Document:

Exhibit 10.13

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Execution Version

 

LICENSE AGREEMENT

 

This License Agreement (the “Agreement”) is made and entered into effective as of January 6, 2010 (the “Effective Date”), by and between Aridis Pharmaceuticals, LLC a corporation organized and existing under the laws of California (hereinafter “Aridis”) and Emergent Product Development Gaithersburg Inc., a Delaware corporation (hereinafter “Emergent”).  Aridis and Emergent each may be referred to herein individually as a “Party,” or collectively as the “Parties.”

 

WITNESSETH:

 

WHEREAS, Aridis is a pharmaceutical and biotechnology company specialized in formulation stabilizing technologies;

 

WHEREAS, Emergent is a biopharmaceutical company engaged in the development, manufacture, and commercialization of vaccines and biologics;

 

WHEREAS, in connection with the development and commercialization of such vaccines and biologics, Emergent desires to receive from Aridis, and Aridis desires to grant to Emergent, licenses under certain technology of Aridis, all on the terms and conditions set forth herein; and

 

WHEREAS, Emergent and Aridis shall concurrently execute and enter into a Subcontract setting forth their agreement with respect to the Aridis’ services relating to its formulation stabilizing technologies; and

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE I
 Definitions

 

When used in this Agreement, capitalized terms will have the meanings as defined below and throughout the Agreement:

 

1.1                               “Affiliate” shall mean a legal entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with a Party.  For purposes of this definition only, “control” and, with correlative meanings, the terms “controlled by” and “under common control with” means (a) the possession, directly or indirectly, of the power to direct the management or policies of a legal entity, whether through the ownership of voting securities or by contract relating to voting rights or corporate governance, or (b) the ownership, directly or indirectly, of more than 50% of the voting securities or other ownership interest of a legal entity (or, with respect to a limited partnership or other similar entity, its general partner or controlling entity); provided, however, if local law restricts foreign ownership, control will be

 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

established by direct or indirect ownership of the maximum ownership percentage that may, under such local law, be owned by foreign interests.

 

1.2                               “Agreement” shall have the meaning set forth in the preamble hereto.

 

1.3                               “Applicable Law” shall mean all laws, rules, regulations applicable to the Exploitation of the Licensed Products, including any such rules, regulations, guidelines, or other requirements of the Regulatory Authorities, that may be in effect from time to time in the Territory.

 

1.4                               “Aridis” shall have the meaning set forth in the preamble hereto.

 

1.5                               “Aridis Information and Inventions” shall have the meaning set forth in Section 8.3.4.

 

1.6                               “Aridis Know-How” shall mean all Information and Inventions, to the extent not generally known, that Aridis or its Affiliates own or otherwise Control as of the Effective Date (a) that are necessary or useful for the practice of Aridis’ plasticization, foam drying, spray drying or other stabilizing formulation technologies to the extent relating to stabilization of vaccines or biologics or (b) that comprise Project Technology developed pursuant to the Subcontract (or that comprise technology developed pursuant to any future contract for work between Emergent and Aridis).  Without limitation of the foregoing, the Aridis Know-How shall include those Information and Inventions listed in Schedule 1.6 to this Agreement.

 

1.7                               “Aridis Patents” shall mean all of the Patents that Aridis or its Affiliates own or otherwise Control as of the Effective Date (a) that disclose, claim or cover any plasticization, foam drying, spray drying, or other stabilizing formulation technologies to the extent relating to stabilization of vaccines or biologics (including claims or coverage of products resulting from the use of such technologies to the extent relating to stabilization of vaccines or biologics), (b) that comprise Project Technology developed pursuant to the Subcontract (or that comprise technology developed pursuant to any future contract for work between Emergent and Aridis) or (c) that are Improvements.  Without limitation of the foregoing, the Aridis Patents shall include those Patents listed on Schedule 1.7 to this Agreement, and any substitutions, divisions, continuations, continuations-in-part, reissues, renewals, registrations, confirmations, re- examinations, extensions, supplementary protection certificates, and any international or foreign equivalent of any Patent listed in Schedule 1.7 to this Agreement.

 

1.8                               “Aridis Regulatory Documentation” shall have the meaning set forth in Section 8.3.4.

 

1.9                               “Biodefense Indications” means the Exclusive Indications and the Non-Exclusive Indications.

 

1.10                        “BLA” means a Biologics License Application filed with the FDA or other regulatory authority in conformance with applicable laws and regulations, or the equivalent application filed in jurisdictions outside the United States of America.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

1.11                        “Breaching Party” shall have the meaning set forth in Section 10.4.

 

1.12                        “Business Day” shall mean a day other than a Saturday or Sunday on which banking institutions in the United States are open for business.

 

1.13                        “BYU License” shall mean the License and Option Agreement between Brigham Young University and Aridis, LLC effective July 24, 2005 and any related agreements.

 

1.14                        “BYU Technology” shall mean any technology licensed by Aridis under the BYU License.

 

1.15                        “Calendar Quarter” shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31.

 

1.16                        “Calendar Year” shall mean each successive period of twelve (12) months commencing on January 1 and ending on December 31.

 

1.17                        “Clinical Trials” shall mean, with respect to a Licensed Product, all tests and studies in patients that are required by the Regulatory Authorities, from time to time, pursuant to Applicable Law or otherwise, for Regulatory Approval of such product.

 

1.18                        “Combination Product” shall mean a vaccine, biopharmaceutical or pharmaceutical which comprises a Licensed Product that is used or intended to be used for the indications included in the Field and one or more other products that, standing alone, would not be Licensed Products, whether or not co-formulated and whether or not administered simultaneously or sequentially in accordance with an established regimen.  (For example: a product that comprises two vaccines for two indications, one vaccine component incorporating Aridis Knowhow or Aridis Patents hereunder, and one vaccine not incorporating Aridis Knowhow or Aridis Patents, would be a Combination Product.)

 

1.19                        “Complaining Party” shall have the meaning set forth in Section 10.4.

 

1.20                        “Component” means a component for use in a vaccine or biologic, including but not limited to (i) an antigen(s), (ii) an adjuvant(s), or (iii) other active or inactive ingredients, which component, when administered either alone or in combination with other components, elicits or enhances an antigen specific immune response.

 

1.21                        “Confidential Information” shall have the meaning set forth in Section 4.1.1.

 

1.22                        “Confidentiality Agreements” shall mean the Confidential Disclosure Agreement dated May 15, 2009 between the Parties and the Mutual Confidentiality Agreement dated August 28, 2009 between Emergent, Aridis and Oxford-Emergent Tuberculosis Consortium Limited and any subsequent Confidential Disclosure Agreement between the Parties and any Confidential Disclosure Agreement dated November 4, 2009 between Emergent, Aridis and Brigham Young University.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

1.23                        “Control” shall mean, with respect to any Information and Invention, Patent, Trademark or other intellectual property right, possession of the right, whether directly or indirectly, and whether by ownership, license or otherwise, to assign, or grant a license, sublicense or other right to or under, such Information and Invention, Patent, Trademark or right as provided for herein without violating the terms of any written agreement with any Third Party.

 

1.24                        “Development” shall mean all activities related to research, preclinical and other non-clinical testing, test method development, process development, manufacturing scale-up, qualification and validation, quality assurance/quality control and Clinical Trials, including manufacturing in support thereof, statistical analysis and report writing, the preparation and submission of any application for Regulatory Approval, regulatory affairs with respect to the foregoing and all other activities necessary or reasonably useful or otherwise requested or required by a Regulatory Authority as a condition or in support of obtaining or maintaining a Regulatory Approval.  When used as a verb, “Develop” shall mean to engage in Development.

 

1.25                        “Diligent Efforts” means the carrying out of obligations or tasks in a manner consistent with the efforts a Party devotes to a research, development or marketing project for a product or products of similar market potential at a similar stage in its life cycle, taking into consideration its safety and efficacy, its cost to develop, the competitiveness of alternative products, its proprietary position, the likelihood of regulatory approval, its profitability, and all other relevant factors.

 

1.26                        “Diligence Obligations” shall mean the obligations of Emergent pursuant to Section 2.2.

 

1.27                        “Disclosing Party” shall have the meaning set forth in Section 4.1.1.

 

1.28                        “Effective Date” shall have the meaning set forth in the preamble hereto.

 

1.29                        “Emergent” shall have the meaning set forth in the preamble hereto.

 

1.30                        “EU Member State” shall mean any one of the sovereign states that have acceded to the European Union.

 

1.31                        “Exclusive Indications” shall mean any of the following indications: anthrax, botulism, plague, and small pox; provided, however that, with respect to plague and small pox, if Development has not occurred pursuant to Section 2.2, then at the expiration of the two year anniversary of the Effective Date, such indication shall become a Non-Exclusive Indication.

 

1.32                        “Exclusive Field Aridis Patents” shall mean any and all Aridis Patents in which the claimed subject matter is limited to exploitation of a Licensed Product within one or more Exclusive Indications.  For clarity and the avoidance of doubt, the Exclusive Field Aridis Patents are a sub-set of the Aridis Patents.

 

1.33                        “Exploit” shall mean to make, have made, import, use, sell, or offer for sale, including to research, Develop, register, modify, enhance, improve, Manufacture, have

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Manufactured, store, formulate, export, transport, distribute, promote, market, or otherwise dispose of.

 

1.34                        “Exploitation” shall mean the making, having made, importation, use, sale, offering for sale or disposition of a product or process, including the research, Development, registration, modification, enhancement, improvement, Manufacture, storage, formulation, optimization, import, export, transport, distribution, promotion, marketing or other disposition of a product or process.

 

1.35                        “FDA” shall mean the United States Food and Drug Administration and any successor agency thereto.

 

1.36                        “FFDCA” shall mean the United States Federal Food Drug and Cosmetic Act, as amended from time to time.

 

1.37                        “Field” shall mean all human use of Licensed Products, intended for the prevention or treatment of infection or illness caused by Biodefense Indications, for all routes of administration and delivery systems and devices, with or without excipients and adjuvants.

 

1.38                        “First Sale” shall mean, with respect to any Licensed Product, the first commercial sale for end use or consumption of such Licensed Product in a country.

 

1.39                        “Formulation Project Technology” shall have the meaning set forth in the Subcontract.

 

1.40                        “Future Contract” shall mean a contract awarded after the Effective Date for the Development of Licensed Products under which Aridis may be awarded a subcontract to provide services.

 

1.41                        “GAAP” shall mean United States generally accepted accounting principles, consistently applied.

 

1.42                        “Government Procurement Contract” shall mean a United States government or foreign government contract awarded to Emergent for the purchase of Licensed Product.

 

1.43                        “HHS” shall mean the United States Department of Health and Human Services.

 

1.44                        “IDE” shall mean an investigational device exemption as defined in the regulations promulgated by the FDA for authorization to commence Clinical Trials, and its equivalent in other countries or regulatory jurisdictions in the Territory.

 

1.45                        “Improvement” shall mean any modification, variation or revision to a discovery, technology, device, process or formulation related to the Aridis Patents; provided, that such modification, variation or revision is potentially patentable, including, to the extent commercially significant, any (a) enhancement in the efficiency, operation, Manufacturing, ingredients, preparation, presentation, formulation, means of delivery, packaging or dosage, (b) discovery or

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

development of any new or expanded indications or (c) discovery or development that improves the stability, safety or efficacy.

 

1.46                        “IND” shall mean an investigational new drug application filed with the FDA for authorization to commence Clinical Trials, and its equivalent in other countries or regulatory jurisdictions in the Territory.

 

1.47                        “Indemnification Claim Notice” shall have the meaning set forth in Section 7.3.1.

 

1.48                        “Indemnified Party” shall have the meaning set forth in Section 7.3.1.

 

1.49                        “Information and Inventions” shall mean all technical, scientific and other know-how, show-how and information, trade secrets, knowledge, technology, means, methods, processes, practices, formulas, instructions, skills, techniques, procedures, experiences, ideas, technical assistance, designs, drawings, assembly procedures, computer software, apparatuses, specifications, data, cell lines, seed stock and other biological materials, Pre-Clinical and Clinical Trial results, Manufacturing procedures, test procedures and purification and isolation techniques, in written, electronic or any other form now known or hereafter developed, whether to the foregoing or otherwise, and other discoveries, developments, inventions, and other Intellectual Property, but excluding the Regulatory Documentation.

 

1.50                        “Intellectual Property” shall mean statutory and other proprietary rights in respect of Patents, trademarks, copyrights, design rights, database rights, confidential information, and all other Intellectual Property rights as defined in Article 2 of the Convention Establishing the World Intellectual Property Organisation of July 1967.

 

1.51                        “Licensed Product” shall mean a vaccine or biologic that comprises one or more Components, (A) the Exploitation of which vaccine or biologic would infringe an Aridis Patent in the absence of a license, or (B) which vaccine or biologic incorporates Aridis Know-How.

 

1.52                        “Losses” shall have the meaning set forth in Section 7.1.

 

1.53                        “Manufacture” and “Manufacturing” shall mean, with respect to a product, the manufacturing, processing, formulating, packaging, finishing, filling, labeling, holding and quality control testing of such product.

 

1.54                        “Marketing Authorization” shall mean a New Drug Application or BLA, each as defined in the FFDCA, and the regulations promulgated thereunder, or any corresponding foreign application, registration or certification, necessary or reasonably useful to market a Licensed Product in the Territory, but not including pricing and reimbursement approvals.

 

1.55                        “Net Sales” shall mean, for any period, the gross amount invoiced by Emergent, its Affiliates or sublicensees for the sale of the Licensed Products to any Third Party (and in all cases amounts actually received to the extent not invoiced), less (to the extent otherwise included in amounts invoiced) any: (a) normal and customary trade, quantity and cash discounts and sales returns and allowances, including (i) those granted on account of price adjustments, billing errors,

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

rejected goods, damaged goods, returns and rebates, (ii) administrative and other fees and reimbursements and similar payments to wholesalers and other distributors, buying groups, pharmacy benefit management organizations, health care insurance carriers and other institutions, (iii) allowances, rebates and fees paid to distributors and (iv) chargebacks; (b) freight, postage, shipping and insurance expenses to the extent that such items are included in the gross amount invoiced; (c) payments for customs and excise duties and other duties related to the sales to the extent that such items are included in the gross amount invoiced; (d) rebates and similar payments made with respect to sales paid for by any governmental or regulatory authority such as, by way of illustration and not in limitation of the Parties’ rights hereunder, Federal or state Medicaid, Medicare or similar state program or equivalent foreign governmental program; (c) payments for sales and other taxes and duties directly related to the sale or delivery of the Licensed Products (but not including taxes assessed against the income derived from such sale); (f) distribution expenses to the extent that such items are included in the gross amount invoiced; and (h) any such invoiced amounts that are not collected.  Any of the deductions listed above that involves a payment by Emergent or its Affiliates shall be taken as a deduction in the Calendar Quarter in which the payment is accrued by such entity.  Deductions pursuant to clause (h) above shall be taken in the Calendar Quarter in which such sales are no longer recorded as a receivable.  For purposes of determining Net Sales, the Product(s) shall be deemed to be sold when invoiced and delivered under a procurement contract and a “sale” shall not include transfers or dispositions for charitable or promotional purposes or for clinical, manufacturing, testing qualification or regulatory purposes, including delivery of Licensed Products to third parties for research and development.  Sales shall also include consideration other than cash received for a Licensed Product.  Where the consideration received for a Licensed Product is not cash, then the “Net Sales” for that Licensed Product for purposes of computing royalties or other amounts due under the Agreement shall be deemed to be the fair market value for such Licensed Product.  In determining fair market value, appropriate weight shall be given to any arms-length transaction by Emergent involving the same or similar Licensed Product.

 

For purposes of calculating Net Sales, only the final sale by Emergent, its Affiliates or sublicensees to Third Parties shall be included in the computation of Net Sales, and intermediate sales between or among Emergent, its Affiliates, and its sublicensees shall be excluded from the computation of Net Sales.

 

In the event that a Licensed Product is sold in any country in the form of a Combination Product, the appropriate adjustment to the Net Sales of such Combination Product for purposes of royalty calculations hereunder shall be negotiated by the Parties in good faith based upon the relative contributions of the Licensed Product component of such Combination Product and the other indication product components of such Combination Product to the selling price thereof.

 

1.56                        “Non-Exclusive Indications” shall mean tularemia and VHF indications; provided, however that a Non-exclusive Indication shall become an Exclusive Indication immediately upon payment of [***]by Emergent to Aridis made within five (5) years of the Effective Date, subject to existing rights granted by Aridis as of the time of payment.

 

1.57                        “Notice Period” shall have the meaning set forth in Section 10.4.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

1.58                        “Other Aridis Patents” shall mean all those Aridis Patents that are not Exclusive Field Aridis Patents.  For clarity and the avoidance of doubt, the Other Aridis Patents are a subset of the Aridis Patents.

 

1.59                        “Other Technology” shall have the meaning set forth in the Subcontract.

 

1.60                        “Patents” means (a) all patents and patent applications in any country or supranational jurisdiction (including all priority applications and all other applications, whether or not pending, to or through which a patent or pending application claims priority benefit directly or indirectly), (b) any provisionals, substitutions, divisions, continuations, continuations in part, reissues, renewals, registrations, confirmations, reexaminations, extensions, supplementary protection certificates and the like, of any such patents or patent applications, (c) any foreign or international equivalent of any of the foregoing and (d) all patents granted or issuing on or claiming priority to or through the patents and patent applications within (a), (b), and (c).

 

1.61                        “PCT” shall mean the Patent Cooperation Treaty, opened for signature June 19, 1970, 28 U.S.T. 7645.

 

1.62                        “Person” shall mean an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other similar entity or organization, including a government or political subdivision, department or agency of a government.

 

1.63                        “Phase I Trial” means, as to a specific pharmaceutical product, a controlled and lawful study in humans of the safety of a pharmaceutical product that is prospectively designed to generate sufficient data (if successful) to commence a Phase II Trial (or foreign equivalent) of such product, as further defined in United States Federal Regulation 21 C.F.R. §312.21 or the corresponding regulation in jurisdictions other than the United States.

 

1.64                        “Phase II Trial” means, as to a specific pharmaceutical product, a controlled and lawful study in humans of the feasibility, safety, dose ranging and efficacy of such product, which study is prospectively designed to generate sufficient data (if successful) to commence a Phase III Trial of such product, as further defined in United States Federal Regulation 21 C.F.R. §312.21 or the corresponding regulation in jurisdictions other than the United States.

 

1.65                        “Phase III Trial” shall mean a human clinical trial of the Licensed Product designed to establish that a pharmaceutical product is safe and efficacious for its intended use and to determine warnings, precautions and adverse reactions that are associated with such pharmaceutical product in the dosage range to be prescribed, which trial is intended to support marketing approval of the Licensed Product, including all tests and studies that are required by the FDA from time to time, pursuant to Applicable Law or otherwise, including the trials referred to in 21 C.F.R. §312.21(c), as amended.

 

1.66                        “Pre-Clinical Trial” means, as to a specific pharmaceutical product, non-clinical studies in support of a Regulatory Approval.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

1.67                        “Prime Award” means Cooperative Agreement 1U01AI082224-01 awarded by the National Institute of Allergy and Infectious Disease, National Institutes of Health to Emergent with Sukjoon Park, PhD, as the Principal Investigator.

 

1.68                        “Project Technology” shall have the meaning set forth in the Subcontract.

 

1.69                        “Receiving Party” shall have the meaning set forth in Section 4.1.1.

 

1.70                        “Regulatory Approval” shall mean any and all approvals (including pricing and reimbursement approvals), governmental licenses, registrations or authorizations of any Regulatory Authority, necessary for the Exploitation of the Licensed Products in the Field in a country in the Territory, including any (a) approval of any Licensed Product (including any INDs, IDEs, Marketing Authorizations and supplements and amendments thereto); (b) pre- and post-approval marketing authorizations (including any prerequisite Manufacturing approval or authorization related thereto); (c) labeling approval; and (d) technical, medical and scientific licenses.

 

1.71                        “Regulatory Authority” shall mean any applicable supra-national, federal, national, regional, state, provincial or local regulatory agencies, departments, bureaus, commissions, councils or other government entities regulating or otherwise exercising authority with respect to the Exploitation of the Licensed Products in the Field in the Territory.

 

1.72                        “Regulatory Documentation” shall mean all applications, registrations, governmental licenses, authorizations and approvals (including all Regulatory Approvals), all correspondence submitted to or received from Regulatory Authorities (including minutes and official contact reports relating to any communications with any Regulatory Authority) and all supporting documents and all clinical studies and tests, relating to any Licensed Product or component thereof, and all data contained in any of the foregoing, including all INDs, IDEs, Marketing Authorizations, regulatory drug lists, advertising and promotion documents, adverse event files, complaint files and Manufacturing records and any Drug Master Files.

 

1.73                        “Statement of Work” shall mean the scope of work set forth in Appendix A of the Subcontract.

 

1.74                        “Subcontract” shall mean that certain subcontract under the Prime Award entered into by and between the Parties effective January 6, 2010 attached hereto in Exhibit A and as such subcontract may be amended from time to time in accordance with its terms.

 

1.75                        “Territory” shall mean all the countries of the world.

 

1.76                        “Third Party” shall mean any Person other than Emergent, Aridis and their respective Affiliates.

 

1.77                        “Third Party Claim” shall have the meaning set forth in Section 7.3.2.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

1.78                        “Trademark” shall include any word, name, symbol, color, designation or device or any combination thereof, including any trademark, trade dress, brand mark, trade name, brand name, logo or business symbol.

 

1.79                        “USPTO” shall mean the United States Patent and Trademark Office and any successor agency thereto, or the equivalent entity in other countries or regulatory jurisdictions in the Territory.

 

1.80                        “Vaccine Project Technology” shall have the meaning set forth in the Subcontract.

 

1.81                        “Valid Patent Claim” means (a) a claim of a pending patent application that has been filed, and is being prosecuted in good faith, that has not been canceled, withdrawn, abandoned or pending for more than ten (10) years from the earliest claimed priority date, or (b) an issued patent that has not expired or been canceled, been declared invalid or unenforceable by a decision of a court or other appropriate body of competent jurisdiction, from which no appeal is or can be taken, been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, or been abandoned or disclaimed.

 

1.82                        “VHF” means viral hemorrhagic fever.

 

ARTICLE II
  Development and Commercialization

 

2.1                               Development and Commercialization Activities.  Emergent and its Affiliates shall have the exclusive right to Exploit the Licensed Products in the Field in the Territory, and shall be solely responsible for any costs and expenses it incurs in connection with such Exploitation.

 

2.2                               Diligence Obligations.  Emergent shall make Diligent Efforts to Exploit at least one Licensed Product for each of the Exclusive Indications.  Prior to receipt of the first Marketing Authorization for a Licensed Product in each Exclusive Indication, “Diligent Efforts” in this Section shall require, and be deemed satisfied if, Emergent (directly or through Affiliates or sublicensees) either: (a) demonstrates the allocation of resources to Development under a product development plan, and uses commercially reasonable efforts to progress under such plan; or (b) or secures or uses commercially reasonable efforts to secure (by filing good faith responses to requests for proposals issued by the United States government or other foreign governments, or otherwise), a governmental contract or award for purchase of Licensed Products in an indication, and in good faith considers Aridis as development subcontractor in such filings and awards.  Emergent shall share details regarding its Development plans and Exploitation efforts with Aridis periodically upon request; provided, however that such requests shall not exceed one (1) time per year.  For the avoidance of doubt, Emergent has made Diligent Efforts with respect to anthrax and botulism and thus Emergent’s diligence obligations have been met for anthrax and botulism.

 

2.3                               Communications with Regulatory Authorities.  Emergent or its designee shall have the sole right (except where Aridis is legally so required) to conduct all communications with

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

the Regulatory Authorities with regard to the Exploitation of the Licensed Products in the Field in the Territory.

 

2.4                               Regulatory Approvals.  Emergent or its designee shall have the sole right to prepare and maintain all regulatory submissions and respond to all inquiries from Regulatory Authorities with respect to (a) Regulatory Approvals for Licensed Products in the Field in the Territory and (b) Development activities that are conducted in support of such Regulatory Approvals.  All INDs, IDEs, Marketing Authorizations and other filings, applications or requests made pursuant to or in connection with the Regulatory Approvals shall be made in the name of Emergent or its designee, unless Applicable Law requires that a Regulatory Approval be granted solely or jointly (with Emergent) in the name of Aridis or its Affiliates, in which case Aridis shall, or shall cause its Affiliates to, as applicable, take such actions as may be required to effect the assignment of such Regulatory Approval to Emergent to the extent permitted by Applicable Law.  Emergent or its designee shall prepare, file, maintain and hold all regulatory filings for the Licensed Products and shall keep Aridis informed of the initial filing, and final approval of, any application for Regulatory Approval of a Licensed Product in the Territory.  Upon Emergent’s request and at its expense (if any; such expenses shall be discussed by the Parties in advance in good faith), Aridis shall, and shall cause its Affiliates to, provide to Emergent or its designee all information in the possession of Aridis or its Affiliates that is reasonably necessary to support any and all applications for Regulatory Approval of the Licensed Products in the Territory.

 

2.5                               Reports.  Emergent shall furnish to Aridis within 60 days after the end of each year until the year after the year of the First Sale, annual progress reports describing the Development activities with respect to the Licensed Products that Emergent has performed or has caused to be performed.

 

2.6                               Rights and Obligations.  Any and all rights of Emergent under this ARTICLE II are intended, and shall be construed, to benefit such of its Affiliates and sublicensees as and to the extent Emergent may designate from time to time.  Further, Emergent shall have the right to satisfy any or all of its obligations under this ARTICLE II through one or more of its Affiliates or permitted sublicensees.

 

ARTICLE III
  License Grants

 

3.1                               Grants to Emergent.  Subject to ARTICLE X, Aridis hereby grants to Emergent and its Affiliates, and shall cause Aridis’ Affiliates to grant to Emergent and its Affiliates:

 

(a)                                 an exclusive, perpetual, royalty-bearing license under the Aridis Patents and Aridis Know-How (excluding the BYU Technology) to Exploit Licensed Products for the Exclusive Indications in the Field in the Territory;

 

(b)                                 an exclusive royalty-bearing license to the Aridis’ rights to the BYU Technology to Exploit Licensed Products for the Exclusive Indications in the Field in the Territory;

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

(c)                                  a non-exclusive, royalty-bearing license under the Aridis Patents and Aridis Know-How to Exploit Licensed Products for the Non-exclusive Indications in the Field in the Territory; and

 

(d)                                 a non-exclusive, fully paid up license and right of reference, under any Regulatory Documentation owned or Controlled by Aridis or any of its Affiliates, to Exploit Licensed Products in the Field in the Territory.

 

3.2                               Sublicenses.  Emergent and its Affiliates may grant sublicenses (through multiple tiers of sublicensees) under the licenses granted in Section 3.1, for the purpose of enabling Third Parties to Exploit the Licensed Products in the Field.  All sublicenses granted by Emergent, directly or through tiers, shall be subject to the terms and conditions of this Agreement and the BYU License, and shall be under written agreement with express provisions to this effect.  No sublicense shall relieve Emergent of any responsibilities under this Agreement.  Emergent shall forward a copy of each sublicense agreement within thirty (30) days of execution.

 

ARTICLE IV
 Confidentiality and Nondisclosure

 

4.1                               Confidential Information.

 

4.1.1                     Defined.  During the Term and subject to the terms and conditions of this Agreement, a Party (the “Disclosing Party”) may communicate to the other Party (the “Receiving Party”) information in connection with the discussions and negotiations pertaining to this Agreement or the performance of its obligations under this Agreement, including, without limitation, any information regarding Licensed Products; know-how and any tangible embodiments thereof; reports provided pursuant to this Agreement; data; knowledge; practices; protocols; standard operating procedures; processes; ideas; research plans; engineering designs and drawings; research data; manufacturing processes and techniques; scientific and manufacturing information and plans, marketing and business plans, and financial and personnel matters relating to a Party or its present or future products, sales, suppliers, customers, employees, investors or business (collectively, “Confidential Information”).

 

4.1.2                     Exclusions.  Notwithstanding the foregoing, any information of a Party will not be deemed Confidential Information with respect to the Receiving Party for purposes of this Agreement if such information:

 

(a)                                 was already known or available to the Receiving Party or its Affiliates, other than under an obligation of confidentiality or non-use to the Disclosing Party, at the time of disclosure to the Receiving Party, as evidenced by the Receiving Party’s written records;

 

(b)                                 was generally available or known to parties reasonably skilled in the field to which such information pertains, or was otherwise part of the public domain, at the time of its disclosure to the Receiving Party;

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

(c)                                  became generally available or known to parties reasonably skilled in the field to which such information pertains, or otherwise became part of the public domain, after its disclosure to the Receiving Party through no fault of or breach of its obligations by the Receiving Party;

 

(d)                                 was disclosed to the Receiving Party, other than under an obligation of confidentiality or non-use, by a Third Party who had no obligation to the Party that Controls such information not to disclose such information to others; or

 

(e)                                  was independently discovered or developed by the Receiving Party or its Affiliates, as evidenced by their written records, without the use of, and by personnel who had no access to, Confidential Information belonging to the Party that Controls such information.

 

Specific aspects or details of Confidential Information shall not be deemed to be within the public domain or in the possession of a Party merely because the Confidential Information is embraced by more general information in the public domain or in the possession of such Party.  Further, any combination of Confidential Information shall not be considered in the public domain or in the possession of a Party merely because individual elements of such Confidential Information are in the public domain or in the possession of such Party unless the combination and its principles are in the public domain or in the possession of such Party.

 

4.2                               Disclosure and Use Restriction.  Except as expressly provided herein, the Parties agree that, during the term of this Agreement and for ten (10) years thereafter, each Party and its Affiliates and sublicensees shall keep completely confidential and shall not publish or otherwise disclose any Confidential Information of the other Party, its Affiliates or sublicensees.  Neither Party may use any Confidential Information of the other Party without such other Party’s consent, except as expressly permitted by this Agreement.

 

4.3                               Authorized Disclosure.  Each Party may use and disclose Confidential Information of the other Party to the extent that such use and disclosure is:

 

4.3.1                     made in response to a valid order of a court of competent jurisdiction or other governmental or regulatory body of competent jurisdiction; provided, however, that such Party shall first have given notice to such other Party and given such other Party a reasonable opportunity to quash such order and to obtain a protective order requiring that the Confidential Information and documents that are the subject of such order be held in confidence by such court or governmental or regulatory body or, if disclosed, be used only for the purposes for which the order was issued; and provided, further, that if a disclosure order is not quashed or a protective order is not obtained, the Confidential Information disclosed in response to such court or governmental order shall be limited to that information which is legally required to be disclosed in response to such court or governmental order;

 

4.3.2                     otherwise required by law; provided, however, that the Disclosing Party shall provide such other Party with notice of such disclosure in advance thereof to the extent practicable;

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

4.3.3                     made by such Party to the regulatory authorities as required in connection with any filing of requests for Regulatory Approvals, or similar applications; provided, however, that reasonable measures shall be taken to assure confidential treatment of such information;

 

4.3.4                     made by such Party, in connection with the performance of this Agreement, to Affiliates, permitted sublicensees, research parties, employees, consultants, advisors, representatives or agents, (including, for Aridis or BYU) each of whom prior to disclosure shall be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Article IV;

 

4.3.5                     made by such Party to existing or potential acquirers or merger candidates; existing or potential pharmaceutical collaborators (to the extent contemplated under this Agreement); or Affiliates, each of whom prior to disclosure must be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Article IV;

 

4.3.6                     made in a patent application filed in conformance with this Agreement, with the requirement that the Party who did not draft the patent application shall have a reasonable time to review the patent application but under no circumstances less than thirty (30) days prior to the filing of the patent application;

 

4.3.7                     made in satisfaction of such Party’s duty of candor and good faith dealing with the USPTO as set forth in 37 C.F.R. §1.56 or any foreign equivalent thereof; or

 

4.3.8                     made by such Party in satisfaction of a USPTO requirement of submission of information as set forth in 37 C.F.R. §1.105 or any foreign equivalent thereof.

 

4.3.9                     made in a development report submitted to a government agency in satisfaction of a reporting requirement of a government license.

 

4.4                               Terms of Agreement to be Maintained in Confidence.  Subject to the provisions of this Section, the Parties agree that the terms of this Agreement are deemed Confidential Information of both Parties and are subject to the restrictions on use and disclosure set forth herein.  The Parties agree that Aridis shall provide a copy of this Agreement to Brigham Young University as provided in Section 2.4 of the BYU License.  Aridis agrees to act with diligence to execute a three way Confidential Disclosure Agreement with Emergent and Brigham Young University prior to the disclosure of the terms and conditions of this Agreement to Brigham Young University.

 

4.5                               Use of Name.  Neither Party shall make public use of the other Party’s name except (a) in connection with announcements and other permitted disclosures relating to this Agreement and the activities contemplated hereby, (b) as required by Applicable Law, and (c) otherwise as agreed in writing by such other Party; provided, however, that Emergent and its Affiliates and sublicensees shall have the right to use the name of Aridis to the extent reasonably necessary in connection with the Exploitation of the Licensed Products with the prior consent of Aridis, which shall not be unreasonably withheld, conditioned or delayed.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

4.6                               Press Releases; Publication.  The Parties shall cooperate with respect to the timing and content of communications with the public regarding the activities contemplated by this Agreement.  Subject to 4.3.2, the content of any press releases pertaining to this Agreement shall require the prior written approval of both Parties.

 

ARTICLE V
 Payments and Reports

 

5.1                               Up-Front Payments.  In partial consideration of the licenses and other rights granted herein, subject to the terms and conditions set forth in this Agreement, Emergent shall make the following non-refundable, non-creditable payments to Aridis within thirty (30) days of receipt by Emergent from Aridis of a written invoice thereof:

 

5.1.1                     [***] within thirty (30) days of execution of this Agreement;

 

5.1.2                     [***] within thirty (30) days of execution of this Agreement as an additional milestone for Emergent’s receipt of the Prime Award;

 

5.1.3                     [***] on the six month anniversary of the Effective Date; and

 

5.1.4                     [***] on the nine month anniversary of the Effective Date.

 

5.2                               Regulatory Milestone Payments.  Emergent shall promptly inform Aridis of the achievement of each of the milestones set forth below by Emergent or any of its Affiliates or, if applicable, any Emergent sublicensee.  In partial consideration of the licenses and other rights granted herein and subject to the terms and conditions set forth in this Agreement, Emergent shall make the following non-refundable milestone payments to Aridis within thirty (30) days of receipt by Emergent from Aridis of a written invoice therefor:

 

5.2.1                     [***]at the first dosing of the first subject in the first Phase I Clinical Trial of a Licensed Product;

 

5.2.2                     [***] at the first dosing of the first subject in the first Phase II Clinical Trial of a Licensed Product;

 

5.2.3                     [***] upon the earlier of (i) the first dosing of the first subject in the first Phase III Clinical Trial of a Licensed Product and (ii) award of a contract executed by HHS, or any successor agency thereto, for the manufacture and delivery of a Licensed Product for placement in the Strategic National Stockpile;

 

5.2.4                     [***] upon the first submission of a Marketing Authorization in the United States, Japan or any EU Member State with respect to a Licensed Product;

 

5.2.5                     [***] upon the First Sale after receipt of the first Marketing Authorization for a Licensed Product;

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Emergent shall make the foregoing milestone payments to Aridis for the first Licensed Product per Biodefense Indication within the Field.  These payments will be made only once per Licensed Product per Biodefense Indications within the Field.

 

5.3                               Sales-Based Milestone Payments.  Emergent shall promptly inform Aridis of the achievement of each of the milestones set forth below by Emergent or any of its Affiliates or, if applicable, any Emergent sublicensee.  In partial consideration of the licenses and other rights granted herein and subject to the terms and conditions set forth in this Agreement, Emergent shall make the following non-refundable milestone payments to Aridis within thirty (30) days of receipt by Emergent from Aridis of a written invoice therefor:

 

5.3.1                     [***]upon achieving annual Net Sales of an aggregate amount of One Hundred Million Dollars ($100,000,000);

 

5.3.2                     [***] upon achieving annual Net Sales of an aggregate amount of Two Hundred Million Dollars ($200,000,000); and

 

5.3.3                     [***] upon achieving annual Net Sales of an aggregate amount of Five Hundred Million Dollars ($500,000,000).

 

5.4                               Emergent Royalty Payments.  Subject to Sections 5.5, 5.6, and 5.7, in partial consideration of the licenses and other rights granted herein and subject to the terms and conditions set forth in this Agreement, Emergent, on a Licensed Product-by-Licensed Product basis, shall pay to Aridis on account of sales of such Licensed Product by Emergent or its Affiliates or sublicensees, commencing upon the First Sale of such Licensed Product in such country, royalties in an amount equal to:

 

5.4.1                     [***] on that portion of annual Net Sales of such Licensed Product in such country in such Calendar Year up to [***],

 

5.4.2                     [***] on that portion of annual Net Sales of such Licensed Product in such country in such Calendar Year that exceeds [***] but is not more than [***]provided, however that if BYU Technology is used, then the rate shall be [***] and

 

5.4.3                     [***] on that portion of annual Net Sales of such Licensed Product in such country in such Calendar Year that exceeds [***]provided, however that if BYU Technology is used, then the rate shall be [***].

 

5.5                               Royalty Step-Down.  The royalties payable pursuant to Section 5.4 shall be reduced to [***] on a country by country basis, during any period in which there are no Valid Claims of any Aridis Patent that would be infringed by the Exploitation of such Licensed Product in such country in the absence of the license and sublicense grants hereunder.

 

5.6                               Royalty Stacking.  Emergent may reduce the amount of royalties payable to Aridis under Sections 5.4, 5.5 and 5.7 by an amount of up to [***] of any other royalties paid to a Third Party by Emergent or its Affiliates or sublicensees in connection with the Exploitation of a Product

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

in the Field, in order to practice the Aridis Patents and/or Aridis Know-How; provided (a) the other royalties must be for a stabilization technology incorporated into the Licensed Product, (b) the royalty paid by Emergent to Aridis may be reduced by no more than [***] and (c) the royalty paid by Emergent to Aridis shall not be less than [***].

 

5.7                               Reduction in Royalties for Compulsory Licenses.  In the event that a court or a governmental agency of competent jurisdiction requires Emergent or one of its Affiliates or sublicensees to grant a compulsory license to a Third Party permitting such Third Party to make and sell a Licensed Product in a country in the Territory, then all Net Sales of such Licensed Product sold by such Third Party in such country shall be excluded from the royalty calculations set forth in Section 5.4, and the royalty rate to be paid by Emergent on such Net Sales shall automatically be reduced to the lesser of (a) the applicable royalty rate calculated in accordance with Sections 5.4, 5.5, and 5.6 with respect to such Net Sales, or (b) [***] of the royalty rate under such compulsory license, during the time period when such compulsory license is in effect and being exercised.

 

5.8                               Royalty Term.  Emergent’s royalty obligations under Sections 5.4, 5.5 and 5.6 shall terminate, on a Licensed Product-by-Licensed Product basis, on the later to occur of (i) the tenth (10th) anniversary of the First Sale of such Licensed Product in such country and (ii) the expiration date in such country of the last to expire of any Aridis Patent that includes at least one Valid Patent Claim covering the Manufacture (if such Licensed Product is Manufactured in such country), use or sale of such Licensed Product in such country.  Upon termination of the royalty obligations of Emergent under this Section 5.8 with respect to a Licensed Product in a country, the license grants to Emergent in Section 3.1 shall become fully paid-up with respect to such Licensed Product in such country.

 

5.9                               Third Party Royalties.  Except for payments for BYU Technology set forth under Section 5.4, in the event that the practice of Aridis Know-How and Aridis Patents as licensed hereunder in the Exploitation of Licensed Products by Emergent, its Affiliates or its sublicensees triggers any payment obligations (whether in the form of royalties or other amounts) on the part of Aridis to one or more Third Parties pursuant to any license or other agreements entered into between Aridis and such Third Party(ies), Aridis shall be solely responsible for such payments.  Nothing in this Agreement shall be construed as an obligation upon Aridis to obtain any licensing rights from any Third Parties for any technology; provided however that Aridis shall have the obligation to use its best efforts to maintain those license rights it has which are needed to satisfy its obligations under this Agreement and the Subcontract..

 

5.10                        Sales to Brigham Young University.  Any sales of Licensed Product to Brigham Young University pursuant to the BYU License shall be excluded from the sales milestones and royalty calculations set forth in Sections 5.3 and 5.4.

 

5.11                        Reports; Payments.  Following the First Sale, Emergent shall furnish to Aridis a written report for each Calendar Quarter showing (a) invoiced sales and Net Sales (for all of Emergent, Affiliates, and sublicensees), (b) the number of units of each Licensed Product sold on a country-by-country basis during the applicable Calendar Quarter, and (c) the amount owed to such Party pursuant to Section 5.4, 5.5, 5.6, and 5.7, as the case may be.   Reports shall be due and

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

amounts owed to Aridis shall be due and payable sixty (60) days following the close of each Calendar Quarter.

 

5.12                        Audits.

 

5.12.1              Upon the written request of Aridis and not more than once in each Calendar Year, Emergent shall permit an independent certified public accounting firm of internationally recognized standing selected by Aridis, and reasonably acceptable to Emergent, to have access during normal business hours, and upon reasonable prior written notice, to such of the records of Emergent as may be reasonably necessary to verify the accuracy of the reports provided in accordance with Section 5.11, for any Calendar Year ending not more than thirty-six (36) months prior to the date of such request.  The accounting firm shall disclose to the Parties only whether the financial statements and any related invoices are correct or incorrect and the specific details concerning any discrepancies.  If such accounting firm concludes that Emergent owed additional amounts to Aridis during such period, Emergent shall pay Aridis the difference between the amount actually owed, as determined by the accounting firm, and the amount actually paid by Emergent, with interest from the date originally due at the rate provided in Section 5.13, within thirty (30) days after the date on which such accounting firm’s written report is delivered to Aridis.  If such accounting firm concludes that Emergent has overpaid Aridis during such period, Aridis shall pay such difference to Emergent within thirty (30) days after the date of delivery of such report.  If, and only if, Emergent has underpaid Aridis during such period, and the amount of the underpayment is greater than [***] of the total actual amount owed as determined by the accounting firm, Emergent shall bear all costs related to such audit.  In all other cases, Aridis shall bear the cost of such audit.

 

5.12.2              Emergent shall include in each sublicense granted by it pursuant to this Agreement a provision requiring the sublicensee to make reports to Emergent, to keep and maintain records of sales made pursuant to such sublicense and to grant access to such records by Aridis’ independent accountant to the same extent required of Emergent under Section 5.12.1.  Upon the expiration of thirty-six (36) months following the end of any Calendar Year, the calculation of amounts payable with respect to such year shall be binding and conclusive upon Aridis, and Emergent and its licensees or sublicensees, as applicable, shall be released from any liability or accountability with respect to amounts payable for such year.

 

5.12.3              Aridis shall treat all information subject to review under this ARTICLE V in accordance with the confidentiality provisions of ARTICLE IV and shall cause its accounting firm to enter into a reasonably acceptable confidentiality agreement with Emergent obligating such firm to retain all such financial information in confidence pursuant to such confidentiality agreement.

 

5.13                        Payment; Interest.

 

5.13.1              All payments to be made by a Party to the other Party under this Agreement shall be made in United States dollars by wire transfer in immediately available funds to

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

such bank account designated in writing by the receiving Party from time to time.  Payments shall be free and clear of any taxes (other than withholding and other taxes imposed on the receiving Party, which shall be for the account of such Party), fees or charges, to the extent applicable.  With respect to payments in currencies other than United States dollars, payments shall be calculated based on currency exchange rates for the month in which the invoice is received.  For each month and each currency, such exchange rate shall equal the arithmetic average of the daily exchange rates for such month listed in The Wall Street Journal, Eastern United States Edition, or, if not so available, as otherwise agreed by the Parties.

 

5.13.2              Any payments or portions thereof due hereunder which are not paid on the date such payments are due under this Agreement will bear interest at the prime rate, as published in The Wall Street Journal, Eastern United States Edition, on the last Business Day preceding such date.

 

5.14                        Condition to Emergent Payment.  All the provisions of this Article V are subject to the condition that Aridis successfully amend the BYU License as requested by Emergent in order to allow Aridis to sub-license the BYU Technology to Emergent under the terms that Emergent has requested (the “Condition”).  The Condition shall be removed by written agreement once Emergent is satisfied in its sole discretion that such amendment has been completed.  If the Condition has not been removed within thirty (30) days of execution of this Agreement (“Amendment Deadline”), Emergent shall have the right to terminate this Agreement and shall have no payment obligations to Aridis; provided, however that if the Condition has not been removed by the Amendment Deadline, but Emergent does not provide a notice of termination to Aridis within five (5) days after the expiration of the Amendment Deadline, (a) the Condition shall be deemed satisfied and shall be removed and (b) Emergent shall be required henceforth to satisfy all subsequent payment obligations set forth in this Article V; provided, however that the fees payable under this Article V shall be reduced as agreed upon by the parties to take into account the unavailability of the BYU Technology.  For the avoidance of doubt, the license upfront fees under 5.1.1 and 5.1.2 above shall not accrue unless and until satisfaction or removal of the condition as set out in this section, and shall be payable only 30 days after that satisfaction or removal, upon receipt of a written invoice from Aridis.

 

ARTICLE VI
 Complaints, Adverse Event Reporting and Product Recall

 

6.1                               Complaints.  Each Party shall maintain a record of any and all complaints it receives with respect to the Licensed Products.  Each Party shall notify the other Party in reasonable detail of any complaint received by it within thirty (30) days and in any event in sufficient time to allow such other Party to comply with any and all regulatory and other requirements imposed upon it in any country in which the Licensed Products are being marketed or distributed.

 

6.2                               Adverse Event Reporting.  Each Party shall provide the other Party with all information necessary for such other Party to receive in order to comply with all Applicable Law relating to adverse event reporting with respect to the Licensed Products.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

6.3                               Product Recall.

 

6.3.1                     Notification and Recall.  Emergent shall have the sole right to decide, in its discretion, whether to conduct a recall of any Licensed Product (except in the case of a government-mandated recall) and the manner in which any such recall shall be conducted.

 

6.3.2                     Recall Expenses.  Emergent shall bear the expenses of any recall of a Licensed Product arising out of its Exploitation of such Licensed Product in the Field in the Territory.

 

ARTICLE VII
 Indemnity

 

7.1                               Indemnification of Emergent.  Subject to Section 7.3, Aridis shall indemnify Emergent, its Affiliates and its and their respective directors, officers, employees and agents, and defend and save each of them harmless, from and against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) in connection with any and all suits, investigations, claims or demands (collectively, “Losses”) arising from or occurring as a result of (a) any material breach by Aridis of this Agreement or (b) any gross negligence or willful misconduct of Aridis, its Affiliates or its other permitted subcontractors in performing Aridis’ obligations under this Agreement or (c) any willful misappropriation of Patents or other Intellectual Property of any Third Party impacting the exercise by Emergent or its Affiliates or sublicensees of rights granted in this Agreement to Exploit the Aridis Patents and Aridis Know- How, except for those Losses for which Emergent has an obligation to indemnify Aridis pursuant to Section 7.2, as to which Losses each Party shall indemnify the other to the extent of their respective liability for the Losses.

 

7.2                               Indemnification of Aridis.  Subject to Section 7.3, Emergent shall indemnify Aridis, its Affiliates and their respective directors, officers, employees and agents, and defend and save each of them harmless, from and against any and all Losses arising from or occurring as a result of (a) any material breach by Emergent of this Agreement, (b) the gross negligence or willful misconduct of Emergent, its Affiliates or its other subcontractors in performing Emergent’s obligations under this Agreement, or (c) the Exploitation of Licensed Products by Emergent or any of its Affiliates or sublicensees, except for those Losses under Section 7.2 (a) and (b) for which Aridis has an obligation to indemnify Emergent and its Affiliates pursuant to Section 7.1, as to which Losses each Party shall indemnify the other to the extent of their respective liability for the Losses.

 

7.3                               Indemnification Procedure.

 

7.3.1                     Notice of Claim.  The indemnified Party shall give the indemnifying Party prompt written notice (an “Indemnification Claim Notice”) of any Losses or discovery of fact upon which such indemnified Party intends to base a request for indemnification under Section 7.1 or 7.2, In no event shall the indemnifying Party be liable for any Losses that result from any delay in providing such notice.  Each Indemnification Claim Notice must contain a description of the claim and the nature and amount of such Loss (to the extent

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

that the nature and amount of such Loss is known at such time).  The indemnified Party shall furnish promptly to the indemnifying Party copies of all papers and official documents received in respect of any Losses.  All indemnification claims in respect of a Party, its Affiliates or their respective directors, officers, employees and agents shall be made solely by such Party to this Agreement (the “Indemnified Party”).

 

7.3.2                     Third Party Claims.  The obligations of an indemnifying Party under this ARTICLE VII with respect to Losses arising from claims of any Third Party that are subject to indemnification as provided for in Sections 7.1 or 7.2 (a “Third Party Claim”) shall be governed by and be contingent upon the following additional terms and conditions:

 

(a)                                 Control of Defense.  At its option, the indemnifying Party may assume the defense of any Third Party Claim by giving written notice to the Indemnified Party within thirty (30) days after the indemnifying Party’s receipt of an Indemnification Claim Notice.  The assumption of the defense of a Third Party Claim by the indemnifying Party shall not be construed as an acknowledgment that the indemnifying Party is liable to indemnify any Person seeking indemnification in respect of the Third Party Claim, nor shall it constitute a waiver by the indemnifying Party of any defenses it may assert against any such claim for indemnification.  Upon assuming the defense of a Third Party Claim, the indemnifying Party may appoint as lead counsel in the defense of the Third Party Claim any legal counsel selected by the indemnifying Party.  In the event the indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party shall immediately deliver to the indemnifying Party all original notices and documents (including court papers) received by any indemnified Party in connection with the Third Party Claim.  Should the indemnifying Party assume the defense of a Third Party Claim, the indemnifying Party shall not be liable to the Indemnified Party or any other indemnified Party for any legal expenses subsequently incurred by such indemnified Party in connection with the analysis, defense or settlement of the Third Party Claim.  In the event that it is ultimately determined that the indemnifying Party is not obligated to indemnify, defend or hold harmless an indemnified Party from and against the Third Party Claim, the Indemnified Party shall reimburse the indemnifying Party for any and all costs and expenses (including attorneys’ fees and costs of suit) and any Losses incurred by the indemnifying Party in its defense of the Third Party Claim with respect to such indemnified Party.

 

(b)                                 Right to Participate in Defense.  Without limiting Section 7.3.2(a), any Indemnified Party shall be entitled to participate in, but not control, the defense of such Third Party Claim and to employ counsel of its choice for such purpose; provided, however, that such employment shall be at the Indemnified Party’s own expense unless (i) the employment thereof has been specifically authorized by the indemnifying Party in writing or (ii) the indemnifying Party has failed to assume the defense and employ counsel in accordance with Section 7.3.2(a) (in which case the Indemnified Party shall control the defense).

 

(c)                                  Settlement.  With respect to any Losses relating solely to the payment of money damages in connection with a Third Party Claim and that will not result in the Indemnified Party’s becoming subject to injunctive or other relief or otherwise adversely affect the business of the Indemnified Party in any manner, and as to which the indemnifying Party shall have acknowledged in writing the obligation to indemnify the Indemnified Party hereunder, the

 

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indemnifying Party shall have the sole right to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss, on such terms as the indemnifying Party, in its sole discretion, shall deem appropriate.  With respect to all other Losses in connection with Third Party Claims, where the indemnifying Party has assumed the defense of the Third Party Claim in accordance with Section 7.3.2(a), the indemnifying Party shall have authority to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss provided it obtains the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed).  The indemnifying Party shall not be liable for any settlement or other disposition of a Loss by an Indemnified Party that is reached without the written consent of the indemnifying Party.  Regardless of whether the indemnifying Party chooses to defend or prosecute any Third Party Claim, no Indemnified Party shall admit any liability with respect to, or settle, compromise or discharge, any Third Party Claim in a manner that has a materially adverse effect on the indemnifying Party without the prior written consent of the indemnifying Party.

 

(d)                                 Cooperation.  Regardless of whether the indemnifying Party chooses to defend or prosecute any Third Party Claim, the Indemnified Party shall, and shall cause each other indemnified Party to, cooperate in the defense or prosecution thereof and shall furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection therewith.  Such cooperation shall include access during normal business hours afforded to indemnifying Party to, and reasonable retention by the Indemnified Party of, records and information that are reasonably relevant to such Third Party Claim, and making indemnified Parties and other employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder, and the indemnifying Party shall reimburse the Indemnified Party for all its reasonable out-of-pocket expenses in connection therewith.

 

(e)                                  Expenses.  Except as provided above, the costs and expenses, including fees and disbursements of counsel, incurred by the Indemnified Party in connection with any claim shall be reimbursed on a Calendar Quarter basis by the indemnifying Party, without prejudice to the indemnifying Party’s right to contest the Indemnified Party’s right to indemnification and subject to refund in the event the indemnifying Party is ultimately held not to be obligated to indemnify the Indemnified Party.

 

7.4                               LIMITATION ON DAMAGES.  SUBJECT TO SECTIONS 7.1 AND 7.2, EXCEPT IN CIRCUMSTANCES OF GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT, NONE OF EMERGENT, ARIDIS OR ANY OF THEIR RESPECTIVE AFFILIATES SHALL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF THE OTHER (INCLUDING FOR LOST PROFITS, MILESTONES OR ROYALTIES), WHETHER IN CONTRACT, WARRANTY, NEGLIGENCE, TORT, STRICT LIABILITY OR OTHERWISE, ARISING OUT OF (A) ANY BREACH OF OR FAILURE TO PERFORM ANY OF THE PROVISIONS OF THIS AGREEMENT, OR (B) THE EXPLOITATION BY EMERGENT OF THE LICENSED PRODUCTS.

 

7.5                               Insurance.  Each Party shall have and maintain such type and amounts of liability insurance (or program of self-insurance) covering the Exploitation of the Licensed Products as is

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

normal and customary in the pharmaceutical industry generally for a company similarly situated, and shall upon request provide the other Party with a copy of its certificates of insurance in that regard, along with any amendments and revisions thereto.

 

7.6                               Emergent acknowledges that the provisions of BYU License Section 15, product liability and general indemnification, apply to it as sublicensee, and that Emergent, Affiliates and sublicensees shall have the obligations of “LICENSEE” therein with respect to Licensed Products hereunder, notwithstanding any provision in this Agreement that may be inconsistent.

 

ARTICLE VIII
 Representations and Warranties

 

8.1                               Representations and Warranties.  Each Party hereby represents, warrants and covenants to the other Party as of the Effective Date as follows:

 

8.1.1                     Such Party (a) has the corporate power and authority to enter into this Agreement and perform its obligations hereunder, and (b) has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.

 

8.1.2                     This Agreement has been duly executed and delivered on behalf of such Party and constitutes a legal, valid and binding obligation of such Party and is enforceable against it in accordance with its terms subject to the effects of bankruptcy, insolvency or other laws of general application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity, whether enforceability is considered a proceeding at law or equity.

 

8.1.3                     The execution and delivery of this Agreement and the performance of such Party’s obligations hereunder (a) do not conflict with or violate any requirement of any provision of the articles of incorporation, bylaws or any similar instrument of such Party in any material way, and (b) do not conflict with, violate, or breach or constitute a default or require any consent under, any contractual obligation or court or administrative order by which such Party is bound.

 

8.1.4                     All necessary consents, approvals and authorizations of all regulatory and governmental authorities and other Persons required to be obtained by such Party in connection with the execution and delivery of this Agreement and the performance of its obligations hereunder have been obtained.

 

8.2                               Additional Representations, Warranties and Covenants of Emergent.   Emergent represents, warrants and covenants to Aridis that:

 

(a)                                 Emergent is a corporation duly organized and in good standing under the laws of the State of Delaware, and has full power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as it is contemplated to be conducted by this Agreement.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

(b)                                 Neither Emergent nor any of its Affiliates has been debarred or is subject to debarment.  Neither Emergent nor any of its Affiliates will use in any capacity, in connection with the performance of its obligations or the exercise of its rights under this Agreement, any Person who has been debarred pursuant to Section 306 of the FFDCA or who is the subject of a conviction described in such section.  Emergent will inform Aridis in writing immediately if it or any Person who is performing any such activities is debarred or is the subject of a conviction described in Section 306 or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to the best of Emergent’s knowledge, is threatened, relating to the debarment or conviction of Emergent, any of its Affiliates or any other Person performing such activities.

 

8.3                               Additional Representations, Warranties and Covenants of Aridis.  Aridis represents, warrants and covenants to Emergent that:

 

8.3.1                     Aridis is a corporation duly organized, validly existing and in good standing under the laws of California, and has full power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as it is contemplated to be conducted by this Agreement.

 

8.3.2                     Neither Aridis nor any of its Affiliates has been debarred or is subject to debarment.  Neither Aridis nor any of its Affiliates will use in any capacity, in connection with the performance of its obligations or the exercise of its rights under this Agreement, any Person who has been debarred pursuant to Section 306 of the FFDCA or who is the subject of a conviction described in such section.  Aridis will inform Emergent in writing immediately if it or any Person who is performing any such activities is debarred or is the subject of a conviction described in Section 306 or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to the best of Aridis’ knowledge and belief, is threatened, relating to the debarment or conviction of Aridis, any of its Affiliates or any other Person performing such activities.

 

8.3.3                     To Aridis’ knowledge, (a) it is the sole and exclusive owner of all right, title and interest in and to the Patents listed on Schedule 1.7 with the exception of those Patents identified on Schedule 1.7 as being those owned by Brigham Young University and licensed to Aridis pursuant to the BYU License; (b) except as provided in Schedule 1.7, such rights are not subject to any encumbrance, lien or claim of ownership by any Third Party; and (c) with the exception of the Patents identified as those owned by Brigham Young University and licensed to Aridis pursuant to the BYU License, the grant, use or practice of the licenses granted in Section 3.1 will not trigger any payment obligations of Aridis or any of its Affiliates to any of Aridis’ Affiliates or to any Third Party; Schedule 1.7 is a complete and accurate list as of the Effective Date of all Patents owned or otherwise Controlled by Aridis and its Affiliates and Aridis has disclosed or made available to Emergent all Aridis Know-How in existence as of the Effective Date.

 

8.3.4                     To Aridis’ knowledge, the Aridis Patents as of the Effective Date are subsisting and are not invalid or unenforceable, in whole or in part.  To Aridis’ knowledge and belief, the Information and Inventions owned or Controlled by Aridis or its Affiliates (the “Aridis Information and Inventions”), the Aridis Patents, the Aridis Know-How and

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

any Regulatory Documentation owned or Controlled by Aridis or its Affiliates (the “Aridis Regulatory Documentation”), existing as of the Effective Date have not constituted or involved the misappropriation of trade secrets or other Intellectual Property or other rights of any Third Party.  Aridis has complied and at all applicable times during the term of this Agreement, will comply with the duties of disclosure, candor and good faith dealing with the USPTO as required by 37 C.F.R. §1.56 and with any foreign equivalents thereto imposed by foreign national or supranational patent offices.  Aridis has complied and at all applicable times during the term of this Agreement will comply with any notice requirements imposed by the United States law and regulations for Aridis Patents conceived as the result of funding by the United States government.  There are no claims, judgments or settlements against or amounts with respect thereto owed by Aridis or any of its Affiliates relating to the Aridis Information and Inventions, the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation,.  No claim or litigation has been brought or threatened by any Person alleging, and Aridis is not aware of any claim, whether or not asserted, that (i) the Aridis Patents are invalid or unenforceable or (ii) the Aridis Information and Inventions, the Aridis Patents, the Aridis Know-How, or Aridis Regulatory Documentation or the disclosing, copying, making, assigning, or licensing of the Aridis Information and Inventions, the Aridis Patents, or the Aridis Know-How, Aridis Regulatory Documentation, or the Exploitation of products embodying the Aridis Information and Inventions, the Aridis Patents, the Aridis Know-How, or the Aridis Regulatory Documentation, including the Exploitation of any Licensed Product, violates, infringes or otherwise conflicts with any intellectual property or proprietary right of any Third Party.

 

8.3.5                     Except for the license grants in Section 3.1, neither Aridis nor any of its Affiliates has, directly or indirectly, expressly or by implication, by action or omission or otherwise (i) assigned, transferred, conveyed or otherwise encumbered any right, title or interest in or to the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation in the Field; (ii) granted any license or other right, title or interest in or to the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation in the Field; or (iii) agreed to or is otherwise bound by any covenant not to sue for any infringement, misuse or otherwise with respect to the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation in the Field.

 

8.3.6                     Aridis agrees not to, and agrees to cause its Affiliates not to, directly or indirectly, expressly or by implication, by action or omission or otherwise (i) assign, transfer, convey or otherwise encumber any right, title or interest in or to the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation, (ii) grant any license or other right, title or interest in or to the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation in any manner, or (iii) agree to or otherwise become bound by any covenant not to sue for any infringement, misuse or other action or inaction with respect to the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation, in each case ((i), (ii), and (iii)) that is inconsistent with the grants, assignments and other rights reserved to Emergent and its Affiliates under this Agreement.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

8.3.7                     To the knowledge of Aridis and its Affiliates, there is no actual or threatened infringement by a Third Party of the Aridis Patents, the Aridis Know-How or the Aridis Regulatory Documentation.

 

8.4                               DISCLAIMER OF WARRANTY.  EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN SECTIONS 8.1, 8.2 AND 8.3, NEITHER PARTY MAKES ANY REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR ANY WARRANTY AS TO THE VALIDITY OF ANY PATENTS OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

ARTICLE IX
 Intellectual Property Provisions

 

9.1                               Ownership of Project Technology.  Ownership of Project Technology shall be determined by Article 11 of the Subcontract.  All Project Technology owned by Aridis, including Formulation Project Technology and Other Technology, shall be included in the licenses granted in this Agreement.  For avoidance of doubt, Aridis Patents shall include Patents owned by Aridis pursuant to the terms of the Subcontract, and Aridis Know-How shall include know-how owned by Aridis pursuant to the terms of the Subcontract.

 

9.2                               Ownership of Other Intellectual Property.  For Patents and know-how conceived or reduced to practice during the term of this Agreement and which are not Project Technology, all right, title and interest shall vest according to inventorship as provided by United States patent law.

 

9.3                               Ownership of Regulatory Documentation and Approvals.  Subject to the licenses and rights of reference granted hereunder, as between the Parties, each Party shall own all right, title and interest in and to any Regulatory Approvals granted to, and any Regulatory Documentation developed by, or on behalf of such Party, its Affiliates, or sublicensees.

 

9.4                               Development and Use of Trademarks.  Emergent shall have the sole right to select the trademarks to be used with respect to the commercialization of the Licensed Products.  Without the express permission of Emergent, Aridis shall not, and shall not permit its Affiliates to use in their respective businesses, any trademark that is confusingly similar to, misleading or deceptive with respect to, or that dilutes any such trademark selected by Emergent, or any part of such trademarks.

 

9.5                               Prosecution of Aridis Patents.

 

9.5.1                     Reporting of New Inventions.  Aridis shall promptly report to Emergent in writing any new inventions which encompass Aridis Know-How or Aridis Patents and which may be reasonably deemed necessary or useful to Exploit Licensed Product in the

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Field during the term of this Agreement.  Emergent shall have the opportunity to review and comment on any patent applications relating to such new inventions prior to filing.

 

9.5.2                     Prosecution.  Aridis shall provide Emergent once per year with an updated list of all Aridis Patents, which shall include their filing date, priority date, grant date and filing status.

 

(a)                                 Subject to Section 9.5.5 and unless otherwise instructed by Emergent, Aridis shall diligently file and prosecute the Exclusive Field Aridis Patents in the countries and regions specified in Schedule 9.5.2 (provided that this obligation shall not apply to the BYU Technology or any other Aridis Patents which have already entered national phase prosecution prior to the Effective Date of this Agreement).  On issuance and unless otherwise instructed by Emergent, Aridis shall maintain Exclusive Field Aridis Patents in full force in such countries.  Emergent shall reimburse Aridis for the reasonable costs and expenses of filing, prosecution and maintenance of Exclusive Field Aridis Patents.  Aridis will, and will instruct its counsel to, cooperate fully with Emergent with respect to patent prosecution matters relating to Exclusive Field Aridis Patents.  Aridis shall provide Emergent with copies of all material submissions and correspondence with any patent authorities for the Exclusive Field Aridis Patents, and shall provide Emergent with an opportunity to comment upon any such correspondence such that Emergent will have a reasonable time to respond to such submissions, such period to be no less than thirty (30) days to the extent reasonably possible.  The aforementioned notwithstanding, with respect to applications that relate to BYU technology Aridis shall only be required to provide Emergent with such submissions, correspondence, and commenting rights if the applications are in its possession or control and all obligations herein (throughout this article 9) apply only to the extent of Aridis’ rights under the BYU License.

 

(b)                                 With respect to the Other Aridis Patents, Aridis shall be responsible, at its sole cost and expense, for obtaining, prosecuting and maintaining the Other Aridis Patents unless otherwise agreed.  Aridis shall use commercially reasonable efforts to obtain, prosecute and maintain Other Aridis Patents which are necessary or reasonably useful to Aridis in developing one or more Licensed Products and to Emergent in Exploiting one or more Licensed Products.  Aridis shall keep Emergent reasonably informed of the filing status and prosecution of such patents by forwarding copies of any material correspondence from patent authorities relating thereto indicating that patent rights in any given jurisdiction are granted, lost, forfeited, extended, restored, or terminated or otherwise altered.

 

9.5.3                     Interference, Opposition, Re-examination and Reissue of Aridis Patents.  In addition to Aridis’ other obligations pursuant to this Section 9, for the Aridis Patents:

 

(a)                                 Aridis shall inform Emergent of any request for, or filing or declaration of, any interference, opposition, revocation or re-examination, or equivalent to any of the foregoing actions, relating to any Aridis Patents within thirty (30) days of such event.  Aridis shall consult with Emergent to determine the appropriate course of action with respect to such proceeding;

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

(b)                                 Aridis shall not institute any re-examination, or reissue proceeding relating to any Exclusive Field Aridis Patent without the prior written consent of Emergent, which consent shall not be unreasonably withheld;

 

(c)                                  in connection with any interference, opposition, reissue, revocation or reexamination proceeding relating to Exclusive Field Aridis Patents or Other Aridis Patents that may be reasonably deemed necessary or useful to Exploit Licensed Product in the Field, whether commenced prior to the Effective Date or at any time prior to termination or expiration of this Agreement, Emergent and Aridis shall cooperate fully and shall provide each other with any information or assistance that either may reasonably request.  Aridis shall keep Emergent informed of developments in any such action and proceeding, including, to the extent permissible, the status of any settlement negotiations and the terms of any offer related thereto; and

 

(d)                                 each Party shall bear its own expense of any interference, opposition, reexamination, or reissue proceeding relating to the Aridis Patents.

 

9.5.4                     Patent Term Restoration.

 

(a)                                 For Exclusive Field Aridis Patents, Aridis shall seek patent term restoration where such term restoration appears to be available pursuant to 35 USC § 156 and/or pursuant to the equivalent provisions of other national intellectual property laws or supplemental protection certificates or their equivalents in any country in the Territory where applicable Aridis Patents have issued.

 

(b)                                 For Other Aridis Patents which may be reasonably deemed necessary or useful to Exploit Licensed Product in the Field, Emergent may request that Aridis seek patent term restoration where such term restoration appears to be available pursuant to 35 USC § 156 and/or pursuant to the equivalent provisions of other national intellectual property laws or supplemental protection certificates or their equivalents in any country in the Territory where applicable Aridis Patents have issued, provided however, that Aridis may refuse to seek such restoration if and when procuring such restoration is not deemed commercially reasonable.  In the event that Aridis refuses to seek patent term restoration under this section, Emergent may pay for such restoration to be pursued on Aridis’s behalf.  To the extent that such restoration is successful, the term for the extended patents (to the extent such term is thereby extended) shall be treated as Aridis Know-How for the purposes of Section 5 and subject to the royalty step- down provisions of Section 5.5

 

9.5.5                     Election not to File, Prosecute or Maintain.

 

(a)                                 For Exclusive Field Aridis Patents, if Aridis elects not (i) to pursue in any country the filing, prosecution (including any interferences, re-issue proceedings or re-examination) or maintenance (including the defense of oppositions) of such Aridis Patents; or (ii) to take any other action with respect to such Aridis Patents in a country that is necessary or useful to establish or preserve rights thereto, then Aridis shall notify Emergent promptly in writing to enable Emergent to meet any deadline by which an action must be taken to establish or preserve a right in such Aridis Patents in such country; provided, however, that the written notice shall be made at least thirty (30) days prior to such deadline.  Emergent shall have the right, but not the

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

obligation, to pursue the filing or registration, or support the continued prosecution or maintenance, of such Aridis Patents in such country through patent attorneys of its choice.  If Emergent elects to pursue such filing or registration, as the case may be, or continue such support, then Emergent shall notify Aridis of such election and Aridis shall reasonably cooperate with Emergent in this regard.  Such filings and registrations (including any rights that would have lapsed but for action taken by Emergent) with respect to the Exclusive Field Aridis Patents shall be treated as Aridis Know-How for the purposes of Section 5 and subject to the royalty step-down provisions of Section 5.5.

 

9.6                               Enforcement of Aridis Patents.

 

9.6.1                     Rights and Procedures.  If either Party determines that any Aridis Patent or Aridis Know-How is being infringed or misappropriated by a Third Party’s activities and that such infringement or misappropriation could affect the exercise by Emergent of its rights and obligations under this Agreement, it shall notify the other Party in writing and provide it with any evidence of such infringement or misappropriation that is reasonably available.  Aridis and Emergent shall meet and discuss in good faith the infringement, misappropriation or certification, and, if desired by Emergent and to the extent not inconsistent with rights granted by Aridis to Third Parties, shall in good faith negotiate terms under which Emergent may pursue infringement proceedings against the infringing, misappropriating, or certification filing Third Party.  Such negotiation shall take into account the scope of rights granted under this Agreement and allow pursuit of infringement to the extent impacting the rights granted hereunder, and shall provide appropriate sharing of any awards and settlement (in the case of BYU technology, including sharing with BYU), including any Emergent lost sales or lost profits, and appropriate reimbursement of Aridis and Affiliate and BYU and Emergent costs, if any.  All costs of such proceedings shall be borne by the instigating Party and recovered first out of any settlement or award.

 

9.6.2                     Certification Under FFDCA.  Aridis shall inform Emergent of any certification regarding any Aridis Patents that Aridis receives pursuant to either 21 U.S.C. §§355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or such similar laws as may exist in jurisdictions other than the United States, and shall provide Emergent with a copy of such certification within five (5) days of receipt.  Aridis’ and Emergent’s rights with respect to the initiation and prosecution of any legal action as a result of such certification or any recovery obtained as a result of such legal action shall be as defined in Section 9.6.1.

 

9.6.3                     Certification Under Drug Price Competition and Patent Restoration Act.  Aridis and Emergent each shall immediately give notice to the other of any certification of which they become aware that a Third Party files under the United States Drug Price Competition and Patent Term Restoration Act of 1984 claiming that Aridis Patents covering Licensed Products are invalid or that infringement will not arise from the manufacture, use or sale of Licensed Products by such Third Party.  Aridis’ and Emergent’s rights with respect to the initiation and prosecution of any legal action as a result of such certification or any recovery obtained as a result of such legal action shall be as defined in Section 9.6.1.

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

9.7                               Infringement of Third Party Rights.  Notification of Aridis Litigation.  In the event that a Third Party institutes a suit against Aridis or its Affiliates for Patent infringement, a declaratory action of noninfringement and/or invalidity, trade secret misappropriation or other Intellectual Property-related action, Aridis shall notify Emergent in writing within thirty (30) days of learning of such suit.

 

ARTICLE X
  Term; Termination; Remedies

 

10.1                        Term and Expiration.  This Agreement shall become effective as of the Effective Date and unless terminated earlier pursuant to this ARTICLE X shall continue in effect until expiration of all royalty obligations hereunder, following which Emergent shall have a fully paid, nonexclusive, irrevocable license under the Aridis Know How to Exploit Licensed Products.

 

10.2                        Termination by Emergent without Cause.  Emergent shall have the right to terminate this Agreement in its entirety or with respect to one or more countries and with respect to one or more Licensed Products, at any time in its sole discretion, upon thirty (30) days’ written notice to Aridis.

 

10.3                        Termination by Mutual Agreement of the Parties.  This Agreement may be terminated by mutual agreement of the Parties at any time during the term of this Agreement for any reason.

 

10.4                        Consequences of a Material Breach by Either Party.

 

10.4.1              In the event that either Party (the “Breaching Party”) shall be in material breach in the performance of any of its material obligations under this Agreement, in addition to any other right and remedy the other Party (the “Complaining Party”) may have, the Complaining Party shall be entitled to the remedies set forth in this Section 10.4 if such material breach remains uncured ninety (90) days’ after receipt by the Breaching Party of a notice of breach, specifying the breach; provided, however that if such breach cannot be cured within ninety (90) days but the Breaching Party is making a bona fide effort to cure such breach, the commencement of the remedies set forth in Section 10.4 shall be delayed in order to permit the Breaching Party a reasonable period of time to remedy the breach, which shall be negotiated in good faith by the Parties.

 

10.4.2              Any dispute between the Parties as to whether a material breach has occurred by one Party shall be resolved in accordance with Section 11.8.

 

10.4.3              In the event that it is determined pursuant to Section 10.4 and/or Section 11.8 that a material breach has occurred, the Complaining Party shall be entitled to the following:

 

(a)                                 In the event that Emergent is the Complaining Party and it is determined that Aridis has committed a material breach, the Parties agree that the royalties required pursuant to Section 5.4 shall be reduced by [***] and all subsequent milestone payment requirements

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

pursuant to Sections 5.2 and 5.3 shall be held until determination of monetary damages by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association then in effect (subject to the limitation of liability set out in Section 7.4)

 

(b)                                 In the event that Aridis is the Complaining Party and it is determined that Emergent has committed a material breach, the Parties agree that the remedy shall be monetary compensation; provided, however that Aridis in all circumstances retains the right to: (i) terminate this Agreement in the event that Emergent: (x) challenges the validity or enforceability of one of the Aridis Patents unless such challenge is in defense of a claim of or action for infringement or misappropriation brought by Aridis, (y) fails to pay five (5) consecutive payments required under Section 5 hereunder that are finally judicially determined to be due and owing or (z) fails to satisfy indemnification payment obligations that are finally judicially determined to be due and owing or (ii) pursue specific performance of obligations of Emergent in the event of a material breach of Article 3, Article 6, Article 7, and Section 8.2 (for avoidance of doubt, the Parties agree that Aridis retains all rights in law (to enforce patents, pursue infringement, or otherwise) whether pertaining to Emergent or any sublicensee or any other Third Party with respect to any practice of Aridis Know-how or Aridis Patents that is not authorized by the scope of the license grant in Article 3).  For a material payment breach, Aridis shall be entitled to an amount equal to any payment amounts outstanding plus [***] of the total outstanding payment amount.  For any other material breach, Aridis shall be entitled to an amount to be determined by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association then in effect (subject to the limitation of liability set out in Section 7.4).

 

10.4.4              Rights Cumulative.  The rights and remedies in this Section 10.4 shall be cumulative and in addition to any other rights or remedies that may be available hereunder.

 

10.5                        Accrued Rights; Survival; Work in Progress.

 

10.5.1              Accrued Rights.  Termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a Party prior to such termination or expiration.  Such termination or expiration shall not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement.

 

10.5.2              Survival.  Sections 4, 5.11, 5.12, 5.13, 10.7, 11.3, 11.5, 11.6, 11.7, 11.9, 11.11, 11.13, and this Section 10.5, and ARTICLE IV, VI, and VII, shall survive the termination or expiration of this Agreement for any reason.  In addition, Section 10.4 shall survive the termination of this Agreement by Emergent.

 

10.5.3              Work-in-Progress.  Upon termination of this Agreement by Aridis pursuant to Section 10.4, Emergent shall be entitled to (i) finish any work-in-progress for a period of one hundred eighty (180) days following termination, (ii) deliver Licensed Product under a Government Procurement Contract, and (iii) for the duration of the shelf-life of any inventory of the Licensed Products that remains on hand as of the date of the termination, sell such inventory so long as Emergent pays Aridis the royalties applicable

 

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Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

to said subsequent sales in accordance with the terms and conditions set forth in this Agreement.

 

10.6                        Termination upon Insolvency.  Either Party may terminate this Agreement upon thirty (30) days’ written notice if the other Party shall file in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of that Party or of its assets, or if the other Party proposes a written agreement of composition or extension of its debts, or if the other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or if the other Party shall propose or be a Party to any dissolution or liquidation, or if the other Party shall make an assignment for the benefit of its creditors.

 

10.7                        Rights in Bankruptcy.  All rights and licenses granted under or pursuant to this Agreement by Aridis are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code, licenses of right to “intellectual property” as defined under Section 101 of the United States Bankruptcy Code.  The Parties agree that Emergent and its Affiliates, as licensees of such rights under this Agreement, shall retain and may fully exercise all of their rights and elections under the United States Bankruptcy Code.  The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Aridis under the United States Bankruptcy Code, Emergent shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, which, if not already in Emergent’s possession, shall be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon Emergent’s written request therefor, unless Aridis elects to continue to perform all of its obligations under this Agreement or (b) if not delivered under clause (a) above, following the rejection of this Agreement by or on behalf of Aridis upon written request therefor by Emergent.

 

ARTICLE XI
  Miscellaneous

 

11.1                        Force Majeure.  Neither Party shall be held liable or responsible to the other Party or be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement, when such failure or delay is caused by or results from causes beyond the reasonable control of the non-performing Party, including fires, floods, embargoes, shortages, epidemics, quarantines, war, acts of war (whether war be declared or not), insurrections, riots, civil commotion, strikes, lockouts or other labor disturbances, acts of God or acts, omissions or delays in acting by any governmental authority.  The non-performing Party shall notify the other Party of such force majeure as soon as practicable after such occurrence by giving written notice to the other Party stating the nature of the event, its anticipated duration, and any action being taken to avoid or minimize its effect.  The suspension of performance shall be of no greater scope and no longer duration than is necessary and the non- performing Party shall use commercially reasonable efforts to remedy its inability to perform; provided, however, that in the event the suspension of performance continues for one hundred and eighty (180) days after the date of the occurrence, the Parties shall meet and discuss in good faith how best to proceed.

 

32

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

11.2                        Export Control Regulations.  The rights and obligations of the Parties under this Agreement shall be subject in all respects to United States laws and regulations, as shall from time to time govern (i) the license and delivery of technology and products between the United States and other countries in the Territory, or (ii) the disclosure in the United States to a foreign national, unless such individual has been granted U.S. citizenship, permanent residence, or asylee status (a “deemed export,” as that term is defined in 15 C.F.R. § 734.2(b)(2)(ii)), including in each case ((i) and (ii)) the United States Foreign Assets Control Regulations, Transaction Control Regulations and Export Control Regulations, as amended, and any successor legislation issued by the Department of Commerce, International Trade Administration, Office of Export Licensing.  Without in any way limiting the provisions of this Agreement, each Party agrees that, unless prior authorization is obtained from the Office of Export Licensing, it shall not export, re-export, transship, or “release” (as that term is defined in 15 C.F.R. § 734.2(b)(3)), directly or indirectly, to any country, any of the Information and Inventions or Confidential Information disclosed to it by the other Party if such export would violate the laws of the United States or the regulations of any department or agency of the United States Government.

 

11.3                        Assignment.  Without the prior written consent of the other Party, neither Party shall sell, transfer, assign, delegate, pledge or otherwise dispose of, whether voluntarily, involuntarily, by operation of law or otherwise, this Agreement or any of its rights or duties hereunder; provided, however, that either Party may, without such consent, assign the benefit of this Agreement and its rights hereunder to an Affiliate; provided, further, that either Party may, without the consent of the other, assign this Agreement and its rights and duties hereunder to the purchaser of all or substantially all of its assets associated with the business to which this Agreement relates, or any Third Party pursuant to or in connection with any agreement and plan of merger, acquisition, consolidation, reorganization, spin-off, split-up, liquidation or other similar corporate transaction.  Any attempted assignment or delegation in violation of the preceding sentence shall be void and of no effect.  Any assignment intended to be made by Aridis to an entity that at the time of such assignment is a competitor of Emergent with respect to the Exclusive Indications (“Competitor”) shall be contingent upon Aridis receiving written confirmation from the assignee of its agreement to abide by the obligations of Aridis hereunder.  In the event of a merger, acquisition, consolidation or other similar corporate transaction between Aridis and a Competitor, Aridis shall return to Emergent any documents, Information and Inventions, data and materials received from Emergent or relevant for the Exploitation of the Licensed Products.  All validly assigned and delegated rights and obligations of the Parties hereunder shall be binding upon and inure to the benefit of and be enforceable by and against the successors and permitted assigns of Emergent or Aridis, as the case may be.  In the event either Party seeks and obtains the other Party’s consent to assign or delegate to a Third Party its rights or obligations to the other Party, the assignee or transferee shall assume all obligations of its assignor or transferor under this Agreement.

 

11.4                        Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law, and if the rights or obligations of any Party under this Agreement will not be materially and adversely affected thereby, (a) such provision shall be fully severable, (b) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never compromised a part hereof, (c) the remaining provisions of this

 

33

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom, and (d) in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and reasonably acceptable to the Parties herein.  To the fullest extent permitted by applicable law, each Party hereby waives any provision of law that would render any provision hereof prohibited or unenforceable in any respect.

 

11.5                        Notices.  All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile (promptly confirmed by personal delivery or courier as provided herein) or sent by overnight courier, addressed as follows:

 

if to Aridis, to:
 Aridis Pharmaceuticals 
 5941 Optical Ct.
 San Jose, CA 95138
 Attn:  Vu L. Truong, PhD 
 Facsimile: 408-960-3822

 

with a copy for legal matters to:

 

if to Emergent, to:
 Emergent Product Development Gaithersburg Inc.
 300 Professional Drive
 Gaithersburg, MD 20879, U.S.A. 
 Attn:  President
 Facsimile:

 

with a copy to:
 Emergent BioSolutions Inc.
 2273 Research Blvd. Suite 400
 Rockville, MD 20850 
 Attention: General Counsel
 Facsimile No.: +1-301-795-1899

 

or to such other address as the Party to which notice is to be given may have furnished to the other Party in writing in accordance herewith.  Any such communication shall be deemed to have been given when delivered if personally delivered on a Business Day, when transmitted if sent by facsimile (in accordance with this Section 11.5) on a Business Day, and on the second Business Day after dispatch if sent by internationally-recognized courier.  It is understood and agreed that this Section 11.5 is not intended to govern the day-to-day business communications necessary between the Parties in performing their duties, in due course, under the terms of this Agreement.

 

34

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

11.6                        Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to the rules of conflict of laws thereof.  Either Party commencing an action, suit or proceeding under this Agreement may do so in a venue of the States of Delaware or California and the Parties consent to the jurisdiction of the courts of those States.

 

11.7                        Equitable Relief.  The Parties acknowledge and agree that the restrictions set forth in ARTICLE IV of this Agreement are reasonable and necessary to protect the legitimate interests of the other Party and that such other Party would not have entered into this Agreement in the absence of such restrictions, and that any violation or threatened violation of any provision of ARTICLE IV will result in irreparable injury to such other Party.  Each Party also acknowledges and agrees that in the event of a breach or threatened breach of any provision of ARTICLE IV, the non-breaching Party shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving irreparable injury or actual damages and without the necessity of having to post a bond, as well as to an equitable accounting of all earnings, profits and other benefits arising from any such violation.  The rights provided in the immediately preceding sentence shall be cumulative and in addition to any other rights or remedies that may be available to such Party.  Nothing in this Section 11.7 is intended, or should be construed, to limit either Party’s right to preliminary and permanent injunctive relief or any other remedy for a breach of any other provision of this Agreement.

 

11.8                        Dispute Resolution.  In the event that either Party provides the other with notice specifying a material breach or notice of intent to terminate this Agreement pursuant to Section 10.4, the Parties shall meet to resolve the matter by good faith negotiations after the delivery of the notice of breach.  If the matter has not been resolved within six (6) Business Days of either Party requesting negotiations, then either Party may elect to refer the matter to expert resolution, by submission to a neutral and qualified subject matter expert reasonably acceptable to both Parties.  The Parties shall agree with the expert on the terms of his/her appointment.  Such expert shall act as an expert and not an arbitrator.  The expert shall be obligated and expected to treat both Parties fairly in the process and both Parties shall have reasonable access rights to such expert.  The Parties shall cooperate with the expert’s reasonable requests for assistance in connection with its evaluation hereunder.  The expert shall make determination as to the presence or absence of material breach.  The decision of the independent expert shall be given in writing.  The Parties shall be bound by the expert’s determination, absent partiality or manifest error.

 

11.9                        No Benefit to Third Parties.  Except as expressly set forth in Section 2.6, the representations, warranties, covenants and agreements set forth in this Agreement are for the sole benefit of the Parties and their successors and permitted assigns, and they shall not be construed as conferring any rights on any other Persons.

 

11.10                 Further Assurances.  Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents and instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out more effectively the provisions and purposes hereof, or to better assure and confirm the rights and remedies of the other Party under this Agreement.

 

35

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

11.11                 English Language.  This Agreement shall be written and executed in the English language.  Any translation into any other language shall not be an official version thereof, and in the event of any conflict in interpretation between the English version and such translation, the English version shall control.

 

11.12                 References.  Unless otherwise specified, (a) references in this Agreement to any Article, Section, Paragraph, Schedule or Exhibit shall mean references to such Article, Section, Paragraph, Schedule or Exhibit of this Agreement, (b) references in any section to any clause are references to such clause of such section, and (c) references to any agreement, instrument or other document in this Agreement refer to such agreement, instrument or other document as originally executed or, if subsequently varied, replaced or supplemented from time to time, as so varied, replaced or supplemented and in effect at the relevant time of reference thereto.

 

11.13                 Independent Contractors.  It is expressly agreed that Aridis and Emergent shall be independent contractors and that the relationship between the Parties shall not constitute a partnership, joint venture or agency.  Neither Aridis nor Emergent shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other, without the prior consent of the other Party.  All persons employed by a Party shall be employees of such Party and not of the other Party and all costs and obligations incurred by reason of any such employment shall be for the account and expense of such Party.

 

11.14                 Waiver.  Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition.  The waiver by either Party of any right hereunder or of the failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise.

 

11.15                 Counterparts.  The Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

11.16                 Construction.  Except where the context otherwise requires, wherever used, the singular shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense.  The captions of this Agreement are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement.  The term “including” as used herein shall mean including, without limiting the generality of any description preceding such term.  The language of this Agreement shall be deemed to be the language mutually chosen by the Parties, and no rule of strict construction shall be applied against either Party.

 

11.17                 Entire Agreement; Modifications.  This Agreement, together with the Schedules hereto, and together with the Subcontract and Confidentiality Agreement between the Parties, sets forth and constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and all prior agreements, understanding, promises and representations, whether written or oral, with respect thereto are superseded hereby.  Each Party confirms that it is

 

36

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

not relying on any representations or warranties of the other Party except as specifically set forth herein.  No amendment, modification, release or discharge hereof shall be binding upon the Parties unless in writing and duly executed by authorized representatives of both Parties.

 

[SIGNATURE PAGE FOLLOWS.]

 

37

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

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

 

	
Emergent Product Development Gaithersburg Inc.
    	
Aridis Pharmaceuticals
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Daniel Abolun-Nabi
    	
 
    	
By:
    	
/s/ Eric Patzer
    
	
 
    	
 
    
	
Name: Daniel Abolun-Nabi
    	
Name: Eric Patzer
    
	
 
    	
 
    
	
Title: President and Chief Operating   Officer
    	
Title: President
    
					

 

Aridis License Signature Page

 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Schedule 1.6

 

Aridis Know-How

 

·                                          Excipients blending sequence involved in blending lead formulations for bovine rotavirus vaccine, Ad5 adenovirus vaccine, measles virus vaccine, and salmonella Ty21a bacteria vaccine

 

·                                          Optimal foam drying processing parameters related to chamber pressure and shelf temperature required to stabilize for bovine rotavirus vaccine, measles virus vaccine, and salmonella Ty21a bacteria vaccine

 

·                                          Optimal spray drying processing parameters related to atomization pressure, feed rate, inlet temperature, and outlet temperature required to stabilize for bovine rotavirus vaccine, measles virus vaccine, and salmonella Ty21a bacteria vaccine

 

·                                          Analytical methods to titer live rotavirus and live measles vaccines using fluorescent focus assay

 

·                                          Optimal plasticizers concentration range required to stabilize vaccines

 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Schedule 1.7

 

Aridis Patents

 

	
Patent Appl. No.
    	
 
    	
Filing Date
    	
 
    	
Country File Type
    	
 
    	
Status
    	
 
    	
Owner
    	
 
    	
Title
    
	
10/199,061
    	
 
    	
July 22, 2002
    	
 
    	
US non-provisional   which claims priority to U.S. Prov. App.
   60/317,881, filed Sept. 7, 2001
    	
 
    	
Issued:   09/05/2006 7,101,693
    	
 
    	
BYU
    	
 
    	
Plasticized Hydrophilic   Glasses for Improved Stabilization of Biological Agents
    
	
CA 2458794
    	
 
    	
September 6, 2002
    	
 
    	
Canadian National Phase   PCT/2002/028320 which claims priority to US Prov. App.
   60/317,881 (filed September 7, 2001) and U.S. Pat. App.
   10/199,061
    	
 
    	
Pending
    	
 
    	
BYU
    	
 
    	
Plasticized Hydrophilic   Glasses for Improved Stabilization of Biological Agents
    
	
EP 20020795489
    	
 
    	
September 6, 2002
    	
 
    	
European National Phase   PCT/2002/028320 which claims priority to US Prov. App.
   60/317,881 (filed September 7, 2001) and U.S. Pat. App.
   10/199,061
    	
 
    	
Pending
    	
 
    	
BYU
    	
 
    	
Plasticized Hydrophilic   Glasses for Improved Stabilization of Biological Agents
    
	
60995291
    	
 
    	
September 25, 2007
    	
 
    	
US & PCT
    	
 
    	
Conversion to utility   patent September 24th, 2008
    	
 
    	
Aridis
    	
 
    	
Formulations for   Preservation of Rotavirus
    
	
12266493
    	
 
    	
November 7th, 2007
    	
 
    	
US & PCT
    	
 
    	
Conversion to utility   patent November, 2008
    	
 
    	
Aridis
    	
 
    	
Sonic Low Pressure   Spray Drying
    
	
61/133,672
    	
 
    	
June 25th, 2007
    	
 
    	
US & PCT
    	
 
    	
Conversion to utility   patent June 25th,   2008
    	
 
    	
Aridis & Johns   Hopkins Univ.
    	
 
    	
Quick-dissolving Oral   Thin Film for Targeted Delivery of Therapeutic Agents
    
	
61175457
    	
 
    	
July 15th, 2008
    	
 
    	
US & PCT
    	
 
    	
Conversion to utility   occurred on May 4th, 2009
    	
 
    	
Aridis
    	
 
    	
Inhalable   Process & Formulation for Gallium Compounds
    
	
61242376
    	
 
    	
Sept. 14th, 2009
    	
 
    	
US
    	
 
    	
Conversion to utility   patent July, 2010
    	
 
    	
Aridis
    	
 
    	
Formulation For Room   Temperature Stabilization Of Live Vaccines
    
	
61247860
    	
 
    	
October 1st, 2009
    	
 
    	
US
    	
 
    	
Conversion to utility   patent October 1st, 2010
    	
 
    	
Aridis
    	
 
    	
Methods and   Compositions for Stabilization of Virus Vaccines
    

 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

Schedule 9.5.2

 

Aridis Patent Filing Countries and Regions

 

United States

European Patent Office (with validation of granted patents in UK, Germany, France, Italy, Belgium, Switzerland, Ireland)

Japan

India

China

 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

EXHIBIT A

 

Subcontract

 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended

 

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

 

	
Emergent Product Development Gaithersburg Inc.
    	
Aridis Pharmaceuticals
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
Name:
    	
Name:
    
	
 
    	
 
    
	
Title:
    	
Title:
    
					

 

Aridis License Signature PageExhibit 10.14

 

EXECUTION COPY

CONFIDENTIAL

 

 

 

JOINT VENTURE CONTRACT

 

 

IN RESPECT OF

 

 

SHENZHEN ARIMAB BIOPHARMACEUTICALS CO., LTD.

 

 

 

BY AND BETWEEN

 

 

SHENZHEN HEPALINK PHARMACEUTICAL GROUP CO.,

 

 

LTD. AND

 

 

ARIDIS PHARMACEUTICALS INC.

 

 

February 11, 2018

 

 

深圳市海普瑞药业股份集团有限公司

 

 

和

 

 

ARIDIS PHARMACEUTICALS INC.

 

.

 

关于

 

 

深圳市瑞迪生物医药有限公司

 

之

 

 

合资经营合同

 

 

2018年          月           日

 

 

TABLE OF CONTENTS  目录

 

	
TABLE OF CONTENTS 目录
    	
3
    
	
 
    	
 
    
	
BACKGROUND
    	
7
    
	
 
    	
 
    
	
CHAPTER 1 GENERAL   PROVISION
    	
8
    
	
 
    	
 
    
	
第1章  总则
    	
8
    
	
 
    	
 
    
	
Article 1   Definitions
    	
8
    
	
 
    	
 
    
	
第1条  定义
    	
8
    
	
 
    	
 
    
	
CHAPTER 2 ESTABLISHMENT   AND LEGAL STANDING
    	
13
    
	
 
    	
 
    
	
第2章  成立和法律地位
    	
13
    
	
 
    	
 
    
	
Article 2   Establishment and Legal Standing of the JV Company
    	
13
    
	
 
    	
 
    
	
第2条  合资公司的成立和法律地位
    	
13
    
	
 
    	
 
    
	
CHAPTER 3 PURPOSE AND   BUSINESS SCOPE
    	
15
    
	
 
    	
 
    
	
第3章  宗旨和经营范围
    	
15
    
	
 
    	
 
    
	
Article 3 Purpose   and Business Scope
    	
15
    
	
 
    	
 
    
	
第3条  宗旨和经营范围
    	
15
    
	
 
    	
 
    
	
CHAPTER 4 TOTAL AMOUNT   OF INVESTMENT AND REGISTERED CAPITAL
    	
16
    
	
 
    	
 
    
	
第4章  投资总额和注册资本
    	
16
    
	
 
    	
 
    
	
Article 4 Total   Investment
    	
16
    
	
 
    	
 
    
	
第4条  投资总额
    	
16
    
	
 
    	
 
    
	
ARTICLE 5   REGISTERED CAPITAL
    	
16
    
	
 
    	
 
    
	
第5条  注册资本
    	
16
    
	
 
    	
 
    
	
CHAPTER 5 BUSINESS   OPERATION OF JOINT VENTURE
    	
22
    
	
 
    	
 
    
	
第5章  合资公司的业务经营
    	
22
    
	
 
    	
 
    
	
Article 6 Business   Operation of Joint Venture
    	
22
    
	
 
    	
 
    
	
第6条  合资公司的业务经营
    	
22
    

 

 

	
CHAPTER 6   RESPONSIBILITIES OF EACH PARTY AND REPRESENTATIONS AND WARRANTIES
    	
23
    
	
 
    	
 
    
	
第6章  各方的责任和陈述与保证
    	
23
    
	
 
    	
 
    
	
Article 7   Responsibilities of Each Party
    	
23
    
	
 
    	
 
    
	
第7条  各方的责任
    	
23
    
	
 
    	
 
    
	
ARTICLE 8 REPRESENTATIONS   AND WARRANTIES
    	
25
    
	
 
    	
 
    
	
第8条  陈述与保证
    	
25
    
	
 
    	
 
    
	
CHAPTER 7 THE BOARD AND   SUPERVISORS OF THE JV COMPANY
    	
26
    
	
 
    	
 
    
	
第7章  合资公司的董事会和监事
    	
26
    
	
 
    	
 
    
	
Article 9 Board
    	
26
    
	
 
    	
 
    
	
第9条  董事会
    	
26
    
	
 
    	
 
    
	
ARTICLE 10 POWER   OF THE BOARD
    	
28
    
	
 
    	
 
    
	
第10条  董事会的权力
    	
28
    
	
 
    	
 
    
	
ARTICLE 11   MEETINGS OF THE BOARD
    	
31
    
	
 
    	
 
    
	
第11条  董事会会议
    	
31
    
	
 
    	
 
    
	
ARTICLE 12   SUPERVISORS
    	
35
    
	
 
    	
 
    
	
第12条  监事
    	
35
    
	
 
    	
 
    
	
ARTICLE 13   MANAGEMENT PERSONNEL
    	
36
    
	
 
    	
 
    
	
第13条  管理人员
    	
36
    
	
 
    	
 
    
	
ARTICLE 14   EMPLOYEES AND UNION
    	
38
    
	
 
    	
 
    
	
第14条  员工和工会
    	
38
    
	
 
    	
 
    
	
ARTICLE 15   FINANCING AND ACCOUNTING
    	
39
    
	
 
    	
 
    
	
第15条  财务和会计
    	
39
    
	
 
    	
 
    
	
ARTICLE 16 PROFIT   DISTRIBUTION
    	
43
    
	
 
    	
 
    
	
第16条  利润分配
    	
43
    
	
 
    	
 
    
	
CHAPTER 8   NON-COMPETITION AND CONFIDENTIALITY
    	
45
    
	
 
    	
 
    
	
第8章  竞业禁止与保密
    	
45
    

 

 

	
Article 17   Non-Competition
    	
45
    
	
 
    	
 
    
	
第17条  竞业禁止
    	
45
    
	
 
    	
 
    
	
Article 18   Confidentiality
    	
45
    
	
 
    	
 
    
	
第18条  保密
    	
45
    
	
 
    	
 
    
	
CHAPTER 9 BUSINESS TERM
    	
48
    
	
 
    	
 
    
	
第9章  经营期限
    	
48
    
	
 
    	
 
    
	
Article 19   Business Term
    	
48
    
	
 
    	
 
    
	
第19条  经营期限
    	
48
    
	
 
    	
 
    
	
CHAPTER 10 TERMINATION
    	
49
    
	
 
    	
 
    
	
第10章  合同终止
    	
49
    
	
 
    	
 
    
	
Article 20   Termination
    	
49
    
	
 
    	
 
    
	
第20章  合同终止
    	
49
    
	
 
    	
 
    
	
Article 21 FORCE   MAJEURE
    	
51
    
	
 
    	
 
    
	
第21条  不可抗力
    	
51
    
	
 
    	
 
    
	
CHAPTER 11 LIABILITIES FOR   BREACH OF CONTRACT
    	
53
    
	
 
    	
 
    
	
第11章  违约责任
    	
53
    
	
 
    	
 
    
	
Article  22 Breach   of Contract
    	
53
    
	
 
    	
 
    
	
第22条  违约
    	
53
    
	
 
    	
 
    
	
Article 23   Defaults and Remedies
    	
53
    
	
 
    	
 
    
	
第23条  违约与救济
    	
53
    
	
 
    	
 
    
	
Article 24   Liabilities for Breach
    	
54
    
	
 
    	
 
    
	
第24条  违约责任
    	
54
    
	
 
    	
 
    
	
CHAPTER 12 GOVERNING   LAW AND DISPUTE RESOLUTION
    	
54
    
	
 
    	
 
    
	
第12章  法律管辖和争议解决
    	
54
    
	
 
    	
 
    
	
Article 25   Governing Law
    	
54
    
	
 
    	
 
    
	
第25条  法律管辖
    	
54
    
	
 
    	
 
    
	
Article 26 Dispute   Resolution
    	
54
    

 

 

	
第26条  争议解决
    	
54
    
	
 
    	
 
    
	
CHAPTER 13   MISCELLANEOUS
    	
55
    
	
 
    	
 
    
	
第13章  其他规定
    	
55
    
	
 
    	
 
    
	
Article 27   Miscellaneous
    	
55
    
	
 
    	
 
    
	
第27条  其他规定
    	
55
    

 

 

This Joint Venture Contract (this “Contract”) is entered into by and between the following parties on       , 2018 in Shenzhen, the People’s Republic of China.

 

本合资经营合同(“本合同”)由以下各方于2018 年   月   日在中国深圳签订。

 

Shenzhen Hepalink Pharmaceutical Group Co., Ltd, a listed company limited by shares incorporated under the PRC Laws, with its registered office at 21 Langshan Road, Songpingshan, Nanshan District, Shenzhen, the PRC (“Hepalink”); and

 

深圳市海普瑞药业股份集团有限公司,一家根据中国法律成立的上市股份有限公司,  其注册地址为中国深圳市南山区松坪山郎山路21号(“海普瑞”);和

 

Aridis Pharmaceuticals Inc., a Delaware, USA based private company with a business address at 5941 Optical Court, San Jose, California 95138, the USA (“Aridis”).

 

Aridis Pharmaceuticals Inc.,一家总部位于美国特拉华州的公司,地址为:5941 Optical Court, San Jose, California, the USA 邮编: 95138(”Aridis”)。

 

Hepalink and Aridis are hereinafter referred to as “Parties” collectively, or a “Party” individually.

 

海普瑞和Aridis以下合称为”各方”或”双方”,或单独称为”一方”。

 

BACKGROUND

 

签约背景

 

Hepalink and its affiliates and subsidiaries have significant experience and resources in pharmaceutical product development. Aridis focuses on the development of novel, differentiated therapies for infectious diseases. Hepalink and Aridis have discussed the possibility and benefits of establishing an equity joint venture  in  the  PRC  for  developing  and  commercializing  the  products  of  therapies for infectious diseases.

 

海普瑞及其下属企业在药品研发发面拥有丰富的经验和资源。Aridis致力于开发针对传染疾病的新颖的、不同的治疗方法。海普瑞和Aridis已商讨在中国建立合资公司以开发针对传染疾病的治疗产品并进行市场推广的可能性并获取收益。

 

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NOW, THEREFORE, the Parties hereby agree to enter into this Contract as follows:

 

现此,各方兹同意签订本合同如下:

 

CHAPTER 1 GENERAL PROVISION

 

第1章  总则

 

Article 1 Definitions

 

第1条  定义

 

The capitalized terms as used in this Contract shall have the following meanings:

 

本合同中所使用的以粗体标示的术语具有如下含义:

 

“AIC” shall mean the Administration for Industry and Commerce of the PRC or its delegated local counterpart.

 

“工商局”指中国国家工商行政管理总局或其授权的地方部门。

 

“Articles of Association” shall mean the articles of association of the JV Company in the form attached hereto as Appendix A, which may be amended by the Parties from time to time pursuant to the provisions thereof.

 

“章程”指如本合同附录A所示格式的合资公司的章程,其可由各方根据其规定不  时修订。

 

“Affiliate” shall mean any business entity, which directly or indirectly,

 

controls, is controlled by, or is under the common control with, Hepalink or Aridis, at the relevant time; For the purposes of this definition, a business entity shall be deemed to “control” another entity if more than fifty percent (50%) of the voting stock of the latter business entity, ordinarily entitled to vote in the election of directors (or, if there is no such stock, more than fifty percent (50%) of the ownership of or control in the latter business entity) is held by and consolidated in the annual accounts of the controlling business entity.

 

“关联公司”指在相关时点直接或间接地控制海普瑞或Aridis、受海普瑞或 Aridis控制、或与海普瑞或Aridis受共同控制的任何商业实体。为本定  义之目的,”控制”指某商业实体持有另一商业实体超过百分之五十(50%)有权投  票选举董事的股份(或者在该等股份缺失的情形下,持有另一商业实体超过百分  之五十(50%)的所有权或控制权),且该等股份被并入前一商业实体的年度财务  报表。

 

“Bankruptcy Event” means the filing by the JV Company of a petition in bankruptcy according to the PRC Laws or the decision of a competent PRC court that bankruptcy procedures concerning the JV Company shall be initiated upon

 

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application of any creditor(s) of the JV Company.

 

“破产事件”指由合资公司根据中国法律提交破产申请书,或者有管辖权的中国法  院根据合资公司之任何债权人的申请而作出合资公司须开始其破产程序的裁决。

 

“Board” shall have the meaning set forth in Article 9.1.

 

“董事会”具有第9.1款中规定的含义。

 

“Board Meetings” shall mean meetings of the Board convened in accordance with the provisions of this Contract and the Articles of Association, including both Regular Board Meetings and Interim Board Meetings.

 

“董事会会议”指根据本合同和章程之规定召开的董事会的会议,包括例行董事会会议和临时董事会会议。

 

“Business Day” shall mean a day that is not a Saturday, a Sunday or any public holiday in the PRC and the United States of America.

 

“营业日”指除周六、周日或中国和美国的公众假日之外的日子。

 

“Business License” shall mean the business license of the JV Company issued by the competent AIC evidencing the incorporation of the JV Company.

 

“营业执照”指主管工商局签发的、证明合资公司成立的、合资公司的初始营业执照。

 

“Business Plan” shall have the meaning set forth in Article 10.2.

 

“经营计划”具有第10.2款中规定的含义。

 

“Business Term” shall have the meaning set forth in Article 16.1.

 

“经营期限”具有第16.1款中规定的含义。

 

“CEO” shall have the meaning set forth in Article 13.1.

 

“CEO”具有第13.1款中规定的含义。

 

“Chairman” shall have the meaning set forth in Article 9.2.

 

“董事长”具有第9.2款中规定的含义。

 

“Deadlock” shall have the meaning set forth in Section 11.10.

 

“僵局”具有第11.10款中规定的含义。

 

“Director(s)”  shall  mean  an individual director or all the  directors  of  the  Board  as  respectively appointed  by  the  Parties  in accordance with this Contract and the Articles of Association.

 

“董事”指各方根据本合同和章程委派的董事会的董事。

 

“Election Notice” shall have the meaning as set forth in Article 5.10.

 

“选择通知”应具有第5.10条规定的含义。

 

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“Electing Party” shall have the meaning as set forth in Article 5.10.

 

“选择方”应具有第5.10条规定的含义。

 

“Equity Interest(s)” shall mean, with respect to any Person, an ownership interest in the registered capital, capital reserve, capital stock or the corresponding distribution of the JV Company.

 

“股权利益”指就任何人而言,在合资公司的注册资本、资本公积、股本或相应分配中拥有的所有者权益。

 

“Establishment Date” shall  mean  the date on which the JV Company’s Business License is issued by the competent AIC evidencing its incorporation.

 

“成立日期”指主管工商局颁发证明合资公司成立之合资公司的营业执照之日。

 

“Fair Market Value” shall have the meaning as set forth in Article 5.4.

 

“公平市场价格”应具有第5.4条规定的含义。

 

“Field of Use” shall mean all uses, including the diagnosis, prevention and treatment of diseases and other conditions, in all indications related to infections in humans.

 

“使用领域”应指包括对疾病和其他健康状况的诊断、预防和治疗在内的所有关于人类传染相关的一切适应症中的使用。

 

“Force Majeure Event” shall have meaning as set forth in Article 21.

 

“不可抗力事件”应具有第21条所规定的含义。

 

“Governmental Entity(ies)” shall mean any court or government or governmental agency, commission, entity, instrumentality or governmental subdivision or its delegated counterparts.

 

“政府机构”指任何法院或政府、或政府机构、委员会、实体、部门或政府分部或  其授权的相应部门。

 

“Hindered Party” shall have the meaning as set forth in Article 21.

 

“受阻方”应具有第21条规定的含义。

 

“HKIAC” shall have the meaning set forth in Article 26.2.

 

“香港国际仲裁中心”具有第26.2款中规定的含义。

 

“Interim Board Meeting” shall have the meaning set forth in Article 11.4.

 

“临时董事会会议”具有第11.4款中规定的含义。

 

“JV Company” shall   mean   the   Sino-foreign   equity   joint   venture   company

 

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contemplated to be incorporated by the Parties in accordance with this Contract.

 

“合资公司”指各方拟根据本合同的约定设立的一家中外合资经营企业。

 

“Laws” shall mean all national, provincial, local or foreign laws, ordinances, rules, statutes and regulations.

 

“法律”指所有国家的、省级的、地方的或外国的法律、法令、法规、规章和规定。

 

“Liabilities” shall mean with respect to any Person, means any liabilities of such Person of any kind, whether accrued or absolute, contingent or otherwise, matured or unmatured.

 

“负债”指就任何人而言,指它所承担的债务,无论何种性质,无论是衍生的、绝对的、或有的或其他性质的,也无论是到期或将到期的。

 

“Licensed Technology” shall mean “Licensor Technology” as defined in the Technology License and Collaboration Agreement.

 

“被许可技术”应具有《技术许可和合作协议》规定的”许可人技术”含义。

 

“Meeting Agenda” shall have the meaning set forth in Article 11.5.

 

“会议议程”具有第11.5款中规定的含义。

 

“Offered Price” shall have the meaning as set forth in Article 5.10.

 

“要约价格”应具有第5.10条规定的含义。

 

“Offer Notice” shall have the meaning as set forth in Article 5.10.

 

“要约通知”应具有第5.10条规定的含义。

 

“Offered Securities” shall have the meaning as set forth in Article 5.10.

 

“要约股权”应具有第5.10条规定的含义。

 

“Offering Party” shall have the meaning as set forth in Article 5.10.

 

“要约方”应具有第5.10条规定的含义。

 

“Officers” shall have the meaning set forth in Article 13.1.

 

“高级管理人员”具有第13.1款中规定的含义。

 

“Permitted Transferee(s)” shall mean any Affiliate of a Party equity interest; provided, that in no event shall any Transfer be made to a competitor of the JV Company without the consent of the Board.

 

“许可的受让方”指一方的关联公司;但前提是任何转让不得在未得到董事会同意的情况下转让于合资公司的竞争者。

 

“Person” shall  mean  any  individual,  partnership,  joint  venture,  limited

 

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liability company, corporation, trust, unincorporated organization or other entity.

 

“人”指任何个人、合伙、合资企业、有限责任公司、公司、信托组织、非公司  社团或组织。

 

“PRC” or “China” shall mean the People’s Republic of China, and solely for purpose of this Contract, excluding Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan.

 

“中国”指中华人民共和国,且仅为本合同之目的,不包括香港特别行政区、澳门  特别行政区和台湾。

 

“Proposed Transferee” shall have the meaning as set forth in Article 5.10.

 

“拟受让方”具有第5.10条规定的含义。

 

“Record-filing Authority” shall mean the PRC Ministry of Commerce or its delegated local counterpart.

 

“备案机关”指有权批准本合同及其任何修订案的中国商务部或者其授权的地方机关。

 

“Regular Board Meeting” shall have the meaning set forth in Article 11.3.

 

“例行董事会会议”具有第11.3款中规定的含义。

 

“Renminbi” or “RMB” shall mean Renminbi yuan, the legal tender of the PRC.

 

“人民币”指人民币元,中国的法定货币。

 

“Reserved Matters” shall have the meaning set forth in Article 10.2.

 

“保留事项”具有第10.2款中规定的含义。

 

“Right of First Refusal” shall have the meaning set forth in Article 5.10.

 

“优先购买权”具有第5.10款中规定的含义。

 

“Refusal Period” shall have the meaning set forth in Article 5.10.

 

“优先期”具有第5.10款中规定的含义。

 

“Supervisor(s)” shall have the meaning set forth in Article12.1.

 

“监事”具有第12.1款中规定的含义

 

“Technology License and Collaboration Agreement” shall mean the Technology License and Collaboration Agreement to be entered into by and between Aridis and the JV Company, the form of which is attached hereto as Appendix B.

 

“技术许可与合作协议”指Aridis与合资公司之间拟签署的格式如附件B所示

 

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的《技术许可和合作协议》。

 

“Territory” shall mean the Greater China area, for the purpose of this Contract, including Mainland China, Hong Kong, Macau, and Taiwan.

 

“区域”指大中华区域,为本合同之目的,包含中国大陆、香港、澳门和台湾地区。

 

“Transfer” means any direct or indirect sale, transfer, assignment, pledge, mortgage, exchange, hypothecation, grant of a security interest, other disposition or encumbrance of an interest (whether with or without consideration, whether voluntarily or involuntarily or by operation of the Laws) or the acts thereof or other conveyance of legal or beneficial interest, including rights to vote and to receive dividends or other income with respect thereto, or any agreement or commitment to do any of the foregoing, including a change of control of any Party (or any one or more parent entities of such Party) that results in an indirect Transfer of ownership.

 

“转让”指任何直接或间接以出售、转让、让与、质押、抵押、交换、抵押索赔、授予担保权益、或其他处置或者担保方式处置一项权益(不论是否有对价,不论自愿或非自愿或由于法律而为)或者其行为或者其他构成法律上或者受益上的权益(包括与其相关的投票权和收到分红或者其他收入的权利),或者任何可以执行任何上述行为的协议或者承诺,包括可导致间接转让所有权的任何一方的控制改变(或该方的任何一个或多个的母公司)。

 

“USD” shall mean U.S. Dollar, the legal tender of the United States of America.

 

“美元”指美元,即美国的法定货币。

 

CHAPTER 2 ESTABLISHMENT AND LEGAL STANDING

 

第2章  成立和法律地位

 

Article 2 Establishment and Legal Standing of the JV Company

 

第2条  合资公司的成立和法律地位

 

2.1               The Parties agree to jointly establish the JV Company according to the PRC Laws, this Contract, and the Articles of Association in Appendix A.

 

各方同意根据中国法律、本合同和章程共同成立合资公司。

 

2.2               The Parties shall sign and deliver the Articles of Association upon execution of this Contract and submit it to the competent Record-filing Authority together with this Contract for record filing. If there is any discrepancy between the Articles of Association and  this  Contract,  the  provisions  under  this

 

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Contract shall  prevail. Further, in that event, the Parties shall promptly amend the Articles of Association to conform to the provisions of this Contract.

 

各方应在签署本合同之时签署和交付章程,并将章程与本合同一并提交至备案机关备案。若章程与本合同之间存在任何不一致之处,应以本合同项下的规定为准。此外,在该等情况下,各方应立即修订章程,以使其符合本合同的规定。

 

2.3               The name of the JV Company shall be 深圳市瑞迪生物医药有限公司in Chinese and Shenzhen Arimab Biopharmaceuticals Co., Ltd. in English.  The name of the JV Company shall be subject to the name clearance with the competent AIC.

 

合资公司的中文名称为深圳市瑞迪生物医药有限公司,英文名称为Shenzhen Arimab Biopharmaceuticals Co., Ltd.。合资公司的名称以主管工商局进行的名称预核准为准。

 

2.4               The registered address of the JV Company shall be at Room 5044, No. 21, Langshan Lu, Song Ping Shan, Nanshan District, Shenzhen, China. The definitive registered address of the JV Company shall be the address as the competent AIC approves.

 

合资公司的注册地址为中国深圳市南山区松坪山朗山路21号5044。合资公司的注册地址最终将以工商局核准的地址为准。

 

2.5               The JV Company shall be a legal-person enterprise under the Laws. The JV Company shall comply with Laws, and its benefits are protected by the Laws.

 

合资公司应为中国法律规定的企业法人。合资公司应遵守中国法律,其权益  受中国法律保护。

 

2.6               The JV Company is a limited liability company.  The JV Company shall be liable for all of its Liabilities and obligations to the extent of its own assets.  Each Party is only liable to the JV Company up to the share of the registered capital of the JV Company that such Party shall subscribe for as set forth hereunder.  Creditors of the JV Company (including taxation or other authorities) shall have no recourse whatsoever against either Party for the Liabilities of the JV Company.  The JV Company shall indemnify and hold each Party harmless against any and all losses, damages, or Liabilities suffered by such Party in respect of any third party claims arising out of the operation of the JV Company except to the extent arising from the breach by such Party of this Contract.

 

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合资公司应组建为一家在中国法律下具有法人地位的有限责任公司,以其所有资产为限向其债权人承担责任。在任何情况下,每一方就合资公司或其债务或责任而言的责任,应以该方在本合同项下认缴的合资公司注册资本金额  为限。合资公司的债权人(包括税务或者其他政府机关)不得因任何愿意就公司的责任向任何一方行使任何追索权。合资公司应当就一方遭受的任何第三方就合资公司经营而提起的请求而造成的任何损失、损害、或者责任赔偿该方,并使该方免受此类损害,除非是源于该方在本合同项下的违约所产生。

 

CHAPTER 3 PURPOSE AND BUSINESS SCOPE

 

第3章  宗旨和经营范围

 

Article 3 Purpose and Business Scope

 

第3条  宗旨和经营范围

 

3.1               The Parties contemplated that the purpose of the JV Company is for the development and commercialization of the Licensed Technology for the Field of Use in the Territory, and for the purpose of engaging in all activities and transactions that are necessary in furtherance of that purpose.  JV Company shall not engage in any other activity except as set forth above or otherwise provided under the Technology License and Collaboration Agreement, unless approved by the Board and subject to the unanimous consent provisions of Article 10.2 below.

 

双方拟定合资公司的宗旨为在区域内的为使用领域对被许可技术进行开发和商业化,以及为实现该宗旨而必须的所有行动及交易。合资公司不得在上述宗旨或技术许可和合作协议规定之外经营任何其他活动,除非根据本合同10.2条规定获得董事会的批准。

 

3.2               For the purpose of the business registration of the JV Company with the competent AIC only and without prejudice to the other provisions of this Contract, all provisions of the Articles of Association (as set forth in Appendix A hereto), and all provisions of the Technology License and Collaboration Agreement (as set forth in Appendix B hereto), the business scope of the JV Company is  “[develop, manufacture, import and distribute of the products of AR-101 and AR-301]” (detailed description of the business scope and business operation are subject to the specific requirements of the competent AIC, without any modifications or conditions that are reasonably unacceptable to either Party).

 

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仅为合资公司向主管工商局进行商事登记的目的,在不影响本合同其它条款  及附件A章程和附件B技术许可和合作协议中所有条款的前提下,合资公司的经营范围是【开发、生产、进口和经销AR-101 和 AR-301产品。】   (营业范围和业务经营的详细描述,须根据主管工商局的具体要求而定,但不得强加任意一方合理不可接受的任何更改或者条件)。

 

CHAPTER 4 TOTAL AMOUNT OF INVESTMENT AND REGISTERED CAPITAL

 

第4章  投资总额和注册资本

 

Article 4 Total Investment

 

第4条  投资总额

 

4.1               The total investment of the JV Company shall be US$29,000,000.

 

合资公司的投资总额为2900万美元。

 

ARTICLE 5 REGISTERED CAPITAL

 

第5条  注册资本

 

5.1               The registered capital of the JV Company shall be USD 11,760,000, among which:

 

合资公司的注册资本为 1176万美元,其中:

 

(a)                              Hepalink subscribes for and shall contribute USD 6 million (in equivalent RMB amount according to the applicable RMB-USD exchange rate published by People’s Bank of China on the date hereof) in cash, and shall comprise fifty-one percent (51%) of the total registered capital of the JV Company;

 

海普瑞认缴出资600万美元现金或现汇(或本合同签署当日中国人民银行发布的人民币兑美元的适用汇率折算的等额人民币),占合资公司总注册资本的百分之五十一(51%)。

 

(b)                              Aridis subscribes for and shall contribute USD 5.76 million, among which (i) USD 1 million will be contributed in cash, and (ii) the remaining USD 4.76 million will be contributed through the grant to the JV Company of a license for the Field of Use of the Licensed Technology (which includes cell lines for AR301 and  AR101 production,   culture media, purification process and product technology, surrounding formulation technology, current and future know-how and clinical data and similar) in accordance with the terms and conditions of the Technology License and Collaboration Agreement (as

 

16

 

set forth in Appendix B hereto),and shall comprise forty-nine percent (49%) of the total registered capital of the JV Company;

 

Aridis认缴出资576万美元,其中:(1)100万美元以现金形式出资,(2)其余476万美元,根据技术许可和合作协议(附件B)项下的条款和条件,以授予合资公司为了使用领域的被许可技术的许可(该许可包括了AR301和AR101生产的细胞系、培养基、提纯过程和产品技术、周边配方技术、现有的和未来的专有技术和临床数据及其类似)的方式出资,占合资公司总注册资本的百分之四十九(49%)  。

 

5.2               The initial capital contributions to be made by the Parties shall be paid by each Party within sixty (60) days of the Establishment Date.

 

各方认缴的合资公司的初始出资额应在成立日期之日起60日内缴清。

 

5.3               The JV Company shall not borrow any funds from domestic or international banks or other financial institution or any third party, unless unanimously approved by the Board according to Article 10.2.   Unless otherwise provided under this Contract, neither Party shall be obligated to lend funds to the JV Company or to guarantee loans from third parties or financial institutions.

 

合资公司不得向国内或国际银行或其他金融机构或任何第三方借取任何资金,除非根据第10.2条经由董事会一致同意。除非本合同另有规定,任何一方无义务给予合资公司贷款或者为其向第三方或金融机构的贷款提供担保。

 

5.4               In the event the JV Company proceeds with its future capital fundraising, which (i) should not be earlier than Jan 1, 2019, (ii) top-line clinical trial results of the first global AR-301 Phase 3 study is available, (iii) CFDA approval for phase III clinical trial in China mainland is granted, and (iv) Aridis has not breached any of its representations, warranties and covenants under Article 9 of the Technology License and Collaboration Agreement that could trigger termination of such Technology License and Collaboration Agreement, and as approved by the Board according to Article 10.2,  Hepalink is obligated to make further investment of US$9,000,000 (or equivalent RMB amount) into the JV Company.  Upon closing of such US$9,000,000 investment by Hepalink, the percentages of Equity Interests of Hepalink and Aridis at the JV Company shall be accordingly adjusted according to the following formula:

 

若合资公司继续其未来的股份融资,只要(1)该融资不得早于2019年1月1日,(2)可获得第一次全球AR-301第3阶段研究的临床试验结果

 

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的关键性总结,(3)中国大陆的临床试验第3阶段已获得中国国家药监局批准,且(4)Aridis不存在任何可能导致技术许可和合作协议终止的违反该协议第9条之陈述、保证和承诺的行为,那么根据董事会依据第10.2条的批准,海普瑞有义务向合资公司进一步投资900万美元(或等额人民币)。海普瑞的该等900万美元投资交割后,海普瑞和Aridis在合资公司的股权利益的比例应根据下面的公式进行相应调整:

 

·                  Hepalink adjusted Equity Interest =  (51% * Fair Market Value + US$9 million) / (Fair Market Value + US$9 million);

 

海普瑞调整后的股权利益=  (51% * 公平市场价格+ 900万美元) / (公平市场价格+ 900万美元)

 

·                  Aridis adjusted Equity Interest =  (49% * Fair Market Value) / (Fair Market Value + US$9 million)

 

Aridis调整后的股权利益=  (49% * 公平市场价格) / (公平市场价格+ 900万美元)

 

“Fair Market Value” means the fair market value of the JV Company as a whole assuming a full and fair marketing process and shall be determined by an independent, nationally recognized valuation firm mutually agreed to by the Parties.  The valuation of the third party valuation firm shall be binding on them and all expenses related to such valuation shall be borne by the JV Company.

 

“公平市场价格”指假设存在一个完全的和公平的市场交易过程时合资公司作为一个整体的公平的市场价格,且该公平市场价值须有一家双方共同同意的独立的、全国公认的评估事务所来决定。该第三方评估事务所的评估对各方存在约束力,且所有相关评估的费用由合资公司来承担。

 

5.5               A Party shall not mortgage or otherwise encumber all or any part of its contribution to the registered capital of the JV Company without of the prior written consent of the other Parties.

 

未经另一方的书面同意,一方不得将其出资的合资公司的注册资本全部或者任何部分设定抵押或以其他方式提供担保。

 

5.6               The JV Company shall issue to each Party investment certificate based upon the capital they subscribed respectively. The investment certificates shall include the following items:

 

合资公司应根据各方分别认缴的出资数额向各方出具出资证明书,出资  证明书应载明以下事项:

 

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(a)              name of the JV Company;

 

合资公司的名称;

 

(b)              registered capital of the JV Company;

 

合资公司的注册资本;

 

(c)               Establishment Date of the JV Company;

 

合资公司的成立日期;

 

(d)              date and amount of the capital contribution;

 

出资日期和出资金额;

 

(e)               date of issuance and the numbering of the investment certificate;

 

出资证明书的签发日期和编号;

 

(f)                seal of the JV Company; and

 

合资公司的公章;以及

 

(g)               signature of the Chairman of the Board

 

董事长的签名。

 

5.7                The JV Company shall record the shares held by the Parties in its shareholders’ register. The shareholders’ register shall include information such as name and address, capital contribution, and the number of the investment certificates  of respective Parties. In the event of any change to such information, the JV Company shall promptly update the shareholders’ register and, where required under the Laws, file such change with the competent AIC in a timely manner.

 

合资公司应在其股东名册中记载各方的持股情况。股东名册应包含各方  各自的名称及地址、出资额和出资证明书编号等信息。如果此类信息发  生任何变更,合资公司应立即更新股东名册,并在中国法律要求时及时  向主管工商局就该等变更进行备案。

 

5.8                Should a Party fail to perform any capital contribution obligation under this Article 5 and further fail to rectify it within thirty (30) days of the due date, that Party shall pay to the JV Company default interest for the overdue payment at a rate equal to the then applicable interest rate of one (1) year term loans as published by the People’s Bank of China and pay to the other Parties default penalty for the overdue payment at the rate of 0.05% per day of default, both from the first day of overdue until the overdue payment is fully made. If the defaulting Party fails to pay such default interest, the JV Company will be entitled to deduct such interest from the profit or any other amounts payable to

 

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that Party.  If a Party does not contribute the registered capital it subscribes for in full within sixty (60) days of the due date, the other Parties shall have the right to, upon the written notice to the first Party the JV Company within thirty (30) days after the expiry of the aforesaid sixty(60) day period, terminate this Contract according to Article 20, or subscribe for and contribute all or any portion of the pro rata registered capital not contributed by the first Party the shareholding percentage of the Parties in the registered capital of the JV Company shall be adjusted accordingly.

 

如果一方未能履行本第5条项下的任何出资义务,且未能于该出资期限到期  后三十(30)天内改正,则该方应就逾期款项向合资公司支付违约利息,利率  相当于中国人民银行公布的届时适用的一(1)年期定期贷款基准利率;并就逾  期款项向其他方支付违约罚金,利率为每日0.05%,违约利息和违约罚金均  自逾期首日起计算直至该逾期款项足额缴付之日。如违约一方未能支付该等  违约利息,合资公司有权从应向该方支付的利润或任何其他款项中扣除该等  利息。如果一方未能于出资期限届满后六十(60)天内缴足其认缴的注册资本,  其他方有权在上述六十(60)天过后的三十(30)天内向前一方和合资公司发出  书面通知,依据第17.1条终止本合同,或对前一方未缴付的按比例认缴的注册资本中的全部或任何部分予以认缴并出资,并且各方在合资公司注册资本  中所占的股权利益比例应相应调整。

 

5.9               No Party may Transfer (or offer or agree to Transfer) all or any part of any interest in any Equity Interest except (i) with the prior written consent of the other Party, which consent may be withheld in its sole description, and (ii) in accordance with this Contract, and (iii) to such Party’s Permitted Transferees.  Each transferee of Equity Interests shall, as a condition prior to such Transfer, execute and deliver to the JV Company a joinder (in form and substance reasonably acceptable to the Board) of or counterpart to this Contract pursuant to which such transferee shall agree to be bound by the provisions of this Contract.

 

一方不得转让(或要约或同意转让)股权利益的全部或者任何部分,除非:(1)得到另一方的事先书面同意,但该同意可以根据该方自行判断而拒绝给予;(2)根据本合同规定,和(3)转让给该方的许可的受让方。各作为转让的先决条件,股权利益的受让人应签署并向合资公司递交一份加入本合同或者作为本合同附件的补充合同(按照董事会和合理接受的格式和内容),根据该补充合同,该受让人应当同意受本合同条款约束。

 

5.10        Except for Transfers to Permitted Transferees, a Party seeking to effect a Transfer (such Party, the “Offering Party”) of any Equity Securities (the “Offered Securities”) shall first give to the JV Company and  the other Party

 

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written noticed signed by the Offering Party (a “Offer Notice”) stating (a) the Offering Party’s bona fide intention to Transfer such Offered Securities; (b) the number of Offered Securities; (c) the name, address and relationship, if any, to the Offering Party of the proposed transferee (the “Proposed Transferee”); and (d) the bona fide cash price or, in reasonable detail, other consideration for which the Offering Party proposes to Transfer such Offered Securities (the “Offered Price”).  The other Party shall have the right, but not the obligation, to purchase the Offered Securities (the “Right of First Refusal”). If the other Party (the “Electing Party”) desires to purchase the Offered Securities, then the Electing Party must, within fifteen (15) days of receipt of the Offer Notice (the “Refusal Period”), give written notice (the “Election Notice”) to the Offering Party of the Electing Party’s election to purchase the Offered Securities. The Right of First Refusal shall automatically expire at the end of the Refusal Period unless exercised prior to the end of the Refusal Period. The purchase price for the Offered Securities purchased by the Electing Party shall be the Offered Price, and shall be made within thirty (30) days after the Election Notice.  If the other Party declines to exercise the Right of First Refusal, then the Offering Party may Transfer the Offered Securities to the Proposed Transferee at the Offered Price.  If a Party declines to exercise its Right of First Refusal, then the Offering Party may transfer the applicable portion of the Offered Shares to the Proposed Transferee at no less than the Offered Price, but only if such transfer occurs within ninety (90) days after expiration of the Refusal Period.

 

除转让给许可的受让方外,寻求出售股权利益(以下简称”要约股权”)的一方 (以下简称”要约方”)应首先向公司和另一方发出一份由要约方签署的书面通知 (以下简称”要约通知”),其中说明 (a) 要约人系善意转让要约股份;(b) 要约股份的数目;(c) 拟受让方(以下简称”拟受让方”) 的名称、地址和其与要约方的关系(如有);(d) 要约方拟转让要约股份的每股价格 (以下简称”要约价格”),该价格应当全部为现金。另一方(按其各自的股份份额) 应有权而不是有义务购买要约股份 (以下简称”优先购买权”)。如果另一方 (以下简称”选择方”) 意欲按其持有的股份比例购买要约股权的,选择方应当在收到要约通知之日起的三十 (30) 天(以下简称”优先期”)内,将决定购买该部分要约股份的书面通知 (以下简称”选择通知”) 提供给要约方。优先购买权应当在优先期届满时自动终止,除非该股东在拒绝期到期前行使其权利。选择方购买要约股份的购买价格应与上述”要约价格”一致,并应在发出选择通知后的六十 (60) 天内支付。如果一方当事人拒绝行使优先购买权,则要约方可将要约股份的相应部分以不低于要约价格的价格转让给拟受让方,但仅限于当该等转优先拒绝期届满之日后的九十 (90) 天内发生。

 

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5.11        Any increase or decrease of the registered capital of the JV Company must be: (a) approved unanimously by the Board and (b) submitted to the competent Record-filing Authority for approval or filing for recordation.  Upon such approval or filing for recordation, the JV Company shall register the increase or  decrease of the registered capital with the competent Governmental Entity.  Unless otherwise agreed by the Parties, each Party shall contribute to any increase or bear its proportionate share of the decrease in proportion to its Equity Interest at the time of the increase or decrease of the registered capital.

 

公司注册资本的任何增加或减少均须(i)到会公司董事表决一致赞成通过,或是全体董事以书面决议形式一致赞成通过;及(ii)提交给相关政府机构审批或备案。经批准或备案后,公司应向注册机构登记所述增资或减资。除非双方另有约定,每一方均应按照其届时在公司注册资本中持有的股权利益百分比进行增资或承担其相应比例的减资。

 

CHAPTER 5 BUSINESS OPERATION OF JOINT VENTURE

 

第5章  合资公司的业务经营

 

Article 6 Business Operation of Joint Venture

 

第6条  合资公司的业务经营

 

6.1               The JV Company under this Contract will focus on the development and commercialization of the Licensed Technology for the Field of Use in the Territory, as licensed by Aridis under Technology License and Collaboration Agreement in Appendix B.

 

合资公司在本合同项下将注重根据Aridis在技术许可与合作协议的许可,在区域内为使用领域开发和商业化被许可技术。

 

6.2               As soon as practicable after the establishment of the JV Company, Hepalink or its Affiliate shall enter into a lease agreement with the JV Company in the form attached hereto as Appendix C, under which Hepalink or its Affiliate provides the JV Company with office space and laboratory facilities at the Hepalink headquarter in Shenzhen of approximately 200m2 at a reasonable market rental rate for [ten (10) years].  Subject to the lease agreement the form of which is set forth as Appendix C hereto, (i) the initial rental fee for the office space is predicted to be RMB120-140 per square meter per month, while laboratory equipment rental is subject to the amount of device to rented, and (ii) the JV Company may early terminate the lease at its discretion subject to the approval by the Board.

 

在合资公司成立后,海普瑞或其关联公司将与合资公司尽快签署格式如附

 

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件C所示的租赁协议,  在该租赁协议项下,海普瑞或其关联公司将向合资公司提供位于海普瑞深圳总部的大约200平方米的办公室空间和实验室场地,按照合理市场租赁价格,租期为3年。根据该租赁协议(格式详见本合同附件C),(1)初始的办公室空间的租赁费用约为每月每平方米120-140人民币,实验室设备租赁将视实际租赁的设备数量而定;(2)合资公司可根据其自身选择,依据董事会的批准,提早终止该租赁。

 

6.3               Upon the formation of the JV Company, Hepalink shall provide the JV Company with PRC clinical and regulatory personnel services for clinical and regulatory review, application and filing procedures in the Territory (such services are expected to comprise no more than 5 senior staff and no more than 100 hours per month total), and Aridis shall provide the JV Company with clinical and regulatory personnel services to assist in coordination of the execution of the clinical study in China, and also with CMC personnel services for drug supply and manufacturing planning (to the extent such services are reasonably required by JV Company; such services are expected to comprise no more than 100 hours per month total).  If personnel services are required by the JV Company in excess of the total expectations noted above, then the Parties shall meet and agree upon hourly or other compensation by the JV Company to the Party supplying such services. .

 

一旦合资公司设立后,海普瑞将就区域内的临床和政府规制审查、申请和备案程序等方面向合资公司提供中国临床和政府规制方面的专业人员服务,该服务预计包含不多于海普瑞的5名资深专家每月总数不超过100小时的服务。Aridis应向向合资公司提供中国临床和政府规制方面的专业服务,以协调协助在中国临床研究的实施,以及向合资公司提供药物供应和生产计划方面的CMC专业人员服务,根据合资公司合理需求,且预计每月总数不超过100小时。若合资公司实际需求专业人员服务小时数超过上述预期数,则双方应协商确定按小时计或其他形式计算由合资支付给提供服务方相应补偿。

 

CHAPTER 6 RESPONSIBILITIES OF EACH PARTY AND REPRESENTATIONS AND WARRANTIES

 

第6章  各方的责任和陈述与保证

 

Article 7 Responsibilities of Each Party

 

第7条  各方的责任

 

7.1               The Parties shall cooperate with each other and with the JV Company in order to achieve the objective of the JV Company in accordance  with  this  Contract. Hepalink and Aridis shall cause its appointed Directors to take all  the necessary

 

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actions and cause all the necessary actions to be taken so that the Parties may exercise and fully enjoy its rights and interests under this Contract.

 

各方应相互合作,并与合资公司合作,以根据本合同实现合资公司的目标。  海普瑞和Aridis应促成其任命的董事采取一切必要的行动,并促成一切必要的行动被采取,以使各方可以行使并充分享有其在本合同项下的权利和利益。

 

7.2               Hepalink   shall   assist   the   JV Company   in properly   proceeding   with   the applications with competent Governmental Entities and assisting the JV Company in properly obtaining any and all approvals, registrations or licenses required for the establishment and operation of the JV Company in the manner contemplated by this Contract.

 

海普瑞应当协助合资公司向主管政府机构办理申请,并协助合资公司取得本合同项下成立和经营合资公司所需的所有审批,登记和许可。

 

7.3               Aridis shall provide necessary reasonable assistance to Hepalink to obtain the approvals, registrations or licenses mentioned in Article 7.2 above.

 

Aridis应当为合资公司取得本合同项下成立和经营合资公司所需的所有审批,登记和许可提供合理协助。

 

7.4               Subject to other provisions contained in this Contract, any expenses incurred by a Party due to its performance of the foregoing responsibilities or otherwise prior to the establishment of the JV Company (except for the expenses that for preparing and concluding this Contract, the Technology License and Collaboration Agreement by the Parties, and obtaining the approvals and registration of the establishment of the JV Company, which shall be borne by the JV Company) shall be borne solely by that Party shall not be charged to the JV Company, unless otherwise agreed upon by all Parties expressly in this Contract or separately in writing. Any expenses in relation to the operation of the JV Company subsequent to its establishment shall be borne by the JV Company.

 

受限于本合同的其他规定,除非各方在本合同或另行签订的其它书面文件  中明确约定,一方因履行其上述责任而发生的或在合资公司成立之前另行  发生的任何费用(除各方筹备和缔结本合同以及技术许可和合作协议以及获取合资公司成立之审批和登记的必要费用,应由合资公司承担之外)应由该方独自承担,并且不得向合资公司收取。合资公司成立后,任何与合资公司运营相关的费用应由合资公司承担。

 

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ARTICLE 8 REPRESENTATIONS AND WARRANTIES

 

第8条  陈述与保证

 

8.1               Each Party represents and warrants to the other Party that: (i) it is a duly organized and validly existing legal person in its jurisdiction of formation and has the full power and right to conduct its business in accordance with its business licenses, articles of association or similar corporate constitutional documents; (ii) it possesses full power and authority to enter into this Contract and to perform its obligations hereunder; (iii) its representative whose signature is affixed hereto has been fully authorized to sign this Contract and to bind the respective Party hereby; (iv) as of the effective date hereof, the provisions of this Contract constitute its legal, valid and binding obligations (except as limited by applicable bankruptcy Laws affecting enforcement of creditors’ rights generally and similar Laws); (v) its execution and delivery of this Contract and the fulfillment of its obligations hereunder do not and will not (a) conflict with or result in default of the business license, articles of association and similar constitutional documents of such Party, (b) result in any breach, default, conflict, non-performance or non-performance event under any contract, agreement or license to which it is a party or its assets or operation is subject, or (c) conflict with or result in default of any Laws applicable to such Party; and (vi) except the consents that have been obtained or that are expressly provided herein, none of (a) its execution, delivery or performance of this Contract, nor (b) the consummation of any transaction contemplated hereunder will require such Party to make or obtain any consent, waiver, approval, authorization, exemption, registration, license or announcement.

 

每一方分别向其他一方陈述并保证:(i)该一方是在其成立地司法管辖区合法组建并有效存续的独立法人,并且有充分的能力和权利依照其营业执照、公司章程或类似的公司组建文件开展其业务;(ii)该一方拥有充分的能力和权力签署本合同并履行本合同规定的其各项义务;(iii)在本合同上签字的该一方代表已被充分授权签订本合同的权利并对该方产生约束力;(iv)自本合同生效之日起,本合同各项规定应成为该一方合法的、有效的和有约束力的义务(但必须服从普遍影响到债权人权利的破产法律及类似法律所规定的各项限制);(v)该一方签署并交付本合同以及履行本合同规定的其各项义务在现在和将来均不会(a)抵触或导致违反该一方营业执照、公司章程或类似的公司组建文件的任何规定,(b)在以该一方为一方或对该一方资产或经营有约束力或影响的任何合同、协议或许可的条款项下,导致任何违反、违约、抵触、不履约或不履约事件,或(c)抵触或导致违反适用于该一方的任何法律;以及(vi)除已经取得的同意或者本合同明确规定的同意之外,该一方(a)签署、交付或履行本合同,或(b)完成本合同所预期的任何交易,不要求该一方做出或取得任何同意、弃权、批准、授权、豁

 

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免、登记、许可或宣告。

 

CHAPTER 7 THE BOARD AND SUPERVISORS OF THE JV COMPANY

 

第7章  合资公司的董事会和监事

 

Article 9 Board

 

第9条  董事会

 

9.1               The JV Company shall establish a board of directors (the “Board”). The Board shall consist of 5 Directors, among which Hepalink shall appoint three (3) Directors, Aridis shall appoint the remaining two (2) Directors.   The term of office of each Director shall be four (4) years.   Each Party may remove any of the Directors it appointed from time to time, provided that it shall simultaneously appoint a new Director to replace the one removed and shall notify the other Party and the JV Company in writing of such replacement. If a Director dies, resigns or is removed prior to the end of his/her term of office, the Party appointing that Director shall forthwith appoint a replacement for that Director and shall notify the other Party and the JV Company in writing of such appointment.  Parties further agree that in the event that the composition or size of the Board is changed as a result of future financing or equity sale of the JV Company, both Parties, at their best efforts, will secure that Hepalink hold at least 3 seats and Aridis holds at least 2 seats, at the adjusted Board.

 

合资公司应设董事会(“董事会”)。董事会由五(5)名董事组成,其中海普瑞应委派三(3)名董事,Aridis应委派其余两(2)名董事。每一董事的任期为  四(4)年。每一方可不时免职其委派的任何董事,但其应同时委派一名新董事以替代被免职的董事,并应向其他各方和合资公司书面通知该等更换事宜。如某一董事在其任期结束前死亡、辞职或被免职,则委派该董事的一方应立即委派一名董事,以替代该死亡、辞职或被免职的董事,并应向其他各方和合资公司书面通知该等更换事宜。双方进一步同意若董事会的组成或者规模由于合资公司未来融资或者股权出售而改变,则双方应尽其最大努力保证在调整后的董事会中海普瑞掌握至少3席董事,Aridis掌握至少2席董事。

 

9.2               The Board shall have a chairman (the “Chairman”), who will be nominated by Hepalink, and a vice chairman, who will be nominated by Aridis. The Chairman shall serve as the legal representative of the JV Company and has the powers outlined below and other powers delegated to him/her pursuant to the applicable Laws, resolution by the Board and/or written agreement among the Parties:

 

董事会设董事长一名(“董事长”),由海普瑞任命;设副董事长一名,由

 

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Aridis 任命。董事长是合资公司的法定代表人且具有下述权力,以及  依照相关法律、董事会决议和/或各方书面协议所授予的其它权力:

 

(a)                 be responsible for convening and presiding over meetings of the Board; if the Chairman is unable to convene or preside over a meeting of the Board, the Chairman shall designate another Director, with the same power and authority, to convene and preside over that meeting;

 

董事长负责召集并主持董事会的会议。如果董事长未能召集或主持某一董事会会议,董事长应授权另一名董事以相同的权力和权限召集并主持该会议;

 

(b)                 to exercise the same authority as each other Director of the JV Company, such as casting one (1) vote equal in weight to the votes of each other Director at meetings of the Board; and

 

董事长有权行使与合资公司其他董事同等的权力,包括在董事会的会议上投与其他董事投票效力相同的一(1)票;且

 

(c)                  other rights stipulated by the Laws, regulations, and the Articles of Association of the JV Company.

 

其他法律、法规和合资公司章程所规定的其他权利。

 

For avoidance of doubt, the Chairman shall have no right to an additional or casting vote.

 

为免疑议,董事长无额外投票权或投决定票的权利。

 

9.3               Each Party shall cause each of its appointed Directors to perform his/her duties in good faith and in accordance with the applicable Laws, this Contract and Appendix A with the care that an ordinarily prudent person in a like position would exercise under similar circumstances.

 

合同各方均应促成其委派的每一名董事,根据适用法律、本合同和附件A的规定,以一名担任同类职务的一般正常谨慎人员在相似情况下会尽到的注意,秉诚履行其职责。

 

9.4               The JV Company shall provide reimbursement to the Directors for any reasonable travel expenses actually incurred for attending Board Meetings. Apart from such reimbursement, the Directors are not entitled to any salary or any form of fringe benefits, awards or reimbursements for their position as a Director.

 

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合资公司应报销各董事为出席董事会会议实际发生的合理的差旅费用。在此报销费用以外,各董事不应就其董事职位而获得任何工资或其他形式的福利、奖励或者报销。

 

ARTICLE 10 POWER OF THE BOARD

 

第10条  董事会的权力

 

10.1        The Board is the highest authority of the JV Company and shall have the powers and duties for the overall management and operation of the JV Company as set forth in the applicable Laws, this Contract, Appendix A. Any resolutions (except for the Reserved Matters provided under Article 10.2) shall be adopted by an affirmative vote of at least simple majority of  the Directors present (in person or by proxy) at a duly convened Board Meeting, among which shall include at least one (1) Director of Hepalink and one (1) Director of Aridis.

 

董事会是合资公司的最高权力机关,具有相关法律、本合同和附属合同A中规定的全面管理和经营合资公司的权力和职责。任何决议(第 10.2款项下规定的保留事项除外)应由正式召开的董事会会议的与会董事(无论是亲自或派代理人参加)投票表决通过,中至少简单多数(即超过半数)投票表决通过,其中须包括至少一(1)名海普瑞的董事和一(1)名Aridis的董事。

 

10.2        Unless otherwise agreed among the Parties in writing, the following matters (the “Reserved Matters”) shall require an unanimous approval of the Board:

 

除非合同各方另有书面约定,对下列事项(“保留事项”)的批准应由董事会一致同意:

 

(1)                                 approval of any agreements, documents or other arrangements between or involving the JV Company and any shareholder or affiliate thereof, as well as any amendment, consent or waiver with respect to such arrangements;

 

批准涉及合资公司和任何股东或其关联公司的任何协议、文件或其他安排,以及任何想关于该安排的修订、同意或弃权;

 

(2)                                 removal of a Director other than by the Party which designated the Director to be removed;

 

董事的免职(由原提名该董事的一方要求免职的除外);

 

(3)                                 approval of the appointment of the members of any committee established by the Board;

 

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批准董事会设立的任何委员会成员的任命;

 

(4)                                 terms of any employment agreements with the Officers of the JV Company;

 

批准合资公司高级管理人员任何劳动合同的条款;

 

(5)                                 approval of, and amendment to, any budgets, assessments or financial plans of any applicable fiscal period, or commercial and operational plan of the JV Company (collectively, the “Business Plan”);

 

批准任何适用财务期间的任何预算、评估或财务计划,或合资公司的商业和营业计划(合称为”经营计划”)及其修订;

 

(6)                                 approval of agreements providing for the payment or receipt in excess of US$100,000 which is out of the Business Plan approved by the Board;

 

批准董事会批准的经营计划以外的超过100,000美元的付款或者收款的协议;

 

(7)                                 all transactions regarding buildings and land, including the lease, purchase, sale and mortgage thereof;

 

所有关于建筑和土地的交易,包括租赁、购买、出售和担保;

 

(8)                                 individual plans and projects which are capital in nature and for which the anticipated expenditure will exceed US$100,000 which is out of the Business Plan approved by the Board;

 

董事会批准的经营计划以外的单个资本性计划或项目且预期费用超过100,000美元;

 

(9)                                 providing loans, guarantees, or other extensions of credit other than in the ordinary course of business;

 

正常业务以外提供贷款、保证,或者其他授信;

 

(10)                          amendment of the Articles of Association of the JV Company;

 

修改合资公司的章程;

 

(11)                          merger into or with or acquisition of all or part of the business of another person or entity; sale, lease, transfer, or other disposition of the assets of the

 

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JV Company having a fair market value, sale price, or book value at time of disposition greater than US$100,000 which is out of the Business Plan approved by the Board;

 

被另一个人或者实体全部或部分的业务兼并,或与之合并,或收购该另一个人或者实体全部或部分的业务;董事会批准的经营计划以外出售、出租、转让、或以其它方式处置合资公司的资产,其处置时的合资公司市场公允价格、或出售价格、或账面价值超过100,000美元;

 

(12)                          liquidation, dissolution, winding up or any Bankruptcy Event of the JV Company;

 

合资公司的清算、解散、关停或任何破产事件;

 

(13)                          fixing compensation of the Officers, including bonuses;

 

确定高级管理人员的的薪酬,包括奖金;

 

(14)                          declaration and distribution of dividends (except as otherwise provided under Article 16.3 below);

 

宣布和派发红利(下文第16.3条另有约定除外);

 

(15)                          appointment, removal or change of any Officer;

 

任命、免除或更换任何高级管理人员;

 

(16)                          any material change in the business of the JV Company;

 

任何合资公司业务上的实质性改变;

 

(17)                          issuance, purchase or redemption by the JV Company of any securities of the JV Company and any increase or reduction in the capitalization of the JV Company;

 

由合资公司发行、购买或者回购合资公司的任何证券,以及增加或者减少合资公司的股本;

 

(18)                          any financing, fundraising, or borrowing of funds by the JV Company greater than US$100,000, as long as the Equity Interests of both Parties remain unchanged; and

 

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合资公司任何超过100,000美元的融资、募资、或借取资金,但双方的股权利益不得改变;和

 

(19)                          Any engagement of business , or attempt to engage such business, exceeding the scope specified under Article 3.1 above.

 

从事或试图从事任何超过本合同第3.1条规定之范围的业务。

 

ARTICLE 11 MEETINGS OF THE BOARD

 

第11条  董事会会议

 

11.1        The quorum for a Board Meeting shall require the presence in person or by proxy of at least four-fifth (4/5) of all Directors including one Director appointed by Hepalink and Aridis respectively. Resolutions adopted by any Board Meeting shall be invalid unless the quorum is satisfied. In the event of failure to constitute the quorum in this Article, the Chairman shall have the right to call a second meeting of the Board and any director absent from this second meeting without legitimate reason and without a proxy is deemed to have attended the meeting but to have abstained from voting.

 

董事会会议应由全体董事中至少三分之二(2/3)(包括至少一(1)名分别由海普瑞和Aridis委派的董事)亲自出席或委托代理人出席方构成法定人数。  如出席董事未达到上述要求,董事会会议通过的任何决议均为无效。若未达到本条所规定的法定人数,董事长应有权提请召开第二次董事会;任何无合法理由缺席第二次董事会且未委托代理人出席的董事,将被视作已经实际出席了该董事会会议,但无权参加投票。

 

11.2        Each Director shall cast one (1) equal vote on each matter to be resolved by the Board. Any Director may attend a Board Meeting by proxy, provided that such Director shall, prior to the meeting, deliver to the Chairman the written power of attorney, in which the name and authority of the proxy shall be specified. The proxy may be another Director or any other representative authorized by the Director using the proxy.

 

每一董事就董事会每一决议事项享有一(1)票同等表决权。任何董事均可委托代理人出席董事会会议,但前提是该董事应在会议之前将载明代理人姓  名和权限的书面授权提交董事长。代理人可以是另一名董事或使用代理人  的该名董事授权的任何其他代表。

 

11.3        A regular annual Board Meeting shall be convened within thirty (30) days after the issuance of the audited annual financial report of the JV Company or four

 

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(4) months after the end of each fiscal year, whichever comes first (“Regular Board Meeting”).

 

年度例行董事会会议应于合资公司经审计的年度财务报告出具之后三十 (30)天或每一财务年度结束后四(4)个月之内(以较早者为准)召开(“例行董事  会会议”)。

 

11.4        Upon the request of any two (2) Directors or one (1) of the Supervisors or otherwise pursuant to this Contract and the Articles of Association, the Chairman shall convene an interim Board Meeting (“Interim Board Meeting”).

 

经任意两(2)名董事或一(1)名监事要求,或另行根据本合同和章程的规定,  董事长应召集临时董事会会议(“临时董事会会议”)。

 

11.5        Unless otherwise expressly provided in this Contract, for any Board Meeting, a written notice of the time, place of the meeting shall be delivered by the Chairman to each Director by hand, email or telecopy at least three (3) Business Days prior to the meeting or such other period as agreed upon by all Directors. The written notice shall include an agenda of businesses to be transacted at the Board Meeting (“Meeting Agenda”). For any businesses a Director intends to transact at the Board Meeting, it shall submit such businesses to the Chairman for the Chairman to include in the Meeting Agenda. The Board Meeting shall not discuss any matters outside the Meeting Agenda, unless otherwise agreed by all Directors in office unanimously in writing. Any meeting notice to a Director shall be deemed received if delivered to the address or the telecopy number or the email address designated by that Director in writing. Unless otherwise provided in  this Contract or approved by all Directors in writing, resolutions or decisions adopted or made in a Board Meeting shall not be valid unless proper meeting notices have been delivered in accordance with this Article 11.5.

 

除非本合同中另有明确规定,就任何董事会会议而言,一份列明会议时间、地点的书面通知应由董事长于会议前至少三(3)个营业日或全体董事同意的其他期限内通过专人递送、电子邮件或传真的方式递交至每一董事。书面会议通知应包括董事会会议待议事项的议程(“会议议程”)。如果有董事有意在董事会会议上讨论任何事项,其应当将该事项提交董事长,由董事长列入会议议程。除全体在任董事一致书面同意外,董事会会议不得讨论会议议程之外的事项。  致某一董事的任何会议通知,若已递交至该董事书面指定的地址、传真号码或电子邮件地址,则应被视为已由该董事收讫。除非本合同中另行规定或全体董事另行书面批准,董事会会议通过或作出的决议或

 

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决定,仅在适当的会  议通知已根据本第11.5款递交的情况下方为有效。

 

11.6        In case that an urgent Board Meeting needs to be convened, the requirement on prior notice of Board Meetings provided in Article 11.5 may be waived by unanimous consent by all Directors. Furthermore, in respect of a Director who has not received the meeting notice before a Board Meeting, (a) such Director may waive the meeting notice in writing before or after the meeting; and (b) such Director’s presence at that meeting in person or by proxy shall constitute a waiver of notice of that meeting, unless such Director attends that meeting for the express purpose of objecting, at the beginning of the meeting, to the improper notice on that meeting.  For the avoidance of any doubt, when a meeting notice is waived for any Board Meeting, the meeting shall still proceed in accordance with the Meeting Agenda.

 

如果需要召集紧急董事会会议,经全体董事一致同意,可以豁免第11.5款规  定的董事会会议之前的事先通知要求。此外,就未于董事会会议前收到会议通知的某一董事而言,(a)该董事可于会议之前或之后以书面方式放弃会议通知;及(b)该董事亲自出席或委托代理人出席该会议应构成对该会议之通知的放弃,除非该董事出席该会议的明确目的就是为了在会议开始时对该会议的不适当通知提出异议。为避免疑义,任何已豁免会议通知的董事会会议,仍应按照会议议程进行。

 

11.7        A Board Meeting may be held via conference telephone, video conference or similar communications equipment by means of which all persons present at the meeting is audible to each other. The resolutions adopted by the Board Meeting held in the aforesaid manner shall be signed in writing by all the Directors present at the meeting.

 

董事会会议可通过电话会议、视频会议或者使用全部与会人士可互相听到  的类似通讯设备进行。采用上述方式举行的董事会会议通过的决议应经所  有与会的董事书面签署

 

11.8        The minutes and/or resolutions of each Board Meeting shall be prepared in both Chinese and English languages and a transcript of the minutes and/or resolutions shall be delivered to each Director, as well as to each Party, within ten (10) Business Days after the meeting, unless otherwise agreed to by all Directors present at that meeting in person or by proxy. Both the Chinese and English language versions of the minutes and/or resolutions shall be equally authentic and be of the same legal effect. The original copy of the minutes and/or resolutions shall be kept in the JV Company.

 

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除非全体董事另行同意,每一次董事会会议的会议记录和/或决议应同时以  中文和英文制备,并且,该等会议记录和/或决议的一份誊本应在会议后的  十(10)个营业日内交付至各董事以及合同各方。中文和英文文本的会议记录  和/或决议应同等可信,并具有相同的法律效力。会议记录和/或决议的正本  应由合资公司保管。

 

11.9        The Board shall hold the first Board Meeting within sixty (60) Business Days after the Establishment Date. At the first meeting, the Directors shall discuss, among other things, the following matters:

 

董事会应在成立日期后三十(30)个营业日之内召开第一次董事会会议。在第  一次会议上,除其他事项外,董事应当讨论下述事项:

 

(a)                                 the initial financial and accounting system of the JV Company;

合资公司初始的财务和会计系统;

 

(b)                                 to approve the initial Business Plan and budgets of the JV Company;

批准合资公司的初始年度经营计划和预算;

 

(c)                                  to decide on the remuneration, management authority and appointment of the Officers; and

决定对高级管理人员的薪酬、管理权限以及任命事项;及

 

(d)                                 other matters to be discussed and decided by the Board

董事会决定讨论的其他事项。

 

11.10 If any Party fails to obtain the support of a sufficient number of the Board appointed by the other Party for a resolution requiring unanimous vote of the Board, and such Party notifies the other Party in writing that such failure will materially adversely affect the JV Company (“Deadlock”), the Chairman shall prepare and deliver a full report regarding the unsuccessfully resolved matter to the chief executives of each of the Parties within thirty (30) days from the date of above notice. The chief executives of the Parties shall have an additional thirty (30) days from the date of receipt of such report or such longer period as they may agree to successfully conciliate such matter. If the chief executives of the Parties do not successfully resolve such matter during such relevant period, then the following procedures may be elected:

 

若任何一方无法就某一需要董事会一致通过的议案争取到另一方足够董事会票

 

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数支持,且该方书面通知另一方该投票失败将对合资公司产生实质不利影响的(”僵局”),董事长应准备一份完整的关于该无法达成一致的问题的报告,并在上述通知之日起三十(30)日内递交各方的主要高管。各方的主要高管应在收到该报告后三十(30)天或者各方可以同意的更长的期限内以圆满调解该问题。如果各方的主要高管无法在上述期限内圆满的解决该问题,则下列程序可被适用:

 

(a)              Either Party may file arbitration pursuant to Article 27.1 below; or

任何一方可根据第27.1条提起仲裁;或

 

(b)              Either Party may terminate this Contract pursuant to Article 20.1 below.

任何一方可根据第20.1条终止本合同。

 

ARTICLE 12 SUPERVISORS

 

第12条  监事

 

12.1        The JV Company shall have two (2)  individual  supervisors  (“Supervisors”). Each of Hepalink and Aridis shall appoint one (1) Supervisor. The term of office of each Supervisor shall be three (3) years.  A Director or an Officer of the JV Company cannot be a Supervisor.

 

合资公司设两(2)名个人监事(“监事”)。海普瑞和Aridis每一方各委派一 (1)名监事。每一监事的任期为三(3)年。合资公司的董事或高级管理人员不可兼任监事。

 

12.2        Each Supervisor shall exercise the following powers:

 

监事履行以下职权:

 

(a)              to check on the financial affairs of the JV Company;

 

检查合资公司的财务事项;

 

(b)              to monitor performance of duties by the Directors and Officers of the JV Company, and to propose to the Parties and the JV Company the dismissal of any Director or Officer who has committed any act in contravention of any Law, this Contract, or the Articles of Association;

 

对合资公司的董事和高级管理人员执行职务的行为进行监督,对

 

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于违反任何法律、本合同或章程规定的任何董事或高级管理人员,向  各方及合资公司提出罢免的建议;

 

(c)               to propose convening of Interim Board Meetings, and to attend any Board Meeting and submit motions, questions or proposals at the meeting (but the Supervisors shall not have any voting power at any Board Meeting); and

 

提议召开临时董事会会议,出席任何董事会会议并在会议上提交提  案、询问或建议(但监事在任何董事会会议上不享有任何表决权);  及

 

(d)              to request the Directors and/or Officers of the JV Company to correct their actions that harm the interests of the JV Company.

 

要求合资公司的董事和/或高级管理人员纠正其损害合资公司利益的行为。

 

12.3        Each Supervisor is entitled to attend the Board meetings, and may raise questions or suggestions about the matters to be decided by the Board. If a Supervisor finds that the JV Company is running abnormally, then such Supervisor may conduct investigations. If necessary, a Supervisor may hire an accounting firm, at the JV Company’s expense, to help.

 

监事可以列席董事会会议,并对董事会决议事项提出质询或者建议。监事发现公司经营情况异常,可以进行调查;必要时,可以聘请会计师事务所等协助其工作,费用由公司承担。

 

12.4        The Supervisors shall keep minutes on the resolutions of the issues with signatures of present Supervisors.

 

监事对所议事项应当采用书面形式,并由监事签字后备案于公司。

 

12.5        The JV Company shall bear all costs incurred by the Supervisors in connection with the performance of their duties.

 

监事行使职权所必需的费用,由公司承担。

 

ARTICLE 13 MANAGEMENT PERSONNEL

 

第13条  管理人员

 

13.1        The senior officers of the JV Company (“Officers”), the office term of each

 

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of whom shall be three (3) years, shall include:

 

合资公司的高级管理人员(“高级管理人员”)包括下列人员,每名高级管理人  员任期(3)年:

 

(a)              a CEO, to be in charge of the ordinary operation and management of the JV Company (“CEO”), approved by unanimous consent of the Board;

 

CEO一名(“CEO”),主管合资公司的日常经营管理,由董事会一致决定。

 

(b)              a CFO, to be in charge of finance, accounting, finance related internal control and tax,  selected by the CEO and approved by unanimous consent of the Board;

 

副总经理一名,主管财务、会计、财务相关内部控制和税务,由CEO提名,董事会一致通过;

 

(c)               department managers, to be in charge of respective department of the JV Company, selected and approved by the CEO;

 

部门经理若干,分管合资公司的各个部门,由CEO提名并批准。

 

13.2        Except for the Reserved Matters and other matters requiring consent by the Board according to this Contract and the Articles of Association, and under the authorization resolution by the Board, the CEO shall be responsible to the Board directly, carry out the decisions of the Board and manage the daily operations of the JV Company for following matters:

 

除本合同和公司章程规定的由董事会保留的权力之外,基于董事会的授权,CEO应向董事会直接负责,执行董事会的决议,负责下列合资公司的日常运作:

 

(a)              Implementing the annual Business Plan;

实施年度经营计划;

 

(b)              Implementing the Board resolutions;

执行董事会决议;

 

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(c)               Nominating other managerial personnel;

提名其他管理人员;

 

(d)              Appointing and removing employees of the JV Company except for the Officers;

任免高级管理人员之外的合资公司员工;

 

(e)               Directing and supervising the other Officers which shall report to him/her according to this Contract, the Articles of Association and the resolutions of the Board;

指导和监督依据本合同和章程的规定以及董事会的决定向其报告的  其他高级管理人员;

 

(f)                Developing and maintaining customers;

开发客户并维持客户;

 

(g)               Formulating  and  submitting  to  the  Board  for  approval  the  internal organizational and management structure of the JV Company; and

制定合资公司的内部组织和管理架构,并提交董事会批准;及

 

(h)              Other powers as delegated by the Board according to this Contract.

董事会根据本合同授予的其它权力。

 

13.3        All Officers must have customary non-compete obligation under their employment contracts that prohibits any direct or indirect competition against the JV Company or its shareholders.

 

所有高级管理人员均须在其劳动合同中附有惯常的竞业禁止义务,以禁止直接或者间接的与合资公司或者其股东相竞争的行为。

 

ARTICLE 14 EMPLOYEES AND UNION

 

第14条  员工和工会

 

14.1        The CEO shall prepare the outlines regarding the employment, termination, salary, labor insurance, benefits and incentive plans of the employees of the JV

 

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Company in accordance with the applicable Laws, and shall submit the outlines to the Board for approval. The CEO shall implement the outlines approved by the Board in respect of employment related matters.

 

CEO应按照相关法律拟定有关合资公司员工的雇佣、终止雇佣、工资、劳  动保险、福利和激励计划的纲要,并将纲要提交董事会审批。CEO应实施  经董事会批准的有关劳动相关事宜的纲要。

 

14.2        The Parties acknowledge that the staff and workers of the JV Company shall have the right to establish a trade union in accordance with the applicable PRC Laws. The activities of the trade union shall not interfere with the normal operations of the JV Company and shall comply with applicable PRC Laws.

 

各方确认:合资公司的职员和员工有权按照适用的中国法律建立工会。  工会的活动不得干扰合资公司的正常运营,并应遵守适用的中国法律。

 

14.3        Each Party may recommend to the JV Company certain management or technical personnel to be employed by the JV Company. The terms of the employment contracts between the JV Company and such personnel shall be consistent with the outlines approved by the Board.

 

每一方均可向合资公司推荐待由合资公司雇佣的某些管理或技术人员。合  资公司与该等人员之间的劳动合同条款应由董事会批准的纲要相一致。

 

14.4        All employees of the JV Company shall execute Confidentiality and Invention Assignment Agreements.  Each Party shall, at all times during the term of the JV Company and thereafter, use its reasonable efforts to safeguard the secrecy of any of the JV Company’s confidential information, including marketing plans, customer information, technical information, or financial information.

 

所有合资公司的员工必须签署保密和发明转让协议。在合资公司的存续期间及以后,各方应尽其合理努力对合资公司的保密信息予以保密,包括营销计划、客户信息、技术信息或财务信息。

 

ARTICLE 15 FINANCING AND ACCOUNTING

 

第15条  财务和会计

 

15.1        Financial and Accounting System.

 

财务和会计制度

 

(a)              The finance and accounting of the JV Company shall be handled in accordance with the regulations formulated by the Ministry of Finance of the People’s

 

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Republic of China.

 

公司的财务会计按照中华人民共和国财政部制定的相关规定办理。

 

(b)              The fiscal year of the JV Company shall be calendar year from January 1 to December 31.  All vouchers,receipts,accounting statements and reports,and accounting books shall be written in Chinese and English.

 

公司会计年度采用日历年制,从每年一月一日起至十二月三十一日止为一个会计年度。记帐凭证、单据、报表、帐薄,用中文与英文双语书写。

 

(c)               The JV Company adopts RMB as its accounts keeping unit. The conversion of RMB into other currency shall be in accordance with the exchange rate of the converting day published by the State Administration of Foreign Exchange Control of the People’s Republic of China.

 

公司应采用人民币为记帐的本位货币。人民同其它货币折算,按实际发生之日中华人民共和国外汇管理局公布的汇价计算。

 

(d)              The JV Company shall adopt the internationally used accrual basis and debit and credit accounting system

 

公司采用国际通用的权责发生制和借贷记帐法记帐。

 

(e)               The JV Company shall, based on sound business practices, maintain its books and records and implement and maintain an adequate system of procedures and controls with respect to finance, management, and accounting that meets international standards of good practice and is reasonably satisfactory to both Parties to provide reasonable assurance that: (i) transactions by it are executed in accordance with management’s general or specific authorization, (ii) transactions by it are recorded as necessary to permit preparation of financial statements in conformity with the PRC Accounting Principles and to maintain asset accountability; (iii) access to its assets is permitted only in accordance with management’s general or specific authorization, (iv) the recorded inventory of assets is compared with the existing tangible assets at reasonable intervals and appropriate action is taken with respect to any material differences, (v) segregating duties for cash deposits, cash reconciliation, cash payment, proper approval is established, and (vi) no personal asset or bank account of any employee, director or officer of the JV Company is mixed with the asset or bank account of the JV Company and the JV Company will not use the personal bank account of any of its employees, directors or officers in the course

 

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of its business operation.  The JV Company shall also prepare management accounts in accordance with the forms approved by the Board (including the  management accounts prepared according to US GAAP for Aridis) and enter the financial information into the financial reporting system of each Party on a monthly basis. Each Party has the right, upon reasonable request, to copies of the JV Company’s tax returns and reports, if any, and copies of the monthly, quarterly and year-end financial statements of the JV Company.

 

合资公司应根据健全的商业运作模式保管其账簿和财务记录,并就其财务、管理和会计事项建立并实行符合国际标准且令各方合理满意的适当的监管机制和程序,以合理确保(i)合资公司开展的交易均获得管理层的一般或特别授权,(ii)为按照中国会计准则编制财务报表及维系资产会计责任之目的就合资公司开展的交易进行了必要的记录,(iii)必须经管理层的一般或特别授权方可接触公司资产,(iv)合资公司依合理的间隔定期就其所记录的资产明细与实际资产进行核对,并就任何重大出入采取合理的措施,(v)分立与银行存款、现金对账和现金支付相关的义务并就其实行适当的批准制度,和(vi)任何员工、董事、管理人员的任何个人资产或银行账户不与公司资产或银行账户相混合且合资公司在其业务经营过程中不会使用任何员工、董事、管理人员的个人银行账户。合资公司亦应当根据董事会批准的格式准备管理报表(包括为Aridis根据美国GAAP制作的管理报表)并每月根据每方的财务报告系统输入相应财务信息。每一方有权在经过合理要求后获得合资公司报税回执以及报告(若有的话)的复印件以及月度、季度和年度公司的财务报表。

 

15.2        Auditing.

 

审计

 

(a)              Each Party may examine (including using third parties to assist with such examination) the books and records of the JV Company at such Party’s own expense. The JV Company shall fully and promptly cooperate with such examination.

 

双方有权自费聘请审计师查阅公司帐簿。查阅时,合资公司应提供方便。

 

(b)              The Board shall each year select and appoint as its independent auditor (the “Auditor”) an accounting firm registered in the PRC that is acceptable to both Parties to audit its financial statements and other relevant documents, which Auditor shall be capable of performing accounting and auditing work meeting both PRC domestic accounting standards and the international accounting standards. The JV Company shall be solely responsible for all the costs and

 

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expenses relating to such independent audit.  The results of the Auditor’s examination shall be reported to the Board and the general manager within  three (3) months of the end of each financial year. The aforesaid financial reports shall be prepared in both Chinese and English.

 

董事会每年应挑选并聘请一家经各方认可的、在中国登记的会计师事务所担任其独立审计师(以下简称”审计师”)对其财务报表及其它相关文件进行审计,该会计师事务所应能完成既符合中国国内会计标准又符合国际会计准则的会计审计工作。合资公司应全额自行承担与该等独立审计相关的费用和支出。

 

15.3        Tax.

 

税务

 

(a)              The JV Company and the Parties shall pay the various taxes in accordance with the Laws of the PRC relating to foreign invested enterprises, treaties or multilateral agreements to which the PRC government is a party.  The JV Company’s Chinese and foreign employees shall pay personal income taxes in accordance with the Laws and regulations of the PRC.

 

合资公司及双方应按照与外商投资企业有关的中国法律及由中国政府作为一方缔结的有关条约或多边协议缴纳各类税款。合资公司的中方和外籍员工应按照适用的中国法律法规缴纳个人所得税。

 

(b)              The depreciation period for the fixed assets of the JV Company shall be decided in accordance with the Law of the People’s Republic of China on Enterprise Income Tax by the Board.

 

合资公司董事会根据《中华人民共和国企业所得税法》的规定决定合营公司固定资产的折旧年限。

 

(c)               The Parties shall use reasonable efforts to obtain for the JV Company, the Parties and all personnel thereof all relevant tax exemption and reduction, privilege and preferential treatment available currently or subsequently under the Laws of the PRC or any international treaty or agreement the PRC has concluded or will conclude to which the PRC is a party.

 

双方应努力为合资公司、双方及其所有的人员获取根据中国法律和中国已经或将来缔结的有关条约或国际协议现在或将来可以享受的一切有关的免税、减税、特权及优惠待遇。

 

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15.4        Foreign Exchange

 

外汇

 

All matters concerning foreign exchange shall be handled in accordance with the Regulations of the People’s Republic of China on Foreign Exchange Control and other relevant regulations.

 

合资公司的一切外汇事宜,按照《中华人民共和国外汇管理条例》和有关规定办理.

 

15.5        Bank Accounts.

 

银行帐户

 

The JV Company shall open accounts in RMB and foreign currency with Bank of China or other banks approved by the Bank of China.

 

合资公司在中国银行或中国银行同意的其它银行开立人民币及外币帐户。

 

15.6        Insurance.

 

保险

 

The JV Company shall, at its own expense and at all times, purchase and maintain from reputable insurance companies within the PRC full and adequate insurance customarily required for the JV Company’s business against loss or damage by fire and such other risks as may be decided by the Board or are customarily insured against.

 

合资公司应始终向中国境内信誉良好的保险公司购买并维持公司业务惯常需要的充分、足够的保险,以为公司抵御火灾及董事会确定的或通常投保的其他风险所带来的损失和损害,所需费用由公司承担。

 

ARTICLE 16 PROFIT DISTRIBUTION

 

第16条  利润分配

 

16.1        The JV Company shall allocate reserve funds,expansion funds, and bonuses and welfare funds for staff from the after-tax profits.  The proportions of the allocation shall be decided by the Board according to the situation of the JV Company annually.

 

合资公司从缴纳所得税后的利润中提取储备基金、企业发展基金和职工奖励及

 

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福利基金。董事会根据合资公司经营情况讨论确定每年提取的比例。

 

16.2        The Parties distribute the after-tax-and-fund profits according to the proportion of each Party’s contribution in the registered capital.

 

双方按照双方在注册资本中的出资比例对税后利润进行分配。

 

16.3        Distribution of profit shall be at the discretion of the Parties subject to the Board’s approval in accordance with Article 10.2 above.  Should either Hepalink or Aridis requests distribution of profit in any applicable fiscal year, the Parties and the JV Company and its Board shall all not unreasonably withhold consent to such distribution, provided that JV Company retains sufficient assets to reasonably execute the Business Plan.

 

利润的分配须根据董事会依据第10.2条之批准由双方根据其选择决定。若海普瑞或者Aridis中一方要求分配所适用财年的利润,则双方、合资公司及其董事会均不得不合理的拒绝批准该分配要求,但前提是合资公司保有执行经营计划之充沛资产。

 

16.4        Losses of the previous fiscal year shall be covered before profit distribution of the JV Company.  Undistributed profits of the previous fiscal year may be incorporated into the current fiscal year profits.

 

合资公司上一个会计年度亏损未弥补前不得分配利润。上一个会计年度未分配的利润,可并入本会计年度利润分配。

 

16.5        The Parties declare that it is their intention to distribute the maximum amount possible by way of dividends. In evaluating any board resolution for the award of dividends, the Board shall take into consideration, inter alia, the following factors in respect of the JV Company, namely: long and short term liquidity requirements; cash flow requirements and projections; current, contingent and long term liabilities; and generally, the financial stability and well being of the JV Company.

 

双方认可,获取可获得的最高额度分红系双方共同愿望。董事会在评估关于分红的决议时,应考虑合资公司的以下各个因素:长期和短期的流动性要求;现金流的要求和规划;当前、紧急和长期的负债;以及合资公司总体上的财务稳定和良好状况。

 

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CHAPTER 8 NON-COMPETITION AND CONFIDENTIALITY

 

第8章  竞业禁止与保密

 

Article 17 Non-Competition

 

第17条  竞业禁止

 

17.1        For the purpose of this Contract, each Party undertakes that during the term of this Contract:

 

为本合同之目的,各方保证在本合同存续期间:

 

(a)                 it will not, and will procure none of its Affiliate, whether directly or indirectly, engage in the same or similar business related to AR301 and AR101 targeting indication as that of the JV Company, solely or in cooperation with others in the Territory with respect to the Field of Use;

 

其不会,并促使其关联公司均不会,在区域内与使用领域相关,直接或间接从事与本合同项下的AR301和AR101相同适应症相同或相类似的业务,无论其是独资经营或与其他方合作经营;

 

(b)                 it will procure none of its staff relating to Licensed Technology and product development expertise, whether directly or indirectly, engage in the same or similar business as that of the JV Company, solely or in cooperation with others in the Territory with respect to the Field of Use; and

 

其将促使其与被许可技术和产品开发特长相关的员工不会在区域内与使用领域相关,直接或间接从事与本合同项下的业务相同或相类似的业务,无论其是独资经营或  与其他方合作经营;  及

 

(c)                  it will not sell the same or similar products as that of the JV Company in the Territory with respect to the Field of Use, even if it may engage in the same or similar business outside the Territory.

 

即使其在区域外与使用领域相关,从事相同或相类似的商业活动,其不会直接或间接  生产与合资公司相同或相类似的产品在区域内销售。

 

Article 18  Confidentiality

 

第18条  保密

 

18.1        All technology, know-how, techniques, trade secrets, trade practices, methods, specifications, designs and other proprietary information disclosed by either Party to the JV Company or any other Party under the terms of this Contract or any other Transaction Document, or developed by the JV Company, as well as the terms of this

 

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Contract and other confidential business and technical information (collectively, “Confidential Information”) shall be used by the JV Company and any Party, as well as their respective Affiliates or Representatives, solely for the JV Company’s account and purposes.  Each Party and the JV Company shall maintain the secrecy of all Confidential Information that may be disclosed or furnished to it by the JV Company or the other Party, and it shall not disclose or reveal any such Confidential Information to any third party absent explicit written authorization from the Board or the relevant disclosing Party, as the case may be.  Confidential Information shall exclude information that the receiving Party can demonstrate by reasonably detailed written documentation: (a) was independently developed by the receiving Party without any use of or access to the disclosing Party’s Confidential Information; (b) became known to the receiving Party, without restriction, from a source (having a right to disclose such information) other than the disclosing Party without breach of this Contract; (c) was generally available in the public domain at the time it was disclosed or enters the public domain through no act or omission of the receiving Party; (d) was rightfully known by the receiving party, without restriction, at the time of disclosure; or (e) was approved for disclosure by the disclosing Party beforehand and in writing.

 

合资公司及任意一方及其关联方或代表只有为公司的利益和目的才能使用任何一方根据本合同或任何其他交易文件的条款或因其他原因透露给公司或任意其他一方的,或由公司开发的所有技术、技巧、工艺、行业秘密、行业惯例、方法、规格、设计和其他专有资料,以及本合同的条款及其他保密的商业和技术信息(以下合称”保密信息”)。每一方和合资公司对合资公司或另一方可能向其透露或提供的所有保密信息应负责保密,未得董事会或有关一方(视情况而定)明确的书面授权,不得将此种保密信息透露或泄露给任何第三者。  保密信息不应包括接受方能用足够详细的书面文件证明属于如下情况的信息:(a)接受方未通过使用或获取披露方的保密信息而独立开发的信息;(b)接受方在未违反本合同的情况下从披露方之外的来源(其有权利披露此等信息)不受限制地知晓的信息;(c)披露时已为公众广泛了解的信息或非因接受方的行为或不作为而进入公众领域的信息;(d)披露时已由接受方不受限制地合理知晓的信息;  或(e)经披露方事先书面批准披露的信息。

 

18.2        Notwithstanding the foregoing, Confidential Information obtained by a Party that is restricted hereunder may be disclosed by such Party to its Affiliates, or the Representatives of such Party or its Affiliates, or the investors or prospective investors of the funds prepared for or managed currently or in the future by such Party or its Affiliates and the advisors and agents thereof.  In that event, the receiving Party shall take reasonable precautions to prevent such Affiliates or representatives, or the investors or potential investors of the existing and future funds under

 

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establishment or management by such Party or Affiliates and the consultants and  agents thereof from using Confidential Information for their personal benefit and to prevent any unauthorized disclosure of such Confidential Information to any third party.

 

尽管有前述规定,任何一方可将其得到的受本合同限制的保密信息透露给其关联方或该方或其关联方的代表以及现在和今后所筹建或管理的基金的投资人或潜在投资人及其顾问和代理人。在此情况下,得到资料的一方应采取一切合理的预防措施防止前述关联方或代表或现在和今后所筹建或管理的基金的投资人或潜在投资人及其顾问和代理人为个人利益使用保密信息,并防止其擅自向任何第三方透露保密信息。

 

18.3        The Parties shall also ensure that the JV Company shall take all reasonable precautions, including the conclusion of confidentiality agreements with its employees, to prevent its employees from using Confidential Information for their personal benefit and to prevent any unauthorized disclosure of such Confidential Information to any third party.

 

双方还应确保公司采取一切合理的预防措施,包括与其雇员订立保密协议,以防止其雇员为个人利益使用保密信息,并防止擅自向任何第三方透露保密信息。

 

18.4        Notwithstanding the foregoing, the Parties and the JV Company may with prior written approval of the Party who disclosed the Confidential Information reveal Confidential Information to government personnel to the extent necessary to obtain any required government approval, and to outside lawyers, accountants and consultants to the extent necessary for them to provide their professional assistance; provided that outside individuals shall be requested to undertake to respect the confidentiality provisions of this Contract.

 

尽管有上述规定,双方和合资公司为取得必需的政府批准,在事先得到披露保密信息一方书面同意的情况下,可将保密信息向政府人员作必要透露,也可向提供专业协助的公司外聘的律师、会计师和顾问作必要透露,但据此透露的书面保密信息必须标明其为保密,并应要求合资公司外的人士承诺遵守本合同的保密条款。

 

18.5        Notwithstanding the foregoing, if necessary, the Parties and the JV Company may make necessary disclosure to relevant regulatory authorities or other Governmental Entities any information that (a) is required to be disclosed under any Laws or rules of listing regulators or stock exchanges binding or governing a Party, (b) is reasonably required to be disclosed for Tax purpose or required to be disclosed by relevant Tax regulatory authority, or (c) is required to be disclosed under any Laws,

 

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any biding ruling, award or provision by any court, regulatory authority, or any other  competent Governmental Entity; provided that such disclosure shall be made to the extent practicable, through consultation with other Parties and in light of such Party’s reasonable requirements for the timing, content and manner of such disclosure.

 

尽管有上述规定,如有需要,双方和合资公司可就(a)根据一方受约束或管治的法律、上市监管机构或证券交易所的规则要求披露的,(b)为税务目的合理需要披露或应有关税务监管机构的要求要求披露的,或(c)根据任何法律、任何法院,监管机构,或其他任何有管辖权的政府机构做出的具约束力的判决、判令或规定要求披露的保密信息,向相关监管机构或其它政府机构作必要批露,前提是应在可行的范围内与其它双方协商后并考虑到该方就发送披露的时间、内容和方式上的合理要求后再做出此等披露。

 

18.6        Neither of the Parties hereto shall issue a press release or make any public announcement or other public disclosure or otherwise communicate with any news media with respect to this Contract or any of the transactions contemplated herein without obtaining the prior written consent of the other Parties or use the name, or any part or abbreviation of any form thereof of the other Parties or any Affiliate thereof without obtaining in each instance the prior written consent of them, as the case may be.

 

未经本合同其他双方事先书面同意,本合同任何一方均不得发布与本合同或本合同拟议的交易有关的新闻稿或作出相关公告,亦不得以其他方式与任何新闻媒体进行交流。未经本合同任何一方事先书面同意,本合同任何其他一方也不得在任何情况下使用该方或其任何关联方的名称、姓名或其任何部分或任何形式的简称。

 

CHAPTER 9 BUSINESS TERM

 

第9章  经营期限

 

Article 19 Business Term

 

第19条  经营期限

 

19.1        The business term of the JV Company shall be twenty (20) years commencing on the Establishment Date (“Business Term”).

 

合资公司的经营期限为自成立日期起二十(20)年(“经营期限”)。

 

19.2        If the Parties agree to an extension of the Business Term, the Parties shall cause their appointed Directors to approve the extension and cause the JV Company to file a written application with the competent Record-filing Authority six (6) months

 

48

 

prior to expiration of the Business Term. The extension shall become valid upon issuance of updated Business License by the Registration Authority.

 

如果合同各方同意延长经营期限,各方应促成其委派的董事批准该等延期,并促使合资公司在经营期限届满六(6)个月前,向备案机关提交一份书面申请。该等延期经登记机关出具更新的营业执照后生效。

 

CHAPTER 10 TERMINATION

 

第10章  合同终止

 

Article 20 Termination

 

第20章  合同终止

 

20.1        This Contract shall be terminated and the JV Company shall be dissolved in the following situations:

 

以下情形下本合同解除并解散合资公司:

 

(a)              the Business Term expires and not extended according to Article 19.2 above;

 

经营期限届满;

 

(b)              the Parties decide to terminate the Contract with unanimous written consent

 

合同各方一致书面同意解除本合同;

 

(c)               one Party’s failure to contribute the registered capital it subscribes for according to Article 5, and such failure exceeds six (6) months;

 

合同一方未能按照第5条的规定缴纳出资,且超过六(6)个月;

 

(d)              one Party is involved in liquidation or bankruptcy proceeding or a receiver or administrator is appointed on its assets, or is controlled by third party, or a substantial portion of its assets is seized, forfeited or enforced by any Governmental Entity and not released within sixty (60) days unless the remaining Parties unanimously agree not to terminate this Contract;

 

一方进入清算或破产程序,或其资产被指定接管人或破产管理人,或被第三方控制,或  其资产的重大部分被政府机构查封、没收或强制执行且未能在六十 (60)天内被解除,除非其它各方一致同意不解除本合同;

 

(e)               A Deadlock occurs  and  is  not  resolved  after  the  Parties’  efforts

 

49

 

in accordance with Article 11.10;

 

董事会出现僵局,且经各方根据第11.10条进行的努力后仍未能解决;  或

 

(f)                If the conditions and consequences of the Force Majeure Event prevail for a period in excess of six (6) months and the Parties have been unable to find an equitable solution;

 

若不可抗力的条件和影响持续超过六(6)个月,且双方已经无法找到一个公正的解决办法的;

 

(g)               In the event of occurrence of any breach contained in Article 8.1, the breach has not been remedied at the end of sixty (60) day period as set forth in the breach notice, the non-breaching Party shall have the option to terminate the Contract and dissolve the JV Company; or

 

若第8.1条所载的违约行为出现,该违约没有在根据违约通知所载的六十(60)天期限到期前得到救济,非违约的一方应有权终止本合同并解散合资公司;或

 

(h)              Either Aridis or the JV Company terminates the Technology License and Collaboration Agreement in accordance with the terms and conditions thereunder.

 

Aridis或合资公司根据技术许可和合作协议条款和条件规定终止该协议的。

 

20.2        Any early termination (other than a termination for the reasons specified in the Article (c),(d),(e), (g) or (h) herein above) shall require an unanimous consent by the Board according to this Contract.

 

提前终止应获得董事会根据本合同的一致同意,但根据本条第(c),(d),(e), (g) 或 (h)款规定之原因而终止则除外。

 

20.3        The Parties agree that a non-breaching Party may terminate this Contract by notice in writing to the breaching Party apply directly to the competent Governmental Entity for dissolution of the JV Company without the necessity of obtaining such a Board resolution upon the occurrence of any of the events specified in (c),(d),(e), (g) or (h) herein above.

 

双方同意若出现本条第(c),(d),(e), (g) 或 (h)款规定的事项,非违约方可直接通过书面通知违约方终止本合同,并直接向有管辖权的政府机构申请解散合资公司,无需获得董事会的一致决议。

 

20.4        If, upon the expiration of the term of Business License or upon early dissolution of the JV Company pursuant to Article 20.1 of this Contract, no Party purchases the Equity Interest of the other Party in the JV Company, the

 

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Parties shall cause the Directors to appointed by them to adopt a resolution to liquidate the JV Company, formulate liquidation procedures, establish a liquidation committee and submit its proposals to the department in charge of verification.

 

一旦营业执照所载期限到期或者合资公司根据本合同第20.1条规定提前解散,如果没有一方收购另一方在合资公司中的股权利益,双方应促使其任命的董事通过决议以清算合资公司,规定清算程序,建议清算委员会并将其计划提交负责审核的部门。

 

20.5        The termination of the Contract for any reason, the dissolution of the JV Company or sale of a Party’s Equity Interest to third party shall not release a Party from its Liabilities to pay any sums of money accrued, due and payable to the other Party, or to discharge its then-accrued and unfulfilled obligations including any Liability to the JV Company or other Party in respect of any breach of this Contract.

 

本合同因任何原因终止,或者合资公司解散或一方出售其股权利益给第三方,均免除一方应向另一方支付的任何到期应付的产生的金钱款项的责任,也不免除该方因其任何违反本合同的行为对合资公司或另一方负有的届时产生的和没有履行的义务(包括任何责任)。

 

Article 21 FORCE MAJEURE

 

第21条  不可抗力

 

21.1        Force Majeure Event.

 

不可抗力事件

 

When the obligations of a Party under this Contract cannot be performed in full or in part according to the agreed terms as a direct result of an event that is unforeseeable and the occurrence and consequences of which cannot be prevented or avoided, such as earthquake, typhoon, flood, fire and other natural disasters, war, insurrection and similar military actions, civil unrest and strikes, slow-downs and other labor actions (a “Force Majeure Event”), the liability and obligations of the Party that encounters such Force Majeure Event (the “Hindered Party”) shall be determined pursuant to the provisions below.

 

如果一方不能按约定的条件履行本合同规定的全部或部分义务是某一无法预见且其发生及后果均无法防止或避免的事件所直接造成的,例如地震、台风、水灾、火灾及其它自然灾害;战争、暴乱及类似军事行动;民间骚乱;以及

 

51

 

罢工、怠工及其它劳工运动(以下简称”不可抗力事件”),则应根据以下条款确定遇有上述不可抗力事件的一方(以下简称”受阻方”)的责任和义务。

 

21.2        Consequence of Force Majeure Events.

 

不可抗力事件的后果

 

(a)                 If the following conditions are met, then the Hindered Party shall be fully or partially released from its liability for its failure to perform its obligations hereunder; (i) the Force Majeure Event is the direct cause of the stoppage, impediment or delay encountered by the Hindered Party in performing its obligations under this Contract; (ii) at the time of the occurrence of the Force Majeure Event, the Hindered Party immediately informed the other Party; (iii) the Hindered Party has adopted measures to prevent the worsening of the damages and to remedy the situation; and (iv) the Hindered Party provides written information on such event within fifteen (15) days of its occurrence, including a statement of the reasons for the delay in performing or partially performing this Contract.

 

在满足下列条件的情况下,受阻方不履行本合同项下义务的责任应被全部或部分免除:(i)受阻方在履行其在本合同项下的义务时所遇到的停工、障碍或迟延是不可抗力事件直接造成的;(ii)不可抗力事件发生时,受阻方立即通知另一方,(iii)受阻方已尽其最大努力采取行动以防止损失的扩大并进行补救,(iv)受阻方于发生不可抗力事件后十五(15)天内提供该有关事件的书面资料,包括述明延迟履行或部分履行本合同的理由的说明书。

 

(b)                 If a Force Majeure Event occurs, the Parties shall decide whether this Contract should be amended in light of the impact of the event upon the performance hereof, and whether the Hindered Party should be partially or fully excused from its obligations hereunder.

 

如果发生不可抗力事件,双方应根据事件对履行本合同的影响,决定是否修改本合同,以及是否部分或全部解除受阻方在本合同项下的义务。

 

(c)                  Subject to the fulfillment of the conditions set forth in Article 21.2(a) above and to the extent affected by Force Majeure Event, neither Party shall be liable for any damage, increased costs or loss which the other Party may sustain by reason of a failure or delay of performance due to such Force Majeure Event, and such failure or delay shall not be deemed a breach of

 

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this Contract.

 

若上述第(a)21.2(a)条项下的条件全部满足,则在受不可抗力事件影响范围内,双方均无需就源于不可抗力事件的不履行和延迟履行所导致的损害、成本或损失的增加而承担责任,该等不履行和延迟履行不应视为对本合同的违约。

 

CHAPTER 11 LIABILITIES FOR BREACH OF CONTRACT

 

第11章  违约责任

 

Article  22   Breach of Contract

第22条  违约

 

22.1        If a Party fails to perform any of its material obligations under the Contract, or if a representation or warranty made by a Party under the Contract and any agreements set forth below in the exhibits, the Party shall be deemed to have breached this Contract.

 

若一方未能履行其在本合同项下的主要义务或该方在本合同或其附件协议项下的陈述与保证,该方应被视为已经违反了本合同。

 

Article 23  Defaults and Remedies

第23条  违约与救济

 

23.1        In the event of occurrence of any breach contained in Article 8.1, any non-breaching Party shall notify the breaching Party in writing that the Contract has been breached and that the breach should be remedies within sixty (60) days from giving such notice by the non-breaching Party. If the breach has not been remedied at the end of sixty (60) day period as set forth in the breach notice, the non-breaching Party shall have the option either to receive  to receive damages,  or  terminate the Contract and dissolve the JV Company , and/or  to  buy-out all of the equity ownership of  the breaching Party favorable price or terms.

 

若出现第8.1条项下的任何违约行为,非违约方应以书面通知违约方其已经构成违约且该违约应在该通知发出后六十(60)天内部被纠正。若违约行为未能在违约通知中规定的六十(60)天截止时被纠正,则非违约方应有权获得赔偿金,或者终止本合同并解散合资公司,和/或以优惠的价格或条款将违约方的所有股权收购。

 

53

 

Article 24 Liabilities for Breach

 

第24条  违约责任

 

24.1        Without prejudice to any other provisions hereof, if a Party beaches any of its obligations, covenants or warranties under this Contract, it shall indemnify and hold harmless the JV Company and the other Parties against and from any claims or direct losses incurred therefrom. For clarification, direct losses shall not include, and a Party shall not be liable for, any incidental, contingent, special or consequential losses or damages.

 

在不损害本合同之任何其它规定的前提下,如果一方违反其在本合同项下  的任何义务、承诺或保证,其应就合资公司和其他方由此遭受的任何索赔或  直接损失作出赔偿,并使合资公司和其他方免受损害。为明确起见,直接损  失不包括任何偶然的、或有的、特殊的或间接导致的损失或损害,并且一方  不承担任何该等损失或损害。

 

CHAPTER 12 GOVERNING LAW AND DISPUTE RESOLUTION

 

第12章  法律管辖和争议解决

 

Article 25 Governing Law

 

第25条  法律管辖

 

25.1        The interpretation, execution, performance, dispute resolution and other legal issues arising from this Contract shall be governed by and construed in accordance with the Laws of the PRC, without regard to the conflict of laws provisions thereof..

 

本合同的解释,签订、履行、争议解决和其它出自本合同的法律问题均应当  适用中国法律,并据其解释,但中国法律关于冲突法的规定除外。

 

Article 26 Dispute Resolution

 

第26条  争议解决

 

26.1        In the event of any dispute of this Contract, the Articles of Association in Appendix A and the Technology License and Collaboration Agreement in Appendix B, each Party shall promptly designate one or more representatives to meet with each other to resolve the dispute.

 

本合同和附属合同A(章程)和B(技术许可和合作协议)履行中发生争议,合同各方应立即指定代表人会面解决该争议。

 

26.2        If the dispute is not resolved as a result of the aforesaid meeting, the dispute shall be

 

54

 

resolved by a binding arbitration in the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with its then effective arbitration rules. The arbitration shall be held and any award shall be rendered in Chinese. English translations shall be provided upon request by a Party and each Party bear one half of the cost.

 

如代表人会面不能解决争议的,则该争议由香港国际仲裁中心(”香港国际仲裁中心”)根据其届时有效之仲裁规则进行仲裁解决,仲裁地点为香港,仲裁语言为中文。争议一方有权要求英文翻译,费用有双方各自负担一半。

 

26.3        During the period when a dispute is being resolved, the Parties shall be in all other respects continue their implementation of the Contract.

 

在争议被解决的过程中,双方应继续全面地履行本合同。

 

CHAPTER 13 MISCELLANEOUS

 

第13章  其他规定

 

Article 27 Miscellaneous

 

第27条  其他规定

 

27.1        Each and every section, paragraph, sentence, term and provision of this Contract shall be considered several to the effect that, in the event a court or arbitrator finds any of the same to be invalid or unenforceable, the validity and enforceability, operation, or effect of the remaining sections, paragraphs, sentences, terms and provisions shall not be affected, and this Contract shall be construed in all respects as if the invalid or unenforceable matter had been omitted.

 

本合同的每一条款、段落、句子、词语和规定应被视为可分割的,若法庭或  仲裁员认定任何条款、段落、句子、词语或规定为无效或不可执行,则本合  同的其它条款、段落、句子、词语和规定的有效性和可执行性、操作性或效  力不受其影响,且在对本合同各方面进行解读时,上述无效或不可执行的部  分不应被视为本合同的一部分。

 

27.2        This Contract constitutes the entire agreement between the Parties pertaining to the JV Company and supersedes all prior agreements and understandings of the Parties with respect thereto. It may be amended, including this provision, only by an agreement in writing. All Appendices referred to in this Contract are intended to be and are hereby specifically incorporated into and made a part of this Contract. In the event of any inconsistency between any such Appendix and

 

55

 

this Contract, the terms of this Contract shall govern, unless specifically  agreed otherwise in the Appendix.

 

本合同构成双方就合资公司达成的完整的的协议,并取代双方以前就此所达成的所有的协议和谅解。若需修改本合同包括本条款,仅可通过书面协议修改。所有本合同所指向的附件旨在且已经融入本合同并作为其一部分。若这些附件和本合同之间存在任何不一致,本合同的条款应优先,除非在附件中有特别约定。

 

All Appendices are listed as follows:

这些附件包括:

 

Appendix A:                           Articles of Association of the JV Company

附件A:                                             合资公司的章程

Appendix B:                           Form of Technology License and Collaboration Agreement

附件B:                                             技术许可和合作协议格式

Appendix C:                           Form of Lease Agreement of the JV Company

附件C:                                             合资公司的租赁协议格式

 

27.3        Notices or other communications required to be given by a Party pursuant to this Contract shall be written in Chinese and English and sent by facsimile, electronic mail or personal delivery to the address of the other Party set forth in this Section or to an address updated by such other Party by notice as described in this Section. A notice sent by facsimile transmission or electronic mail shall, if there is a certificate of service, be deemed to be served on the date on which the receipt of the certificate of service is acknowledged by signing, or if there is no certificate of service, be deemed to be served on the date indicated on the fax transmission receipt or the date indicated on the sent email if sent during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day; A notice sent by personal delivery shall be deemed to have been served when the other Party signs to acknowledge its receipt.

 

本合同要求任何一方发出的通知或其他通讯应用中文和英文书写,且采用传真、电子邮件或亲自送达的方式,送达另一方在本条中所述的地址或另一方以本条所述方式通知更改后的地址。如以传真或电子邮件方式送达,有回传送达回证的,以送达回证签收的日期为送达日期,没有送达回证的,如果在接收方的正常营业时间内发送的,以传真或发送的电子邮件回单上注明的日期为送达日期,如果不在接收方的正常营业时间内发送的,则以接收方收悉后的下一营业日作为送达日期;如以直接送达的方式送达,则

 

56

 

于另一方签收时视作已送达。

 

For the purpose of notices, the addresses of the Parties are as follows:

 

为通知目的,各方的通讯地址如下:

 

If to Hepalink, to: No. 21, Langshan Road, Songpingshan, Nanshan District, Shenzhen, the PRC

 

致海普瑞 : 中国深圳市南山区松坪山郎山路2号

 

If to Aridis, to: 5941 Optical Court, San Jose, California 95138, the USA

 

致Aridis : 5941 Optical Court, San Jose, California 95138, the USA

 

抄送(但不构成通知):

 

Sheppard Mullin Richter & Hampton LLP
 30 Rockefeller Plaza, New York, NY 10112
 Facsimile:  917.438.6133
 Email:  JFessler@sheppardmullin.com

 

Addressee:  Jeffery Fessler

 

27.4        Unless otherwise provided for, failure or delay on the part of any Party to exercise any right, power or privilege under this Contract shall not operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude exercise of any other right, power or privilege.

 

除非另有约定,任何一方未能或延迟行使行使本合同下任何权利、权力或特权,不构成其弃权;任何单一或者部分行使该权利、权力或特权,不妨碍其行使其他的权利、权力或特权。

 

27.5        This Contract shall be written in Chinese and English, and both versions have equal legal effect.  In case of discrepancy between the two languages versions, the arbitrators shall decide based on the true intention of the Parties.

 

本合同应以中、英文书写,且两种版本具有同等法律效力。若两种语言版本之间存在任何不一致,应又仲裁员根据双方的真实意思来判定。

 

27.6        Amendments to this Contract must be made by a written agreement signed by each of the Parties in both Chinese and English texts, each of which shall have equal validity and legal effect, and, if necessary, shall be submitted to the original Record-filing Authority (or its successor) for filing.

 

对本合同的修改须由每一方签署中、英两种文本的书面合同方可进行,两种文本具有同等法律效力,在提交原备案机构(或其继任机构)备案。

 

[Signature Page Follows]

 

[签字页在下页]

 

57

 

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

 

兹此为鉴,各方已于文首所载之日期签署并交付本合同。

 

 

	
HEPALINK PHARMACEUTICAL   CO., LTD.
    	
 
    
	
 
    	
 
    
	
深圳市海普瑞药业股份有限公司
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By 签署人:
    	
/s/_姓名: 李锂
    	
 
    
	
Name姓名:
    	
李锂
    	
 
    
	
Title职务:
    	
法定代表人 / Legal   Representative
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ARIDIS PHARMACEUTICALS INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By签署人:
    	
/s/ Vu Truong姓名
    	
 
    
	
Name姓名:
    	
Vu Truong
    	
 
    
	
Title职务:
    	
创始人兼CEO / Founder & CEO
    	
 
    

 

58

 

Appendix A

 

Articles of Association of the JV Company

 

Appendix B

 

Form of Technology License and Collaboration Agreement

 

Appendix C

 

Form of Lease Agreement of the JV Company

 

59

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