Document:

License Agreement, dated November 15, 2002

 Exhibit 10.4 
  
 Confidential Materials omitted and filed separately with the 
 Securities and Exchange Commission. Asterisks denote omissions. 
  
 LICENSE AGREEMENT 
  
 by
and between 
  
 ACHILLION PHARMACEUTICALS, INC.

  
 and 
  
 THE UNIVERSITY OF MARYLAND, BALTIMORE COUNTY 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Article I
	  	Definitions	  	1
	 Section 1.1
	  	“Affiliate”	  	1
	 Section 1.2
	  	“Commercialization” or “Commercialize”	  	1
	 Section 1.3
	  	“Confidential Information”	  	2
	 Section 1.4
	  	“Control” or “Controlled”	  	2
	 Section 1.5
	  	“Cover”, “Covering” or “Covered”	  	2
	 Section 1.6
	  	“Development” or “Develop”	  	2
	 Section 1.7
	  	“Executive Officers”	  	2
	 Section 1.8
	  	“FDA”	  	2
	 Section 1.9
	  	“IND”	  	2
	 Section 1.10
	  	“Know-How”	  	2
	 Section 1.11
	  	“Licensed Intellectual Property”	  	2
	 Section 1.12
	  	“Licensed Know-How”	  	3
	 Section 1.13
	  	“Licensed Patent Rights”	  	3
	 Section 1.14
	  	“Licensed Product”	  	3
	 Section 1.15
	  	“Net Sales”	  	3
	 Section 1.16
	  	“Party”	  	4
	 Section 1.17
	  	“Patent Rights”	  	4
	 Section 1.18
	  	“Person”	  	4
	 Section 1.19
	  	“Regulatory Approval”	  	4
	 Section 1.20
	  	“Required Third Party Payments”	  	4
	 Section 1.21
	  	“Sublicense Income”	  	5
	 Section 1.22
	  	“Territory”	  	5
	 Section 1.23
	  	“Third Party”	  	5
	 Section 1.24
	  	“Valid Claim”	  	5
	 Section 1.25
	  	Additional Definitions	  	5
	 Article II
	  	Scientific Cooperation; Diligence	  	6
	 Section 2.1
	  	Discussions of Scientific and Technical Matters	  	6
	 Section 2.2
	  	Diligence	  	6
	 Section 2.3
	  	Other Products	  	6
	 Section 2.4
	  	U.S. Manufacture	  	7
	 Section 2.5
	  	Diligence Reporting	  	7
	 Article III
	  	Grant of License	  	7
	 Section 3.1
	  	Development and Commercialization License	  	7
	 Section 3.2
	  	Sublicenses	  	7
	 Section 3.3
	  	Retained Rights	  	7
	 Section 3.4
	  	Section 365(n) of the Bankruptcy Code	  	8
	 Article IV
	  	Financial Provisions	  	8
	 Section 4.1
	  	License Milestone Payments	  	8
	 Section 4.2
	  	Royalties; Sublicense Income Payments	  	9
	 Section 4.3
	  	Currency and Method of Payments	  	11
	 Section 4.4
	  	United States Dollars	  	12
	 Section 4.5
	  	Compounded Reductions	  	12

  

 -i- 

					
	 Article V
	  	Intellectual Property	  	12
	 Section 5.1
	  	Prosecution and Maintenance of Licensed Patent Rights	  	12
	 Section 5.2
	  	Third Party Infringement	  	13
	 Section 5.3
	  	Claimed Infringement	  	14
	 Section 5.4
	  	Patent Invalidity Claim	  	14
	 Section 5.5
	  	Patent Term Extensions	  	14
	 Section 5.6
	  	Patent Acknowledgement	  	14
	 Article VI
	  	Confidentiality	  	15
	 Section 6.1
	  	Confidential Information	  	15
	 Section 6.2
	  	Employee, Consultant and Advisor Obligations	  	15
	 Section 6.3
	  	Term	  	15
	 Article VII
	  	Representations and Warranties	  	16
	 Section 7.1
	  	Representations of Authority	  	16
	 Section 7.2
	  	Consents	  	16
	 Section 7.3
	  	No Conflict	  	16
	 Section 7.4
	  	Intellectual Property	  	16
	 Section 7.5
	  	No Warranties	  	16
	 Article VIII
	  	Term and Termination	  	17
	 Section 8.1
	  	Term	  	17
	 Section 8.2
	  	Termination by ACHILLION	  	17
	 Section 8.3
	  	Survival of Licenses	  	17
	 Section 8.4
	  	Termination For Material Breach	  	17
	 Section 8.5
	  	Survival	  	17
	 Section 8.6
	  	Liquidation of Inventory; Completion of Orders	  	17
	 Article IX
	  	Dispute Resolution	  	18
	 Section 9.1
	  	General	  	18
	 Section 9.2
	  	Failure of The Parties to Resolve Dispute	  	18
	 Section 9.3
	  	Exception for Disputes involving HHMI	  	18
	 Article X
	  	Indemnification and Insurance	  	18
	 Section 10.1
	  	ACHILLION	  	18
	 Section 10.2
	  	UMBC	  	19
	 Section 10.3
	  	Claims for Indemnification	  	19
	 Section 10.4
	  	Insurance	  	20
	 Article XI
	  	Miscellaneous Provisions	  	20
	 Section 11.1
	  	Governing Law	  	20
	 Section 11.2
	  	Submission to Jurisdiction	  	20
	 Section 11.3
	  	Assignment	  	20
	 Section 11.4
	  	Entire Agreement; Amendments	  	20
	 Section 11.5
	  	Notices	  	21
	 Section 11.6
	  	Force Majeure	  	21
	 Section 11.7
	  	Public Announcements	  	22
	 Section 11.8
	  	Independent Contractors	  	22
	 Section 11.9
	  	No Strict Construction	  	22
	 Section 11.10
	  	Headings	  	22
	 Section 11.11
	  	No Implied Waivers; Rights Cumulative	  	22
	 Section 11.12
	  	Severability	  	22

  

 -ii- 

					
	 Section 11.13
	  	Execution in Counterparts	  	22
	 Section 11.14
	  	Third Party Beneficiaries	  	22
	 Section 11.15
	  	No Consequential Damages	  	23

  
 Exhibit A – Certain
Licensed Patent Rights 
  

 -iii- 

 LICENSE AGREEMENT 
  
 This agreement (the “Agreement”), dated the 15th day of November, 2002 (the “Effective Date”), is by and
between Achillion Pharmaceuticals, Inc. , a corporation organized and existing under the laws of the State of Delaware (“ACHILLION”), and The University of Maryland, Baltimore County, a constituent institution of the University System of
Maryland, which is an agency of the State of Maryland (“UMBC”). 
  
 INTRODUCTION 
  
 1. By
assignment from the Howard Hughes Medical Institute (“HHMI”), UMBC is the owner of certain technology and intellectual property relating to the N-terminal portion of the immature HIV-1 gag polyprotein, which protein regulates maturation
and infectivity of the human immunodeficiency virus (“HIV”) (UMBC Ref. 2392MS; HHMI Ref. 02368), and a number of compounds which bind to the HIV-1 gag polyprotein and interfere with its maturation, and therefore, replication of HIV (UMBC
Ref. 2398MS; HHMI Ref. 02457). 
  
 2. ACHILLION possesses
scientific talent, know-how and resources, including the ability to utilize assays to screen and identify compounds, necessary to establish a research program to develop for commercial exploitation drug products for the diagnosis, prevention and/or
treatment of diseases associated with infection by HIV. 
  
 3.
ACHILLION wishes to obtain, and UMBC is willing to grant, certain rights and licenses to develop and commercialize diagnostic, prophylactic and therapeutic drug products, subject to the terms set forth below. 
  
 NOW, THEREFORE, ACHILLION and UMBC agree as follows: 
  
 Article I 
 Definitions 
  
 When used in this Agreement, each of the following terms shall have the meanings set forth in this Article I: 
  
 Section 1.1 “Affiliate”. Affiliate means, with respect to a Party, any Person that controls, is controlled by, or is under common control
with such Party. For purposes of this Section 1.1, “control” shall refer to (a) in the case of a Person that is a corporate entity, direct or indirect ownership of fifty percent (50%) or more of the stock or shares having
the right to vote for the election of directors of such Person and (b) in the case of a Person that is an entity but not a corporate entity, the possession, directly or indirectly, of the power to direct, or cause the direction of, the
management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 Section 1.2 “Commercialization” or “Commercialize”. Commercialization or Commercialize means any activities directed to
producing, manufacturing, marketing, promoting, distributing, importing or selling a product. 
  

 -1- 

 Section 1.3 “Confidential Information”. Confidential Information means all Know-How,
including without limitation proprietary information and materials (whether or not patentable), regarding a Party’s technology, products, business operations or objectives, which is designated as confidential in writing by the disclosing Party,
whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such Know-How is disclosed by the disclosing Party to the other Party. Notwithstanding anything in the foregoing to the contrary, Know-How disclosed
orally, electronically or visually by a Party, or disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information of the disclosing Party if the disclosing Party, within thirty (30) days after such
disclosure, delivers to the other Party a written document or documents describing the Know-How and referencing the place and date of such oral, electronic, visual or written disclosure and the names of the persons to whom such disclosure was made.
For clarity, all reports submitted by ACHILLION to UMBC pursuant to Article IV and Article III, Section 3.2 hereof shall constitute Confidential Information of ACHILLION. 
  
 Section 1.4 “Control” or “Controlled”. Control or Controlled means, with respect to any
(a) Know-How or (b) intellectual property right, the possession (whether by license or ownership) by a Party or its Affiliates of the ability to grant to the other Party access and/or a license as provided herein without violating the
terms of any agreement with any Third Party existing on the Effective Date. 
  
 Section 1.5 “Cover”, “Covering” or “Covered”. Cover, Covering or Covered means, with respect to a product or technology, that, but for a license granted to a Party or its
Affiliates under a Valid Claim included in the Patent Rights under which such license is granted, the Development or Commercialization of such product or the practice of such technology in the Territory by such Party or its Affiliates would infringe
such Valid Claim. 
  
 Section 1.6 “Development” or
“Develop”. Development or Develop means research, discovery and development activities. 
  
 Section 1.7 “Executive Officers”. Executive Officers means the Chief Executive Officer of ACHILLION (or an executive officer of ACHILLION
designated by ACHILLION’s Chief Executive Officer) and the Provost of UMBC (or a representative of UMBC designated by such Provost). 
  
 Section 1.8 “FDA”. FDA means the United States Food and Drug Administration. 
  
 Section 1.9 “IND”. IND means a “Notice of Claimed
Investigational Exemption for a New Drug” filed with the FDA, as defined in 21 CFR Part 312, or an equivalent application filed with an applicable regulatory authority outside of the United States. 
  
 Section 1.10 “Know-How”. Know-How means any information,
data or materials in a tangible form, including without limitation documented ideas, concepts, formulas, methods, procedures, protocols, designs, compositions, plans, applications, technical data, samples, inventions, chemical compounds and
biological materials. 
  
 Section 1.11 “Licensed
Intellectual Property”. Licensed Intellectual Property means Licensed Know-How and Licensed Patent Rights. 
  

 -2- 

 Section 1.12 “Licensed Know-How”. Licensed Know-How means any Know-How that (a) is
necessary or useful for the practice by ACHILLION of inventions claimed in the Licensed Patent Rights, (b) is Controlled by UMBC, and (c) is provided to ACHILLION by UMBC as of the Effective Date of this Agreement. 
  
 Section 1.13 “Licensed Patent Rights”. Licensed Patent
Rights means (a) the patent applications set forth in Exhibit A, (b) United States patents issued from the applications listed in Exhibit A and from divisionals and continuations of these applications and any reissues of such
United States patents, (c) claims of continuation-in-part applications and patents directed to subject matter specifically described in the applications listed in Exhibit A, and (d) claims of all foreign patent applications,
patents, and other intellectual property which are directed to the subject matter specifically described in the United States patents and/or patent applications listed in Exhibit A. 
  
 Section 1.14 “Licensed Product”. Licensed Product means a
diagnostic, prophylactic or therapeutic drug product the Development, Commercialization or other use of which is Covered by a Valid Claim of any of the Licensed Patent Rights in the country where such product is manufactured, used, sold or imported.

  
 Section 1.15 “Net Sales”. Net Sales means,
with respect to a Licensed Product, the gross amounts received by ACHILLION, its Affiliates and/or sublicensees in respect of sales of such Licensed Product (excluding any such sales among ACHILLION, its Affiliates and/or sublicensees), less the
following deductions: 
  
 (a) Trade, cash and/or
quantity discounts actually allowed and taken with respect to such sales; 
  
 (b) Tariffs, duties, excises, sales taxes or other taxes imposed upon and paid with respect to the production, sale, delivery or use of the Licensed Product (excluding national, state or local taxes based on income);

  
 (c) Amounts repaid or credited by reason of
rejections, defects, recalls or returns or because of charge backs, refunds, rebates or retroactive price reductions; 
  
 (d) To the extent separately stated on purchase orders, invoices or other documents of sale, insurance and other outbound transportation
charges incurred in shipping the Licensed Product; and 
  
 (e) Gross amounts received at or below ACHILLION’s cost in respect of sales for clinical trial purposes or compassionate or similar use. 
  
 Such amounts shall be determined from the books and records of ACHILLION, its Affiliates and/or sublicensees, maintained in accordance with generally accepted accounting
principles, consistently applied. 
  
 In the event the Licensed Product is sold as
part of a Combination Product (as defined below), the Net Sales from the Combination Product, for the purposes of determining royalty payments, shall be determined by multiplying the Net Sales (as determined above) of the Combination. 
  

 -3- 

 Product, during the applicable royalty reporting period, by the fraction, A/A+B, where A is the average sale price of the
Licensed Product when sold separately and B is the average sale price of the other active ingredient(s) included in the Combination Product when sold separately, in each case during the applicable royalty reporting period or, if sales of both the
Licensed Product and the other active ingredient(s) did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred. 
  
 In the event that such average sale price cannot be determined for both the Licensed Product and the other active ingredient(s) included in
such Combination Product, Net Sales for the purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination Product by the fraction of C/C+D where C is the fair market value of the Licensed Product and D
is the fair market value of all other active ingredient(s) included in the Combination Product as determined by ACHILLION in good faith and reasonably acceptable to UMBC. 
  
 As used above, the term “Combination Product” means any product that includes both (x) a Licensed Product and (y) one or
more other active ingredients. 
  
 In order to insure UMBC the full royalty
payments contemplated under this Agreement, ACHILLION agrees that in the event any Licensed Product is sold to any Person with which ACHILLION has any agreement, understanding or arrangement with respect to consideration (such as, among other
things, an option to purchase stock or actual stock ownership, or an arrangement involving division of profits or special rebates or allowances), or otherwise at less than arms length, Net Sales shall be determined as may be mutually agreed by the
parties in good faith. 
  
 Section 1.16 “Party”.
Party means ACHILLION or UMBC; “Parties” means ACHILLION and UMBC. 
  
 Section 1.17 “Patent Rights”. Patent Rights means patents and patent applications and all substitutions, divisions, continuations, continuations-in-part, reissues, reexaminations and extensions
thereof. 
  
 Section 1.18 “Person”. Person means
any natural person or any corporation, company, partnership, joint venture, firm or other entity, including without limitation a Party. 
  
 Section 1.19 “Regulatory Approval”. Regulatory Approval means the approvals (including any applicable governmental price and
reimbursement approvals), licenses, registrations or authorizations necessary for the Commercialization of a product in a country. 
  
 Section 1.20 “Required Third Party Payments”. Required Third Party Payments means, with respect to a Licensed Product, payments by
ACHILLION and/or its Affiliates to Third Parties to (a) license Patent Rights Covering such Third Parties’ technology if, in the absence of such license, the Development and/or Commercialization of such Licensed Product by ACHILLION, its
Affiliates or sublicensees in the Territory would or is likely to, in the good faith judgment of ACHILLION, infringe such Patent Rights or (b) settle claims by such Third Parties in accordance with Section 5.1. 
  

 -4- 

 Section 1.21 “Sublicense Income”. Sublicense Income means all amounts received by
ACHILLION and/or its Affiliates from sublicensees in consideration for sublicenses under the license granted by UMBC to ACHILLION in Section 3.1 of rights to Develop and Commercialize Licensed Products, less actual, reasonable third-party costs
incurred by ACHILLION in negotiating and entering into such sublicenses, excluding: 
  
 (a) royalties received by ACHILLION and/or its Affiliates from sublicensees in respect of sales of Licensed Products by such sublicensees;

  
 (b) amounts received by ACHILLION and/or its
Affiliates from such Third Parties at the fair market value purchase price for ACHILLION’s and/or its Affiliates’ debt or equity securities; and 
  
 (c) amounts received by ACHILLION and/or its Affiliates for future research and development activities undertaken for, or in collaboration
with, such sublicensees provided such development activities are detailed in a written research and development plan and corresponding budget. 
  
 Section 1.22 “Territory”. Territory means all countries of the world. 
  
 Section 1.23 “Third Party”. Third Party means any person or entity other than a Party or any of its
Affiliates. 
  
 Section 1.24 “Valid Claim”. Valid
Claim means a claim of any pending, issued, and unexpired United States patent application or patent and any foreign equivalent, which shall not have been donated to the public, disclaimed, nor held invalid or unenforceable by a court of competent
jurisdiction in an unappealed or unappealable decision. 
  
 Section 1.25 “Additional Definitions”. Each of the following definitions is set forth in the section of this Agreement indicated below: 
  

			
	 Definitions

	  	Section

	 ACHILLION
	  	Preamble
	 Agreement
	  	Preamble
	 Breaching Party
	  	8.3
	 Claims
	  	10.1
	 Combination Product
	  	1.15
	 Effective Date
	  	Preamble
	 HHMI
	  	Preamble
	 HHMI Indemnitees
	  	10.1
	 HIV
	  	Preamble
	 Indemnified Party
	  	10.3
	 Indemnifying Party
	  	10.3
	 Invalidity Claim
	  	5.4
	 Patent Prosecution
	  	5.1(c)(i)
	 UMBC
	  	Preamble

  

 -5- 

 Article II 
 Scientific Cooperation; Diligence 
  
 Section 2.1 Discussions of Scientific and Technical Matters. To the extent that the inventors of the Licensed Patent Rights and the providers of Licensed Know-How are willing to cooperate, the Parties may
discuss scientific and technical matters relating to Licensed Products from time to time as mutually agreed by the Parties with the goal of improving such Licensed Products. 
  
 Section 2.2 Diligence. ACHILLION shall use commercially reasonable efforts to Develop and Commercialize at least one
Licensed Product and, in particular, shall (together with its Affiliates and sublicensees) achieve the following diligence milestones within the following time periods: 
  

			
	 Diligence Milestone

	  	 Achieved By

	(a) Commence a study in animals to test the toxicity and efficacy of a Licensed Product	  	[**]th anniversary of the Effective Date
		
	(b) Either (i) file an IND for the purpose of initiating clinical studies of a Licensed Product or (ii) if the first clinical study of a Licensed Product occurs in a jurisdiction that
does not require an IND, initiate clinical studies of such Licensed Product	  	[**]th anniversary of the Effective Date

  
 provided, however, that
if ACHILLION does not achieve such diligence milestones within the time periods specified above, but ACHILLION notifies UMBC that it is actively and diligently pursuing the achievement of such diligence milestones and provides to UMBC a written
development plan detailing the steps ACHILLION will take to achieve such diligence milestones, including a detailed timetable for completing such steps and such development plan is reasonably acceptable to UMBC, then the deadlines for achieving such
diligence milestones shall be extended during all periods in which ACHILLION, its Affiliates and/or its sublicensees are actively and diligently pursuing the achievement of such diligence milestones in accordance with such development plan.
UMBC’s sole and exclusive remedy and ACHILLION’s sole and exclusive liability for any failure to achieve the diligence milestones above shall be for UMBC to terminate this agreement in accordance with Section 8.3. 
  
 Section 2.3 Other Products. In the event that evidence is provided, in
writing by UMBC or by another party, to ACHILLION, demonstrating the practicality and commercial feasibility of a particular market which is not being developed or commercialized by ACHILLION; ACHILLION shall either provide UMBC with a reasonable
development plan and start development or attempt to reasonably sublicense the particular technology to a third party. If within [**] of such notification by UMBC, ACHILLION has not initiated such development efforts or sublicensed that particular
market, UMBC may terminate this license for such 

  

 -6- 

 
particular market. This Paragraph shall not be applicable if ACHILLION reasonably demonstrates to UMBC that commercializing a Licensed Product or granting
such a sublicense in said particular market would have a potentially adverse commercial effect upon marketing or sales of the Licensed Products developed and being sold by ACHILLION or its sublicensees. 
  
 Section 2.4 U.S. Manufacture. To the extent required by applicable
United States laws and regulations, ACHILLION agrees that Licensed Products will be manufactured in the United States or its territories, subject to such waivers as may be required by or obtained from the United States Department of Health and Human
Services, or any successor agency or designee. 
  
 Section 2.5
Diligence Reporting. Until ACHILLION or its Sublicensee has achieved a first commercial sale of a Licensed Product, a report shall be submitted at the end of every December following the Effective Date of this Agreement and will include a
full written report describing ACHILLION’s or its sublicensee ‘s technical efforts towards meeting its obligations under the terms of this Agreement as set forth in this Article II. 
  
 Article III  
 Grant of License 
  
 Section 3.1 Development and Commercialization License. Subject to the retained rights of UMBC, HHMI, and the United States Government as set forth
in Section 3.3, below, and ACHILLION’s compliance with the terms and conditions of this Agreement, UMBC hereby grants to ACHILLION and its Affiliates an exclusive, royalty-bearing license, with the right to grant sublicenses, under the
Licensed Intellectual Property, to Develop and Commercialize Licensed Products in the Territory. 
  
 Section 3.2 Sublicenses. ACHILLION shall have the right to grant sublicenses under the license granted by UMBC to ACHILLION in Section 3.1,
which sublicenses shall include, without limitation, a provision binding sublicensees to all reporting and record-keeping obligations hereunder with respect to sales of Licensed Products. ACHILLION further agrees to deliver to UMBC for information
purposes (and under the obligation of confidentiality) a copy of each sublicense granted by ACHILLION within [**] after the execution of such sublicense. Such copy may be redacted to exclude confidential scientific information and other information
required by a Sublicensee to be kept confidential, provided that all relevant financial terms and information and any terms related to indemnity and insurance shall be retained. Any sublicense granted by Achillion, an Affiliate, or a
sublicensee pursuant to this Section 3.2 shall be consistent with the terms and scope of this Agreement and shall contain terms that require the sublicensee to grant UMBC and HHMI the same protections granted to UMBC and HHMI by Achillion in
Article X and Section 11.14 of this Agreement. Any grant of a sublicense by Achillion, an Affiliate, or a sublicensee that is inconsistent with the foregoing sentence shall be invalid unless Achillion obtains prior written consent from UMBC.

  
 Section 3.3 Retained Rights. Notwithstanding anything
to the contrary in Section 3.1: (i) UMBC retains the right under the Licensed Intellectual Property to make and use Licensed Products solely for educational and research purposes; (ii) HHMI retains the right to use Licensed
Intellectual Property solely for educational and research purposes and (iii) the exclusive 

  

 -7- 

 
license granted in Section 3.1 shall be subject to the retained rights of the United States Government in accordance with Public Law 96-517, as amended
by Public Law 98-620. 
  
 Section 3.4 Section 365(n) of
the Bankruptcy Code. All rights and licenses granted under or pursuant to any section of this Agreement are, and otherwise shall be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to
“intellectual property” as defined under Section 101 (35A) of the Bankruptcy Code. ACHILLION shall retain and may fully exercise all of its respective rights and elections under the Bankruptcy Code. 
  
 Article IV 
 Financial Provisions 
  
 Section 4.1 License Milestone Payments. ACHILLION shall make the following license milestone payments to UMBC on or before the dates specified; provided that ACHILLION shall not be required to make any
such payment that otherwise would become due after any termination of this Agreement: 
  

			
	 License Milestone
Payment

	  	 Due Date

	 $[**]
	  	(a) Within thirty (30) days of the Effective Date
		
	 $[**]
	  	(b) Within [**] of licensee’s successful synthetic optimization of the first lead compound identified as an inhibitor of HIV, with inhibitory activity mediated via prevention of the
maturation of capsid, and subsequent demonstration of in vivo activity of such compound in an animal model (Scid hu mouse) of HIV infection.
		
	 $[**]
	  	(c) Upon the first successful demonstration of safety and efficacy demonstrated over a dosing interval of greater than [**] in a human phase II clinical trial for the first Licensed Product
Covered by Licensed Patent Rights for HIV
		
	 $[**]
	  	(d) Upon the first successful demonstration of safety and efficacy demonstrated over a dosing interval of greater than [**] in a human phase II clinical trial for the first Licensed Product
Covered by Licensed Patent Rights for a virus other than HIV
		
	 $[**]
	  	(e) Upon receiving the first marketing approval from the FDA to Commercialize a first Licensed Product Covered by Licensed Patent Rights for HIV
		
	 $[**]
	  	(f) Upon receiving the first marketing approval from the FDA to Commercialize a first Licensed Product Covered by Licensed Patent Rights for a virus other than HIV

  

 -8- 

 All payments made by ACHILLION to UMBC under this Section 4.1 shall be creditable against any amounts payable by
ACHILLION to UMBC under Section 4.2(c) of this Agreement. 
  
 Section 4.2 Royalties; Sublicense Income Payments. 
  
 (a) Royalties on Net Sales of Licensed Products. ACHILLION shall pay royalties to UMBC on Net Sales of each Licensed Product made during the periods set forth in Section 4.2(d), on a Licensed
Product-by-Licensed Product basis, at the following rates: 
  

				
	 Portion Of Net Sales Of Such Licensed
 Product During Any Calendar Year:

	  	Royalty Rate:

	 
	 Less than or equal to $[**]
	  	[	**]%
		
	 Greater than $[**] but less than or equal to $[**]
	  	[	**]%
		
	 Greater than $[**]
	  	[	**]%

  
 The royalty rates set forth in this
Section 4.2(a) shall be reduced by [**] percent ([**]%) for any Licensed Product sold that is not Covered by an issued claim included in Licensed Patent Rights. In the event that ACHILLION pays royalties to UMBC pursuant to this Paragraph
4.2(a) for the sale of a Licensed Product, which is not Covered by any issued claim and never becomes Covered by an issued claim included within Licensed Patent Rights, and all pending claims Covering said Licensed Product become finally rejected in
an unappealed or unappealable decision, then ACHILLION may deduct royalties paid to UMBC for such Licensed Product against future royalties due to UMBC pursuant to this Paragraph 4.2(a), if any, provided, however, that the maximum
amount that such future payments due to UMBC may be reduced by such deduction shall be [**] percent ([**]%) of the payment amounts that otherwise would be due. 
  

(b) Creditable Annual License Fees. ACHILLION shall make the following annual license fee payments to UMBC on or before the
dates specified; provided that ACHILLION shall not be required to make any such payment that otherwise would become due after achievement of the License Milestone Payment under Section 4.1(b), or any termination of this Agreement:

  

						
	 Annual License Fee Payment Due Date

	  	Amount Due

	 Each of the first, second, and third anniversaries of the Effective Date of this Agreement
	  	$	[**]
		
	 The fourth, and each subsequent anniversary of the Effective Date of this Agreement.
	  	$	[**]

  

 -9- 

 (c) Sublicense Income Payments. ACHILLION shall pay to UMBC a percentage of all
Sublicense Income of: (a) if the sublicense agreement is executed prior to ACHILLION’s achievement of the diligence milestone set forth in Section 2.2(b), [**] ([**]%) of Sublicense Income; (b) if the sublicense agreement is
executed after ACHILLION’s achievement of the diligence milestone set forth in Section 2.2(b), [**] ([**]) of Sublicense Income; or (c) if the sublicense agreement is executed after ACHILLION’s achievement of 4.1(c), [**] percent
([**]%) of Sublicense Income. 
  
 (d) Periods
During Which Payment Obligations Are Applicable. The amounts payable under subsection (a) shall be paid, on a Licensed Product-by-Licensed Product and country-by-country basis, only on Net Sales during the period when a Valid Claim within
the Licensed Patent Rights Covers the Development or Commercialization of such Licensed Product in such country. 
  
 (e) Required Third Party Payments. 
  
 (i) Royalty Payments. ACHILLION shall be entitled to deduct from the royalties due to UMBC pursuant to this Section 4.2(a)
with respect to a Licensed Product [**] percent ([**]%) of royalties due to a third party with respect to such Licensed Product; provided, however, that the maximum amount that such royalties due to UMBC may be reduced by such
deduction shall be [**] percent ([**]%) of the royalty amounts that otherwise would be due to UMBC. 
  
 (ii) Annual License Fees And Sublicense Income Payments. ACHILLION shall be entitled to deduct from the payments made by it
pursuant to Sections 4.2(b) and 4.2(c) [**] percent ([**]%) of Required Third Party Payments, excluding all royalty payments deducted in accordance with Section 4.2(e)(i) above; provided, however, that the maximum amount that such
payments due to UMBC may be reduced by such deduction shall be [**] percent ([**]%) of the payment amounts that otherwise would be due. If ACHILLION is prevented from deducting any amount (“Carryover Amount”) from a payment by the proviso
in the immediately preceding sentence, ACHILLION shall be entitled to deduct such Carryover Amount from future payments due by it pursuant to Sections 4.2(b) and 4.2(c); provided, however, that the maximum aggregate amount that such
payments may be reduced by all deductions under this Paragraph 4.2(e)(ii) shall be [**] percent ([**]%) of the payment amounts that otherwise would be due. 
  
 (f) Royalties Payable Only Once. The obligation to pay royalties is imposed only once with respect to Net Sales of the same unit of
a Licensed Product. 
  
 (g) Reports and
Accounting. 
  
 (i) Reports; Payments.
ACHILLION shall deliver to UMBC, within [**] after the end of each calendar quarter, reasonably detailed written accountings of Net Sales and Sublicense Income subject to payment obligations to UMBC under this Section 4.2 for such calendar
quarter. Such quarterly reports shall indicate (A) gross sales and Net Sales of Licensed Products, (B) the calculation of royalties owed to UMBC from such gross sales and Net Sales, (C) Sublicense Income and (D) the amount
payable by ACHILLION to UMBC with respect to 

  

 -10- 

 
Sublicense Income. When ACHILLION delivers such accountings to UMBC, ACHILLION shall also deliver all payments due under this Section 4.2 to UMBC for
the calendar quarter. 
  
 (ii) Audits by
UMBC. ACHILLION shall keep, and shall require its Affiliates and sublicensees to keep, complete and accurate records of the latest three (3) years relating to gross sales, Net Sales and Sublicense Income. For the sole purpose of verifying
amounts payable to UMBC, UMBC shall have the right no more than once each calendar year at UMBC’s expense to retain an independent certified public accountant selected by UMBC and reasonably acceptable to ACHILLION, to review such records in
the location(s) where such records are maintained by ACHILLION, its Affiliates or its sublicensees upon reasonable notice and during regular business hours and under obligations of confidence. Results of such review shall be made available to both
UMBC and ACHILLION. If the review reflects an underpayment to UMBC, such underpayment shall be promptly remitted to UMBC. If the underpayment is equal to or greater than ten percent (10%) of the amounts that were otherwise due under this
Section 4.2, ACHILLION shall pay all of the costs of such review. If the review reflects an overpayment to UMBC, the amount of such overpayment shall be credited against future payments due to UMBC. 
  
 Section 4.3 Currency and Method of Payments. All payments under this
Agreement shall be made in United States dollars by check or checks drawn on a United States Bank. Checks are to be made payable to “UMBC”, shall reference: 
  
 ‘OTD Account #[**]’ 
  
 And shall be sent to: 
  
 Attn: Director 
 Office of Technology
Development 
 University of Maryland, Baltimore County 
 Administration Building 
 1000 Hilltop Circle 
 Baltimore, MD 21250 
  
 To the extent Net Sales may have been made by ACHILLION, an Affiliate or a sublicensee in a foreign country, any royalties due to UMBC based thereon shall be first
determined in the currency of the country in which the royalties were earned and then converted to their equivalent in United States Dollars using an average of the currency exchange rates quoted in the Wall Street Journal for the last business day
of each of the three (3) consecutive calendar months constituting the calendar quarter in which the royalties were earned. To the extent that statutes, laws, codes, or government regulations (including currency exchange regulations) shall
prevent or limit royalty payments by ACHILLION, an Affiliate or its sublicensee in any country, all monies due to UMBC shall promptly be deposited by ACHILLION, an Affiliate or its sublicensee, as the case may be, in an account in a local bank in
such country, said bank to be designated by UMBC in writing; or paid to UMBC, or deposited in its account, in any other country where such payment or deposit is lawful under the currency restrictions, as directed in writing by UMBC. 
  

 -11- 

 Section 4.4 United States Dollars. All dollar ($) amounts specified in this Agreement are
United States dollar amounts. 
  
 Section 4.5 Compounded
Reductions. In the event that multiple reductions of the payments due to UMBC are triggered as provided for in Sections 4.2 and 10.2, the total reductions to any payments due to UMBC shall be limited to [**] percent ([**]%) of the maximum that
would otherwise be due to UMBC in a situation in which no reductions are triggered. 
  
 Article V 
 Intellectual Property 
  
 Section 5.1 Prosecution and Maintenance of Licensed Patent Rights.

  
 (a) Right to Prosecute and Maintain.
UMBC, in consultation with ACHILLION and at ACHILLION’s expense, shall file and prosecute any patent applications and to maintain any patents included in the Licensed Patent Rights. If for some reason, UMBC is unable to file and prosecute any
such patent applications or maintain any such patents, it shall give ACHILLION reasonable notice to this effect, sufficiently in advance to permit ACHILLION to undertake such filing, prosecution and/or maintenance in consultation with UMBC without a
loss of rights. In any case, title to all such patents and patent applications shall reside in UMBC. 
  
 (b) Costs and Expenses. After the Effective Date, ACHILLION shall pay all Patent Prosecution costs thereafter incurred by UMBC with
respect to the Licensed Patent Rights; provided, however, that if ACHILLION elects to cease, to file and prosecute a patent application or maintain a patent included in the Licensed Patent Rights, thereafter ACHILLION shall not have
any obligation to pay any Patent Prosecution costs incurred by UMBC with respect to such Licensed Patent Rights and thereafter such Licensed Patent Rights shall be excluded from the definition of Licensed Patent Rights. 
  
 (c) Cooperation. UMBC agrees to cooperate with
ACHILLION with respect to the filing, prosecution, maintenance and extension of patents and patent applications pursuant to this Section 5.1, including without limitation, providing ACHILLION with all patent related correspondence and
documentation filed with any patent office for ACHILLION’s review and comment. UMBC shall have full and complete control over all patent matters related to the Licensed Patent Rights, provided however, that UMBC will consider and incorporate
reasonable comments received from ACHILLION. ACHILLION will provide UMBC with directions regarding any patent decisions related to expanding or restricting the Licensed Patent Rights at least one (1) month before an action is due, provided that
ACHILLION has received timely notice of such action from UMBC. ACHILLION’s failure to provide timely authorization may be considered by UMBC as an election by ACHILLION to cease any expansion of Licensed Patent Rights associated with said
action. 
  

 -12- 

 Section 5.2 Third Party Infringement. 
  
 (a) Notifications of Third Party Infringement. Each
Party agrees to notify the other Party when it becomes aware of the reasonable probability of infringement of the Licensed Patent Rights by a Third Party. 
  
 (b) Infringement Action. Within ninety (90) days of becoming aware of an infringement by a Third Party, ACHILLION shall decide
whether to institute an infringement suit or take other appropriate action that it believes is reasonably required to protect the Licensed Patent Rights from such infringement. If ACHILLION fails to institute such suit or take such action within
such ninety (90) day period, then UMBC shall have the right at its sole discretion to institute such suit or take other appropriate action in the name of either or both Parties. 
  
 (c) Costs. The Party that institutes suite in accordance with Section 5.2(b) shall assume and
pay all costs incurred in connection with any litigation or proceedings described in this Section 5. 2, including without limitation the fees and expenses of that Party’s counsel. The other Party shall reasonably cooperate with any such
suit at the expense of the Party instituting the suit. 
  
 (d) Recoveries by ACHILLION. Any recovery obtained by ACHILLION as a result of any proceeding described in this Section 5.2 or from any counterclaim or similar claim asserted in a proceeding described in Section 5.3, by
settlement or otherwise, shall be applied in the following order of priority: 
  
 (i) First, to reimburse ACHILLION for attorney’s fees and other out-of-pocket expenses directly related to litigation, including, but not limited to, transcription and court reporting services, in connection with
such proceeding paid by ACHILLION and not otherwise recovered; and 
  
 (ii) Second, the remainder of the recovery shall be paid to ACHILLION, with such remainder being considered recovered profits on lost sales of Licensed Products for purposes of calculating Net Sales. For the purpose
of this Section 5.2(d)(ii), Net Sales shall be calculated by dividing said recovered profits on lost sales by ACHILLION’s average reported gross margin percentage for Licensed Products during the period in which the infringement occurred.
In the event that ACHILLION did not sell Licensed Products during said period, then UMBC and ACHILLION shall negotiate a reasonable gross margin percentage based on similar products in the industry. ACHILLION shall consider any Net Sales amount
calculated pursuant to this Section to be considered Net Sales for which royalties are due as set forth in Section 4.2. 
  
 (e) Recoveries by UMBC. Any recovery obtained by UMBC as a result of any proceeding described in this Section 5.2 or from any
counterclaim or similar claim asserted in a proceeding described in Section 5.3, by settlement or otherwise, shall be applied in the following order of priority: 
  
 (i) First, to reimburse UMBC for attorney’s fees and other out-of-pocket expenses directly related to
litigation, including, but not limited to, transcription and court reporting services, in connection with such proceeding paid by UMBC and not otherwise 

  

 -13- 

 
recovered (on a pro rata basis based on each Party’s respective litigation costs, to the extent the recovery was less than all such litigation costs);
and 
  
 (ii) Second, the remainder of the
recovery shall be paid to UMBC. UMBC shall pay to ACHILLION an amount of such remainder that is equivalent to the amount that ACHILLION would be required to pay UMBC if ACHILLION had instituted a suit, as set forth in Section 5.2(d)(ii).

  
 (f) Cooperation: Settlements. In the
event that either ACHILLION or UMBC takes action pursuant to subsection (b) above, the other Party shall cooperate with the Party so acting to the extent reasonably possible, including the joining of suit if necessary or desirable. Neither
party shall settle or compromise any claim or proceeding relating to Licensed Patent Rights without obtaining the prior written consent of the other party, such consent not to be unreasonably withheld. 
  
 Section 5.3 Claimed Infringement. In the event that a Party becomes
aware of any claim that the Development or Commercialization of Licensed Products infringes the intellectual property rights of any Third Party, such Party shall promptly notify the other Party. In any such instance, ACHILLION shall have the
exclusive right to settle such claim and to treat any settlement payments and license fees as Required Third Party Payments. Each Party shall provide to the other Party copies of any notices it receives from Third Parties regarding any patent
nullity actions or any declaratory judgment actions with respect to Licensed Patent Rights or regarding any alleged infringement of Third Party Patent Rights or alleged misappropriation of Third Party intellectual property arising out of or in
connection with the Development or Commercialization of any Licensed Product. Such notices shall be provided promptly, but in no event after more than fifteen (15) days following receipt thereof. 
  
 Section 5.4 Patent Invalidity Claim. If a Third Party at any time
asserts a claim that any Licensed Patent Right is invalid or otherwise unenforceable (an “Invalidity Claim”), whether as a defense in an infringement action brought by ACHILLION or UMBC pursuant to Section 5.2, in an action brought
against ACHILLION or UMBC under Section 5.3 or in an interference proceeding, the Parties shall cooperate with each other in preparing and formulating a response to such Invalidity Claim. Neither Party shall settle or compromise any Invalidity
Claim without the consent of the other Party, which consent shall not be unreasonably withheld. 
  
 Section 5.5 Patent Term Extensions. The Parties shall cooperate, if necessary and appropriate, with each other in gaining patent term extension
wherever applicable to Licensed Patent Rights. The Parties shall, if necessary and appropriate, use reasonable efforts to agree upon a joint strategy relating to patent term extensions, but, in the absence of mutual agreement with respect to any
extension issue, a patent shall be extended if either Party elects to extend such patent. 
  
 Section 5.6 Patent Acknowledgement. ACHILLION agrees that all packaging containing individual Licensed Products sold by ACHILLION and its sublicensees will be marked with the number of the applicable patent(s)
licensed hereunder in accordance with each country’s patent laws. 
  

 -14- 

 Article VI 
 Confidentiality 
  
 Section 6.1 Confidential Information. The receiving Party shall not use any Confidential Information of the other Party disclosed to the receiving Party during the term of this Agreement except in connection with the activities
contemplated by this Agreement, shall maintain in confidence all such Confidential Information and shall not disclose any such Confidential Information to any other person, firm or agency, governmental or private (except for disclosures to
consultants, advisors and Affiliates in accordance with Section 6.2 and except for disclosures reasonably necessary for Regulatory Approval of Licensed Products or to file and prosecute patent applications), without the prior written consent of
the disclosing Party, except to the extent that the Confidential Information: 
  
 (a) was known or used by the receiving Party prior to its date of disclosure to the receiving Party; or 
  
 (b) either before or after the date of the disclosure to the receiving Party is lawfully disclosed to the receiving Party by sources other
than the disclosing Party rightfully in possession of the Confidential Information; or 
  
 (c) either before or after the date of the disclosure to the receiving Party becomes published or generally known to the public (including
information known to the public through the sale of Licensed Products in the ordinary course of business) through no fault or omission on the part of the receiving Party; or 
  
 (d) is independently developed by or for the receiving Party without reference to or reliance upon the
Confidential Information; or 
  
 (e) is required
to be disclosed by the receiving Party to comply with applicable laws, to defend or prosecute litigation or to comply with governmental regulations, provided that the receiving Party provides prior written notice of such disclosure to the
disclosing Party and takes reasonable and lawful actions to avoid and/or minimize the degree of such disclosure. 
  
 Section 6.2 Employee, Consultant and Advisor Obligations. ACHILLION and UMBC each agrees that it and its Affiliates shall provide Confidential
Information received from the other Party only to the receiving Party’s respective employees, consultants and advisors, and to the employees, consultants and advisors of the receiving Party’s Affiliates, who have a need to know such
Confidential Information to assist the receiving Party with the activities contemplated by this Agreement; provided that ACHILLION and UMBC shall each remain responsible for any failure by its Affiliates, its and its Affiliates’
respective employees, consultants and advisors, to treat such Confidential Information as required under Section 6.1 (as if such Affiliates, employees, consultants and advisors were Parties directly bound to the requirements of
Section 6.1). 
  
 Section 6.3 Term. All obligations of
confidentiality imposed under this Article VI shall expire ten (10) years following termination or expiration of this Agreement. 
  

 -15- 

 Article VII 
 Representations and Warranties 
  
 Section 7.1 Representations of Authority. ACHILLION and UMBC each represents and warrants to the other that as of the Effective Date it has full right, power and authority to enter into this Agreement and to
perform its respective obligations under this Agreement. 
  
 Section 7.2 Consents. ACHILLION and UMBC each represents and warrants that all necessary consents, approvals and authorizations of all government authorities and other persons required to be obtained by such Party in connection with
execution, delivery and performance of this Agreement have been and shall be obtained. 
  
 Section 7.3 No Conflict. ACHILLION and UMBC each represents and warrants that notwithstanding anything to the contrary in this Agreement, the execution and delivery of this Agreement and the performance of such
Party’s obligations hereunder (a) do not conflict with or violate any requirement of applicable laws or regulations and (b) do not and will not conflict with, violate or breach or constitute a default of, or require any consent under,
any contractual obligations of such Party, except such consents as shall have been obtained prior to the Effective Date. 
  
 Section 7.4 Intellectual Property. UMBC represents and warrants that UMBC owns the entire right, title and interest in and to the Licensed Patent
Rights as set forth in this Agreement. UMBC represents and warrants to ACHILLION that it has the right to grant to ACHILLION rights and licenses under the Licensed Patent Rights of the scope set forth in this Agreement. To the knowledge of UMBC,
there is no claim or demand of any person pertaining to, or any proceeding which is pending or, to the knowledge of UMBC, threatened, that challenges UMBC’s ownership of the Licensed Patent Rights or makes any adverse claim of ownership
thereof. 
  
 Section 7.5 No Warranties. EXCEPT AS OTHERWISE
EXPRESSLY SET FORTH HEREIN, ACHILLION, ITS AFFILIATES AND ANY SUBLICENSEES AGREE THAT THE LICENSED INTELLECTUAL PROPERTY IS PROVIDED “AS IS”, AND THAT UMBC MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE PERFORMANCE OF LICENSED
PRODUCTS INCLUDING THEIR SAFETY, EFFECTIVENESS, OR COMMERCIAL VIABILITY. UMBC MAKES NO REPRESENTATION AS TO THE VALIDITY OF THE LICENSED PATENT RIGHTS OR THAT ANY PRACTICE UNDER THE LICENSED INTELLECTUAL PROPERTY SHALL BE FREE OF INFRINGEMENT OF
ANOTHER PATENT OR OTHER PROPRIETARY RIGHT NOT GRANTED TO ACHILLION HEREUNDER. UMBC DISCLAIMS ALL WARRANTIES WITH REGARD TO PRODUCTS LICENSED UNDER THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ALL WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY
AND FITNESS FOR ANY PARTICULAR PURPOSE. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, UMBC ADDITIONALLY DISCLAIMS ALL OBLIGATIONS AND LIABILITIES ON THE PART OF UMBC AND THE INVENTORS OF THE LICENSED INTELLECTUAL PROPERTY, FOR DAMAGES,
INCLUDING, BUT NOT LIMITED TO, DIRECT, INDIRECT, SPECIAL, AND CONSEQUENTIAL DAMAGES, ATTORNEYS’ AND EXPERTS’ FEES, AND COURT 

  

 -16- 

 
COSTS (EVEN IF UMBC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, FEES OR COSTS), ARISING OUT OF OR IN CONNECTION WITH THE MANUFACTURE, USE, OR SALE
OF A PRODUCT LICENSED UNDER THIS AGREEMENT. ACHILLION, AFFILIATES AND SUBLICENSEES ASSUME ALL RESPONSIBILITY AND LIABILITY FOR LOSS OR DAMAGE CAUSED BY A PRODUCT AND SERVICE MANUFACTURED, USED, OR SOLD BY ACHILLION, AFFILIATES AND ITS SUBLICENSEES
WHICH IS A LICENSED PRODUCT AS DEFINED IN THIS AGREEMENT. 
  
 Article VIII 
 Term and Termination 
  
 Section 8.1 Term. This Agreement shall become effective as of the Effective Date, may be terminated as set forth in
this Article VIII, and otherwise remains in effect until the expiration of all Patent Rights that give rise or could in the future give rise to an obligation by ACHILLION to pay royalties as set forth in Article IV. 
  
 Section 8.2 Termination by ACHILLION. ACHILLION may terminate this
Agreement without cause upon sixty (60) days prior written notice to UMBC. 
  
 Section 8.3 Survival of Licenses. Upon the expiration of all Licensed Patent Rights that give rise or could in the future give rise to an obligation by ACHILLION to pay royalties as set forth in Article IV with
respect to a Licensed Product in a country, the license set forth in Section 3.1 shall be deemed to be perpetual and fully paid-up with respect to such Licensed Product in such country. 
  
 Section 8.4 Termination For Material Breach. Upon any material breach
of this Agreement by either Party (in such capacity, the “Breaching Party”), the other Party may terminate this Agreement by providing sixty (60) days’ written notice to the Breaching Party, specifying the material breach. The
termination shall become effective at the end of the sixty (60) day period unless the Breaching Party cures such breach during such sixty (60) day period. 
  
 Section 8.5 Survival. Upon expiration or termination of this Agreement for any reason, nothing in this Agreement
shall be construed to release either Party from any obligations that matured prior to the effective date of expiration or termination; and the following provisions shall expressly survive any such expiration or termination: Article I, Article IV,
Article V, Article VI, Article VIII, Article IX, Article X and Article XI. In addition, any Third Party granted a sublicense under this Agreement by ACHILLION and/or its Affiliates shall become a direct licensee of UMBC subject to UMBC’s
written approval. Such written approval shall not be unreasonably withheld. 
  
 Section 8.6 Liquidation of Inventory; Completion of Orders. ACHILLION, its Affiliates and sublicensees shall have the right for a period of one (1) year following termination of this Agreement for any
reason to sell or dispose of their inventories of Licensed Products, including without limitation partially manufactured Licensed Products, and to complete orders for Licensed Products outstanding on the date of termination; provided
that, notwithstanding 

  

 -17- 

 
such termination, the royalty obligations set forth in Article IV shall continue to apply to such sales and dispositions. 
  
 Article IX 
 Dispute Resolution 
  
 Section 9.1 General. Any controversy, claim or dispute arising out of or relating to this Agreement shall be referred to the Executive Officers to be resolved by negotiation in good faith as soon as is
practicable but in no event later than thirty (30) days after referral. Such resolution, if any, of a referred issue shall be final and binding on the Parties. 
  
 Section 9.2 Failure of The Parties to Resolve Dispute. If the Executive Officers are unable to settle a dispute
within thirty (30) days of referral in accordance with Section 9.1, or if the Executive Officers fail to meet within such thirty (30) days, then the Parties shall attempt to resolve the dispute by mediation. The Parties further agree
that their participation in mediation is a condition precedent to any Party commencing litigation in relation to the dispute. The parties shall appoint a mutually acceptable mediator and shall equally share the costs associated with the
mediator’s compensation and expenses. 
  
 Section 9.3
Exception for Disputes involving HHMI. Notwithstanding the foregoing, no dispute affecting the rights or property of HHMI shall be subject to the dispute resolution provisions set forth in this Article IX. 
  
 Article X 
 Indemnification and Insurance 
  
 Section 10.1 ACHILLION. UMBC and the inventors of the Licensed Intellectual Property will not, under the provisions of this Agreement or otherwise,
have control over the manner in which ACHILLION or its AFFILIATES or its sublicensee or those operating for its account or third parties who purchase Licensed Products from any of the foregoing entities, practice the Licensed Intellectual Property
and Licensed Products, as applicable. ACHILLION shall defend, indemnify, and hold UMBC, The University System of Maryland, the State of Maryland, their present and former trustees, officers, inventors, agents, faculty, employees and students, as
applicable, harmless as against any judgments, fees, expenses, or other costs arising from or incidental to any product liability or other lawsuit, claim, demand or other action brought as a consequence of the practice of the Licensed Intellectual
Property or Licensed Products by any of the foregoing entities, whether or not UMBC or said inventors, either jointly or severally, is named as a party defendant in any such lawsuit. Practice of the Licensed Intellectual Property or Licensed
Products, by an Affiliate or an agent or a sublicensee under this Agreement or a third party on behalf of or for the account of ACHILLION or by a third party who purchases Licensed Products from ACHILLION, an Affiliate, or a sublicensee under this
Agreement, shall be considered ACHILLION’s practice of said inventions for purposes of this Section. Furthermore, HHMI, and its trustees, officers, employees, and agents (collectively, “HHMI Indemnitees”), will be indemnified,
defended by counsel acceptable to HHMI, and held harmless by ACHILLION from and against any claim, liability, cost, expense, damage, deficiency, loss, or obligation, of any kind or nature (including, without limitation, reasonable attorneys’
fees and other costs and expenses of defense) (collectively, “Claims”), based upon, arising out of, or 

  

 -18- 

 
otherwise relating to this Agreement, including without limitation any cause of action relating to product liability. The previous sentence will not apply to
any Claim that is determined with finality by a court of competent jurisdiction to result solely from the gross negligence or willful misconduct of an HHMI Indemnitee. The obligations of ACHILLION to defend, indemnify, and hold harmless, as set
forth in this Paragraph, shall survive the termination of this Agreement. 
  
 Section 10.2 UMBC. UMBC will indemnify and hold ACHILLION harmless from any and all losses, claims, liabilities, damages, costs and expenses (including reasonable attorney’s fees) which arise out of the
acts or omissions of UMBC, its agents, employees or students in connection with this Agreement or by any breach or default in the performance of the obligations of UMBC hereunder. The obligations of UMBC pursuant to this Section 10.2 are
contingent upon the existence of an appropriation to UMBC by the State Legislature for the purpose of satisfying this clause in particular or clauses of this type, in general at the time that the acts or omissions giving rise to UMBC’s
obligations occur. If UMBC has no such appropriation at the time such acts or omissions occur, it will seek an appropriation to satisfy claims pursuant to this Section, but its obligations to pay ACHILLION will be subject to the receipt of such an
appropriation. If such appropriation is not available within 180 days from the time said acts or omissions occur, UMBC’s financial obligations under this section will be deducted from payments owed to UMBC by ACHILLION under Sections 4.2(a),
(b), and (c), provided, however, that the maximum amount that such owed to UMBC may be reduced by such deduction shall be [**] percent ([**]%) of the payment amounts that otherwise would be due. 
  
 Section 10.3 Claims for Indemnification. A person entitled to
indemnification under this Article X (an “Indemnified Party”) shall give prompt written notification to the person from whom indemnification is sought (the “Indemnifying Party”) of the commencement of any action, suit or
proceeding relating to a Third Party claim for which indemnification may be sought (in the case of any HHMI Indemnitee, notice shall be given reasonably promptly following actual receipt of written notice thereof by an officer or attorney of HHMI)
or, if earlier, upon the assertion of any such claim by a Third Party (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a third-party claim as provided in this Section 10.3 shall not relieve
the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such Indemnifying Party is actually damaged as a result of such failure to give notice). Within thirty (30) days after delivery of
such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the defense of such action, suit, proceeding or claim with counsel reasonably satisfactory to the Indemnified Party. If the
Indemnifying Party does not assume control of such defense, the Indemnified Party shall control such defense. The Party not controlling such defense may participate therein at its own expense. The Party controlling such defense shall keep the other
Party advised of the status of such action, suit, proceeding or claim and the defense thereof and shall consider recommendations made by the other Party with respect thereto. The Indemnified Party shall not agree to any settlement of such action,
suit, proceeding or claim without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld. The Indemnifying Party shall not agree to any settlement of such action, suit, proceeding or claim or consent to any
judgment in respect thereof that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability, restriction, or obligation on the Indemnified Party, or would

  

 -19- 

 
include the admission of liability on the part of the Indemnified Party without the prior written consent of the Indemnified Party. 
  
 Section 10.4 Insurance. During the term of this Agreement, from and
after the time ACHILLION or any Affiliate or sublicensee of ACHILLION begins clinical trials of any Licensed Product, ACHILLION shall maintain comprehensive general liability insurance, including products liability insurance, with reputable and
financially secure insurance carriers, or shall provide an explanation of self insurance, in a minimum amount of $2,000,000 per occurrence and $2,000,000 aggregate (inclusive of deductible amounts) as respects personal injury, bodily injury and
property damage arising out of ACHILLION’s Development and Commercialization of Licensed Products. Such insurance shall include UMBC and HHMI as named insured and shall require prior notice to UMBC before cancellation. 
  
 Article XI 
 Miscellaneous Provisions 
  
 Section 11.1 Governing Law. This Agreement shall be construed and the respective rights of the Parties determined (including the validity and applicability of the provision set forth in Section 9.2, and
the conduct of any litigation or alternative means of resolving conflict) according to the substantive laws of the State of Maryland notwithstanding the provisions governing conflict of laws under such Maryland law to the contrary. 
  
 Section 11.2 Submission to Jurisdiction. Each Party submits to the
exclusive jurisdiction of any state or federal court sitting in the State of Maryland. Each Party waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that
might be required of the other Party with respect thereto. EACH PARTY WAIVES THE RIGHT TO A JURY TRIAL IN ANY SUCH ACTION OR PROCEEDING. Each Party may make service on the other Party by sending or delivering a copy of the process to the Party to be
served at the address and in the manner provided for the giving of notices in Section 11.5. Nothing in this Section 11.2, however, shall affect the right of any Party to serve legal process in any other manner permitted by law. 

 
 Section 11.3 Assignment. Neither UMBC nor ACHILLION may assign this
Agreement in whole or in part without the prior written consent of the other, except if such assignment occurs in connection with the sale or transfer of all or substantially all of the business and assets of UMBC, on the one hand, or ACHILLION, on
the other, to which the subject matter of this Agreement pertains. Notwithstanding the foregoing, any Party may assign its rights (but not its obligations) pursuant to this Agreement in whole or in part to an Affiliate of such Party. 
  
 Section 11.4 Entire Agreement; Amendments. This Agreement constitutes
the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all previous arrangements with respect to the subject matter hereof, whether written or oral. Any amendment or modification to this Agreement shall be
made in writing signed by both Parties. 
  

 -20- 

 Section 11.5 Notices. 
  
 Notices to UMBC shall be addressed to: 
  
 The University of Maryland, Baltimore County 
 Office of Technology Development 
 Second Floor, Administration Building 
 1000 Hilltop Circle 
 Baltimore, Maryland
21250 
 Attention: Director 
 Facsimile No.: (410) 455-8750 
  
 Notices to
ACHILLION shall be addressed to: 
  
 Achillion Pharmaceuticals,
Inc. 
 300 George Street 
 New
Haven, Connecticut 06511 
 Attention: Business Development 
 Facsimile No.: (203) 624-7003 
  
 with a copy
to: 
  
 Wilmer Cutler Pickering Hale and Dorr LLP 
 60 State Street 
 Boston, Massachusetts 02109

 Attention: David E. Redlick, Esq. 
 Facsimile No.: (617) 526-5000 
  
 Any Party may change its address
by giving notice to the other Party in the manner herein provided. Any notice required or provided for by the terms of this Agreement shall be in writing and shall be (a) sent by registered or certified mail, return receipt requested, postage
prepaid, (b) sent via a reputable overnight or international express courier service, (c) sent by facsimile transmission, or (d) personally delivered, in each case properly addressed in accordance with the paragraph above. The
effective date of notice shall be the actual date of receipt by the Party receiving the same. 
  
 Section 11.6 Force Majeure. No failure or omission by the Parties hereto in the performance of any obligation of this Agreement shall be deemed a breach of this Agreement or create any liability if the same
shall arise from any cause or causes beyond the control of the Parties, including, but not limited to, the following: acts of God; acts or omissions of any government; any rules, regulations or orders issued by any governmental authority or by any
officer, department, agency or instrumentality thereof; fire; storm; flood; earthquake; accident; war; rebellion; insurrection; riot; and invasion and provided that such failure or omission resulting from one of the above causes is
cured as soon as is practicable after the occurrence of one or more of the above-mentioned causes. The Party claiming force majeure shall notify the other Party with notice of the force majeure event as soon as practicable, but in no event longer
than ten (10) business days after its occurrence, which notice shall reasonably identify such obligations under this Agreement and the extent to which performance thereof will be affected. 

  

 -21- 

 
In such event, the Parties shall meet promptly to determine an equitable solution to the effects of any such event. 
  
 Section 11.7 Public Announcements. Any announcements or similar
publicity with respect to the execution of this Agreement shall be agreed upon by the Parties in advance of such announcement. 
  
 Section 11.8 Independent Contractors. It is understood and agreed that the relationship between the Parties hereunder is that of independent
contractors and that nothing in this Agreement shall be construed as authorization for either UMBC or ACHILLION to act as agent for the other. 
  
 Section 11.9 No Strict Construction. This Agreement has been prepared jointly and shall not be strictly construed against any Party. 
  
 Section 11.10 Headings. The captions or headings of the sections or
other subdivisions hereof are inserted only as a matter of convenience or for reference and shall have no effect on the meaning of the provisions hereof. 
  
 Section 11.11 No Implied Waivers; Rights Cumulative. No failure on the part of UMBC or ACHILLION to exercise, and no delay in exercising, any
right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, shall impair, prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a waiver of any
breach of this Agreement or as an acquiescence therein, nor shall any single or partial exercise of any such right, power, remedy or privilege preclude any other or further exercise thereof or the exercise of any other right, power, remedy or
privilege. 
  
 Section 11.12 Severability. If any provision
hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, then, to the fullest extent permitted by law, (a) all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be
liberally construed in order to carry out the intentions of the Parties as nearly as may be possible and (b) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any
other jurisdiction. To the extent permitted by applicable law, UMBC and ACHILLION hereby waive any provision of law that would render any provision hereof prohibited or unenforceable in any respect. 
  
 Section 11.13 Execution in Counterparts. This Agreement may be
executed in counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, and all of which counterparts, taken together, shall constitute one and the same instrument. 
  
 Section 11.14 Third Party Beneficiaries. HHMI is not a party to this
Agreement and has no liability to any licensee, sublicensee, or user of anything covered by this Agreement, but HHMI is an intended third-party beneficiary of this Agreement and certain of its provisions are for the benefit of HHMI and are
enforceable by HHMI in its own name. Except as otherwise expressly stated in this Section 11.14, no person or entity other than UMBC, ACHILLION and their respective Affiliates and permitted assignees hereunder shall be deemed an intended
beneficiary hereunder or have any right to enforce any obligation of this Agreement. 
  

 -22- 

 Section 11.15 No Consequential Damages. NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT,
INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, OR FOR LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH
DAMAGES. 
  
 IN WITNESS WHEREOF, the Parties have executed this
Agreement as of the date first set forth above. 
  

			
	ACHILLION PHARMACEUTICALS, INC.
		
	By	 	/s/ Kevin Eastwood
	 	 	Kevin Eastwood
	 	 	Senior Director, Business Development

  

			
	THE UNIVERSITY OF MARYLAND, BALTIMORE COUNTY
		
	By	 	/s/ Scott A. Bass
	 	 	Scott A. Bass, Ph.D.
	 	 	Vice Provost for Research

  
 INVENTOR(S)
ACKNOWLEDGEMENT 
  
 The inventor(s) of the intellectual property and/or
patents licensed by this Agreement, as employees of HHMI and/or UMBC, acknowledge by their signature below, that they have read, understood, and agree with the terms of this Agreement. 
  

									
					
	By:	 	/s/ Michael Summers	 	 	 	Date:	 	____________________________
	 	 	Dr. Michael Summers	 	 	 	 	 	 
					
	By:	 	/s/ Chun Tang	 	 	 	Date:	 	____________________________
	 	 	Dr. Chun Tang	 	 	 	 	 	 

  

 -23- 

 Exhibit A 
  

Certain Licensed Patent Rights 
  
 Certain Licensed Patent Rights include: 
  

	1.	United States provisional patent application no. [**]; 

  

	2.	United States provisional patent application no. [**]; and 

  

	3.	United States provisional patent application no. [**]. 

  

 -24-Employment Agreement between the Registrant and Michael Kishbauch

 Exhibit 10.5 
  
 EMPLOYMENT AGREEMENT 
  

THIS EMPLOYMENT AGREEMENT (the “Agreement”), effective as of the 19th day of July 2004, is entered into by Achillion Pharmaceuticals, Inc., a Delaware corporation with its principal place of business at 300 George Street, New
Haven, CT 06511-6624 (the “Company”), and Michael D. Kishbauch., residing at 18 Cherryville Road, Flemington, NJ (the “Employee”). 
  
 WHEREAS, the Company desires to engage the services of the Employee and the Employee desires to be employed by the Company, 
  
 NOW, THEREFORE, in consideration of the employment of the Employee, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee agree as follows: 
  
 1. Term of Employment. The Company hereby agrees to employ the Employee, and the Employee hereby accepts employment with the Company, upon the
terms set forth in this Agreement, for the period commencing on the date hereof (the “Commencement Date”) and ending on December 31,2006 (such period, as it may be extended, the “Employment Period”), unless sooner terminated
in accordance with the provisions of Section 4. This Agreement shall automatically renew for successive one-year periods unless, at least six months prior to the expiration of the applicable Employment Period, either party has notified the
other party that this Agreement shall not so renew. 
  
 2.
Title; Capacity. The Employee shall serve as President and Chief Executive Officer or in such other reasonably comparable position as the Board of Directors (the “Board”) may determine from time to time. The Employee shall be based
at the Company’s headquarters in New Haven, Connecticut, or such place or places in the continental United States as the Board shall determine. The Employee shall be subject to the supervision of, and shall have such authority as is delegated
to the Employee by, the Board. The Employee shall serve as a member of the Board of Directors of the Company for so long as he is serving in the capacity of the Company’s Chief Executive Officer. The Employee hereby accepts such employment and
agrees to undertake the duties and responsibilities inherent in such position and such other duties and responsibilities as the Board shall from time to time reasonably assign to the Employee. The Employee agrees to devote his or her entire business
time, attention and energies to the business and interests of the Company during the Employment Period. The Employee agrees to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein
which may be adopted from time to time by the Company. 
  
 3.
Compensation and Benefits. 
  
 3.1 Salary.
The Company shall pay the Employee, in periodic installments in accordance with the Company’s customary payroll practices, an annual base salary of $300,000 for the period commencing on the Commencement Date. The Salary will be increased to
$320,000 per annum beginning on January 1st of 2005. Such salary shall be subject to increase thereafter as
determined by the Board. 
  

 - 1 - 

 3.2 Bonus. The Employee shall be eligible to receive additional compensation of up
to 50% of the Employee’s then current base salary based upon the Employee’s achievement of certain performance goals mutually agreed upon between the Employee and the Board. However, for the year ending on December 31st, 2004, the Employee will receive a bonus of $150,000. 
  
 3.3 Fringe Benefits. The Employee shall be entitled to participate in all benefit programs that the
Company establishes and makes available to its employees, if any, to the extent that Employee’s position, tenure, salary, age, health and other qualifications make him or her eligible to participate. 
  
 3.4 Reimbursement of Expenses. The Company
shall reimburse the Employee for all reasonable travel, entertainment and other expenses incurred or paid by the Employee in connection with, or related to, the performance of his or her duties, responsibilities or services under this Agreement, in
accordance with policies and procedures, and subject to limitations, adopted by the Company from time to time. 
  
 3.5 Equity. Upon the approval of the Board of Directors of the Company, the Employee shall be granted an incentive stock option for
the purchase of 2,165,017 shares of the Company’s common stock, at a price per share equal to the fair market value at the time of Board of Director approval. These shares shall vest over four years, with 25% of the shares subject to the grant
vesting one year from date of employment and the remainder vesting in equal quarterly installments for the three-year period thereafter. 
  
 3.6 Signing Bonus. The Employee shall be entitled to receive a signing bonus of $50,000 less applicable taxes. The bonus will be
disbursed to Employee in two equal installments of $25,000.00 in accordance with the Company’s payroll schedule after the Commencement Date. 
  
 3.7 Withholding. All salary, bonus and other compensation payable to the Employee shall be subject to applicable withholding taxes.

  
 4. Termination of Employment Period. The employment of
the Employee by the Company pursuant to this Agreement shall terminate upon the occurrence of any of the following: 
  
 4.1 Expiration of the Employment Period; 
  
 4.2 At the election of the Company, for Cause (as defined below), immediately upon, written notice by the Company to the Employee, which
notice shall identify the Cause upon which the termination is based; 
  
 4.3 At the election of the Employee, for Good Reason (as defined below) within twelve months following the consummation of a Corporate Transaction, (as defined below), upon not less than two weeks’ prior written
notice of termination, which notice shall identify the Good Reason upon which the termination is based; 
  
 4.4 Upon the death or disability (as defined below) of the Employee; 
  

 - 2 - 

 4.5 At the election of the Company, upon not less than fifteen, (15) days’
prior written notice of termination; 
  
 4.6 At
the election of the Employee, upon not less than fifteen (15) days’ prior written notice of termination; or 
  
 4.7 At the election of the Employee, in the event the Employee is required by the Company to relocate such that such Employee’s daily
commute shall exceed 60 miles without his written consent. 
  
 5.
Effect of Termination. 
  
 5.1 At-Will
Employment. If the Employment Period expires pursuant to Section 1 hereof, then, unless the Company notifies the Employee to the contrary, the Employee shall continue his or her employment on an at-will basis following the expiration of the
Employment Period. Such at-will employment relationship may be terminated by either party at any time and shall not be governed by the terms of this Agreement (except for Section 6 hereof). 
  
 5.2 Payments Upon Termination. 
  
 (a) In the event the Employee’s employment is
terminated pursuant to Section 4.1, Section 4,2, Section 4.4 or Section 4.6, the Company shall pay to the Employee the compensation and benefits otherwise payable to him or her under Sections 3.1 and 3.4 through the last day of
his or her actual employment by the Company. 
  
 (b) In the event the Employee’s employment is terminated by the Employee pursuant to Section 4.3 or Section 4.7 or by the Company pursuant to Section 4,5, the Company shall continue to pay to the Employee his or her
salary as in effect on the date of termination until the earlier of (i) the date that is eighteen (18) months after the date of termination or (ii) the date upon which the Employee commences full-time employment with another Company.
However, in no case shall the total severance period be less than twelve (12) months. 
  
 5.3 Survival. The provisions of Sections 6, 8 and 10 shall survive the termination of this Agreement 
  
 5.4 Effect of Termination, on Equity. In the event
the Employee’s employment with the Company is terminated (i) by the Employee pursuant to Section 4.3 or 4.7 or (ii) within 12 months following a Corporate Transaction, by the Company pursuant to Section 4.5, then all of the
shares of common stock underlying stock options shall immediately vest and become exercisable upon the date of the Employee’s termination. 
  
 5.5 Release. The payment to the Employee of the amount payable under Section 5.2(b) shall (i) be contingent upon the
Employee’s entering into a binding release prepared by counsel to the Company and reasonably acceptable to the Company and (ii) constitute the sole remedy of the Employee in the event of a termination of the Employee’s employment in
the circumstances set forth in Section 5.2(b). 
  

 - 3 - 

 6. Termination Obligations. 
  
 6.1 Return of Company’s Property. Employee hereby acknowledges and agrees that all personal
property, including, without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints and other documents or materials, or copies thereof, and equipment furnished to or prepared by Employee in the course of or incident
to Employee’s employment, belong to Company and shall be promptly returned to Company upon termination of Employee’s employment. Following termination, Employee will not retain any written or other tangible material containing any
proprietary information of information pertaining to the Company’s proprietary information. 
  
 6.2 Cooperation in Pending Work. Following any termination of Employee’s employment, Employee shall fully cooperate with the
Company in all matters relating to the winding up of pending work on behalf of the Company and the orderly transfer of work to other employees of the Company. Employee shall also cooperate in the defense of any action brought by any third party
against the Company that relates in any way to Employee’s acts or omissions while employed by the Company. 
  
 7. Effect of Corporate Transaction. In the event the Company consummates a Corporate Transaction that is not a Private Transaction (as defined
below), then an additional 25% of the original number of shares of common stock subject to stock option agreements shall immediately vest and become exercisable upon the date of the consummation of such transaction. The provisions of
Section 5.4 shall also apply to any such Corporate Transaction. 
  
 8. Non-Competition and Non-Solicitation Agreement. The Employee shall execute, simultaneously with the execution of this Agreement, the Non-Competition and Non-Solicitation Agreement attached hereto as Exhibit A. 

 
 9. Definitions. For purposes of this Agreement, the following terms
shall have the following meanings: 
  
 9.1
“Cause” shall mean (a) a good faith finding by the Company that (i) the Employee has failed to substantially perform his or her reasonably assigned duties for the Company, or (ii) the Employee has engaged in
dishonesty, gross negligence or misconduct, which dishonesty, gross negligence or misconduct has had a material adverse effect on the Company, (b) the conviction of the Employee of, or the entry of a pleading of guilty or nolo contendere by the
Employee to, any crime involving moral turpitude or any felony or (c) breach by the Employee of any material provision of this Agreement, any invention and non-disclosure agreement, non-competition and non-solicitation agreement or other
agreement with the Company, which breach is not cured within thirty days written notice thereof. 
  
 9.2 “Corporate Transaction” shall mean the sale of all or substantially all of the capital stock (other than the sale of
capital stock to one or more venture capitalists or other institutional investors pursuant to an equity financing (including a debt financing that, is convertible into equity) of the Company approved by a majority of the Board of Directors of the
Company), assets or business of the Company, by merger, consolidation, sale of assets or Otherwise (other than a merger or consolidation an which all or substantially all of the individuals and entities who were beneficial owners of the Common Stock
immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the outstanding 

  

 - 4 - 

 
securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring corporation in such transaction). 
  
 9.3 “Disability” shall mean the inability
of the Employee, due to a physical or mental disability, for a period of 90 days, whether or not consecutive, during any 360-day period to perform the services contemplated under this Agreement, with or without reasonable accommodation, as that term
is defined under state or federal law. A determination of disability shall be made by a physician satisfactory to both the Employee and the Company, provided that if the Employee and the Company do not agree on a physician, the
Employee and the Company shall each select a physician and these two together shall select a third physician, whose determination as to disability shall be binding on all parties. 
  
 9.4 “Good Reason” shall exist upon (i) mutual written agreement by the Employee and
the Board of Directors of the Company that Good Reason exists; (ii) the Employee being required by the Company to relocate such that such Employee’s daily commute shall exceed 60 miles without the written consent of the Employee;
(iii) any material breach by the Company or any successor thereto of any agreement to which the Employee and the Company are parties, which breach is not cured within thirty days of written notice thereof; or (iv) demotion of the Employee
to a position with responsibilities substantially less than such Employee’s current position without the prior consent of the Employee. 
  
 9.5 “Private Transaction” shall mean any Corporate Transaction where the consideration received or retained by the
holders of the then outstanding capital stock of the Company does not consist of (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act of 1933, as amended, or any successor statute (the
“Securities Act”) and/or (iii) securities for which the Company or any other issuer thereof has agreed to file a registration statement within ninety (90) days of completion of the transaction for resale to the public pursuant to
the Securities Act. 
  
 10. Miscellaneous. 
  
 10.1 Entire Agreement; Modification. This Agreement
constitutes the entire Agreement between the parties hereto with regard to the subject matter hereof, superseding all prior understandings and agreements, whether written or oral, including the Original Agreement. The parties hereby agree that as of
the date hereof, the Original Agreement is of no further force or effect and the Company shall have no obligations to the Employee under such Original Agreement. The Employee agrees that any change or changes in his duties, salary or compensation
after the signing of this Agreement shall not affect the validity or scope of this Agreement 
  
 10.2 Notices. Any notices delivered under this Agreement shall be deemed duly delivered three business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth
in the introductory paragraph hereto. Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner set forth, in this Section 10.2. 
  

 - 5 - 

 10.3 Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plurals and vice versa. 
  
 10.4 Amendment. This Agreement may be amended or modified only by a written instrument executed by
both the Company and the Employee and approved by a majority of the members of the Board of Directors of the Company. 
  
 10.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut
(without reference to the conflicts of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of Connecticut (or, if
appropriate, a federal court located within Connecticut), and the Company and the Employee each consents to the jurisdiction of such a court. The Company and the Employee each hereby irrevocably waive any right to a trial by jury in any action, suit
or other legal proceeding arising under or relating to any provision of this Agreement. 
  
 10.6 Successor and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective
successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business, provided, however, that the obligations of the Employee are personal and shall not
be assigned by him or her. 
  
 10.7
Waivers. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any other occasion. 
  
 10.8 Captions. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or
affect the scope or substance of any section of this Agreement. 
  
 10.9 Severability. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected
or impaired thereby. 
  
 10.10 Employee’s
Acknowledgments. The Employee acknowledges that he or she: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Employee’s own choice or
has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Hale and
Dorr LLP is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for the Employee. 
  

[Remainder of page is intentionally left blank] 
  

 - 6 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth
above. 
  

									
	 	 	 	 	 ACHILLION PHARMACEUTICALS, INC.

					
	 	 	 	 	 	 	By:	 	/s/
	 	 	 	 	 	 	 Name:
	 	Marios Fotiadis
	 	 	 	 	 	 	 Title:
	 	CEO and Director
			
	 	 	 	 	 EMPLOYEE:

			
	 	 	 	 	/s/
	 	 	 	 	 	 	 Name:
	 	Michael D. Kishbauch

  

 - 7 - 

 NONCOMPETITION AGREEMENT 
  

					
	Kishbauch	  	Michael	  	D.
	Employee’s Last Name	  	First Name	  	Middle Initial

  
 I, the undersigned,
recognize that in my position with the Company I will be performing a highly responsible role in a very competitive industry. Because of the injury that might accrue to the Company through my association with a competitor of the Company, combined
with my privileged access to the Company’s proprietary information, I understand that it is important that the Company protect itself. I, further, recognize that execution of this Agreement is an express condition of my employment. 

 
 In consideration of my employment, continued employment, promotion or
increase in compensation by the Company, I hereby agree as follows: 
  
 1. Definition. For the purposes of this Agreement, the “Company” means and includes Achillion Pharmaceuticals, Inc. and all of its existing, past or future parents, subsidiaries and affiliates.

  
 2. Best Efforts; Reasonableness of
Restrictions. 
  
 (a) During the period of my
employment with the Company, I shall devote my full time and best efforts to the business of the Company and I shall neither pursue any business opportunity outside the Company nor take any position with any organization other than the Company
without the approval of a majority of the disinterested members of the Company’s Board of Directors. 
  
 (b) I acknowledge and agree that (i) by virtue of my acquiring knowledge of the Company’s valuable trade secrets and
confidential information concerning the names, specialized needs, concerns, and characteristics of the Company’s customers and other aspects of the Company’s sales, marketing, pricing, and promotional activities learned or developed in the
course of my employment at the Company, and (ii) in recognition of the worldwide market for the Company’s services and technology, the restrictions contained in Sections 3 and 4 hereof are reasonable in all respects to protect the
Company’s investment in my training and development, to protect the Company from unfair competition, and to protect the good will and other business interests of the Company. 
  
 3. Covenant Not to Compete. 
  
 (a) I shall not during my employment with the Company and for a period of one year thereafter directly or
indirectly enter into, participate in or engage in a business or the solicitation of any business which is, directly or indirectly, in competition or proposes to be in competition with the business of the Company (which as of the date hereof is the
discovery, development and commercialization of small molecule drugs that combat resistance in infectious diseases, particularly those caused by hepatitis B virus, hepatitis C virus or HIV, including research and development relating to zinc finger
drug development technology and elvucitabine, as an individual on my own account, as a 

  

 Page 1 of 5 

 
stockholder, principal, partner or joint venturer, as the owner of an interest in, or as a director or officer of, any business or entity, as an employee,
agent, salesman, contractor or consultant of any person, business or entity, or otherwise, except that nothing contained herein will preclude me from purchasing or owning securities of any such business or entity if such securities are publicly
traded and my holdings thereof do not exceed one percent (1%) of the issued and outstanding securities of any class of securities of such business or entity. Notwithstanding the foregoing and any other provision of this Agreement, Employee will
not be restrained following his employment with the Company from participating in or engaging in a business or the solicitation of any business as an individual, employee, consultant, stockholder, principal, partner or joint venturer, owner,
director, officer of any business or entity so long as employee does not participate or engage in activities related to discovery, development and commercialization of small molecule drugs that combat resistance in infectious diseases, particularly
those caused by hepatitis B virus, hepatitis C virus or HIV, including research and development relating to zinc finger drug development technology and elvucitabine. 
  
 (b) I will not, at any time during or after the termination of my employment with the Company, interfere or
attempt to interfere with, the relationship of the Company with any person or entity which at any time during my employment with the Company was an employee, licensee, sales agent or sales representative (or employee thereof), or customer, potential
customer or vendor of, or supplier or licensor to, or in the habit of dealing with, the Company, as an individual on my own account, as a partner or joint venturer, as the owner of an interest in, or as a director or officer of, any entity, as an
employee, agent, salesman, contractor or consultant of any person or entity, or otherwise. 
  
 4. Covenant Not to Solicit. 
  
 (a) I will not during my employment with the Company and for a period of one year thereafter solicit, divert or appropriate, or attempt to
solicit, divert or appropriate, the business of any customer or potential customer of the Company as an individual on my own account, as a stockholder, principal, partner or joint venturer, as the owner of an interest in, or as a director or officer
of, any entity, as an employee, agent, salesman, contractor or consultant of any person or entity, or otherwise. 
  
 (b) I will not during my employment with the Company and for a period of one year thereafter employ or in any manner solicit, induce or
attempt to solicit or induce any employee, consultant, licensee, sales agent or sales representative (or any employee thereof) of, or any vendor, supplier or licensor to, the Company, or any such person and/or entity whose employment or association
with the Company has terminated within six (6) months prior to or after my termination with the Company, to leave the Company’s employ, terminate his or its association with the Company, or otherwise interfere with the relationship of the
Company with any such person or entity, whether for my own account or the account or the account of any other person or entity. 
  

 Page 2 of 5 

 5. Severability and Interpretation. I agree that each provision, subpart and
clause herein shall be treated as separate and independent clauses. In the event that any provision, subpart and/or clause of this Agreement is held invalid by a court of competent jurisdiction, the remaining provisions shall nonetheless be
enforceable according to their terms. Further, in the event that any provision, subpart and/or clause is held to be overbroad as written, such provision, subpart and/or clause shall be deemed amended to narrow its application to the extent necessary
to make the provision enforceable according to applicable law and enforced as amended. 
  
 6. Waiver. The Company’s waiver or failure to enforce the terms of this Agreement or any similar agreement in one instance
shall not constitute a waiver of its rights hereunder with respect to other violations of this or any other agreement. In addition, any amendment to or modification of this Agreement or any waiver of any provision hereof must be in writing and
signed by the Company. 
  
 7. Acquiescence in
Injunction. I understand that if I violate any provision of this Agreement the Company will be irreparably harmful and will have no adequate remedy at law. The Company shall have the right, in addition to any other rights it may have, to obtain
in any court of competent jurisdiction injunctive relief to restrain any breach or threatened breach of, or otherwise to specifically enforce, this Agreement. I hereby agree that if I act in violation of any provision hereof, the number of days that
I am in such violation will be added to the one year period specified in Sections 3 and 4 hereof. 
  
 8. No Conflicting Agreements: Disclosure to Future Employers. I represent and warrant that I have not previously assumed any
obligations inconsistent with those of this Agreement. I further represent and warrant that I am in compliance with, and my employment by the Company will not result in any violation of, any obligations previously assumed by me to any third party
with respect to non-competition. I have not entered into, and I will not enter into, any agreement either written or oral in conflict herewith. I will provide, and the Company, in its discretion, may similarly provide, a copy of the covenants
contained in this Agreement to any business or enterprise which I may directly or indirectly own, manage, operate, finance, join, control or in which I may participate in the ownership, management, operation, financing, or control, or with which I
may be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise. 
  
 9. Governing Law. This Agreement and any disputes arising under or in connection with it shall be governed by the laws of the State
of Connecticut, without giving effect to the principles of conflict of laws of such state. I hereby submit for the sole purpose of this Agreement and any dispute arising under or in connection with it to the jurisdiction of the courts located in the
State of Connecticut and any courts of appeal therefrom, and hereby waive any objection (on the grounds of lack of jurisdiction or forum non conveniens or otherwise) to the exercise of such jurisdiction over me by any such
courts. 
  
 10. Notice. Any notice which
the Company is required or may desire to give to me shall be given to me by personal delivery or registered or certified mail, return receipt requested, addressed to me at the address of record with the Company, or at such other place as I may from
time to time designate in writing. Any notice which I am required or may desire to 

  

 Page 3 of 5 

 
give to the Company hereunder shall be given by personal delivery or by registered or certified mail, return receipt requested, addressed to the Company at
its principal office, or at such other office as the Company may from time to time designate in writing. The date of personal delivery or the dates of mailing any such notice shall be deemed to be the date of delivery thereof. 
  
 11. Complete Agreement; Amendments: Prior Agreements:
Employment-at-Will. The foregoing is the entire agreement of the parties with respect to the subject matter hereof and may not be amended, supplemented, canceled or discharged except by written instrument executed by both parties hereto. This
Agreement supersedes any and all prior agreements between the Company and me with respect to the matters covered hereby; provided, however, that in the event of conflict between a provision of this Agreement and a provision of the Nondisclosure and
Assignment of Inventions Agreement, dated as of the date hereof, by and between the Company and me, the provision most favorable to the Company shall govern. Nothing herein is intended to alter my at-will employment. The Company and I understand and
agree that my employment at the Company is at-will and is not for any specified term and that either the Company or I may terminate the employment relationship with or without cause at any time, and that Sections 3 and 4 of this Agreement shall
survive any such termination. 
  
 12.
Miscellaneous. I agree that the provisions of this Agreement shall be binding on my heirs, assigns, executors, administrators and other legal representatives, and may be transferred by the Company to its successors and assigns. This Agreement
supersedes all previous agreements, written or oral, relating to the above subject matter, except for the Nondisclosure and Assignment of Inventions Agreement between me and the Company, which shall remain in full force and effect in accordance with
its respective terms. 
  
 13. Survival.
This Agreement shall be effective as of the date entered below. My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination and shall be binding upon my heirs, executors,
administrators and legal representatives. 
  
 14.
Assignment. The Company shall have the right to assign this Agreement to its successors and assigns, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns. I will not assign
this Agreement. 
  
 15. WAIVER OF JURY
TRIAL. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT WILL BE RESOLVED BY A JUDGE ALONE AND EACH OF THE COMPANY AND I WAIVE ANY RIGHT TO A JURY TRIAL THEREOF. 
  

 Page 4 of 5 

 The foregoing Noncompetition Agreement is hereby accepted and agreed to by the parties hereto.

  

									
	 ACCEPTED AND AGREED TO:
	 	 	 	 ACCEPTED AND AGREED TO:

			
	 ACHILLION PHARMACEUTICALS, INC.
	 	 	 	 Michael D. Kishbauch

				
	By:	 	 	 	 	 	/s/
	 	 	Marios Fotiadis	 	 	 	 	 	Michael D. Kishbauch
	 	 	Chief Executive Officer	 	 	 	 	 	 
			
	 Date: __________________
	 	 	 	 Date: __________________

  

 Page 5 of 5 

 NONDISCLOSURE AND ASSIGNMENT OF INVENTIONS AGREEMENT 
  

					
	Kishbauch	  	Michael	  	D.
	Employee’s Last Name	  	First Name	  	Middle Initial

  
 I, the undersigned,
recognize the importance of protecting the Company’s rights to its ideas, inventions, discoveries, trade secrets, confidential information and good will and, further, recognize that execution of this Agreement is an express condition of my
employment. This Agreement is intended to formalize in writing certain understandings and procedures which have been in effect since the time the undersigned was initially employed by the Company. 
  
 In consideration of my employment, continued employment, promotion or
increase in compensation by the Company, I hereby confirm my understanding and agreement, as follows: 
  
 1. Definition. For the purposes of this Agreement, the “Company” means and includes Achillion Pharmaceuticals, Inc. and all of its
existing, past or future parents, subsidiaries, affiliates and assigns. 
  
 2. Covenant Not to Disclose. 
  
 (a) I agree that I will not, at any time during or after the termination of my employment with the Company, regardless of the reason for my termination, communicate, disclose or otherwise make available to any person
or entity (other than the Company), or use for my account (except in the course of my employment with the Company) or for the benefit of any other person or entity, directly or indirectly, unless authorized by the Company in writing, any information
or materials proprietary to the Company that relates to the Company’s business, organization, finances or affairs which is of a confidential nature, including, but not limited to, trade secrets, technical, scientific or other secrets,
information or materials relating to existing or proposed pharmaceutical products (in all and various stages of development), business plans, suppliers, licensors, licensees, investors, affiliates, inventions, designs, methods, techniques, systems,
processes, data, software programs, software code, “know-how”, marketing information and materials, marketing and development plans, customer lists and other customer information (including current prospects), price lists, pricing
policies, personnel information, training methods and materials and financial information (collectively, “Proprietary Information”). Proprietary Information includes any and all such information and materials, whether or not obtained by me
with the knowledge and permission of the Company, whether or not developed, devised or otherwise created in whole or in part by my efforts, and whether or not a matter of public knowledge unless as a result of authorized disclosure. I further agree
that I will retain such knowledge and information which I acquire and develop during my employment respecting such Proprietary Information in trust for the sole and exclusive benefit of the Company and its successors and assigns, and shall not use
or attempt to use any Proprietary Information except as may be required in the ordinary course of performing my duties as a Company employee, nor shall I use any proprietary information in any manner that may injure or cause loss or may be
calculated to injure or cause loss to the Company, whether directly or indirectly. 
  

 Page 1 of 6 

 (b) The provisions of this Paragraph shall apply to Proprietary Information obtained by
the Company from any third party under an agreement including restrictions on disclosure known to me. 
  
 3. Inventions. 
  
 (a) If at any time or times during my employment, I shall (either alone or with others) make, conceive, create, discover, invent or reduce
to practice any Development that (i) relates to the business of the Company or any customer of or supplier to the Company or any of the products or services being developed, manufactured or sold by the Company or which may be used in relation
therewith; or (ii) results from tasks assigned to me by the Company; or (iii) results from the use of premises or personal property (whether tangible or intangible) owned, leased or contracted for by the Company, then all such Developments
and the benefits thereof are and shall immediately become the sole and absolute property of the Company and its assigns, as “works made for hire” pursuant to the United States Copyright Act (17 U.S.C. Section 101.) or otherwise. The
term “Development” shall mean any invention, idea, creation, modification, discovery, design, development, improvement, biological or other process, cell line, lab notebook, software program, work of authorship, documentation, formula,
data, technique, know-how, trade secret or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable under copyright, trademark or similar statutes or subject to analogous protection). I shall promptly
disclose to the Company (or any persons designated by it) each, such Development. I hereby assign all rights (including, but not limited to, rights to inventions, patentable subject matter, copyrights and trademarks), title and interest that I may
have or may acquire in the Developments and all benefits and/or rights resulting therefrom to the Company and its assigns without further compensation and shall communicate, without cost or delay, and without disclosing to others the same, all
available information relating thereto (with all necessary plans and models) to the Company. 
  
 (b) I agree that I will promptly disclose to the Company all ideas, inventions, discoveries and improvements (including, but not limited
to, those which are or may be patentable or subject to copyright protection) which I make, originate, conceive or reduce to practice during my employment with the Company and which relate directly or indirectly to the business of the Company or to
work or investigations done for the Company (collectively, “Inventions”). All Inventions shall be the sole and exclusive property of the Company, and I hereby assign to the Company all rights therein, except as may otherwise be
specifically agreed by the Company in writing. I further represent that, to the best of my knowledge and belief, none of the Developments will violate or infringe upon any right, patent, copyright, trademark or right of privacy, or constitute libel
or slander against or violate any other rights of any person, firm or corporation, and that I will use my best efforts to prevent any such violation. 
  
 (c) In order that the Company may protect its rights in the Inventions, I will make adequate written records of all Inventions, which
records shall be the Company’s property; and, both during and after termination of my employment with the Company, I will, without charge to the Company but at its request and expense, sign all papers, 

  

 Page 2 of 6 

 
including forms of assignment, and render any other proper assistance necessary or desirable to transfer or record the transfer to the Company of my entire
right, title and interest in and to the Inventions, and for the Company to obtain, maintain and enforce patents, copyrights, trade secrets or other protections thereon or with respect thereto (as the case may be) throughout the world. 
  
 (d) I represent that the Developments identified in the
Appendix, if any, attached hereto comprise all the Developments that I have made or conceived prior to my employment by the Company, which Developments are excluded from this Agreement. I understand that it is only necessary to list the title of
such Developments and the purpose thereof but not details of the Development itself. IF THERE ANY SUCH DEVELOPMENTS TO BE EXCLUDED, THE UNDERSIGNED SHOULD INITIAL HERE, OTHERWISE IT WILL BE DEEMED THAT THERE ARE NO SUCH EXCLUSIONS. __________

  
 (e) The obligations contained in this
Paragraph 3 shall continue beyond the termination of my employment with respect to Inventions (whether patentable or copyrightable or not) conceived or made by me during the period of my employment. 
  
 (f) With respect to any Developments, and work of any
similar nature (from any source), whenever created, which I have not prepared or originated in the performance of my employment, but which I provide to the Company or incorporate in any Company product or system, I hereby grant to the Company a
royalty-free, fully paid-up, non-exclusive, perpetual and irrevocable license throughout the world to use, modify, create derivative works from, disclose, publish, translate, reproduce, deliver, perform, dispose of, and to authorize others so to do,
all such Developments. I will not include in any Developments I deliver to the Company or use on its behalf, without the prior written approval of the Company, any material which is or will be patented, copyrighted or trademarked by me or others
unless I provide the Company with the written permission of the holder of any patent, copyright or trademark owner for the Company to use such material in a manner consistent with then- current Company policy. 
  
 (g) By this Agreement, I irrevocably constitute and appoint
the Company as my agent and attorney-in-fact for the purpose of executing, in my name and on my behalf, such instruments or other documents as may be necessary to transfer, confirm and perfect in the Company the rights I have granted to the Company
in this Paragraph 3 and to do all other lawfully permitted acts to further the prosecution and issuance of patent, copyright or trademark registrations or any other legal protection thereon with the same legal force and effect as if executed by me.

  
 4. Covenant to Report: Documents and Tangible Property.
I will promptly communicate and disclose to the Company all observations made and data obtained by me in the course of my employment by the Company and shall not make, use or permit to be used (at any time) any Company Property otherwise than for
the benefit of the Company. “Company Property” shall include all written materials, records, documents and other tangible property made by me or coming into my possession during my employment concerning the business or affairs of the
Company, including, but not limited to, any Proprietary Information and/or any 

  

 Page 3 of 6 

 
Inventions which are conceived or generated by me. All Company Property shall be the sole and exclusive property of the Company and, upon the termination of
my employment (or at such earlier time as the Company may request me to do so), I will promptly deliver the same, in my possession, custody or control, to the Company or to any party designated by it, without retaining any copies, notes or excerpts
thereof. I agree to render to the Company, or to any party designated by it, such reports of the activities undertaken by me or conducted under my direction during my employment as the Company may request. 
  
 5. Severability and Interpretation. In the event that any provision of
this Agreement is held invalid by a court of competent jurisdiction, the remaining provisions shall nonetheless be enforceable according to their terms. Further, in the event that any provision is held to be overbroad as written, such provision
shall, be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and enforced as amended. 
  
 6. Waiver. The Company’s waiver or failure to enforce the terms of this Agreement or any similar agreement in
one instance shall not constitute a waiver of its rights hereunder with respect to other violations of this or any other agreement. In addition, any amendment to or modification of this Agreement or any waiver of any provision hereof must be in
writing and signed by the Company. 
  
 7. Notices. Any
notice which the Company is required or may desire to give to me shall be given to me by personal delivery or registered or certified mail, return receipt requested, addressed to me at the address of record with the Company, or at such other place
as I may from time to time designate in writing. Any notice which I am .required or may desire to give to the Company hereunder shall be given by personal delivery or by registered or certified mail, return, receipt requested, addressed to the
Company at its principal office, or at such other office as the Company may from time to time designate in writing. The date of personal delivery or the dates of mailing any such notice shall be deemed to be the date of delivery thereof. 

 
 8. Acquiescence in Injunction. I understand that if I violate any
provision of this Agreement the Company will be irreparably harmed and will have no adequate remedy at law. The Company shall have the right, in addition to any other rights it may have, to obtain in any court of competent jurisdiction injunctive
relief to restrain any breach or threatened breach of, or otherwise to specifically enforce, this Agreement. 
  
 9. No Conflicting Agreements; Disclosure to Future Employers. I represent and warrant to the Company that I am not subject to any restrictions on
my ability to grant to the Company the rights referred to in this Agreement, and that I have not previously assumed any obligations inconsistent with those of this Agreement. I further represent, warrant and covenant to the Company that I am in
compliance and shall remain in compliance with any and all obligations previously assumed by me to any third party with respect to nondisclosure and assignment of inventions. I have not entered into, and I will not enter into, any agreement either
written or oral in conflict herewith. I will provide, and the Company, in its discretion, may similarly provide, a copy of the covenants contained in this Agreement to any business or enterprise which I may directly or indirectly own, manage,
operate, finance, join, control or in which I may participate in the ownership, management, operation, financing, or control, or with 

  

 Page 4 of 6 

 
which I may be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise. 
  
 10. Governing Law. This Agreement and any disputes arising under or in
connection with it shall be governed by the laws of the State of Connecticut, without giving effect to the principles of conflict of laws of such state. I hereby submit for the sole purpose of this Agreement and any dispute arising under or in
connection with it to the jurisdiction of the courts located in the State of Connecticut and any courts of appeal therefrom, and hereby waive any objection (on the grounds of lack of jurisdiction or forum non conveniens or
otherwise) to the exercise of such jurisdiction over me by any such courts. 
  
 11. Survival. This Agreement shall be effective as of the date entered below. My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination and
shall be binding upon my heirs, executors, administrators and legal representatives. 
  
 12. Assignment. The Company shall have the right to assign this Agreement to its successors and assigns, and all covenants and agreements hereunder shall inure to the benefit of and, be enforceable by said
successors or assigns. I will not assign this Agreement. 
  
 13.
WAIVER OF JURY TRIAL. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT WILL BE RESOLVED BY A JUDGE ALONE AND EACH OF THE COMPANY AND I WAIVE ANY RIGHT TO A JURY TRIAL THEREOF. 
  
 The foregoing Nondisclosure and Assignment of Inventions Agreement is hereby
accepted and agreed to by the parties hereto. 
  

									
	 ACCEPTED AND AGREED TO:
	 	 	 	 ACCEPTED AND AGREED TO:

			
	 ACHILLION PHARMACEUTICALS, INC.
	 	 	 	 Michael D. Kishbauch

				
	By:	 	 	 	 	 	/s/
	 	 	Marios Fotiadis	 	 	 	 	 	Michael D. Kishbauch
	 	 	Chief Executive Officer	 	 	 	 	 	 
					
	 Date:
	 	 ____________________
	 	 	 	 Date:
	 	 6-25-04

  

 Page 5 of 6 

 APPENDIX - TITLE/PURPOSE OF DEVELOPMENTS 
  
 The following is a complete list of all Developments and the purpose of those Developments: 
  

					
	 	 	 _________
	  	No Developments
			
	 	 	 _________
	  	See Below

  
 Developments and Purpose: 
  
 _________________________________________________________________ 
  
 _________________________________________________________________ 
  
 _________________________________________________________________ 
  
 _________________________________________________________________ 
  
 _________________________________________________________________ 
  
 _________________________________________________________________ 
  

 Page 6 of 6

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