Document:

License Agreement with ActivX Biosciences, Inc.

 EXHIBIT 10.21 
 CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
 LICENSE AGREEMENT 
 This License Agreement, effective as of August 1, 2006 (the “Effective Date”), is by and
between Phenomix Corporation, a corporation organized under the laws of Delaware (“Phenomix”) and ActivX Biosciences, Inc., a corporation organized under the laws of Delaware (“ActivX”). Phenomix and ActivX may be referred to
individually herein as a “Party” or collectively as the “Parties.” 
 WITNESSETH 
 WHEREAS, the Parties have been engaged in a dispute regarding their respective rights to practice certain items of intellectual property (the
“Dispute”); and 
 WHEREAS, the Parties have agreed to settle the Dispute; and 
 WHEREAS, in connection with the settlement of the Dispute ActivX desires to receive a license for the use of certain items of intellectual
property, and Phenomix is willing to grant such a license to ActivX. 
 NOW THEREFORE, in consideration of the mutual promises and
agreements set forth herein, the settlement of the Dispute, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Phenomix and ActivX intending to be legally bound, hereby agree as follows:

  

	1.	Definitions. 

 Capitalized terms used in this
Agreement and not otherwise defined herein shall have the meanings set forth below: 
 “Affiliate” means any person, natural
or otherwise, that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with a Party. For purposes of this definition, “control” means (a) the direct or indirect ownership
of more than fifty percent (50%) (or such maximum lesser percentage allowed to be owned by a foreign owner in a particular jurisdiction), of the outstanding voting securities of such entity, or (b) the ability to affect management
control or possessing decision making authority of such entity through whatever means. 
 “Agreement” means this License
Agreement, together with all exhibits annexed hereto, as the same shall be modified and in effect from time to time. 

 “Co-Exclusive” means with respect to a designated set of rights, a limitation upon the
number of parties legally entitled to practice such rights. For purposes of this Agreement, Co-Exclusive rights shall be shared, subject to the terms and conditions of this Agreement, only by ActivX, Phenomix, and their respective Affiliates and
permitted sublicensees. 
 “Confidential Information” means all information and data provided by the Parties to each other
hereunder in written or other tangible form and marked as confidential or, if disclosed orally or displayed, identified as confidential at or about the time of disclosure and confirmed in summary written form as confidential within thirty
(30) days after disclosure, except any portion thereof which: 
 (a) is known to the receiving Party, as evidenced by the
receiving Party’s written records, before receipt thereof under this Agreement or any other agreement between the Parties hereto providing for confidentiality; 
 (b) is disclosed to the receiving Party by a third person who is not under an obligation of confidentiality to the disclosing Party
hereunder with respect to such information and who otherwise has a right to make such disclosure; 
 (c) is or becomes
generally known in the trade through no fault of the receiving Party; 
 (d) is independently developed by the receiving
Party, without resort to the disclosing Party’s confidential information, by persons having no access thereto, as evidenced by the receiving Party’s written records; or 
 (e) is required to be disclosed by applicable statute, rule or regulation of any court or regulatory authority with competent
jurisdiction; provided that the Party whose information is to be disclosed shall be notified as soon as possible and the Party that is being required to disclose such information shall, if requested by the party whose information is to be disclosed,
use reasonable good faith efforts, at the expense of the requesting Party, to assist in seeking a protective order (or equivalent) with respect to such disclosure or otherwise take reasonable steps to avoid making such disclosure. 
 “Control” or “Controlled” shall mean the legal authority or right of a Party to grant a license or sublicense of
intellectual property rights to the other Party, without breaching the terms of any agreement with a third party, infringing upon the intellectual property rights of a third party, or misappropriating the proprietary or trade secret information of a
third party. 
 “Covered Products” means in a given country any item(s) covered by a Valid Claim that, but for the license
granted to ActivX under the Phenomix Licensed Patent Rights, such Valid Claim would be infringed by the manufacture, use or sale of such item(s) in such country. 

 “Improvements” means all improvements, variations, updates, modifications, and
enhancements made to or under the Phenomix Licensed Patent Rights during the term of the Agreement and Controlled by a Party, which are patentable, whether or not the subject of any patent application, which further are entirely supported by the
original specification and are entitled to the priority date of a patent application or a patent under Phenomix Licensed Patent Rights, and specifically excluding New Technology. 
 “Phenomix Licensed Patent Rights” means with respect to compounds within the Markush structures set forth on Exhibit A, the claims of
(i) any patent or patent application listed on Exhibit A (but specifically excluding claims to the extent related to compounds within the Markush structures set forth on Exhibit B and all other compound structures not set forth on Exhibit A),
(ii) any patents or patent applications which are entitled to claim priority from the patents or patent applications listed on Exhibit A, or (iii) any patents and patent applications which claim priority from one or more of the U.S.
provisional applications from which * * *claims priority, which are entitled to claim the priority of the patent applications listed on Exhibit A, but in each of the foregoing instances, specifically excluding any New Technology or Improvements. For
the avoidance of doubt, if a compound is encompassed by both Exhibit B and Exhibit A, then the compound shall be deemed an Exhibit B compound only, and is not within the Phenomix Licensed Patent Rights. 
 “New Technology” means any inventions or claims thereof Controlled by a Party, which constitute advancements, developments, or
improvements made after the Effective Date, whether or not patentable and whether or not the subject of any patent application, which are not entirely supported by the original specification, and are not entitled to the priority date, of a patent
application or patent contained within Phenomix Licensed Patent Rights. 
 “Term” means that this Agreement shall, subject
to the early termination provisions specifically provided for herein, have a term from the Effective Date until expiration of the last to expire Valid Claim licensed to ActivX pursuant to this Agreement. 
 “Territory” means worldwide. 
 “Valid Claim” means a claim present in any of the Phenomix Licensed Patent Rights which shall not have been withdrawn, canceled or disclaimed, nor held or admitted to be invalid, unenforceable or unpatentable by a court or
other appropriate body of competent jurisdiction in an unappealed or unappealable decision and which has not been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise. 
  

	2.	Licenses. 

 2.1 Grant. Subject to
terms and conditions of this Agreement including, but not limited to, the reservation of rights set forth below, Phenomix hereby grants to ActivX, a Co-Exclusive right and license under Phenomix Licensed Patent Rights to make, have made, use, offer
to sell, sell and import the Covered Products in the Territory. 

	* * *	Confidential Information, indicated by ***, has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 2.2 Sublicensing. ActivX shall not be entitled to sublicense the Phenomix Licensed Patent Rights
except (a) in connection with the bona fide assignment or grant of license rights under ActivX’s intellectual property rights, other than the Phenomix Licensed Patent Rights, to a collaborator or strategic partner receiving the right to
develop or commercialize one or more ActivX drug candidates or drug products, the making, using, or selling of which would infringe the Phenomix Licensed Patent Rights, or (b) as otherwise consented to by Phenomix in writing. To be effective,
sublicenses granted by a Party pursuant to clause (a) above shall be preceded by thirty (30) days’ advance written notice to the other Party. 
 2.3 Reservation of Rights. Phenomix reserves all rights in the Phenomix Licensed Patent Rights not expressly granted pursuant to Section 2.1 above and the right to authorize others to do the same.

 2.4 Improvements and New Technology. Phenomix hereby specifically disclaims any obligation to grant to ActivX, and ActivX hereby
specifically disclaims any obligation to grant to Phenomix rights relating to any Improvements or New Technology made by or for them, respectively, after the Effective Date. 
  

	3.	Other Obligations of ActivX and Phenomix. 

 3.1 Patent Applications and Foreign Filing. Phenomix shall have the sole discretion and right to file, prosecute and maintain in force any and all patents and patent applications included in the Phenomix Licensed Patent Rights
including related interference and opposition proceedings. The filing, prosecution and maintenance of patents and patent applications pursuant to this Section 3.1 shall be done through patent counsel selected by Phenomix. Phenomix will instruct
patent counsel to copy ActivX on all correspondence to and from patent offices where the Phenomix Licensed Patent Rights licensed to ActivX pursuant to this Agreement are filed, and keep ActivX reasonably informed of all significant patent matters
relating to such Phenomix Licensed Patent Rights, provided that Phenomix shall be entitled to exercise its sole discretion with respect to all matters relating to patents and patent applications. Phenomix shall give ActivX such opportunity to
comment on proposed responses to office actions as is reasonably practicable. If Phenomix intends not to pursue or to abandon pursuit or maintenance of a patent or patent application included in the Phenomix Licensed Patent Rights in one or more
jurisdictions, it shall so inform ActivX. ActivX shall thereafter be entitled to have Phenomix file, pursue or maintain such patent or patent application solely at the cost of ActivX. The Parties shall reasonably cooperate in effectuating the
preceding sentence. ActivX hereby acknowledges that Phenomix shall not be responsible for the results of such activities, but shall only be required to conduct such activities in good faith. ActivX shall pay Phenomix in advance for all filing,
translation and other anticipated out-of-pocket costs associated with the exercise of such right by ActivX. ActivX shall pay Phenomix within thirty (30) days of invoice for such other costs and expenses actually incurred. ActivX shall have the
right with respect to patents and patent applications in the jurisdictions where affected to transfer such activities to counsel of its choice following notice from Phenomix that it intends not to pursue or to abandon pursuit or maintenance of a
patent or patent application included in the Phenomix Licensed Patent Rights in one or more jurisdictions. 

 ActivX (i) will instruct patent counsel to copy Phenomix on all correspondence to and from patent
offices where the Phenomix Licensed Patent Rights licensed to ActivX pursuant to this Agreement are being handled by ActivX counsel and (ii) will keep Phenomix reasonably informed of all significant patent matters relating to such Phenomix
Licensed Patent Rights. Neither ActivX nor ActivX patent counsel on behalf of ActivX shall disparage any pending or issued claims of any Phenomix patent not licensed to ActivX pursuant to this Agreement. Phenomix and ActivX shall regularly meet and
confer with regard to proposed responses to be made by ActivX to actions of the various patent offices and with regard to strategies to be employed in the pursuit of Phenomix Licensed Patent Rights being pursued or enforced by Phenomix. Due regard
shall be given to the strategies employed or to be employed by Phenomix relating to pursuit and maintenance of patent applications and patents not licensed to ActivX pursuant to this Agreement. 
 All information provided by Phenomix to ActivX pursuant to this Section 3.1, as well as pending patent applications shall be deemed to be
Confidential Information of Phenomix. Phenomix Licensed Patent Rights are pending in Australia, Canada, The People’s Republic of China, EPO, Japan, New Zealand, and South Korea, and will be filed in the United States. 
 3.2 Public Statements. The Parties agree that neither of them shall make any public statement regarding this Agreement, its terms or the other
Party hereto, without the express advance written consent of such other Party. Notwithstanding the foregoing, any public statements required by law to be made, including submissions to the Securities and Exchange Commission or stock exchange or
market system on which its securities are listed, shall be submitted to the referenced Party for review and approval, which approval shall not be unreasonably withheld or delayed. 
  

	4.	Representations and Covenants. 

 4.1
Representations and Warranties. Phenomix and ActivX each represent and warrant to the other with respect to itself that: 
 (a) Organization & Power. It is a corporation duly organized and validly existing under the laws of its state of incorporation and has all requisite corporate power and authority to enter into this Agreement; 
 (b) Authorization. It is duly authorized by all requisite action to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby, and that the same do not conflict or cause a default with respect to its obligations under any other agreement; 
 (c) Execution & Delivery. It has duly executed and delivered this Agreement, and 
 (d) Laws, Rules & Regulations. It shall and it shall cause its Affiliates to, comply with all laws, rules and regulations applicable to the performance of its obligations hereunder, including, to the extent applicable to
such Party, the discovery, development, manufacture, distribution, import, export and sale of the Covered Product(s). 

 4.2 Disclaimer. 
 PHENOMIX HEREBY SPECIFICALLY AND EXPRESSLY DISCLAIMS THE MAKING OR APPLICABILITY OF ANY WARRANTY, WHETHER EXPRESS OR IMPLIED, REGARDING THE VALIDITY OF THE PHENOMIX LICENSED PATENT RIGHTS AND MAKES NO REPRESENTATIONS
WHATSOEVER WITH REGARD TO THE SCOPE OF THE PHENOMIX LICENSED PATENT RIGHTS OR THAT THE PHENOMIX LICENSED PATENT RIGHTS MAY BE EXPLOITED BY ACTIVX AND ITS AFFILIATES WITHOUT INFRINGING OTHER PATENTS. PHENOMIX EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED
OR EXPRESS WARRANTIES AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE PHENOMIX LICENSED PATENT RIGHTS. IN NO EVENT SHALL A PARTY BE LIABLE TO THE OTHER FOR INDIRECT, PUNITIVE, SPECIAL,
CONSEQUENTIAL OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING LOSS OF PROFITS AND LOSS OR INTERRUPTION OF BUSINESS, PROVIDED HOWEVER THAT THE FOREGOING PROVISION SHALL NOT BE CONSTRUED TO LIMIT A PARTY’S INDEMNIFICATION OBLIGATION UNDER THIS
LICENSE AGREEMENT FOR THIRD PARTY CLAIMS WHICH MAY INCLUDE INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY AND OTHER TYPES OF DAMAGES. 
  

	5.	Infringement, Indemnity and Insurance 

 5.1
Definitions. The following definitions shall be used only for the purposes of this Article 5.0: 
 (a)
“Action” means any legal action or proceeding, or the filing of any counterclaim. 
 (b) “Infringing
Product” means a third party product that may infringe the Phenomix Licensed Patent Rights and that has regulatory approval for administration to humans. 
 5.2 Notification. With respect to any Phenomix Licensed Patent Rights, each Party shall notify the other Party in writing of any alleged or threatened infringement of which it becomes aware, and shall provide
to the other Party available evidence thereof. The Parties shall consult with respect to potential strategies for terminating such alleged or threatened infringement without litigation. 
 5.3 Defense of Declaratory Judgment Action. Phenomix shall be solely responsible for defending any assertion of invalidity or unenforceability of
Phenomix Licensed Patent Rights worldwide. 

 5.4 Enforcement of Phenomix Licensed Patent Rights. 
 (a) Non-Litigation Actions by Phenomix. Phenomix shall have the sole right, in its sole discretion, to take actions to terminate
alleged infringement identified pursuant to Section 5.2 without litigation (including the sole right to grant a license to the alleged infringer) with respect to Phenomix Licensed Patent Rights. 
 (b) Phenomix Licensed Patent Rights. Phenomix shall have the sole right, in its sole discretion, but not the obligation, to
commence and control any Action against any alleged infringement of the Phenomix Licensed Patent Rights identified pursuant to Section 5.2, at its own expense. Any damages or other recovery from an Action shall be subject to the provisions of
Section 5.5. If Phenomix, in its sole discretion, elects to not take any Action against any alleged infringement of the Phenomix Licensed Patent Rights, ActivX shall have no right to do so. 
 5.5 Recoveries. In any Action pursuant to Section 5.4, any damages or other recovery, including compensatory and other non-compensatory
damages or recovery actually received from a third party, shall be allocated first to reimburse the costs and expenses, including reasonable attorney’s fees and expert witness fees, of Phenomix commencing such Action and then to reimburse the
other Party, if any, for such costs and expenses. Such reimbursement shall be made first from any compensatory damages, including attorney’s fees and costs recovered. If any balance remains of the damages or other recovery made from the third
party after such reimbursement, any remaining compensatory damages that are attributable to lost sales of Covered Products (as defined in the Settlement Agreement) by Phenomix shall be considered Net Sales (as defined in the Settlement Agreement)
and subject to Royalties (as defined in the Settlement Agreement) pursuant to Settlement Agreement. Any remaining balance of damages or other recovery shall be apportioned as follows: 
 (a) when the Action only concerns the Phenomix Licensed Patent Rights licensed to ActivX, Phenomix and ActivX shall share equally the
remaining balance of damages or other recovery, or 
 (b) when the action concerns the Phenomix Licensed Patent Rights
licensed to ActivX and other licenses or sublicenses, the remaining balance of damages or other recovery will be apportioned by Phenomix acting reasonably, between ActivX, Phenomix and other sublicensees, with notice of such apportionment to be
given to ActivX together with the basis upon which the apportionment determination was made, subject to the right of ActivX to review the determination and submit the determination for dispute resolution pursuant to Article 7.0. 
 5.6 Indemnification. 
 (a) ActivX Indemnity. ActivX and each of its Affiliates shall indemnify and hold Phenomix, its Affiliates, and their respective current and former officers, inventors, directors, employees, students, governing board members,
trustees, faculty, medical and professional staff, consultants, contractors and agents, and their respective successors, heirs and assigns, (“Phenomix Indemnitees”) harmless from and against any and all liability, damage, loss, 

 
cost (including reasonable attorneys’ fees and expenses of litigation) and expense incurred, (a “Loss”) resulting from or imposed upon the
Phenomix Indemnitees or any of them by any third party in connection with any claims, suits, actions, demands or judgments, including claims for bodily injury or property damage (but excluding any and all such matters pertaining to patent
infringement), (i) relating to the use of the Phenomix Licensed Patent Rights and/or the development, manufacture, use, distribution or sale of any Covered Product by ActivX or its Affiliates, or their respective employees, consultants,
contractors and agents or (ii) due to the negligence or willful misconduct of ActivX, its Affiliates or their respective employees, consultants, contractors and agents; provided, however, that the foregoing indemnity shall not apply to any Loss
to the extent that such Loss was caused by the negligent or willful misconduct of Phenomix or its Affiliates. 
 (b)
Phenomix Indemnity. Phenomix shall indemnify and hold ActivX and its Affiliates, and their respective officers, directors, employees, consultants, contractors and agents, and their respective successors, heirs and assigns, (“ActivX
Indemnitees”) harmless from and against any and all liability, damage, loss, cost (including reasonable attorneys’ fees and expenses of litigation) and expense incurred (a “Loss”), resulting from or imposed upon the ActivX
Indemnitees or any of them by any third party in connection with any claims, suits, actions, demands or judgments, including any claim of bodily injury or property damage (but excluding any and all such matters pertaining to patent infringement),
(i) relating to the development, manufacture, use, distribution or sale of any product by Phenomix or its licensees or sublicensees (other than ActivX and its Affiliates) or (ii) due to the negligence or willful misconduct of Phenomix, its
Affiliates or their respective employees, consultants, contractors and agents; provided, however, that the foregoing indemnity shall not apply to any Loss to the extent that such Loss was caused by the negligent or willful misconduct of ActivX or
its Affiliates. 
 (c) Claims Procedures. A Party entitled to be indemnified by the other Party (an “Indemnified
Party”) pursuant to Section 5.6(a) or (b) hereof shall give written notice to the other Party (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any threatened or asserted claim as to
which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting there from, provided: 
 (i) that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting there from, shall be
approved by the Indemnified Party (which approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such Indemnified Party’s expense (unless (i) the employment of counsel by such Indemnified
Party has been authorized by the Indemnifying Party; or (ii) the Indemnified Party shall have reasonably concluded that there may be a conflict of interest between the Indemnifying Party and the Indemnified Party in the defense of such action,
in each of which cases the Indemnifying Party shall pay the reasonable fees and expenses of one law firm serving as counsel for the Indemnified Party, which law firm shall be subject to approval, not to be unreasonably withheld, by the Indemnifying
Party); 

 (ii) the failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Agreement to the extent that such failure to give notice did not result in prejudice to the Indemnifying Party or the Indemnifying Party’s insurer; 
 (iii) the Indemnifying Party, in the defense of any such claim or litigation, shall not, except with the approval of the Indemnified Party
(which approval shall not be unreasonably withheld), consent to entry of any judgment or enter into any settlement which, (i) would result in injunctive or other relief being imposed against the Indemnified Party; or (ii) does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation; and 
 (iv) the Indemnified Party shall furnish such information regarding itself or the claim in question as the Indemnifying Party may
reasonably request in writing, and shall be reasonably required in connection with the defense of such claim or litigation resulting there from. 
 5.7 Compliance. The Parties shall comply fully with all applicable laws and regulations in connection with their respective activities under this Agreement. 
 5.8 Insurance. 
 (a)
Coverage. ActivX shall, at all times during the term of this Agreement and until five (5) years after expiration of the last batch of Covered Products sold or manufactured hereunder by ActivX or its Affiliates, obtain and maintain at its
own cost and expense, comprehensive commercial liability insurance, including, but not limited to, product liability and contractual liability insurance, and errors and omissions coverage, with respect to its activities hereunder. Such insurance
shall be in such amounts subject to such deductibles as the Parties may agree based upon standards prevailing in the industry at the time, but under no circumstances shall be less than: (i) * * * dollars ($* * *) per occurrence for damage,
injury and/or death to persons prior to regulatory authority approval of an Covered Product; (ii) * * * dollars ($* * *) per occurrence damage, injury and/or death to persons after regulatory authority approval of an Covered Product; and * * *
dollars ($* * *) per occurrence for damage/or injury to property. Such insurance shall be written to cover, among other things, claims incurred, discovered, manifested, or made in connection with clinical development and commercial sale of Covered
Products in the Territory. Upon the written request of Phenomix, ActivX shall provide to Phenomix copies of its Certificates of Insurance. 
 (b) Additional Requirements. All of the liability policies set out in (a) shall be primary and non-contributory, shall include as additional named insured Phenomix and such other persons as the Phenomix
may determine in its discretion (subject to wording in such policies restricting coverage to those claims for which the ActivX may be responsible hereunder and contain a waiver of subrogation in favor of Phenomix or Phenomix’s designee. Each
policy will be endorsed to provide that the insurers will give Phenomix, or its designee, not less than 
  

	* * *	Confidential Information, indicated by ***, has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 thirty (30) days prior written notice of any cancellation or material change in coverage. If ActivX
fails to place or maintain insurance as required under this Agreement, Phenomix or its designee may place and maintain such policy and all premium and other costs incurred by Phenomix or its designee will be paid by the ActivX to the other Phenomix
or its designee on demand or failing payment may be deducted by Phenomix or its designee from any amount then or thereafter due to the ActivX under this Agreement. 
  

	6.	Termination. 

 6.1 Early Termination of
Licenses. Notwithstanding the foregoing, and subject to the limitations set forth below, Phenomix shall be entitled in the following circumstances to terminate this Agreement: 
 (a) Material Breach. If ActivX materially breaches this Agreement, Phenomix shall have the right, at its sole election, to
terminate this Agreement upon thirty (30) days prior written notice to ActivX; provided, however, that if ActivX shall cure the breach or default within the thirty (30) day period, all such licenses and agreements shall continue in full
force and effect. 
 (b) Insolvency, Bankruptcy. If ActivX shall file a petition in bankruptcy or if an involuntary
petition shall be filed against it and such petition shall not be dismissed within sixty (60) days, or if it shall become insolvent or admit its inability to pay its debts when due, or if a receiver or guardian shall be appointed for it, then
all licenses granted to such party under this Agreement shall immediately terminate. 
 (c) Challenge of Phenomix Licensed
Patent Rights. During the Term, should ActivX or any of its Affiliates challenge the validity of any Phenomix Licensed Patent Rights, or support, directly or indirectly, any such challenge to any Phenomix Licensed Patent Rights, Phenomix shall
be entitled to terminate this Agreement upon thirty (30) days prior written notice to ActivX. 
 (d) Breach of
Settlement Agreement. If ActivX materially breaches that certain Settlement Agreement of even date herewith entered into by and among Phenomix, ActivX, David Campbell, David Winn, and Juan Betancort, Phenomix shall have the right, at its sole
election, to terminate this Agreement upon thirty (30) days prior written notice to ActivX; provided, however, that if ActivX shall cure such breach or default within the thirty (30) day period, this Agreement shall continue in full force
and effect. 
 6.2 Accrued Obligations. Upon termination of the ActivX license granted under this Agreement for any reason, each of
Phenomix and ActivX shall remain liable for those obligations that accrued with respect to such license prior to the effective date of the termination. ActivX may, for a period of no longer than six (6) months after the effective date of the
termination of the ActivX License, complete and sell any or all Covered Products that it can demonstrate were in the process of manufacture or in inventory on the effective date of the termination. 

	7.	Dispute Resolution 

 7.1 Negotiation of
Parties. In the event of any dispute with respect to the interpretation of any provision of this Agreement or with respect to the performance of either party under this Agreement, either party may at any time provide the other party written
notice specifying the terms of such disagreement in reasonable detail. As soon as practicable after receipt of such notice, the Chief Executive Officers of both Phenomix and ActivX shall meet at a mutually agreed upon time and location for the
purpose of resolving such disagreement. They shall engage in good faith discussions and/or negotiations for a period of up to thirty (30) days to resolve the disagreement or negotiate an interpretation or revision of the applicable portion of
this Agreement which is mutually agreeable to both parties, without the necessity of formal procedures relating thereto. During the course of such discussion and/or negotiation, the parties shall reasonably cooperate and provide information that is
not materially confidential in order so that each of the parties may be fully informed with respect to the issues in dispute. 
 7.2
Further Procedures. If implementation of the procedures set forth in Section 7.1 do not result in resolution of a dispute, each party shall have the right to refer the dispute first to mediation before a retired judge at JAMS or the
Honorable Gerald J. Lewis. If such mediation is unsuccessful, such dispute shall be submitted to arbitration before JAMS using the AAA Commercial Arbitration Rules. Each party shall submit a list of three (3) potential arbitrators and shall
meet and confer in good faith to select such arbitrator. If the parties are unable to agree upon an arbitrator, JAMS shall select the arbitrator from the lists provided by the respective parties. The arbitrator shall have the power to grant
injunctive and other provisional or equitable relief, including preliminary orders and reasonable discovery orders. The parties hereby knowingly waive their respective rights to file an action in any court and knowingly waive their rights to a jury
trial. For the avoidance of doubt, the Parties specifically agree that this provision does not apply to any allegations of patent infringement or to the breach or threatened breach of the confidentiality provisions of this Agreement. 
  

	8.	General Provisions 

 8.1 Remedies. The
parties acknowledge and agree that, in the event of a breach or a threatened breach by either Party of the confidentiality provisions of this Agreement or other provisions for which it will have no adequate remedy at law, the other party may suffer
irreparable damage and, accordingly, shall be entitled to injunctive and other equitable remedies to prevent or restrain such breach or threatened breach, without the necessity of posting any bond or surety, in addition to any other remedy they
might have at law or at equity. 
 8.2 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of
California in force therein without regard to its conflict of law rules. Subject to Sections 7.1 and 7.2, all parties agree that by executing this Agreement they consent to the exclusive jurisdiction of the courts of California. 
 8.3 Confidentiality. It is contemplated that in the course of the performance of this Agreement each Party may, from time to time, disclose
Confidential Information to the other. Each Party agrees that for the Term and for a period of five (5) years thereafter, the receiving 

 
Party shall keep confidential and shall not publish or otherwise disclose, and will take all reasonable steps to prevent disclosure of, such Confidential
Information and will not use any Confidential Information except for the limited purposes set forth in this Agreement; provided, however, that no provision of this Agreement shall be construed to preclude such disclosure of
Confidential Information as may be necessary or appropriate (i) to obtain from any governmental agency any necessary approval or (ii) to obtain patents that are selection inventions that are based on the Phenomix Licensed Patent Rights
provided, further, however, that the Party whose information is to be disclosed shall be notified as soon as possible and the Party that is being required to disclose such information shall, if requested by the Party whose information is to be
disclosed, use reasonable good faith efforts, at the expense of the requesting Party, to assist in seeking a protective order (or equivalent) with respect to such disclosure or otherwise avoid making such disclosure. 
 8.4 Amendment and Waiver No provision of or right under this Agreement shall be deemed to have been waived by any act or acquiescence on the part
of any party, its agents or employees, but only by an instrument in writing signed by an authorized officer of such party. No waiver by either party of any breach of this Agreement by any other party shall be effective as to any other breach,
whether of the same or any other term or condition and whether occurring before or after the date of such waiver. 
 8.5 Intellectual
Property 
 (a) Trademarks. All respective names, trademarks, trade names, labels, or other designations used shall
are, and the same shall remain, the property of their respective owners. 
 (b) Patents. ActivX agrees to mark the
Covered Products or their packaging sold in the United States with all applicable U.S. patent numbers and similarly to indicate “Patent Pending” status. All Covered Products manufactured in, shipped to, or sold in other countries shall be
marked in such a manner as to protect and preserve the Patent Rights in such countries. 
 8.6 Independent Contractors. Each party
represents that it is acting on its own behalf as an independent contractor and is not acting as an agent for or on behalf of any third party. This Agreement and the relations hereby established by and among Phenomix, ActivX do not constitute a
partnership, joint venture, agency or contract of employment between them. 
 8.7 Assignment. Without limitation to the rights set
forth in Section 2.2, this Agreement and ActivX’s rights and obligations hereunder may not be sold, assigned or transferred to any third party without the consent of Phenomix. This requirement also applies to any change of control of
ActivX, it being acknowledged that unless the consent of Phenomix is received prior to the change of control, this Agreement may be terminated by Phenomix. 
 8.8 Successors and Assigns. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

 8.9 Notices All communications hereunder shall be in writing and shall be deemed to have been duly
given upon receipt by the addressee at the addresses set forth below, or such other address as either party may specify by notice sent in accordance with this section: 
  

	 	If to ActivX:	ActivX Biosciences, Inc. 

	 	    	11025 North Torrey Pines Road 

	 	    	Suite 120 

	 	    	La Jolla, California 92037 

	 	    	Attention: John W. Kozarich, Ph.D. 

  

	 	With a copy to:	Pillsbury Winthrop Shaw Pittman LLP 

	 	    	101 West Broadway, Suite 1800 

	 	    	San Diego, California 92101 

	 	    	Attention: George S. Howard, Esq. 

  

	 	If to Phenomix:	Phenomix Corporation 

	 	    	5871 Oberlin Drive 

	 	    	Suite 200 

	 	    	San Diego, California 92121 

	 	    	Attention: Laura K. Shawver, Ph.D. 

  

	 	With a copy to:	Heller Ehrman LLP 

	 	    	4350 La Jolla Village Drive 

	 	     
	 7th Floor

	 	    	San Diego, California 92122 

	 	    	Attention: Richard A. Kaufman, Esq. 

 8.10
Severability. In the event any provision of this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other term or provision
hereof. The parties agree that they will negotiate in good faith or will permit a court or arbitrator to replace any provision hereof so held invalid, illegal or unenforceable with a valid provision which is as similar as possible in substance to
the invalid, illegal or unenforceable provision. 
 8.11 Conflict or Inconsistency In the event of any conflict or inconsistency
between the terms and conditions hereof and any terms or conditions set forth in any document relating to the transactions contemplated by this Agreement, the terms and conditions set forth in this Agreement shall prevail. 
 8.12 Captions. Captions of the Sections and subsections of this Agreement are for reference purposes only and do not constitute terms or
conditions of this Agreement and shall not limit or affect the terms and conditions hereof, 
 8.13 Word Meanings. Words such as
herein, hereinafter, hereof and hereunder refer to this Agreement as a whole and not merely to a Section or paragraph in which such words appear, unless the context otherwise requires. The singular shall include the plural, and
each masculine, feminine and neuter reference shall include and refer also to the others, unless the context otherwise requires. 

 8.14 Entire Agreement This Agreement and the Settlement Agreement contain the entire understanding
of each of the parties hereto with respect to the transactions and matters contemplated hereby, including without limitation any licensing of the Phenomix Licensed Patent Rights, supersedes all prior agreements and understandings relating to the
subject matter hereof, and no representations, inducements, promises or agreements, whether oral or otherwise, between such parties not contained herein or incorporated herein by reference shall be of any force or affect. 
 8.15 Cooperation. The Parties hereby agree to cooperate reasonably in all regards to effectuate the provisions of this Agreement. 
 8.16 Rules of Construction. The parties agree that they have participated equally in the formation of this Agreement and that the language and
terms of this Agreement shall not be presumptively construed against any of them. 
 8.17 Counterparts. This Agreement may be executed
in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In making proof of this Agreement, it shall not be necessary to produce or account for more than one such
counterpart. 
 8.18 Survival. Sections 4.2, 5.6, and 5.8 and Articles 7 and 8 shall survive the expiration or early termination of
this Agreement. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their respective duly
authorized officers. 
  

			
	PHENOMIX CORPORATION
		
	By:	 	/s/ Laura Shawver
	Name:	 	Laura Shawver
	Title:	 	President and CEO

  

			
	ACTIVX BIOSCIENCES, INC.
		
	By:	 	/s/ John W. Kozarich
	Name:	 	John W. Kozarich
	Title:	 	Chairman and President

 EXHIBIT A 
 Licensed Patent Rights 
 * * * 
  

	* * *	Confidential Information, indicated by ***, has been omitted from this filing and filed separately with the Securities and Exchange Commission. A total of eight pages have been
redacted in Exhibit A. 

 EXHIBIT B 
 * * * 
  

	* * *	Confidential Information, indicated by ***, has been omitted from this filing and filed separately with the Securities and Exchange Commission. A total of eight pages have been
redacted in Exhibit B.Executive Employment Agreement

 Exhibit 10.1 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (this “Agreement”) is
effective as of May 13, 2008 and is between Argo Group International Holdings, Ltd., a Bermuda company (the “Company”), and Jay Bullock (the “Employee”). 
 RECITALS: 
 The Company desires to obtain the services of the Employee in the business
of the Company as its Executive Vice President and Chief Financial Officer. 
 The Employee desires to provide such services as an employee
of the Company. 
 NOW, THEREFORE, in consideration of the promises and mutual agreements herein set forth, the parties hereby agree as
follows: 
  

	1.	Employment Period. The period of employment of Employee by the Company under this Agreement (the “Employment Period”) shall terminate on May 13, 2011. The Employment
Period may be sooner terminated in accordance with Section 7 of this Agreement. 

  

	2.	Duties. During his employment by the Company, the Employee shall perform such duties as shall from time to time be delegated or assigned to him by the Company. Employee agrees to
serve the Company in the position of Executive Vice President and Chief Financial Officer, reporting to the Company’s President and Chief Executive Officer, and to perform diligently and to the best of his abilities the duties and services
pertaining to such office. Employee’s employment shall also be subject to the policies maintained and established by the Company, if any, as the same may be amended from time to time. Employee’s principal place of business with the Company
will be in Bermuda. Employee acknowledges and agrees that Employee owes a fiduciary duty of loyalty, fidelity and allegiance to act at all times in the best interests of the Company and to do no act that would injure the business, interests, or
reputation of the Company or any of its Affiliates (as defined in Section 10(b)(iii)). In keeping with these duties, Employee shall make full disclosure to the Company’s President and Chief Executive Officer of all business opportunities
pertaining to the business of the Company or its Affiliates and should not appropriate for Employee’s own benefit, business opportunities that fall within the scope of the businesses conducted by the Company and its Affiliates.

  

	3.	Compensation. 

  

	 	(a)	Base Salary. The Company shall pay to Employee an initial base annual salary of U.S. $450,000 (the “Base Salary”), effective as of May 5, 2008, less all applicable
legal deductions and/or withholding. The Base Salary shall be payable in accordance with the Company’s policies in effect from time to time, but in any event no less frequently than monthly. The Base Salary shall be reviewed annually by the
Company for possible increase (but not decrease) and the Company may, in its sole discretion, choose to increase the Base Salary during the Employment Period of this Agreement. If the Base Salary is increased by the Company, such Base Salary then
constitutes the Base Salary for all purposes of this Agreement. 

  

 1 

	 	(b)	Profit Sharing/Equity Compensation. In addition to the Base Salary, during the Employment Period of this Agreement, Employee may, in the sole discretion of the Company from time to
time, be awarded a profit sharing award and/or equity compensation award based upon the achievement of specific Company objectives as determined by the Company with the collaboration of Employee and set forth in one or more separate written plans
(collectively, the “Bonus Plan”). Employee shall be entitled to participate in the Company’s equity compensation plans in a manner commensurate with senior officers of equal rank. 

  

	 	 (c)
	 As additional compensation for the Employee, effective as of May 5th, 2008, the Company shall provide or maintain for Employee medical, welfare and health insurance benefits on the same terms and conditions as are made available to all employees of
the Company generally. 

  

	4.	Vacation. Employee shall be entitled to a reasonable vacation(s) during each year of his employment under this Agreement. 

  

	5.	Reimbursement For Expenses; Working Space. The Company shall reimburse the Employee within 30 days of the submission of appropriate documentation, and in no event later than the
last day of the calendar year following the year in which an expense was incurred, for all reasonable and necessary travel expenses and other disbursements incurred by him for or on behalf of the Company in the course and scope of his employment
under this Agreement. Such reimbursements shall include up to $25,000 per year as a family travel allowance. The Company shall furnish Employee with offices, supplies, equipment and such other facilities and services as are suitable for performance
of Employee’s duties hereunder. 

  

	6.	Remedies for Breach. In addition to the rights and remedies provided in Section 7, and without waiving the same if Employee breaches, or threatens to breach, any of the
provisions of Section 9, the Company shall have the following rights and remedies, in addition to any others, each of which shall be independent of the other and severally enforceable: 

  

	 	(a)	The right and remedy to have such provisions specifically enforced by any court having equity jurisdiction. Employee specifically acknowledges and agrees that any breach or
threatened breach of the provisions of Section 9 hereof will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company. Such injunction shall be available without the posting of any bond
or other security. If the Employee is determined to have breached any provision of Section 9 the court or arbitrators shall extend the effect of the non-competition provisions for an amount of time equal to the time the Employee was in breach
thereof. 

  

 2 

	 	(b)	The right to require Employee to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits (hereinafter collectively the
“Benefits”) derived or received by the Employee as a result of any transactions constituting a breach of any of the provisions of Section 9. 

  

	 	(c)	Upon discovery of a breach or threatened breach of Section 9, the right to immediately suspend payments to Employee under Section 3 or 8(b) pending a resolution of the
dispute. 

  

	 	(d)	The right to terminate Employee’s employment pursuant to Section 7. 

  

	7.	Termination of Agreement. 

  

	 	(a)	Death. This Agreement shall automatically terminate upon the death of Employee. 

  

	 	(b)	Disability. If, as a result of Employee’s incapacity due to physical or mental illness, Employee shall have been substantially unable, either with or without reasonable
accommodation, to perform his duties hereunder for an entire period of six (6) consecutive months, and within thirty (30) days after written notice of termination is given after such six (6) month period, Employee shall not have
returned to the substantial performance of his duties on a full-time basis, the Company shall have the right to terminate Employee’s employment hereunder for Disability, and such termination in and of itself shall not be, nor shall it be deemed
to be, a breach of this Agreement. Any dispute between the Employee and the Company regarding whether Employee has a Disability shall be determined in writing by a qualified independent physician mutually acceptable to the Employee and the Company.
If the Employee and the Company cannot agree as to a qualified independent physician, each shall appoint a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in
writing to the Company and Employee shall be final and conclusive for all purposes of the Agreement. Employee acknowledges and agrees that a request by the Company for such a determination shall not be considered as evidence that the Company
regarded the Employee as having a Disability. 

  

	 	(c)	Termination By Company For Cause. The Company may terminate this Agreement upon written notice to Employee at any time for “Cause” in accordance with the procedures
provided below. 

  

	 	(d)	For purposes of this Agreement, “Cause” shall mean: 

  

	 	(i)	other than as a result of the Employee having a Disability, the willful and continued failure by the Employee to substantially perform his duties with the Company within a
reasonable period of time after a written demand for substantial performance is delivered to the Employee by the Company, which demand shall specifically identify the manner in which the Company believes that the Employee has not substantially
performed his duties. 

  

 3 

	 	(ii)	the entry of a plea of guilty or judgment entered after trial finding Employee guilty of a crime punishable by death or imprisonment in excess of one year involving moral turpitude
(meaning a crime that includes the commission of an act of gross dishonesty or bad morals); 

  

	 	(iii)	willfully engaging by Employee in conduct that the Employee knows or reasonably should know is detrimental to the reputation, character or standing or otherwise injurious to the
Company or any of its shareholders, direct or indirect subsidiaries and Affiliates, monetarily or otherwise; 

  

	 	(iv)	without limiting the generality of Section 7(d)(i), the breach or threatened breach of any of the provisions of Section 9; or 

  

	 	(v)	a final ruling (or interim ruling that has not been stayed by appeal) in any state or federal court or by an arbitration panel that the Employee has breached the provisions of a
non-compete or non-disclosure agreement, or any similar agreement or understanding, which would in any material way limit the Employee’s ability to perform under this Agreement now or in the future. 

  

	 	(e)	Termination By Company Without Cause. The Company may terminate this Agreement at any time, and for any reason, by providing at least thirty (30) days written notice to
Employee. 

  

	 	(f)	Termination By Employee With Good Reason. Employee may terminate his employment with good reason anytime after Employee has actual knowledge of the occurrence, without the written
consent of Employee, of one of the following events (each event being referred to herein as “Good Reason”): 

  

	 	(i)	(A) any change in the duties or responsibilities (including reporting responsibilities) of Employee that is inconsistent in any material adverse respect with Employee’s
position(s), duties, responsibilities or status with the Company immediately prior to such change (including any diminution of such duties or responsibilities) or (B) a materially adverse change in Employee’s titles or offices with the
Company; 

  

	 	(ii)	a reduction in Employee’s Base Salary or Bonus Plan eligibility; 

  

	 	(iii)	the relocation of the Company’s principal executive offices from Bermuda; 

  

	 	(iv)	the failure of the Company to provide Employee eligibility to participate in any material employee benefit plan, compensation plan, welfare benefit plan or fringe benefit of the
Company in which all other Company executives of equal rank with Employee are eligible to participate; 

  

 4 

	 	(v)	the Company’s failure to provide in all material respects the indemnification set forth in the Company’s Articles of Incorporation, By-Laws, or in any other written
agreement between Employee and Company; 

  

	 	(vi)	a Change in Control of the Company but only if at any time thereafter, Employee ceases to be a direct report of Mark E. Watson III; 

  

	 	(vii)	the failure of the Company to obtain an assumption agreement from any successor obtaining control of the Company as a result of a Change of Control under Section 11 (a);

  

	 	(viii)	any other breach of a material provision of this Agreement by the Company. 

 For purposes of clauses (iii) through (iv) and (viii) above, an isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company within ten (10) days after
receipt of notice thereof given by Employee shall not constitute Good Reason. 
  

	8.	Effect of Termination. Upon the termination of this Agreement, no rights of Employee which shall have accrued prior to the date of such termination, including the right to receive
bonus Fully-Earned (as herein defined) through the date of such termination, shall be affected in any way. 

  

	 	(a)	Upon Death of Employee. 

 During the Employment Period, if
Employee’s employment is terminated due to his death, Employee’s estate shall be entitled to receive (i) the Base Salary set forth in Section 3 accrued through the date of death, (ii) any bonus Fully-Earned through the date
of death, and (iii) a lump sum payment in cash and/or common stock, as the Company elects, equal to the net value of all unvested equity compensation as of the date of death as if fully vested and exercised on the date of death; provided,
however, Employee’s estate shall not be entitled to any other benefits (except as provided by law or separate agreement). “Fully-Earned” shall mean that for purposes of determining whether the Employee shall be entitled to a bonus,
that such Employee shall be treated as if he had been employed through the last date of the regular period for determining whether or not a bonus is payable in the standard manner that all such employees are evaluated even though Employee is no
longer employed by the Company, and his eligibility for an incentive bonus, if any, shall be determined with the presumption that Employee’s personal target percentage was achieved, that at least 100% of the applicable bonus pool was available,
and that the amount of his incentive bonus will in any event not be less than the amount of any incentive bonus he received the prior year. Further, a surviving spouse of Employee shall be eligible for continuation of family benefits pursuant to
Section 3(c) subject to compliance with plan provisions at the active employee rate for a one year period after the date of Employee’s death. 
  

 5 

	 	(b)	For Disability; By Company Without Cause; By Employee with Good Reason. 

 If this Agreement is terminated under Sections 7 (b), (e) or (f), and as consideration for Employee’s continuing obligations under Section 9 hereof: 
  

	 	(i)	Employee shall be entitled to receive his Base Salary set forth in Section 3 accrued through the date of such termination and 

  

	 	(ii)	The Company shall pay Employee on the six month anniversary of the date of such termination an amount equal to his Base Salary; provided, that if the date of such termination
is after the date of the occurrence of a Change of Control, the Company shall pay Employee on the six month anniversary of the date of such termination an alternative amount equal to two times his Base Salary. Further, Employee shall be eligible for
continuation of benefits pursuant to Section 3(c) subject to compliance with Plan provisions at the active employee rate until Employee obtains reasonably equivalent employment or, if earlier, for one (1) year from the date of termination
(or two (2) years from the date of termination if a Change of Control occurred prior thereto). It shall be a condition precedent of payment to Employee of such payment and continued benefits pursuant to this Section 8(b) that Employee
execute a full and complete release of the Company, each of its subsidiaries, Affiliates and their respective past, present and future partners, officers, directors, employees, consultants, attorneys, agents and shareholders, in form and substance
reasonably acceptable to the Company, of any claims Employee may have against any of them, to the extent such claims arise from Employee’s employment hereunder, and any revocation period with respect to such release have expired, prior to the
six month anniversary of the date of such termination, and 

  

	 	(iii)	Except as provided for in this Section 8(b), Employee shall not have any rights which have not previously accrued upon termination of this Agreement. 

 

	 	(c)	By Company With Cause 

 In the event of termination of
Employee’s employment Section 7(c) Employee shall be entitled to receive the Base Salary and benefits set forth in Section 3 accrued through the date of termination, and he shall not be entitled to any other benefits (except as
required by law). 
  

	 	(d)	Other Termination Provisions. Employee shall in all cases remain bound by the prohibitions contained in Section 9 hereof. 

  

 6 

	 	(e)	Gross-Up Payment. 

  

	 	(i)	Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment,
award, benefit or distribution) by the Company, or any successor, to or for the benefit of Employee (the “Payments”) would be subject to the excise tax imposed by Section 4999 or Section 409(A) of the US Internal Revenue Code of
1986, as amended from time to time (the “Code”) (the “Excise Tax”), then the Company shall pay to Employee within 30 days of such determination an additional payment (a “Gross-Up Payment”) in an amount such that after
payment by Employee of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, Employee retains an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the products of any
deductions disallowed because of the inclusion of the Gross-Up Payment in Employee’s adjusted gross income and the highest applicable marginal rate of federal income taxation for the calendar year in which the Gross-Up Payment is to be made.
For purposes of determining the amount of the Gross-Up Payment, Employee shall be deemed to (A) pay federal income taxes at the highest marginal rates of federal income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-Up Payment is to be made, and (B) have otherwise allowable deductions for federal income tax purposes at least equal to those which could be disallowed because of the inclusion of the Gross-Up Payment in Employee’s adjusted
gross income. 

  

	 	(ii)	As a result of the uncertainty in the application of Section 4999 or Section 409(A) of the Code at the time of the determination, it is possible that Gross-Up Payments
which will not have been made by the Company should have been made (Underpayment) or Gross-Up Payments are made by the Company which should not have been made (Overpayment), consistent with the calculations required to be made hereunder. In the
event that Employee thereafter is required to make payment of any Excise Tax or additional Excise Tax, any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be paid by the Company to or
for the benefit of Employee within 30 days of any such required payment by Employee. In the event the amount of the Gross-Up Payment exceeds the amount necessary to reimburse Employee for his Excise Tax, any such Overpayment (together with interest
at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by Employee (to the extent he has received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of the
Company. Employee shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contest or disputes with the Internal Revenue Service in connection with the Excise Tax.

  

 7 

	9.	Confidential Information. 

  

	 	(a)	The Company shall disclose to Employee, or place Employee in a position to have access to or develop, trade secrets or confidential information of Company or its Affiliates; and/or
shall entrust Employee with business opportunities of Company or Affiliates; and/or shall place Employee in a position to develop business good will on behalf of Company or its Affiliates. 

  

	 	(b)	The Employee acknowledges that in his employment hereunder he occupies a position of trust and confidence and agrees that he will treat as confidential and will not, without prior
written authorization from the Company, directly or indirectly, disclose or make known to any person or use for his own benefit or gain, the methods, process or manner of accomplishing the business undertaken by the Company or its Affiliates, or any
non-public information, plans, formulas, products, trade secrets, marketing or merchandising strategies, or confidential material or information and instructions, technical or otherwise, issued or published for the sole use of the Company, or
information which is disclosed to the Employee or in any acquired by him during the term of this Agreement, or any information concerning the present or future business, processes, or methods of operation of the Company or its Affiliates, or
concerning improvement, inventions or know how relating to the same or any part thereof, it being the intent of the Company, with which intent the Employee hereby agrees, to restrict him from disseminating or using for his own benefit any
information belonging directly or indirectly to the Company which is unpublished and not readily available to the general public (collectively, “Confidential Information”). 

  

	 	(c)	The confidentiality obligations set forth in (a) and (b) of this Section 9 shall apply during Employee’s employment and for a period of one year after
termination of employment. 

  

	 	(d)	All information, ideas, concepts, improvements, discoveries, and inventions, whether patentable or not, that are conceived, made, developed or acquired by Employee, individually or
in conjunction with others, during Employee’s employment with Company (whether during business hours or otherwise and whether on the premises of the Company or an Affiliate or otherwise) that relate to the business, products or services of the
Company or any Affiliate shall be disclosed to the Board of Directors and are and shall be the sole and exclusive property of the Company or such Affiliate. Moreover, all documents, drawings, memoranda, notes, records, files, correspondence,
manuals, models, specifications, computer programs, e-mail, voice mail, electronic data bases, maps and all other writings and materials of any type embodying any such information, ideas, concepts, improvements, discoveries and inventions are and
shall be the sole and exclusive property of the Company. Upon termination of Employee’s employment by the Company, for any reason, Employee promptly shall deliver the same, and all copies thereof, to the Company. 

  

 8 

	 	(e)	If, during Employee’s employment by the Company, Employee creates any work of authorship fixed in any tangible medium of expression that is the subject matter of copyright
(such as video tapes, written presentations, or acquisitions, computer programs, e-mail, voice mail, electronic data bases, drawings, maps, architectural renditions, models, manuals, brochures or the like) relating to the Company’s business,
products or services, whether such work is created solely by Employee or jointly with others (whether during business hours or otherwise and whether on the Company’s premises or otherwise), the Company shall be deemed the author of such work if
the work is prepared by Employee in the scope of Employee’s employment. 

  

	10.	Change Of Control. 

  

	 	(a)	For purposes of this Agreement, a “Change of Control” shall be deemed to occur if: 

  

	 	(i)	Any Person, other than (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any
of its Affiliates, (3) an underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions
as their ownership of stock of the Company, is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company
or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities, or 50% or more of the then outstanding common stock of the Company, excluding any Person who becomes such a Beneficial Owner
in connection with a merger or consolidation of the Company described in (ii) below. 

  

	 	(ii)	 There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:
(A) the merger or consolidation would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity or any parent thereof) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or
(B) the merger or consolidation is effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, directly or 

  

 9 

	 	 
indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company
or its Affiliates other than in connection with the acquisition by the Company or its Affiliates of a business) representing 50% or more of the combined voting power of the Company’s then outstanding securities; 

  

	 	(iii)	The shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or
substantially all the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned
by the stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 

  

	 	(iv)	During any one year period, individuals who at the beginning of the period constitute the Board of Directors of the Company cease for any reason to constitute a majority of the
Board of Directors. 

  

	(b)	For purposes of this Section 10: 

  

	 	(i)	The term “Person” shall have the meaning given in Section 3(a)(9) of the 1934 Act as modified and used in Sections 13(d) and 14(d) of the 1934 Act.

  

	 	(ii)	The term “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act. 

  

	 	(iii)	The term “Affiliate” means, with respect to any individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind (each a “person”), any other person that directly or indirectly controls or is controlled by or under common
control with such person. For the purposes of this definition, “control” when used with respect to any person, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such
person, whether through the ownership of voting securities, by contract or otherwise; and the terms of “affiliated”, “controlling” and “controlled” have meanings correlated to the foregoing. 

  

	11.	Successors and Assigns. This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any
rights or obligations hereunder, provided, however, that the provisions hereof shall enure to the benefit of, and be binding upon, each successor of the Company, whether by merger, consolidation, acquisition or otherwise, unless otherwise agreed to
by the Employee and the Company. 

  

 10 

	12.	Notices. Any notice required or permitted to be given to the Employee pursuant to this Agreement shall be sufficiently given if sent to the Employee by registered or certified mail
addressed to the Employee at 1170 Fifth Avenue, Apt. 5C, New York, New York 10029, or at such other address as he shall designate by notice to the Company, and any notice required or permitted to be given to the Company pursuant to this
Agreement shall be sufficiently given if sent to the Company by registered or certified mail addressed to it at 110 Pitts Bay Road, Pembroke HM 08 Bermuda, or at such other address as it shall designate by notice to the Employee.

  

	13.	Invalid Provisions. The invalidity or unenforceability of a particular provision of this Agreement shall not affect the enforceability of any other provisions hereof and this
Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 

  

	14.	Amendments To The Agreement. This Agreement may only be amended in writing by an agreement executed by both parties hereto. 

  

	15.	Entire Agreement. This Agreement contains the entire agreement of the parties hereto and supercedes any and all prior agreements, oral or written, and negotiations between said
parties regarding the subject matter contained herein. 

  

	16.	Applicable Law and Venue. This Agreement is entered into under, and shall be governed for all purposes, by the laws of Bermuda; with venue of any lawsuit between the parties in
Hamilton, Bermuda. 

  

	17.	No Waiver. No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

  

	18.	Severability. If a Court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that
provision shall not effect the validity or unenforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect. 

  

	19.	Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one in the same
agreement. 

  

	20.	Withholding of Taxes and Other Employee Deductions. The Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city and other taxes
as may be required pursuant to any law or governmental regulation or ruling and any and all other normal employee deductions made with respect to the Company’s employees generally. 

  

 11 

	21.	Section 409A of the Code. The provisions of this Agreement and any payments made herein are intended to comply with, and should be interpreted consistent with, the requirements
of Section 409A of the Code, and any related regulations or other effective guidance promulgated thereunder (collectively, “Section 409A”). The time or schedule of a payment to which the Executive is entitled under this Agreement may
be accelerated at any time that this Agreement fails to meet the requirements of Section 409A and any such payment will be limited to the amount required to be included in the Executive’s income as a result of the failure to comply with
Section 409A. References herein to termination of employment shall be deemed to mean a separation from service. 

 In
witness whereof, the parties hereto have executed this Agreement as of the day and year above written. 
  

							
	Argo Group International	  	Employee:
	Holdings, Ltd.	  		  	
				
	By:	  	/s/ Mark E. Watson III	  		  	/s/ Jay Bullock
		  	Mark E. Watson III	  		  	Jay Bullock
		  	Chief Executive Officer	  		  	

  

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]