Document:

exv10w4

Exhibit 10.4

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

MASTER SERVICES AGREEMENT

This Master Services Agreement, dated as of March 31, 2009 (the “Effective Date”), is between
Cadila Pharmaceuticals Limited, a company incorporated under the laws of India having its
registered office at “Cadila Corporate Campus, Sarkhej — Dholka Road, Bhat, Ahmedabad-382210,
Gujarat, India (“Cadila”), and Novavax, Inc., a Delaware corporation having its principal place of
business at 9920 Belward Campus Drive, Rockville, Maryland, 20850, United States (“Novavax”).

1. Description of Services.

     1.1 General. This Master Services Agreement contemplates that Novavax may request
various services from Cadila from time to time in the areas of biologics research, preclinical
development, clinical development, process development and manufacturing scale up and general
manufacturing related services in India, and that the provision of such periodic services by Cadila
shall be governed by this Agreement.

     1.2 Project Plans.

Novavax shall request services from Cadila by means of one or more written Services Requests, which
shall set forth a description of the desired services, timeline for completion, and any other
information that Novavax believes is relevant to the requested services. Novavax and Cadila will
confer as necessary for Cadila to understand the details of the requested services. Cadila shall
promptly respond to Novavax with a Project Estimate that sets forth an estimated cost and timeline
for the requested services. In March 2009 Novavax visited the Cadila Campus in Ahmedabad to
conduct due diligence of Cadila personnel and facilities, and understand Cadila’s capabilities of
performing the desired services at the required level of performance and Novavax was generally
satisfied with Cadila’s capabilities to perform the desired services. Novavax may request minor
changes in procedures, equipment or similar to enhance the performance capabilities of a project by
Cadila from time to time. Novavax may also consider other service providers for the desired
services. Novavax will remit the initial Services Request within sixty (60) days of execution of
this Agreement. The Project Plans as may be approved by the parties will be attached hereto as
Exhibit A (Project Plans) forming part of this Agreement within sixty (60) days of Cadila’s receipt
of the initial Service Request.

Novavax shall issue Services Requests to Cadila and Cadila shall then promptly prepare a detailed
draft Project Plan that describes the services, cost and payment schedule based on fully loaded
actual costs (including escalated costs, if any) plus [* * *], timelines, primary contacts,
scheduled teleconferences and meetings, and deliverables. Novavax and Cadila will then work
together to finalize the Project Plan for approval and final agreement by both the parties. In
addition, if the services require the use of tangible research materials (e.g., biological or
chemical materials) provided by Novavax, the Project Plan shall contain a description of such
materials, delivery arrangements, timelines, and special treatment instructions (if any). Each
Project Plan shall become effective after execution by both parties. The services described in
each executed

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

Project Plan shall be defined as “Services” under this Agreement. Each Project Plan shall
constitute an addendum to this Agreement, and shall therefore be governed by and incorporated into
the terms of this Agreement.

Cadila will assign a qualified Project Manager to each Project Plan who shall be named in the
Project Plan. The Project Manager will coordinate performance of the Project Plan and all
communication between Cadila and Novavax regarding the Project Plan.

2. Performance by Cadila.

Cadila shall diligently perform the Services according to the applicable Project Plan using
commercially reasonable efforts. Novavax shall timely provide Cadila with any materials specified
in the applicable Project Plan and shall timely furnish Cadila with any information or additional
materials as reasonably requested by Cadila for the performance of the Services. Cadila shall not
be responsible for any delays caused by Novavax. If Novavax delays a Project Plan or desires to
reschedule a Project Plan, Cadila will use good faith efforts to accommodate the needs of Novavax,
but makes no commitment to commence or complete the Services under the Project Plan on the
original schedule. Cadila shall conduct the Services in a professional manner consistent with
applicable industry standards and consistent with all applicable Indian laws and regulations and
United States federal Food and Drug Administration regulations, including Good Laboratory Practices
(GLP), Good Manufacturing Practices (GMP) and Good Clinical Practices (GCP).

3. Records and Reports.

Cadila shall prepare and maintain complete and accurate records containing all results generated by
Cadila in the performance of the Services (the “Project Results”). Cadila shall meet with Novavax
by teleconference and furnish Novavax with interim reports of the Project Results periodically as
provided in the applicable Project Plan, or as otherwise agreed by the parties. After the Services
are completed under a Project Plan, Cadila shall provide Novavax with a final report on the Project
Results in accordance with the requirements of the applicable Project Plan.

4. Payment by Novavax; Guaranty of Services.

Novavax shall pay to Cadila the costs of the Services in accordance with the fees on the schedule
set forth in the applicable Project Plan. All amounts shall be due and payable within thirty (30)
days after invoice by Cadila. All payments shall be made in US dollars unless otherwise agreed by
the parties. If the actual costs of the Services under a Project Plan exceed the estimated costs
as included in the Project Plan, then Novavax shall pay the actual costs; provided, however, that
Cadila shall not incur nor invoice any costs in excess of [* * *] of the estimated cost in the
Project Plan without the prior written consent of Novavax. If any amount payable under this
Agreement is not paid when due and payable, Cadila reserves the right, without prejudice to its
other rights and remedies, to charge interest on such amount at the rate of [* * *] per annum. In

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

addition, Cadila may suspend its performance of the Services under all Project Plans if any amounts
due and payable by Novavax have not been timely paid.

It is the intent of the parties that, during the first three years of the term of this Agreement
(the “Services Period”), Novavax will have engaged Cadila to perform Services hereunder that will
in the aggregate equal $7.5 million in fees paid to Cadila. If, at the end of the Services Period,
the Services Amount (defined below) does not equal or exceed $7.5 million, then Novavax shall pay
Cadila an amount (the “Final Amount”) equal to the sum of (a) the portion of the Shortfall Amount
that is less than or equal to $2.0 million, plus (b) the product of fifty percent (50%) times the
portion, if any, of the Shortfall Amount that exceeds $2.0 million. For purposes of this Section 4
and Section 9.2, “Services Amount” equals the sum of (A) the amounts paid under all Project
Plans, and (B) amounts to be paid under executed Project Plans if the Services under such Project
Plans are completed as provided therein, and (C) any amounts that would have been paid for services
under a reasonable Service Request provided to Cadila under this Agreement, which Service Request
(i) concerns legitimate products or projects within Novavax’s scope of its own business and (ii)
involves services that Cadila is reasonably able to provide within its scope of resources and
expertise, but for the fact that Cadila exercised its right not to prepare a Project Estimate or
agree to a Project Plan reasonably offered to Cadila by Novavax containing terms substantially
consistent with those contained in Cadila’s Project Estimate therefor (which amounts shall be
reasonably determined based on amounts that would be reasonably charged for such services had
Cadila actually provided a Project Estimate and the parties had entered into a Project Plan
therefor); and “Shortfall Amount” equals the difference between $7.5 million and the
Services Amount.

5. Ownership of Work Product.

     5.1 Disclosures. Cadila will promptly notify Novavax of any invention, discovery,
improvement, formula, know-how, design, process or technique, whether patentable or not, which is
conceived or reduced to practice by Cadila in the course of Cadila’s performance of Services.

     5.2 Novavax Ownership. Except as set forth in Section 5.3, Novavax shall have sole
ownership of all right, title, and interest in and to all (a) Project Results, and (b) inventions,
discoveries, improvements, formulas, know-how, designs, processes and techniques, whether or not
patentable, patent rights, copyrights, and any other intellectual property rights (all the
foregoing, collectively, “IP Rights”) directed or specific to Novavax’s VLP vaccines, Novavax’s VLP
platform or the particular products or programs of Novavax described in the Project Plan (“Novavax
Technology”) conceived or reduced to practice by Cadila in the course of performance of the
Services, and (c) IP Rights directed or specific to Novavax Technology conceived or reduced to
practice jointly by Cadila and Novavax in the course of performance of the Services (collectively,
the “Novavax IP Rights”). Cadila hereby assigns, transfers, and conveys to Novavax all right,
title, and interest in the Novavax IP Rights (subject, as applicable, to the license granted by
Novavax to the joint venture to be formed under the Joint Venture Agreement between Novavax and
Cadila). Cadila further agrees to execute any documents and

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

to provide Novavax with any other assistance that is reasonably necessary for Novavax to
perfect and enjoy its rights under this Section.

     5.3 Cadila Ownership; Non-Exclusive License. Novavax acknowledges that, in the course
of providing Services, Cadila (solely or jointly with Novavax) may conceive of, or reduce to
practice, IP Rights in the course of performance of the Services that are not directed to or
specific to the Novavax Technology, including, without limitation, any improvements to Cadila’s
existing technologies or capabilities (collectively, “Cadila IP Rights”). Therefore,
notwithstanding the provisions of Section 5.2, Cadila shall have sole ownership of all Cadila IP
Rights. Novavax hereby assigns, transfers, and conveys to Cadila all right, title, and interest in
Cadila IP Rights. Novavax further agrees to execute any documents and to provide Cadila with any
other assistance that is reasonably necessary for Cadila to perfect and enjoy its rights under this
Section. Cadila hereby grants to Novavax a fully paid, nonexclusive right and license to use any
Cadila IP Rights in connection with the research, development, manufacture and sale of Novavax
vaccine products anywhere in the world. Except as expressly provided herein, Cadila retains all of
its rights, title and interest in, to and under its intellectual property, technology and other
assets, and no transfer of ownership or license is provided hereunder with respect thereto (by
implication or otherwise), except as expressly provided for herein.

6. Confidential Information.

     6.1 “Confidential Information” means any confidential or proprietary information
furnished by one party (the “Disclosing Party”) to the other party (the “Receiving Party”) in
connection with any Services Request or Project Plan or otherwise in connection with the
performance of Services hereunder, any information within the Project Results and any Novavax IP
Rights and any Cadila Improvements and Cadila IP Rights. All information within the Project
Results, other than Cadila Improvements and Cadila IP Rights, shall be the Confidential Information
of Novavax and Novavax shall be deemed the Disclosing Party with respect to such information. All
information relating to Cadila Improvements and Cadila IP Rights shall be the Confidential
Information of Cadila and Cadila shall be deemed the Disclosing Party with respect to such
information. Such Confidential Information may include, without limitation, trade secrets,
know-how, inventions, product or technical data or specifications, testing methods, and research
and development activities and results.

     6.2 Restrictions. During the term of this Agreement and thereafter for a period of
ten (10) years, the Receiving Party shall (i) maintain all Confidential Information in strict
confidence, except that the Receiving Party may disclose or permit the disclosure of any
Confidential Information to its directors, officers, employees, consultants, and advisors who are
obligated to maintain the confidential nature of such Confidential Information and who need to know
such Confidential Information for the purposes of this Agreement; (ii) use all Confidential
Information solely for the purposes of this Agreement (or any other agreements entered into by the
parties); and (iii) allow its directors, officers, employees, consultants, and advisors to
reproduce the Confidential Information only to the extent necessary to fulfill the purposes of this
Agreement, with all such reproductions being considered Confidential Information.

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

     6.3 Exceptions. The obligations of the Receiving Party under Section 6.2 above shall
not apply to the extent that the Receiving Party can demonstrate by written records that certain
Confidential Information (i) was in the public domain prior to the time of its disclosure under
this Agreement; (ii) entered the public domain after the time of its disclosure under this
Agreement through means other than an unauthorized disclosure resulting from an act or omission by
the Receiving Party; (iii) was independently developed or discovered by the Receiving Party without
use of the Confidential Information; or (iv) is or was disclosed to the Receiving Party at any
time, whether prior to or after the time of its disclosure under this Agreement, by a third party
having no fiduciary relationship with the Disclosing Party and having no obligation of
confidentiality with respect to such Confidential Information. The parties shall be permitted to
disclose Confidential Information if such information is required to be disclosed to comply with
applicable laws or regulations, or with a court or administrative order, provided that the
Disclosing Party receives reasonable prior written notice of such disclosure and the party who
wishes to disclose the Confidential Information under this provision shall have cooperated with the
Disclosing Party to seek to avoid or limit the disclosure or to obtain confidential treatment of
its disclosure.

     6.4 Ownership and Return. The Receiving Party acknowledges that the Disclosing Party
(or any third party entrusting its own information to the Disclosing Party) claims ownership of its
Confidential Information in the possession of the Receiving Party. Upon the expiration or
termination of this Agreement, or earlier at the request of the Disclosing Party, the Receiving
Party shall return to the Disclosing Party all originals, copies, and summaries of documents,
materials, and other tangible manifestations of Confidential Information in the possession or
control of the Receiving Party (unless and to the extent continued use thereof is expressly
authorized by another agreement entered into by the parties), except that the Receiving Party may
retain one copy of the Confidential Information in the possession of its legal counsel solely for
the purpose of monitoring its obligations under this Agreement.

7. Proprietary Materials.

     7.1 “Proprietary Materials” shall mean any tangible chemical, biological, or physical
research materials furnished by Novavax to Cadila in connection with this Agreement. Proprietary
Materials shall also include other materials derived by Cadila in the performance of Services
hereunder from the original materials, including without limitation any progeny derived from a cell
line and substances routinely purified from any source material included in the original materials.
Except as expressly provided herein, Novavax retains all of its rights, title and interest in, to
and under the Proprietary Materials, and no transfer of ownership or license is provided hereunder
with respect thereto (by implication or otherwise), except as expressly provided for herein.

     7.2 Limited Use. Cadila shall (and shall have the right to) use Proprietary Materials
solely for the purpose of providing the Services as requested by Novavax.

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

     7.3 Limited Disposition. Cadila shall not transfer or distribute any Proprietary
Materials to any third party without the prior written consent of Novavax.

     7.4 Return of Proprietary Materials. Upon the termination of this Agreement, or
earlier at the request of Novavax, Cadila shall at the instruction of Novavax either destroy or
return any unused Proprietary Materials that remain in its possession. If materials are destroyed,
Cadila shall provide Novavax with a certificate of an officer of Cadila as to such destruction.

     7.5 Instructions Regarding Proprietary Materials. Cadila represents and warrants that
it will follow any reasonable instructions, directions, or protocols from Novavax regarding the
Proprietary Materials specified by Novavax in any Project Plan hereunder and Cadila will not
administer or allow or facilitate administration of any such Proprietary Materials to any human
unless expressly directed or permitted to do so (including in any Project Plan).

8. Term and Termination.

     8.1 Term. This Agreement shall commence on the Effective Date and shall remain in
effect for a period of five (5) years, unless earlier terminated as provided in this Article.

     8.2 Termination for Breach. In the event that either party commits a material breach
of its obligations under this Agreement and fails to cure that breach within thirty (30) days after
receiving written notice thereof (which notice must contain a reasonably detailed description of
the alleged breach with appropriate supporting documentation), the other party may terminate this
Agreement effectively immediately without additional notice. If Novavax terminates this Agreement
for breach by Cadila, then Novavax’s obligation to pay the Final Amount shall also terminate. To
the extent that Cadila disagrees with Novavax’s position that Cadila is in breach or did not
adequately cure such breach, then the dispute resolution provisions of Sections 9.6 and 9.7 will
apply to resolutions of that disagreement to determine whether or not Novavax has a right to
terminate under this Section 8.2.

     8.3 Voluntary Termination of this Agreement. After the third anniversary of this
Agreement, either party may terminate this Agreement for any reason upon ninety (90) days written
notice to the other party; provided, however, that if Novavax terminates this Agreement before the
end of the Services Period, then the effective date of the termination shall be considered the end
of the Services Period and Novavax shall pay any Final Amount that may be due.

     8.4 Effect of Termination. Any termination of this Agreement shall trigger a
termination of any ongoing Services and Project Plans, unless the parties specifically provide
otherwise. In the event of termination of this Agreement, Cadila shall, to the extent practicable,
immediately cease work on all Project Plans and use reasonable efforts to wind down the services
thereunder as cost effectively as possible, unless otherwise instructed by Novavax. Cadila shall
send a final invoice to Novavax for work performed and for any non-cancellable or non-refundable
commitments. Cadila shall use commercially reasonable efforts to mitigate costs. After Cadila
receives the full final payment, Cadila will transfer to Novavax the Project

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

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Results as of the termination date, but Cadila shall have no obligation to deliver a final
report or to organize, interpret, or analyze any of the Project Results if such work is not already
completed.

     8.5 Survival. The following provisions shall survive the expiration or termination of
this Agreement: Articles 5, 6, and 7; Sections 9.6, 9.7, 9.8, 9.9, and 9.10.

     8.6 Termination of Project Plans. Novavax may terminate one or more Project Plans,
rather than the entire Agreement, upon ninety (90) days written notice to Cadila. In such event,
(a) any unpaid amounts under such Project Plan shall be excluded from calculation of the Final
Amount under Section 4 (i.e., no such unpaid amounts shall be subtracted from the $5.5 million in
calculating the Final Amount), and (b) Cadila will use reasonable efforts to wind down the Services
under the Project Plan(s) that were terminated as cost-effectively as possible unless otherwise
instructed by Novavax. Cadila shall send a final invoice to Novavax for work performed and for any
non-cancellable or non-refundable commitments. Cadila shall use commercially reasonable efforts to
mitigate costs. After Cadila receives the full final payment, Cadila will transfer to Novavax the
Project Results as of the termination date, but Cadila shall have no obligation to deliver a final
report or to organize, interpret, or analyze any of the Project Results if such work is not already
completed.

9. Miscellaneous.

     9.1 Independent Contractor. For the purposes of this Agreement, each party is an
independent contractor and not an agent or employee of the other party. This Agreement shall not
be deemed to create a joint venture or partnership between the parties. Neither party shall have
authority to make any statements, representations, or commitments of any kind, or to take any
action which shall be binding on the other party, except as may be explicitly provided for in this
Agreement or authorized in writing by the other party.

     9.2 Force Majeure. Neither party will be responsible for delays or failures in
performance resulting from causes beyond the reasonable control of such party (except for any delay
or failure to pay amounts due hereunder), including without limitation fire, explosion, flood, war,
strike, or riot, provided that the nonperforming party uses commercially reasonable efforts to
avoid or remove such causes of nonperformance and continues performance under this Agreement with
reasonable dispatch whenever such causes are removed. Either party shall have the right to
immediately terminate this Agreement should such force majeure event continue for more than ninety
(90) days. If, at the time of such a termination, the Services Amount (defined in Section 4) does
not equal or exceed a pro rata portion of $5.5 million (taking into consideration the time between
the Effective Date and such termination versus the three year Services Period (the “Pro Rata
Amount”)) plus $2.0 million, then Novavax shall pay Cadila an amount (the “FM Final Amount”) equal
to the sum of (a) the portion of the FM Shortfall Amount that is less than or equal to $2.0
million, plus (b) the product of fifty percent (50%) times the portion, if any, of the FM Shortfall
Amount that exceeds 2.0 million. For purposes of this

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

Section 9.2, “FM Shortfall Amount” equals the difference between the Pro Rata Amount
and the Services Amount.

     9.3 Headings. All headings are for convenience only and shall not affect the meaning
of any provision of this Agreement.

     9.4 Assignment. This Agreement may not be assigned by either party without the prior
written consent of the other party, except that a party may assign this Agreement to an affiliate
or to a successor in connection with the merger, consolidation, or sale of all or substantially all
of its assets or that portion of its business to which this Agreement relates.

     9.5 Amendment. This Agreement may be amended, supplemented, or otherwise modified
only by means of a written instrument signed by authorized representatives of both parties. Any
waiver of any rights or failure to act in a specific instance shall relate only to such instance
and shall not be construed as an agreement to waive any rights or fail to act in any other
instance, whether or not similar.

     9.6 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of England, irrespective of any conflicts of law principles. The U.N. Convention on
the Sale of Goods shall not apply to this Agreement.

     9.7 Arbitration. The parties recognize that disputes as to certain matters may from
time to time arise during the course of performance of this Agreement. It is the objective of the
parties to establish procedures to facilitate the resolution of disputes arising under this
Agreement in an expedient manner by mutual cooperation and without resort to litigation.

     (a) The parties will refer any dispute, controversy or claim under, arising out of or
relating to the validity, construction, enforceability or performance of this Agreement to
the most senior management of each party who will attempt in good faith to resolve the
dispute.

     (b) After senior management of the parties have attempted in good faith to resolve the
dispute, and resolution is not obtained within thirty (30) days of either’s party’s referral
of such dispute to senior management, either party may initiate resolution of any dispute,
controversy or claim only by final binding arbitration administered by the International
Chamber of Commerce (“ICC”) and in accordance with the provisions of the ICC Rules of
Arbitration (or such other reputable arbitration organization as the parties may mutually
agree in writing). Any such arbitration will be conducted in London, in the English
language.

     (c) Notwithstanding anything to the contrary in this Section 9.7, either party has the
right to seek temporary injunctive relief or any other equitable remedy (collectively, the
“Equitable Claims”) in any court of competent jurisdiction as may be available to such party
under the laws applicable to such jurisdiction.

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     (d) The arbitration will be presided over by one arbitrator mutually agreed to by the
parties. If the parties are unable to agree to a single arbitrator, then there will be
three arbitrators, one chosen by Cadila, one chosen by Novavax and the third chosen by the
first two arbitrators..

     (e) The substantive laws of England will govern the resolution of all disputes,
controversies and claims under, arising out of or relating to the validity, construction,
enforceability or performance of this agreement and any related remedies.

     (f) Each party will abide by any arbitral award rendered pursuant to this Section 9.7.
If a party resists enforcement of an arbitral award, any costs, fees or taxes incident to
enforcement will be charged against that party to the extent permitted by law. Each part
will bear its own legal fees for arbitration, and the arbitrator(s) will assess their costs,
fees and expenses against the party losing the arbitration.

     9.8 Notices. Any notices required or permitted under this Agreement shall be in
writing, shall specifically refer to this Agreement, and shall be sent by recognized international
overnight courier, confirmed facsimile transmission, or confirmed electronic mail. All notices
under this Agreement shall be deemed effective upon receipt. The parties will designate their
respective contact information below, which information is subject to change immediately upon
written notice to the other party in the manner provided in this Section.

     9.9 Indemnification; Insurance.

Cadila shall indemnify, defend, and hold harmless Novavax and its affiliates, directors,
officers, employees, and agents against any and all losses, costs, expenses, and damages, including
but not limited to reasonable attorneys fees and costs of investigation, arising out of any third
party suit, action or proceeding and attributable to the negligence or willful misconduct of Cadila
or arising out of Cadila’s failure to perform the Services in compliance with the terms and
conditions of this Agreement.

Novavax shall indemnify, defend, and hold harmless Cadila and its affiliates, directors, officers,
employees, and agents against any and all losses, costs, expenses, and damages, including but not
limited to reasonable attorneys fees and costs of investigation, arising out of any third party
suit, action or proceeding and attributable to the negligence or willful misconduct of Novavax in
connection with its obligations under this Agreement or to the use, development, manufacture or
commercialization by or for Novavax or any licensee of any Novavax IP Rights, or any products or
services utilizing or covered by the same.

Any party seeking indemnification under this Agreement shall provide prompt written notice to the
indemnifying party identifying the claim or potential claim giving rise to the indemnification;
provided that failure to provide such notice shall not remove the obligation to indemnify unless
and to the extent such failure prejudices the indemnifying party. The indemnifying party shall
have the right to assume the defense of any claims that are the subject of indemnification at its
expense, provided that if there are defenses available to the indemnified party in conflict with
the

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indemnifying party’s defense, then the indemnified party may retain its own counsel at the
indemnifying party’s expense. No party shall settle or compromise any claim for which
indemnification has been requested without the prior approval of the other party.

Each party shall secure and maintain in full force and effect throughout the performance of each
Project Plan policies of general liability, product liability and other insurance having policy
limits, deductibles and other terms appropriate to the conduct of the Services and the party’s
business and to cover the liability that could arise under this Agreement and this Section 9.9
specifically.

     9.10 Warranties.

Each of Cadila and Novavax represents and warrants that (a) they each shall use commercially
reasonable efforts to perform their respective obligations under this Agreement, and (b) the
execution, delivery and performance of this Agreement has been duly authorized and, upon execution
and delivery, will be enforceable against Cadila or Novavax, as the case may be, in accordance with
the terms and conditions of this Agreement. Moreover, Cadila will comply with all applicable
Indian laws and regulations and the United States Federal Food, Drug and Cosmetic Act and the
regulations promulgated thereunder, including GLP, GMP and GCP, in its performance of Services
hereunder.

Except as expressly set forth herein, NEITHER PARTY MAKES ANY OTHER REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, OF ANY KIND INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR PARTICULAR PURPOSE, OR ANY WARRANTIES WITH RESPECT TO THE SERVICES PROVIDED PURSUANT TO
THIS AGREEMENT.

     9.11 Limitation of Liability. In no event shall either party, including its
employees, agents, or representatives, be liable for any consequential, incidental, special,
exemplary, or punitive damages, including any loss of profit, business, or goodwill. This
limitation shall apply regardless of whether such liability arises from a claim based upon
contract, warranty, tort, or any other theory of liability (including negligence).

     9.12 Severability. In the event that any provision of this Agreement shall be held
invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect any
other provision of this Agreement, and the parties shall negotiate in good faith to modify the
Agreement to preserve (to the extent possible) their original intent.

     9.13 Integration. This Agreement, the Project Plans and all Exhibits attached hereto
constitutes the entire agreement between the parties with respect to its subject matter and
supersedes all prior agreements or understandings between the parties relating to its subject
matter.

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     9.14 Use of Names. Neither party shall use the name of the other party or the names
of the employees of the other party in any advertising or sales promotional material or in any
publication without the prior written permission of such party.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	NOVAVAX, INC.	 	CADILA PHARMACEUTICALS LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Rahul Singhvi
 

Rahul Singhvi
	 	By:
	 	/s/ Rajiv I. Modi
 

Rajiv I. Modi
	 	 
	 

	 	President and Chief Executive Officer
	 	 	 	Managing Director	 	 

 

 

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EXHIBIT A

PROJECT PLANS

[Project Plans, upon approval by the parties as set forth in Section 1.2, will be attached hereto
as Exhibit A documents and become incorporated into the Agreement]exv10w5

Exhibit 10.5

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SUPPLY AGREEMENT

     This Supply Agreement (this “Agreement”) is made as of this 31st day of
March, 2009 (the “Execution Date”), by and among Novavax, Inc., a Delaware corporation having an
address at 9920 Belward Campus Drive, Rockville, Maryland 20850, United States of America
(“Novavax”) and CPL Biologicals Limited, a limited company incorporated under the laws of
India having an address at “Cadila Corporate Campus”, Sarkhej-Dholka Road, Bhat, Ahmedabad -
382210, Gujarat, India (“Company”). Novavax and Company are sometimes referred to
herein each individually as a “Party” and collectively as the “Parties.”

RECITALS

               WHEREAS, Company, a joint venture formed pursuant to a Joint Venture Agreement (the “Joint
Venture Agreement”) dated as of the date hereof between Novavax and Cadila Pharmaceuticals
Limited, organized under the laws of India, was formed for developing, manufacturing, marketing and
selling the Products (as defined in the Joint Venture Agreement) in India to cater the needs of the
market in India; and

               WHEREAS, Novavax has granted to Company a license to certain of Novavax’s patents, patent
applications and know-how for the Company to develop and commercialize certain Novavax Products (as
defined in the Joint Venture Agreement) (the “License”); and

               WHEREAS, in connection with the foregoing, Novavax is willing to supply certain pre-clinical
and clinical supplies of the Novavax Seasonal Product to Company and Company wishes to buy Products
from Novavax under the terms and conditions of this Agreement.

               NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants
set forth below, and for other good and valuable consideration, the receipt of which is hereby
acknowledged, and intending to be legally bound hereby, Novavax and Company hereby agree as
follows:

	1.	 	Definitions. References in the body of this Agreement to “Sections” will
refer to the sections of this Agreement. In addition, as used herein, the following initially
capitalized terms will have the following meanings

	 	1.1	 	“Bankruptcy Event” means, with respect to a specified person, (i) the
filing by such person in any court or agency, pursuant to any statute or regulation of
any state or country, a petition in bankruptcy or insolvency or for reorganization or
for an the appointment of a receiver or trustee of such other Party or of its assets,
(ii) the filing against such person of an involuntary petition for any bankruptcy or
insolvency proceeding which petition is not dismissed within sixty (60) days after
filing, (iii) the making by such person of an assignment for the benefit of its
creditors, (iv) the taking of possession of a substantial part of the assets of such
person by a lien holder or other encumbrancer, or (v) the levy or enforcement of

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	 	 	 	any
distress, execution or other process upon or against a substantial part of the assets
of such person.
	 
	 	1.2	 	“cGMP” means then current Good Manufacturing Practices.
	 
	 	1.3	 	“Company Indemnitee” has the meaning set forth in Section 8.2.
	 
	 	1.4	 	“Defect” or “Defective” means any non-conformance with the
Specifications or the existence of any impurity, contaminant or any other defect that
renders the Products unfit for human use.
	 
	 	1.5	 	“Effective Date” means the date on which the condition precedent set
forth in Article 11 is first satisfied.
	 
	 	1.6	 	“First Commercial Sale” means the first sale for monetary value for use
or consumption by the general public of the Novavax Products in India.
	 
	 	1.7	 	“Fully-Loaded Cost” means the direct costs and expenses for
manufacturing the Products (including quality assurance/quality control charges and
including escalation costs, if any), and indirect costs that are reasonably
attributable and fairly allocable to the manufacture of Product reasonably determined
by Novavax’s internal accounting in accordance with United States generally accepted
accounting practices.
	 
	 	1.8	 	“Indeminitee” means a Company Indemnitee or Novavax Indemnitee, as
applicable.
	 
	 	1.9	 	“Indemnitor” means Company or Novavax, as applicable.
	 
	 	1.10	 	“Joint Venture Agreement” has the meaning set forth in the Recitals.
	 
	 	1.11	 	“Laws” means all (a) applicable laws, statutes, rules, regulations,
ordinances and other pronouncements having the effect of law of the United States and
India; and (b) any guideline or directive of the World Health Organization or other
applicable non-governmental agency.
	 
	 	1.12	 	“License” has the meaning set forth in the Recitals.
	 
	 	1.13	 	“Losses” has the meaning set forth in Section 8.1.
	 
	 	1.14	 	“Manufacturing Facility” means the manufacturing facility or
facilities of Novavax used to manufacture the Products.
	 
	 	1.15	 	“Novavax Indemnitee” has the meaning set forth in Section 8.1.
	 
	 	1.16	 	“Novavax Products” has the meaning set forth in the Joint Venture
Agreement.

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	 	1.17	 	“Novavax Seasonal Product” means the Seasonal Influenza Licensed
Product as defined in the License.
	 
	 	1.18	 	“Order Requirements” has the meaning set forth in Section 3.2.
	 
	 	1.19	 	“Products” means Novavax’s pre-clinical and clinical supplies of the
Novavax Seasonal Product which conform to the Specifications.
	 
	 	1.20	 	“Purchase Order” has the meaning set forth in Section 3.2.
	 
	 	1.21	 	“Specifications” means Novavax’s standard specifications and
manufacturing criteria for the Products (consistent with cGMP), a written copy of which
shall be provided by Novavax to the Company within thirty (30) days after the Effective
Date, as amended from time to time by mutual written agreement of the Parties.
	 
	 	1.22	 	“Third Party” means a person or entity other than (a) Novavax, (b)
Company, (c) an Affiliate of Novavax or (d) an Affiliate of Company
	 
	 	1.23	 	“Transfer Price” has the meaning set forth in Section 4.1.

	2.	 	Manufacture and Supply.

	 	2.1	 	General Obligations. Novavax shall sell to Company, and Company shall purchase
from Novavax, the Products in accordance with the terms and conditions of this
Agreement.
	 
	 	2.2	 	Manufacturing Standards. All Products supplied by Novavax to Company will be
manufactured in accordance with any applicable Laws including, without limitation, cGMP
and any requirements set forth herein.

	3.	 	Product Supply, Orders and Delivery.

	 	3.1	 	Purchase Orders. Purchase and delivery of the Products shall be made pursuant
to written or electronic individual purchase orders issued by Company to Novavax (each
a “Purchase Order”). Company shall submit such Purchase Orders to Novavax as
far in advance as reasonably practicable, but in any event not less than twelve (12)
weeks in advance of the delivery date(s) requested in such Purchase Order. A Purchase
Order shall be deemed to be accepted by Novavax when Novavax returns a written or
electronic order acknowledgement to Company. Novavax shall promptly return a written
or electronic order acknowledgement to Company for each Purchase Order received unless
Novavax will be unable to timely meet Company’s requirement for Product as set forth in
the applicable Purchase Order. Purchase Orders shall specify quantities ordered,
delivery dates, and delivery and shipping instructions. Inconsistencies between a
Purchase Order and this Agreement shall be resolved in favor of this Agreement.

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	 	 	 	Company acknowledges that Novavax may be prevented from meeting a delivery date
and/or order quantity set forth in a Purchase Order (the “Order
Requirements”) as a result of the Manufacturing Facility production schedule,
and in such event Novavax will use commercially reasonable efforts to meet the Order
Requirements at such time as the Manufacturing Facility production schedule
reasonably permits. If Novavax anticipates that it will be unable to meet Order
Requirements for a reason other than the Manufacturing Facility production schedule,
Novavax will notify Company immediately of such inability, and the Parties will
negotiate in good faith a new mutually acceptable delivery date and/or quantity.
	 
	 	3.2	 	Certificate of Analysis. Novavax shall deliver with each shipment a
certificate of analysis consistent with cGMP executed by an authorized representative
of Novavax, accompanied by a statement that the Products were manufactured according to
the Specifications.
	 
	 	3.3	 	Delivery. The Products shall be packaged according to the Specifications and
supplied FCA (Incoterms 2000) the Manufacturing Facility. Insurance on Products in
transit shall be the responsibility of Company and Company shall be responsible for
clearing the Products for import into India. Novavax shall provide any assistance
reasonably requested by Company to clear the Products for import into India at
Company’s expense. Company agrees to designate a carrier prior to or at the time of
entry of each Purchase Order hereunder; however, if Company fails to designate a
carrier prior to or on its purchase order, Novavax may select a carrier for the account
and risk of Company.

	4.	 	Price and Payment.

	 	4.1	 	Price. The price at which the Products will be sold to Company by Novavax
hereunder will be 110% of the Fully-Loaded Cost therefore (the “Transfer
Price”). Novavax will include with each shipment of Product an invoice setting
forth the Transfer Price for the Product in the shipment.
	 
	 	4.2	 	Payment. Payment shall be due to Novavax thirty (30) days after Company’s
receipt of the Products.
	 
	 	4.3	 	Books and Records. Novavax will keep accurate books and accounts of record in
connection with its manufacture of Products in sufficient detail to permit verification
of the Fully-Loaded Cost and the Transfer Price for Product purchased by Company as set
forth in this Article 4. Novavax will maintain its records for the sale of Products
for a period of three (3) years from the end of each year in which such sales occurred.
	 
	 	4.4	 	Audits. Company, at its expense, through an internationally recognized,
independent accountant reasonably acceptable to Novavax, will have the right to

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	 	 	 	access Novavax’s relevant books and records upon reasonable advanced notice once per
year for the sole purpose of verifying the Fully-Loaded Cost and the Transfer Price
for Product purchased by Company; such access will be conducted during Novavax’s
ordinary business hours, and the books and records for a given time period may only
be audited once. Said accountant will execute a confidentiality agreement with
Novavax in customary form and will only disclose to Company whether Novavax’s
invoices were accurate and if they were not, any information necessary to explain
the source of the inaccuracy. If such audit determines that Novavax charged Company
more than the amount properly owed in respect of any quarter, then Novavax will
reimburse Company any excess amount paid by Company within thirty (30) days of the
completion of the audit, and if the amount paid exceeds ten percent (10%) of the
amount actually owed over the audited period, Novavax will also reimburse Company
for the reasonable costs of such audit (including the fees and expenses of the
certified public accountant). In the event such audit determines that Novavax
charged Company less than the amount properly owed in respect of any quarter, then
Company will pay Novavax any such difference within thirty (30) days of the
completion of the audit.

	5.	 	Quality, Inspections & Returns.

	 	5.1	 	Quality. All Products manufactured under this Agreement shall be manufactured
in accordance with applicable Laws including, without limitation, cGMP and the
Specifications and shall conform, when delivered, to the Specifications.
	 
	 	5.2	 	Defective and Nonconforming Products.

	 	(a)	 	Except in the case of latent Defects, claims for Defective or
nonconforming Products shall be made to Novavax as soon as practicable after
discovery, but in any event no later than forty-five (45) days after receipt.
Claims for latent Defects shall be made within thirty (30) days of discovery of
the latent Defect. Company’s reasonable belief that a Product is Defective or
nonconforming accompanied by sufficient evidence to reasonably demonstrate that
the Products are Defective or does not conform to the Specifications shall
serve as the basis for such claims.
	 
	 	(b)	 	If Novavax agrees with Company’s determination that that the
Products do not satisfy the Specifications (or such a determination of
non-satisfaction is made in accordance with (c) below), Novavax will, at
Novavax’s election, either replace the Products or credit and refund the amount
billed and paid by Company for the Products, including shipping costs.
	 
	 	(c)	 	If Novavax disagrees with Company’s determination that the
Products do not satisfy the Specifications, the Products in question shall be
submitted

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	 	 	 	to a mutually acceptable Third Party laboratory, which shall determine
whether such Products meet the Specifications. The Parties agree that such
Third Party laboratory’s determination shall be final and determinative.
The Party against whom the Third Party laboratory rules shall bear the
reasonable costs of the Third Party testing.

	 	5.3	 	Recall. In the event of complaints regarding the Products, Company shall
promptly notify Novavax and Novavax shall investigate and shall inform Company within
thirty (30) days of the steps taken relating to the complaint. In the event of any
recall of any Product recommended or ordered by any governmental authority, or any
recall to which both parties agree in writing, Company will perform the recall
following Company’s standard operating procedures, and the reasonable documented costs
thereof will be borne by Novavax if the recall is the fault of Novavax or by Company if
the recall is the fault of Company. Novavax or Company, as the case may be, will
promptly upon demand reimburse the other in connection therewith.

	6.	 	Novavax’s Warranty. Novavax warrants to Company that the Products, at the time of
shipment to Company (i) will be manufactured in accordance with cGMP; (ii) will be in
compliance with the Specifications and (iii) will be free from Defects. THE WARRANTIES SET
FORTH HEREIN ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY
OF MERCHANTABILITY AND ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.
	 
	7.	 	Mutual Representations. Each of Novavax and Company hereby represents, warrants and
covenants to the other as of the Execution Date that:

	 	7.1	 	it has full corporate power and authority to enter into this Agreement and to
carry out the provisions hereof, and this Agreement is legally binding upon it and
enforceable in accordance with its terms;
	 
	 	7.2	 	the execution, delivery and performance of this Agreement by it does not
conflict with any agreement, instrument or understanding, oral or written, to which it
is a party or by which it may be bound, nor violate any Law of any governmental
authority having jurisdiction over it; and
	 
	 	7.3	 	all necessary consents, approvals and authorizations of all governmental
authorities and other persons required to be obtained by such Party to enter into, or
perform its obligations under, this Agreement have been obtained.

	8.	 	Indemnification.

	 	8.1	 	Indemnification by Company. Company will indemnify, defend and hold harmless
Novavax, its affiliates, directors, officers, and employees (each a

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	 	 	 	“Novavax Indemnitee”) from and against any and all liability, loss, damage
or expense (including without limitation reasonable attorneys fees) it may suffer as
the result of Third Party claims, demands, actions and proceedings brought against
it (collectively, “Losses”) to the extent such Losses result from the use of
the Products by Company or any human subject in a clinical trial, or which arise out
of Company’s making, testing, using or selling products or processes incorporating
the Products; except to the extent that Novavax is obligated to indemnify Company as
provided below.
	 
	 	8.2	 	Indemnification by Novavax. Novavax will indemnify, defend and hold harmless
Company, its affiliates, directors, officers, and employees (each a “Company
Indemnitee”) from and against any and all Losses which arise out of the gross
negligence, willful misconduct or breach of a covenant, representation or warranty in
this Agreement by Novavax, its affiliates or employees.
	 
	 	8.3	 	Procedures. Indemnitor’s agreement to indemnify, defend and hold harmless an
Indemnitee is conditioned on Indemnitee (a) providing prompt written notice of any
claim giving rise to an indemnification obligation hereunder but only if a failure to
so notify causes prejudicial harm to the Indemnitor’s ability to defend, (b) permitting
Indemnitor to assume full responsibility to investigate, prepare for and defend against
any such claim, (c) providing reasonable assistance in the defense of such claim at
Indemnitor’s reasonable expense, and (d) not compromising or settling such claim
without Indemnitor’s advance written consent.
	 
	 	8.4	 	Insurance. The Parties each agree to furnish to the other at any time promptly
upon request all certificates or memoranda of insurance which are maintained to insure
against any loss, damage or action which may arise out of, relate to or be caused by
the Products, the containers or labeling thereof, or the Specifications thereto.

	9.	 	Confidentiality.

     The Parties anticipate that under this Agreement each Party will provide confidential and/or
proprietary information to the other Party and that the use and disclosure of such information
shall be governed by Article 18 of the Joint Venture Agreement which is hereby incorporated by
reference.

	10.	 	Limitation of Liability.

     NEITHER PARTY NOR ITS RESPECTIVE AFFILIATES WILL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL,
EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES UNDER THIS AGREEMENT, WHETHER IN CONTRACT, WARRANTY,
TORT, STRICT LIABILITY OR OTHERWISE.

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	11.	 	Condition Precedent.

     This Agreement, including the obligations and benefits herein, shall only become effective if,
and shall automatically become effective upon, satisfaction of the following condition precedent;
provided that such condition is satisfied before [* * *]:

     Obtain the approval of the Foreign Investment Promotion Board for the issuance to Novavax of
[* * *] shares of Company.

     If the foregoing occurs before [* * *], the first Party receiving documented evidence thereof
shall notify the other and include in such notice the date thereof which date shall thereupon be
the Effective Date hereunder.

	12.	 	Term and Termination.

	 	12.1	 	Term. The term of this Agreement shall commence on the Effective Date and
continue in effect until the earlier of (i) the first date when Company’s own
manufacturing facility is capable of manufacturing, and fully licensed to manufacture,
all Novavax Products supplied hereunder; or (ii) the date of the First Commercial Sale,
unless terminated earlier under Section 12.2. Shipments made prior to
termination and received by Company subsequent to termination shall conform to this
Agreement.
	 
	 	12.2	 	Termination.

	 	(a)	 	Termination by Novavax. Novavax shall have the right
to terminate this Agreement upon the happening of any of the following events:

	 	(i)	 	Company is in material breach of or default
under this Agreement of payment obligation of a material amount and has
not cured such breach or default within thirty (30) days after written
notice from Novavax to Company specifying the nature of such breach or
default;
	 
	 	(ii)	 	Company is in material breach of or default
under this Agreement other than any payment obligation referred to in
clause (i) above and has not cured such breach or default within ninety
(90) days after written notice from Novavax to Company specifying the
nature of such breach or default;
	 
	 	(iii)	 	Immediately upon notice to Company if a
Bankruptcy Event occurs with respect to Company; and
	 
	 	(iv)	 	Upon termination of the Joint Venture
Agreement.

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	 	(b)	 	Termination by Company. Company may terminate this
Agreement for any reason or no reason upon sixty (60) days prior written notice
from Company to Novavax.
	 
	 	(c)	 	Termination Upon Termination of the Joint Venture
Agreement. This Agreement will terminate automatically if Novavax
terminates the Joint Venture Agreement by providing a Notice of Termination
under and pursuant to Section 11.2 of the Joint Venture Agreement

	 	12.3	 	Effect of Termination. Termination of this Agreement shall not release either
Party from fulfilling any obligations it may have incurred prior to such termination
except that Novavax shall not be obligated to complete deliveries in the event of an
uncured material breach by Company. This Section 12.3 and Articles 5, 6, 8, and 13
shall survive termination or expiration of this Agreement.

	13.	 	Miscellaneous.

	 	13.1	 	Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of India.
	 
	 	13.2	 	Dispute Resolution. Any dispute arising between the Parties out of or in
connection with the implementation or interpretation of this Agreement shall, if not
settled amicably within ninety (90) days from the date that the dispute arose, be
finally settled by three (3) arbitrators. Each Party shall be entitled to appoint one
(1) arbitrator and the two (2) so appointed shall appoint the third arbitrator in
accordance with the Indian Arbitration and Conciliation Act, 1996. It is hereby agreed
that Part I of the Indian Arbitration and Conciliation Act, 1996 shall not apply to the
arbitration under this Agreement. The language of the arbitration proceedings shall be
English and its place shall be Singapore. The arbitral award or determination shall be
final and subject to no appeal and shall deal with the question of costs of arbitration
and all matters related thereto.
	 
	 	 	 	The Parties agree that it would be impossible or inadequate to measure and calculate
their damages from any breach of the Agreement though great and irreparable.
Accordingly, each Party agrees that if the other Party breaches this Agreement, the
non-breaching party will have available, in addition to any other right or remedy
available, the right to obtain an injunction from a court of competent jurisdiction
restraining such breach or threatened breach and specific performance of any
provision of this Agreement.
	 
	 	13.3	 	Force Majeure. Neither party will be responsible for delays or failures in
performance resulting from causes beyond the reasonable control of such party (except
for any delay or failure to pay amounts due hereunder), including without limitation
fire, explosion, flood, war, strike, or riot, provided that the nonperforming party
uses commercially reasonable efforts to avoid or remove

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	 	 	 	such causes of nonperformance and continues performance under this Agreement with
reasonable dispatch whenever such causes are removed. Either party shall have the
right to immediately terminate this Agreement should such force majeure event
continue for more than ninety (90) days.
	 
	 	13.4	 	Notices. Any notice, request, demand, waiver, consent, approval or other
communication permitted or required under this Agreement (“Notice”) will be in writing,
will refer specifically to this Agreement and will be deemed given only if sent by
electronic mail (with receipt confirmed), facsimile transmission (with transmission
confirmed) or by an internationally recognized delivery service that maintains records
of delivery, addressed to the Parties at their respective addresses specified in this
Section 13.4 or to such other address as the Party to whom notice is to be given may
have provided to the other Party in accordance with this Section 13.4. Any notice
delivered by electronic mail or facsimile will be confirmed by a hard copy delivered as
soon as practicable thereafter by an internationally recognized overnight delivery
service. Such Notice will be deemed to have been given on the second Business Day (at
the place of delivery) after deposit with an internationally recognized delivery
service. This Section 13.4 is not intended to govern the day-to-day business
communications necessary between the Parties in performing their obligations under the
terms of this Agreement.

	 	 	 	 	 
	 

	 	If to Novavax:
	 	Novavax, Inc.
	 

	 	 	 	9920 Belward Campus Drive
	 

	 	 	 	Rockville, Maryland 20850
	 

	 	 	 	Attn: Ray Hage, Senior Vice President
	 

	 	 	 	Email: Rhage@Novavax.com
	 

	 	 	 	Facsimile No.: 240-268-2122
	 
	 	 	 	 
	 

	 	If to Company:
	 	CPL Biologicals Limited
	 

	 	 	 	Cadila Corporate Campus
	 

	 	 	 	Sarkhej-Dholka Road
	 

	 	 	 	Bhat, Ahmedabad – 382210
	 

	 	 	 	Gujarat, India
	 

	 	 	 	Attn: Dr. Rajiv I. Modi, Managing Director
	 

	 	 	 	Email: rimodi@cadilapharma.co.in
	 

	 	 	 	Facsimile No.: +91 (02718) 225031

	 	13.5	 	Third Party Contractors. The Parties will perform their obligations under this
Agreement as Third Party contractors and nothing contained in this Agreement will be
construed to be inconsistent with such relationship or status. This Agreement will not
constitute, create or in any way be interpreted as a joint venture or partnership of
any kind.

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	 	13.6	 	Headings. The headings for each article and section in this Agreement have
been inserted for convenience of reference only and are not intended to limit or expand
on the meaning of the language contained in the particular article or section.
	 
	 	13.7	 	No Strict Construction. This Agreement has been prepared jointly and will not
be strictly construed against either Party.
	 
	 	13.8	 	Ambiguities. Ambiguities and uncertainties in this Agreement, if any, will not
be interpreted against either Party, irrespective of which Party may be deemed to have
caused the ambiguity or uncertainty to exist.
	 
	 	13.9	 	English Language. All notices required or permitted to be given hereunder, and
all written, electronic, oral or other communications between the Parties regarding
this Agreement will be in the English language. This Agreement is in the English
language only, which language will be controlling in all respects, and all versions
hereof in any other language will be for accommodation only and will not be binding
upon the Parties.
	 
	 	13.10	 	Amendment and Waiver. No amendment or waiver of any provision of this
Agreement, and no consent to any departure therefrom, shall be effective unless the
same shall be in writing and signed by an authorized representative of each Party, and
such waiver or consent shall be effective only for the specific purpose for which it is
given. No failure on the part of a Party to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies provided for in this Agreement are
cumulative and are not exclusive of any remedies provided for by law.
	 
	 	13.11	 	Severability. If any of the provisions of this Agreement are found to be
inconsistent with, or void under, applicable laws, the validity of the remaining
provisions shall not thereby be affected. In such a case the Parties shall
re-negotiate the ineffective provision in good faith in order to replace it with a
provision affording the same rights, obligations and economic benefits to the Parties
as the ineffective provision.
	 
	 	13.12	 	Entire Agreement. This Agreement and the documents executed and delivered on
the date hereof pursuant hereto or in connection herewith, contain the entire agreement
among the Parties with respect to the matters addressed herein and therein and
supersede all prior representations, inducements, promises or agreements, oral or
otherwise, which are not embodied herein or therein.
	 
	 	13.13	 	Assignment.

11

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

	 	(a)	 	Novavax may not assign this Agreement, in whole or in part,
without the advance written consent of the Company; provided, however, that
this Agreement shall be automatically assigned to Novavax’s successor in
connection with the acquisition, merger or sale of Novavax or the sale,
transfer, lease, assignment or disposal of all or substantially all of the
property or assets of Novavax, whether by way of a single transaction or a
series of related transactions, and such successor shall be fully bound by the
terms and conditions hereof.
	 
	 	(b)	 	The Company may not assign this Agreement, in whole or in part,
without the advance written consent of Novavax; provided, however, that this
Agreement shall be automatically assigned to the Company’s successor in
connection with the sale, transfer, lease, assignment or disposal of all or
substantially all of the property or assets of the Company, whether by way of a
single transaction or a series of related transactions, including a Change in
Control of the Company (as that term is defined in Schedule II of the Joint
Venture Agreement), and such successor shall be fully bound by the terms and
conditions hereof; provided that any such automatic assignment by Company
within the scope of Schedule II of the Joint Venture Agreement shall only be
effective if such transaction was approved by Novavax under and pursuant to the
Joint Venture Agreement for so long as such approval rights of Novavax under
the Joint Venture Agreement have not been terminated.
	 
	 	(c)	 	Any assignment or purported assignment by either Party in
violation of this Section 13.13 will be null and void.

	 	13.14	 	Expenses. Except for the Transfer Price payments, each of the Parties hereto
will bear all costs, charges and expenses incurred by such Party in connection with
this Agreement and the consummation of the transactions contemplated herein.
	 
	 	13.15	 	Counterparts. This Agreement may be executed in one or more identical
counterparts, each of which will be deemed to be an original, and which collectively
will be deemed to be one and the same instrument.

[Signature Page to Follow]

12

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED

WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND

EXCHANGE COMMISSION.

     In Witness Whereof, the Parties have by duly authorized persons executed this Supply
Agreement as of the Execution Date.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Novavax, Inc.	 	CPL Biologicals Limited	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Rahul Singhvi
 

Rahul Singhvi
	 	By:
	 	/s/ Rajiv I. Modi
 

Rajiv I. Modi
	 	 
	 

	 	President and CEO
	 	 	 	Managing Director	 	 

[Signature Page to Supply Agreement]

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