Sales =
	 	 [A]

	  	 x    [gross invoice price of the Combination Product]

	 	 	 [B + A]
	  	 

  
 The distribution
costs associated with any Combination Product will be allocated in the same proportion among the licensed active ingredient components and all other active ingredient components. 
  

 - 4 - 

 If the active ingredient components of a Combination Product are not sole separately in identical
strengths to those contained in the Combination Product, then the parties agree to negotiate in good faith the calculation of Net Sales with regard to such Combination Product. 
  
 1.29 “New ****** Product” shall mean any Novo Materials described in clause (i) of Section 1.33
modified by using the Neose Technology. 
  
 1.30 “New
****** Product” shall mean any Novo Materials described in clause (ii) of Section 1.33 modified by using the Neose Technology. 
  
 1.31 “New Products” shall mean any and all New ****** Products and New ****** Products, collectively. 
  
 1.32 “Novo Improvements” means any and all Improvements that
are related to the Novo Materials and/or any of the New Products made, conceived or reduced to practice by Novo or Neose or both, other than Neose Improvements. 
  

1.33 “Novo Materials” mean any and all forms of (i) ******, including, but not limited to, ******, such as ****** substances, or (ii)
******, including, but not limited to, ******, such as ****** substances. 
  
 1.34 “Novo Technology” means the Patent Rights and Know-How Controlled by Novo relating to the Novo Materials. 
  

1.35 “Ownership Rights” means any and all right, title and interest under patent, copyright, trade secret and trademark law, or any
other intellectual property or other law, in and to any Know-How, Patent Rights, or Improvements. 
  
 1.36 “Parties” means Neose and Novo, collectively. 
  
 1.37 “Party” means Neose or Novo, as the context requires, or each of Neose and Novo, individually.

  
 1.38 “Patent Rights” shall mean individually
and collectively any and all patents and/or patent applications and provisional applications, all inventions disclosed therein, and any and all continuations, continuations-in-part, continued prosecution applications, divisions, renewals, patents of
addition, reissues, confirmations, registrations, revalidations, revisions and re-examinations thereof, utility models, petty patents, design registrations and any and all patents issuing therefrom and any and all foreign counterparts thereof and
extensions of any of the foregoing including without limitation extensions under the U.S. Patent Term Restoration Act, extensions under the Japanese Patent Law, and Supplementary Protection Certificates (SPCs) according to Counsel Regulation (EEC)
No. 1768/92 and similar extensions for other patents under any applicable law in any country of the world. 
  
 1.39 “Permit” means any governmental or regulatory filing, submission, approval, permit or license that is required by applicable law in
any jurisdiction worldwide for clinical trials, Commercial Sales or other use of any of the New Products. 
  
 1.40 “Person” means an individual, corporation, partnership, trust, business trust, association, joint stock company, joint venture,
pool, syndicate, sole proprietorship, unincorporated organization, government, governmental agency, authority or instrumentality, or any other form of entity not specifically listed in this Agreement. 
  

 - 5 - 

 1.41 “Product-Candidate” means any new ****** product-candidate Controlled by Neose
during the Term. 
  
 1.42 “Project” means the
project to be conducted hereunder by the Parties in accordance with the Work Plan. 
  
 1.43 “Project Manager” means the project managers described in Section 2.4.1. 
  
 1.44 “Reagents” means the enzymes and sugar nucleotides required to use the Neose Technology in the manufacture of New Products.

  
 1.45 “Recipient” is used as defined in
Section 9.1. 
  
 1.46 “Regulated Market”
means any jurisdiction worldwide that requires a Permit for clinical trials, Commercial Sales or any other use of a New Product. 
  
 1.47 “Regulatory Approval” means any marketing authorization (including authorizations approving a Biologics License Application)
required for a New Product, exclusive of any pricing or third-party reimbursement approval. 
  
 1.48 “Required Agreement” means any agreement with a Sublicensee required under Section 5.1.3. 
  
 1.49 “Steering Committee” means the steering committee established pursuant to Section 2.4.2, or any successor group appointed by
the Parties. 
  
 1.50 “Sublicensee” means a
sublicensee of Novo’s rights under Section 5. 
  
 1.51 “Supply Agreement” means the supply agreement to be entered into between Neose and Novo in accordance with Section 8. 
  
 1.52 “Territory” means the world. 
  
 1.53 “Term” means the term of this Agreement, which shall commence on the Effective Date and shall expire or terminate as described in
Section 12. 
  
 1.54 “Third Party” means
any Person other than Novo, Neose, or their respective Affiliates. 
  
 1.55 “Valid Patent Claim” means a claim of an issued and unexpired patent forming part of the Neose Patents that has not been held revoked, unenforceable or invalid by a decision of a court or other government agency of
competent jurisdiction, or unappealable or unappealed within the time allowed for appeal, or which has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. For the purposes of determining royalties due and
payment obligations under this Agreement, any claim being prosecuted in a pending patent application included in the Licensed Patents shall be deemed a Valid Patent Claim, provided that such claim is not pending for more than ****** in which the
subject matter of the claim is disclosed, after which period it shall cease to be considered a Valid Patent Claim until the patent issues. 
  

 - 6 - 

 1.56 “Work Plan” means the Work Plan attached hereto as Exhibit 2.2, and, unless
otherwise specified, as amended from time to time in accordance with Section 2.2. 
  
 2. CONDUCT OF THE PROJECT AND COMMERCIALIZATION EFFORTS 
  
 2.1 Conduct. Commencing promptly after the Effective Date, Neose and Novo will use Commercially Reasonable Efforts to carry out their respective
obligations under the Work Plan. 
  
 2.2 Creation and
Modification of Work Plan. Attached hereto as Exhibit 2.2 is the Work Plan, setting forth a project summary and timetable for the research and development, scale-up and technology transfer activities to be conducted under this Agreement. Neose
shall be responsible for the development of validated, GMP processes for the production of Reagents for use in the manufacture of New Products and protocols for the use of the Reagents in the manufacture of New Products by Novo, all as set forth in
Exhibit 2.2. The Work Plan may be amended or modified from time to time, but only in a writing signed by each Party’s Designated Representative and specifying the Parties’ estimate of any additional Neose Project-Related Costs that will be
paid by Novo as a result of such amendment. 
  
 2.3 Funding

  
 2.3.1 Estimate. The Neose Project-Related Costs are
estimated to be ****** for each New Product of ****** in the aggregate, plus the cost of materials. This estimate is based upon the Work Plan set forth in Exhibit 2.2. If the Parties amend the Work Plan in a manner that requires any new product or
service to be provided by Neose (e.g., a new Reagent, expression system, scale up activity) which is not currently incorporated in the Work Plan, the Parties shall agree in writing on any increase in the Neose Project-Related Costs that are
authorized in connection with such amendment. 
  
 2.3.2
Payment. Novo will pay for the Neose Project-Related Costs quarterly in advance. No earlier than thirty (30) days before the beginning of each Calendar Quarter following the Effective Date, Neose will invoice Novo for such amount based on a
budgeted estimate of Neose Project-Related Costs for such Calendar Quarter. Within thirty (30) days after the end of each Calendar Quarter following the Effective Date, Neose shall submit to Novo a written report setting forth the actual Neose
Project-Related Costs for such Calendar Quarter, and shall, as applicable, pay to Novo any amounts paid by Novo for such Calendar Quarter in excess of the actual Neose Project-Related Costs shown in such report, or invoice Novo for any additional
amounts owed hereunder. Novo will pay all invoices delivered under this Section 2.3 within ****** days after receipt. 
  
 2.4 Management of Project 
  
 2.4.1 Project Managers. Within thirty (30) days after the Effective Date, each of the Parties shall appoint a Project Manager, who will be its
primary contact regarding the Project. The Project Managers shall keep each other reasonably informed of the progress under the Work Plan and shall be responsible for maintaining appropriate records of the deliberations and decisions of the Project
Managers and the Steering Committee. The Project 
  

 - 7 - 

 Managers shall be responsible for overseeing and directing the day-to-day activities conducted at their respective sites
in accordance with the Work Plan and suggesting changes for consideration by the Steering Committee. A Party may change its Project Manager at any time, and from time to time, effective upon notice to the other Party of such change. 
  
 2.4.2 Establishment and Responsibilities of Steering Committee.
Promptly following the Effective Date, the Parties will establish a Steering Committee to monitor the progress of the Work Plan, to evaluate and recommend to the Parties any proposed amendments or modifications to the Work Plan and the costs
thereof, to approve and monitor compliance with any publication policy provided to it by Novo, and to carry out all other obligations assigned to it under this Agreement or by the Parties. Each Party may designate a co-chairperson and secretary of
the Steering Committee. 
  
 2.4.3 Action by Steering Committee
and Dispute Resolution. The Steering Committee shall consist of such number of members and alternate members as the Parties may determine from time to time. Each Party shall appoint fifty percent (50%) of the permanent and alternate members of
the Steering Committee. The members of the Steering Committee shall include members of senior management of each Party. The members of the Steering Committee representing a Party and present at a meeting shall have one vote, collectively. If the
Steering Committee cannot reach agreement on any matter, ****** shall be entitled to ******; provided, however, that if the Steering Committee cannot reach agreement on any matter involving a change in the scope of work to be conducted by ******
under the Work Plan, the schedule of the work to be conducted by ****** under the Work Plan, or the ******, such dispute shall resolved in accordance with Section 13. 
  
 2.4.4 Changes to Steering Committee. Each Party may remove and replace its representatives on the Steering Committee
at any time, without cause, upon written notice to the other Party. An alternate member designated by a Party shall be entitled to participate in the absence of a permanent member designated by such Party. All references to
“members” in this Agreement refer to the then permanent members of the Steering Committee and any alternate member acting in the place of a permanent member. 
  
 2.4.5 Meetings. Regular meetings of the Steering Committee shall be scheduled by the Project Managers or the
secretary of the Steering Committee designated by either Party. Special meetings of the Steering Committee may be called by the Project Managers or by any two or more members, at least one of whom represents each Party. Meetings may be in person or
by teleconference or videoconference, and notice of meetings may be by email. Each Party will bear its own costs in connection with the management of the Project and the Steering Committee. 
  
 2.4.6 No Waiver. No action, nor any failure to act, by the Steering
Committee shall alter, amend, waive or otherwise affect the obligations of the Parties under this Agreement. The Parties may amend this Agreement only in accordance with Section 15.6, and a Party may waive any of its right under this
Agreement only in accordance with Section 15.9. 
  
 2.5
Cooperation. Throughout the Project, each Party shall cooperate with the other in the conduct of the Work Plan, and will provide such information in its possession or under its Control to the other Party as is reasonably necessary for the other
Party to comply with and satisfy the requirements of any and all international, national, state, local or other laws, treaties, rules, procedures or regulations for purposes of this Agreement, or to carry out its obligations under this Agreement.

  

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 2.6 Permits. Prior to the commencement of any clinical trials, Commercial Sales or other use of
any New Product in a Regulated Market, Novo shall obtain at its expense all Permits required for such activity in the applicable jurisdictions. Novo shall submit all applications for Permits for the New Products in the name of Novo or its
Affiliates. Novo shall hold all such Permits, if and when granted, in its name alone. Neose, at Novo’s expense, shall provide reasonable assistance and technical support to Novo in obtaining the Permits for the New Products. Novo shall pay all
expenses with respect to obtaining the Permits for the New Products including, without limitation, the cost of clinical trials and preparation and prosecution of permit applications. Novo shall be solely responsible for renewing any Permits at its
expense. Neose shall supply Novo, at Novo’s expense, with Reagents for producing New Products under the terms and conditions of the Supply Agreement. 
  
 2.7 Additional Development and Commercialization Activities. Except as set forth in the Work Plan or the Supply Agreement, Neose shall not have any
obligation to perform any further research, development, technology transfer, technical support, improvements, modifications, or other activities. Novo shall use Commercially Reasonable Efforts to obtain Regulatory Approvals for, and Commercial
Sales of, each New Product. 
  
 3. FEES AND DEVELOPMENT
PAYMENTS 
  
 3.1 License Fee. In consideration of the
licenses granted by Neose under this Agreement and the ****** Agreement, Novo shall pay Neose a one-time, nonrefundable upfront fee of ****** within ten (10) days after the Effective Date. 
  
 3.2 Milestone Payments Relating to Development of the New ******
Product. In consideration of the development efforts of Neose under the Work Plan, Novo shall pay Neose the amount of each milestone payment described in this Section 3.2 with respect to the development of the New ****** Product. With
respect to the milestone payments described in Sections 3.2.1 through 3.2.7, the Parties agree that Neose shall have earned the right to receive each respective milestone payment, and Novo shall be obligated to pay the milestone payment and
shall have met its diligence obligations with respect to the respective milestone, in each case, as a result of either (i) the achievement of the milestone event prior to the occurrence of the corresponding anniversary date or (ii) the occurrence,
alone, of the corresponding anniversary date. With respect to the milestone payments described in Sections 3.2.8 and 3.2.9, Neose shall have earned the right to receive each respective milestone payment, and Novo shall be obligated to pay the
milestone payment, as a result of the achievement of the milestone event. 
  
 3.2.1 ****** upon ****** to occur of: (i) the first date on which there shall be a candidate which has been shown to meet the ****** for the ****** Product, and Neose shall have delivered to Novo ****** for the
production of such candidate; and (ii) the ****** anniversary of the Effective Date. 
  
 3.2.2 ****** upon the earlier to occur of ****** of the ****** with respect to the New ****** Product or the ****** anniversary of the achievement of the milestone described in Section 3.2.1 above.

  

 - 9 - 

 3.2.3 ****** upon the earlier of ****** of the ****** of the New ****** Product ****** or the
****** anniversary of the achievement of the milestone described in Section 3.2.2 above. 
  
 3.2.4 ****** upon earlier to occur of ****** of the ****** of the New ****** Product or the ****** anniversary of the achievement of the milestone
described in Section 3.2.3 above. 
  
 3.2.5 ******
upon the first to occur of the first ****** of the New ****** Product or the ****** anniversary, as designated by Novo pursuant to Section 3.5, of the achievement of the milestone described in Section 3.2.4 above. 
  
 3.2.6 ****** upon the ****** of the New ****** Product in ******.

  
 3.2.7 ****** upon the ****** of the New ****** Product
in ****** 
  
 3.2.8 ****** upon each ****** of the
New ****** Product for any ****** which occurs after the ****** of the New ****** Product, which amount shall be ******, to an amount mutually agreed upon by the Parties, upon the reasonable request of Novo in the case of a New ****** Product for an
******. 
  
 3.2.9 ****** upon each ****** of the New
****** Product in ****** for any ****** which occurs after the ****** of the New ****** Product in ******, which amount shall be ******, to an amount mutually agreed upon by the Parties, upon the reasonable request of Novo in the case of a New
****** Product for an ******. 
  
 3.3 Milestone Payments
Relating to Development of the New ****** Product. In consideration of the development efforts of Neose under the Work Plan, Novo shall pay Neose the amount of each milestone payment described in this Section 3.3 with respect to the
development of the New ****** Product. With respect to the milestone payments described in Sections 3.3.1 through 3.3.7, the Parties agree that Neose shall have earned the right to receive each respective milestone payment, and Novo shall be
obligated to pay the milestone payment and shall have met its diligence obligations with respect to the respective milestone, in each case, as a result of either (i) the achievement of the milestone event prior to the occurrence of the corresponding
anniversary date or (ii) the occurrence, alone, of the corresponding anniversary date. With respect to the milestone payments described in Sections 3.3.8 and 3.3.9, Neose shall have earned the right to receive each respective milestone
payment, and Novo shall be obligated to pay the milestone payment, as a result of the achievement of the milestone event. 
  
 3.3.1 ****** upon the ****** to occur of: (i) the first date on which there shall be a candidate which has been shown to meet the ****** for the
New ****** Product, and Neose shall have delivered to Novo ****** for the production of such candidate; and (ii) the ****** anniversary of the Effective Date. 
  

3.3.2 ****** upon the earlier to occur of ****** of the ****** with respect to the New ****** Product or the ****** anniversary of the
achievement of the milestone described in Section 3.3.1 above. 
  
 3.3.3 ****** upon the earlier of ****** of the ****** of the New ****** Product ****** or the ****** anniversary of the achievement of the milestone described in Section 3.3.2 above. 
  

 - 10 - 

 3.3.4 ****** upon the first to occur of the ****** of the ****** of the New ****** Product or the
****** anniversary of the achievement of the milestone described in Section 3.3.3 above. 
  
 3.3.5 ****** upon the first to occur of the ****** of the New ****** Product or the ****** anniversary, as designated by Novo pursuant to
Section 3.5, of the achievement of the milestone described in Section 3.3.4 above. 
  
 3.3.6 ****** upon the ****** of the New ****** Product in ******. 
  
 3.3.7 ****** upon the ****** of the New ****** Product in ******. 
  
 3.3.8 ****** upon each ****** of the New ****** Product for any
****** which occurs after the ****** of the New ****** Product, which amount shall be ******, to an amount mutually agreed upon by the Parties, upon the reasonable request of Novo in the case of a New ****** Product for an ******. 
  
 3.3.9 ****** upon each ****** of the New ****** Product in ****** for
any ****** which occurs after the ****** of the New ****** Product in ******, which amount shall be ******, to an amount mutually agreed upon by the Parties, upon the reasonable request of Novo in the case of a New ****** Product for an ******.

  
 3.4 Restriction on Multiple Milestone Payments. The
Parties acknowledge and agree that at anytime prior to the ****** for a New Product, the Steering Committee may decide to continue the development of the New Product solely with a back-up candidate if a candidate initially taken into development
should fail for ****** reasons, including, but not limited to, ******, or the occurrence of ******. In the event that the Steering Committee makes such a decision, this Agreement shall be amended to reflect, among other things, the resulting changes
to the Work Plan and the Neose Project-Related Costs mutually agreed upon by the Parties. In such event, Novo ****** be required to ****** each of the following milestone payments: (i) the milestone payments set forth in Sections ****** through
****** with respect to the New ****** Product, or (ii) the milestone payments set forth in Sections ****** through ****** with respect to the New ****** Product. 
  
 3.5 Coordination with ****** Agreement. The Parties agree that it may be appropriate to adjust one or more of the
anniversary dates set forth in Sections ****** through ****** and Sections ****** through ****** as a result of ****** limitations (e.g., ******) that may be encountered by Novo if either or both of the New Products and the product
being developed under the ****** Agreement are scheduled to pass through the same ****** at the same time. Novo may request such an adjustment at any time, and from time to time, by providing notice of the proposed adjustment to Neose. Promptly
after receipt of such a notice, the Steering Committee shall meet to evaluate the request. Within thirty (30) days after Novo provides such notice, the Steering Committee shall provide a written recommendation to both Parties with respect to such
request. Within fifteen (15) days after receipt of any such recommendation, the Steering Committee shall meet to discuss the recommendation and, if mutually agreeable, to negotiate and propose the terms of amendment(s) to the Work Plan and this
Agreement which would permit Novo to continue developing the New Products and the ****** in a practical and efficient manner, with the goal of minimizing the aggregate time to market for the New Products and the ******. 
  

 - 11 - 

 3.6 Timing of Milestone Payment. If Novo has not achieved either of the milestone events set forth
in Section ****** or ****** before the first to occur of the ****** of the milestone event set forth in Section ****** or the ****** of the milestone event set forth in Section ****** (such date being referred to as the
“Designation Date” for purposes of this Section), Novo shall designate, by written notice to Neose given on the Designation Date, whether the ****** or ****** shall be applicable for Section ******, in which case the ****** not
designated shall be applicable to Section ******. 
  
 4.
PRODUCT PAYMENTS AND ROYALTIES 
  
 4.1 Royalties on Net
Sales. Novo will pay to Neose royalties as a percentage of annual Net Sales of each New Product during the Term, on a Product-by-Product basis, at the applicable rates set forth in this Section 4.1 and in accordance with this Section
4: 
  
 4.1.1 ****** of annual Net Sales of the New
****** Product up to ******. 
  
 4.1.2 ****** of annual
Net Sales of the New ****** Product between ****** up to ******. 
  
 4.1.3 ****** of annual Net Sales of the New ****** Product over ******. 
  
 4.1.4 ****** of annual Net Sales of the New ****** Product up to ******. 
  
 4.1.5 ****** of annual Net Sales of the New ****** Product between ****** up to ******. 
  
 4.1.6 ****** of annual Net Sales of the New ****** Product over
******. 
  
 4.2 Minimum Royalties.  
  
 4.2.1 Mandatory Minimum Royalties. Commencing with the first ******
of the ****** full Calendar Year following the First Commercial Sale of each New Product, Novo will pay minimum royalties in respect of the New Products for such Calendar Year and ****** during the Term, in the amounts set forth in this Section
4.2.1 and in accordance with this Section 4: 
  
 4.2.1.1 For the ****** Calendar Year following the First Commercial Sale of the New ****** New Product: ******. 
  
 4.2.1.2 For the ****** Calendar Year following the First Commercial Sale of the New ****** Product: ******. 
  
 4.2.1.3 For the ****** Calendar Year following the First Commercial
Sale of the New ****** Product, and ****** thereafter: ******. 
  
 4.2.1.4 For the ****** Calendar Year following the First Commercial Sale of the New ****** New Product: ******. 
  

 - 12 - 

 4.2.1.5 For the ****** Calendar Year following the First Commercial Sale of the New ******
Product: ******. 
  
 4.2.1.6 For the ****** Calendar Year
following the First Commercial Sale of the New ****** Product, and for ****** thereafter: ******. 
  
 All minimum royalty payments made in accordance with this Section 4.2.1 with respect to the New ****** Product shall be ****** against royalties payable under Section ****** in respect of the New ******
Product, and all minimum royalty payments made in accordance with this Section 4.2.1 with respect to the New ****** Product shall be ****** against royalties payable under Section ****** in respect of the New ****** Product, in each
case, in the same or any subsequent Calendar Quarter during the same Calendar Year. 
  
 4.2.2 Optional Minimum Royalties. If the First Commercial Sale of the New ****** Product has not occurred on or before the ****** anniversary of the achievement of the milestone described in Section
****** (the “****** Milestone”), or if the First Commercial Sale of the New ****** Product has not occurred on or before the ****** anniversary of the achievement of the milestone described in Section ****** (the “******
Milestone”), or both, and Novo makes an election to extend this Agreement with respect to either or both of the New Products pursuant to Section 13.2.2, Novo will pay with respect to each New Product with respect to which it has extended
this Agreement, minimum royalties as follows for each year of such extension: 
  
 4.2.2.1 On the ****** anniversary of the achievement of the ****** Milestone, ****** for a ****** extension for New ****** Product. 
  
 4.2.2.2 On the ****** anniversary of the achievement of the ****** Milestone, ****** for an additional ******
extension for New ****** Product. 
  
 4.2.2.3 On the
****** anniversary of the achievement of the ****** Milestone, ****** for an additional ****** extension for New ****** Product. 
  
 4.2.2.4 On the ****** anniversary of the achievement of the ****** Milestone, ****** for an additional ****** extension for New ****** Product.

  
 4.2.2.5 On the ****** anniversary of the achievement
of the ****** Milestone, ****** for an additional ****** extension for New ****** Product. 
  
 4.2.2.6 On the ****** anniversary of the achievement of the ****** Milestone, ****** for a ****** extension for New ****** Product. 
  
 4.2.2.7 On the ****** anniversary of the achievement of the ****** Milestone, ****** for an additional ******
extension for ****** Product. 
  
 4.2.2.8 On the ******
anniversary of the achievement of the ****** Milestone, ****** for an additional ****** extension for ****** Product. 
  
 4.2.2.9 On the ****** anniversary of the achievement of the ****** Milestone, ****** for an additional ****** extension for New ****** Product.

  
 4.2.2.10 On the ****** anniversary of the achievement
of the ****** Milestone, ****** for an additional ****** extension for New ****** Product. 
  

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 ****** percent (******%) of the minimum royalty payments made in accordance with this Section ****** with respect
to the New ****** Product shall be creditable against royalties payable under Section ****** and ****** in respect of the New ****** Product, and ****** percent (******%) of the minimum royalty payments made in accordance with this ******
with respect to the New ****** Product shall be creditable against royalties payable under Section ****** and Section ****** in respect of the New ****** Product, in each case, in the same or any subsequent Calendar Quarter; provided,
however, that no royalty payment due to Neose under Section ****** or ****** shall be reduced, as a result of the application of the provisions included in this sentence, by more than ****** percent (******%) of the royalty payment that would
have been payable by Novo under Section ****** or ******, as the case may be, without the application of this sentence. 
  
 4.3 Competitive Product(s). If a Competitive Product (as defined below in this Section 4.3) reaches a ****** equal to or greater than ******
percent (******%) of the ****** for the New ****** Product or the New ****** Product marketed by Novo, then the royalties otherwise payable in accordance with Section 4.1 with respect to such New Product, and the minimum royalties otherwise
payable in accordance with Section 4.2, with respect to such New Product shall be reduced by the applicable percentage set forth below: 
  

			
	             ****** of Competitive Product            

	 	 Reduction of Royalty Rate Otherwise Payable

	 More than ******
	 	 
		
	 More than ******
	 	 
		
	 More than ******
	 	 
		
	 More than ******
	 	 

  
 For purposes of this Section
4.3, “Competitive Product” means any product marketed by a Third Party that is not a Sublicensee of Novo, which product is a ****** or a ******, as the case may be with a ****** substantially equivalent to or better than the ****** of
the New Product marketed by Novo. 
  
 4.4 Royalty Payments.
Novo shall make royalty payments to Neose on a quarterly basis, within forty-five (45) days after the end of each Calendar Quarter during the Term. Royalty payments due under Section 4.1 shall commence, with respect to each New Product in
each country, on the date of first Commercial Sale in such country. 
  
 4.5 Currency Conversion. If any currency conversion from a foreign currency into United States Dollars shall be required in connection with the calculation of Net Sales, such conversion shall be made using the average exchange rate
for the applicable Calendar Quarter, as reported by the Wall Street Journal. 
  

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 4.6 Payment Reports. Within forty-five (45) days after the close of each Calendar Quarter during
the Term, Novo shall furnish to Neose a written report showing in reasonably specific detail, on a country-by-country basis for each New Product: 
  
 4.6.1 All Net Sales of the New Product during such quarter expressed in United States Dollars. 
  
 4.6.2 The exchange rates used in determining Net Sales of the New
Product in United States Dollars in accordance with Section 4.5. 
  
 4.6.3 Royalties payable in United States Dollars based upon such Net Sales of the New Product during such quarter. 
  
 4.7 Payment Method. Novo shall make all payments under this Agreement in United States Dollars by bank wire transfer in immediately available funds
to Hudson United Bank, ABA # ******, Acct Name: Neose Technologies, Inc., Acct # ******, or to such other account as Neose shall designate to Novo in writing before such payment is due. 
  
 4.8 Records; Audits. Novo shall, and shall cause its Affiliates and Sublicensees, if any, to keep complete, true, and
accurate books of account and records in connection with the production and Commercial Sales of New Products in sufficient detail to permit accurate determination of all figures necessary for verification of payments required to be made by Novo
under this Agreement. Novo shall, and shall cause its Affiliates and Sublicensees, if any, to, maintain such records for at least ****** years following the end of the quarter to which such books and records pertain. Neose shall have the right, at
its expense, through a certified public accounting firm reasonably acceptable to Novo, to examine the records required to be maintained by Novo, its Affiliates and Sublicensees under this Section 4.8 upon reasonable notice and during regular
business hours prior to the termination or expiration of this Agreement and for ****** years thereafter for the purpose of verifying the reports delivered pursuant to Section 4.6, provided that such examination shall not take place more often
than once a year. Novo may require such certified public accounting firm to sign a confidential disclosure agreement prior to permitting such certified public accounting firm to have access to its books, records or facilities. Such accounting firm
shall report to Neose only whether or not the reports submitted by Novo are accurate for the period covered and the details concerning any identified discrepancies. If any such audit uncovers an underpayment, Novo shall promptly pay to Neose the
amount of such underpayment. If any such underpayment exceeds five percent (5%) of the amount due, Novo shall pay the entire expense of such audit within twenty (20) days after invoice. 
  
 4.9 Taxes. Novo may deduct the amount of any taxes imposed on Neose which are required to be withheld or collected by
Novo or its Sublicensees under the laws of any country from amounts owing to Neose hereunder to the extent Novo, its Affiliates or Sublicensees pay such withholding taxes to the appropriate governmental authority on behalf of Neose and promptly
deliver to Neose a receipt or other proof of payment of such taxes. 
  

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 5. INTELLECTUAL PROPERTY GRANTS AND RIGHT OF NEGOTIATION 
  
 5.1 Neose Technology. Subject to the terms and conditions of this
Agreement, Neose hereby grants, and agrees to grant, to Novo, as of the Effective Date, the following rights and licenses: 
  
 5.1.1 Exclusive License. As of the Effective Date, Neose hereby grants, and agrees to grant, to Novo an exclusive (even as to Neose),
royalty-bearing license under the Neose Technology in the Field of Use during the Term, (i) to conduct research, sample, develop (including clinical development), manufacture, make, use, market, promote, sell, offer for sale, have sold, distribute,
import and export New Products in the Territory, and (ii) to use the Reagents in the Territory solely for the purpose of making New Products. Such license does not permit Novo (x) to practice or use the Neose Technology outside the Field of Use or
(y) to sublicense any of its rights without the prior written approval of Neose, except as provided in Section 5.1.2. 
  
 5.1.2 Limited Sublicense Rights. Novo shall be entitled to grant full sublicenses to its Affiliates and limited sublicenses to its distribution,
marketing and/or sales partners, in each case, in compliance with the provisions of this Section 5.1.2 and Section 5.1.3. In any sublicense granted under this Section 5.1.2 to a Third Party that is not an Affiliate of Novo, Novo
may grant the Sublicensee only the following rights: to market, promote, sell, offer for sale, have sold, distribute, import and export New Products for Novo. Novo shall not be entitled to disclose any Confidential Information of Neose to a
non-Affiliate Sublicensee under a sublicense permitted to be granted under this Section 5.1.2. Novo shall include in each sublicense granted under this Section 5.1.2 all of the terms and conditions necessary to ensure Novo’s
compliance with this Agreement, and the provisions of Section 5.1.4 shall apply to each sublicense granted under this Section 5.1.2. 
  
 5.1.3 Required Agreement for Certain Proposed Sublicensees. Prior to entering into discussions with any proposed sublicensee, Novo shall identify
the proposed sublicensee to Neose. If the proposed sublicensee is not an Affiliate of Novo, Novo shall obtain the approval of Neose prior to entering into such discussions and shall obtain the proposed sublicensee’s execution and delivery to
Neose of a non-disclosure and non-use agreement substantially in the form attached hereto as Exhibit 5.1.3. If the proposed sublicensee is an Affiliate of Novo, Novo may enter into the proposed sublicense without obtaining the approval of
Neose if: (i) the sublicense between Novo and the Sublicensee/Affiliate provides that Neose is a third-party beneficiary of the Sublicense, and (ii) Neose receives an original fully executed copy of the sublicense between Novo and the
Sublicensee/Affiliate within five (5) business days after its execution. 
  
 5.1.4 Liability. Novo shall remain primarily liable to Neose for the performance by each Affiliate and Sublicensee in accordance with the terms and conditions of this Agreement, and each sublicense shall
terminate upon the termination of this Agreement or any breach by the Sublicensee of the Required Agreement between Neose and the Sublicensee, if any. 
  
 5.1.5 Reservation of Rights. Neose hereby reserves to itself all right, title and interest in and to the Neose Technology not expressly granted in
Section 5.1. Without 
  

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 limiting the foregoing, in no event shall this Agreement be construed to prohibit Neose from engaging in any of the
following activities: (a) practicing the processes, methods and Know-How of the Neose Technology outside of the Field of Use including, without limitation, proteins that may be considered competitive with any of the New Products, subject, however,
to Novo’s rights with respect to Product-Candidates under Section 5.3; (b) developing, making, using or selling proteins or Reagents, whether in conjunction with the Neose Technology or otherwise, outside of the Field of Use; or (c) entering
into and performing agreements with Third Parties regarding any of the foregoing including, without limitation, research agreements, development agreements and licensing agreements. 
  
 5.2 Novo Technology. Subject to the terms and conditions of this Agreement, and solely to the extent necessary to
enable Neose to carry out its obligations under the Work Plan, Novo hereby grants to Neose, for the term of the Work Plan, a non-exclusive, royalty-free, license under the Novo Technology to use such Novo Technology for the sole purpose of carrying
out its obligations under the Work Plan. Novo shall retain at all times all of its rights, title and interest to the Novo Technology. 
  
 5.3 Option and Right of First Negotiation 
  
 5.3.1 Option. Neose hereby grants to Novo an option to negotiate a worldwide license under the Neose Technology to conduct research, sample,
develop (including clinical development), manufacture, make, use, market, promote, sell, offer for sale, have sold, distribute, import and export each and every Product Candidate. The option granted under this Section 5.3.1 shall be
exercisable by Novo, from time to time during the Term with respect to each Product-Candidate, within fifteen (15) days after Novo receives notice of the Product-Candidate from Neose. 
  
 5.3.2 Negotiations. If Novo duly exercises its option under Section 5.3.1 with respect to a
Product-Candidate, the Parties shall enter into negotiations to consummate an agreement, which would grant to Novo the license described in Section 5.3.1 with respect to such Product-Candidate, upon commercially reasonable terms, to be
negotiated promptly, diligently and in good faith by the Parties. If the Parties shall not have entered into such a license within forty-five (45) days after Novo’s exercise of its option with respect to such Product-Candidate, Neose shall be
free to proceed with the development and/or commercialization of the Product-Candidate, whether alone or with a Third Party or Third Parties, without any further obligation to Novo with respect to such Product-Candidate, except as provided in
Section 5.3.3. 
  
 5.3.3 Right of First
Negotiation. During the Term, Neose shall not enter into an agreement with a Third Party relating to the use of the Neose Technology for the further development and commercialization of a Product-Candidate without first allowing Novo to enter
into an agreement with respect to such Product-Candidate upon substantially the same terms. If Neose shall not have already offered (and Novo shall not have already refused) substantially the same terms to Novo under Section 5.3.2, Neose shall
provide notice to Novo of the proposed terms and conditions of any such agreement, and Novo may exercise its right of first refusal under this Section 5.3.3 by notice to Neose within fifteen (15) days after receiving the proposed terms and
conditions from Neose. If Novo does not exercise its right of first refusal with respect to the terms proposed by Neose, or exercises its right of first refusal but does not enter into an agreement with Neose upon substantially the proposed terms
within thirty (30) days 
  

 - 17 - 

 after receipt thereof, Neose shall be free to proceed with the further development and/or commercialization of such
Product-Candidate with a Third Party or Third Parties, upon terms no more favorable to the Third Party or Third Parties than those offered to Novo, without any further obligation to Novo with respect to such Product-Candidate. 
  
 5.4 No Other Right or Licenses. Except for the rights and licenses
expressly granted in this Agreement, nothing in this Agreement shall be deemed to grant to any Party any other rights or licenses, including, without limitation, any implied licenses. 
  
 6. OWNERSHIP OF INTELLECTUAL PROPERTY 
  
 6.1 No Transfer of Title. All Ownership Rights in and to the Neose Technology and the Reagents shall remain at all
times with Neose. All Ownership Rights in the Novo Materials, any New Products, and the Novo Technology shall remain at all times with Novo, subject to Novo’s obligation to assign certain Ownership Rights to Neose under Section 6.3.

  
 6.2 Improvements 
  
 6.2.1 Neose Improvements. Any and all Neose Improvements shall be
owned by Neose and shall be deemed to be part of the Neose Technology for all purposes, including, without limitation, the license granted in Section 5.1. Except as provided in Section 6.4, any and all Improvements made, conceived, or
reduced to practice solely by Neose shall be owned solely by Neose. 
  
 6.2.2 Novo Improvements. Except as otherwise provided in Section 6.3, any and all Novo Improvements shall be owned by Novo for all purposes. Except as set forth in Section 6.3, any and all
Improvements made, conceived, or reduced to practice, solely by Novo shall be owned solely by Novo. 
  
 6.2.3 Joint Improvements. Each of Neose and Novo shall own a one-half undivided interest in any and all Joint Improvements. Neither Party shall be
permitted to license or sublicense its one-half undivided interest in any Joint Improvement(s) to a Third Party that is not its Affiliate for use in connection with any ******, except with the prior written approval of the other Party. 

 
 6.2.4 Other Improvements. If any Improvements, other than Neose
Improvements, Novo Improvements and Joint Improvements, are made, conceived or reduced to practice jointly by Neose and Novo under this Agreement, each Party shall own a one-half undivided interest in and to any and all such Improvements and the
Parties shall not have any restriction with respect to the use thereof or any requirement to report or account to the other Party with respect to any such use, unless and except to the extent that the Parties may agree otherwise in writing.

  
 6.3 Assignment by Novo. 
  
 6.3.1 Neose Improvements. To the extent that Novo may retain any
Ownership Rights in any Neose Improvements during the Term, Novo hereby irrevocably assigns and transfers, and agrees to assign and transfer, to Neose any and all such Ownership Rights, in 
  

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 perpetuity or for the longest period otherwise permitted by law, without the necessity of further consideration, and
Neose shall be entitled to receive and hold in its own name all such Ownership Rights, subject to Neose’s obligations to assign certain rights to Novo under Section 6.4.  
  
 6.3.2 Novo Improvements, Joint Improvements and New Products. If and
when Novo terminates the development of either the New ****** Product or the New ****** Product during the Term, or if this Agreement is terminated by Neose pursuant to Section 12.2.3 or by Novo pursuant to Section 12.2.3.3, Novo
hereby irrevocably assigns and transfers, and agrees to assign and transfer to Neose, in perpetuity or for the longest period otherwise permitted by law, without the necessity of further consideration, and Neose shall be entitled to receive and hold
in its own name, all of Novo’s Ownership Rights in and to either the New ****** Product or the New ****** Product, or both, as the case may be, including, without limitation, Novo Improvements and Joint Improvements, provided that Neose shall
be entitled to receive and hold Novo’s Ownership Rights in and to Novo Improvements and Joint Improvements only to the extent reasonably required and reasonably necessary to produce either the New ****** Product or the New ****** Product, or
both, as the case may be, in an effective and efficient manner. With respect to any Ownership Rights and licenses that Novo is required to assign and transfer to Neose under this Section 6.3.2, at the request of Neose, and at Neose’s
expense, either before or after termination of the Term, Novo shall assist Neose in acquiring and maintaining patent, copyright, trade secret and trademark protection upon, and confirming Neose’s title in and to, any such respective Ownership
Rights, and Novo shall provide Neose appropriate documentation evidencing the licenses to which Neose is entitled. Novo’s assistance shall include, but shall not be limited to, signing all applications, and any other documents and instruments
for patent, copyright and any other proprietary rights, providing executed license documents, cooperating in legal proceedings, and taking any other actions considered necessary or desirable by Neose. For the purpose of facilitating the above
assignments, Novo agrees that any and all employees and contractors employed or engaged by Novo and providing any service in connection with the Project, prior to providing such service, shall have agreed in writing to covenants consistent with
Novo’s covenants set forth in this Section 6.3. Novo shall receive a royalty from Neose on net sales of products generated from the use of the Novo Improvements, at commercially reasonable rates and upon commercially reasonable terms, to
be negotiated in good faith by the Parties based upon then-current benchmark transactions in the industry. 
  
 6.4 Assignment by Neose. To the extent that Neose may retain any Ownership Rights in any Novo Improvements during the Term, Neose hereby
irrevocably assigns and transfers, and agrees to assign and transfer, to Novo any and all such Ownership Rights, in perpetuity or for the longest period otherwise permitted by law, without the necessity of further consideration, and Novo shall be
entitled to receive and hold in its own name all such Ownership Rights, subject to Novo’s obligations to assign or license certain rights to Neose under Section 6.3. With respect to any Ownership Rights that Neose is required to
assign and transfer to Novo under this Section 6.4, at the request of Novo, and at Novo’s expense, either before or after the Term, Neose shall assist Novo in acquiring and maintaining patent, copyright, trade secret and trademark
protection upon, and confirming Novo’s title in and to, any such respective Ownership Rights. Neose’s assistance shall include, but shall not be limited to, signing all applications, and any other documents and instruments for patent,
copyright and any other proprietary rights, 
  

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 cooperating in legal proceedings, and taking any other actions considered necessary or desirable by Novo. For the purpose
of facilitating the above assignments, Neose agrees that any and all employees and contractors employed or engaged by Neose and providing any service in connection with the Project, prior to providing such service, shall have agreed in writing to
covenants consistent with Neose’s covenants set forth in this Section 6.4. 
  
 6.5 Prosecution and Maintenance of Patent Rights 
  
 6.5.1 Solely Owned Patent Rights. Each Party shall, in its sole discretion, prepare, file, prosecute and maintain all patent applications and patents covering its Patent Rights and Improvements that the Party
solely owns pursuant to Section 6. Neose shall use reasonable commercial efforts to provide to Novo for review and comment, at least ten (10) days prior to filing, all patent claims relating specifically to the New ****** Product or the New
****** Product, or both, to be filed by Neose, and Neose shall give due consideration to all comments thereon that are made by Novo within the period ending two days before the proposed filing date. 
  
 6.5.2 Patent Rights with Respect to Joint Improvements. With respect
to Joint Improvements, the Parties shall meet to determine whether patent protection is appropriate and, if so, in which countries, if any, patent applications claiming such joint inventions and discoveries should be filed. Novo shall file,
prosecute, and maintain, at its expense, such joint patent applications. Novo may at any time, in its sole discretion, discontinue the preparation, prosecution or maintenance of such joint patent applications, in which case Novo will give Neose
sufficient notice to enable Neose to, and Neose may, file, prosecute and maintain such applications.  
  
 6.6 Enforcement of Ownership Rights 
  
 6.6.1 Reports of Infringement. Novo shall promptly report in writing to Neose during the Term any infringement or misappropriation or suspected
infringement or misappropriation of any Neose Technology of which Novo becomes aware and shall provide Neose with its full cooperation in the protection and enforcement of the Neose Technology and all available evidence supporting said infringement,
misappropriation, suspected infringement or unauthorized use or misappropriation. Neose shall reimburse Novo for its reasonable, documented costs of such cooperation, unless such infringement or misappropriation is by an Affiliate or Sublicensee of
Novo. 
  
 6.6.2 Right to Institute Suit. Neose shall have
the sole right to initiate an infringement or other appropriate suit against any Third Party who at any time has infringed or is suspected of infringing or misappropriating, the Neose Technology. Prior to initiating any such suit, the Designated
Representatives shall consult with each other on an expedited basis, and Neose shall give due consideration to any reasonable requests Novo may make relating to the advisability of bringing the suit. Neose shall not enter into any settlement,
consent judgment or other voluntary final disposition of such suit that would adversely affect Novo’s rights under this Agreement without Novo’s prior written consent, which consent shall not be unreasonably withheld. In the event that
Neose recovers any sums in such suit by way of damages or in settlement thereof, Neose shall be entitled to retain the same. 
  

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 6.6.3 Continued Infringement. If Neose fails to either bring suit against or enter into
negotiations for settlement with such Third Party within six (6) months after receipt of notice of such infringement and Novo is of the opinion that the alleged infringement or misappropriation of Neose Technology is occurring in the Field of Use
then, upon Novo’s written request, the Parties shall seek the opinion of patent counsel acceptable to both Parties as to whether there has been or continues to be a misappropriation or infringement of the Neose Technology in the Field of Use by
such Third Party. If such patent counsel concurs with Novo’s opinion, Novo shall have the right, but not the obligation, to bring suit against such Third Party under the Neose Technology and to join Neose as a party plaintiff. Neose will
cooperate with Novo in any such suit brought against a Third Party and shall have the right to consult with Novo and to participate in and be represented by counsel in such suit at its own expense. In the event that Novo recovers any sums in such
suit by way of damages or in settlement thereof, such sums shall be used first to reimburse each of Novo and Neose for their documented, out-of-pocket legal expenses, with Novo retaining any remaining amounts. 
  
 6.7 Novo Trademarks. Subject to its assignment obligations under
Section 6.3.2, Novo shall select and own the trademarks for marketing the New Products in the Territory. All expenses for (i) registration of such trademarks, and (ii) bringing, maintaining and prosecuting any action to protect or defend such
trademarks, shall be borne by Novo, and Novo shall retain all recoveries therefrom. 
  
 7. BLOCKING PATENTS 
  
 7.1 Mutual Information. Each Party shall immediately notify the other if a claim or other proceedings are brought against either Party alleging that the use of the Neose Technology in making, using or selling the New Product
infringes upon the Patent Rights of a Third Party. 
  
 7.2
Defense of Third Party Action. If claims or proceedings are brought against Novo by a Third Party alleging that the use of the Neose Technology to produce a New Product infringes upon the Patent Rights of a Third Party, the Designated
Representatives shall consult on an expedited basis, and Neose shall give due consideration to any reasonable request of Novo relating to the proposed defense or settlement of such claims or proceedings. Subject to Section 6.4, the final
decision whether or not and, as the case may be, how to defend or settle such claims or proceedings shall be with Neose. Neose shall immediately notify Novo of such decision sufficiently in advance of any deadlines by which formal responses are due
in any such proceedings to enable Novo to undertake its own defense and Novo shall have the right to join any such proceedings as a party thereto at its own expense by counsel of its own choice. Each Party shall provide the other with such
assistance as is reasonably necessary and shall cooperate in the defense of any such action or proceeding. Neose shall not enter into any settlement, consent judgment, or other voluntary final disposition of such suit that would adversely affect
Novo’s rights under this Agreement or which would result in Novo being liable for damages, without Novo’s prior written consent, which consent shall not be unreasonably withheld. 
  
 7.3 Declaratory Judgment Action. Neose shall have the right, but not
the obligation, to file any declaratory judgment action in any court of competent jurisdiction as to questions of validity or infringement of any Third Party patent relating to the use of the Neose Technology. 
  

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 7.3.1 Cooperation. The Parties shall closely cooperate in any such declaratory judgment action.
In conducting such action, the Parties shall render each other all reasonable assistance, free of charge. The final strategy in such action shall be determined by Neose and Neose’s legal counsel in coordination with Novo and any additional
legal counsel of Novo. 
  
 7.3.2 Costs. Subject to Article
11 hereof, each Party shall bear its own costs and expenses incurred in connection with actions pursuant to Sections 7.2 and 7.3. 
  
 7.4 Third-Party Licenses 
  
 7.4.1 Novo Third-Party Licenses. In the event that Novo is of the opinion, at any time during the Term, that a license under any Blocking Patent
is necessary or advisable for purposes of enabling Novo to exercise its license rights under Section 5.1.1, it shall notify Neose. The Parties shall then seek an opinion of patent counsel acceptable to both Parties. If such patent counsel
concurs with Novo’s opinion, Novo and Neose shall co-operate to obtain such a license for the benefit of Novo and, as the case may be, also for Neose, in accordance with the following provisions: 
  
 7.4.1.1 Neose shall be primarily responsible for obtaining any such
Third Party license at its own expense. The matter shall be deemed resolved if Neose is granted a license, ******, under the relevant Blocking Patent that would make the continued exercise of the rights granted to Novo by Neose hereunder
non-infringing with respect to ******. ****** shall be solely responsible for ****** under such license. 
  
 7.4.1.2 However, in the event that Neose is unable to resolve the matter in accordance with Section 7.4.1.1 within one hundred twenty (120)
days from receipt of notice from Novo upon terms that are commercially reasonable to Neose at Neose’s discretion, then Novo shall be entitled to negotiate a license in favor of Novo under such Blocking Patents; provided that to the extent that
Novo must ****** under such license, Novo may ****** against any payments owed under Sections 4.1 or 4.2, provided that no payment owed under Section 4.1 or 4.2 shall be ****** more than ****** as a result of the operation of this
Section 7.4.1.2. 
  
 7.4.1.3 In relation to the
negotiation and contracting of any such Blocking Patent license, the provisions of this Section 7.4 shall prevail over the provisions of Sections 7.2 and 7.3. 
  

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 8. SUPPLY AGREEMENT 
  
 No later than ninety (90) days after Novo accepts the first batch of Reagents, the Parties will execute and deliver the
Supply Agreement under which Neose will be a supplier to Novo of the Reagents needed to produce New Products in the Field of Use. Pricing for Reagents will be based on Neose’s ******. The Parties acknowledge and agree that Novo plans to have
two production sites for the supply of Reagents and that the costs of technology transfer to Novo or any approved Sublicenses will be borne by Novo. 
  
 9. CONFIDENTIALITY 
  
 9.1 Confidential Information. With respect to any and all Confidential Information received by one Party under this Agreement and/or during the
course of the Project, (the “Recipient”) from the other Party (the “Disclosing Party”) at any time and from time to time prior to the Effective Date or during the Term, the Recipient for a period of five (5) years
from the expiration or earlier termination of this Agreement: (a) shall maintain the secrecy of, and hold in strict confidence, the Confidential Information received hereunder; (b) shall not use such Confidential Information for any other purpose
other than in furtherance of this Agreement; and (c) shall not, without express written authorization from the Disclosing Party, use, disclose or grant the use of such Confidential Information to any other Persons except to those of the
Recipient’s directors, officers, employees, and advisors to whom such disclosure is reasonably necessary in furtherance of this Agreement and each of whom is otherwise bound to Recipient by contract or legal or fiduciary obligation at the time
of such disclosure to maintain the secrecy of, and hold in confidence, such Confidential Information. The Recipient shall notify the Disclosing Party promptly upon discovery of any unauthorized use or disclosure of the Disclosing Party’s
Confidential Information. 
  
 9.2 Permitted Disclosures.
The obligations set forth in Section 9.1 shall not apply to the extent that the Recipient: (a) is required to disclose information by law, order or regulation of a governmental agency or a court of competent jurisdiction, provided that the
Recipient shall provide written notice thereof and sufficient opportunity to the Disclosing Party to object to any such disclosure or to request confidential treatment thereof; or (b) can demonstrate that: (i) the information was public knowledge or
generally known by publication in scientific or other journals or other public media at the time of such disclosure to the Recipient or thereafter became public knowledge or generally known other than as a result of acts directly or indirectly
attributable to the Recipient in violation hereof; (ii) the information was rightfully known by the Recipient (as shown by its written records) prior to the date of disclosure to the Recipient by the Disclosing Party under this Agreement; (iii) the
information was disclosed to the Recipient on an unrestricted basis by a Third Party not under a duty of confidentiality to the Disclosing Party, or (iv) the information was independently developed by Recipient (as shown by its written records)
without any use of or access to information of the Disclosing Party. In addition, provided that Neose maintains the confidentiality of Novo’s name, with the prior approval of Novo, which approval will not be unreasonably withheld, Neose will
have the right to use data about Novo Materials and New Products (i) to support a patent application by Neose, and (ii) for promotional purposes, subject to compliance with any publication plan for development of the New Products that shall have
been approved by the Steering Committee. 
  

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 9.3 Enforcement. Both Parties agree that it would be impossible or inadequate to measure and
calculate the other Party’s damages from any breach of the covenants set forth in this Agreement. Accordingly, the Disclosing Party agrees that if the Recipient breaches any of such covenants, the Disclosing Party will have available, in
addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement. Both Parties
further agrees that no bond or other security shall be required in obtaining such equitable relief and each Party hereby consents to the issuance of such injunction and to the ordering of specific performance. 
  
 9.4 Publicity. Except as required by law, all publicity, press
releases and other announcements relating to this Agreement or the transactions contemplated hereby, shall be reviewed in advance by, and shall be subject to the reasonable approval of, both Parties. Attached hereto as Exhibit 9.4 is an
approved form of a press release to be issued by Neose upon the execution and delivery of this Agreement. 
  
 10. REPRESENTATIONS AND WARRANTIES 
  
 10.1 Mutual Representations and Warranties. Each Party hereby represents and warrants to the other that: 
  
 10.1.1 The execution, delivery and performance of this Agreement by
it have been duly authorized by all requisite corporate action, and this Agreement has been duly executed and delivered by and on behalf of such Party. 
  
 10.1.2 The execution, delivery and performance by such Party of this Agreement does not (i) conflict with or violate any applicable statute, law,
rule or regulation, (ii) conflict with or violate its charter, bylaws or other organizational document, or (iii) conflict with or constitute a default under any contract or agreement of such Party. 
  
 10.2 Representations and Warranties of Neose. Neose warrants to Novo,
as of the Effective Date, that: 
  
 10.2.1 It is a
corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, with the power and authority to sign, deliver and perform all of its obligations under this Agreement. 
  
 10.2.2 It is the sole and exclusive owner of the Neose Patents, or
otherwise Controls the Neose Patents, and has the full corporate power and authority to grant the licenses granted hereunder. 
  
 10.2.3 To Neose’s knowledge, the use of the Neose Technology pursuant to the terms of this Agreement does not infringe upon the rights of any
Third Party. 
  
 10.2.4 To Neose’s knowledge, there
is no Blocking Patent that, if asserted by Third Parties, would prevent Novo from using the Neose Technology to make New Products hereunder. 
  
 10.2.5 To Neose’s knowledge, no claims or proceedings have been brought by Third Parties alleging the invalidity in whole or in part of any
of the Neose Patents. 
  

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 10.3 Representations and Warranties of Novo. Novo warrants to Neose, as of the Effective Date,
that: 
  
 10.3.1 It is a corporation duly incorporated,
validly existing and in good standing under the laws of the Kingdom of Denmark, with the power and authority to sign, deliver and perform all of its obligations under this Agreement. 
  
 10.3.2 It is the sole and exclusive owner of the Novo Technology, and has the full corporate power and authority to
grant the licenses granted hereunder. 
  
 10.3.3 To
Novo’s knowledge, the use of the Novo Technology pursuant to the terms of this Agreement does not infringe upon the rights of any Third Party. 
  
 10.3.4 To Novo’s knowledge, there is no Blocking Patent that, if asserted by Third Parties, would prevent Neose from using the Novo
Technology to perform its activities under the Work Plan. 
  
 10.3.5 To Novo’s knowledge, no claims or proceedings have been brought by Third Parties alleging the invalidity in whole or in part of any of the Novo Technology. 
  
 10.4 Disclaimer of Warranties. EXCEPT FOR THE WARRANTIES SET FORTH IN SECTION 11.3, EACH PARTY HEREBY
DISCLAIMS ANY AND ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT. 
  
 10.5 Acknowledgment by Novo. Novo acknowledges and hereby agrees that
Neose makes no representations or warranties as to the outcome of the Project, including without limitation whether the application of the Neose Technology will improve the Novo Materials. 
  
 11. INDEMNIFICATIONS AND LIMITED LIABILITY 
  
 11.1 Indemnification by Neose. Neose shall indemnify, defend and hold
harmless Novo and its Affiliates, and each of their respective employees, officers, directors and agents (each, a “Novo Indemnified Party”) from and against any and all claims, suits, losses, obligations, damages, deficiencies,
costs, penalties, liabilities (including strict liabilities), assessments, judgments, amounts paid in settlement, fines, and expenses (including court costs and reasonable fees of attorneys and other professionals) (individually and collectively,
“Losses”) resulting from or arising in connection with (i) the breach by Neose of any of its representations or warranties contained in Section 10, (ii) any claim by a Third Party alleging that the use of the Neose Technology
infringes upon the Patent Rights of such Third Party, and (iii) any activities of Neose under this Agreement. Notwithstanding the foregoing, Neose shall have no obligation to indemnify, defend or hold harmless a Novo Indemnified Party for any Losses
to the extent that such Losses were caused by (x) the negligence or willful misconduct of any of the Novo Indemnified Parties, or (y) a breach by Novo of any of its representations and warranties set forth in Section 10. 
  

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 11.2 Indemnification by Novo. Novo shall indemnify, defend and hold harmless Neose and its
Affiliates, and each of their respective employees, officers, directors and agents (each, a “Neose Indemnified Party”) from and against any and all Losses resulting from or arising in connection with (i) the breach by Novo of any of
its representations and warranties set forth in Section 10, (ii) the failure of any Affiliate to comply with any obligation of Novo applicable to the Affiliate under this Agreement, (iii) the failure of any Sublicensee to comply with any
obligation under a sublicense granted by Novo hereunder, (iv) the promotion, distribution, use, testing, marketing, sale, or other disposition of any New Product, (v) any claim by a Third Party alleging that the use of the Novo Technology or the
manufacture, sale or use of New Products infringes upon the Patent Rights of such Third Party, except to the extent such claims arise solely as a result of the use of Neose Technology, and (vi) any activities of Novo under this Agreement.
Notwithstanding the foregoing, Novo shall have no obligation to indemnify, defend or hold harmless a Neose Indemnified Party for any Losses to the extent that such Losses were caused by (x) the negligence or willful misconduct of Neose, its
Affiliates, sublicensees, or any of their respective employees, officers, directors, or agents, or (y) a breach by Neose of any of its representations and warranties set forth in Section 10. 
  
 11.3 Indemnification Procedure. Each Party shall provide prompt
written notice to the other of any actual or threatened Loss or claim therefor of which the other becomes aware; provided that the failure to provide prompt written notice shall only be a bar to recovering Losses to the extent that a Party was
prejudiced by such failure. In the event of any such actual or threatened Loss or claim therefor, each Party shall provide the other information and assistance as the other shall reasonably request for purposes of defense and each Party shall
receive from the other all necessary and reasonable cooperation in such defense including, but not limited to, the services of employees of the other Party who are familiar with the transactions or occurrences out of which any such Loss may have
arisen. Each Party shall have the right to participate in and with respect to the defense of any Loss or Losses with counsel of its choosing whose fees shall be borne by the Party with liability for indemnification under Sections 11.1 or
11.2, as the case may be, and no Party shall have the right to settle any claim or agree to the entry of any judgment or other relief without the prior consent of the other Party, which consent shall not be withheld unreasonably. 
  
 11.4 Consequential Damages. NEITHER PARTY SHALL HAVE ANY LIABILITY TO
THE OTHER PARTY FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR INCIDENTAL DAMAGES SUFFERED BY SUCH OTHER PARTY AND ARISING OUT OF OR RELATED TO THIS AGREEMENT, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE),
INCLUDING, WITHOUT LIMITATION, LOST PROFITS, AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  
 11.5 Insurance. During the term of the Supply Agreement, Neose agrees to obtain and maintain commercial general liability insurance with reputable
and financially secure insurance carriers to cover the use of the Neose Technology in New Products, with limits of not less than ****** per occurrence and ****** in the aggregate. Novo agrees to maintain during the Term commercial general liability
insurance with limits of not less than ****** per occurrence and ****** in the aggregate to cover its indemnification obligations under Section 11.2. In addition, Novo agrees to maintain during the Term clinical trials insurance and product
liability insurance with limits reasonable to cover its indemnification obligations under Section 11.2. All insurance shall be procured with reputable and financially secure insurance carriers. 
  

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 12. TERM AND TERMINATION 
  
 12.1 Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless
sooner terminated as to both New Products in accordance with Section 12.2, shall terminate on the expiration of the expiration of the last to expire patent included in the Neose Technology incorporating a Valid Patent Claim that would be
infringed by making, using, selling, offering to sell, importing or exporting any of the New Products, after which Novo shall have a perpetual, fully paid up, royalty free, exclusive license (even as to Neose) to commercialize New Products. The
Parties acknowledge and agree that this Agreement may be terminated on a New Product-by-New Product basis, in accordance with Section 12.2.2, and that notwithstanding any such termination with respect to only one New Product, the Term shall
continue with respect to the other New Product. 
  
 12.2
Termination 
  
 12.2.1 Termination of Project Plan.
If the Project is terminated by mutual agreement, this Agreement will automatically terminate. 
  
 12.2.2 No Commercial Sale 
  
 12.2.2.1 New ****** Product. If there has not been a Commercial Sale of the New ****** Product before the ****** anniversary of the ******
Milestone (as defined in Section 4.2.2), Neose shall be entitled to terminate this Agreement with respect to the New ****** Product, effective upon thirty (30) days written notice to Novo, provided that Novo shall have the right to extend
this Agreement with respect to the New ****** Product for consecutive ****** periods by timely payment of the optional minimum royalties set forth in Sections 4.2.2.1 through 4.2.2.5, up to a maximum extension of ****** years. Neose shall not
have the right to terminate this Agreement under this Section 12.2.2.1 at any time when Novo has extended this Agreement in accordance with Section 4.2.2 with respect to the New ****** Product and is in full compliance with its
obligations with respect thereto. 
  
 12.2.2.2 New ******
Product. If there has not been a Commercial Sale of the New ****** Product before the ****** anniversary of the ****** Milestone (as defined in Section 4.2.2), Neose shall be entitled to terminate this Agreement with respect to the New
****** Product, effective upon thirty (30) days written notice to Novo, provided that Novo shall have the right to extend this Agreement with respect to the New ****** Product for consecutive ****** periods by timely payment of the minimum royalty
amounts set forth in Sections 4.2.2.6 through 4.2.2.10, up to a maximum extension of ****** years. Neose shall not have the right to terminate this Agreement under this Section 12.2.2.2 at any time when Novo has extended this Agreement
in accordance with Section 4.2.2 with respect to the New ****** Product and is in full compliance with its obligations with respect thereto. 
  
 12.2.3 Termination for Cause. 
  
 12.2.3.1 Breach. A Party shall have the right to terminate this Agreement at any time for a material breach of this Agreement by the other Party
upon 
  

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 written notice by the non-breaching Party to the other Party describing such breach in reasonable detail and stating the
non-breaching Party’s intention to terminate this Agreement, provided that the other Party shall have a period of sixty (60) days from the date of such notice to cure the breach, or, if such breach is not susceptible of being cured within such
sixty (60) day period, and the breaching Party utilizes diligent good faith efforts to cure such breach, then such period shall be extended to one hundred twenty (120) days. If such breach is cured within the applicable period, the termination
notice shall become ineffective. Otherwise, the termination shall become effective upon the expiration without cure of the applicable period. 
  
 12.2.3.2 Bankruptcy. A Party shall have the right to terminate this Agreement at any time upon the filing or institution of bankruptcy,
reorganization, liquidation or receivership proceedings, or upon an assignment of a substantial portion of the assets of the benefit of creditors by the other Party, or in the event a receiver or custodian is appointed for such Party’s
business, or if a substantial portion of such Party’s business is subject to attachment or similar process; provided, however, that in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective if the
proceeding is not dismissed within sixty (60) days after the filing thereof. 
  
 12.2.3.3 Termination by Novo. Novo may terminate this Agreement at any time without cause upon ninety (90) days prior written notice to Neose of such termination, provided that Novo shall pay to Neose one
hundred percent (100%) of all documented Neose Project-Related Costs and any other costs incurred or accrued by Neose prior to the effective date of such termination for the conduct of the Work Plan through the date of termination. 
  
 12.3 Effect of Termination or Expiration 
  
 12.3.1 Prior Obligations. Termination or expiration of this
Agreement shall not relieve the Parties of any obligation arising prior to the effective date of such termination or expiration and shall not constitute a waiver of any right of the Parties under this Agreement as a result of breach or default.

  
 12.3.2 Confidential Information. Upon the termination
or expiration of this Agreement, each Recipient shall, as the Disclosing Party may direct, destroy or return to the Disclosing Party promptly all tangible materials provided to Recipient by the Disclosing Party that embody the Disclosing
Party’s Confidential Information and shall erase or delete all of the Disclosing Party’s Confidential Information embodied in any magnetic, optical or intangible medium or stored or maintained on any information storage and/or retrieval
device, and deliver to the Disclosing Party a certification of such destruction, return, erasure or deletion signed by an officer of the Disclosing Party. 
  
 12.3.3 Survival. No termination under this Agreement shall constitute a waiver of any rights or causes of action that either Party may have for
any acts or omissions or breach under this Agreement by the other Party prior to the termination date. The following Sections of this Agreement shall survive the expiration or any termination of this Agreement in accordance with their respective
meanings: Sections 4.8, 5.1.2, 6, 9, 11, 12, 13, 15.2, 15.4, 15.5, 15.7, 15.8, 15.9, 15.10, 15.13 and any other provision required to interpret this Agreement. 
  

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 12.3.4 Effect on Sublicensees. Any sublicenses granted by Novo hereunder shall automatically
terminate or expire at the same time this Agreement terminates or expires. 
  
 13. DISPUTE RESOLUTION 
  
 13.1 By Senior Officers. Except as otherwise provided in Section 9.3, all disputes arising under this Agreement will first be submitted in writing for dispute resolution to the Designated Representative of each Party. If the
dispute is not resolved within forty-five (45) days, the dispute shall be referred to arbitration in accordance with Section 13.2. 
  
 13.2 Arbitration 
  
 13.2.1 Rules and Location. Except with respect to disputes arising under Section 9.3, all disputes arising between the Parties under this
Agreement that have not been resolved in accordance with Section 13.1 shall be settled by arbitration conducted in accordance with the procedures of the International Chamber of Commerce (“ICC”). The version of the arbitration rules
which are in force when the dispute occurs shall be decisive. The arbitration tribunal shall have one arbitrator, who shall be selected from the panels of the ICC by agreement of the Parties, provided, however that if the parties cannot agree on the
arbitrator, the arbitration tribunal shall consist of three arbitrators, one selected by Neose, one selected by Novo, and the third selected by the other two arbitrators. The arbitration tribunal may also decide on the validity of the arbitration
agreement. The place of the arbitration tribunal shall be Philadelphia, Pennsylvania. The arbitration proceedings, orders and writs shall be in the English language. 
  
 13.2.2 Judgments. Any award rendered by the arbitrators shall be binding upon the Parties hereto and shall be final.
Judgment upon the award may be entered in any court of record of competent jurisdiction. 
  
 13.2.3 Expenses. Each Party shall pay its own expenses of arbitration and the expenses of the arbitrators shall be equally shared unless otherwise ordered by the arbitrators. 
  
 14. GOVERNMENT APPROVAL 
  
 14.1 HSR Filing. Novo, in consultation with Neose, shall make the
determination as to whether filing under the HSR Act is required. If any HSR filing is required, to the extent necessary, each Party shall file, as soon as practicable after the date this Agreement is executed, with the Federal Trade Commission (the
“FTC”) and the Antitrust Division of the United States Department of Justice (the “Antitrust Division”) the notification and report form (the “Report”) required under the HSR Act with respect to the
transactions as contemplated hereby and shall reasonably cooperate with the other Party to the extent necessary to assist the other Party in the preparation of its Report and to proceed to obtain necessary approvals under the HSR Act, including but
not limited to the expiration or earlier termination of any and all applicable waiting periods required by the HSR Act. Each Party shall bear its own expenses, including, without limitation, legal fees, incurred in connection with preparing such
filings. 
  

 - 29 - 

 14.2 Obligations. Each Party shall use its good faith efforts to eliminate any concern on the part
of any court or government authority regarding the legality of the proposed transaction, including, if required by federal or state antitrust authorities, promptly taking all steps to secure government antitrust clearance, including, without
limitation, cooperating in good faith with any government investigation including the prompt production of documents and information demanded by a second request for documents and of witnesses if requested. 
  
 14.3 Additional Approvals. Each Party will cooperate and use
respectively all reasonable efforts to make all other registrations, filings and applications, to give all notices and to obtain as soon as practicable all governmental or other consents, transfers, approvals, orders, qualifications authorizations,
permits and waivers, if any, and to do all other things necessary or desirable for the consummation of the transactions as contemplated hereby. Neither Party shall be required, however, to divest or out-license products or assets or materially
change its business if doing so is a condition of obtaining approval under the HSR Act or other governmental approvals of the transactions contemplated by this Agreement. 
  
 14.4 Termination. If a Report is required to be filed under the HSR Act, either Party hereto may terminate this
Agreement by written notice to the other Party, if, within one hundred twenty (120) days after this Agreement is signed by the Parties, approval of the transactions contemplated by this Agreement under the HSR Act has not been obtained or the notice
and waiting period, as may be extended by the FTC, under the HSR Act has not expired without adverse action regarding this Agreement or the transactions contemplated hereby. If this Agreement is terminated pursuant to this Section 14.4, then,
notwithstanding any provision in this Agreement to the contrary, neither Party hereto shall have any further obligation to the other Party with respect to the subject matter of this Agreement. 
  
 15. MISCELLANEOUS 
  
 15.1 Force Majeure. Any delays in or failures of performance by
either Party under this Agreement (other than failure to pay amounts due) shall not be considered a breach of this Agreement if and to the extent caused by occurrences beyond the reasonable control of the Party affected, including but not limited
to: acts of God, earthquake, new regulations or laws of any government, strikes or other concerted acts of workers; fire, floods, explosions; riots; wars; rebellion; and, sabotage, and any time for performances under this Agreement shall be extended
by the time of delay reasonably occasioned by such occurrence. Each Party agrees to notify the other promptly of any factor, occurrence or event coming to its attention that may affect its ability to meet its obligations under this Agreement.

  
 15.2 Notices. Any notice, consent or report (each, a
“Notice”) required or permitted to be given by either Party under this Agreement shall be in writing and shall be either personally delivered or sent by facsimile (confirmed by internationally-recognized express courier), or by
internationally-recognized express courier (such as Federal Express or DHL), to the other Party at its address set forth below, or such new address as may from time to time be supplied under this Agreement by a Party. Except as otherwise set forth
in this Agreement, any Notice shall be effective upon receipt by the addressee. Provided that all postage or delivery charges are prepaid in full by the sender and the Notice has been addressed as set forth in this Agreement: 
  

 - 30 - 

 15.2.2 if such Notice is sent by facsimile (confirmed by internationally recognized express
courier which includes a copy of the report showing the date and time of transmission), then the Notice shall be deemed to be received upon transmission (if received on a business day) or the next business day following transmission; and 

 
 15.2.3 if such Notice is sent by internationally-recognized
express courier, then the Notice shall be deemed to be received two (2) business days after deposit with the courier service. 
  
 If to Neose: 
  
 Neose Technologies, Inc. 
 102 Witmer Road 
 Horsham, PA 19044 
 Attention: General Counsel 
 Fax: 215-315-9100 
  
 If to Novo:

  
 Novo Nordisk A/S 
 Novo Allé 
 2880 Bagsvaerd 
 Denmark 
 Attention: Vice President, Business Development 
 Fax: 011-45-4442-1830 
  
 With a copy to the same address: 
  
 Attention: General Counsel 
 Fax: 011-45-4498-0670 
  
 15.3
Governing Law. This Agreement and any controversy, claim or dispute arising under this Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania, United States of America, without regard to
the conflicts of law principles of any jurisdiction. 
  
 15.4
U.S. Export Laws and Regulations. The Parties hereby acknowledge that their rights and obligations under this Agreement may be subject to the laws and regulations of the United States of America relating to the export of products and technical
information. Without limitation, each Party shall comply, and assist the other Party in complying, with all such laws and regulations. 
  

 - 31 - 

 15.5 Assignment 
  
 15.5.1 Consent of Other Party. Neither Party may assign any of its rights or obligations under the Agreement, in
whole or in part, by operation of law or otherwise, without the prior written consent of the other Party, which consent shall not be unreasonably withheld, provided that either Party may assign (i) any of its rights or obligations under this
Agreement in any country to any of its Affiliates, for so long as they remain Affiliates, and (ii) all of its rights or obligations under this Agreement in connection with the merger or similar reorganization or sale of all or substantially all of
its assets or a sale of that part of its business relating to the subject matter of the Agreement. A Party shall notify the other Party in writing upon making such assignment. 
  
 15.5.2 Certain Assignments by Neose. In the event that Neose assigns all of its rights or obligations under this
Agreement in connection with the merger or similar reorganization or sale of all or substantially all of its assets or a sale of that part of its business relating to the subject matter of this Agreement, Novo may, within the thirty (30)-day period
following receipt of notice from Neose of such assignment, elect to proceed under this Section 15.5.2 with respect to the provision of any reports required under this Agreement and/or other disclosure of Confidential Information by Novo
hereunder. Novo shall make such election by notice in writing addressed to Neose and its successor at the address of Neose set forth in Section 15.2.3 (as amended). From and after an election by Novo under this Section 15.5.2, Novo shall be
entitled to provide reports required under this Agreement, and/or to provide any other Confidential Information hereunder, to an independent certified public auditing firm selected by Neose’s successor and reasonably acceptable to Novo, in lieu
of providing such reports and/or Confidential Information to Neose’s successor. Such auditing firm shall report to Neose’s successor only (i) whether or not the reports submitted by Novo are accurate and conform to any related payments
made to Neose’s successor and (ii) whether or not, in respect of other matters relating to such reports and/or Confidential Information, Novo has complied with its obligations under this Agreement. Novo shall be responsible for and promptly
shall pay all fees and expenses of the auditing firm in connection with its services rendered in accordance with this Section 15.5.2. 
  
 15.5.3 Binding Effect. Any purported assignment in violation of this Section 15.5 shall be null and void. This Agreement shall bind and
inure to the benefit of each Party and its respective permitted successors and assigns. 
  
 15.6 Amendments. No change, modification, extension, termination or waiver of the Agreement, or any of the provisions in this Agreement contained, shall be valid unless made in writing and signed by duly
authorized representatives of the Parties to this Agreement. 
  
 15.7 Independent Contractors. The Parties to this Agreement are acting as independent contractors and shall not be considered partners, joint venturers or agents of the other. Neither Party shall have the right to act on behalf of,
or to bind, the other. 
  
 15.8 Severability. The
provisions of this Agreement are intended to be severable. If any one or more of the provisions of this Agreement is or becomes invalid, is ruled illegal by a court of competent jurisdiction or is deemed unenforceable under the current applicable
law from time to time in effect during the Term, it is the intention of the Parties that the remainder of the Agreement shall not be affected thereby and shall continue to be construed 
  

 - 32 - 

 to the maximum extent permitted by law at such time. It is further the intention of the Parties that in lieu of each such
provision which is invalid, illegal, or unenforceable, there shall be substituted or added as part of this Agreement by such court of competent jurisdiction or any arbitrator(s) appointed pursuant to Section 13.2, a provision which shall be
as similar as possible, in economic and business objectives as intended by the Parties to such invalid, illegal or unenforceable provision, but shall be valid, legal and enforceable. 
  
 15.9 Waiver. The waiver by either Party to this Agreement of any right under this Agreement or the failure to perform
or of a breach by the other Party shall not be deemed a waiver of any other right under this Agreement or of any other breach or failure by said other Party whether of a similar nature or otherwise. 
  
 15.10 No Third Party Beneficiaries. Each of Neose and Novo intend that
only Neose and Novo will benefit from, and are entitled to enforce the provisions of, this Agreement and that no Third Party beneficiary is intended under this Agreement. 
  
 15.11 Descriptive Headings; Section and Exhibit References. The headings of the several sections of this Agreement
are intended for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. All references in this Agreement to a Section or Exhibit shall be interpreted as references to the
respective Section or Exhibit of this Agreement unless the context requires otherwise. 
  
 15.12 Counterparts. The Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 15.13 Entire Agreement. This Agreement, including all exhibits to this
Agreement (the “Attachments”), embodies the entire understanding between the Parties and supersedes any prior understanding and agreements between and among them respecting the subject matter of this Agreement. There are no
representations, agreements, arrangements or understandings, oral or written, between the Parties to this Agreement relating to the subject matter of this Agreement, which are not fully expressed in this Agreement. If any provisions of any such
Attachment conflict with any provisions set forth in this Agreement, the provisions of this Agreement shall take precedence. The Parties acknowledge and agree that the Mutual Nondisclosure Agreement remains in full force and effect with respect to
any and all subject matter other than the subject matter of this Agreement or the ****** Agreement. 
  
 IN WITNESS WHEREOF, the undersigned Parties, acting through their duly authorized representatives, have executed this Agreement in multiple counterparts.

  

			
	NEOSE TECHNOLOGIES, INC.
		
	 By:
	 	 /s/ C. Boyd Clarke

	 Name:
	 	 C. Boyd Clarke

	 Title:
	 	 CEO

  

 - 33 - 

			
	NOVO NORDISK A/S
		
	 By:
	 	 /s/ Mads Krogsgaard Thomsen

	 Name:
	 	 EVP, CSO

	 Title:
	 	  

  

 - 34 - 

 Exhibits Index 
  

			
	Exhibit 1.21	  	M1 Profile – Parameters for Candidate Selection for New ****** Product
		
	Exhibit 1.22	  	M1 Profile – Parameters for Candidate Selection for New ****** Product
		
	Exhibit 1.25	  	Neose Patents as of the date of this Agreement
		
	Exhibit 2.2	  	Work Plan
		
	Exhibit 5.1.3	  	Required Agreement for Certain Proposed Sublicensees
		
	Exhibit 9.4	  	Press Release

  

 - 35 - 

 EXHIBIT 1.21 
  
 M1 Profile – parameters for candidate selection for New 
 ****** Product aiming at providing ****** by administration 
 ****** 
  
 ****** Process 
  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  
 ****** data; functional profile 
  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

  
 ****** 
  
 Safety assessment (pre M1 mainly in ****** 
  

	 	•	****** 

  

	 	•	****** 

  

	 	•	****** 

 EXHIBIT 1.22 
  
 M1 Profile – parameters for candidate selection for New 
 ******* Product aiming at providing ******* by administration 
 ******* 
  
 ******* Process 
  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  
 ******* data; functional profile 
  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

  
 ******* 
  
 Safety assessment (pre M1 mainly in ******* 
  

	 	•	******* 

  

	 	•	******* 

  

	 	•	******* 

			
	Confidential Information – Neose Technologies, Inc.	 	EXHIBIT 1.25

  
 NEOSE PATENTS AS
OF THE DATE OF THIS AGREEMENT 
  

															
	 ******

	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Country

	  	Case Type

	  	Status

	  	Application Number

	  	Filing Date

	  	Patent Number

	  	Issue Date

	  	Expiration Date

	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	DIV	  	Pending	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PCT	  	Pending	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PCT	  	Published	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PCT	  	Pending	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PCT	  	Published	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PCT	  	Pending	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	ORD	  	Pending	  	******	  	******	  	******	  	 	  	 
	 ******
	  	CON	  	Pending	  	******	  	******	  	 	  	 	  	 
	 ******
	  	CON	  	Published	  	******	  	******	  	 	  	 	  	 
	 ******
	  	DIV	  	Published	  	******	  	******	  	 	  	 	  	 
	 ******
	  	CON	  	Pending	  	******	  	******	  	 	  	 	  	 
	 ******
	  	PRO	  	Expired	  	******	  	******	  	 	  	 	  	 
	 ******
	  	RCE	  	Granted	  	******	  	******	  	******	  	******	  	******
								
	 ******

	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Country

	  	Case Type

	  	Status

	  	Application Number

	  	Filing Date

	  	Patent Number

	  	Issue Date

	  	Expiration Date

	 ******
	  	ORD	  	Published	  	******	  	******	  	******	  	 	  	 
	 ******
	  	PRO	  	Expired	  	******	  	******	  	 	  	 	  	******
	 ******
	  	PRO	  	Expired	  	******	  	******	  	 	  	 	  	******
	 ******
	  	PRO	  	Expired	  	******	  	******	  	 	  	 	  	******
	 ******
	  	PRO	  	Expired	  	******	  	******	  	 	  	 	  	******
								
	 ******

	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Country

	  	Case Type

	  	Status

	  	Application Number

	  	Filing Date

	  	Patent Number

	  	Issue Date

	  	Expiration Date

	 ******
	  	CIP	  	Pending	  	******	  	******	  	 	  	 	  	 
								
	 ******

	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Country

	  	Case Type

	  	Status

	  	Application Number

	  	Filing Date

	  	Patent Number

	  	Issue Date

	  	Expiration Date

	 ******
	  	CON	  	Pending	  	******	  	******	  	 	  	 	  	 

																	
	 ******

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Country

	 	 	 	Case Type

	 	Status

	 	Application Number

	 	Filing Date

	 	Patent Number

	 	Issue Date

	 	Expiration Date

	 ******
	 	 	 	CIP	 	Pending	 	******	 	******	 	 	 	 	 	 
									
	 ******

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Country

	 	 	 	Case Type

	 	Status

	 	Application Number

	 	Filing Date

	 	Patent Number

	 	Issue Date

	 	Expiration Date

	 ******
	 	 	 	CIP	 	Pending	 	******	 	******	 	 	 	 	 	 
									
	 ******

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Country

	 	 	 	Case Type

	 	Status

	 	Application Number

	 	Filing Date

	 	Patent Number

	 	Issue Date

	 	Expiration Date

	 ******
	 	 	 	CIP	 	Pending	 	******	 	******	 	 	 	 	 	 
									
	 ******

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Country

	 	Sub Case

	 	Case Type

	 	Status

	 	Application Number

	 	Filing Date

	 	Patent Number

	 	Issue Date

	 	Expiration Date

	 ******
	 	 	 	PCT	 	Published	 	******	 	******	 	 	 	 	 	 
	 ******
	 	 	 	PCT	 	Published	 	 	 	******	 	 	 	 	 	 
	 ******
	 	 	 	PCT	 	Published	 	******	 	******	 	 	 	 	 	 
	 ******
	 	 	 	PCT	 	Published	 	 	 	******	 	 	 	 	 	 
	 ******
	 	 	 	PCT	 	Published	 	 	 	******	 	 	 	 	 	 
	 ******
	 	 	 	ORD	 	Published	 	******	 	******	 	******	 	 	 	 
	 ******
	 	 	 	CIP	 	Allowed	 	******	 	******	 	 	 	 	 	 
	 ******
	 	D1	 	DIV	 	Published	 	******	 	******	 	 	 	 	 	 
	 ******
	 	D2	 	DIV	 	Published	 	******	 	******	 	 	 	 	 	 
	 ******
	 	D3	 	DIV	 	Published	 	******	 	******	 	 	 	 	 	 
	 ******
	 	D4	 	DIV	 	Published	 	******	 	******	 	 	 	 	 	 
	 ******
	 	D5	 	DIV	 	Published	 	******	 	******	 	 	 	 	 	 

			
	Confidential Information – Neose Technologies, Inc.	  	EXHIBIT 1.25

  

															
	 ******

	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Country

	  	Case Type

	  	Status

	  	Application Number

	  	Filing Date

	  	Patent Number

	  	Issue Date

	  	Expiration Date

	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	******	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	 
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	ORD	  	Published	  	******	  	******	  	******	  	 	  	 
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	EPC	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	ORD	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	CON	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	DIV	  	Granted	  	******	  	******	  	******	  	******	  	******
								
	 ******

	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Country

	  	Case Type

	  	Status

	  	Application Number

	  	Filing Date

	  	Patent Number

	  	Issue Date

	  	Expiration Date

	 ******
	  	PCT	  	Granted	  	******	  	******	  	******	  	******	  	******
	 ******
	  	PCT	  	Published	  	******	  	******	  	 	  	 	  	 
	 ******
	  	ORD	  	Published	  	******	  	******	  	******	  	 	  	 
	 ******
	  	CIP	  	Granted	  	******	  	******	  	******	  	******	  	******

 Exhibit 2.2 Work Plan 
  
 ******** 

 EXHIBIT 5.1.3 
  
 NEOSE TECHNOLOGIES, INC. 
  
 FORM OF REQUIRED AGREEMENT FOR PROPOSED SUBLICENSEES 
  
 This CONFIDENTIALITY AGREEMENT (this “Agreement”) is made as of this      day of
            , 200_, by and between Neose Technologies, Inc., a Delaware corporation (“Neose”), and
                             , a
                     corporation (“Recipient”). 
  
 BACKGROUND 
  
 Neose has developed and continues to develop proprietary technologies and related know-how for the glycosylation, design and remodeling of proteins,
peptides and antibodies, including, but not limited to its GlycoAdvanceTM, GlycoPEGylationTM
and GlycoConjugationTM technologies (collectively,
the “Technology”). Pursuant to a Research, Development and License Agreement dated                     
    , 2003 (the “License Agreement”), Neose has granted Novo Nordisk A/S, a Danish corporation (“Novo”), certain exclusive worldwide rights under the Technology throughout the world,
including certain rights to sublicense. Novo desires to sublicense to Recipient certain rights granted to Novo under the License Agreement. Novo, therefore, desires to disclose to Recipient confidential and proprietary information, which is a part
of the Technology and is considered valuable by Neose. As a condition to Novo disclosing such confidential and valuable proprietary information to Recipient, Recipient is entering into this Agreement for Neose’s benefit. 
  
 NOW, THEREFORE, in consideration of the foregoing premises and in
consideration of Novo disclosing Neose’s confidential and proprietary information to Recipient, and intending to be legally bound hereby, Recipient agrees as follows: 
  
 1. Definitions 
  
 1.1 “Confidential Information” means any and all proprietary or confidential information of Neose disclosed to Recipient, including,
without limitation, all technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, service plans, services, customer lists and customers, markets, software, developments, inventions, processes,
formulas, technology, designs, drawings, engineering, marketing, distribution and sales methods and systems, sales and profit figures, finances and other business information disclosed to Recipient related to Neose, either directly or indirectly, in
writing, orally or by drawings or inspection of documents or other tangible property. The fact that a given piece of information is marked or identified as confidential or proprietary shall conclusively indicate that such information is considered
Confidential Information, but the failure to so mark information shall not conclusively determine that such information was or was not considered Confidential Information. 

 1.2 “Neose Know-How” means any and all formulae, procedures, processes, methods,
designs, know-how, show-how, trade secrets, discoveries, inventions (whether or not patentable), patent applications, licenses, software and source code, programs, prototypes, designs, discoveries, techniques, methods, ideas, concepts, data,
engineering and manufacturing information, electronic control circuits, specifications, diagrams, drawings, schematics, blueprints and parts lists and other proprietary information, rights and works of authorship, whether or not reduced to writing,
controlled by Neose and relating to the Technology 
  
 1.3
“Neose Patents” means all patents and patent applications (including all corresponding foreign patents and patent applications, all divisions, continuations, continuations-in-part, reissues, renewals, extensions and additions to any
such patents or patent applications) relating to the Technology licensed by Neose to Novo under the License Agreement. 
  
 1.4 “Neose Technology” means the Neose Know-How and Neose Patents. 
  
 1.5 “Person” means an individual, corporation, partnership, trust, business trust, association, joint stock
company, joint venture, syndicate, sole proprietorship, unincorporated organization, government, governmental agency, authority or instrumentality, or any other form of entity not specifically listed in this Agreement. 
  
 1.6 “Product” means any of the “Novo Materials”
(as defined in the License Agreement modified by using the Neose Technology. 
  
 1.7 “Sublicense Agreement” means the agreement under which Novo sublicenses to Recipient certain rights granted by Neose to Novo under the License Agreement. 
  
 1.8 “Third Party” means any Person other than Recipient,
Neose or Novo. 
  
 2. Non-Disclosure; Non-Use; Reasonable Care

  
 2.1 Non-Disclosure. Without the prior written
consent of an authorized officer of Neose, Recipient shall not, directly or indirectly, disclose to any Third Party any Confidential Information or Neose Know-How. 
  
 2.2 Non-Use. Without the prior written consent of an authorized officer of Neose, Recipient shall not, directly or
indirectly, use any of the Confidential Information or Neose Technology for its own benefit or for the benefit of any Third Party. 
  
 2.3 Reasonable Care. Recipient shall take all reasonable measures to protect the secrecy of, and avoid the unauthorized disclosure or use of, the
Confidential Information and Neose Technology, including, without limitation, the following: (i) Recipient shall exercise the highest degree of care that Recipient uses to protect 

 Recipient’s own confidential and proprietary information of a similar nature; (ii) Recipient shall disclose
Confidential Information and/or Neose Know-How only to its employees and contractors who have a need to know; and (iii) Recipient shall require anyone who has access to any of the Confidential Information and/or Neose Know-How to sign or be a party
to an effective agreement with Recipient, applicable to the Confidential Information and Neose Know-How, containing provisions that are substantially similar to the terms of this Agreement. Recipient shall notify Neose in writing of any disclosure,
misuse or misappropriation of any Confidential Information or Neose Technology that may come to Recipient’s attention. 
  
 3. Acknowledgements. Recipient acknowledges and agrees that: (i) this Agreement is necessary for the protection of the legitimate business interests of
Neose; (ii) the execution of this Agreement by an authorized representative of Recipient and delivery of this Agreement to Neose is a mandatory condition precedent to Novo disclosing any Confidential Information and any information concerning the
Neose Technology to Recipient, without which Neose would not permit Novo to disclose such information; (iii) neither Neose nor Novo has granted to Recipient any rights under the Neose Technology in any manner; and (iv) because of the unique nature
of the Confidential Information and Neose Technology and its broad applicability to the manufacture and remodeling of glycoproteins, Neose will not have an adequate remedy at law if Recipient breaches any term of this Agreement. 
  
 4. Return of Materials. Upon the earlier of termination of Novo’s license
to the Neose Technology under the License Agreement or termination of the Sublicense Agreement, Recipient shall: (i) discontinue all use of the Confidential Information and Neose Technology; (ii) destroy any and all items in its possession
containing any Confidential Information or Neose Technology; and (iii) certify in writing to Neose, within ten (10) days after Neose’s request therefor, that Recipient has taken all actions described in this Section 4. 
  
 5. Intellectual Property 
  
 5.1 Ownership Rights. All right, title and interest under patent,
copyright, trade secret and trademark law and any other intellectual property or other law (collectively, “Ownership Rights”), in and to the Confidential Information and Neose Technology shall remain at all times with Neose. Any and
all Ownership Rights to developments, discoveries, inventions, additions, amendments, modifications, ideas, processes, methods, compositions, formulae, techniques, information and data, whether or not patentable, relating to the Neose Technology,
which is made, conceived or reduced to practice by Neose, Novo or Recipient or any combination of them (“Neose Improvements”) shall be owned by Neose and shall be deemed to part of the Neose Technology for all purposes. 

 
 5.2 Assignment. To the extent that Recipient may retain any
Ownership Rights in any Neose Improvements, Recipient hereby irrevocably assigns and transfers to Neose any and all such Ownership Rights, in perpetuity or for the longest period otherwise permitted by law, without the necessity of further
consideration, and Neose 

 shall be entitled to receive and hold in its own name all such Ownership Rights. With respect to any Ownership Rights
that Recipient may assign and transfer to Neose under this Section 5.2, at the request of Neose, and at Neose’s expense, either before or after termination of this Agreement, Recipient shall assist Neose in acquiring and maintaining patent,
copyright, trade secret and trademark protection upon, and confirming Neose’s title in and to, any such Ownership Rights. Recipient’s assistance shall include, but shall not be limited to, signing all applications, and any other documents
and instruments for patent, copyright and any other proprietary rights, cooperating in legal proceedings, and taking any other actions considered necessary or desirable by Neose. For the purpose of facilitating the above assignment, Recipient agrees
that any and all employees and contractors employed or engaged by Recipient and providing any service in connection with the use of the Neose Technology, prior to providing such service, shall have agreed in writing to covenants consistent with
Recipient’s covenants set forth in this Section 5.2 
  
 6.
Exceptions. The non-disclosure obligations with respect to Confidential Information and Neose Know-How set forth in Section 2.1 shall not apply to any information that: (i) at the time of disclosure by or on behalf of Novo or Neose to
Recipient is in, or after disclosure by or on behalf of Novo or Neose becomes part of, the public domain through no improper act on the part of Recipient or on the part of any of Recipient’s employees, independent contractors, advisors or
consultants; (ii) is disclosed, published or disseminated by Neose without any confidentiality constraints; (iii) was in Recipient’s possession free of any obligation of non-disclosure or non-use at the time of disclosure to Recipient, as shown
by written evidence; (iv) Recipient receives from a Third Party free of any obligation of non-disclosure or non-use, but only if such Third Party had no direct or indirect obligation to Neose not to disclose such information; (v) was developed by
Recipient independent of information received hereunder, as shown by its written records; or (vi) subject to Section 7, is required to be disclosed by law or pursuant to legal, judicial or administrative process. 
  
 7. Notice of Required Disclosure. If Recipient is required by judicial or
administrative process to disclose any Confidential Information or Neose Know-How, then Recipient shall promptly notify Neose and, before disclosing such Confidential Information or Neose Know-How, allow Neose a reasonable time to oppose such
process. 
  
 8. Successors; Assignment. This Agreement shall be
binding upon Recipient and Recipient’s successors and assigns and inure to the benefit of Neose and its successors and assigns. Recipient may not assign its rights or delegate its obligations under this Agreement, in whole or in part, except
with the prior written consent of Neose, which consent shall not be unreasonably withheld. Neose may assign this Agreement without seeking or obtaining Recipient’s consent. 
  
 9. Governing Law. This Agreement and any controversy, claim or dispute arising under this Agreement shall be governed by, and
construed in accordance with the laws of the Commonwealth of Pennsylvania, United States of America, without regard to the conflicts of law principles of any jurisdiction. 

 10. Remedies. In addition to any other remedies that may be available, at law, in equity or otherwise,
Neose shall be entitled to obtain injunctive relief to enforce the provisions of this Agreement without necessity of posting bond. 
  
 11. Entire Agreement. This Agreement contains the entire agreement and understanding relating to the subject matter hereof and merges and supersedes all
prior discussions, agreements and understandings. This Agreement may not be changed or modified, except in a writing signed by both Neose and Recipient. The failure or delay of Neose to exercise any right under this Agreement shall not be deemed a
waiver of any rights under this Agreement. 
  
 IN WITNESS WHEREOF,
each party has caused its authorized representative to execute this Agreement as of the date first written above. 
  

							
	 NEOSE TECHNOLOGIES, INC.
	  	 [INSERT NAME OF RECIPIENT]

				
	 By:
	 	  

	  	 By:
	 	  

	 Name:
	 	  

	  	 Name:
	 	  

	 Title:
	 	  

	  	 Title:
	 	  

 [GRAPHIC APPEARS HERE] 
  
 NEOSE TECHNOLOGIES, INC. 
 102 Witmer Road, Horsham, PA 19044 215.315.9000 
 fax:215.315.9100 
  
 email: info@neose.com    www.neose.com 

 

  
 Neose Technologies and Novo Nordisk Sign License Agreements for 
 Improved
Therapeutic Proteins 
  
 Up to $55.6 Million in Upfront and
Milestone Payments 
  
 HORSHAM, PA, November 17, 2003. Neose
Technologies, Inc. (NasdaqNM: NTEC) announced today that it has entered into two research, development and license agreements with Novo Nordisk A/S (NYSE: NVO) to use Neose’s GlycoPEGylationTM technology to develop three next-generation proteins within Novo Nordisk’s
therapeutic areas, one of which is currently marketed by them. 
  
 The license
agreements are the result of the research and development collaboration agreements Neose and Novo Nordisk executed in 2002 and the successful application of Neose’s GlycoPEGylation technology to three complex proteins. 
  
 Under the terms of the new agreements, Neose will receive a $4.3 million upfront fee and up
to $51.3 million in milestone payments based on the progress of the programs. Novo Nordisk is responsible for funding Neose’s research and development activities under the agreements, and Neose will receive royalties on sales of any products
commercialized under the agreements. In addition, Neose could receive additional milestones and royalties on new indications for the two proteins not currently marketed by Novo Nordisk. 
  
 “We are pleased that the success of our original collaboration with Novo Nordisk has led to a broader collaboration on multiple
proteins for various indications. Our work with Novo Nordisk highlights the potential of our GlycoPEGylation technology to make clinically significant improvements to therapeutic proteins,” said C. Boyd Clarke, Neose president, chief executive
officer and chairman. “We look forward to moving into the next phase of developing these proteins with a leader in the field.” 

 About GlycoPEGylation  
  
 Neose’s GlycoPEGylation technology can extend and customize protein half-life by
uniquely linking various size polyethylene glycol (PEG) polymers to glycans that are remote from the protein’s active site, thereby preserving activity. Proteins that have not benefited from traditional chemical pegylation may benefit from
GlycoPEGylation. 
  
 About Novo Nordisk 

  
 Novo Nordisk is a focused healthcare company. With the broadest diabetes
product portfolio in the industry, including the most advanced products within the area of insulin delivery systems, Novo Nordisk is a world leader in diabetes care. In addition, Novo Nordisk has a leading position within haemostasis management,
growth hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark, Novo
Nordisk employs approximately 18,700 people in 68 countries and markets its products in 179 countries. Novo Nordisk’s B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed on the New York Stock Exchange under
the symbol ‘NVO’. For further company information visit www.novonordisk.com 
  
 About Neose 
  
 Neose is a biopharmaceutical company focused on the improvement of protein therapeutics through the application of its proprietary technologies. By applying its
GlycoAdvanceTM and GlycoPEGylationTM technologies, Neose is developing proprietary protein drugs that are improved versions of currently marketed therapeutics with proven efficacy. These second
generation proteins are expected to offer significant advantages, including less frequent dosing and improved safety and efficacy. In addition to developing its own products and co-developing products with others, Neose is entering into strategic
partnerships for the inclusion of its technologies into products being developed by other biotechnology and pharmaceutical companies. 
  
 CONTACTS: 
 Neose Technologies, Inc. 
 Robert I. Kriebel 
 Sr. Vice President and
Chief Financial Officer 
 Barbara Krauter 
 Manager, Investor Relations 
 (215) 315-9000 
  
 For more information, please visit www.neose.com. 
  
 “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding
our business that are not historical facts are 

 “forward-looking statements” that involve risks and uncertainties. For a discussion of these risks and
uncertainties, any of which could cause our actual results to differ from those contained in the forward-looking statement, see the section entitled “Risk Factors” of our Registration Statement on Form S-3 dated June 20, 2003, and
discussions of potential risks and uncertainties in our subsequent filings with the SEC.

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