Document:

EXHIBIT 2.4(b)(iv)

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

 

 

 

CLINICAL
MANUFACTURING agreement

 

 

By and between

 

 

XBiotech
USA, Inc.

 

 

And

 

 

JANSSEN
RESEARCH & DEVELOPMENT LLC

 

 

 

 

 

 

     

     

    

TABLE OF
CONTENTS

Page

 

	Article 1	 	DEFINITIONS	1
	 	 	 	 	 	 
	Article 2	 	CLINICAL PRODUCT MANUFACTURE AND SUPPLY	5
	 	 	2.1	 	Manufacture and Supply.	5
	 	 	2.2	 	Materials and Capacity.	5
	 	 	2.3	 	Forecasts.	6
	 	 	2.4	 	Purchase Orders	6
	 	 	2.5	 	Packaging.	7
	 	 	2.6	 	Delivery of Clinical Products.	7
	 	 	 	 	 	 
	Article 3	 	PRICING; PAYMENT	7
	 	 	3.1	 	Supply Price.	7
	 	 	3.2	 	Invoices and Payments.	8
	 	 	 	 	 	 
	Article 4	 	TRANSITION	8
	 	 	4.1	 	Transition.	8
	 	 	 	 	 	 
	Article 5	 	SPECIFICATIONS AND QUALITY CONTROL MATTERS	9
	 	 	5.1	 	Compliance with Law.	9
	 	 	5.2	 	Clinical Product Requirements.	9
	 	 	5.3	 	Specifications.	10
	 	 	5.4	 	Quality Agreement.	10
	 	 	5.5	 	Nonconforming Clinical Product.	11
	 	 	5.6	 	Clinical Product Actions.	12
	 	 	5.7	 	Manufacturing Site Audits.	12
	 	 	5.8	 	Regulatory Matters.	12
	 	 	5.9	 	Person-In-Plant.	13
	 	 	5.10	 	Records and Information Management.	14
	 	 	 	 	 	 
	Article 6	 	REPRESENTATIONS, WARRANTIES AND COVENANTS	14
	 	 	6.1	 	Mutual Representations and Warranties.	14
	 	 	6.2	 	Capacity.	15
	 	 	6.3	 	Certain Compliance Matters.	15
	 	 	6.4	 	No Other Representations or Warranties.	15
	 	 	 	 	 	 
	Article 7	 	CONFIDENTIALITY AND PUBLICITY	16
	 	 	7.1	 	Confidentiality.	16
	 	 	 	 	 	 
	Article 8	 	TERM AND TERMINATION	16
	 	 	8.1	 	Term.	16
	 	 	8.2	 	Termination by Mutual Agreement.	16

 

 

    	 	i	 

     

    

	 	 	8.3	 	Termination for Material Breach.	17
	 	 	8.4	 	Termination for Convenience.	17
	 	 	8.5	 	Effects of Termination or Expiration.	17
	 	 	8.6	 	Survival.	17
	 	 	 	 	 	 
	Article 9	 	DISPUTE RESOLUTION	17
	 	 	9.1	 	Dispute Resolution, Generally.	17
	 	 	9.2	 	Mediation.	18
	 	 	9.3	 	Arbitration.	18
	 	 	 	 	 	 
	Article 10	 	INDEMNIFICATION	20
	 	 	10.1	 	Incorporation of Asset Purchase Agreement Indemnification Provisions.	20
	 	 	 	 	 	 
	Article 11	 	MISCELLANEOUS	20
	 	 	11.1	 	Notices.	20
	 	 	11.2	 	Governing Law.	20
	 	 	11.3	 	Assignment.	20
	 	 	11.4	 	Designation of Affiliates.	20
	 	 	11.5	 	Relationship of the Parties.	21
	 	 	11.6	 	Force Majeure.	21
	 	 	11.7	 	Severability.	21
	 	 	11.8	 	English Language.	21
	 	 	11.9	 	Waiver and Non-Exclusion of Remedies.	22
	 	 	11.10	 	Further Assurance.	22
	 	 	11.11	 	Headings.	22
	 	 	11.12	 	Construction.	22
	 	 	11.13	 	Counterparts.	23
	 	 	11.14	 	Entire Agreement; Amendments.	23
	 	 	11.15	 	Specific Performance.	23

 

Exhibit List

 

	Exhibit A	 	Initial Forecast Schedule
	Exhibit B	 	Specifications
	Exhibit C	 	Compliance with Laws
	Exhibit D	 	Policy on Employment of Young People
	Exhibit E	 	Johnson & Johnson Policy for Wood Pallets
	Exhibit F	 	Company Records and Information Requirements
	Exhibit G	 	New Formulations
	Exhibit H	 	Transition Matters

    	 	ii	 

     

    

CLINICAL
MANUFACTURING AGREEMENT

 

This CLINICAL MANUFACTURING
AGREEMENT (this “Agreement”) is entered into as of December 30, 2019 (the “CMA Effective Date”),
by and between JANSSEN RESEARCH & DEVELOPMENT LLC, a Pennsylvania corporation, having its principal place of business
at 800/850 Ridgeview Drive, Horsham, PA 19044 (hereinafter “Company”), and XBIOTECH USA, INC., a Delaware
corporation, having its principal place of business at 5217 Winnebago Lane, Austin, TX 78744 (“SUPPLIER”). Company
and SUPPLIER are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, XBiotech
Inc., an Affiliate of SUPPLIER, and Janssen Biotech, Inc., an Affiliate of Company, have entered into that certain Asset Purchase
Agreement, dated as of December 7, 2019 (the “Asset Purchase Agreement”); and

 

WHEREAS, pursuant
to Section 2.4(b)(iv) and Section 2.4(c)(v) of the Asset Purchase Agreement, the Parties desire to enter into this Agreement for
the Manufacture and supply of Clinical Products by SUPPLIER to Company, subject to the terms and conditions set forth herein; and

 

WHEREAS, this
Agreement constitutes the Clinical Manufacturing Agreement contemplated by the Asset Purchase Agreement.

 

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

 

Article
1

DEFINITIONS

 

As used in this Agreement,
the following terms shall have the meanings set forth in this Article 1, or if not defined in this Article 1, shall
have the meanings set forth in the Asset Purchase Agreement:

 

“Additional
Equipment” shall have the meaning set forth in Section 2.2.2.

 

“Additional
Specification” shall have the meaning set forth in Section 5.3.1.

 

“Affiliate”
means, with respect to a particular Person and a particular time, another Person that controls, is controlled by or is under common
control with such first Person at any such time during the Term. For the purposes of this definition, the word “control”
(including, with correlative meaning, the terms “controlled by” or “under the common control with”) means
the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management
and policies of a Person, whether by the ownership of fifty percent (50%) or more of the voting stock of such Person, by contract,
or otherwise.

 

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

 

“AKA”
shall have the meaning set forth in Exhibit C.

     

     

    

“Backup Equipment”
shall have the meaning set forth in Section 2.2.3.

 

“Business
Day” means a day other than Saturday, Sunday or any other day on which banking institutions in New York, New York are
closed for business.

 

“Clinical
Product” means Product and placebo for use in clinical trials, in the form of bulk drug substance, pre-filled syringes
or vials, in each case as further described in the Specifications or the Additional Specifications.

 

“Clinical
Product Action” shall have the meaning set forth in Section 5.6.1.

 

“Clinical
Product Action Notice” shall have the meaning set forth in Section 5.6.1.

 

“Clinical
Product Requirements” shall have the meaning set forth in Section 5.2.

 

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

 

“Company”
shall have the meaning set forth in the preamble.

 

“Compound”
means the monoclonal antibody known as bermekimab (MABp1), the sequence of which is set forth in Schedule 1.1(c) to the Asset Purchase
Agreement.

 

“CPR Mediation
Procedure” shall have the meaning set forth in Section 9.2.1.

 

“CPR Rules”
shall have the meaning set forth in Section 9.3.1.

 

“Current Capacity”
means, in the case of Clinical Products [*****] up to [*****] per month (or up to [*****] per calendar year), in each case irrespective
of the drug concentration in the formulation included in such [*****].

 

“Dispute”
shall have the meaning set forth in Section 9.1.

 

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

 

“FCA”
shall have the meaning set forth in Exhibit C.

 

“FCPA”
shall have the meaning set forth in Exhibit C.

 

“FDA”
means the U.S. Food and Drug Administration and any successor agency(ies) or authority having substantially the same function.

 

“FFDCA”
means the U.S. Federal Food, Drug, and Cosmetic Act (21 U.S.C. §301 et seq.), as amended from time to time.

 

“Firm Order”
shall have the meaning set forth in Section 2.3.2.

 

[*****] Text omitted
for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively
harmful if publicly disclosed.

    	 	2	 

     

    

“Force Majeure”
means any event beyond the reasonable control of the affected Party, which may include embargoes; war or acts of war, including
terrorism; insurrections, riots, or civil unrest; strikes, lockouts or other labor disturbances; epidemics, fire, floods, earthquakes
or other acts of nature; acts, omissions or delays in acting by any Governmental Authority (other than delays incident to the ordinary
course of drug development); and failure of plant or machinery.

 

“Forecast
Schedule” shall have the meaning set forth in Section 2.3.1.

 

“Good Manufacturing
Practices” or “GMP” means the then-current good manufacturing practices required by the FFDCA, as
amended, and the regulations promulgated thereunder by the FDA at 21 C.F.R. Parts 210 and 211, for the manufacture and testing
of pharmaceutical materials, and comparable Law related to the manufacture and testing of pharmaceutical materials in jurisdictions
outside the U.S., including the quality guideline promulgated by the ICH designated ICH Q7A, titled “Q7A Good Manufacturing
Practice Guidance for Active Pharmaceutical Ingredients” and the regulations promulgated thereunder, in each case as they
may be updated from time to time.

 

“International
Public Organization” means any of the organizations listed in 8 C.F.R. § 316.20, as amended from time to time.

 

“Know-How”
shall have the meaning set forth in the IP License Agreement.

 

“Licensed
Space” shall have the meaning set forth in the License to Occupy.

 

“Licensed
Rights” shall have the meaning set forth in the IP License Agreement, in respect of licenses granted thereunder by SUPPLIER.

 

“Manufacture”
means all activities and processes related to the manufacturing of any pharmaceutical product, or any ingredient thereof, including
purchasing raw materials and intermediates, producing active pharmaceutical ingredient, formulating, and all labeling, packaging,
in-process and finished product testing, storage and release of pharmaceutical product or any component or ingredient thereof,
performance of quality assurance activities related to manufacturing and release of pharmaceutical product, and the performance
of ongoing stability tests and regulatory activities related to any of the foregoing. When used as a verb, to “Manufacture”
means to engage in Manufacturing activities.

 

“Manufacturing
Capacity” means the Current Capacity unless the Parties agree upon a new Manufacturing Capacity, including in connection
with the installation of Additional Equipment, as provided in Section 2.2.2 below.

 

“Manufacturing
Process” means the processes and activities (and each step in the processes and activities) planned to be used to Manufacture
Clinical Products as described in the master batch record for such Clinical Products, which shall be mutually agreed by the Parties
and documented in writing.

 

“Manufacturing
Representative” has the meaning set forth in Section 5.9.

    	 	3	 

     

    

“Manufacturing
Sites” means facilities of SUPPLIER or its Affiliates where Clinical Products are Manufactured from time to time.

 

“Materials”
means active pharmaceutical ingredients, raw ingredients, intermediaries, excipients, processing aids, packaging materials and
any other components used in the Manufacture of Clinical Product.

 

“Nonconforming
Clinical Product” shall have the meaning set forth in Section 5.2.

 

“Nonconformity”
shall have the meaning set forth in Section 5.2.

 

“Officials”
shall have the meaning set forth in Section 6.2.2.

 

“Party”
and “Parties” shall have the meaning set forth in the preamble.

 

“Payment”
shall have the meaning set forth in Section 6.2.2.

 

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

 

“Product”
means any pharmaceutical product containing the Compound, including all dosage forms, presentations, formulations and line extensions
thereof, including a pharmaceutical product which is comprised of the Compound and other pharmaceutically active compound(s) and/or
ingredients, any prototypes thereof and any variations thereof.

 

“Purchase
Order” shall have the meaning set forth in Section 2.4.1.

 

“Quality Agreement”
shall have the meaning set forth in Section 5.4.

 

“Quarterly
Fee” shall have the meaning set forth in Section 3.1.

 

“Quarterly
Manufacturing Capacity” means, with respect to any calendar quarter, the Manufacturing Capacity for such calendar quarter,
being calculated as three (3) times the Manufacturing Capacity per month.

 

“Regulatory
Authority” means any applicable Governmental Authority with authority over the Manufacture or Exploitation of a pharmaceutical
product in a country or jurisdiction, including (a) in the U.S., the FDA, and (b) in the European Union, the EMA.

 

“Specifications”
shall have the meaning set forth in Section 5.2.

 

“SUPPLIER”
shall have the meaning set forth in the preamble.

 

“Term”
shall have the meaning set forth in Section 8.1.

 

“Third Party”
means any Person other than (a) Company, (b) SUPPLIER, or (c) an Affiliate of either of Company or SUPPLIER.

    	 	4	 

     

    

“U.S.”
means the United States of America, including its territories and possessions.

 

“UKBA”
shall have the meaning set forth in Exhibit C.

 

Article
2

CLINICAL PRODUCT MANUFACTURE AND SUPPLY

 

2.1             
Manufacture and Supply.

 

During the Term and
pursuant to the terms of this Agreement, SUPPLIER shall supply to Company all of Company’s requirements of Clinical Products,
except as otherwise permitted by this Agreement or mutually agreed by the Parties in accordance with this Agreement.

 

2.2             
Materials and Capacity.

 

2.2.1       
Prioritization. During the Term, and subject to Company’s compliance with its obligations hereunder,
SUPPLIER shall use reasonable best efforts to maintain capacity adequate to fulfill Company’s requirements of Clinical Products,
as set forth in the applicable Forecast Schedule. If at any time during the Term, SUPPLIER is unable to Manufacture and supply
all of the quantities of Clinical Products forecasted or ordered by Company hereunder, on the one hand, and all of the quantities
of products desired by SUPPLIER, its Affiliates and their Third Party customers, on the other hand, due to (a) shortages of Materials
that are used in both the Manufacture of Clinical Products and in the Manufacture of products for SUPPLIER, its Affiliates or their
Third Party customers or (b) constraints on the capacity at the Manufacturing Sites, then SUPPLIER shall allocate Materials and
capacity (including, for the avoidance of doubt, the use of any Additional Equipment) (i) first, to the Manufacture and supply
of Clinical Products for Company and (ii) second, only to the extent of any remaining Materials and/or capacity, to the Manufacture
and supply of products for SUPPLIER, its Affiliates or their Third Party customers.

 

2.2.2       
Additional Equipment. If, at any time during the Term, notwithstanding SUPPLIER’S compliance with Section
2.2.1, SUPPLIER is unable to Manufacture and supply all of the quantities of Clinical Products forecasted or ordered by Company
hereunder due to constraints on the capacity at the Manufacturing Sites, SUPPLIER shall (i) promptly provide Company with written
notice thereof and (ii) promptly provide such information as is reasonably requested by Company to enable Company to determine
whether such constraints could be alleviated (in whole or in part) through the acquisition of additional equipment. If Company
determines that such constraints could be alleviated (in whole or in part) through the acquisition of additional equipment, Company
may, in its sole discretion, direct SUPPLIER to (and, upon such direction, SUPPLIER shall) acquire such additional equipment (“Additional
Equipment”) at [*****] cost. In connection with the acquisition of any Additional Equipment, the Parties shall agree
to an updated Manufacturing Capacity. [*****] shall retain title to any Additional Equipment following any expiration or termination
of this Agreement, other than the termination of this Agreement by [*****] pursuant to Section 8.3 (in which case [*****] shall
be deemed to have been granted such title as of such termination).

 

[*****] Text omitted
for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively
harmful if publicly disclosed.

    	 	5	 

     

    

2.2.3       
Backup Equipment. At any time during the Term, Company may, in its sole discretion, direct SUPPLIER to (and,
upon such direction, SUPPLIER shall) acquire additional equipment to be used in the event that any of SUPPLIER’S equipment
is temporarily or permanently rendered inoperative (“Backup Equipment”) at [*****] cost. SUPPLIER agrees that,
during the Term, it shall use any such Backup Equipment only to the extent necessary to Manufacture and supply Clinical Products
for Company, and for no other purpose. [*****] shall retain title to any Backup Equipment following any expiration or termination
of this Agreement, other than the termination of this Agreement by [*****] pursuant to Section 8.3 (in which case [*****] shall
be deemed to have been granted such title as of such termination).

 

2.2.4       
Calculation of Costs; Invoicing. Costs for Additional Equipment or Backup Equipment shall include,
in addition to acquisition costs for such Additional Equipment or Backup Equipment, all reasonable documented out-of-pocket costs
incurred by [*****] with respect to the acquisition, installation,
testing and validation of such Additional Equipment or Backup Equipment. [*****] shall include any such costs actually incurred
[*****] together with reasonably detailed supporting documentation therefor.

 

2.3             
Forecasts.

 

2.3.1       
Monthly Forecast Schedule. On the CMA Effective Date and within the
first two weeks of each month commencing following the CMA Effective Date, Company shall submit to SUPPLIER a written, good faith
rolling forecast of Company’s monthly requirements for Clinical Products for at least the following [*****] months or such
shorter period remaining under the Term (each such forecast, a “Forecast Schedule”). The initial Forecast Schedule
is attached hereto as Exhibit A.

 

2.3.2       
Binding Commitment. The first [*****] months of each Forecast Schedule provided by Company shall be a binding
commitment on Company to purchase from SUPPLIER, and, so long as such quantities are within the then-current Manufacturing Capacity,
a binding commitment on SUPPLIER to sell to Company, the specified volume of Clinical Products set forth therein (each, a “Firm
Order”). For the avoidance of doubt, any months of a Forecast Schedule beyond the Firm Order period shall be non-binding.

 

2.4             
Purchase Orders

 

2.4.1       
All Clinical Product shall be supplied pursuant to purchase orders (each, a “Purchase Order”)
submitted by Company to SUPPLIER. Each Purchase Order shall be consistent with the corresponding Firm Order and shall contain such
Purchase Order number, quantities, order schedule, delivery locations, carrier information and other information reasonably necessary
to permit correct delivery of Clinical Products for shipment, including such information and in a format as may be reasonably requested
by SUPPLIER.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

    	 	6	 

     

    

2.4.2       
Exclusive Terms. This Agreement and the Quality Agreement set forth the exclusive contract terms between the
Parties for, and shall apply to, all orders for Clinical Products. Any terms in any Firm Order, Purchase Order, invoice or other
notice submitted by either Party to the other Party that are different from or additional to the provisions hereof shall be null
and void notwithstanding SUPPLIER’s delivery of, and Company’s acceptance of, Clinical Products under any Firm Order,
Purchase Order, invoice or other notice containing such terms.

 

2.5             
Packaging.

 

SUPPLIER shall be responsible
for packaging Clinical Products in accordance with the Specifications and the Quality Agreement.

 

2.6             
Delivery of Clinical Products.

 

SUPPLIER shall deliver
Clinical Products to Company DAP (Incoterms 2010) at the location, and within [*****] days of (before or after) the delivery date,
requested in the applicable Purchase Order. For the avoidance of doubt, SUPPLIER shall retain risk of loss to any Clinical Product
unless and until such Clinical Product has been delivered to Company at such location as specified in the applicable Purchase Order.
SUPPLIER shall provide Company notice of the anticipated delivery date at least three (3) days prior to delivery, and if such anticipated
delivery date changes, SUPPLIER shall promptly provide Company notice of such change.

 

Article
3

PRICING; PAYMENT

 

3.1             
Supply Price.

 

3.1.1       
Subject to Section 3.1.2, for each calendar quarter during the Term, Company shall pay SUPPLIER in consideration
for the Manufacture and supply of Clinical Products (which, for the avoidance of doubt, shall include Company’s right to
occupy the Licensed Space pursuant to the License to Occupy) a fee of [*****] for such quarter (the “Quarterly Fee”).
For purposes of this Agreement, references to “calendar quarters” in this Agreement shall include the calendar quarters
(or partial calendar quarters) (i) beginning on the CMA Effective Date and (ii) ending on the last day of the Term.

 

3.1.2       
If the Term includes any partial calendar quarter, the Quarterly Fee payable in respect of such partial calendar
quarter shall be prorated based on the number of days in such partial calendar quarter (as compared to the number of days in a
full calendar quarter).

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

    	 	7	 

     

    

3.1.3       
If, during any calendar quarter, SUPPLIER fails to deliver all of the Clinical Products specified in one or more
Purchase Orders to be delivered to Company during such calendar quarter, the Quarterly Fee payable in respect of the next calendar
quarter shall be reduced by the percentage of Clinical Products not so delivered as compared to the Clinical Products so specified
for delivery; provided that there shall be no such reduction to the extent such Clinical Products not so delivered were
in excess of the Quarterly Manufacturing Capacity with respect to such calendar quarter.

 

3.1.4       
If Company is entitled to a prorated or reduced Quarterly Fee pursuant to Section 3.1.2, Section 3.1.3 and/or Section
5.5.2(c), but has already paid such Quarterly Fee, SUPPLIER shall promptly reimburse Company for the difference between the Quarterly
Fee paid and the prorated or reduced Quarterly Fee that was actually owed. If the application of Section 3.13 and/or Section 5.5.2(c)
would result in a reduction to a future Quarterly Fee, but no such future Quarterly Fee is payable hereunder, SUPPLIER shall promptly
reimburse Company in an amount equal to the amount that such future Quarterly Fee would have been reduced.

 

3.2             
Invoices and Payments.

 

3.2.1       
The first Quarterly Fee shall be payable within [*****] days of the CMA Effective Date. Thereafter, invoices with
respect to each calendar quarter (or partial calendar quarter) shall be provided to Company no more than [*****] days prior to
the first day of such calendar quarter. Payment terms will be net [*****] days after Company’s receipt of an uncontested
invoice from SUPPLIER; provided, however, the actual payment to SUPPLIER from Company or its designee will not be
made until the next scheduled payment run as set forth at www.ap.jnj.com. Company may contest any invoice or portion thereof if
(i) it reasonably believes that the charges reflected therein do not accurately reflect a proration or reduction in the Quarterly
Fee required under Section 3.1.2, 3.1.3 and/or 5.5.2(c) or (ii) it disputes any of the costs included in such invoice pursuant
to Section 2.2.4, in each case by providing notice to SUPPLIER of such dispute within [*****] days of its receipt of such invoice
Once the matter is resolved, Company shall pay the appropriate charges. SUPPLIER shall continue to perform its obligations under
this Agreement during such dispute. If an invoice is disputed in part, SUPPLIER may issue a new invoice in compliance with this
Section 3.2.1 reflecting solely the undisputed charges, and any such invoice shall be payable within [*****] days after
receipt thereof; provided, however, the actual payment to SUPPLIER from Company or its designee will not be made
until the next scheduled payment run as set forth at www.ap.jnj.com.

 

3.2.2       
SUPPLIER shall not invoice Company hereunder, and no claim for payments will be considered
with respect to Clinical Products Manufactured hereunder prior to both Parties’ duly authorized representatives signing this
Agreement and Company issuing a purchase order number to SUPPLIER with respect to the services provided hereunder, provided that
Company shall use reasonable best efforts to issue such purchase orders at such times and in such manner as will facilitate payments
in accordance with this Section 3.2.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

    	 	8	 

     

    

Article
4

TRANSITION

 

4.1             
Transition.

 

4.1.1       
During the Term and for the [*****] months
after the expiration or termination of this Agreement, the Parties shall cooperate and use reasonable best efforts to enable the
prompt transition of the Manufacture and supply of Product from the existing Manufacturing processes of SUPPLIER at the Manufacturing
Sites to new Manufacturing processes of Company at facilities designated by Company at no additional cost. SUPPLIER shall provide
reasonable technical assistance, including (i) information and Know-How in its control and related to Product or the Compound (including
any information described on Exhibit H) and (ii) introductions and access to SUPPLIER’S suppliers of Materials, in
each case as requested by Company to facilitate the foregoing.

 

4.1.2       
In the event that SUPPLIER is unable to fulfill all of Company’s requirements for Clinical Products (as a result
of constraints on capacity, Force Majeure, insolvency, bankruptcy or otherwise), upon Company’s request, SUPPLIER shall transfer
existing Manufacturing processes for the Compound and Products to Company (or its designee) and provide reasonable technical assistance
to Company (or its designee), including introductions and access to SUPPLIER’S suppliers
of Materials, to the extent reasonably necessary to enable Company to Manufacture the Compound and Products during the Term.

 

4.1.3       
In the event that SUPPLIER is unable to fulfill all of Company’s requirements for Clinical Products (as a result
of constraints on capacity, Force Majeure, insolvency, bankruptcy or otherwise), upon Company’s request, SUPPLIER will transfer
any other information and Know-How in its control reasonably requested by Company in order to enable Company to Manufacture the
Compound and Products during the Term, including (a) complete sets of any preclinical or clinical data generated by or on behalf
of SUPPLIER with respect to the Compound or any Products, (b) raw data tables with respect to the data described in clause (a),
(c) Chemistry, Manufacture and Control (CMC) data or information generated by or on behalf of SUPPLIER with respect to the Compound
or any Product, (d) any information described on Exhibit H and (e) any other Know-How that is necessary or specifically useful
for the Manufacture of the Compound or Products, in each case to the extent that such information or know-how was not previously
provided by SUPPLIER to Company.

 

4.1.4       
Any Know-How or Trade Secrets transferred or otherwise provided by SUPPLIER to Company or its designee pursuant to
this Article 4 shall be deemed to be Licensed Rights, with respect to SUPPLIER as Licensor and Company as Licensee under the IP
License Agreement, unless and solely to the extent such Know-How or Trade Secrets is Seller Intellectual Property.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

    	 	9	 

     

    

Article
5

SPECIFICATIONS AND QUALITY CONTROL MATTERS

 

5.1             
Compliance with Law.

 

SUPPLIER will, and
will cause its Affiliates to, comply with applicable Laws, including GMP, in performing Manufacturing activities with respect to
Clinical Products.

 

5.2             
Clinical Product Requirements.

 

SUPPLIER hereby represents,
warrants and covenants to Company that Clinical Products supplied to Company under this Agreement shall be Manufactured in accordance
with the Manufacturing Process, applicable Laws (including GMP), the Quality Agreement and the policies of Company set forth on
Exhibit D and Exhibit E hereto (the “Manufacturing Methods and Procedures”). SUPPLIER hereby further
represents, warrants and covenants to Company that Clinical Products supplied to Company under this Agreement shall, at the time
of delivery, (a) conform to the applicable Clinical Product specifications set forth on Exhibit B hereto or, to the extent
applicable, the Quality Agreement (as such specifications may be amended from time to time in accordance with Section 5.3.2
or the Quality Agreement, the “Specifications”) or the applicable Additional Specifications, (b) have at least
[*****] months shelf life from the date of filling of the drug product into syringes or vials and (c) conform to the volume and
form (i.e., bulk drug substance, prefilled syringes or vials) ((a), (b) and (c) collectively, the “Clinical Product Requirements”).
Any supply of Clinical Products that does not satisfy the Clinical Product Requirements at the time that such supply is released
by SUPPLIER or its Affiliate to Company is referred to in this Agreement as “Nonconforming Clinical Product”
and shall be regarded as having a “Nonconformity.”

 

5.3             
Specifications.

 

5.3.1       
During the Term, SUPPLIER shall use reasonable best efforts to develop additional
formulations of Clinical Products as described on Exhibit G hereto. SUPPLIER and Company shall cooperate and use reasonable
best efforts to agree on Clinical Product specifications for such additional formulations
(such agreed specifications, as such specifications may be amended from time to time in accordance with Section 5.3.2
or the Quality Agreement, the “Additional Specifications”). For the avoidance
of doubt, once Additional Specifications have been agreed, Company shall be permitted to place Purchase Orders in respect of the
Clinical Products represented by such Additional Specifications. If, during the Term, Company determines that additional formulations
of Clinical Products not set forth on Exhibit G are necessary, SUPPLIER may from time to time cooperate with Company to
develop such formulations and any Additional Specifications with respect thereto, subject to the mutual agreement of the Parties
with respect to the terms and conditions applicable to the activities described in this sentence (it being understood that the
additional formulations set forth on Exhibit G hereto are not subject to this sentence and are instead subject to the first
sentence of this Section 5.3.1 and shall be at no additional cost to Company).

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

    	 	10	 

     

    

5.3.2       
During the Term, if Company proposes any change(s) to the Specifications or Additional Specifications based on any
requirement, request or recommendation of a Governmental Authority, Company shall deliver a written request for such change(s)
to SUPPLIER, and SUPPLIER shall reasonably consider such change(s) in good faith. SUPPLIER shall have final decision-making authority
with respect to such proposed change(s); provided that SUPPLIER shall implement any such change(s) required, requested or
recommended by a Governmental Authority if such change(s) would not reasonably be expected to adversely affect SUPPLIER or its
Affiliates or any Regulatory Authorization held thereby. Company shall be responsible for the incremental costs of any additional
resources required to implement any such change(s) requested by Company.

 

5.4             
Quality Agreement.

 

SUPPLIER and Company
have entered into that certain Quality Agreement, dated as of December 19, 2019, relating to the Clinical Products supplied hereunder
(the “Quality Agreement”). SUPPLIER, either by itself or through its Affiliates, shall perform such quality
control or analytical tests on Clinical Products and provide to Company certifications or other documents, in each case, as may
be provided for in the Quality Agreement, and shall maintain such records as are reasonably necessary to demonstrate compliance
with GMP in the Manufacture of Clinical Products, as may be provided for in the Quality Agreement.

 

5.5             
Nonconforming Clinical Product.

 

5.5.1       
Inspection of Clinical Products.

 

(a)              
Company will inspect Clinical Products supplied under this Agreement promptly upon receipt thereof. Subject to the
immediately following sentence, Company shall have [*****] days following the delivery of any order of Clinical Products to notify
SUPPLIER that it has rejected all or any part of such order in its reasonable and good faith belief that such order contains Nonconforming
Clinical Product, which notice shall be accompanied by a sample of the allegedly Nonconforming Clinical Product. With respect to
latent Nonconformities and Nonconformities not discoverable by Company within [*****] days of delivery through the use of reasonable
inspection methods and procedures (a “Latent Nonconformity”), Company shall give notice to SUPPLIER by the first
to occur of [*****] months after delivery thereof or within [*****] days following detection of any such Latent Nonconformity.

 

(b)              
If Company gives timely notice of allegedly Nonconforming Clinical Products in accordance with Section 5.5.1(a),
such Clinical Products shall be conclusively deemed to be Nonconforming Clinical Products, unless SUPPLIER delivers a written notice
of disagreement (a “Nonconformity Disagreement Notice”) to Company within fifteen (15) days of receiving notice
of the allegedly Nonconforming Clinical Products from Company. If Company fails to give timely notice of allegedly Nonconforming
Clinical Products in accordance with Section 5.5.1(a), such Clinical Products shall be conclusively deemed to have been accepted
by Company.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

    	 	11	 

     

    

5.5.2       
Nonconformity. The following terms shall apply for Nonconforming Clinical Product that have not been accepted,
or deemed accepted, by Company:

 

(a)              
Company shall destroy the Nonconforming Clinical Products or return them to SUPPLIER, in accordance with SUPPLIER’s
written instructions and at SUPPLIER’s expense; and

 

(b)              
SUPPLIER shall, at Company’s request, replace the Nonconforming Clinical Products; and

 

(c)              
SUPPLIER shall reduce the Quarterly Fees owed by Company to SUPPLIER (or refund the Quarterly Fees paid by Company
to SUPPLIER, as applicable), as if SUPPLIER failed to deliver the quantity of Nonconforming Clinical Products, in accordance with
and to the extent required by Section 3.1.3.

 

(d)              
Disagreement Regarding Nonconformity. If SUPPLIER does not agree with Company’s determination that any
Clinical Products are Nonconforming Clinical Products and timely delivers a Nonconformity Disagreement Notice, then the Parties
will select an independent Third Party laboratory reasonably acceptable to each Party to evaluate if the allegedly Nonconforming
Clinical Products meet such requirements. Absent manifest error or fraud, this evaluation will be binding on the Parties. If the
evaluation certifies that the allegedly Nonconforming Clinical Products do not meet the Clinical Product Requirements, SUPPLIER
will be responsible for the cost of the evaluation. If the evaluation certifies that the allegedly Nonconforming Clinical Products
do meet the requirements of Sections 5.2(a) and (b), then (1) Company shall be responsible for the cost of the evaluation,
(2) the Clinical Products shall be deemed accepted, and (3) if SUPPLIER replaced the Nonconforming Clinical Products and if, as
a result of such replacement, the total Clinical Products supplied by SUPPLIER exceeded the Manufacturing Capacity (on an annual
or monthly basis), Company shall pay SUPPLIER for such Clinical Products.

 

5.6             
Clinical Product Actions.

 

5.6.1       
Notification. SUPPLIER shall notify Company in writing promptly following
its determination that any event, incident or circumstance related to safety issues or regulatory concerns has occurred that is
reasonably likely to result in the need for a recall or withdrawal of Clinical Products supplied under this Agreement (a “Clinical
Product Action”), and shall include in such notice (a “Clinical Product Action Notice”) the reasoning
behind such determination and any supporting facts. Such Clinical Product Action Notice shall be given no later than five (5) Business
Days after such determination is made; provided that if any Regulatory Authority (a) threatens or initiates any action to
remove Clinical Products from use in clinical trials in any country, or (b) requires a Party, or any of its Affiliates or (sub)licensees,
to distribute a “Dear Doctor” letter or its equivalent regarding the use of Clinical Products, then, in either case
((a) or (b)), the Clinical Product Action Notice shall be given within one (1) Business Day after SUPPLIER becomes aware of the
action, threat or requirement (as applicable).

 

5.6.2       
Expenses. Unless and solely to the extent a Clinical Product Action is necessitated by a Latent Nonconformity
(or by the bad faith, willful misconduct or gross negligence of, or the material breach of this Agreement by, SUPPLIER), Company
shall be solely responsible for all costs arising out of such Clinical Product Action and shall reimburse SUPPLIER for any out-of-pocket
expenses incurred by SUPPLIER in carrying out a Clinical Product Action. If and then solely to the extent a Clinical Product Action
is necessitated by Latent Nonconformity (or by the bad faith, willful misconduct or gross negligence of, or the material breach
of this Agreement by, SUPPLIER), SUPPLIER shall reimburse Company for any out-of-pocket expenses incurred by Company or its Affiliates
in assisting SUPPLIER to carry out a Clinical Product Action.

    	 	12	 

     

    

5.7             
Manufacturing Site Audits.

 

SUPPLIER will permit
Company to conduct quality assurance audits and inspections of SUPPLIER’s and its Affiliates’ records and facilities
relating to Manufacture of Clinical Products, during normal business hours, in accordance with the terms of the Quality Agreement.
Each Company representative participating in any such audit or inspection shall enter into a confidentiality agreement in a form
reasonably acceptable to SUPPLIER and any applicable Affiliate.

 

5.8             
Regulatory Matters.

 

5.8.1       
SUPPLIER’s Obligations. SUPPLIER shall, and shall ensure that its Affiliates shall, at their own cost,
obtain and maintain throughout the Term any certificates, permits, licenses and approvals issued by any relevant Governmental Authority
required for the Manufacture of Clinical Products at the Manufacturing Sites in accordance with this Agreement.

 

5.8.2       
Regulatory Approval Cooperation. SUPPLIER shall provide Company with all supporting data and information relating
to the Chemistry, Manufacture and Control (CMC) of Clinical Products at the Manufacturing Sites that is in the possession and control
of SUPPLIER and necessary for regulatory submissions by Company, including all records, raw data, reports, authorizations, certificates,
methodologies, batch documentation, raw material specifications, standard operating procedures, standard test methods, certificates
of analysis, certificates of compliance and other documentation in its possession or under its control relating to the Manufacturing
of the Clinical Products.

 

5.8.3       
Regulatory Inspections. SUPPLIER shall permit Company or its representatives to be present at any visit or
inspection by any Regulatory Authority to the extent related to Clinical Products, or to any Manufacturing Site or other facility
used to Manufacture, to test or to warehouse Clinical Products or specific to the systems or process used for the Manufacture of
Clinical Products. SUPPLIER shall notify Company within three (3) Business Days of becoming aware of any planned inspection and
within twenty-four (24) hours of any unplanned or ongoing inspection. SUPPLIER will provide Company copies of all regulatory reports
of inspection, copies of all regulatory correspondence from Regulatory Authorities and copies of proposed written responses to
be provided to Regulatory Authorities for Company’s review and comment before submission to any Regulatory Authority. SUPPLIER
and Company will also provide daily inspection summary reports specific to Clinical Products or to any Manufacturing Site or other
facility used to Manufacture, to test or to warehouse Clinical Products or specific to the systems or process used for the Manufacture
of Clinical Products, in each case, in a format acceptable to both Parties each day of such an inspection. If SUPPLIER receives
any observations or warning from any Regulatory Authority relating to any Clinical Products or Manufacturing Site or other facility
(if it relates to the Manufacture of any Clinical Products) or to the systems or process used for the Manufacture of Clinical Products,
SUPPLIER shall within ten (10) Business Days of the date such observations or warning is received by SUPPLIER, remedy or cause
the remedy of the issues identified in such notice or warning or, if any such issues cannot reasonably be remedied within such
ten (10) Business Day period the Parties will agree on a plan to resolve such issues within a mutually agreed time period. If the
Parties cannot agree, the matter will be referred to the Head of Quality of each Party for resolution, by providing written notice
to the appropriate contact person specified in the relevant Quality Agreement.

    	 	13	 

     

    

5.8.4       
Additional Support. SUPPLIER may from time to time provide additional support in furtherance of the Manufacture
and supply of Clinical Products, including support to assist Company in complying with applicable Law or the requirements of any
Regulatory Authority (e.g., the performance of analytical testing using certain assays in support of demonstrating Phase 2 and
Phase 3 process comparability), subject to the mutual agreement of the Parties with respect to the terms and conditions applicable
to the activities described in this sentence.

 

5.9             
Person-In-Plant.

 

During the Term, SUPPLIER
agrees to permit Company’s personnel or duly authorized representatives to observe and consult with respect to the Manufacturing
of Clinical Products (each such employee or agent a “Manufacturing Representative”). Each Manufacturing Representative
will serve as the Company’s representative at the Manufacturing Sites during Manufacture of Clinical Products. SUPPLIER will
allow each Manufacturing Representative reasonable access to (A) all data and information regarding Manufacture of Clinical Products
and (B) to be present during the Manufacture of Clinical Products. Each Manufacturing Representative will have access only to those
portions of the Manufacturing Sites reasonably related to the Manufacture of Clinical Products as well as reasonable access to
office space, data and communication resources on an as-needed basis to enable such Manufacturing Representative to carry out the
activities contemplated herein. In no event will any Manufacturing Representative interfere with, and SUPPLIER will remain fully
responsible for, the Manufacture of Clinical Products. Each Manufacturing Representative will coordinate closely with SUPPLIER
in order to minimize the impact of his/her presence on operations and will comply with all of SUPPLIER’S policies and procedures
regarding their presence in the Facilities including any training requirements.

 

5.10         
Records and Information Management.

 

SUPPLIER shall comply
with the records and information management provisions set forth on Exhibit F.

 

Article
6

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

6.1             
Mutual Representations and Warranties.

 

Each of the Parties
hereby represents and warrants to the other Party as of the CMA Effective Date that:

    	 	14	 

     

    

6.1.1       
Organization. It is a corporation duly organized, validly existing, and in
good standing under the Laws of the jurisdiction of its organization, and has all requisite corporate power and authority to execute,
deliver, and perform this Agreement.

 

6.1.2       
Binding Agreement. This Agreement is a legal and valid obligation binding
upon such Party and enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, or other Laws of
general application affecting the enforcement of creditor rights, judicial principles affecting the availability of specific performance,
and general principles of equity (whether enforceability is considered a proceeding at law or equity). 

 

6.1.3       
Authorization. The execution, delivery, and performance of this Agreement
by such Party have been duly authorized by all necessary corporate action and do not conflict with any agreement, obligation, instrument,
or understanding, oral or written, to which it is a party or by which it is bound, nor violate any applicable Law or any order,
writ, judgment, injunction, decree, determination, or award of any Governmental Authority presently in effect applicable to such
Party. 

 

6.1.4       
No Further Approval. It is not aware of any government authorization, consent,
approval, license, exemption of or filing or registration with any Governmental Authority under any applicable Law, currently in
effect, necessary for the execution and delivery of this Agreement or any other agreement or instrument executed in connection
herewith. 

 

6.1.5       
No Inconsistent Obligations. It is not under any obligation, contractual or
otherwise, to any Person that conflicts with or is inconsistent in any material respect with the terms of this Agreement, or that
would impede the diligent and complete fulfillment of its obligations hereunder. 

 

6.2             
Capacity.

 

SUPPLIER hereby represents
and warrants to Company that (a) as of the CMA Effective Date, the capacity at the Manufacturing Sites to Manufacture and supply
Clinical Products [*****] will be at least equal to the Current Capacity and (b) it will have sufficient capacity to Manufacture
and supply all of the Clinical Products included on the initial Forecast Schedule attached hereto as Exhibit A.

 

6.3             
Certain Compliance Matters.

 

6.3.1       
No Violation of Law. Notwithstanding any other provision of this Agreement,
neither Party shall be required to undertake any activity or obligation under this Agreement which it has reason to believe may
violate any applicable Laws; provided, however, a Party which so believes shall promptly inform the other Party of
such belief. 

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

 

 

    	 	15	 

     

    

6.3.2       
Anti-Bribery and Corruption. Neither SUPPLIER nor its Affiliates will make
any payment, either directly or indirectly, of money or other assets, including the compensation SUPPLIER derives from this Agreement
(collectively, a “Payment”), to government or political party officials, officials of International Public Organizations,
candidates for public office, or representatives of other businesses or persons acting on behalf of any of the foregoing (collectively,
“Officials”) or other individuals where such Payment would constitute violation of any applicable Law, including
the Foreign Corrupt Practices Act of 1977, 15 U.S.C. §§ 78dd-1, et seq., and the United Kingdom Bribery Act. In addition
regardless of legality, neither SUPPLIER nor its Affiliates will make any Payment either directly or indirectly to Officials or
other individuals if such Payment is for the purpose of improperly influencing decisions or actions to secure a business advantage,
including with respect to the subject matter of this Agreement. SUPPLIER shall have necessary procedures in place to prevent bribery
and corrupt conduct by itself and each of its Affiliates and subcontractors. All activities will be conducted in compliance with
the U.S. False Claims Act and the U.S. Anti-Kickback Statute. SUPPLIER and each of its Affiliates and subcontractors shall conduct
its activities hereunder in accordance with the provisions of Exhibit C to this Agreement.

 

6.4             
No Other Representations or Warranties.

 

EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT OR IN ANY OTHER WRITTEN AGREEMENT EXECUTED BY EACH OF THE PARTIES, THE PARTIES MAKE NO REPRESENTATIONS
OR WARRANTIES OF ANY KIND WHATSOEVER, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, IN FACT OR BY OPERATION OF LAW, BY STATUTE OR
OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, INCLUDING ANY EXPRESS OR IMPLIED WARRANTY OF QUALITY, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF NON-INFRINGEMENT.

 

Article
7

CONFIDENTIALITY and Publicity

 

7.1             
Confidentiality.

 

SUPPLIER will, and
will cause its Affiliates and its and their Representatives, to keep confidential and not disclose to any Person (i) the terms
of this Agreement or (ii) any non-public, confidential or proprietary information of Company or its Affiliates (including information
relating to the Business) obtained pursuant to or in connection with this Agreement and to not use any such information other than
in furtherance of the performance of its obligations hereunder. The obligations of SUPPLIER under this Section 7.1 shall
not apply to information to the extent such information (a) becomes generally available to the public without breach of SUPPLIER’S
or its Affiliates’ obligations under this Section 7.1 or under the Asset Purchase Agreement or any Related Document
or (B) is required to be disclosed by Law or any Order; provided, however, that in the case of the foregoing clause
(B), to the extent not prohibited by such Law or Order, SUPPLIER shall notify Company as early in advance of such disclosure as
is practicable to allow Company to take appropriate measures (and SUPPLIER shall reasonably cooperate, at the expense of Company,
in the taking of such measures) to preserve the confidentiality of such information.

 

    	 	16	 

     

    

Article
8

TERM AND TERMINATION

 

8.1             
Term.

 

This Agreement shall
become effective as of the CMA Effective Date and, unless earlier terminated pursuant to this Article 8, shall continue
in full force and effect until December 31, 2021 (the “Term”); provided that the foregoing shall not
limit any ongoing obligations of SUPPLIER with respect to Clinical Products ordered prior to the end of the Term, such as the performance
of quality assurance activities or ongoing stability tests, as set forth in this Agreement or the Quality Agreement, following
the end of the Term. Without limiting the foregoing, if Company requires additional supply of Clinical Products following the Term
to complete then-ongoing clinical trials, then upon Company’s request, the Parties shall discuss in good faith an extension
to the Term in order for SUPPLIER to provide such additional supply, including with respect to any modifications to the terms of
this Agreement that would apply to such Clinical Product supply during such extension as may be reasonably requested by either
Party. Any such requested modifications shall be commercially reasonable, and any such extension shall be subject to the mutual
written agreement of the Parties.

 

8.2             
Termination by Mutual Agreement.

 

This Agreement may
be terminated at any time upon the mutual written agreement of the Parties.

 

8.3             
Termination for Material Breach.

 

This Agreement may
be terminated by either Party if the other Party has committed a material breach and has failed to remedy such breach within thirty
(30) Business Days following receipt of a written notice of such breach from the non-breaching Party.

 

8.4             
Termination for Convenience.

 

This Agreement may
be terminated at any time by Company upon providing at least sixty (60) days’ prior written notice to SUPPLIER.

 

8.5             
Effects of Termination or Expiration.

 

Termination or expiration
of this Agreement shall not relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date
of such termination or expiration. Each Party shall be free, pursuant to Article 9, to seek, without restriction as to the
number of times it may seek, damages, costs and remedies that may be available to it under applicable Law or in equity and shall
be entitled, following final resolution of a Dispute in accordance with Article 9, to offset the amount of any damages and
costs awarded pursuant to a final determination under Article 9 against any amounts due to such other Party under this Agreement.
Upon termination or expiration of this Agreement, SUPPLIER shall transfer to Company all right, title and interest in, to and under
any Inventory (including Clinical Products) in the possession of SUPPLIER at no cost to Company, and Company will acquire from
SUPPLIER good and marketable title to all such Inventory, free and clear of any Liens.

    	 	17	 

     

    

8.6             
Survival.

 

In the event of termination
or expiration of this Agreement, in addition to the provisions of this Agreement that continue in effect in accordance with their
terms, the following provisions of this Agreement shall survive: Articles 1 (Definitions) (as applicable), 7 (Confidentiality),
9 (Dispute Resolution), 10 (Indemnification) (solely as to activities arising during the Term) and 11
(Miscellaneous); Sections 2.3 (Forecasts), 4.1 (Transition), 5.5 (Nonconforming Clinical Product), 5.6
(Clinical Product Actions), 6.4 (No Other Representations or Warranties), 8.5 (Effects of Termination or Expiration)
and 8.6 (Survival); and any other provisions of this Agreement that are necessary to interpret or effectuate the intent
of the foregoing provisions.

 

Article
9

DISPUTE RESOLUTION

 

9.1             
Dispute Resolution, Generally.

 

The Parties recognize
that a dispute may arise relating to this Agreement (a “Dispute”). Any Dispute, including Disputes that may
involve the parent company, subsidiaries or Affiliates under common control of any Party, shall be resolved in accordance with
this Article 9.

 

9.2             
Mediation.

 

9.2.1       
The Parties shall first attempt in good faith to resolve any Dispute by confidential mediation in accordance with
the then current Mediation Procedure of the International Institute for Conflict Prevention and Resolution (“CPR
Mediation Procedure”) (www.cpradr.org) before initiating arbitration. The CPR Mediation Procedure shall control, except
where it conflicts with these provisions, in which case these provisions control. The mediator shall be chosen pursuant to CPR
Mediation Procedure. The mediation shall be held in New York, New York.

 

9.2.2       
Either Party may initiate mediation by written notice to the other Party of the existence of a Dispute. The Parties
agree to select a mediator within 20 days of the notice and the mediation will begin promptly after the selection. The mediation
will continue until the mediator, or either Party, declares in writing, no sooner than after the conclusion of one full day of
a substantive mediation conference attended on behalf of each Party by a senior business person with authority to resolve the Dispute,
that the Dispute cannot be resolved by mediation. In no event, however, shall mediation continue more than 60 days from the initial
notice by a Party to initiate mediation unless the Parties agree in writing to extend that period.

 

9.2.3       
Any period of limitations that would otherwise expire between the initiation of mediation and its conclusion shall
be extended until 20 days after the conclusion of the mediation.

    	 	18	 

     

    

9.3             
Arbitration.

 

9.3.1       
If the Parties fail to resolve the Dispute in mediation, and a Party desires to pursue resolution of the Dispute,
the Dispute shall be submitted by either Party for resolution in arbitration pursuant to the then current CPR Non-Administered
Arbitration Rules (“CPR Rules”) (www.cpradr.org), except where they conflict with these provisions, in which
case these provisions control. The arbitration will be held in New York, New York. All aspects of the arbitration shall be treated
as confidential.

 

9.3.2       
The arbitrators will be chosen form the CPR Panel of Distinguished Neutrals, unless a candidate not on such panel
is approved by both Parties. Each arbitrator shall be a lawyer with at least 15 years experience with a law firm or corporate law
department of over 25 lawyers or who was a judge of a court of general jurisdiction. To the extent that the Dispute requires special
expertise, the Parties will so inform CPR prior to the beginning of the selection process.

 

9.3.3       
The arbitration tribunal shall consist of three arbitrators, of whom each Party shall designate one in accordance
with the “screened” appointment procedure provided in CPR Rule 5.4. The chair will be chosen in accordance with CPR
Rule 6.4.

 

9.3.4       
If, however, the aggregate award sought by the Parties is less than $5 million and equitable relief is not sought,
a single arbitrator shall be chosen in accordance with the CPR Rules.

 

9.3.5       
Candidates for the arbitrator position(s) may be interviewed by representatives of the Parties in advance of their
selection, provided that all Parties are represented.

 

9.3.6       
The Parties agree to select the arbitrator(s) within 45 days of initiation of the arbitration. The hearing will be
concluded within nine (9) months after selection of the arbitrator(s) and the award will be rendered within 60 days of the conclusion
of the hearing, or of any post-hearing briefing, which briefing will be completed by both sides within 45 days after the conclusion
of the hearing. In the event the Parties cannot agree upon a schedule, then the arbitrator(s) shall set the schedule following
the time limits set forth above as closely as practical.

 

9.3.7       
The hearing will be concluded in ten hearing days or less. Multiple hearing days will be scheduled consecutively
to the greatest extent possible. A transcript of the testimony adduced at the hearing shall be made and shall be made available
to each Party.

 

9.3.8       
The arbitrator(s) shall be guided, but not bound, by the CPR Protocol on Disclosure of Documents and Presentation
of Witnesses in Commercial Arbitration (www.cpradr.org) ("Protocol"). The Parties will attempt to agree on modes
of document disclosure, electronic discovery, witness presentation, etc. within the parameters of the Protocol. If the Parties
cannot agree on discovery and presentation issues, the arbitrator(s) shall decide on presentation modes and provide for discovery
within the Protocol, understanding that the Parties contemplate reasonable discovery.

 

9.3.9       
The arbitrator(s) shall decide the merits of any Dispute in accordance with the law governing this Agreement, without
application of any principle of conflict of laws that would result in reference to a different law. The arbitrator(s) may not apply
principles such as "amiable compositeur" or "natural justice and equity."

    	 	19	 

     

    

9.3.10   
The arbitrator(s) are expressly empowered to decide dispositive motions in advance of any hearing and shall endeavor
to decide such motions as would a United States District Court Judge sitting in the jurisdiction whose substantive law governs.

 

9.3.11   
The arbitrator(s) shall render a written opinion stating the reasons upon which the award is based. The Parties consent
to the jurisdiction of the United States District Court for the district in which the arbitration is held for the enforcement of
these provisions and the entry of judgment on any award rendered hereunder. Should such court for any reason lack jurisdiction,
any court with jurisdiction may act in the same fashion.

 

9.3.12   
Each Party has the right to seek from the appropriate court provisional remedies such as attachment, preliminary
injunction, replevin, etc. to avoid irreparable harm, maintain the status quo, or preserve the subject matter of the Dispute.
Rule 14 of the CPR Rules does not apply to this Agreement.

 

9.3.13   
EACH PARTY HERETO WAIVES: (1) ITS RIGHT TO TRIAL OF ANY ISSUE BY JURY, (2) WITH THE EXCEPTION OF RELIEF MANDATED
BY STATUTE OR RESULTING FROM THE WILLFUL MATERIAL BREACH OF THIS AGREEMENT, ANY CLAIM TO PUNITIVE, EXEMPLARY, MULTIPLIED, INDIRECT,
CONSEQUENTIAL OR LOST PROFITS/REVENUES DAMAGES (EXCEPT, IN EACH CASE, TO THE EXTENT AWARDED TO A THIRD PARTY), AND (3) ANY CLAIM
FOR ATTORNEY FEES, COSTS AND PREJUDGMENT INTEREST.

 

Article
10

INDEMNIFICATION

 

10.1         
Incorporation of Asset Purchase Agreement Indemnification Provisions.

 

This Agreement shall
be deemed to be a “Related Document” for the purposes of Article VII of the Asset Purchase Agreement, and Article VII
of the Asset Purchase Agreement will govern the indemnification obligations of the Parties with respect to any “Losses”,
as such term is defined in the Asset Purchase Agreement, arising under this Agreement (including, for the avoidance of doubt, with
respect to any “Losses” arising from, relating to or otherwise in connection with any breach of or failure to perform
any covenant or agreement of SUPPLIER or Company, as applicable, contained in this Agreement).

    	 	20	 

     

    

Article
11 

MISCELLANEOUS

 

11.1         
Notices.

 

All notices given by
one Party to the other Party under this Agreement will follow the procedures and be delivered to the addresses set forth in Section
9.2 of the Asset Purchase Agreement.

 

11.2         
Governing Law.

 

THIS AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE
GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

 

11.3         
Assignment.

 

Neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned, in whole or in part, by either of the Parties without
the prior written consent of the other Party, and any assignment without such consent shall be null and void, except that either
Party may, without the prior written consent of the other Party, assign (a) any or all of its rights and obligations under this
Agreement to any of its Affiliates (provided that the assigning Party shall remain responsible for the performance of such
assignee Affiliate) or (b) this Agreement in its entirety to a Third Party acquirer of that portion of its business relating to
the subject matter of this Agreement. Any successor or assignee of rights and/or obligations permitted hereunder shall, in writing,
expressly assume performance of such rights and/or obligations.

 

11.4         
Designation of Affiliates.

 

Each Party may discharge
any obligation and exercise any right hereunder through delegation of its obligations or rights to any of its Affiliates. Each
Party hereby guarantees the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause
its Affiliates to comply with the provisions of this Agreement in connection with such performance. Any breach by a Party’s
Affiliate of any of such Party’s obligations under this Agreement shall be deemed a breach by such Party, and the other Party
may proceed directly against such Party without any obligation to first proceed against such Party’s Affiliate.

 

11.5         
Relationship of the Parties.

 

It is expressly agreed
that SUPPLIER, on the one hand, and Company, on the other hand, are independent contractors, and it is further agreed that the
Parties fully intend and expect that the relationship between the two Parties shall not constitute a partnership, joint venture
or agency. Except as expressly provided herein, neither SUPPLIER nor Company shall have the authority to make any statements, representations
or commitments of any kind, or to take any action which shall be binding on the other, without the prior written consent of the
other Party to do so. All individuals employed by a Party shall be employees of that Party and not of the other Party and all costs
and obligations incurred by reason of such employment shall be for the account and expense of such Party.

    	 	21	 

     

    

11.6         
Force Majeure.

 

Both Parties shall
be excused from the performance of their obligations under this Agreement to the extent that such performance is prevented by Force
Majeure and the nonperforming Party promptly provides notice of such Force Majeure circumstances to the other Party. Such excuse
shall be continued so long as the condition constituting Force Majeure continues and the nonperforming Party takes reasonable best
efforts to remove the condition. Notwithstanding the foregoing, a Party shall not be excused from making payments owed hereunder
because of a Force Majeure affecting such Party. If a Force Majeure persists for more than ninety (90) days, then the Parties shall
discuss in good faith the modification of the Parties’ obligations under this Agreement in order to mitigate the delays caused
by such Force Majeure. In the event a Party is prevented from performing its obligations under this Agreement due to Force Majeure
for more than six (6) months according to this Section 11.6, the other Party shall have the right to terminate this Agreement
upon sixty (60) days’ notice after the expiration of such period. A termination under this Section 11.6 by either
Party shall be treated as a termination under Section 8.2.

 

11.7         
Severability.

 

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

 

11.8         
English Language.

 

This Agreement shall
be written in and executed in, and all other communications under or in connection with this Agreement shall be in, the English
language. Any translation into any other language shall not be an official version hereof or thereof, and in the event of any conflict
in interpretation between the English version and such translation, the English version shall control.

 

11.9         
Waiver and Non-Exclusion of Remedies.

 

Any term or condition
of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective
unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. The waiver
by either Party of any right hereunder or of the failure to perform or of a breach by the other Party shall not be deemed a waiver
of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise. The
rights and remedies provided herein are cumulative and do not exclude any other right or remedy provided by applicable Law or otherwise
available except as expressly set forth herein.

    	 	22	 

     

    

11.10     
Further Assurance.

 

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

 

11.11     
Headings.

 

The headings of each
Article and Section in this Agreement have been inserted for convenience of reference only and are not intended to limit or expand
on the meaning of the language contained in the particular Article or Section.

 

11.12     
Construction.

 

Whenever this Agreement
refers to a number of days without using a term otherwise defined herein, such number refers to calendar days, whether or not “calendar
days” is expressly stated. Except where the context otherwise requires, (a) wherever used, the singular shall include the
plural, the plural shall include the singular; (b) the use of any gender shall be applicable to all genders; (c) the terms “including,”
“include,” “includes” and “for example” shall not limit the generality of any description preceding
such term and, as used herein, shall have the same meaning as “including, but not limited to,” and “including,
without limitation”; (d) the words “herein”, “hereof” and “hereunder”, and words of similar
import, refer to this Agreement in its entirety and not to any particular provision hereof; (e) the word “will” means
“shall”; (f) if a period of time is specified and dates from a given day or Business Day, or the day or Business Day
of an act or event, it is to be calculated exclusive of that day or Business Day; (g) “Dollar”, “USD” or
“$” means U.S. Dollars; (h) references to a particular Person include such Person’s successors and assigns to
the extent not prohibited by this Agreement; (i) a capitalized term not defined herein but reflecting a different part of speech
than a capitalized term which is defined herein shall be interpreted in a correlative manner; (j) any definition of or reference
to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein); (k) any provision under this Agreement requiring the mutual agreement of the Parties or the consent
or approval of a Party shall only be satisfied if made in writing signed by the relevant Party(ies) and (l) if this Agreement is
terminated in accordance with its terms, the “Term” shall be deemed to end on the effective date of such termination.
The language of this Agreement shall be deemed to be the language mutually chosen by the Parties and no rule of strict construction
shall be applied against either Party. Each Party represents that it has been represented by legal counsel in connection with this
Agreement and acknowledges that it has participated in the drafting hereof.

 

11.13     
Counterparts.

 

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

    	 	23	 

     

    

11.14     
Entire Agreement; Amendments.

 

This Agreement, including
the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties,
representations, conditions and understandings between the Parties with respect to the subject matter hereof and supersedes, as
of the CMA Effective Date, all prior and contemporaneous agreements and understandings between the Parties with respect to the
subject matter hereof. In the event of any inconsistency between the body of this Agreement or any Exhibits to this Agreement and
the Asset Purchase Agreement or any other Related Document, this Agreement shall govern and control with respect to the supply
of Clinical Product and the specific subject matter hereof, and the Asset Purchase Agreement and other Related Documents shall
govern and control with respect to all other matters. There are no covenants, promises, agreements, warranties, representations,
conditions or understandings, either oral or written, between the Parties with respect to the subject matter hereof other than
as are set forth herein and therein. No subsequent alteration, amendment, change or addition to this Agreement shall be binding
upon the Parties unless reduced to writing and signed by an authorized officer of each Party. In the event of any inconsistency
between the body of this Agreement and any Exhibits to this Agreement, unless otherwise expressly stated to the contrary in such
Exhibit, the terms contained in this Agreement shall govern and control.

 

11.15     
Specific Performance.

 

The Parties agree that
irreparable damage would occur and that the Parties would not have any adequate remedy at law in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in
equity and as further set forth in Article 9. For the avoidance of doubt, this Section 11.15 shall not restrict any
Party from asserting that the terms and provisions of this Agreement have not been breached (or would not be breached) by the actions
or omissions (or intended actions or omissions) of such Party.

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

    	 	24	 

     

    

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

 

 

JANSSEN BIOTECH, INC.

 

	By:	 	/s/ Darren Snellgrove	 
	Name:	 	Darren Snellgrove	 
	Title:	 	Chief Financial Officer Janssen R&D	 

 

 

XBIOTECH USA, INC.

 

	By:	 	/s/ John Simard	 
	Name:	 	John Simard	 
	Title:	 	President & CEOEXHIBIT 2.4(b)(vi)

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

 

 

 

 

 

 

 

 

TRANSITION SERVICES AGREEMENT

 

BY AND BETWEEN

 

JANSSEN RESEARCH & DEVELOPMENT, LLC

 

AND

 

XBIOTECH USA, INC.

 

DATED AS OF DECEMBER
30, 2019

 

 

 

 

 

 

 

 

     

     

    

	ARTICLE I   DEFINITIONS	1
	Section 1.1.   Definitions	1
	Section 1.2.   Glossary of Defined Terms	2
	ARTICLE II   SERVICES	2
	Section 2.1.   Services	2
	Section 2.2.   Performance of Services	2
	Section 2.3.   Use of Services	3
	Section 2.4.   Transitional Nature of Services	3
	Section 2.5.   Use of Third Parties to Provide Services	3
	ARTICLE III   OTHER ARRANGEMENTS	4
	Section 3.1.   Access	4
	Section 3.2.   Seller Manager and Buyer Manager	4
	ARTICLE IV   FEES; TAXES; BOOKS AND RECORDS	4
	Section 4.1.   Fees for Services	4
	Section 4.2.   Invoices	5
	Section 4.3.   Taxes	5
	Section 4.4.   No Set-Off	5
	Section 4.5.   Books and Records; Audit Rights	5
	ARTICLE V   TERM AND TERMINATION	6
	Section 5.1.   Term	6
	Section 5.2.   Termination	6
	Section 5.3.   Effect of Termination	6

 

    	 	-i-	 

     

    

	ARTICLE VI   CONFIDENTIALITY	7
	Section 6.1.   Confidentiality	7
	ARTICLE VII   DISPUTE RESOLUTION	7
	Section 7.1.   Dispute Resolution; Generally	7
	Section 7.2.   Mediation	7
	Section 7.3.   Arbitration	8
	ARTICLE VIII   INDEMNIFICATION; NO WARRANTY; SPECIFIC PERFORMANCE	10
	Section 8.1.   Incorporation of Purchase Agreement Indemnification Provisions	10
	Section 8.2.   NO WARRANTY	10
	Section 8.3.   Specific Performance	10
	ARTICLE IX   MISCELLANEOUS	10
	Section 9.1.   License to Intellectual Property	10
	Section 9.2.   Notices	11
	Section 9.3.   Governing Law	11
	Section 9.4.   Assignment	11
	Section 9.5.   Relationship of the Parties	11
	Section 9.6.   Force Majeure	11
	Section 9.7.   Severability	12
	Section 9.8.   Waiver and Non-Exclusion of Remedies	12
	Section 9.9.   Further Assurances	12
	Section 9.10.   Headings	12
	Section 9.11.   Construction	12
	Section 9.12.   Counterparts	13

 

    	 	-ii-	 

     

    

	Section 9.13.   Entire Agreement; Amendments	13

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	-iii-	 

     

    

EXHIBITS

 

EXHIBIT A – Services

 

EXHIBIT B – Seller Manager and Buyer Manager

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	-iv-	 

     

    

This TRANSITION SERVICES AGREEMENT (this “Agreement”),
dated as of December 30, 2019, is by and between Janssen Research & Development, LLC, a New Jersey limited liability company
(“JRD”), and XBiotech USA, Inc., a Delaware corporation (“Service Provider”). JRD and Service
Provider are sometimes individually referred to herein as a “Party” and are sometimes collectively referred
to herein as the “Parties”.

 

R E C I T A L S:

 

WHEREAS, on December 7, 2019, Janssen Biotech,
Inc., a Pennsylvania corporation (“Buyer”), and XBiotech Inc., a corporation existing under the laws of the
Province of British Columbia (“Seller”), entered into that certain Asset Purchase Agreement (the “Purchase
Agreement”), pursuant to which, among other things, Seller agreed to sell, and Buyer agreed to purchase, all of Seller’s
and its Affiliates’ right, title and interest in, to and under the Purchased Assets, upon the terms and subject to the conditions
set forth therein; and

 

WHEREAS, following the Closing, Service Provider
desires to provide or make available certain Services (as defined below) to JRD and its Affiliates.

 

NOW, THEREFORE, in consideration of the mutual
agreements, provisions and covenants contained in this Agreement and the Purchase Agreement, the Parties hereby agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

Section 1.1.         
Definitions. Capitalized terms used and not defined in this Agreement have the meanings assigned to them in the Purchase
Agreement. In addition, for the purpose of this Agreement, the following terms shall have the meanings set forth below.

 

“Force Majeure Event” means
any event beyond the reasonable control of the affected Party, which may include embargoes; war or acts of war, including terrorism;
insurrections, riots, or civil unrest; strikes, lockouts or other labor disturbances; epidemics, fire, floods, earthquakes or other
acts of nature; acts, omissions or delays in acting by any Governmental Authority (other than delays incident to the ordinary course
of drug development); and failure of plant or machinery.

 

“Service Period” means,
with respect to any Service, the period commencing on the Closing Date and ending at the close of business on the earlier of (i)
the date on which such Service is terminated in accordance with Section 5.2 and (ii) the date on which all of the Specified
Clinical Trials shall have been completed (including any Services which, by their nature, are completed following any Specified
Clinical Trials).

 

“Specified Clinical Trials”
means the (i) Phase 2(b) clinical trials for the Compound with respect to the treatment of atopic dermatitis and hidradenitis suppurativa
and (ii) the investigator-initiated studies for the Compound with respect to the treatment of systemic sclerosis and pancreatic
cancer, in each of cases (i) and (ii), that are ongoing as of the date hereof.

     

     

    

Section 1.2.         
Glossary of Defined Terms. The following terms have the meanings set forth in the Sections set forth below:

 

	Definition	Section
	“Agreement”	Preamble
	“Buyer”	Recitals
	“Buyer Manager”	3.3(b)
	“CPR Mediation Procedure”	7.2(a)
	“CPR Rules”	7.3(a)
	“Dispute”	7.1
	“Fees”	4.1
	“JRD”	Preamble
	“Party” or “Parties”	Preamble
	“Pass-Through Costs”	4.1
	“Protocol”	7.3(h)
	“Purchase Agreement”	Recitals
	“Seller”	Recitals
	“Seller Manager”	3.3(a)
	“Service Provider”	Preamble
	“Services”	2.1
	“Term”	5.1

 

ARTICLE
II

 

SERVICES

 

Section 2.1.         
Services. Commencing on the Closing Date and for the remainder of the applicable Service Period, Service Provider
shall provide, or shall cause one or more of its Affiliates to provide, to JRD and its Affiliates, the services described on Exhibit
A (the “Services”). If, during the Term, JRD identifies any service that is not a Service, which was provided
by Service Provider or any of its Affiliates to the Business during the Reference Period and which JRD determines in good faith
it needs to continue to operate the Business, then JRD may request that Service Provider provide such service, and Service Provider
and JRD shall negotiate in good faith to determine whether Service Provider will provide such service. Upon mutual agreement of
the Parties, such service will be added to Exhibit A, and will thereafter be considered a “Service” hereunder.

 

Section 2.2.         
Performance of Services.

 

(a)              
Service Provider shall perform, or caused to be performed, all Services in a manner that is substantially similar in nature,
frequency and quality to the analogous services provided during the Reference Period by Service Provider and its Affiliates to
the Business. Service Provider shall perform its duties and responsibilities hereunder in good faith and in compliance with applicable
Law and, in the provision of the Services, shall comply with all applicable clinical trial agreements with respect to the Specified
Clinical Trials and shall not deviate from any of the clinical trial protocols applicable to the Specified Clinical Trials or make
any material changes to, or material determinations with respect to, the conduct of the Specified Clinical Trials (including with
respect to study design, budget or headcount), in each case without the consent of JRD.

    	 	-2-	 

     

    

(b)              
Each of Service Provider and JRD agrees to cooperate and use commercially reasonable efforts to obtain any necessary third-party
consents required for the provision of any Services hereunder. If, with respect to a Service, Service Provider and JRD, despite
the use of their respective commercially reasonable efforts, are unable to obtain a required consent or the performance of such
Service by Service Provider or its Affiliates would constitute a violation of applicable Laws, Service Provider shall in good faith
use its commercially reasonable efforts to devise an alternative arrangement for the provision of such Services (which may include,
subject to JRD’s consent, retaining any Contract that would have otherwise been assigned or transferred to Buyer as an Assumed
Contract until the expiration or termination of the applicable Service Period).

 

(c)              
Each Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement.
No Party shall take any action in violation of any such applicable Law that results in Liability being imposed on the other Party.

 

(d)              
JRD agrees to cooperate in good faith with Service Provider to facilitate the performance of the Services by Service Provider.
In furtherance of the foregoing, JRD agrees that Service Provider shall not be deemed to be in breach of its obligations hereunder
to the extent a failure to perform such obligations is caused by any failure or delay of JRD or its Affiliates to satisfy its obligations
under this Agreement. Neither Service Provider nor any of its Affiliates shall be liable for any action or inaction to the extent
taken or omitted to be taken by it pursuant to the instructions received from JRD or its Affiliates.

 

Section 2.3.         
Use of Services. Service Provider shall be required to provide the Services only to JRD and its Affiliates and only
in connection with the conduct by JRD and its Affiliates of the Business.

 

Section 2.4.         
Transitional Nature of Services. Each of Service Provider and JRD acknowledges the transitional nature of the Services,
and Service Provider agrees to cooperate in good faith with JRD and to use commercially reasonable efforts to effectuate a smooth
transition of the Services from Service Provider to JRD (or its designee).

 

Section 2.5.         
Use of Third Parties to Provide Services. Service Provider may perform its obligations to provide a Service through
agents, subcontractors, independent contractors or other Third Parties; provided, however, that (a) the delegation
of performance of the applicable Service does not impact the nature, frequency or quality of such Service and (b) any increased
costs resulting from such delegation shall be borne by Service Provider. Nothing in this Section 2.5 shall relieve Service
Provider of its obligations under this Agreement by use of such agents, subcontractors or independent contractors and a breach
of this Agreement by any such agents, subcontractors, independent contractors or other Third Parties shall be deemed to constitute
a breach of this Agreement by Service Provider.

    	 	-3-	 

     

    

ARTICLE
III

 

OTHER ARRANGEMENTS

 

Section 3.1.         
Access. If, in the course of its performance of the Services hereunder, any of Service Provider or its Affiliates
or any of their respective Representatives is granted by JRD or any of its Affiliates access to JRD’s or its Affiliates’
locations, systems and information, Service Provider agrees to comply, and cause its Affiliates to comply, in all material respects
with JRD’s or its Affiliates’ reasonable policies and to permit its personnel to be appropriately supervised or accompanied
during such access as reasonably required by JRD.

 

Section 3.2.         
Seller Manager and Buyer Manager.

 

(a)              
During the Term, Service Provider shall designate one employee, who initially shall be the individual identified on Exhibit
B, as the individual who shall have overall responsibility for managing and coordinating, as applicable, the provision of the
Services (the “Seller Manager”) and who shall coordinate and consult with the Buyer Manager with regard to the
Services. Service Provider may, from time to time at its reasonable discretion and upon written notice to JRD, designate other
individuals to serve in the capacity of the Seller Manager.

 

(b)              
During the Term, JRD shall designate one employee, who initially shall be the individual identified on Exhibit B,
as the individual who shall have overall responsibility for managing and coordinating, as applicable, the receipt of the Services
(the “Buyer Manager”) and who shall coordinate and consult with the Seller Manager with regard to the Services.
JRD may, from time to time at its reasonable discretion and upon written notice to Service Provider, designate other individuals
to serve in the capacity of the Buyer Manager.

 

(c)              
The Seller Manager and the Buyer Manager shall serve as the respective primary points of contact for Service Provider, JRD
and each of their respective Affiliates with respect to the subject matter of this Agreement.

 

ARTICLE
IV

 

FEES; TAXES; BOOKS AND RECORDS

 

Section 4.1.         
Fees for Services. In consideration for all of the Services to be provided hereunder, for each calendar quarter during
the Term, JRD shall pay Service Provider a fee for such quarter equal to all Pass-Through Costs (as defined below) incurred by
Service Provider during such calendar quarter [*****] (collectively, the “Fees”). For purposes of this Agreement,
“Pass-Through Costs” shall mean those reasonable documented amounts and fees paid to [*****] during the applicable
Service Periods, together with such [*****] in each case under the [*****] during the applicable Service Periods. For the avoidance
of doubt, Pass-Through Costs shall not include any internal costs or expenses of Service Provider or its Affiliates.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

    	 	-4-	 

     

    

Section 4.2.         
Invoices. Invoices with respect to each calendar quarter (or partial calendar quarter), together with reasonably
detailed supporting documentation therefor, shall be provided to JRD within [*****] days following the last day of such calendar
quarter (or, if earlier, the expiration of the Term). Payment terms will be net [*****] days after JRD’s receipt of an undisputed
invoice from Service Provider; provided, however, the actual payment to Service Provider from JRD or its designee
will not be made until the next scheduled payment run as set forth at www.ap.jnj.com. JRD may contest any invoice or portion thereof
if it reasonably believes that the charges reflected therein are inappropriate or questionable. Once the matter is resolved, JRD
shall pay the appropriate charges. Service Provider shall continue to perform its obligations under this Agreement during such
dispute. If an invoice is disputed in part, Service Provider may issue a new invoice in compliance with this Section 4.2
reflecting solely the undisputed charges, and any such invoice shall be payable within [*****] days after receipt thereof; provided,
however, the actual payment to Service Provider from JRD or its designee will not be made until the next scheduled payment
run as set forth at www.ap.jnj.com.

 

Section 4.3.         
Taxes. JRD shall bear any sales, use, value-added and similar Taxes imposed by any Taxing Authority attributable
to the Services provided hereunder. Notwithstanding anything in this Agreement to the contrary, JRD and its Affiliates shall be
entitled to deduct and withhold from any amount payable pursuant to this Agreement such amounts as JRD believes in good faith are
required to be deducted and withheld with respect to the making of such payment under any provision of federal, state or local
(in each case, whether domestic or foreign) Tax Law. To the extent that amounts are deducted and withheld and paid over to the
appropriate Taxing Authority, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person
in respect of which such deduction and withholding was made.

 

Section 4.4.         
No Set-Off. Except as mutually agreed to in writing by Service Provider and JRD, no Party or any of its Affiliates
shall have any right of set off or other similar rights with respect to (a) any amounts invoiced or paid pursuant to this Agreement
or (b) any other amounts claimed to be owed to the other Party or any of its Affiliates arising out of this Agreement.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

    	 	-5-	 

     

    

Section 4.5.         
Books and Records; Audit Rights. Service Provider and its Affiliates shall keep complete and accurate records relating
to the Services provided hereunder and the related Fees. JRD shall have the right, not more frequently than once a year, at its
own expense, to have an independent, certified public accountant selected by JRD and reasonably acceptable to Service Provider,
review any such records of Service Provider and its Affiliates upon thirty (30) days prior written notice and during regular business
hours and under obligation of confidence and subject in all cases to any confidentiality obligations Service Provider and its Affiliates
have to Third Parties, for the sole purpose of verifying the Fees related to Services performed by or on behalf of Service Provider
and its Affiliates under this Agreement. The report of the independent public accountant shall be shared with Service Provider
at least fifteen (15) days prior to distribution of the final report to JRD, such that Service Provider can provide the independent
public accountant with justifying remarks for inclusion in the report prior to sharing the conclusions of such independent public
audit with JRD. The final audit report will be shared with Service Provider and JRD at the same time and specify whether the Fees
paid to Service Provider were consistent with Service Provider’s and its Affiliates’ Pass-Through Costs incurred in
the performance of Services, or, if inconsistent, the amount of any underpayment or overpayment. If the review of such records
reveals an inconsistency, then JRD shall promptly pay to Service Provider any underpaid amounts that should have been invoiced
to JRD and Service Provider shall promptly pay to JRD any overpaid amounts that should not have been invoiced to JRD. If any such
discrepancies are an overpayment of amounts due under this Agreement greater than [*****] percent [*****] of the amounts actually
due for any prior [*****] month period, Service Provider shall pay all reasonable costs incurred in conducting such review. Once
JRD has conducted a review and audit of Service Provider in respect of any given period, it may not subsequently re-inspect Service
Provider’s or its Affiliates’ records in respect of such period, unless a subsequent audit of a separate reporting
period uncovers fraud on the part of Service Provider or its Affiliates that is reasonably expected to have been occurring during
the prior audited period.

 

ARTICLE
V

 

TERM AND TERMINATION

 

Section 5.1.         
Term. The term of this Agreement (the “Term”) shall commence on the Closing Date and, unless earlier
terminated pursuant to Section 5.2, shall terminate upon the earlier to occur of: (a) the termination of all Service Periods;
or (b) the mutual written agreement of the Parties to terminate this Agreement in its entirety. JRD may request, subject to Service
Provider’s consent (not to be unreasonably withheld, conditioned or delayed), to extend the Service Period with respect to
any or all of the Services as may be agreed to by the Parties.

 

[*****] Text omitted for confidential treatment. The redacted
information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

    	 	-6-	 

     

    

Section 5.2.         
Termination.

 

(a)              
Subject to Section 5.3 and without prejudice to JRD’s rights with respect to a Force Majeure Event, JRD may
from time to time terminate this Agreement with respect to the entirety of any individual Service or a portion thereof for any
reason or no reason, by the giving of written notice to Service Provider of such Service specifying the date such termination shall
be effective, which shall in no event be less than thirty (30) days after receipt by Service Provider of such notice.

 

(b)              
Service Provider may terminate this Agreement in its entirety or with respect to any individual Service or a portion thereof
at any time upon written notice to JRD if JRD has failed to perform any of its material obligations under this Agreement, including
making payment of Fees for any Service when due (other than amounts under dispute in accordance with Section 4.2), and such
failure shall continue uncured for a period of thirty (30) days after receipt by JRD of a written notice of such failure from Service
Provider.

 

Section 5.3.         
Effect of Termination. Upon the termination of any Service pursuant to this Agreement, Service Provider shall have
no further obligation to provide the terminated Service to JRD, and JRD shall have no obligation to pay any future Fees relating
to any such Service; provided, however, that JRD shall remain obligated to Service Provider for the Fees owed and
payable in respect of Services provided prior to the effective date of termination for such Service. In connection with the termination
of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such termination,
and in connection with a termination of this Agreement in its entirety, Article I, Section 4.5, this Article V,
Article VII and Article VIII, all confidentiality obligations under this Agreement (including Article VI)
and Liability for all due and unpaid Fees, shall survive such termination. The termination of this Agreement shall not relieve
the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination.

 

ARTICLE
VI

 

CONFIDENTIALITY

 

Section 6.1.         
Confidentiality.

 

Service Provider will, and will cause its
Affiliates and its and their Representatives, to keep confidential and not disclose to any Person (i) the terms of this Agreement
or (ii) any non-public, confidential or proprietary information of JRD or its Affiliates (including information relating to the
Business) obtained pursuant to or in connection with this Agreement and to not use any such information other than in furtherance
of the performance of the Services. The obligations of Service Provider under this Section 6.1 shall not apply to information to
the extent such information (a) becomes generally available to the public without breach of Service Provider's or its Affiliates’
obligations under this Section 6.1 or under the Purchase Agreement or any Related Document or (b) is required to be disclosed by
Law or any Order; provided, however, that in the case of the foregoing clause (b), to the extent not prohibited by such Law or
Order, Service Provider shall notify JRD as early in advance of such disclosure as is practicable to allow JRD to take appropriate
measures (and Service Provider shall reasonably cooperate, at the expense of JRD, in the taking of such measures) to preserve the
confidentiality of such information.

    	 	-7-	 

     

    

ARTICLE
VII

 

DISPUTE RESOLUTION

 

Section 7.1.         
Dispute Resolution; Generally. The Parties recognize that a dispute may arise relating to this Agreement (a “Dispute”).
Any Dispute, including Disputes that may involve the parent company, subsidiaries or Affiliates under common control of any Party,
shall be resolved in accordance with this Article VII; provided that in no event is anything in this Article VII
intended to limit, or shall be construed to limit, in any manner, the Parties’ rights to seek specific performance pursuant
to Section 8.3.

 

Section 7.2.         
Mediation.

 

(a)              
The Parties shall first attempt in good faith to resolve any Dispute by confidential mediation in accordance with the then
current Mediation Procedure of the International Institute for Conflict Prevention and Resolution (“CPR Mediation
Procedure”) (www.cpradr.org) before initiating arbitration. The CPR Mediation Procedure shall control, except where it
conflicts with these provisions, in which case these provisions control. The mediator shall be chosen pursuant to CPR Mediation
Procedure. The mediation shall be held in New York, New York.

 

(b)              
Either Party may initiate mediation by written notice to the other Party of the existence of a Dispute. The Parties agree
to select a mediator within twenty (20) days of the notice and the mediation will begin promptly after the selection. The mediation
will continue until the mediator, or either Party, declares in writing, no sooner than after the conclusion of one (1) full day
of a substantive mediation conference attended on behalf of each Party by a senior business person with authority to resolve the
Dispute, that the Dispute cannot be resolved by mediation. In no event, however, shall mediation continue more than sixty (60)
days from the initial notice by a Party to initiate mediation unless the Parties agree in writing to extend that period.

 

(c)              
Any period of limitations that would otherwise expire between the initiation of mediation and its conclusion shall be extended
until twenty (20) days after the conclusion of the mediation.

 

Section 7.3.         
Arbitration.

 

(a)              
If the Parties fail to resolve the Dispute in mediation, and a Party desires to pursue resolution of the Dispute, the Dispute
shall be submitted by either Party for resolution in arbitration pursuant to the then current CPR Non-Administered Arbitration
Rules (“CPR Rules”) (www.cpradr.org), except where they conflict with these provisions, in which case these
provisions control. The arbitration will be held in New York, New York. All aspects of the arbitration shall be treated as confidential.

    	 	-8-	 

     

    

(b)              
The arbitrators will be chosen form the CPR Panel of Distinguished Neutrals, unless a candidate not on such panel is approved
by both Parties. Each arbitrator shall be a lawyer with at least fifteen (15) years’ experience with a law firm or corporate
law department of over twenty-five (25) lawyers or who was a judge of a court of general jurisdiction. To the extent that the Dispute
requires special expertise, the Parties will so inform CPR prior to the beginning of the selection process.

 

(c)              
The arbitration tribunal shall consist of three (3) arbitrators, of whom each Party shall designate one in accordance with
the “screened” appointment procedure provided in CPR Rule 5.4. The chair will be chosen in accordance with CPR Rule
6.4.

 

(d)              
If, however, the aggregate award sought by the Parties is less than $5 million and equitable relief is not sought, a single
arbitrator shall be chosen in accordance with the CPR Rules.

 

(e)              
Candidates for the arbitrator position(s) may be interviewed by representatives of the Parties in advance of their selection,
provided that all Parties are represented.

 

(f)               
The Parties agree to select the arbitrator(s) within forty-five (45) days of initiation of the arbitration. The hearing
will be concluded within nine (9) months after selection of the arbitrator(s) and the award will be rendered within sixty (60)
days of the conclusion of the hearing, or of any post-hearing briefing, which briefing will be completed by both sides within forty-five
(45) days after the conclusion of the hearing. In the event the Parties cannot agree upon a schedule, then the arbitrator(s) shall
set the schedule following the time limits set forth above as closely as practical.

 

(g)              
The hearing will be concluded in ten (10) hearing days or less. Multiple hearing days will be scheduled consecutively to
the greatest extent possible. A transcript of the testimony adduced at the hearing shall be made and shall be made available to
each Party.

 

(h)              
The arbitrator(s) shall be guided, but not bound, by the CPR Protocol on Disclosure of Documents and Presentation of
Witnesses in Commercial Arbitration (www.cpradr.org) (“Protocol”). The Parties will attempt to agree on
modes of document disclosure, electronic discovery, witness presentation, etc. within the parameters of the Protocol. If the Parties
cannot agree on discovery and presentation issues, the arbitrator(s) shall decide on presentation modes and provide for discovery
within the Protocol, understanding that the Parties contemplate reasonable discovery.

 

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

 

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

    	 	-9-	 

     

    

(k)              
The arbitrator(s) shall render a written opinion stating the reasons upon which the award is based. The Parties consent
to the jurisdiction of the United States District Court for the district in which the arbitration is held for the enforcement of
these provisions and the entry of judgment on any award rendered hereunder. Should such court for any reason lack jurisdiction,
any court with jurisdiction may act in the same fashion.

 

(l)                
Each Party has the right to seek from the appropriate court provisional remedies such as attachment, preliminary injunction,
replevin, etc. to avoid irreparable harm, maintain the status quo, or preserve the subject matter of the Dispute. Rule 14 of the
CPR Rules does not apply to this Agreement.

 

(m)            
EACH PARTY HERETO WAIVES: (1) ITS RIGHT TO TRIAL OF ANY ISSUE BY JURY, (2) WITH THE EXCEPTION OF RELIEF MANDATED BY STATUTE
OR RESULTING FROM THE WILLFUL MATERIAL BREACH OF THIS AGREEMENT, ANY CLAIM TO PUNITIVE, EXEMPLARY, MULTIPLIED, INDIRECT, CONSEQUENTIAL
OR LOST PROFITS/REVENUES DAMAGES (EXCEPT, IN EACH CASE, TO THE EXTENT AWARDED TO A THIRD PARTY), AND (3) ANY CLAIM FOR ATTORNEY
FEES, COSTS AND PREJUDGMENT INTEREST.

 

ARTICLE
VIII

 

INDEMNIFICATION; NO WARRANTY; SPECIFIC PERFORMANCE

 

Section 8.1.         
Incorporation of Purchase Agreement Indemnification Provisions. This Agreement shall be deemed to be a “Related
Document” for the purposes of Article VII of the Purchase Agreement, and Article VII of the Purchase Agreement
will govern the indemnification obligations of the Parties with respect to any “Losses”, as such term is defined in
the Purchase Agreement, arising under this Agreement (including, for the avoidance of doubt, with respect to any “Losses”
arising from, relating to or otherwise in connection with any breach of or failure to perform any covenant or agreement of Service
Provider or JRD, as applicable, contained in this Agreement).

 

Section 8.2.         
NO WARRANTY. JRD HEREBY ACKNOWLEDGES THAT SERVICE PROVIDER AND ITS AFFILIATES DO NOT ORDINARILY PROVIDE TO THIRD
PARTIES SERVICES SUCH AS THE SERVICES AS PART OF THEIR RESPECTIVE BUSINESS ACTIVITIES. JRD ACKNOWLEDGES AND AGREES THAT ALL SERVICES
ARE PROVIDED ON AN “AS IS” BASIS AND THAT JRD ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF
AND RELIANCE UPON THE SERVICES. ACCORDINGLY, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NONE OF SERVICE PROVIDER OR ITS AFFILIATES
MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN CONNECTION WITH OR
WITH RESPECT TO ANY OF THE SERVICES. SERVICE PROVIDER 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 THE NON-INFRINGEMENT
OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

    	 	-10-	 

     

    

Section 8.3.         
Specific Performance. The Parties agree that irreparable damage would occur and that the Parties would not have any
adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition
to any other remedy to which they are entitled at law or in equity and as further set forth in Article VII. For the avoidance
of doubt, this Section 8.3 shall not restrict any Party from asserting that the terms and provisions of this Agreement have
not been breached (or would not be breached) by the actions or omissions (or intended actions or omissions) of such Party.

 

ARTICLE
IX

 

MISCELLANEOUS

 

Section 9.1.         
License to Intellectual Property. JRD shall grant to Service Provider a nonexclusive, worldwide, royalty-free license
to use Intellectual Property Rights owned by Service Provider solely for the purpose of, and only to the extent necessary for,
providing the Services.

 

Section 9.2.         
Notices. All notices given by one Party to the other Party under this Agreement will follow the procedures and be
delivered to the addresses set forth in Section 9.2 of the Purchase Agreement.

 

Section 9.3.         
Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

 

Section 9.4.         
Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in
whole or in part, without the prior written consent of the other Party, and any assignment without such consent shall be null and
void, except that JRD may, without the consent of Service Provider, assign any or all of its rights and obligations under this
Agreement to any of its Affiliate (provided that JRD shall remain responsible for the performance of such assignee Affiliate).
Any successor or assignee of rights and/or obligations permitted hereunder shall, in writing, expressly assume performance of such
rights and/or obligations.

 

Section 9.5.         
Relationship of the Parties. It is expressly agreed that Service Provider, on the one hand, and JRD on the other
hand, are independent contractors, and it is further agreed that the Parties fully intend and expect that the relationship between
the two Parties shall not constitute a partnership, joint venture or agency. Except as expressly provided herein, neither Service
Provider nor JRD shall have the authority to make any statements, representations or commitments of any kind, or to take any action
which shall be binding on the other, without the prior written consent of the other Party to do so. All individuals employed by
a Party shall be employees of that Party and not of the other Party and all costs and obligations incurred by reason of such employment
shall be for the account and expense of such Party.

    	 	-11-	 

     

    

Section 9.6.         
Force Majeure. The failure by Service Provider to perform any term hereunder when caused by or resulting from a Force
Majeure Event shall not constitute a default or breach under any term of this Agreement; provided, however, that
Service Provider shall use its commercially reasonable efforts to continue to perform its obligations under this Agreement and
to minimize the adverse effects arising from any Force Majeure Event. If any such excused delay occurs, the Service Period shall
be extended for a period equal to the time lost by reason of the delay unless this Agreement has previously been terminated under
Article V or under this Section 9.6. Service Provider shall, as soon as reasonably practicable after the occurrence
of any such event, (a) provide written notice to JRD of the nature and extent of any such Force Majeure Event; and (b) use its
commercially reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable
unless this Agreement has previously been terminated under Article V or under this Section 9.6. During the period
of a Force Majeure Event, (i) no Fees shall be assessed or otherwise accrue for the duration of such Force Majeure Event to the
extent such Fees relate to Services Service Provider is unable to provide as a result of such Force Majeure Event and (ii) JRD
shall be entitled to permanently terminate such Service(s) if a Force Majeure Event shall continue to exist for more than thirty
(30) consecutive days by delivering written notice of such termination to Service Provider, it being understood that such termination
may be effective immediately upon delivery of such written notice.

 

Section 9.7.         
Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable by any
court of competent jurisdiction from which no appeal can be or is taken, the provision shall be considered severed from this Agreement
and shall not serve to invalidate any remaining provisions hereof. The Parties shall make good faith efforts to replace any invalid
or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the Parties when entering
this Agreement may be realized.

 

Section 9.8.         
Waiver and Non-Exclusion of Remedies. Any term or condition of this Agreement may be waived at any time by the Party
that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed
by or on behalf of the Party waiving such term or condition. The waiver by either Party of any right hereunder or of the failure
to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or
failure by such other Party whether of a similar nature or otherwise. The rights and remedies provided herein are cumulative and
do not exclude any other right or remedy provided by applicable Law or otherwise available except as expressly set forth herein.

 

Section 9.9.         
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 to carry out
more effectively the provisions and purposes hereof.

 

Section 9.10.     
Headings. The headings of each Article and Section in this Agreement have been inserted for convenience of reference
only and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section.

    	 	-12-	 

     

    

Section 9.11.     
Construction. Whenever this Agreement refers to a number of days without using a term otherwise defined herein, such
number refers to calendar days, whether or not “calendar days” is expressly stated. Except where the context otherwise
requires, (a) wherever used, the singular shall include the plural, the plural shall include the singular; (b) the use of any gender
shall be applicable to all genders; (c) the terms “including,” “include,” “includes” and “for
example” shall not limit the generality of any description preceding such term and, as used herein, shall have the same meaning
as “including, but not limited to,” and “including, without limitation”; (d) the words “herein”,
“hereof” and “hereunder”, and words of similar import, refer to this Agreement in its entirety and not
to any particular provision hereof; (e) the word “will” means “shall”; (f) if a period of time is specified
and dates from a given day or Business Day, or the day or Business Day of an act or event, it is to be calculated exclusive of
that day or Business Day; (g) “Dollar”, “USD” or “$” means U.S. Dollars; (h) references to
a particular Person include such Person’s successors and assigns to the extent not prohibited by this Agreement; (i) a capitalized
term not defined herein but reflecting a different part of speech than a capitalized term which is defined herein shall be interpreted
in a correlative manner; (j) any definition of or reference to any agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein); (k) any provision under this Agreement
requiring the mutual agreement of the Parties or the consent or approval of a Party shall only be satisfied if made in writing
signed by the relevant Party(ies) and (l) if this Agreement is terminated in accordance with its terms, the “Term”
shall be deemed to end on the effective date of such termination. The language of this Agreement shall be deemed to be the language
mutually chosen by the Parties and no rule of strict construction shall be applied against either Party. Each Party represents
that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the
drafting hereof.

 

Section 9.12.     
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. This Agreement may be executed by .pdf or other electronically
transmitted signatures and such signatures shall be deemed to bind each Party as if they were the original signatures.

 

Section 9.13.     
Entire Agreement; Amendments. This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive
agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties
with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings between the
Parties with respect to the subject matter hereof. In the event of any inconsistency between the body of this Agreement or any
Exhibits to this Agreement and the Asset Purchase Agreement or any other Related Document, this Agreement shall govern and control
with respect to the provision of Services and the specific subject matter hereof, and the Asset Purchase Agreement and other Related
Documents shall govern and control with respect to all other matters. There are no covenants, promises, agreements, warranties,
representations, conditions or understandings, either oral or written, between the Parties with respect to the subject matter hereof
other than as are set forth herein and therein. No subsequent alteration, amendment, change or addition to this Agreement shall
be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.

    	 	-13-	 

     

    

* * * *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	-14-	 

     

    

IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed by their duly authorized representatives.

 

	JANSSEN RESEARCH & DEVELOPMENT, LLC

	 	XBIOTECH USA, INC.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:	/s/ Darren Snellgrove	 	By:	 	/s/ John Simard	 
	 	Name: Darren Snellgrove	 	 	Name:	John Simard
	 	Title: Chief Financial Officer Janssen R&D	 	 	Title:	President & CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Transition Services
Agreement]

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