Document:

License and Research Collaboration Agreement

 Exhibit 10.24 
 Confidential Materials omitted and filed separately with the 
 Securities and
Exchange Commission. Asterisks denote omissions. 
 LICENSE AND RESEARCH COLLABORATION 
 AGREEMENT 
 by and between 
 MERCK & CO., INC. 
 and 
 AVEO PHARMACEUTICALS, INC. 

 LICENSE AND RESEARCH COLLABORATION AGREEMENT 
 THIS AGREEMENT, effective as of August 30, 2005 (the “Effective Date”), by and between MERCK & CO., INC., a
corporation organized and existing under the laws of New Jersey (“MERCK”) and AVEO PHARMACEUTICALS, INC., a corporation organized and existing under the laws of Delaware (“AVEO”). 
 RECITALS: 
 WHEREAS, AVEO has developed certain proprietary Collaboration Models (as hereinafter defined) that are useful in the conduct of the Research Program (as hereinafter defined); 
 WHEREAS, MERCK and AVEO desire to enter into a license and research collaboration agreement in order to identify Prognostic
Signature(s) (as hereinafter defined) capable of predicting responsiveness of an organism to therapeutic compounds upon the terms and conditions set forth herein; and 
 WHEREAS, MERCK desires to obtain a license under the AVEO Patent Rights and AVEO Information and Inventions and other rights as set forth herein, upon the terms and conditions set forth herein and
AVEO desires to grant such a license and convey such other rights. 
 NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants herein contained, the Parties hereby agree as follows: 
  

	1.	DEFINITIONS 

 Unless
specifically set forth to the contrary herein, the following terms, whether used in the singular or plural, shall have the respective meanings set forth below: 
  

	1.1	“Act” means, as applicable, the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §§ 301 et seq., and/or the Public Health
Service Act, 42 U.S.C. §§ 262 et seq., as such may be amended from time-to-time. 

  

	1.2	“Affiliate” means (a) any corporation or business entity of which fifty percent (50%) or more of the securities or other ownership interests
representing the equity, the voting stock or general partnership interest are owned, controlled or held, directly or indirectly, by MERCK or AVEO; or (b) any corporation or business entity which, directly or indirectly, owns, controls or holds
fifty percent (50%) (or the maximum ownership interest permitted by law) or more of the securities or other ownership interests representing the equity, the voting stock or, if applicable, the general partnership interest, of MERCK or AVEO; or
(c) any corporation or business entity of which fifty percent (50%) or more of the securities or other ownership interests representing the equity, the voting stock or general partnership interest are owned, controlled or held, directly or
indirectly, by a corporation or business entity described in (a) or (b). 

  

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	1.3	“AVEO Information and Inventions” means all discoveries, information, processes, methods, protocols, formulas, data, Inventions, know-how and trade
secrets, patentable or otherwise, which arise from the Research Program, and are developed or invented solely by employees of AVEO or other persons not employed by MERCK acting on behalf of AVEO. Notwithstanding the foregoing, AVEO Information and
Inventions shall not include any MERCK Information and Inventions, Joint Information and Inventions or Collaboration Model Information and Inventions. 

  

	1.4	“AVEO Patent Rights” mean any and all Patent Rights which, during the term of this Agreement, are Controlled by AVEO, including, but not limited to,
those listed on Schedule 1.4 (which schedule shall be updated by AVEO reasonably promptly upon the filing of such Patent Rights or otherwise at the request of MERCK), and which claim or cover AVEO Information and Inventions. Notwithstanding the
foregoing, AVEO Patent Rights shall not include any Patent Rights which claim or cover any MERCK Information and Inventions, Joint Information and Inventions or Collaboration Model Information and Inventions. 

  

	1.5	“AVEO Responder Patent Rights” has the meaning set forth in Section 3.2. 

  

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

  

	1.7	“Change of Control” means with respect to a Party: (1) a sale of all or substantially all of such Party’s assets, voting stock or securities
or business relating to this Agreement; (2) a merger, reorganization or consolidation involving a Party in which the stockholders of such Party immediately prior to such transaction cease to own collectively a majority of the voting equity
securities of a successor entity; or (3) a person or group of persons acting in concert (other than, in the case of AVEO, current stockholders of AVEO) acquire fifty percent (50%) or more of the voting equity securities of such Party.

  

	1.8	“Clinical Trial” means a Phase I Clinical Trial, Phase II Clinical Trial or Phase III Clinical Trial, as applicable. 

  

	1.9	“Collaboration Model” means: (a) [**], and/or (b) additional models, if any, which the Parties specifically agree shall be Collaboration
Models pursuant to the Research Plan. 

  

	1.10	“Collaboration Model Information and Inventions” means the Collaboration Models and all discoveries, processes, methods, protocols, formulas, data,
Inventions, know-how or trade secrets, patentable or otherwise, that are necessary in connection with or that claim or cover the Collaboration Models, including, without limitation, any use for identifying Prognostic Signatures, but, for purposes of
clarity, not including the Prognostic Signatures described in Section 1.27(c). Notwithstanding the foregoing, Collaboration Model Information and Inventions shall not include any MERCK Information and Inventions or Joint Information and
Inventions. 

  

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	1.11	“Commercially Reasonable Efforts” means, with respect to the efforts to be expended by a Party with respect to any objective, reasonable, good faith
efforts to accomplish such objective as such Party would normally use to accomplish a similar objective under similar circumstances. 

  

	1.12	“Committee” means the joint research committee established to facilitate the Research Program as more fully described in Section 2.5.1.

  

	1.13	“Control”, “Controls” or “Controlled by” means with respect to any item of or right under Patent Rights, AVEO Patent Rights,
AVEO Information and Inventions or MERCK Know-How, the possession of (whether by ownership or license, other than pursuant to this Agreement) the ability of a Party to grant access to, or a license or sublicense of, such item or right as provided
for herein without violating the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be required hereunder to grant the other party such access or license or sublicense. 

  

	1.14	“Control Compound” means the specific taxotere compound which the Parties shall use as a control in the Research Program. 

  

	1.15	“Field” means the use of: (a) Prognostic Signatures capable of predicting response (including lack of response) to MERCK Compounds,
(b) Prognostic Signatures capable of predicting response (including lack of response) to the Control Compound, (c) MERCK Compounds, (d) Control Compounds, (e) Products, and (f) MERCK Compound Improvements, in each case, for
any and all purposes. 

  

	1.16	“Indication” means a separate and distinct disease or medical condition in humans: (a) for which a Product is intended to treat, prevent and/or
diagnose as evidenced by a Clinical Trial; or (b) for which a Product has received Marketing Authorization, meaning that such Indication is contained in the Product’s labeling approved by a Regulatory Authority as part of the Marketing
Authorization for such Product. The Parties agree that: (i) prevention of a disease or medical condition shall not be a separate indication from treatment of the same disease or medical condition; (ii) the treatment and prevention of
separate varieties of the same disease or medical condition shall not be a separate indication; and (iii) the treatment or prevention of the same disease or medical condition in a different population shall not be a separate indication
(e.g., adult and pediatric). 

  

	1.17	“Information” means any and all information and data, including without limitation all MERCK Know-How, AVEO Information and Inventions, and all other
scientific, pre-clinical, clinical, regulatory, manufacturing, marketing, financial and commercial information or data, whether communicated in writing or orally or by any other method, which is provided by one Party to the other Party in connection
with this Agreement. 

  

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	1.18	“Invention” means any process, method, composition of matter, article of manufacture, discovery or finding that is conceived and/or reduced to
practice in the course of the Research Program. 

  

	1.19	“Joint Information and Inventions” means: 

  

	 	(a)	all discoveries, information, processes, methods, protocols, formulas, data, Inventions, know-how and trade secrets, patentable or otherwise, that (i) arise from
the Research Program, and (ii) are developed or invented jointly by employees of MERCK and AVEO or others acting on behalf of MERCK and AVEO; 

  

	 	(b)	all discoveries, information, processes, methods, protocols, formulas, data, Inventions, know-how and trade secrets, patentable or otherwise, that arise from the
Research Program and relate specifically to a Control Compound (including diagnostic uses thereof, methods of use and combination therapies comprising a Control Compound other than in combination with a MERCK Compound), whether developed or invented
(i) solely by employees of AVEO or other persons not employed by MERCK acting on behalf of AVEO, (ii) jointly by employees of MERCK and AVEO or others acting on behalf of MERCK and AVEO, or (iii) solely by employees of MERCK or other
persons not employed by AVEO acting on behalf of MERCK; and 

  

	 	(c)	any Prognostic Signature capable of predicting response (including lack of response) to a Control Compound, whether developed or invented (i) solely by employees
of AVEO or other persons not employed by MERCK acting on behalf of AVEO, (ii) jointly by employees of MERCK and AVEO or others acting on behalf of MERCK and AVEO, or (iii) solely by employees of MERCK or other persons not employed by AVEO
acting on behalf of MERCK. 

 Notwithstanding the foregoing, Joint Information and Inventions shall not include any
MERCK Know-How nor shall it include the use of a Control Compound in combination with a MERCK Compound. 
  

	1.20	“Joint Patent Rights” means all Patent Rights that claim or cover the Joint Information and Inventions. 

  

	1.21	“Major Market” means any one of the following countries: United States, Japan, the United Kingdom, France, Germany, Italy or Spain.

  

	1.22	“Major Pharma Entity” shall mean any health care company or group of companies acting in concert for whom collective worldwide sales of ethical
pharmaceutical products in the Calendar Year that preceded the Change of Control were [**] dollars ($US [**]) or more. 

  

	1.23	“Major Pharma Change of Control” shall mean a Change of Control in which a Major Pharma Entity is the acquirer of AVEO’s assets or voting equity
securities (by asset purchase, merger, consolidation, reorganization or otherwise). 

  

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	1.24	“Marketing Authorization” means all approvals from the relevant Regulatory Authority necessary to market and sell a Product in any country (including
without limitation, all applicable pricing and governmental reimbursement approvals). 

  

	1.25	“MERCK Compounds” mean specific proprietary compounds which are Controlled by MERCK, including all solvates, prodrugs, salts, hydrates,
metabolites, polymorphs, stereoisomers and other derivatives thereof, and which MERCK is making available to AVEO pursuant to the terms of this Agreement solely for use in the Research Program. 

  

	1.26	“MERCK Compound Improvement” means any and all enhancements, whether or not patentable, to MERCK Compound(s), including without limitation any
formulation(s), whether or not patentable, of MERCK Compound(s). 

  

	1.27	“MERCK Information and Inventions” means: 

  

	 	(a)	all discoveries, information, processes, methods, protocols, formulas, data, Inventions, know-how and trade secrets, patentable or otherwise, other than Joint
Information and Inventions described in Section 1.19(b)(3) or 1.19(c)(3), that (i) arise from the Research Program, and (ii) are developed or invented solely by employees of MERCK or other persons not employed by AVEO acting on behalf
of MERCK; 

  

	 	(b)	all discoveries, information, processes, methods, protocols, formulas, data, Inventions, know-how and trade secrets, patentable or otherwise, that arise from the
Research Program and relate to a MERCK Compound (including diagnostic uses thereof, methods of use and combination therapies comprising a MERCK Compound), whether developed or invented (i) solely by employees of AVEO or other persons not
employed by MERCK acting on behalf of AVEO, (ii) jointly by employees of MERCK and AVEO or others acting on behalf of MERCK and AVEO, or (iii) solely by employees of MERCK or other persons not employed by AVEO acting on behalf of MERCK;
and 

  

	 	(c)	any Prognostic Signature capable of predicting response (including lack of response) to any MERCK Compound, any Product, or any MERCK Compound Improvement, which arise
from the Research Program, whether developed or invented (i) solely by employees of AVEO or other persons not employed by MERCK acting on behalf of AVEO, (ii) jointly by employees of MERCK and AVEO or others acting on behalf of MERCK and
AVEO, or (iii) solely by employees of MERCK or other persons not employed by AVEO acting on behalf of MERCK. 

 Notwithstanding the foregoing, MERCK Information and Inventions shall not include Collaboration Model Information and Inventions. 
  

	1.28	“MERCK Know-How” means any information and materials, including but not limited to discoveries, improvements, processes, methods, protocols,
formulas, data, inventions (including, without limitation, MERCK’s Information and Inventions), know-how and trade secrets, patentable or otherwise, which during the term of this Agreement: (a) are in MERCK’s Control, (b) are not
generally known, and (c) are in MERCK’s opinion necessary to AVEO in the performance of its obligations under the Research Program. 

  

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	1.29	“MERCK Patent Rights” mean any and all Patent Rights which, during the term of this Agreement, are Controlled by MERCK and which: (a) claim or
cover any: (i) Prognostic Signature capable of predicting response (including lack of response) to a MERCK Compound, (ii) MERCK Compounds, and/or (iii) Product, including without limitation any MERCK Compound Improvements;
(b) claim or cover MERCK Know-How; or (c) claim or cover MERCK Information and Inventions. 

  

	1.30	“NDA” means a New Drug Application, Biological License Application, Worldwide Marketing Application, Marketing Application Authorization, filing
pursuant to Section 510(k) of the Act, or similar application or submission for Marketing Authorization of a Product filed with a Regulatory Authority to obtain marketing approval for a biological, pharmaceutical or diagnostic product in that
country or in that group of countries. 

  

	1.31	“Party” means MERCK and AVEO, individually, and “Parties” shall mean MERCK and AVEO, collectively. 

  

	1.32	“Patent Rights” means any and all patents and patent applications in the Territory (which for the purposes of this Agreement shall be deemed to
include certificates of invention and applications for certificates of invention) and all divisions, continuations, continuations-in-part, reissues, renewals, extensions, supplementary protection certificates, and the like of any such patents and
patent applications and foreign equivalents thereof. 

  

	1.33	“Phase I Clinical Trial” means a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(a).

  

	1.34	“Phase II Clinical Trial” means a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(b).

  

	1.35	“Phase III Clinical Trial” means a human clinical trial in any country the results of which could be used to establish safety and efficacy of a Product
as a basis for a Marketing Application or that would otherwise satisfy the requirements of 21 CFR 312.21(c). 

  

	1.36	“Product” means any preparation in final form, either for sale by prescription, over-the-counter or any other method or for administration to human
patients in Clinical Trials, for any and all uses in the Field, which preparation contains a MERCK Compound. 

  

	1.37	“Prognostic Signature” means one or more genes, whether individually or any combination thereof, whose level of gene expression is identified in the
performance of the Research Plan as being correlated, either positively or negatively, with any Collaboration Model phenotype, level of oncogene induction, or treatment regimen, including but not limited to, compound dose, oncogene expression level,
tumor size, or tumor morphology. 

  

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	1.38	“Regulatory Authority” means any applicable government regulatory authority involved in granting approvals for the manufacturing, marketing,
reimbursement and/or pricing of a Product in the Territory, including, in the United States, the United States Food and Drug Administration and any successor governmental authority having substantially the same function. 

  

	1.39	“Related Party” means MERCK, its Affiliates, and permitted sublicensees (which term does not include distributors that are not Affiliates of
MERCK). 

  

	1.40	“Research Plan” has the meaning set forth in Section 2.1 

  

	1.41	“Research Program” means the research activities undertaken by the Parties hereto as set forth in Article 2 and Schedule 2.1.

  

	1.42	“Research Program Term” means the duration of the Research Program, and “Initial Research Program Term” shall mean the initial
two-year of the Research Program, and “Extended Research Program Term” shall mean an extension of the initial two-year of the Research Program as described more fully in Section 2.9.1. 

  

	1.43	“Territory” means all of the countries in the world, and their territories and possessions. 

  

	1.44	“Third Party” means an entity other than MERCK and its Related Parties, and AVEO and its Affiliates. 

  

	2.	RESEARCH PROGRAM 

  

	2.1	General 

 AVEO and
MERCK shall engage in the Research Program upon the terms and conditions set forth in this Agreement. The activities to be undertaken in the course of the Research Program are set forth in the Research Plan attached as Schedule 2.1, which may be
amended from time-to-time upon mutual written agreement by authorized representatives of the Parties (as so amended, the “Research Plan”). 
  

	2.2	Conduct of Research 

 AVEO and MERCK each shall use Commercially Reasonable Efforts to conduct the Research Program in good scientific manner, and in compliance in all material respects with all requirements of applicable laws, rules and regulations and all
applicable good laboratory practices to attempt to achieve their objectives efficiently and expeditiously. AVEO and MERCK each shall use Commercially Reasonable Efforts to proceed diligently with the work set out in the Research Program and shall
use Commercially Reasonable Efforts to allocate sufficient time, effort, equipment and facilities to the Research Program and to use personnel with sufficient skills and experience as are required to accomplish the Research Program in accordance
with the terms of this Agreement and Schedule 2.1. 
  

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 AVEO shall be entitled to utilize the service of Third Parties to perform its Research
Program activities only upon the prior written consent of MERCK (which consent shall not be unreasonably withheld) or as specifically set forth in Schedule 2.1. Notwithstanding any such consent, AVEO shall remain at all times fully liable for its
responsibilities under the Research Program. 
  

	2.3	Use of Research Funding 

 AVEO shall apply the research funding it receives from MERCK under this Agreement to carry out its Research Program activities in accordance with Schedule 2.1 and the terms and conditions of this Agreement. 
  

	2.4	Principal Scientists 

 The principal scientists for the Research Program are [**] for AVEO and [**] for MERCK. The Research Program and all work assignments to be performed by AVEO and MERCK shall be carried out under the direction and supervision of the
principal scientists noted above. Each Party shall notify the other Party as soon as practicable upon the changing of its principal scientist; provided, however, that in no event may AVEO assign a principal scientist other than the
individual identified above without first consulting with MERCK regarding such decision. 
  

	2.5	Joint Research Committee 

 The Parties hereby establish a committee to facilitate the Research Program as follows: 
  

	2.5.1	 Composition of the Joint Research Committee. The Research Program shall be conducted under the direction of a joint research committee
(the “Committee”) comprised of three (3) representatives of MERCK and three (3) representatives of AVEO. Each Party shall appoint its respective representatives to the Committee from time to time, and may substitute one or
more of its representatives, in its sole discretion, effective upon notice to the other Party of such change. These representatives shall have appropriate technical credentials, experience and knowledge, and ongoing familiarity with the Research
Program. Additional representatives or consultants may from time-to-time, by mutual consent of the Parties, be invited to attend Committee meetings, subject to such representative’s and consultant’s written agreement to comply with the
requirements of Section 4.1. Each Party shall bear its own expenses related to the attendance of such meetings by its representatives. The Committee shall be chaired by a representative of MERCK. Decisions of the Committee shall be made
unanimously by the members. In the event that the Committee cannot or does not, after good faith efforts, reach agreement on an issue, the issue will be referred to the appropriate MERCK employee designated by a MERCK Executive Vice President and
AVEO officer

  

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designated by AVEO’s Chief Executive Officer for resolution. If agreement is not reached at that level, then the issue will be referred to the appropriate MERCK Executive Vice President and
the AVEO Chief Executive Officer for resolution. If agreement is not reached at that level, then, the final decision shall be made by the President of the MERCK Research Laboratories division; provided, however, if agreement is not
reached with respect to the determination of criteria under Sections 5.3(a) or 5.3(b), such determination shall be made pursuant to Section 9.6. For purposes of clarity, any dispute as to whether a milestone in Section 5.3 has been
achieved shall be resolved pursuant to Section 9.6. 

 Notwithstanding any other provision of this
Section 2.5.1, no decision shall be made by the Committee or either Party which is inconsistent with the terms of this Agreement or imposes any obligation or burden upon the other Party that is outside the scope of this Agreement (including,
without limitation, the Research Plan, as mutually agreed in writing by the Parties). 
  

	2.5.2	Meetings of the Committee During the Research Program Term. The Committee shall meet in accordance with a schedule established by mutual written agreement
of the Parties, but no less frequently than once per Calendar Quarter, with the location for such meetings alternating between AVEO and MERCK facilities (or such other locations as is determined by the Committee). Alternatively, the Committee may
meet by means of teleconference, videoconference or other similar communications equipment. The Committee shall confer regarding the status of the Research Program, review relevant data, consider and advise on any technical issues that arise,
consider issues of priority, and review and advise on any budgetary and economic matters relating to the Research Program which is referred to the Committee. 

  

	2.6	Exchange of Information 

 Upon execution of this Agreement, and on an ongoing basis during the term of the Research Program, AVEO shall disclose to MERCK in English and in writing all AVEO Information and Inventions, Joint Information and Inventions, and MERCK
Information and Inventions (in each case, to the extent developed by AVEO) not previously disclosed. MERCK shall disclose to AVEO during the term of the Research Program all Joint Information and Inventions (to the extent developed by MERCK) not
previously disclosed, and may disclose to AVEO MERCK Information and Inventions and/or MERCK Know-How, as in MERCK’s opinion is necessary to AVEO solely in the performance of its obligations under the Research Plan. 
  

	2.7	Records and Reports 

  

	2.7.1	Records. Each Party shall maintain records, in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which shall
fully and properly reflect all work done and results achieved in the performance of the Research Program by such Party. 

  

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	2.7.2	Copies and Inspection of Records. MERCK shall have the right, during normal business hours and upon reasonable notice, to inspect and copy all such
records of AVEO referred to in Section 2.7.1; provided, however, that MERCK shall not have the right to review or copy records to the extent that such records contain information that does not relate to the Research Program and
AVEO, in lieu of providing such access to its records, shall provide copies of the relevant records to MERCK. MERCK shall maintain such records and the information disclosed therein in confidence in accordance with Section 4.1. MERCK shall have
the right to arrange for its employees and/or consultants involved in the activities contemplated hereunder to visit the offices and laboratories of AVEO and any of its Third Party contractors as permitted under Section 2.2 during normal
business hours and upon reasonable notice, and to discuss the Research Program work and its results in detail with the technical personnel and consultants of AVEO. Upon reasonable request by MERCK in cases in which inspection as described in this
Section 2.7.2 is not practicable, AVEO shall provide copies of the records described in Section 2.7.1 above. 

  

	2.7.3	Quarterly Reports. Within thirty (30) days following the end of each Calendar Quarter during the Research Program Term, each Party shall provide to
the other Party a progress report in English which shall describe the work performed to date on the Research Program, evaluate the work performed in relation to the goals of the Research Program and provide such other information as may be required
by the Research Program or reasonably requested by MERCK relating to the progress of the goals or performance of the Research Program. 

  

	2.8	Research Information and Inventions 

 The entire right, title and interest in: 
  

	 	(a)	AVEO Information and Inventions and Collaboration Model Information and Inventions shall be owned solely by AVEO; 

  

	 	(b)	MERCK Information and Inventions shall be owned solely by MERCK; and 

  

	 	(c)	Joint Information and Inventions shall be owned jointly by AVEO and MERCK, and subject to Article 7 hereof, each of AVEO and MERCK may freely use, exploit and license
such Joint Information and Inventions without any requirement of consent from or any duty to account to the other Party. 

 AVEO shall promptly disclose to MERCK in writing AVEO’s development, making, conception and/or reduction to practice of AVEO Information and Inventions, Joint Information and Inventions, MERCK Information and Inventions, and MERCK
Compound Improvements during meetings of the Committee. MERCK shall promptly disclose to AVEO in writing MERCK’s development, making, conception and/or reduction to practice of MERCK Information and Inventions and Joint Information and
Inventions during meetings of the Committee. 
  

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	2.9	Research Program Term 

  

	2.9.1	Term. Except as otherwise provided herein, the term of the Research Program shall commence on the Effective Date and continue for a period of two
(2) years (“Initial Research Program Term”). The Parties may extend the term of the Research Program by mutual written agreement of the authorized representatives of the Parties at least ninety (90) days prior to the
two-year anniversary of the Effective Date and, thereafter, at least ninety (90) days prior to each subsequent anniversary (each, an “Extended Research Program Term”), and shall, in such case, amend Schedule 2.1 as applicable.

  

	2.9.2	Expiration or Termination of Research Program. Notwithstanding anything contained in this Agreement to the contrary, MERCK shall have the right to
terminate the Research Program at any time during the Research Program Term in its sole discretion by giving one hundred and twenty (120) days’ advance written notice to AVEO. In the event of termination of the Research Program under this
Section 2.9.2 prior to the expiration of the Initial Research Program Term or upon the expiration of the Initial Research Program Term or any Extended Research Program Term, or the termination of any Extended Research Program Term under this
Section 2.9.2: (i) MERCK shall pay all amounts then due and owing as of the termination date of the Research Program; (ii) subject to the remaining terms of the Agreement, the licenses granted to MERCK pursuant to Section 3.1
shall continue in full force and effect, provided, however, that the license granted to MERCK pursuant to Sections 3.1(e) and 3.1(f) shall terminate as of the expiration or termination of the Research Program Term for any reason; and
(iii) except for the provisions of this Article 2, the rights and obligations of the Parties under this Agreement shall continue after the date of such termination of the Research Program, but subject to the modifications set forth in this
Section 2.9.2. 

  

	2.10	MERCK Compounds 

 MERCK shall provide AVEO with sufficient quantities of the MERCK Compounds which MERCK elects to make available pursuant to the terms of this Agreement solely for the purpose of enabling AVEO to perform its activities under the Research
Program in accordance with the terms of this Agreement and the Research Plan. AVEO shall not transfer, deliver or disclose to any Third Party the MERCK Compounds and any derivatives, analogs, modifications or components thereof, without the prior
written approval of MERCK. Any unused MERCK Compounds and any derivatives, analogs, modifications or components thereof shall be, at MERCK’s option, either returned to MERCK, or destroyed in accordance with instructions by MERCK. 
  

	2.11	Compliance 

 AVEO
and MERCK shall conduct the Research Program in accordance with all applicable laws, rules and regulations, including, without limitation, all current governmental regulatory requirements concerning Good Laboratory Practices. In addition, if animals
are used in research hereunder, AVEO and MERCK will comply with the Animal Welfare Act or any other

  

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applicable local, state, national and international laws or regulations relating to the care and use of laboratory animals. The Parties are each encouraged to use the highest standards, such as
those set forth in the Guide for the Care and Use of Laboratory Animals (NRC, 1996), for the humane handling, care and treatment of such research animals. Any animals which are used in the course of the Research Program, or products derived from
those animals, such as eggs or milk, will not be used for food purposes, nor will these animals be used for commercial breeding purposes. AVEO and MERCK shall notify each other in writing of any deviations from applicable regulatory or legal
requirements. Each Party hereby certifies that it will not and has not employed or otherwise used in any capacity the services of any person debarred under Section 21 USC 335a in performing any services hereunder. 
  

	2.12	Exclusive Efforts 

 During the Research Program Term, AVEO shall work exclusively (even as to AVEO itself) with MERCK in efforts to use the Collaboration Models in connection with the MERCK Compounds, including Prognostic Signatures relating to the MERCK
Compounds. 
  

	3.	LICENSE; EXCHANGE OF INFORMATION; DEVELOPMENT AND COMMERCIALIZATION 

  

	3.1	License Grant 

  

	 	(a)	AVEO hereby grants to MERCK an exclusive license (even as to AVEO), with a right to sublicense, in the Territory under AVEO Patent Rights for any and all uses in the
Field, including but not limited to: (i) to research, develop, make, have made, use, offer to sell, sell and/or import MERCK Compounds and Product(s), and (ii) to research, develop, make, have made, use, offer to sell, sell and/or import
any invention claimed in or covered by AVEO Patent Rights. 

  

	 	(b)	AVEO hereby grants to MERCK an exclusive license (even as to AVEO), with a right to sublicense, in the Territory under AVEO Information and Inventions for any and all
uses in the Field, including but not limited to: (i) to research, develop, make, have made, use, offer to sell, sell and/or import MERCK Compounds, Product(s), and (ii) to otherwise carry out activities or exercise rights contemplated
under this Agreement. 

  

	 	(c)	AVEO shall retain the rights under the AVEO Patent Rights and AVEO Information and Inventions in the Field necessary to carry out its obligations or exercise its rights
under the Research Program. 

  

	 	(d)	MERCK hereby grants to AVEO a non-exclusive license, without a right to sublicense, under MERCK Patent Rights and MERCK Information and Inventions to use MERCK
Compounds, MERCK Information and Inventions, and MERCK Compound Improvements solely for purposes of carrying out its obligations or exercise its rights as specifically set forth in the Research Plan during the Research Program Term.

  

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	 	(e)	AVEO hereby grants to MERCK a non-exclusive license, without a right to sublicense, in the Territory under Collaboration Model Information and Inventions solely for
purposes of carrying out its obligations or exercising its rights as specifically set forth in the Research Plan during the Research Program Term. Notwithstanding the foregoing or anything to the contrary in this Agreement, AVEO shall have no
obligation to disclose or otherwise provide to MERCK any Collaboration Model Information and Inventions except to the extent specifically set forth in the Research Plan. 

  

	 	(f)	To the extent not covered by the AVEO Patent Rights granted to MERCK under Section 3.1(a), AVEO hereby grants to MERCK a non-exclusive license, without a right to
sublicense, in the Territory, under all Patent Rights that are Controlled by AVEO and are necessary or useful to MERCK in connection with the Research Program, solely for purposes of carrying out its obligations or exercising its rights as
specifically set forth in the Research Plan during the Research Program Term. 

  

	3.2	Covenant Not to Sue 

 In the event the making, having made, use, offer for sale, sale or import by MERCK or MERCK’s Related Parties of any MERCK Compound(s) or Product(s) would infringe during the term of this Agreement a claim of any AVEO Responder Patent
Rights (as defined below) and which Patent Rights are not covered by the grants in Section 3.1(a), 3.1(e) or 3.1(f), AVEO hereby covenants not to sue MERCK or its Related Parties under such Patent Rights solely for MERCK to develop, make, have
made, use, sell, offer for sale or import such MERCK Compound(s) or Product(s) in the Territory and in the Field. For purposes of this Section 3.2, the term “AVEO Responder Patent Rights” means any Patent Rights that
(a) are Controlled by AVEO, (b) claim or cover any (i) Prognostic Signature, (ii) use of any Collaboration Models to determine any Prognostic Signature, or (iii) composition of matter or method of use of any MERCK
Compound(s) or Product(s) and (c) have an effective filing date on or before the tenth anniversary of the Effective Date. AVEO agrees not to transfer any Aveo Responder Patent Right unless the transferee agrees to be bound by this
Section 3.2 as if it were AVEO. 
  

	3.3	No Implied Licenses 

 Except as specifically set forth in this Agreement, neither Party shall acquire any license or other intellectual property interest, by implication or otherwise, in any Information disclosed to it under this Agreement or under any patents
or patent applications Controlled by the other Party or its Affiliates. For purposes of clarity, MERCK shall not acquire any license or other intellectual property interest, by implication or otherwise, in any Collaboration Model Information and
Inventions. 
  

 13 

	4.	CONFIDENTIALITY AND PUBLICATION 

  

	4.1	Nondisclosure Obligation 

 All Information disclosed by one Party to the other Party hereunder shall be maintained in confidence by the receiving Party and shall not be disclosed to any Third Party or used for any purpose except as set forth herein without the prior
written consent of the disclosing Party, except to the extent that such Information: 
  

	 	(a)	is known by the receiving Party at the time of its receipt, and not through a prior disclosure by the disclosing Party, as documented by the receiving Party’s
business records; 

  

	 	(b)	is in the public domain through no fault of the receiving Party; 

  

	 	(c)	is subsequently disclosed to the receiving Party by a Third Party who may lawfully do so and is not under an obligation of confidentiality to the disclosing Party;

  

	 	(d)	is developed by the receiving Party independently of Information received from the disclosing Party, as documented by the receiving Party’s business records;

  

	 	(e)	is disclosed to governmental or other regulatory agencies in order to obtain patents or to gain or maintain approval to conduct clinical trials or to market Product,
but such disclosure may be only to the extent reasonably necessary to obtain patents or authorizations; or 

  

	 	(f)	is deemed necessary (i) by MERCK to be disclosed to Related Parties, agents, consultants, and/or other Third Parties for development (including regulatory
approvals), manufacturing and/or marketing of a Product (or for such parties to determine their interest in performing such activities) in accordance with this Agreement, or (ii) by AVEO to be disclosed to such Third Parties that are permitted
pursuant to Section 2.2 to perform its Research Program activities, in either case on the condition that such Third Parties agree to be bound by the confidentiality and non-use obligations contained this Agreement, provided the term of
confidentiality for such Third Parties shall be no less than seven (7) years. 

 Any combination of features
or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general public or in the rightful possession of the receiving Party unless the combination itself and
principle of operation are published or available to the general public or in the rightful possession of the receiving Party. 
  

 14 

 If a Party is required by judicial or administrative process to disclose Information that is
subject to the non-disclosure provisions of this Section 4.1 or Section 4.2, such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit
the disclosure obligations. Information that is disclosed by judicial or administrative process shall remain otherwise subject to the confidentiality and non-use provisions of this Section 4.1 and Section 4.2, and the Party disclosing
Information pursuant to law or court order shall take all steps reasonably necessary, including without limitation obtaining an order of confidentiality, to ensure the continued confidential treatment of such Information. 
  

	4.2	Publication 

 MERCK
and AVEO each acknowledge the other Party’s interest in publishing the results of its research in order to obtain recognition within the scientific community and to advance the state of scientific knowledge. Each Party also recognizes the
mutual interest in obtaining valid patent protection and in protecting business interests and trade secret information. Consequently, except for disclosures permitted pursuant to Section 4.1, either Party, its employees or consultants wishing
to make a publication arising from the conduct of the Research Program shall deliver to the other Party a copy of the proposed written publication or an outline of an oral disclosure at least sixty (60) days prior to submission for publication
or presentation; provided, however, that AVEO shall have no right to publish any results of the Research Program that relate to MERCK Compounds, including any diagnostic uses thereof, methods of use, combination therapies comprising a
MERCK Compound, or any Prognostic Signatures capable of predicting response (including lack of response) to a MERCK Compound. The reviewing Party shall have the right (a) to propose modifications to the publication or presentation for patent
reasons, trade secret reasons or business reasons, or (b) to request a reasonable delay in publication or presentation in order to protect patentable information. If the reviewing Party requests a delay, the publishing Party shall delay
submission or presentation for a period of ninety (90) days to enable patent applications protecting each Party’s rights in such information to be filed in accordance with Article 7 below. Upon expiration of such ninety (90) days, the
publishing Party shall be free to proceed with the publication or presentation. If the reviewing Party requests modifications to the publication or presentation, the publishing Party shall edit such publication to prevent disclosure of trade secret
or proprietary business information prior to submission of the publication or presentation. 
  

	4.3	Publicity/Use of Names 

 No disclosure of the existence or the terms of this Agreement may be made by either Party, and neither Party shall use the name, trademark, trade name or logo of the other Party, its Affiliates or their respective employees in any
publicity, promotion, news release or disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other Party, except as may be required by law, except as provided in Section 4.3(a),
(b) or (c). 
  

 15 

	 	(a)	Either Party shall be permitted to disclose the existence and terms of this Agreement to the extent required, in the reasonable opinion of such Party’s legal
counsel, to comply with applicable laws, including without limitation the rules and regulations promulgated by the United States Securities and Exchange Commission or any other governmental agency. Notwithstanding the foregoing, before disclosing
this Agreement or any of the terms hereof pursuant to this Section 4.3(a), the Parties will consult with one another on the terms of this Agreement to be redacted in making any such disclosure. If a Party discloses this Agreement or any of the
terms hereof in accordance with this Section 4.3(a), such Party agrees, at its own expense, to seek confidential treatment of the portions of this Agreement or such terms, as may be reasonably requested by the other Party.

  

	 	(b)	Either Party may also disclose the existence and terms of this Agreement to potential acquirors, investors or lenders of such Party, as a part of their due diligence
investigations, provided that such potential acquirors, investors or lenders have agreed in writing to keep the terms of this Agreement confidential and to use such confidential information solely for the purpose permitted pursuant to this
Section 4.3(b), provided, however, that AVEO shall not disclose the Research Plan or any portion thereof or any MERCK Compound including the structure thereof to such potential investors. Further, either Party may freely disclose
any information that has been previously approved for disclosure by the other Party. 

  

	 	(c)	The Parties hereby acknowledge that, following the Effective Date, AVEO may at its discretion issue a press release regarding this Agreement, provided that such release
will be subject to MERCK’s prior review and written approval. 

  

	5.	PAYMENTS AND REPORTS 

  

	5.1	Research Program Funding 

 In consideration for AVEO’s performance of its obligations under the Research Program, upon the terms and conditions contained herein, MERCK shall pay AVEO an amount equal to Four Million U.S. Dollars ($US 4,000,000.00), of which Two
Million U.S. Dollars ($US 2,000,000.00) shall be payable during each of the two (2) years during the Initial Research Program Term. The payments shall be made in quarterly installments of Five Hundred Thousand U.S. Dollars ($US 500,000.00)
within thirty (30) days after the end of each Calendar Quarter during the Initial Research Program Term, provided, however, that (a) the first of such payments shall be payable within thirty (30) days after the Effective Date
of this Agreement, and (b) the amount of the first and last of such payments shall be prorated based on the number of days remaining in the then-current Calendar Quarter. 
  

	5.2	Equity Purchase 

 MERCK hereby agrees to purchase Two Million Dollars (US$2,000,000.00) of Series C Preferred Stock of AVEO within thirty (30) days of the Effective Date of this Agreement pursuant to the terms of the Series C Convertible Preferred Stock
Purchase Agreement entered into by the Parties on April 11, 2005. 
  

 16 

	5.3	Milestone Payments 

 Subject to the terms and conditions of this Agreement, MERCK shall pay to AVEO the following milestone payments: 
  

	 	(a)	[**] 

  

	 	(b)	[**] 

  

	 	(c)	[**] 

  

	 	(d)	[**] 

  

	 	(e)	[**] 

  

 17 

 If MERCK ceases development of a MERCK Compound with respect to a particular Indication (a
“Failed Indication”), and MERCK initiates or continues development of such MERCK Compound with respect to one or more other Indications, then any of the foregoing milestone payments previously made by MERCK in connection with such
Failed Indication shall be credited against any subsequent or repeated achievement of such milestone based on additional Indications for the same MERCK Compound. 
 MERCK shall pay each of the above milestones only once for each MERCK Compound and Control Compound (as applicable), regardless of the number of Indications for which such compound is developed.

 MERCK shall notify AVEO in writing within thirty (30) days following the achievement of each milestone, and shall make
the appropriate milestone payment within thirty (30) days after the achievement of such milestone. The milestone payment shall be payable only upon the initial achievement of such milestone with respect to any particular MERCK Compound or
Control Compound (as applicable) and no amounts shall be due hereunder for subsequent or repeated achievement of such milestone with respect to such compound. 
  

	5.4	Payment Exchange Rate 

 All payments to be made by MERCK to AVEO under this Agreement shall be made in United States dollars and may be paid by check made to the order of AVEO or bank wire transfer in immediately available funds to such bank account in the United
States as may be designated in writing by AVEO from time-to-time. 
  

	5.5	Income Tax Withholding 

 If laws, rules or regulations require withholding of income taxes or other taxes imposed upon payments set forth in this Article 5, MERCK shall make such withholding payments as may be required and shall subtract such withholding payments
from the payments set forth in this Article 5. MERCK shall submit appropriate proof of payment of the withholding taxes to AVEO within a reasonable period of time. 
  

	6.	REPRESENTATIONS AND WARRANTIES 

  

	6.1	Representations and Warranties of AVEO 

 AVEO represents and warrants to MERCK that as of the Effective Date: 
  

	 	(a)	it has the full right, power and authority to enter into this Agreement, to perform the Research Program and to grant the licenses granted under Article 3 hereof;

  

	 	(b)	it has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in AVEO Patent Rights or AVEO Information and Inventions;

  

 18 

	 	(c)	to the best of AVEO’s knowledge, it is the sole and exclusive owner of the AVEO Patent Rights and the AVEO Information and Inventions, all of which are (or shall
be, as applicable) free and clear of any liens, charges and encumbrances, and no other person, corporate or other private entity, or governmental entity or subdivision thereof, has or shall have any claim of ownership whatsoever with respect to the
AVEO Patent Rights or the AVEO Information and Inventions; 

  

	 	(d)	there are no claims, judgments or settlements against or owed by AVEO and no pending or threatened claims or litigation relating to the AVEO Patent Rights and AVEO
Information and Inventions; and 

  

	 	(e)	to the best of AVEO’s knowledge, the activities of AVEO pursuant to the Research Plan do not infringe patents issued to any Third Party. 

As used in this Section 6.1, the phrase ‘best of AVEO’s knowledge’ does not require that AVEO conduct any special
inquiry or patent searches, or obtain any patent opinions, with respect to the matter which is the subject of the representation and warranty. 
  

	6.2	Representations and Warranties of MERCK 

 MERCK represents and warrants to AVEO that as of the Effective Date: 
  

	 	(a)	it has the full right, power and authority to enter into this Agreement and to fulfill its obligations hereunder; and 

  

	 	(b)	all necessary consents, approvals and authorizations required to be obtained by MERCK in connection with the execution, delivery and performance of this Agreement have
been or shall be obtained. 

  

	6.3	No Warranties 

 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, THE PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND THE PARTIES HEREBY DISCLAIM ALL IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT,
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 
  

	6.4	Indemnification 

 MERCK agrees to defend AVEO and its Affiliates at its cost and expense, and will indemnify and hold AVEO and its Affiliates and their respective directors, officers, employees and agents (the “AVEO Indemnified Parties”)
harmless from and against any losses, costs, damages, fees or expenses (“Losses”) arising directly out of any Third Party claim to the extent such Losses are attributable to personal injury or death from the development,
manufacture, use, sale or other disposition of the MERCK Compounds or Product(s) by MERCK and/or its Related Parties or collaborators. In the event of any such claim against the

  

 19 

 
AVEO Indemnified Parties by any Third Party, AVEO shall promptly notify MERCK in writing of the claim and MERCK shall manage and control, at its sole expense, the defense of the claim and its
settlement. The AVEO Indemnified Parties shall cooperate with MERCK and may, at their option and expense, be represented in any such action or proceeding. MERCK shall not be liable for any litigation costs or expenses incurred by the AVEO
Indemnified Parties without MERCK’s prior written authorization. In addition, MERCK shall not be responsible for the indemnification of any AVEO Indemnified Party arising from any negligent or intentional acts by such AVEO Indemnified Party, or
as the result of any settlement or compromise by the AVEO Indemnified Parties without MERCK’s prior written consent. 
  

	6.5	AVEO Patent Rights and Third Party License Agreements 

 AVEO represents and warrants that, during the term of the Agreement, it shall reasonably promptly update Schedule 1.4 to reflect any and all AVEO Patent Rights. In addition, AVEO shall promptly notify
MERCK in writing if it receives a notice of breach or default under any of the license agreements identified on Schedule 1.4. 
  

	7.	PATENT PROVISIONS 

  

	7.1	Filing, Prosecution and Maintenance of Patents  

  

	 	(a)	Responsibility. 

  

	 	(i)	MERCK shall have the exclusive right and option, at MERCK’s expense, to file and prosecute patent applications and to maintain patents included in the MERCK Patent
Rights. 

  

	 	(ii)	MERCK shall have the first right and option, at MERCK’s expense, to file and prosecute patent applications and to maintain patents included in the Joint Patent
Rights. 

  

	 	(iii)	AVEO shall have the first right and option, at AVEO’s expense, to file and prosecute patent applications and to maintain patents included in the AVEO Patent
Rights. 

  

	 	(b)	 Procedures. In the case of Joint Patent Rights and AVEO Patent Rights, the Party that is responsible for the filing, prosecution and maintenance
of the applicable Patent Right as set forth in Section 7.1(a)(ii) or (iii) (as applicable, the “Filing Party”) shall give the other Party (as applicable, the “Non-Filing Party”) an opportunity to review
the text of the application before filing, shall consult with the Non-Filing Party with respect thereto, and shall supply the Non-Filing Party with a copy of the application as filed, together with notice of its filing date and serial number. The
Filing Party shall keep the Non-Filing Party advised of the status of the actual and prospective patent filings and upon the Non-Filing Party’s request shall provide advance copies of any papers related to the filing, prosecution and
maintenance of such patents. The

  

 20 

	 	 
Filing Party shall promptly give notice to the Non-Filing Party of the allowance, grant, lapse, revocation, surrender, invalidation or abandonment of any Patent Rights for which such Filing Party
is responsible. With respect to all filings hereunder, the Filing Party shall be responsible for payment of all costs and expenses related to such filings. 

  

	 	(c)	Step-In Rights. If the Filing Party declines to file or to maintain prosecution of any such patent application or to maintain any such patents for which such
Filing Party is responsible as set forth in Section 7.1(a)(ii) or (iii), as applicable, it shall give the Non-Filing Party reasonable notice to this effect and thereafter the Non-Filing Party may, at its sole discretion upon written notice to
the Filing Party, file and/or prosecute such patent applications and maintain such patents, at its own expense. If the Non-Filing Party elects to continue prosecution or maintenance or to file based on the Filing Party’s election not to file
pursuant to this Section 7.1, the Filing Party shall execute such documents and perform such acts at the Non-Filing Party’s expense as may be reasonably necessary for the Non-Filling Party to perform such prosecution or maintenance or
filing. 

  

	7.2	Interference, Opposition, Reexamination and Reissue 

  

	 	(a)	AVEO shall, within ten (10) days of learning of such event, inform MERCK of any request for, or filing or declaration of, any interference, opposition, reissue or
reexamination relating to AVEO Patent Rights. In addition, each Party shall, within ten (10) days of learning of such event, inform the other Party of any request for, or filing or declaration of, any interference, opposition, reissue or
reexamination relating to the Joint Patent Rights. MERCK and AVEO shall thereafter consult and cooperate fully to determine a course of action (including allocation of costs) with respect to any such proceeding. The non-responding party shall have
the right to review and approve (such approval not to be unreasonably withheld, conditioned or delayed) any submission to be made in connection with such proceeding. 

  

	 	(b)	AVEO shall not initiate any reexamination, interference or reissue proceeding relating to AVEO Patent Rights without prior consultation with MERCK, and neither Party
shall initiate any reexamination, interference or reissue proceeding relating to Joint Patent Rights without the prior written consent of the other Party, which consent shall not be unreasonably withheld. 

  

	 	(c)	In connection with any interference, opposition, reissue, or reexamination proceeding relating to AVEO Patent Rights or Joint Patent Rights, MERCK and AVEO will
cooperate fully and will provide each other with any information or assistance that either may reasonably request. AVEO shall keep MERCK informed of developments in any such action or proceeding, including, to the extent permissible by law,
consultation on and approval of any settlement, the status of any settlement negotiations and the terms of any offer related thereto. 

  

	 	(d)	AVEO shall bear the expense of any interference, opposition, reexamination, or reissue proceeding relating to AVEO Patent Rights. 

  

 21 

	7.3	Enforcement and Defense 

  

	 	(a)	AVEO shall give MERCK notice of either (i) any suspected infringement of AVEO Patent Rights, or (ii) any misappropriation or misuse of AVEO Information and
Inventions, that may come to AVEO’s attention. Each Party shall give the other Party notice of either (i) any suspected infringement of Joint Patent Rights, or (ii) any misappropriation or misuse of Joint Information and Inventions,
that may come to such Party’s attention. MERCK and AVEO shall thereafter consult and cooperate fully to determine a course of action, including but not limited to the commencement of legal action by either or both MERCK and AVEO, to terminate
the applicable infringement or misappropriation under AVEO Patent Rights, AVEO Information and Inventions, Joint Patent Rights or Joint Information and Inventions. The Parties agree to the following allocation of responsibility with respect to
rights to initiate and prosecute such legal actions: 

  

	 	(i)	With respect to the Joint Patent Rights or Joint Information and Inventions, MERCK, upon notice to AVEO, shall have the first right to initiate and prosecute such legal
action at its own expense and in the name of AVEO and MERCK; provided, however, that (1) AVEO shall have a right, at its sole option, to fund up to [**] percent ([**]%) of the costs and expenses incurred by MERCK in such legal
action, and (2) the Parties shall mutually agree on the defense of any declaratory judgment action relating to AVEO Patent Rights, AVEO Information and Inventions, Joint Patent Rights or Joint Information and Inventions. MERCK shall promptly
inform AVEO if it elects not to exercise such first right and AVEO shall thereafter, upon consultation with MERCK, have the right to either initiate and prosecute such action or to control the defense of such declaratory judgment action in the name
of AVEO and, if necessary, MERCK, at its own expense; provided, however, (1) MERCK shall have a right, at its sole option, to fund up to [**] percent ([**]%) of the costs and expenses incurred by AVEO in such legal action, and
(2) that the Parties shall mutually agree on the defense of any declaratory judgment action relating to AVEO Patent Rights, AVEO Information and Inventions, Joint Patent Rights or Joint Information and Inventions. Each Party shall have the
right to be represented by counsel of its own choice, at its own expense. 

  

	 	(ii)	With respect to the AVEO Patent Rights or AVEO Information and Inventions, AVEO, upon notice to MERCK, shall have the first right to initiate and prosecute such legal
action at its own expense and in the name of AVEO and MERCK, subject to and in accordance with terms and conditions that are reciprocal to those set forth in subsection (A) above with respect to the Joint Patent Rights and Joint Information and
Inventions. 

  

 22 

	 	(b)	Any recovery obtained by either or both MERCK and AVEO in connection with or as a result of any action under the AVEO Patent Rights or Joint Patent Rights contemplated
by this Section 7.3, whether by settlement or otherwise, shall be shared in order as follows: 

  

	 	(i)	the Party which initiated and prosecuted the action shall recoup all of its costs and expenses incurred in connection with the action; 

  

	 	(ii)	the other Party shall then, to the extent possible, recover its costs and expenses incurred in connection with the action; and 

  

	 	(iii)	the amount of any recovery remaining shall then be allocated between the Parties on a pro rata basis in proportion to the amount of costs and expenses incurred
by each such Party in connection with the initiation and/or prosecution of such action. 

  

	 	(c)	AVEO shall inform MERCK of any certification regarding any AVEO Patent Rights it has received pursuant to either 21 U.S.C. §§355(b)(2)(A)(iv) or
(j)(2)(A)(vii)(IV) or its successor provisions, or any similar provisions in a country in the Territory other than the United States, and shall provide MERCK with a copy of such certification within five (5) days of receipt. AVEO’s and
MERCK’s rights with respect to the initiation and prosecution of any legal action as a result of such certification or any recovery obtained as a result of such legal action shall be as defined in paragraphs 7.4(a)-(d) hereof;
provided, however, that AVEO shall exercise its first right to initiate and prosecute any action and shall inform MERCK of such decision within ten (10) days of receipt of the certification, after which time MERCK shall have the
right to initiate and prosecute such action. Regardless of which Party has the right to initiate and prosecute such action, both Parties shall, as soon as practicable after receiving notice of such certification, convene and consult with each other
regarding the appropriate course of conduct for such action. The non-initiating Party shall have the right to be kept fully informed and participate in decisions regarding the appropriate course of conduct for such action, and the right to join and
participate in such action. 

  

	7.4	Assignments 

  

	 	(a)	MERCK Information and Inventions. AVEO shall assign and hereby assigns to MERCK all right, title and interest in and to any Invention under MERCK Information and
Inventions. AVEO shall execute such documents and perform such acts as may be reasonably necessary to effect an assignment to MERCK in a timely manner. Any patents or patent applications so assigned shall be considered MERCK Patents. In connection
with any filing, prosecution, maintenance, interference, opposition, reissue or reexamination proceeding relating to MERCK Patents, AVEO agrees to cooperate fully and to provide MERCK with any information or assistance that MERCK reasonably
requests, in each case, at MERCK’s expense. 

  

 23 

	 	(b)	Joint Information and Inventions. 

  

	 	(i)	AVEO hereby assigns and agrees to assign to MERCK a one-half undivided interest in and to any and all Joint Information and Inventions and Joint Patent Rights that are
solely developed or invented by AVEO or other persons not employed by MERCK acting on behalf of AVEO. 

  

	 	(ii)	MERCK hereby assigns and agrees to assign to AVEO a one-half undivided interest in and to any and all Joint Information and Inventions and Joint Patent Rights that are
solely developed or invented by MERCK or other persons not employed by AVEO acting on behalf of MERCK. 

  

	 	(iii)	Each Party shall execute such documents and perform such acts as may be reasonably necessary to effect the assignments to the other Party in a timely manner set forth
in this Section 7.4(b). In connection with any filing, prosecution, maintenance, interference, opposition, reissue or reexamination proceeding relating to Joint Patent Rights or MERCK Patent Rights, each Party agrees to cooperate fully and to
provide the other Party with any information or assistance that such other Party reasonably requests. 

  

	8.	TERM AND TERMINATION 

  

	8.1	Term and Expiration 

 This Agreement shall be effective as of the Effective Date and unless terminated earlier pursuant to Sections 8.2 or 8.3 below, this Agreement shall continue in effect until expiration of all payment obligations hereunder. Upon expiration
of this Agreement, MERCK’s licenses pursuant to Section 3.1 (other than Sections 3.1(e) and 3.1(f)) shall become fully paid-up, perpetual licenses. 
  

	8.2	Termination by MERCK 

 Notwithstanding anything contained herein to the contrary, MERCK shall have the right to terminate this Agreement at any time in its sole discretion by giving one hundred and twenty (120) days’ advance written notice to AVEO. No
later than thirty (30) days after the effective date of such termination, each Party shall return or cause to be returned to the other Party all Information in tangible form received from the other Party and all copies thereof; provided,
however, that each Party may retain any Information reasonably necessary for such Party’s continued practice under any license(s) which do not terminate pursuant to this Section, and may keep one copy of Information received from the
other Party in its confidential files for record purposes.

  

 24 

 
In the event of termination under this Section 8.2: (i) each Party shall pay all amounts then due and owing as of the termination date; (ii) subject to the remaining terms of the
Agreement, the licenses granted to MERCK pursuant to Section 3.1 shall continue in full force and effect, provided, however, that the licenses granted to MERCK pursuant to Sections 3.1(e) and 3.1(f) shall terminate as of the
expiration or termination of the Research Program Term for any reason; and (iii) except for the surviving provisions set forth in Section 8.4 hereof, the rights and obligations of the parties hereunder shall terminate as of the date of
such termination. 
  

	8.3	Termination for Cause 

  

	8.3.1	Cause for Termination. This Agreement may be terminated at any time during the term of this Agreement: 

  

	 	(a)	upon written notice by either party if the other Party is in breach of its material obligations hereunder by causes and reasons within its control and has not cured
such breach within [**] days after notice requesting cure of the breach; provided, however, that in the event of a good faith dispute with respect to the existence of a material breach, the [**] day cure period shall be tolled until
such time as the dispute is resolved pursuant to Section 9.6 hereof; or 

  

	 	(b)	by either Party upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment of a substantial portion of
the assets for the benefit of creditors by the other Party; provided, however, that in the case of any involuntary bankruptcy proceeding such right to terminate shall only become effective if the Party consents to the involuntary
bankruptcy or such proceeding is not dismissed within ninety (90) days after the filing thereof. 

  

	8.3.2	Effect of Termination for Cause on License 

  

	 	(a)	If MERCK terminates this Agreement under Section 8.3.1(a) or (b), (i) MERCK’s licenses pursuant to Section 3.1 (other than Sections 3.1(e) and
3.1(f)) shall become perpetual licenses; and (ii) AVEO shall, within thirty (30) days after the effective date of such termination, return or cause to be returned to MERCK all Products and MERCK Compounds, all Information in tangible form,
and all substances or compositions delivered or provided by MERCK, as well as any other material provided by MERCK in any medium (excluding, in each case, Joint Information and Inventions). If AVEO terminates this Agreement under
Section 8.3.1(a), MERCK’s licenses pursuant to Section 3.1 shall terminate as of such termination date and MERCK shall, within thirty (30) days after the effective date of such termination, return or cause to be returned to AVEO
all Information in tangible form, and substances or compositions delivered or provided by AVEO, as well as any other Information and material provided by AVEO in any medium (excluding, in each case, Joint Information and Inventions).

  

 25 

	 	(b)	If this Agreement is terminated by MERCK pursuant to Section 8.3.1(b) due to the rejection of this Agreement by or on behalf of AVEO under Section 365 of the
United States Bankruptcy Code (the “Code”), all licenses and rights to licenses granted under or pursuant to this Agreement by AVEO to MERCK are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code,
licenses of rights to “intellectual property” as defined under Section 101(35A) of the Code. The Parties agree that MERCK, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and
elections under the Code, and that upon commencement of a bankruptcy proceeding by or against AVEO under the Code, MERCK shall be entitled to a complete duplicate of or complete access to (as MERCK deems appropriate), any such intellectual property
and all embodiments of such intellectual property. Such intellectual property and all embodiments thereof shall be promptly delivered to MERCK (i) upon any such commencement of a bankruptcy proceeding upon written request therefore by MERCK,
unless AVEO elects to continue to perform all of its obligations under this Agreement (ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of AVEO upon written request therefore by MERCK.

 The foregoing provisions of Section 8.3.2(b) are without prejudice to any rights MERCK may have arising
under the Code or other applicable law. 
  

	8.4	Effect of Expiration or Termination; Survival 

 Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. Any expiration or termination of this Agreement shall be
without prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to expiration or termination, including, without limitation, the obligation to pay amounts that become due hereunder prior to such
expiration or termination. The provisions of Article 4 shall survive the expiration or termination of this Agreement and shall continue in effect for seven (7) years. In addition, (a) the provisions of Articles 1, 6, 7 and 8, and 9 shall
survive any expiration or termination of this Agreement; and (b) the provisions of Article 5 shall survive any expiration or termination of this Agreement other than a termination of this Agreement by MERCK pursuant to Section 8.3.1(a).

  

	9.	MISCELLANEOUS 

  

	9.1	Force Majeure 

 Neither Party shall be held liable to the other Party nor be deemed to have defaulted under or breached the Agreement for failure or delay in performing any obligation under the Agreement when such failure or delay is caused by or results
from causes beyond the reasonable control of the affected Party including, but not limited to, embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions, strikes, lockouts or other labor
disturbances, fire,

  

 26 

 
floods, or other acts of God, or acts, omissions or delays in acting by any governmental authority or the other Party. The affected Party shall notify the other Party of such force majeure
circumstances as soon as reasonably practical, and shall promptly undertake all reasonable efforts necessary to cure such force majeure circumstances. 
  

	9.2	Assignment/Change of Control 

  

	 	(a)	Except as provided in this Section 9.2, this Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or
transferred, by either Party without the consent of the other Party. 

  

	 	(b)	MERCK may, without consent of AVEO, assign this Agreement and its rights and obligations hereunder in whole or in part to an Affiliate of MERCK or in connection with a
Change of Control. 

  

	 	(c)	AVEO may, without MERCK’s consent, assign this Agreement and its rights and obligations hereunder to a wholly-owned subsidiary of AVEO or in connection with a
Change of Control; provided, however, that in the event of a Major Pharma Change of Control, AVEO shall provide written notice to MERCK at least thirty (30) days prior to the completion of such Major Pharma Change of Control and
MERCK shall have the right, at its election (such election to be made within ninety (90) days after such notice) to implement some or all of the following revisions to this Agreement: 

  

	 	(i)	to the extent that provisions of the Agreement require MERCK to provide MERCK Know-How and other information regarding the Research Program to AVEO, such provisions
shall be automatically amended to no longer impose such an obligation on MERCK; 

  

	 	(ii)	the provisions of the Agreement providing for the participation of AVEO in decision-making through the Committee shall be of no further force and effect; and

  

	 	(iii)	MERCK shall be entitled to terminate the Research Program as provided in Section 2.9.2. 

  

	 	(d)	Any attempted assignment not in accordance with this Section 9.2 shall be void. 

  

	9.3	Severability 

 If
any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s)
with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement. 
  

 27 

	9.4	Notices 

 All
notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by
nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 
  

			
	If to AVEO, to:	  	AVEO Pharmaceuticals, Inc.
		  	75 Sidney Street, Fourth Floor
		  	Cambridge, MA 02139
		  	Attention: Chief Business Officer
		  	Telephone: 617-299-5950
		  	Facsimile: 617-995-4995
		
	with a copy to:	  	 Wilmer Cutler Pickering Hale and Dorr LLP
 60 State Street
 Boston, MA 02109

		  	Attention: Steven D. Singer
		  	Telephone: 617-526-6410
		  	Facsimile: 617-526-5000
		
	If to MERCK, to:	  	 Merck & Co., Inc.
 One
Merck Drive
 P.O. Box 100, WS3A-65

		  	 Whitehouse Station, NJ 08889-0100
 Attention: Office of Secretary
 Facsimile No.: (908) 735-1246

		
	with a copy to:	  	Merck & Co., Inc.
		  	One Merck Drive
		  	P.O. Box 100, WS2A-30
		  	Whitehouse Station, NJ 08889-0100
		  	Attention: Chief Licensing Officer
		  	Facsimile: (908) 735-1214

 or to such other address as the Party to whom notice is to be given may have
furnished to the other Party in writing in accordance herewith. Any such notice shall be deemed to have been given: (a) when delivered if personally delivered or sent by facsimile on a business day; (b) on the business day after dispatch
if sent by nationally-recognized overnight courier; and/or (c) on the fifth business day following the date of mailing if sent by mail. 
  

 28 

	9.5	Applicable Law 

 This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey and the patent laws of the United States, without reference to any rules of conflict of laws. The United Nations Convention on the Sale
of Goods shall not apply. 
  

	9.6	Dispute Resolution 

  

	9.6.1	The Parties shall negotiate in good faith and use reasonable efforts to settle any dispute, controversy or claim arising from or related to this Agreement or the breach
thereof. If the Parties do not fully settle, and a Party wishes to pursue the matter, each such dispute, controversy or claim that is not an “Excluded Claim” shall be finally resolved by binding arbitration in accordance with the
Commercial Arbitration Rules and Supplementary Procedures for Large Complex Disputes of the American Arbitration Association (“AAA”), and judgment on the arbitration award may be entered in any court having jurisdiction thereof.

  

	9.6.2	The arbitration shall be conducted by a panel of three persons experienced in the pharmaceutical business: within 30 days after initiation of arbitration, each Party
shall select one person to act as arbitrator and the two Party-selected arbitrators shall select a third arbitrator within 30 days of their appointment. If the arbitrators selected by the Parties are unable or fail to agree upon the third
arbitrator, the third arbitrator shall be appointed by the AAA. The place of arbitration shall be New York, New York, and all proceedings and communications shall be in English. 

  

	9.6.3	Either Party may apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either Party
also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending the arbitration award. The arbitrators shall
have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages. Each Party shall bear its own costs and expenses and attorneys’ fees and an equal share of the arbitrators’ and any
administrative fees of arbitration. 

  

	9.6.4	Except to the extent necessary to confirm an award or as may be required by law or regulation, neither a Party nor an arbitrator may disclose the existence, content, or
results of an arbitration without the prior written consent of both Parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute, controversy or claim would be barred
by the applicable New York statute of limitations. 

  

	9.6.5	The parties agree that, in the event of a dispute over the nature or quality of performance under this Agreement, neither party may terminate the Agreement until final
resolution of the dispute through arbitration or other judicial determination. The parties further agree that any payments made pursuant to this Agreement pending resolution of the dispute shall be refunded if an arbitrator or court determines
that such payments are not due. 

  

 29 

	9.6.6	As used in this Section, the term “Excluded Claim” means a dispute, controversy or claim that concerns (a) the validity or infringement of a
patent, trademark or copyright; or (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory. 

  

	9.7	Entire Agreement; Amendments 

 This Agreement contains the entire understanding of the Parties with respect to the Research Program and the licenses granted hereunder. Any other express or implied agreements and understandings, either
oral or written, with regard to the Research Program or the licenses granted hereunder are superseded by the terms of this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly-executed by
authorized representatives of both Parties hereto. 
  

	9.8	Headings 

 The
captions to the several Articles and Sections hereof are not a part of this Agreement, but are merely for convenience to assist in locating and reading the several Articles and Sections hereof. 
  

	9.9	Independent Contractors 

 It is expressly agreed that AVEO and MERCK shall be independent contractors and that the relationship between AVEO and MERCK shall not constitute a partnership, joint venture or agency. AVEO shall not have the authority to make any
statements, representations or commitments of any kind, or to take any action, which shall be binding on MERCK, without the prior written consent of MERCK, and MERCK shall not have the authority to make any statements, representations or commitments
of any kind, or to take any action, which shall be binding on AVEO, without the prior written consent of AVEO. 
  

	9.10	Waiver 

 The waiver
by either Party hereto of any right hereunder, or of any failure of the other Party to perform, or of any breach by the other Party, shall not be deemed a waiver of any other right hereunder or of any other breach by or failure of such other Party,
whether of a similar nature or otherwise. 
  

 30 

	9.11	Cumulative Remedies 

 No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law. 
  

	9.12	Waiver of Rule of Construction 

 Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this
Agreement shall be construed against the drafting Party shall not apply. 
  

	9.13	Counterparts 

 This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. 
  

									
	MERCK & CO., INC.	 		 	AVEO PHARMACEUTICALS, INC.
					
	BY:	 	/s/ Mervyn Turner	 		 	BY:	 	/s/ Tuan Ha-Ngoc
	NAME:	 	Mervyn Turner	 		 	NAME:	 	Tuan Ha-Hgoc
	TITLE:	 	Senior Vice President	 		 	TITLE:	 	President and CEO
		 	 Worldwide Licensing &
 External Research
	 		 		 	

  

 31 

 SCHEDULE 1.4 
 AVEO PATENT RIGHTS 
 Intentionally blank

  

 32 

 SCHEDULE 2.1 
 RESEARCH PLAN 
  

 33 

 Schedule 2.1 
 Research Plan 
 Overview 
 [**]. 
 Research Plan 
 [**] 
 Confidential materials omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request. A total of four pages were omitted. 
 Timelines and resources. A proposal for projected timeline and resource allocation is attached. 
  

 1 

 Tumor Propagation and Archiving of Material for Responder Studies 
 Version 7/25/05 
 A.)
Materials: 
 [**]. 
 Confidential materials omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. A total of seven pages were omitted. 

			
	 Cynthia Gawron-Burke, Ph.D.
	  	March 5, 2007
	 Director, Scientific Liaison
 External Scientific Affairs
 Merck & Co., Inc.
 WP53-B-330
 770 Sumneytown Pike
 P.O. Box 4
 West Point, PA 19486
	  	

  

	Re:	Amendment to August 1, 2005 License and Research Collaboration Agreement between AVEO PHARMACEUTICALS, INC. (“AVEO”) and MERCK & CO., INC.
(“MERCK”) 

 Dear Cynthia: 
 This letter (“Amendment”) will confirm agreement that the Research Plan in Schedule 2.1 in the above-identified agreement (“Agreement”) will include the activities attached here as
Exhibit A (“Pilot Imaging Study”). 
 AVEO represents and warrants that during its activities pursuant to the Pilot
Imaging Study, AVEO will have in effect a Non-Exclusive License Agreement for Internal Research Use and Commercialization of [**] Licensee Products from [**]. MERCK represents and warrants that during its activities pursuant to the Pilot Imaging
Study, MERCK will have in effect a Non-Exclusive License Agreement for Internal Research Use and Commercialization of [**] Licensee Products from [**]. 
 [**] (“Visiting Scientist”), an employee of AVEO, shall be permitted to visit the MERCK facility at [**], under the supervision of MERCK personnel, as required for performance of the Agreement
as amended herein. AVEO agrees that any confidential or proprietary information of MERCK obtained by Visiting Scientist during Visiting Scientist’s site visit to MERCK’s facility shall be maintained in secrecy in accordance with the terms
and conditions of the Agreement. 
 AVEO understands and agrees that during Visiting Scientist’s visit to MERCK’s facility, Visiting
Scientist will be considered a business invitee of MERCK, and not a MERCK employee. AVEO will be responsible for Visiting Scientist’s travel costs, as well as for providing general liability, professional liability and employer liability
coverage on behalf of Visiting Scientist. 
 All other terms and conditions of the Agreement will remain in full force and effect. If you are in
agreement with the above, please have this letter signed on behalf of MERCK, whereupon the Amendment will become effective as of the date below. 
  

									
	Sincerely,	 		 	 ACCEPTED AND AGREED
 MERCK & CO., INC.

				
	/s/ Michael Christiano	 		 	By:	 	/s/ Stephen Friend
	Michael Christiano	 		 	Name:	 	Stephen Friend, M.D., Ph.D.
	Senior Director, Business Development	 		 	Title:	 	Exec. VP Oncology & Adv. Technologies
		 		 	Date:	 	March 5, 2007

 EXHIBIT A 
 Pilot Imaging Study 
 Background 
 [**]. 
 Imaging Research Pilot Experiment

 [**]. 

 AMENDMENT NO. 1 TO LICENSE AND RESEARCH 
 COLLABORATION AGREEMENT 
 When executed by Merck & Co., Inc., a New Jersey corporation (“MERCK”) and AVEO Pharmaceuticals, Inc., a Delaware corporation (“AVEO”), this Amendment No. 1 (“Amendment”) will operate to amend the
License and Research Collaboration Agreement dated August 30, 2005 between MERCK and AVEO (the “Agreement”). 
  

	1.	Pursuant to Section 9.7 of the Agreement, MERCK and AVEO hereby amend the Agreement by adding to Schedule 2.1 (the Research Plan): 

  

	 	(a)	Schedule 2.1.1, entitled: “Research Proposal for Extension of the Responder Collaboration between Merck and AVEO” (attached hereto); and

  

	 	(b)	Schedule 2.1.2, entitled: “Timeline Projection for [**] Large-Scale Efficacy Study” for the year 2007 (attached hereto). 

  

	2.	Pursuant to Section 2.9.1 of the Agreement, MERCK and AVEO hereby extend the Research Program Term and establish an Extended Research Program Term that shall
expire on December 31, 2007. 

  

	3.	In consideration for AVEO’s performance of its obligations under Schedule 2.1.1 of the Research Program during the Extended Research Program Term, upon the terms
and conditions contained herein, MERCK shall pay AVEO an amount equal to [**] U.S. Dollars ($US [**]), payable by December 31, 2007. 

 All other terms and conditions of the Agreement, including definitions, shall remain in effect. All references to the Agreement hereafter shall refer to the Agreement as amended herein. This Amendment
shall take effect as of the date of the last signature below. 
 The parties have caused this Amendment to be executed by their duly authorized
representatives. 
  

									
	MERCK & CO., INC.	 		 	AVEO PHARMACEUTICALS, INC.
					
	By:	 	/s/ Lex Van der Ploeg	 		 	By:	 	/s/ Elan Ezickson
	Name:	 	Lex Van der Ploeg, Ph.D.	 		 	Name:	 	Elan Ezickson
	Title:	 	VP, Basic Research	 		 	Title:	 	CBO
	Date:	 	August 12, 2007	 		 	Date:	 	7/24/07

 Schedule 2.1.1 
 Research Proposal for Extension of the Responder Collaboration between MERCK 
 and AVEO 
 Overview 
 MERCK and AVEO would like to extend the Research Program Term of the License and Research Collaboration Agreement dated August 30, 2005 between MERCK and AVEO (the “Agreement”) for 4 months
to conduct preclinical pharmacogenomics studies in AVEO mouse models (Collaboration Models) using a MERCK Compound (“[**]”). This extension would permit the testing of the [**] in additional AVEO tumors from the [**] archive. The results
of such studies will be used by MERCK to guide the development of its compounds and by AVEO to cost-effectively fortify its “Responder” platform. 
 Extended Research Program Term 
 Through December 31, 2007. 
 Research Objective for Extended Research Program Term 
 Identify gene profiles and biomarkers that correlate with response to [**] (Prognostic Signatures). 
 Research Proposal for Extended Research Program Term AVEO will: 
 [**] 
 Timeline projections are attached as Schedule 2.1.2.Research, Development and License Agreement

 Exhibit 10.25 
 EXECUTION COPY 
 Confidential Materials omitted and filed separately with
the 
 Securities and Exchange Commission. Asterisks denote omissions. 
 RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT 
 By and
Between 
 AVEO PHARMACEUTICALS, INC. 
 and 
 SCHERING CORPORATION, 
 acting through its Schering-Plough 
 Research Institute division 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page
	 ARTICLE I. DEFINITIONS
	  	1
	 1.1.
	    	“Affiliate”	  	1
	 1.2.
	    	“Antibody”	  	2
	 1.3.
	    	“AV-299”	  	2
	 1.4.
	    	“AVEO Background Know-How”	  	2
	 1.5.
	    	“AVEO Background Patent Rights”	  	2
	 1.6.
	    	“AVEO Intellectual Property”	  	2
	 1.7.
	    	“AVEO Know-How”	  	2
	 1.8.
	    	“AVEO Molecule(s)”	  	2
	 1.9.
	    	“AVEO Patent Rights”	  	2
	 1.10.
	    	“AVEO Third Party Agreements”	  	2
	 1.11.
	    	“Biomarker”	  	2
	 1.12.
	    	“Biomarker Invention”	  	3
	 1.13.
	    	“BLA” or “Biologics License Application”	  	3
	 1.14.
	    	“Business Day”	  	3
	 1.15.
	    	“Calendar Quarter”	  	3
	 1.16.
	    	“Calendar Year”	  	3
	 1.17.
	    	“Commercialization” and “Commercialize”	  	3
	 1.18.
	    	“Commercially Reasonable Efforts”	  	3
	 1.19.
	    	“Confidential Information”	  	3
	 1.20.
	    	“Control” or “Controlled”	  	4
	 1.21.
	    	“Cover”, “Covering” or “Covered”	  	4
	 1.22.
	    	“CPI”	  	4
	 1.23.
	    	“Derived Molecule”	  	5
	 1.24.
	    	“Development”	  	5
	 1.25.
	    	“Development Candidate”	  	5
	 1.26.
	    	“Development Costs”	  	5
	 1.27.
	    	“Development Term”	  	5
	 1.28.
	    	“Diagnostic Licensed Product”	  	5
	 1.29.
	    	“DOJ”	  	5
	 1.30.
	    	“Effective Date”	  	5
	 1.31.
	    	“EMEA”	  	5
	 1.32.
	    	“EU”	  	6
	 1.33.
	    	“FDA” or “Food and Drug Administration”	  	6
	 1.34.
	    	“Field”	  	6
	 1.35.
	    	“First Approval”	  	6
	 1.36.
	    	“First Commercial Sale”	  	6
	 1.37.
	    	“FTC”	  	6
	 1.38.
	    	“FTE”	  	6
	 1.39.
	    	“FTE Cost”	  	6
	 1.40.
	    	“FTE Rate”	  	6
	 1.41.
	    	“GAAP”	  	6
	 1.42.
	    	“GLP” or “Good Laboratory Practice”	  	7

					
	 1.43.
	    	“GMP” or “Good Manufacturing Practice”	  	7
	 1.44.
	    	“HGF”	  	7
	 1.45.
	    	“HSR Act”	  	7
	 1.46.
	    	“HSR Clearance”	  	7
	 1.47.
	    	“HSR Clearance Date”	  	7
	 1.48.
	    	“HSR Filings”	  	7
	 1.49.
	    	“IND” or “Investigational New Drug Application”	  	7
	 1.50.
	    	“Indication”	  	8
	 1.51.
	    	“Invention”	  	8
	 1.52.
	    	“Joint Development Plan”	  	8
	 1.53.
	    	“Joint Patent Rights”	  	8
	 1.54.
	    	“Know-How”	  	8
	 1.55.
	    	“Large Market Tumor Indication”	  	8
	 1.56.
	    	“Law” or “Laws”	  	9
	 1.57.
	    	“Licensed Product”	  	9
	 1.58.
	    	“Major Market”	  	9
	 1.59.
	    	“Manufacture”	  	9
	 1.60.
	    	“Marketing Exclusivity”	  	9
	 1.61.
	    	“MHW”	  	9
	 1.62.
	    	“Net Sales”	  	9
	 1.63.
	    	“Other Indication”	  	11
	 1.64.
	    	“Other Licensed Product(s)”	  	11
	 1.65.
	    	“Party” or “Parties”	  	11
	 1.66.
	    	“Patent Rights”	  	11
	 1.67.
	    	“Person”	  	11
	 1.68.
	    	“Phase I Clinical Trial”	  	11
	 1.69.
	    	“Phase II Clinical Trial”	  	11
	 1.70.
	    	“Pivotal Trial”	  	11
	 1.71.
	    	“Primary Responsible Party”	  	11
	 1.72.
	    	“Program Know-How”	  	11
	 1.73.
	    	“Program Patent Rights”	  	11
	 1.74.
	    	“Proof of Concept Study”	  	12
	 1.75.
	    	“Regulatory Approval”	  	12
	 1.76.
	    	“Regulatory Authority”	  	12
	 1.77.
	    	“Research”	  	12
	 1.78.
	    	“Research Plan”	  	12
	 1.79.
	    	“Research Program”	  	12
	 1.80.
	    	“Research Program Term”	  	12
	 1.81.
	    	“Schering-Plough Intellectual Property”	  	12
	 1.82.
	    	“Schering-Plough Know-How”	  	13
	 1.83.
	    	“Schering-Plough Patent Rights”	  	13
	 1.84.
	    	“Sublicensee”	  	13
	 1.85.
	    	“Territory”	  	13
	 1.86.
	    	“Third Party”	  	13
	 1.87.
	    	“United States”	  	13
	 1.88.
	    	“Valid Claim”	  	13

  

 -ii- 

					
	 1.89.
	    	“Veterinary Licensed Product”	  	13
	 1.90.
	    	Additional Definitions	  	13
		
	 ARTICLE II. JOINT STEERING COMMITTEE
	  	14
	 2.1.
	    	Creation and Structure of the JSC	  	14
	 2.2.
	    	Meetings	  	15
	 2.3.
	    	Responsibilities of the JSC	  	15
	 2.4.
	    	JRDC	  	16
	 2.5.
	    	Decisions of the JSC	  	16
	 2.6.
	    	Limitation on JSC Authority	  	16
	 2.7.
	    	Project Leaders	  	16
	 2.8.
	    	Reports to JSC	  	17
		
	 ARTICLE III. RESEARCH PROGRAM
	  	17
	 3.1.
	    	Research Plan	  	17
	 3.2.
	    	Efforts	  	17
	 3.3.
	    	Funding	  	17
		
	 ARTICLE IV. DEVELOPMENT
	  	18
	 4.1.
	    	General	  	18
	 4.2.
	    	Manufacturing Matters; AVEO Third Party Agreements	  	21
	 4.3.
	    	Ownership of Regulatory Filings and Approvals	  	21
	 4.4.
	    	Regulatory Matters Related to Licensed Products	  	21
		
	 ARTICLE V. COMMERCIALIZATION
	  	22
	 5.1.
	    	General	  	22
	 5.2.
	    	Option to Co-Promote	  	22
	 5.3.
	    	Recalls	  	23
		
	 ARTICLE VI. GRANTS OF RIGHTS
	  	24
	 6.1.
	    	AVEO Grants of Rights	  	24
	 6.2.
	    	Schering-Plough Grants of Rights	  	25
	 6.3.
	    	Additional Payments	  	25
	 6.4.
	    	Rights Retained by the Parties	  	25
	 6.5.
	    	Section 365(n) of the Bankruptcy Code	  	25
	 6.6.
	    	Exclusivity	  	26
		
	 ARTICLE VII. FINANCIAL PROVISIONS
	  	26
	 7.1.
	    	Initial License Payments	  	26
	 7.2.
	    	Equity Investment	  	26
	 7.3.
	    	Research Program	  	26
	 7.4.
	    	Development Program	  	26
	 7.5.
	    	Milestone Event Payments	  	27
	 7.6.
	    	Licensed Product Royalties	  	29
	 7.7.
	    	Diagnostic Licensed Products	  	30
	 7.8.
	    	Veterinary Licensed Products	  	31
	 7.9.
	    	Royalty Reports; Payments	  	31

  

 -iii- 

					
	 7.10.
	    	Books and Records; Audit Rights	  	31
	 7.11.
	    	Taxes	  	32
	 7.12.
	    	United States Dollars	  	32
	 7.13.
	    	Payment Method and Currency Conversion	  	32
	 7.14.
	    	Blocked Payments	  	32
	 7.15.
	    	Late Payments	  	33
	 7.16.
	    	Inter-Company Sales	  	33
		
	ARTICLE VIII. INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED MATTERS	  	33
	 8.1.
	    	Ownership of Inventions	  	33
	 8.2.
	    	Prosecution and Maintenance of Patent Rights	  	34
	 8.3.
	    	Third Party Infringement	  	36
	 8.4.
	    	Patent Invalidity Claim	  	37
	 8.5.
	    	Patent Marking	  	38
	 8.6.
	    	Notice of Certification under Drug Price Competition and Patent Restoration Act	  	38
	 8.7.
	    	Control of Response	  	38
		
	ARTICLE IX. CONFIDENTIAL INFORMATION	  	38
	 9.1.
	    	Treatment of Confidential Information	  	38
	 9.2.
	    	Publication Rights	  	39
	 9.3.
	    	Public Disclosure.	  	39
		
	ARTICLE X. REPRESENTATIONS, WARRANTIES AND COVENANTS	  	41
	 10.1.
	    	AVEO’s Representations	  	41
	 10.2.
	    	Schering-Plough’s Representations	  	42
	 10.3.
	    	AVEO Covenant	  	43
	 10.4.
	    	Schering-Plough Covenants	  	43
	 10.5.
	    	No Debarment	  	43
	 10.6.
	    	Material Transfer	  	43
	 10.7.
	    	No Warranty	  	44
		
	ARTICLE XI. INDEMNIFICATION	  	44
	 11.1.
	    	Indemnification in Favor of AVEO	  	44
	 11.2.
	    	Indemnification in Favor of Schering-Plough	  	45
	 11.3.
	    	General Indemnification Procedures	  	46
	 11.4.
	    	Insurance	  	46
	 11.5.
	    	Exclusive Remedy	  	46
		
	ARTICLE XII. TERM AND TERMINATION	  	46
	 12.1.
	    	Term	  	46
	 12.2.
	    	Termination Due to Passage of Time	  	46
	 12.3.
	    	Schering-Plough Termination at Will	  	47
	 12.4.
	    	Termination for Cause	  	47
	 12.5.
	    	Termination for Insolvency	  	47

  

 -iv- 

					
	 12.6.
	    	Consequences of Certain Terminations by the Parties	  	48
	 12.7.
	    	Payment of Balance of Quarterly Research Fees	  	51
	 12.8.
	    	Consequences of Certain Terminations by Schering-Plough	  	51
	 12.9.
	    	Effect of Termination and Expiration; Accrued Rights and Obligations	  	51
	 12.10.
	    	Survival	  	52
		
	 ARTICLE XIII. DISPUTE RESOLUTION FOR NON-JSC MATTERS
	  	52
	 13.1.
	    	Informal Resolution	  	52
	 13.2.
	    	Arbitration	  	52
		
	 ARTICLE XIV. HSR MATTERS
	  	53
	 14.1.
	    	HSR Filings	  	53
	 14.2.
	    	HSR Cooperation; Further Assurances	  	53
		
	 ARTICLE XV. MISCELLANEOUS
	  	53
	 15.1.
	    	Governing Law	  	53
	 15.2.
	    	Waiver	  	53
	 15.3.
	    	Notices	  	53
	 15.4.
	    	Entire Agreement	  	55
	 15.5.
	    	Headings	  	55
	 15.6.
	    	Severability	  	55
	 15.7.
	    	Registration and Filing of the Agreement	  	55
	 15.8.
	    	Assignment	  	55
	 15.9.
	    	Counterparts	  	56
	 15.10.
	    	Force Majeure	  	56
	 15.11.
	    	Non-Solicitation of Employees	  	56
	 15.12.
	    	Third-Party Beneficiaries	  	56
	 15.13.
	    	Relationship of the Parties	  	57
	 15.14.
	    	Performance by Affiliates	  	57
	 15.15.
	    	Construction	  	57
	 15.16.
	    	No Consequential or Punitive Damages	  	57

  

 -v- 

 RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT 
 This Research, Development and License Agreement (this “Agreement”), dated as of March 23, 2007 (the
“Execution Date”), is entered into by and between AVEO PHARMACEUTICALS, INC. (“AVEO”), a Delaware corporation having a principal office at 75 Sidney Street, Cambridge, Massachusetts 02139 U.S.A.; and SCHERING
CORPORATION, acting through its Schering-Plough Research Institute division (“Schering-Plough”), a New Jersey corporation having a principal office located at 2000 Galloping Hill Road, Kenilworth, New Jersey 07033 U.S.A. AVEO and
Schering-Plough are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 
 INTRODUCTION 
 WHEREAS, AVEO and Schering-Plough are engaged in the
discovery, development and commercialization of novel therapies for the treatment of oncologic and other serious diseases and conditions; 
 WHEREAS, AVEO and Schering-Plough desire to collaborate to accelerate the development and commercialization of certain potential products in AVEO’s pipeline directed to the inhibition of hepatocyte
growth factor, including the humanized antibody known as AV-299; and 
 WHEREAS, Schering-Plough desires to obtain, and AVEO is
willing to grant, certain rights and licenses in such potential products, with an opportunity for AVEO to participate in the development and, at AVEO’s election, co-promotion of such products in the United States. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt of which
is hereby acknowledged, AVEO and Schering-Plough agree as follows: 
 ARTICLE I. DEFINITIONS 
 General. When used in this Agreement, each of the following capitalized terms, whether used in the singular or the plural, shall have
the meanings set forth in this Article I. 
 1.1. “Affiliate”. Affiliate means with respect to a Party, any
Person that directly or indirectly controls, is controlled by, or is under common control with such Party. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. For purposes of this definition, “control” shall be presumed to exist if one of the following conditions are
met: (a) in the case of corporate entities, direct or indirect ownership of more than fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (b) in the case of non-corporate entities,
direct or indirect ownership of more than fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. 

 1.2. “Antibody”. Antibody means any immunoglobulin
molecule (such as IgG), whether in monospecific or any other form, and shall include any immunoglobulin fragment (such as Fv, Fab, F(ab’)2) containing one or more complementarity determining regions, any fusion protein comprising an immunoglobulin or
immunoglobulin fragment and any single chain antibody (such as scFv), and any truncation or derivative of any of the foregoing. 
 1.3. “AV-299”. AV-299 means the humanized monoclonal Antibody that binds to HGF and is designated by AVEO as he2B8-4. 
 1.4. “AVEO Background Know-How”. AVEO Background Know-How means any Know-How in tangible and intangible form Controlled by AVEO as of the Execution Date or during the Term that is related
to AVEO’s genetic model/animal model systems for use in Biomarker Research. 
 1.5. “AVEO Background Patent
Rights”. AVEO Background Patent Rights means all Patent Rights Controlled by AVEO as of the Execution Date or thereafter during the Term that claim or disclose AVEO Background Know-How. 
 1.6. “AVEO Intellectual Property”. AVEO Intellectual Property means the AVEO Know-How, the AVEO Background Know-How and the
AVEO Patent Rights. 
 1.7. “AVEO Know-How”. AVEO Know-How means any Know-How (including, without limitation
anti-HGF Antibodies) in tangible and intangible form Controlled by AVEO as of the Execution Date or during the Term that is necessary or reasonably useful for the Research, Development, Manufacture, use or Commercialization of Licensed Products,
Other Licensed Products or Biomarkers. AVEO Know-How does not include AVEO Background Know-How. 
 1.8. “AVEO
Molecule(s)”. AVEO Molecule(s) means any and all anti-HGF Antibodies Controlled by AVEO during the Term, including but not limited to the Antibodies identified in Exhibit A. 
 1.9. “AVEO Patent Rights”. AVEO Patent Rights means (a) all Patent Rights Controlled by AVEO as of the Execution Date,
including rights derived from the AVEO Third Party Agreements, or thereafter during the Term that claim or disclose AVEO Know-How or AVEO Background Know-How, and (b) AVEO’s interest in the Joint Patent Rights and Program Patent Rights.
The AVEO Patent Rights existing as of the Execution Date are set forth on Exhibit B. 
 1.10. “AVEO Third
Party Agreements”. AVEO Third Party Agreements means [**], in each case as amended from time to time. 
 1.11.
“Biomarker”. Biomarker means any detectable genetic, biochemical or physiological response, event, trait or characteristic of a patient that is objectively measured and evaluated as an indicator of normal biologic processes,
pathogenic processes, or pharmacologic responses to a therapeutic intervention and the detection or measurement of which is useful in identifying patients more likely or less likely to benefit from treatment with one or more Licensed Products.

  

 -2- 

 1.12. “Biomarker Invention”. Biomarker Invention means a method of using
detection or measurement of a Biomarker to identify patients more likely or less likely to benefit from treatment with one or more Licensed Products or Other Licensed Products. 
 1.13. “BLA” or “Biologics License Application”. BLA or Biologics License Application means a United States
FDA biologics license application, or any counterpart application in any country other than the United States, or any successor application or procedure. 
 1.14. “Business Day”. Business Day means a day that is not a Saturday, Sunday or a day on which banking institutions in Cambridge, Massachusetts or in Kenilworth, New Jersey are
authorized by Law to remain closed. 
 1.15. “Calendar Quarter”. Calendar Quarter means each of the periods
ending on March 31, June 30, September 30, and December 31 of any year. 
 1.16. “Calendar
Year”. Calendar Year means each calendar year during the Term. 
 1.17. “Commercialization” and
“Commercialize”. Commercialization and Commercialize shall refer to all activities undertaken relating to the pre-marketing, launching, marketing, promotion (including without limitation advertising and detailing), production of
product, distribution, offering for sale, sale, importing and exporting for sale, post-approval studies (such as Phase IV studies) of a Licensed Product, and interacting with Regulatory Authorities regarding the foregoing. 
 1.18. “Commercially Reasonable Efforts”. Commercially Reasonable Efforts means that degree of skill, effort, expertise, and
resources normally used with respect to a pharmaceutical product which is of similar market potential at a similar stage in its product life, taking into account the safety and efficacy of the Licensed Product, the cost to Develop, Manufacture and
Commercialize Licensed Product, the risks inherent in the Development, Manufacture and Commercialization of the Licensed Product, the competitiveness of the marketplace, the proprietary position of the Licensed Product, the likelihood of obtaining
Regulatory Approval for the Licensed Product, the potential economic return from the Licensed Product, and other technical, legal, scientific, medical or commercial factors that such Party deems in good faith to be relevant . When AVEO is conducting
Research under this Agreement, its Commercially Reasonable Efforts shall be those normally used by an established biotechnology company. 
 1.19. “Confidential Information”. Confidential Information means all trade secrets or other proprietary information, including any proprietary data and materials (whether or not
patentable or protectible as a trade secret), regarding a Party’s or its licensor’s technology, products, business, financial status or prospects or objectives, which is disclosed by a Party to the other Party, including but not limited to
Licensed Products and Program Know-How. All information disclosed prior to the Effective Date by AVEO to Schering-Plough pursuant to the confidentiality agreement between the Parties dated July 25, 2006 (the “Confidentiality
Agreement”), and properly deemed confidential information under the Confidentiality Agreement, shall be deemed “Confidential Information” of AVEO. All information disclosed prior to the Effective Date by AVEO to Schering-Plough
pursuant to the Material 
  

 -3- 

 
Transfer Agreement by and between AVEO and Schering-Plough Biopharma Corporation dated December 8, 2006 (the “AVEO/SP Material Transfer Agreement”), and properly deemed
confidential information under the AVEO/SP Material Transfer Agreement shall be deemed “Confidential Information” of AVEO. All results obtained pursuant to the AVEO/SP Material Transfer Agreement shall be deemed “Confidential
Information” of both AVEO and Schering-Plough. Notwithstanding the foregoing, there shall be excluded from the foregoing definition of Confidential Information any of the foregoing that: 
 (a) either before or after the date of the disclosure to the receiving Party is lawfully disclosed to the receiving Party by
Third Parties without any violation of any obligation to the other Party; or 
 (b) either before or after the
date of the disclosure to the receiving Party, becomes published or generally known to the public through no fault or omission on the part of the receiving Party or its Agents; or 
 (c) is independently developed by or for the receiving Party without reference to or reliance upon the Confidential
Information as demonstrated by written records of the receiving Party; or 
 (d) 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 or the regulations or requirements of any stock exchange, provided that the receiving Party promptly provides prior
notice of such disclosure to the other Party and uses reasonable efforts to avoid or minimize the degree of such disclosure. 
 1.20. “Control” or “Controlled”. Control or Controlled means, with respect to any Patent Rights or Know-How, possession (whether by ownership or license, other than pursuant to this Agreement) by a Party or
its Affiliates of the ability to grant the licenses or sublicenses as provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 
 1.21. “Cover”, “Covering” or “Covered”. Cover, Covering or Covered means, with respect to
a product, technology, process or method that, in the absence of ownership of or a license granted under a Valid Claim, the manufacture, use, offer for sale, sale or importation of such product or the practice of such technology, process or method
would infringe such Valid Claim (or, in the case of a Patent Right that is a patent application, would infringe a pending claim of such patent application if such claim were included unchanged in an issued patent). 
 1.22. “CPI”. CPI means the Consumer Price Index for all Urban Consumers, Northeastern Urban (Boston – Brockton –
Nashua, MA, NH, ME, CT) City Average for all Items (1982-1984 = 100), as published by the United States Department of Labor, Bureau of Statistics (or its successor equivalent index) in the United States. 
  

 -4- 

 1.23. “Derived Molecule”. Derived Molecule means any Antibody inhibitor of
HGF that is developed, discovered, conceived or reduced to practice by or on behalf of Schering- Plough and/or AVEO or any of their Affiliates or Sublicensees during the Term through the direct and proximate use of an AVEO Molecule or AVEO Know-How.

 1.24. “Development”. Development means those activities conducted pursuant to a Joint Development Plan,
including non-clinical (including, without limitation, pre-clinical) and clinical drug development activities and related research for a Licensed Product, including, among other things: (a) pharmacology studies, (b) absorption,
distribution, metabolism, elimination (ADME) studies, (c) toxicology studies, (d) statistical analysis and report writing, (e) drug Manufacture, formulation and packaging for non-clinical and clinical work, (f) compliance related
monitoring and activities for the foregoing (including, but not limited to, biometry, data management, drug safety, integrated analysis, and health and economic research), (g) clinical trials for the purpose of obtaining or maintaining
Regulatory Approval (excluding post-marketing studies), (h) safety related studies and risk management programs for the foregoing, (i) regulatory affairs related to all of the foregoing, and (j) any other activities agreed to by the
Parties. Development shall not include Research. When used as a verb, “Develop” means to engage in Development. 
 1.25. “Development Candidate”. Development Candidate means those Licensed Products that meet the criteria set forth on Schedule 7.5(a). 
 1.26. “Development Costs”. Development Costs means, with respect to a Licensed Product, the internal and external
costs of a Party and/or its Affiliates incurred in Developing such Licensed Product, which costs shall include all costs and expenses invoiced by Third Parties for goods or services (including direct costs of labor, materials, supplies, services,
fees and other resources directly consumed or used in the Development of Licensed Product), Third Party license fees (including those associated with in-licenses and any Development related payment obligations under the AVEO Third Party Agreements),
and the FTE Costs of a Party’s, and/or its Affiliates’, employees with respect to time properly allocated to the Development of Licensed Product. 
 1.27. “Development Term”. Development Term means, with respect to a Licensed Product, the time period commencing on the date the Joint Development Plan is finalized by the Parties and
continuing until the completion of the first Proof of Concept Study, unless extended by mutual written agreement of the Parties. 
 1.28. “Diagnostic Licensed Product”. Diagnostic Licensed Product means any product that (a) embodies a Biomarker Invention, and (b) (i) incorporates or is Developed through the use of AVEO Know-How, or
(ii) is Covered by an AVEO Patent Right or Joint Patent Right in the country where such product is used, offered for sale, sold, manufactured, imported or exported. 
 1.29. “DOJ”. DOJ means the United States Department of Justice. 
 1.30. “Effective Date”. Effective Date means the HSR Clearance Date. 
 1.31. “EMEA”.
EMEA means the European Medicines Agency, or any successor agency with responsibility for regulating the Development, Manufacture and Commercialization of human or veterinary pharmaceutical, diagnostic, or prophylactic products. 
  

 -5- 

 1.32. “EU”. EU means the countries of the European Union, as they may exist
from time to time during the Term. 
 1.33. “FDA” or “Food and Drug Administration”. FDA or
Food and Drug Administration means the United States Food and Drug Administration and any successor agency thereto with responsibility for regulating the Development, Manufacture and Commercialization of human or veterinary pharmaceutical,
diagnostic, or prophylactic products. 
 1.34. “Field”. Field means (a) all therapeutic and prophylactic
uses of any Licensed Product in humans, and (b) all diagnostic and veterinary uses of any Other Licensed Product. 
 1.35.
“First Approval”. First Approval means the first Regulatory Approval of a Licensed Product. 
 1.36.
“First Commercial Sale”. First Commercial Sale means the first bona fide arm’s length shipment for sale in the Territory of a Licensed Product sold to a Third Party by a Party, its Affiliates or Sublicensees after Regulatory
Approval has been obtained for such Licensed Product. Transfer of Licensed Product to a Third Party for the purpose of test marketing, sampling, promotional use, clinical trial purposes or compassionate or similar use shall not be considered to
constitute a sale for the purposes of this definition of First Commercial Sale. 
 1.37. “FTC”. FTC means the
United States Federal Trade Commission. 
 1.38. “FTE”. FTE means a full time equivalent person year of
professional, scientific and/or technical work. An FTE shall consist of a total of [**] hours per year, with any portion of an FTE calculated based upon hours worked divided by such annual total. 
 1.39. “FTE Cost”. FTE Cost means for any period, the product of: (a) the actual total FTEs during such period; and
(b) the FTE Rate. 
 1.40. “FTE Rate”. FTE Rate means, (a) if for Research activities, [**] Dollars
($[**]), or any other lower rate charged by AVEO to a Third Party pursuant to an agreement for a comparable type and scope of Research related activities, or (b) if for Development activities, [**] Dollars ($[**]), or such other rate agreed
upon by the Parties. The FTE Rate shall not include out-of-pocket Third Party expenses, such as (for example and without limiting the generality of the foregoing) microarray studies, mouse acquisition and external housing costs, funding of Third
Party Research or Development activities and Third Party consulting fees. After January 1, 2008, the FTE Rate may be increased or decreased by the percentage increase or decrease in the CPI as of the then most recent December 31 over the
level of the CPI as of the December 31 after the previous year, provided that such adjustment to the FTE Rate shall not exceed [**] percent ([**]%) for any given adjustment. 
 1.41. “GAAP”. GAAP means United States Generally Accepted Accounting Principles, as they exist from time to time, as
consistently applied by a Party across all of its products. 
  

 -6- 

 1.42. “GLP” or “Good Laboratory Practice”. GLP or Good
Laboratory Practice means the current good laboratory practice regulations of the FDA as described in the United States Code of Federal Regulations or any applicable corresponding foreign regulations or their respective successor regulations.

 1.43. “GMP” or “Good Manufacturing Practice”. GMP or Good Manufacturing Practice means the
current good manufacturing practice regulations of the FDA as described in the United States Code of Federal Regulations or any applicable corresponding foreign regulations or their respective successor regulations. 
 1.44. “HGF”. HGF means human Hepatocyte Growth Factor polypeptide, including: (a) any species variants or homologs
thereof; (b) any amino acid sequence variants or mutations of the foregoing, (c) any post-translational modifications of the foregoing; and (d) any derivatives or fragments of the foregoing; provided that the foregoing
(i) displays at least one biological activity of native human HGF, and/or (ii) elicits an antibody that reacts with native human HGF, when used as an antigen. 
 1.45. “HSR Act”. HSR Act means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (15 U.S.C. Sec. 18a), and the rules and regulations promulgated thereunder. 

1.46. “HSR Clearance”. HSR Clearance means (a) early termination of the applicable waiting period under the HSR Act
with respect to the HSR Filings, (b) expiration of the applicable waiting period under the HSR Act with respect to the HSR Filings or (c) if applicable, termination of any investigation commenced by the FTC or DOJ by means of a second
request or otherwise, without action to prevent the Parties from implementing the transactions contemplated by this Agreement with respect to the United States. 
 1.47. “HSR Clearance Date”. HSR Clearance Date means the earlier of (a) the date on which the FTC or DOJ shall notify AVEO and Schering-Plough of early termination of the applicable
waiting period under the HSR Act or (b) the day after the date on which the applicable waiting period under the HSR Act expires; provided, however, in the event the FTC or DOJ shall commence any investigation by means of a second
request or otherwise, HSR Clearance Date means the date on which any investigation opened by the FTC or DOJ shall have been terminated, without action to prevent the Parties from implementing the transactions contemplated by this Agreement with
respect to the United States. 
 1.48. “HSR Filings”. HSR Filings means the filings by Schering-Plough and AVEO
with the FTC and the Antitrust Division of the DOJ of a Notification and Report Form for Certain Mergers and Acquisitions (as that term is defined in the HSR Act) with respect to the matters set forth in this Agreement, together with all required
documentary attachments thereto. 
 1.49. “IND” or “Investigational New Drug Application”. IND
or Investigational New Drug Application means (a) (i) in the United States, an Investigational New Drug Application, as defined in the federal Food, Drug and Cosmetic Act, as amended from time to time (the “FD&C Act”),
and the regulations promulgated thereunder, as amended from time to time, that is required to be filed with the FDA before beginning clinical testing of a Licensed Product in human subjects, or any successor application or procedure, and
(ii) any counterpart of such Investigational New Drug Application in any country other than the United States in the Territory (e.g., a clinical trial exemption), and (b) all supplements and amendments that may be filed with respect to any
of the foregoing. 
  

 -7- 

 1.50. “Indication”. Indication means a separate and distinct disease
or medical condition; provided that within the field of oncology, Indication means a cancerous condition resulting from a separate and distinct tumor type that is the basis for a separate and distinct Regulatory Approval. For purposes
of clarity, examples of Indications within the field of oncology include, but are not limited to: non-small cell lung cancer, prostate cancer, colon cancer, breast cancer, and cancerous conditions where treatment is based upon Biomarker measurements
independent of the cancer’s tissue of origin. Indication shall have the same meaning whether a Licensed Product is used to treat patients alone or in combination with other treatment modalities. Moving from one line of therapy to another within
an Indication shall not be considered to be a new Indication, a non-limiting example of which is moving from second line therapy to first line therapy. 
 1.51. “Invention”. Invention means any new and useful process, article of manufacture, compound, composition of matter, formulation or apparatus, patentable or unpatentable, or any
improvement thereof. 
 1.52. “Joint Development Plan”. Joint Development Plan means a plan for the Development
of Licensed Products during the Development Term, as developed and amended from time to time pursuant to Articles II and IV, describing: (a) all Development activities for a Licensed Product in the Territory, (b) timelines,
(c) budgets, (d) schedules for payments, and (e) allocation of responsibilities, as determined and approved in accordance with Articles II and IV. 
 1.53. “Joint Patent Rights”. Joint Patent Rights means all Patent Rights that claim or disclose Joint Inventions. 
 1.54. “Know-How”. Know-How means proprietary, non-public information and materials, whether patentable or not, including,
but not limited to, (a) ideas, discoveries, Inventions, improvements or trade secrets, (b) pharmaceutical, chemical and biological materials, products and compositions, (c) tests, assays, techniques, data, methods, procedures,
formulas, and/or processes, (d) technical and non-technical data and other information relating to any of the foregoing, (e) drawings, plans, designs, diagrams, sketches, specifications and/or other documents containing or relating to such
information or materials, and (f) business processes, price data and information, marketing data and information, sales data and information, marketing plans and market research. 
 1.55. “Large Market Tumor Indication”. Large Market Tumor Indication means the first or second-line treatment of non-small
cell lung cancer, breast cancer, colon cancer, or prostate cancer; provided, however, that for the purpose of determining milestones, Large Market Tumor Indication shall also include (a) Indications that include multiple tumor
types based on a defined Biomarker profile and (b) Indications that include a single tumor type, in each case where the incidence and prevalence in a Territory have been demonstrated to be at least as great as for one of non-small cell lung
cancer, breast cancer, colon cancer or prostrate cancer in such Territory. 
  

 -8- 

 1.56. “Law” or “Laws”. Law or Laws means all laws,
statutes, rules, regulations, orders, judgments and/or ordinances of any Regulatory Authority. 
 1.57. “Licensed
Product”. Licensed Product means any and all anti-HGF human pharmaceutical products: (a) that contain any AVEO Molecule, Derived Molecule, or any pharmaceutical or biological preparation containing any AVEO Molecule or Derived
Molecule; or (b) for which the manufacture, use, offer for sale, sale, import or export is Covered by an AVEO Patent Right or Joint Patent Right in the country for which such product is used, offered for sale, sold, manufactured, imported or
exported. 
 1.58. “Major Market”. Major Market means France, Germany, Italy, Japan, Spain, the United Kingdom
and the United States. 
 1.59. “Manufacture”. Manufacture means all activities related to the manufacturing of
any Licensed Product, including but not limited to formulation, manufacturing scale-up, manufacturing for use in non-clinical and clinical studies, manufacturing for commercial sale, packaging, release of product, manufacturing quality
assurance/quality control testing (including in-process release and stability testing) and release of product or any component or ingredient thereof, regulatory activities related to all of the foregoing, and data management and recordkeeping
related to all of the foregoing. 
 1.60. “Marketing Exclusivity”. Marketing Exclusivity means, with respect to
a Licensed Product, the marketing exclusivity afforded approved drug products pursuant to (a) Sections 505(c), 505(j), and 505A of the FD&C Act, and the regulations promulgated thereunder, as amended from time to time, or its equivalent in
a country other than the United States, or (b) the orphan drug exclusivity afforded approved drugs designated for rare diseases or conditions under Sections 526 and 527 of the FD&C Act, and the regulations promulgated thereunder, or its
equivalent in a country other than the United States. 
 1.61. “MHW”. MHW means the Japanese Ministry of
Health, Labour and Welfare, or any successor agency with responsibility for regulating the Development, Manufacture and Commercialization of human or veterinary pharmaceutical, diagnostic, or prophylactic products. 
 1.62. “Net Sales”. Net Sales means with respect to any Licensed Product, the aggregate gross amount invoiced by
Schering-Plough, its Affiliates and Sublicensees on all sales of Licensed Product in the Territory to Third Parties, less the following deductions to the extent included in the gross invoiced sales price for such Licensed Product or otherwise
directly paid or incurred by Schering-Plough or its Affiliates or Sublicensees with respect to the sale of such Licensed Product: 
 (a) bad debts actually written off which are attributable to sales of Licensed Product; and 
  

 -9- 

 (b) sales returns, credits, discounts and allowances, including, without
limitation: 
 (i) trade, quantity and cash discounts and any other adjustments, including, without limitation,
those granted on account of price adjustments, billing errors, rejected goods, damaged goods, returns, recalls, rebates, chargeback rebates, fees, reimbursements or similar payments granted or given to wholesalers or other distributors, buying
groups, health care insurance carriers or other institutions; 
 (ii) freight, packing, handling, shipping,
postage and insurance charges to the extent that they are included in the price or otherwise paid by the purchaser; 
 (iii) customs or excise taxes, including, without limitation, import duties, sales tax and other taxes (except income taxes) or duties relating to sales; 
 (iv) any payment in respect of sales to any governmental authority in respect of any government-subsidized program,
including, without limitation, Medicare and Medicaid rebates; 
 (v) amounts paid or credited to customers for
inventory management, distribution, warehousing, and related services to the extent consistent with industry standards; 
 (vi) the portion of any management fees paid during the relevant time period to group purchasing organizations that relate specifically to the sale of such Licensed Product to such organization to the extent consistent with industry
standards; and 
 (vii) any other similar deductions to the extent consistent with industry standards for the
purpose of calculating Net Sales. 
 Net Sales shall be determined on an accrual basis from books and records maintained in
accordance with GAAP, consistently applied throughout the organization and across all products of the entity whose sales of Licensed Product are giving rise to Net Sales. 
 In the event a Licensed Product is sold in the form of a Combination Product, then the Net Sales for any such Combination Product shall be determined by multiplying the Net Sales of the Combination
Product during the applicable royalty reporting period, by the fraction, A/(A+B), where A is the weighted (by sales volume) average sale price of the Licensed Product when sold separately in finished form in the country in which the Combination
Product is sold and B is the weighted (by sales volume) average sale price of the other product(s) which contain the other active ingredient(s) included in the Combination Product when sold separately in finished form in the country in which the
Combination Product is sold, in each case during the applicable royalty reporting period or, if sales of both the Licensed Product and the other product(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 all other active pharmaceutical ingredient(s) included in the Combination Product, then the Parties shall in good faith discuss and
agree on a pro-rata allocation of the Net Sales that reflects the Licensed Products’ contribution to the Combination Product on an equitable basis. 
  

 -10- 

 As used in this Agreement, the term “Combination Product” means any
pharmaceutical product containing a Licensed Product and one or more other active pharmaceutical ingredients. 
 1.63.
“Other Indication”. Other Indication means any Indication other than a Large Market Tumor Indication. 
 1.64.
“Other Licensed Product(s)”. Other Licensed Product means any Diagnostic Licensed Product or Veterinary Licensed Product. 
 1.65. “Party” or “Parties”. Party or Parties means AVEO and/or Schering-Plough, as the context requires. 
 1.66. “Patent Rights”. Patent Rights means the rights and interest in and to all issued patents and pending patent
applications in any country or jurisdiction in the Territory, including, all provisionals, divisions, continuations, renewals, continuations-in-part, patents of addition, re-examinations, supplementary protection certificates, extensions,
registrations or confirmation patents, restoration of patent terms, reissues thereof and all foreign counterparts of the foregoing. 
 1.67. “Person”. Person means any natural person, corporation, general partnership, limited partnership, joint venture, proprietorship or other business organization. 
 1.68. “Phase I Clinical Trial”. Phase I Clinical Trial means a human clinical trial in any country in the Territory that
satisfies the requirements of 21 C.F.R. §312.21(a). 
 1.69. “Phase II Clinical Trial”. Phase II Clinical
Trial means a human clinical trial in any country in the Territory that satisfies the requirements of 21 C.F.R. §312.21(b). 
 1.70. “Pivotal Trial”. Pivotal Trial means a clinical trial required for the filing of a BLA with a Regulatory Authority for a therapeutic product that is performed after collecting preliminary evidence suggesting dose and
effectiveness of such product, and which trial has safety and efficacy endpoints that, if met, are acceptable to Regulatory Authorities as a basis for approval of a BLA. 
 1.71. “Primary Responsible Party”. Primary Responsible Party means the Party that, pursuant to the Joint Development Plan, is primarily responsible for conducting specified aspects of the
Development of Licensed Products. 
 1.72. “Program Know-How”. Program Know-How means any and all Know-How and
Inventions Controlled by a Party or jointly by the Parties that are first invented, discovered, made, conceived or reduced to practice in the course of conducting Research or Development activities pursuant to a Research Plan or a Joint Development
Plan during the Research Term or Development Term of this Agreement, provided that Program Know How does not include AVEO Background Know-How. 
 1.73. “Program Patent Rights”. Program Patent Rights means all Patent Rights Controlled by a Party or jointly by the Parties that claim or disclose Program Know-How, provided that Program
Patent Rights does not include AVEO Background Patent Rights. 
  

 -11- 

 1.74. “Proof of Concept Study”. Proof of Concept Study means a Phase II
Clinical Trial, the design of which is intended to demonstrate achievement of a primary efficacy endpoint as established by the Parties and approved by the JSC in a clinical trial filed with, and permitted to proceed by, the applicable Regulatory
Authority. 
 1.75. “Regulatory Approval”. Regulatory Approval means the granting, whether through lapse of
time or otherwise, by the FDA or by a comparable Regulatory Authority of approval to market a drug product for a particular Indication or Indications in a country in the Territory, including pricing approvals from such Regulatory Authorities, as may
be required for the Commercialization of a Licensed Product. 
 1.76. “Regulatory Authority”. Regulatory
Authority means any United States federal, state, or local government, or any foreign government, or political subdivision thereof, or any multinational organization or authority or any authority, agency or commission entitled to exercise any
administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any governmental arbitrator or arbitral body, including the FDA, EMEA or
MHW, with responsibility for granting licenses or approvals necessary for the marketing and sale of pharmaceutical products in any country. 
 1.77. “Research”. Research means all activities conducted pursuant to a Research Plan relating to the identification and early pre-clinical testing of Licensed Products, including
synthesis and testing by in vitro assay of Antibodies, the further testing, including structural studies, characterization and optimization thereof and/or via animal model, leading up to naming a Development Candidate or a backup Development
Candidate, but not including GLP toxicology testing. Research shall exclude Development; provided, however, that Research and Development can proceed in parallel and Research can include non-GLP work done to characterize a Development
Candidate after its nomination. 
 1.78. “Research Plan”. Research Plan means the written plan, outlining the
activities to be conducted by or on behalf of AVEO and/or Schering-Plough pursuant to the Research Program, the responsibilities of the Parties, work timelines and the associated budget for such activities. The Research Plan has been approved by the
Parties as of the Execution Date and may be amended from time to time pursuant to Section 3.1. 
 1.79. “Research
Program”. Research Program means the research activities which are to be conducted by or on behalf of AVEO and/or Schering-Plough with the objective of identifying and characterizing anti-HGF Antibodies as Development Candidates,
identifying Biomarkers and investigating clinical Indications preclinically. 
 1.80. “Research Program Term”.
Research Program Term means the period commencing on the Effective Date and ending on the third anniversary of the Effective Date, as the same may be extended by mutual written agreement of the Parties. 
 1.81. “Schering-Plough Intellectual Property”. Schering-Plough Intellectual Property means the Schering-Plough Know-How and
the Schering-Plough Patent Rights. 
  

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 1.82. “Schering-Plough Know-How”. Schering-Plough Know-How means
(a) any Know-How that is Controlled by Schering-Plough or its Affiliates as of the Execution Date or during the Term that is necessary or reasonably useful for AVEO’s performance under this Agreement, and (b) for the purpose of
Section 12.6, any Know-How that is necessary or reasonably useful for AVEO to make, have made, use, sell, offer for sale and import Licensed Product in the Field in the Territory. Schering-Plough Know-How does not include Schering-Plough’s
interests in any Program Know-How. 
 1.83. “Schering-Plough Patent Rights”. Schering-Plough Patent Rights
means all Patent Rights that are Controlled by Schering-Plough or any of its Affiliates as of the Execution Date or thereafter during the Term, that claim or disclose Schering-Plough’s interests in Program Know-How. 
 1.84. “Sublicensee”. Sublicensee means a Third Party to whom a Party has granted a sublicense to Develop, use, formulate,
Manufacture, fill and finish, register, distribute and/or sell Licensed Products. 
 1.85. “Territory”.
Territory means all countries of the world. 
 1.86. “Third Party”. Third Party means any entity other than
AVEO or Schering-Plough or any of their respective Affiliates. 
 1.87. “United States”. United States means
the United States, its territories and possessions. 
 1.88. “Valid Claim”. Valid Claim means any claim in an
issued and unexpired patent that has not been held unenforceable, unpatentable or invalid in a decision of a court of competent jurisdiction or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed
for appeal, or that has not been admitted to be invalid or unenforceable through reissue, re-examination or disclaimer. 
 1.89.
“Veterinary Licensed Product”. Veterinary Licensed Product means any and all anti-HGF pharmaceutical products for the treatment of diseases in animals: (a) that contain any AVEO Molecule, Derived Molecule, or any pharmaceutical
or biological preparation containing any AVEO Molecule or Derived Molecule; or (b) for which the manufacture, use, offer for sale, sale, import or export is Covered by an AVEO Patent Right or Joint Patent Right in the country for which such
product is used, offered for sale, sold, manufactured, imported or exported. 
 1.90. Additional Definitions. Each of the
following definitions is set forth in the Section of this Agreement indicated below: 
  

			
	 Definition:
	  	Section:
	 Applicable Percentage
	  	5.2(b)
	 AVEO/SP Material Transfer Agreement
	  	1.19
	 Agents
	  	9.1

  

 13 

			
	 Definition:
	  	Section:
	 AVEO
	  	Preamble
	 AVEO Parties
	  	11.1
	 AVEO Sole Inventions
	  	8.1(a)
	 Combination Product
	  	1.62
	 Commercial Milestones
	  	7.5(m)
	 Competing Product
	  	6.6
	 Confidentiality Agreement
	  	1.19
	 Co-Promotion Agreement
	  	5.2(a)
	 Co-Promotion Indication
	  	5.2(a)
	 Co-Promotion Option
	  	5.2(a)
	 Diagnostic Licensed Product Revenue
	  	7.7(c)
	 Execution Date
	  	Preamble
	 FD&C Act
	  	1.49
	 Indemnitee
	  	11.3(a)
	 Indemnitor
	  	11.3(a)
	 Infringement Claim
	  	8.3(a)
	 Joint Commercialization Committee or JCC
	  	5.2(e)
	 Joint Research and Development Committee or JRDC
	  	2.1
	 JSC
	  	2.1
	 Joint Inventions
	  	8.1(b)
	 Paragraph IV Certification
	  	8.6
	 Quarterly Research Fee
	  	7.3
	 Research Costs
	  	3.3(a)
	 Royalty Term
	  	7.6(c)
	 Schering-Plough
	  	Preamble
	 Schering-Plough Parties
	  	11.2
	 Schering-Plough Sole Inventions
	  	8.1(a)
	 Sole Inventions
	  	8.1(a)
	 Term
	  	12.1
	 Third Party Claims
	  	11.1(c)
	 Third Party Patent Licenses
	  	7.6(d)
	 [**]
	  	1.10

 ARTICLE II. JOINT STEERING COMMITTEE 
 2.1. Creation and Structure of the JSC. The Parties shall create a joint steering committee (the “JSC”) to
facilitate the Parties’ Research and Development collaboration called for herein. The JSC shall be the executive committee responsible for the overall governance of the Parties’ Research and Development activities under this Agreement
during the Development Term, including the activities of the Joint Research and Development Committee (“JRDC”). The JSC shall consist of three (3) representatives designated by each Party, or such other number as the Parties
may mutually agree. As soon as practicable following the Effective Date (but in

  

 -14- 

 
no event more than thirty (30) days following the Effective Date), each Party shall designate by written notice its initial representatives on the JSC. Thereafter, if AVEO provides written
notice to Schering-Plough that it elects not to participate in the JSC, the JSC shall be disbanded and all decisions and responsibilities previously in the purview of the JSC shall be made and assumed by Schering-Plough. The JSC shall appoint a
chairperson from among its members, who shall alternate annually between representatives of AVEO and representatives of Schering-Plough, with the first such chairperson being an AVEO representative. Each Party shall be free to change its
representatives on written notice to the other or to send a substitute representative to any JSC meeting; provided, however, that each Party will ensure that at all times during the existence of the JSC, its representatives on the JSC
are appropriate in terms of expertise and seniority (including at least one member of senior management) for the then current stage of Research and Development of Licensed Products. At the end of the Development Term, the JSC shall be disbanded and
Schering-Plough shall assume all responsibilities of the JSC. Thereafter, the Parties shall meet semi-annually at mutually agreed times and places to discuss Development activities under this Agreement. 
 2.2. Meetings. The JSC shall meet on a quarterly basis, or more often as the Parties shall agree. Meetings of the JSC shall alternate
between the offices of AVEO and Schering-Plough. A JSC member of the Party hosting the meeting shall serve as secretary of that meeting, who shall be responsible for preparing the minutes of the meeting. Such minutes shall provide a description in
reasonable detail of the discussions held at the meeting and a list of any actions, decisions or determinations approved by the JSC. The Parties agree that they shall endeavor to ensure that draft minutes of each meeting shall be distributed within
ten (10) days after the meeting, and final minutes shall be approved by both Parties in writing within thirty (30) days after the meeting. Final minutes of each meeting shall be distributed to the members of the JSC by the chairperson. The
JSC may also convene, or be polled or consulted, from time to time by means of telecommunications, video conferencing or written correspondence, as deemed necessary or appropriate. Each Party shall propose to the other Party agenda items at least
two (2) weeks in advance of each meeting of the JSC and the agenda shall be finalized at least five (5) Business Days prior to the meeting date. Each Party may invite other of its representatives with special skills or knowledge to attend
JSC meetings where appropriate. The JSC shall adopt such other rules as shall be necessary or convenient for its work. Each Party shall be responsible for all travel and other costs for its representatives to attend meetings of, and otherwise
participate on, the JSC. 
 2.3. Responsibilities of the JSC. Within thirty (30) days after the Effective Date, the
JSC shall be responsible for developing a charter that describes its activities and responsibilities in greater detail. The JSC shall function as a forum (a) for the Parties to inform and consult with one another concerning progress of the
Research and Development of Licensed Products, and (b) to review, approve, monitor and suggest revisions to (as the JSC deems appropriate) the Research Plans and the Joint Development Plans, as applicable. Without limiting the generality of the
foregoing, the JSC shall be responsible for: 
 (i) approving strategy and monitoring the Research and
Development of Licensed Products under the Research Plans and Joint Development Plans; and 
  

 -15- 

 (ii) reviewing and approving a pharmacovigilance plan. 
 2.4. JRDC. The JSC shall initiate the formation of the JRDC, with representatives from each Party. The JRDC will have the
responsibilities as described in Section 4.1(a). The JRDC may, from time to time, establish project teams as the working groups responsible for activities related to the Research or Development of Licensed Products. The JRDC shall be
established within thirty (30) days after the Effective Date. The JRDC shall remain in place until the later of the expiration of the Research Term or the expiration of the Development Term. Thereafter, the JRDC shall be disbanded and
Schering-Plough shall assume all responsibilities of the JRDC. After the JRDC has been disbanded, and at Schering-Plough’s option, the Parties may meet at mutually agreed times and places to discuss Development activities under this Agreement.

 2.5. Decisions of the JSC. At least two JSC representatives from each Party must participate in a meeting of the JSC
(or any subcommittee thereof) in order for there to be a quorum for such meeting. Subject to the remainder of this Section 2.5, all decisions of the JSC shall be made by the unanimous vote of the members of the JSC, with the JSC representatives
of each Party collectively having one vote. The Parties shall use reasonable good faith efforts to reach consensus on all issues within the responsibility of the JSC. If members of the JSC cannot agree with respect to a particular issue within the
responsibility of the JSC, then such issue shall be referred to the President of the Schering-Plough Research Institute division of Schering Corporation (“SPRI”) and the Chief Executive Officer of AVEO, who shall meet in a good
faith effort to resolve the dispute within thirty (30) days. If such individuals cannot agree on a resolution of the dispute within such thirty (30) day period, then it shall be finally decided by the President of SPRI, which shall
include, final decisions on any amendments to the Research Plan and the initial and annual Joint Development Plan (and the budgets associated with the Research Plan and Joint Development Plans). 
 2.6. Limitation on JSC Authority. Schering-Plough may not exercise its final decision making authority pursuant to Section 2.5
in a manner that would (i) require AVEO to perform activities that cannot reasonably be accomplished by funding provided by Schering-Plough pursuant to the Research Plan, or (ii) exceed the scope of activities of the then current Research
Plan. Notwithstanding the creation of the JSC, each Party shall retain the rights, powers and discretions granted to it hereunder, and the JSC shall not be delegated or vested with any such rights, powers or discretion unless such delegation or
vesting is expressly provided for herein or the Parties expressly so agree in writing. The JSC shall not have the power to make any decisions other than those set forth in Section 2.3 or otherwise expressly set forth in this Agreement. Without
limiting the generality of the foregoing, the JSC may not amend or modify this Agreement, which may be amended or modified only as provided in Section 15.4, and no exercise by Schering-Plough of its tie-breaking vote pursuant to
Section 2.5 may alter the rights of the Parties under this Agreement. 
 2.7. Project Leaders. Schering-Plough and
AVEO shall each appoint one person from its JRDC representatives to coordinate their respective activities to develop a Research Plan and Joint Development Plans for the Research and Development of Licensed Products (the “Project
Leaders”). Such individuals shall be responsible for, among other things, ensuring the appropriate level of information exchange between the Parties regarding Licensed Products, as contemplated by Sections 2.8 and 4.1, as well as scheduling
the JRDC meetings. 
  

 -16- 

 2.8. Reports to JSC. On a quarterly basis, each Party shall provide the JSC with
reports regarding the activities performed by such Party under the Research Plan and in the Development of Licensed Products. Each such report shall accurately summarize in reasonable detail the major activities undertaken by such Party during the
prior Calendar Quarter, as well as the results of such activities. 
 ARTICLE III. RESEARCH PROGRAM 
 3.1. Research Plan. The Parties will conduct a Research Program directed to completion of research activities necessary for the
advancement of one or more AVEO Molecules to become a Development Candidate, or back-up Development Candidate, and to establish and conduct research activities to identify Biomarkers for use in the Development and Commercialization of Licensed
Products, as applicable. The Research activities will be conducted pursuant to a Research Plan. With the prior approval of the JSC, the Research Plan may be amended from time to time by the JRDC in accordance with Section 2.3. 
 3.2. Efforts. AVEO and Schering-Plough shall each use Commercially Reasonable Efforts to undertake the Research Program in accordance
with the Research Plan. 
 3.3. Funding. 
 (a) Schering-Plough shall fund the Research Program pursuant to Section 7.3. AVEO shall invoice Schering-Plough
quarterly, in advance, for its FTE Costs and out-of-pocket expenses that AVEO reasonably anticipates incurring for the Research Program in such Calendar Quarter (the “Research Costs”). 
 (b) The amount and timing of the first payment of Research Costs under this Agreement shall be determined by the JSC
according to the Research Plan and shall cover the first full Calendar Quarter of the Research Program along with the period commencing on the Execution Date and until the first full Calendar Quarter of the Research Program. Such first payment shall
be made within ten (10) Business Days after the commencement of the Research Program Term. 
 (c) Within
fifteen (15) Business Days after the end of each Calendar Quarter during the Research Program Term, AVEO shall provide Schering-Plough with a reasonably detailed statement of expenditure for the Calendar Quarter just ended setting out the
Research Costs actually incurred by AVEO. Such statement shall include, but not be limited to, the number of individuals doing the work, the amount of time spent on the work, the nature of the work and supporting documentation for disbursements,
including copies of invoices received from Third Parties, and a running total of Research Costs incurred in that Calendar Quarter against the payment made by Schering-Plough for that Calendar Quarter. If the actual Research Costs incurred by AVEO in
performing its obligations under the Research Plan in a Calendar Quarter are greater than the advance payment made by Schering-Plough for that Calendar Quarter (as shown by the statements of expenditure for the Calendar Quarter in question), AVEO
shall add such amount to its next quarterly invoice for Research Costs to be issued and Schering-Plough

  

 -17- 

 
shall pay such additional amount to AVEO as part of the forthcoming payment to reconcile such shortfall. If at the end of the Research Program Term there are outstanding Research Costs owing to
AVEO, AVEO shall invoice Schering-Plough for such amount when it submits its detailed statement of expenditure for the final month of the Research Program Term. If the actual Research Costs incurred by AVEO in a Calendar Quarter in performing its
obligations under the Research Program (as shown by the statements of expenditure for the Calendar Quarter in question), are less than the advance payment made by Schering-Plough for that Calendar Quarter, AVEO shall credit Schering-Plough against
AVEO’s future Research Costs for the sum of such overpayment and shall show such credit on its next invoice for Research Costs. However, in the event that there has been an overpayment in the final Calendar Quarter of the Research Program Term,
AVEO shall reimburse Schering-Plough for such overpayment within thirty (30) days after Schering-Plough receives the statement of expenditure for the final month of the Research Program Term. 
 (d) Except as expressly set forth in this Agreement, each of Schering-Plough and AVEO shall be solely responsible for its own
out-of-pocket costs and disbursements incurred, and for providing the necessary facilities, supplies, personnel and other resources necessary, in the performance of its obligations under this Agreement. 
 ARTICLE IV. DEVELOPMENT 
 4.1. General. 
 (a) JRDC. The JRDC shall prepare and
submit the Research Plans and the Joint Development Plans to the JSC for approval. The Parties shall each appoint three (3) voting members to the JRDC and each Party may appoint additional non-voting members as it deems necessary. If AVEO has
elected not to participate in the JSC in accordance with Section 2.1, from the time of such election, the JRDC shall be disbanded and all decisions and responsibilities previously in the purview of the JRDC shall be made and assumed by
Schering-Plough. The JRDC shall meet on a quarterly basis at the same time and place as the quarterly meeting of the JSC, and may meet more frequently as the Parties shall agree (which may be held in person or by teleconference or videoconference,
as the Parties may agree). AVEO shall appoint one of its members to act as the committee chairperson for the period AVEO acts as the Primary Responsible Party in accordance with Section 4.1(b). Schering-Plough shall appoint one of its members
to act as the committee chairperson for the period it acts as Primary Responsible Party in accordance with Section 4.1(c). Each Party may change its representatives to the JRDC from time to time in its sole discretion, effective upon written
notice to the other Party of such change. These representatives shall have appropriate experience and knowledge, and ongoing familiarity with Development activities regarding such Licensed Product. The initial plans for Research and Development, and
any initial annual plans, shall be created by the JRDC for approval by the JSC. The JRDC shall be responsible for providing advice with respect to and generally supervising Research and Development pursuant to the Research Program and the Joint
Development Plans, reviewing and approving clinical trial agreements entered into by a Party with one or more Third Parties, and for deciding disputes between the Parties with respect to work to be performed under the Research Program and the Joint
Development Plans. It is specifically understood, however, that the day-to-day management of the activities allocated to either Party under the Research Program and the Joint Development Plans shall be managed by such Party rather than the JRDC.

  

 -18- 

 (b) Primary Responsible Party and Joint Development Plan. The Primary
Responsible Party, as set forth below, shall be responsible for taking the lead role on certain Development activities and conducting the activities assigned to it in the Joint Development Plan. The responsibilities of the Primary Responsible Party
shall include (i) preparing the initial draft of the Joint Development Plan (which shall include timelines, budgets and proposed allocations of responsibility) and amendments thereto, for consideration by the JRDC, (ii) preparing the
initial draft of clinical trial protocols for review by the JRDC, and (iii) conducting clinical trials and preparing initial drafts of final study reports. The JRDC Project Leaders shall be responsible for coordinating their respective
Parties’ input into the plans and drafting the plans. The JRDC shall be responsible for reviewing the Joint Development Plan and amendments to the Research Plan and Joint Development Plan and submitting such plans to the JSC for review and
approval [**] days prior to the start of each Calendar Year (except as provided in Sections 4.1(c) and 4.3(b). Each Joint Development Plan shall cover all Development activities to be conducted in the next Calendar Year, including the budget for
such activities, as well as a summary of planned activities through Regulatory Approval. The Joint Development Plan (and all modifications and amendments thereto) shall specifically reflect the obligations of the applicable Party to use Commercially
Reasonable Efforts to (i) implement Development strategies for the purpose of obtaining Regulatory Approval for Licensed Products in all Major Markets, (ii) pursue Regulatory Approval of Licensed Products in all Major Markets (subject to
interruptions dictated by Regulatory Authorities), and (iii) support the pursuit of more than one Indication for each Licensed Product according to Schering-Plough’s normal practice and if supported by the Research Program data and/or
other public, peer reviewed data accepted by the JRDC as scientifically sound and commercially reasonable. 
 (c)
Primary Responsible Party - AVEO. Commencing on the Effective Date and until completion of the first Proof of Concept Study for a Licensed Product (or a subsequent Proof of Concept Study or other event as the Parties may mutually agree), AVEO
shall be the Primary Responsible Party for certain US related Development activities. The Parties acknowledge that AVEO’s conduct of any clinical studies of Licensed Products will be based on the content of the current Joint Development Plan.

 (d) Primary Responsible Party - Schering-Plough. After completion of the first Proof of Concept Study
for a Licensed Product (or a subsequent Proof of Concept Study or other event as the Parties may mutually agree), Schering-Plough shall be the Primary Responsible Party and shall be responsible for the Development of Licensed Products in the Field,
and shall use Commercially Reasonable Efforts to Develop Licensed Products consistent with the approved Joint Development Plan. 
 (e) Manufacturing Responsibility. Regardless of whether AVEO or Schering-Plough is the Primary Responsible Party, Schering-Plough shall have primary day-to-day responsibility for all Manufacturing
related matters and shall use Commercially Reasonable Efforts to Manufacture Licensed Product for Development activities set forth in the Joint Development Plan. The Joint Development Plan shall include plans for Manufacturing to support all planned
Development activities. 
  

 -19- 

 (f) Development Costs. 
 (i) Schering-Plough shall fund, in accordance with Section 7.4, all Development Costs incurred by AVEO after the
Effective Date pursuant to the Joint Development Plan (including any budgets attached to or associated with the Joint Development Plan). Such Development Costs shall include, without limitation, all amounts (other than royalties on the sales of
products) payable by AVEO pursuant to [**]. 
 (ii) The amount and timing of the first payment of Development
Costs under this Agreement shall be determined by the JSC according to the Joint Development Plan and shall cover the first full Calendar Quarter of activities conducted under the Joint Development Plan, along with the prorated portion of the
Calendar Quarter in which activities under the Joint Development Plan begin. Such first payment shall be made within ten (10) Business Days after commencement of the Development Term. 
 (iii) Within [**] Business Days after the end of each month during the Development Term, AVEO shall provide Schering-Plough
with a detailed statement of its Development Costs for the month just ended, setting out the Development Costs actually incurred by AVEO. Such statement shall include, but not be limited to, [**]. 
 (iv) Within [**] Business Days after the end of each Calendar Quarter during the Development Term, AVEO shall provide
Schering-Plough with a reasonably detailed statement of its Development Costs for the Calendar Quarter just ended, setting out the Development Costs actually incurred by AVEO. Such statement shall include, but not be limited to, [**]. If the actual
Development Costs incurred by AVEO in performing its obligations under the Joint Development Plan in a Calendar Quarter are greater than the advance payment made by Schering-Plough for that Calendar Quarter (as shown by the statements of expenditure
for the Calendar Quarter in question), AVEO shall add such amount to its next quarterly invoice for Development Costs to be issued and Schering-Plough shall pay such additional amount to AVEO as part of the forthcoming payment to reconcile such
shortfall. If at the end of the Development Term there are outstanding Development Costs owing to AVEO, AVEO shall invoice Schering-Plough for such amount when it submits its detailed statement of expenditure for the final month of the Development
Term. If the actual Development Costs incurred by AVEO in a Calendar Quarter in performing its obligations under the Joint Development Plan (as shown by the statements of expenditure for the Calendar Quarter in question), are less than the advance
payment made by Schering-Plough for that Calendar Quarter pursuant to Section 7.4, AVEO shall credit Schering-Plough against AVEO’s future Development Costs for the sum of such overpayment and shall show such credit on its next invoice for
Development Costs. However, in the event that there has been an overpayment in the final Calendar Quarter of the Development Term, AVEO shall reimburse Schering-Plough for such overpayment within thirty (30) days after Schering-Plough receives
the statement of expenditure for the final month of the Development Term. 
  

 -20- 

 (v) Except as expressly set forth in this Agreement, each of Schering-Plough
and AVEO shall be solely responsible for its own out-of-pocket costs and disbursements incurred, and for providing the necessary facilities, supplies, personnel and other resources necessary, in the performance of its obligations under this
Agreement. 
 4.2. Manufacturing Matters; AVEO Third Party Agreements. 
 (a) Schering-Plough, itself or through an Affiliate or Third Party contractor (subject to Section 4.2(b)), shall have
the sole right to, and shall be solely responsible for the Manufacture, with the right to sublicense, of clinical and commercial quantities of Licensed Products necessary for the Development and Commercialization of Licensed Products in the Field
and in the Territory, at its sole cost and expense. Schering-Plough shall use Commercially Reasonable Efforts to Manufacture, itself or with Third Parties, Licensed Product in such quantities as are appropriate to Develop Licensed Product for
Commercialization and to Commercialize Licensed Product in at least all Major Markets. 
 (b) Within [**] days
after the Effective Date, and after acquiring any necessary consent, AVEO shall assign to Schering-Plough, and Schering-Plough shall assume, all of AVEO’s rights and obligations under the [**]. Each of AVEO and Schering-Plough hereby agree to
execute all documents and reasonably cooperate with each other in order to effectuate the foregoing. AVEO shall be responsible for all payments due to [**] under the [**] prior to February 1, 2007. Schering-Plough shall be responsible for all
payments due to [**] under the [**] incurred from and after February 1, 2007. To the extent such amounts are paid by AVEO prior to the Effective Date and/or prior to the date the [**] is actually assigned to Schering-Plough as provided in this
Section 4.2(b), Schering-Plough shall reimburse AVEO for all such amounts paid by AVEO within ten (10) Business Days after receipt of an invoice therefore from AVEO. 
 4.3. Ownership of Regulatory Filings and Approvals. Schering-Plough shall prepare, file, own and maintain all regulatory filings and
approvals for Licensed Products in the Territory. 
 4.4. Regulatory Matters Related to Licensed Products. 
 (a) Regulatory Submissions. During the Development Term, AVEO shall assist Schering-Plough and AVEO shall oversee,
monitor and coordinate the collection and compilation of all data necessary for regulatory actions, communications and filings with, and submissions to, the FDA and other Regulatory Authorities in the Territory with respect to all Licensed Products.

 (b) Regulatory Meetings and Correspondence. Schering-Plough shall be responsible for interfacing,
corresponding and meeting with the FDA with respect to Licensed Products. At Schering-Plough’s request, a senior, experienced employee of AVEO shall participate in meetings with Schering-Plough and the FDA, as well as participate in internal
meetings or discussions of Schering-Plough occurring immediately before or after, and related to such meetings. AVEO shall be provided with advance access to any materials or information in Schering-Plough’s possession for use in such meetings.
AVEO shall have the right to have a senior, experienced employee of AVEO reasonably acceptable to Schering-Plough, attend as an observer

  

 -21- 

 
in meetings with the FDA, as well as participate in internal meetings or discussions of Schering-Plough occurring immediately before or after, and related to, such meetings, and shall be provided
with advance access to the Schering-Plough’s materials prepared for such meetings. During the Development Term, AVEO shall also have the right to review and comment upon any correspondence with the FDA related to such meetings. 
 (c) Additional Information Regarding Regulatory Activities in the Territory. During the Development Term,
Schering-Plough shall provide AVEO with copies of any material correspondence with FDA relating to Development of, or the process of obtaining approval for, Licensed Products, and respond within a reasonable time frame to all reasonable inquiries by
AVEO with respect thereto. Schering-Plough shall also provide AVEO in a timely manner with meeting minutes from any material meetings with the FDA concerning the same. 
 (d) Pharmacovigilance. During the Development Term, Schering-Plough shall be the Primary Responsible Party for
pharmacovigilence matters with respect to Licensed Product. Each applicable Joint Development Plan shall include a plan for the collection, review, assessment, tracking and filing of information related to adverse events (“AEs”)
associated with Licensed Products, in accordance with 21 C.F.R. 312.32, 314.80 and comparable regulations, guidance, directives and the like governing AEs associated with Licensed Products that are applicable outside of the United States.

 ARTICLE V. COMMERCIALIZATION 
 5.1. General. Subject to the rights of AVEO under this Article V, Schering-Plough shall have sole responsibility and decision-making authority for Commercialization activities related to the
Licensed Product, and Schering-Plough shall be responsible for all costs and expenses associated with the Commercialization activities related to the Licensed Product (subject to the Co-Promotion Agreement if AVEO exercises its Co-Promotion Option),
in each case in the Field in the Territory. Schering-Plough shall use Commercially Reasonable Efforts to Commercialize the Licensed Products in the Major Markets. 
 5.2. Option to Co-Promote. 
 (a) Schering-Plough hereby
grants to AVEO an option (the “Co-Promotion Option”) to co-promote the Licensed Product in the United States for an oncology Indication which is the subject of the First Product Filing (the “Co-Promotion
Indication”) in accordance with a co-promotion agreement (the “Co-Promotion Agreement”) to be negotiated by the Parties. The Co-Promotion Agreement will include the material terms set forth in Exhibit C. 
 (b) Schering-Plough shall give AVEO written notice [**] months prior to the first New Drug Application filed for a Licensed
Product in the United States (“First Product Filing”) and shall further provide AVEO with information on its current commercialization plan for the Licensed Product in the United States (collectively, the “Co-Promotion
Notice”) for the purpose of enabling AVEO to decide whether it will exercise its Co-Promotion Option. In the event AVEO decides to exercise its Co-Promotion Option, it shall do so by providing written notice to Schering-Plough within [**]
days after AVEO receives the

  

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Co-Promotion Notice. Such written notice shall specify the level of AVEO’s sales efforts to be elected from the following three (3) levels: [**] percent ([**]%), [**] percent ([**]%) or
[**] percent ([**]%) of the sales efforts for the Co-Promotion Indication (the “Applicable Percentage”). Following the exercise of such Co-Promotion Option, the Parties shall negotiate in good faith the Co-Promotion Agreement, using
reasonable efforts to enter into such agreement as soon as practicable. 
 (c) If the Indication that is the
subject of the First Product Filing (the “Initial Indication”) is not a Large Market Tumor Indication then AVEO shall also have the option to Co-Promote the Licensed Product for the Indication that is the subject of the first Large
Market Tumor Indication (the “Second Indication”), such Co-Promotion to be under the same terms and conditions as are applicable to the Co-Promotion of the First Indication. For clarity, in the event that AVEO exercises the
Co-Promotion Option for a Second Indication pursuant to this paragraph (c), AVEO shall be required to provide the Applicable Percentage of the sales efforts for each of the Initial Indication and the Second Indication. Additionally, in the event
that AVEO exercises its Co-Promotion Option for an Indication that does not receive Regulatory Approval, such Co-Promotion Option shall be reinstated for the next Indication for which a New Drug Application is filed for a Licensed Product for an
oncology Indication in the United States. 
 (d) Notwithstanding AVEO’s exercise of the Co-Promotion Option,
Schering-Plough shall [**]. 
 (e) Joint Commercialization Committee. The Co-Promotion Agreement will
include provisions for a Joint Commercialization Committee (“JCC”)to provide for the sharing of information, facilitation of communications, and cooperation of the Parties concerning the Commercialization of the Licensed Product in
the Co-Promotion Indication in the United States. 
 5.3. Recalls. 
 (a) Each Party shall promptly notify the other Party in writing if it determines that any event, incident or circumstance has
occurred which may result in the need for a “recall” or “market withdrawal” (as such terms are defined in 21 CFR 7.3 or other similar national, state or local law or regulation) (hereinafter referred to as a
“Recall”) of a Licensed Product or any lot(s) thereof. 
 (b) Schering-Plough shall be
responsible for determining whether and upon what terms and conditions Licensed Product shall be Recalled or otherwise withdrawn from sale to Third Parties within any country in the Territory. Schering-Plough shall be responsible for discussions
with Regulatory Authorities within the applicable country regarding all aspects of the Recall decision and the execution thereof. 
 (c) If at any time (i) any Regulatory Authority in the Territory issues a request, directive or order for a Recall of a Licensed Product in the Territory or (ii) a court of competent
jurisdiction orders a Recall of a Licensed Product in the Territory, then Schering-Plough shall be responsible for implementing such Recall. The expenses arising from such Recall shall be the responsibility of Schering-Plough. 
  

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 ARTICLE VI. GRANTS OF RIGHTS 
 6.1. AVEO Grants of Rights. 
 (a) AVEO hereby grants to Schering-Plough an exclusive (even as to AVEO and its Affiliates, except as provided in Section 6.1(f) and (g), and subject to Section 6.3), royalty-bearing license,
with the right to grant sublicenses (in accordance with Section 6.1(e)) under the AVEO Intellectual Property to make and have made, use, offer for sale, sell and import Licensed Products in the Field in the Territory. Promptly after the
Effective Date, AVEO shall send [**] a letter drafted by Schering-Plough that requests [**] to confirm that it will allow Schering-Plough to assume AVEO’s rights and obligations under the [**] in the event that agreement is terminated during
the Term of this Agreement. 
 (b) AVEO hereby grants to Schering-Plough an exclusive (even as to AVEO and its
Affiliates, except as provided in Section 6.1(f) and (g), and subject to Section 6.3), royalty-bearing license, with the right to grant sublicenses (in accordance with Section 6.1(e)) under the AVEO Intellectual Property to make and
have made, use, offer for sale, sell and import Diagnostic Licensed Products in the Field in the Territory. 
 (c) AVEO hereby grants to Schering-Plough an exclusive (even as to AVEO and its Affiliates, except as provided in Section 6.1(f) and (g) and subject to Section 6.3), royalty-bearing license, with the right to grant
sublicenses (in accordance with Section 6.1(e)) under the AVEO Intellectual Property to make and have made, use, offer for sale, sell and import Veterinary Licensed Products in the Field in the Territory. 
 (d) AVEO hereby grants to Schering-Plough a non-exclusive, royalty-free license, including the right to grant sublicenses to
Third Parties conducting research on behalf of or in collaboration with Schering-Plough, under any Program Patent Rights solely owned by AVEO, and not licensed to Schering-Plough in Sections 6.1 (a), (b), or (c), for Schering-Plough’s Research
purposes in the Territory. 
 (e) Schering-Plough shall have the right to grant sublicenses under the licenses
granted to Schering-Plough under Sections 6.1(a), 6.1(b) and 6.1(c) to its Affiliates and to Third Parties without AVEO’s prior written approval; provided, however, that any such sublicense shall be subject to the limitations
applicable to Schering-Plough’s exercise of such licenses, as set forth in Sections 6.1(f), 6.1(g) and 6.3. Any sublicense to a Third Party (including further sublicenses of such sublicenses) shall be subject to the terms and conditions of this
Agreement, and Schering-Plough shall provide AVEO with a copy of such Third Party sublicense Agreement within five (5) Business Days after execution thereof (with a redaction of terms not relevant to this Agreement). Each such sublicense shall
be consistent with all the terms and conditions of this Agreement, and Schering-Plough shall guarantee the performance of its Affiliates and Sublicensees with respect to any sublicense granted pursuant to this Section 6.1(e). 
 (f) The licenses granted to Schering-Plough pursuant to Sections 6.1(a), 6.1(b) and 6.1(c) shall be subject to
AVEO’s retained rights to (i) perform research to evaluate Licensed Products and to identify Biomarkers (solely in connection with the Research Plan) and therapeutic Indications that may be used by both Parties under each Joint Development
Plan; and (ii) perform its obligations under each Joint Development Plan. 
  

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 (g) Existing Third Party Agreements. The licenses granted by AVEO to
Schering-Plough in this Section 6.1 are subject to the terms of the AVEO Third Party Agreements. 
 6.2. Schering-Plough
Grants of Rights. 
 (a) Schering-Plough hereby grants to AVEO a limited, non-exclusive, worldwide,
royalty-free license, including the right to grant sublicenses (in accordance with Section 6.2(b)) under the Schering-Plough Intellectual Property to (i) perform its obligations under the Research Plan; and (ii) perform its
obligations under each Joint Development Plan. 
 (b) AVEO shall have the right to grant sublicenses, without the
right of such Sublicensees to grant further sublicenses, under the licenses to the Schering-Plough Intellectual Property granted to AVEO under Section 6.2(a) to any of its Affiliates and to Third Parties, that are conducting activities for AVEO
pursuant to AVEO’s obligations under this Agreement, with the prior written approval of Schering-Plough, such approval not to be unreasonably withheld. Any such sublicenses shall be subject to the terms and conditions of this Agreement, and
AVEO shall provide Schering-Plough with a copy of any sublicense Agreement within five (5) Business Days after execution thereof. Each such sublicense shall be consistent with all the terms and conditions of this Agreement, and AVEO shall
guarantee the performance of its Affiliates and Sublicensees with respect to any sublicense granted pursuant to this Section 6.2. 
 6.3. Additional Payments. With respect to Patent Rights or Know-How (a) that are licensed-in or acquired by a Party or one of its Affiliates after the Execution Date, and (b) are subject to additional payments if such
Patent Rights and/or Know-How are licensed to the other Party pursuant to this Agreement, such Patent Rights and/or Know-How (as applicable) shall be licensed (or sublicensed) to such other Party or its Affiliates only if such other Party agrees to
make such additional payments, or reimburse the licensing Party for such additional payments. In the event Schering-Plough licenses Third Party Patent Rights or Know-How that Schering-Plough deems necessary for the Commercialization of a Licensed
Product, then any costs for such license shall be shared by the Parties, as more specifically set forth in Section 7.6(d). 
 6.4. Rights Retained by the Parties. Any rights of AVEO or Schering-Plough, as the case may be, not expressly granted to the other Party pursuant to this Agreement shall be retained by such Party. Without limiting the generality of
the foregoing, no right or license is granted under the AVEO Intellectual Property, other than rights and licenses to Biomarkers, Licensed Products and Other Licensed Products, as set forth in Section 6.1. 
 6.5. Section 365(n) of the Bankruptcy Code. All rights and licenses granted under or pursuant to any Section of this
Agreement, including under Sections 6.1 and 6.2, are rights to “intellectual property” (as defined in Section 101(35A) of the Bankruptcy Code). Each of AVEO and Schering-Plough hereby acknowledges that (a) copies of research
data, (b) laboratory samples, (d) product samples, (d) formulas, (e) laboratory notes and notebooks, (f) data and results related to clinical trials, (g) regulatory filings and approvals, (h) rights of reference in
respect of regulatory filings and approvals, (i) pre-clinical research data and results, and

  

 -25- 

 
(j) marketing, advertising and promotional materials, in each case, that relate to such intellectual property, constitute “embodiments” of such intellectual property pursuant to
Section 365(n) of the Bankruptcy Code. Each Party shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code or equivalent legislation in any other jurisdiction. Upon the bankruptcy of either Party, the other
Party shall further be entitled to a complete duplicate of, or complete access to, as appropriate, any such intellectual property, and such intellectual property, if not already in its possession, shall be promptly delivered to such other Party,
unless the Party in bankruptcy elects to continue, and continues, to perform all of its obligations under this Agreement. 
 6.6. Exclusivity. For the period of time that begins on the Effective Date and ends two (2) years after the Development Term has ended, neither Party shall, (a) alone or in collaboration with a Third Party, Research,
Develop, Manufacture or Commercialize any Competing Product in the Territory, or (b) grant a license to, or otherwise assist or contract with, any Third Party to Research, Develop, Manufacture, or Commercialize any Competing Product in the
Territory. For purposes of this Section 6.6, “Competing Product” means any composition (other than Licensed Products or Other Licensed Products) containing any compound, molecule, Antibody or other agent that binds to HGF and
directly inhibits or modulates the activity of HGF. 
 ARTICLE VII. FINANCIAL PROVISIONS 
 7.1. Initial License Payments. Schering-Plough will make a payment to AVEO of Seven Million Five Hundred Thousand Dollars
($7,500,000) no later than ten (10) Business Days after the Effective Date. 
 7.2. Equity Investment. On the
Execution Date, AVEO and Schering Corporation shall execute a stock purchase agreement pursuant to which Schering Corporation shall purchase Ten Million Dollars ($10,000,000) of AVEO stock (the “Stock Purchase Agreement”), such
purchase to be consummated within two (2) Business Days after the Effective Date. 
 7.3. Research Program. Within
ten (10) Business Days after the Effective Date, Schering-Plough shall pay AVEO an initial advance research fee as set forth in Section 3.3. Thereafter, Schering-Plough shall pay AVEO an advance Quarterly Research Fee for the next Calendar
Quarter of the Research Program Term as set forth in Section 3.3. As used in this Agreement, “Quarterly Research Fee” means up to [**] Dollars ($[**]), according to the agreed upon budget set forth in the Research Plan.
Research payments made hereunder shall not exceed Three Million Dollars ($3,000,000) per year during the Research Term, unless otherwise agreed by the Parties in writing in advance. 
 7.4. Development Program. On or prior to the tenth (10th) Business Day after the initial Joint Development Plan is approved by
the JSC, Schering-Plough shall pay AVEO an initial advance development fee as set forth in Section 4.1(f). Thereafter, Schering-Plough shall pay AVEO an advance Quarterly Development Fee for the next Calendar Quarter of the Development Term as
set forth in Section 4.1(f). As used in this Agreement, “Quarterly Development Fee” means the Development Costs to be incurred by or on behalf of AVEO or its Affiliates during the immediately following Calendar Quarter,
according to the agreed upon budget set forth in, or associated with, the Joint Development Plan(s). 
  

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 7.5. Milestone Event Payments. Schering-Plough shall make the non-refundable payments
to AVEO set forth below not later than thirty (30) days after the date on which the corresponding milestone event is first achieved: 
  

							
	 Milestone Event
	  	Payment
	 (a)
	  	 [**]
	  		  	$[**]
	 (b)
	  	 [**]
	  		  	$[**]
	 (c)
	  	 [**]
	  		  	$[**]
	 (d)
	  	 [**]
	  		  	$[**]
		  	 [**]
	  		  	$[**]
	 (e)
	  	 [**]
	  		  	$[**]
	 (f)
	  	 [**]
	  		  	$[**]
	 (g)
	  	 [**]
	  		  	$[**]
	 (h)
	  	 [**]
	  		  	$[**]
	 (i)
	  	 [**]
	  		  	$[**]
	 (j)
	  	 [**]
	  		  	$[**]
	 (k)
	  	 [**]
	  		  	$[**]
	 (l)
	  	 [**]
	  		  	$[**]

 (m) The milestone payments set forth in Sections 7.5(a), (b), (c),
(d), (e) and (f) shall apply only to the first achievement of the applicable milestone event by the first Licensed Product to achieve such milestone. The milestone payments set forth in Sections 7.5(g), (h), (i), (j), (k) and
(l) (the “Commercial Milestones”) shall be payable by Schering-Plough for up to, but not more than, a total of [**] and/or Other Indications in any combination; provided that the corresponding milestone payments
for such Commercial Milestones shall be [**] percent ([**]%) of the amounts set forth in Sections 7.5(g), (h), (i), (j), (k) and (l) (as applicable) for each Indication approved after the first approved [**] and/or the first approved Other
Indication (as the case may be). 
  

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 (n) If any milestone set forth in Section 7.5(a) (the
“Preclinical Milestone”), Sections 7.5(b), (c), or (d) (the “Clinical Milestones”) or in Sections 7.5(e) or (f) (the “Regulatory Milestones”) is achieved with respect to a Licensed Product
prior to the achievement of an earlier Preclinical Milestone, Clinical Milestone or Regulatory Milestone (as the case may be) for such Licensed Product, then all milestone payments due and payable for the earlier Preclinical Milestone or Clinical
Milestone (as the case may be) shall be due and payable simultaneously with the payment for achievement of the later milestone event. In the event a Pivotal Trial is deemed to be a [**], then the milestone set forth in Section 7.5(d) shall only
be due when the trial progresses to the [**]. In the event of acceptance of [**], and the receipt of [**], milestones paid for acceptance of the [**] shall only be made once for such Indication. For purposes of clarity, if, with respect to any
Licensed Product for an Indication, Schering-Plough initiates a [**] and upon completion of such [**] Schering-Plough files for [**], and subsequently receives such accelerated [**], then (i) Schering-Plough shall be obligated to pay the
milestone under Section 7.5(e) or (f) (as applicable) upon the filing for [**], if such milestone (e) or (f) has not previously been paid for an Indication, (ii) Schering-Plough shall pay the milestone under
Section 7.5(g) or 7.5(j) upon receipt of such [**], (iii) Schering-Plough shall pay the milestone set forth in Section 7.5(d) at such time as a [**] is initiated, it being understood that the initiation of such [**] is likely to occur
(and Schering-Plough shall initiate such [**]) after the receipt of [**], and (iv) Schering-Plough shall not be obligated to pay for a second time the milestone set forth in Section 7.5(g) or 7.5(j) upon receipt of [**]. 
 (o) If Development of any Licensed Product ceases (a “Failed Licensed Product”), and Development of another
Licensed Product (a “Back-Up Product”) subsequently commences or continues, then any of the Preclinical Milestone, Clinical Milestone or Regulatory Milestone payments previously made by Schering-Plough in connection with such Failed
Licensed Product shall be fully credited against any subsequent or repeated achievement of such milestone by the Back-Up Product. 
 (p) In addition, for each Licensed Product, on a one-time basis in each of the United States, the EU and Japan, Schering-Plough will pay AVEO an additional [**] percent ([**]%) of the applicable
Commercial Milestone amounts set forth in Sections 7.5 (g) or (j), (h) or (k), and (i) or (l) upon Regulatory Approval of the first Indication in such country or territory where such Regulatory Approval for such Indication
includes in the labeling a claim for the identification of a targeted patient population and where such label claim is also the subject of a Valid Claim of an AVEO Patent Right in such country or territory. For the avoidance of doubt, for each
Licensed Product, such amounts shall only be paid once for Sections 7.5(g) or (j), once for Sections 7.5(h) or (k) and once for Sections 7.5(i) or (l). 
 (q) Schering-Plough shall make the following one-time sales milestone payments to AVEO the first time cumulative annual
worldwide Net Sales for a Licensed Product reach the specified level: 
  

			
	 Annual Worldwide Net Sales
	  	 Milestone Payment

	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]

  

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 7.6. Licensed Product Royalties. 
 (a) Schering-Plough shall pay to AVEO royalties on Net Sales of Licensed Products in the Territory as provided in
Section 7.6(b) as follows: 
  

				
	 Calendar Year Net Sales of a Licensed Product
	  	Royalty Rate	 
	 Less than or equal to $[**]
	  	[**]	% 
	 Greater than $[**] and less than or equal to $[**]
	  	[**]	% 
	 Greater than $[**] and less than or equal to $[**]
	  	[**]	% 
	 Greater than $[**] and less than or equal to $[**]
	  	[**]	% 
	 Greater than $[**]
	  	[**]	% 

 (b) Applicability of Royalty Rates to Net Sales in the
Territory. Royalties under this Section 7.6 on aggregate Net Sales of any Licensed Product in the Territory in a Calendar Year shall be paid at the rate applicable to the portion of Net Sales within each of the Net Sales levels during such
Calendar Year. For example, if, during a Calendar Year, Net Sales of a particular Licensed Product were equal to $[**], then the royalties payable by Schering-Plough would be calculated by adding (i) the royalties with respect to the first
$[**]. 
 (c) Royalty Term and Adjustments. Schering-Plough’s royalty obligations to AVEO under this
Section 7.6 shall commence on a country-by-country and Licensed Product-by-Licensed Product basis on the First Commercial Sale of such Licensed Product and shall expire on a country-by-country basis and Licensed Product-by-Licensed Product
basis on the later of: (i) the expiration of the last Valid Claim (that is not a patent claim to a Biomarker) of the AVEO Patent Rights or Joint Patent Rights Covering such Licensed Product in such country, or (ii) the tenth
(10th) anniversary of the date of the First Commercial Sale by Schering-Plough or any of its Affiliates or Sublicensees to a non-Sublicensee Third Party of such Licensed Product in such country (the “Royalty Term”). The
foregoing provisions of this Section 7.6(c) notwithstanding, the royalties payable with respect to Net Sales of a Licensed Product shall be reduced to [**] percent ([**]%) of the amounts otherwise payable pursuant to Section 7.6(a) during
any portion of the Royalty Term when there is no Valid Claim (that is not a patent claim to a Biomarker) of the AVEO Patent Rights or Joint Patent Rights Covering such Licensed Product in such country; provided that such reduction
shall not apply if the Licensed Product is entitled to Marketing Exclusivity in such country and there are no other products on the market in such country that contain substantially the same active ingredient as that contained in the Licensed
Product. 
  

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 (d) Third Party Royalties. If Schering-Plough reasonably determines
that, in order to Commercialize a Licensed Product and avoid infringement of any patent not licensed hereunder, it is necessary or advisable to obtain a license from a Third Party and to pay a royalty or other payments under such patent
(“Third Party Patent Licenses”), [**] percent ([**]%) of any royalties or other payments paid under Third Party Patent Licenses by Schering-Plough, its Affiliates or Sublicensees, shall be creditable against royalties payable to
AVEO hereunder. In addition, Schering-Plough shall be responsible for all payments required under the AVEO Third Party Agreements; provided that [**] percent ([**]%) of any royalties paid by Schering-Plough pursuant to any of the AVEO
Third Party Agreements shall be creditable against royalties on the Net Sales of Licensed Products payable to AVEO hereunder. In no event shall all such credits available under this Section 7.6(d), in the aggregate, cause the royalties paid to
AVEO for any particular Calendar Quarter to be reduced by more than [**] percent ([**]%) of the royalties otherwise payable on Net Sales of such Licensed Product in such country; provided that any reduction hereunder, or portion
thereof, that is rendered not usable pursuant to the immediately preceding proviso may be carried forward for use in future Calendar Quarters. 
 7.7. Diagnostic Licensed Products. 
 (a) Schering-Plough
Licenses Third Party. In the event that Schering-Plough licenses a Third Party to Commercialize a Diagnostic Licensed Product, Schering-Plough shall pay to AVEO royalties on the proceeds of all Diagnostic Licensed Product Revenues in the
Territory received by Schering-Plough for such a license based on the royalty table set forth in Section 7.6(a), with such Diagnostic Licensed Product Revenues being deemed to be Net Sales. Such royalties shall be payable (a) with respect
to royalties received by Schering-Plough, its Affiliates or Sublicensees for the period set forth in Section 7.6(c), and any such royalties shall be subject to, where applicable, reductions set forth in the second sentence of
Section 7.6(c); and (b) with respect to all other amounts received by Schering-Plough or any of its Affiliates from any Third Party (including a Sublicensee) in connection with the sale or other disposition of Diagnostic Licensed Products
or rights relating thereto, for so long as Schering-Plough receives such amounts. 
 (b) Schering-Plough
Commercializes. In the event that Schering-Plough or an Affiliate Commercializes a Diagnostic Licensed Product, it shall pay AVEO, on a country-by-country basis, either (i) a royalty of [**] percent ([**]%) on the Net Sales of such
Diagnostic Licensed Product if it is Covered by a Valid Claim of an AVEO Patent Right or a Joint Patent Right, for the life of such Patent Right, or (ii) if there is no such Patent Right or such Patent Right expires prior to the ten
(10) year anniversary of the First Commercial Sale of such Diagnostic Product, a royalty of [**] percent ([**]%) on the Net Sales of such Diagnostic Product for ten (10) years from the First Commercial Sale of such Diagnostic Licensed
Product. 
 (c) As used in this Section 7.7, “Diagnostic Licensed Product Revenues” means
(i) the Net Sales of all Diagnostic Licensed Products by Schering-Plough, its Affiliates or Sublicensees, together with (ii) all other amounts received by Schering-Plough or any of its Affiliates from any Third Party (including a
Sublicensee) in connection with the sale or other disposition of Diagnostic Licensed Products or rights relating thereto. Diagnostic Licensed Product Revenue includes upfront payments and milestone payments paid directly or indirectly to
Schering-Plough (or any of its Affiliates) from (or on behalf of) any Sublicensees (and/or sub-Sublicensees) for Diagnostic Licensed Products. Notwithstanding the foregoing, Diagnostic Licensed Product Revenue

  

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shall exclude (x) all amounts paid to Schering-Plough as a fair market value equity investment in Schering-Plough (whether in the form of stock purchase, options, warrants or other forms);
and (y) research and development funding for activities directly in furtherance of Diagnostic Licensed Product clinical, regulatory and manufacturing process development in order ultimately to seek Regulatory Approval therefor (including
pre-clinical studies to support the filing of an IND and clinical studies). 
 7.8. Veterinary Licensed Products. Upon
the earlier of (i) any decision by Schering-Plough to sublicense rights to develop, manufacture and/or commercialize any Veterinary Licensed Product, or (ii) the first decision by Schering-Plough to develop a Veterinary Licensed Product
(the “Veterinary Licensed Product Decision Date”), Schering-Plough and AVEO shall negotiate in good faith the financial terms and conditions for Veterinary Licensed Products, including royalties on the net sales of such Veterinary
Licensed Product, milestones and other customary payments to AVEO (collectively, the “Veterinary Licensed Product Financial Terms”). The Veterinary Licensed Product Financial Terms shall be commercially reasonable and consistent
with then-current industry standards, and shall fairly reflect the Parties’ relative contributions to the value of the particular Veterinary Licensed Product. 
 7.9. Royalty Reports; Payments. Within forty-five (45) days after the end of each Calendar Quarter during which there are Net Sales from the sale of a Licensed Product and/or a Diagnostic
Licensed Product by Schering-Plough or an Affiliate giving rise to a payment obligation under Section 7.6 or 7.7, Schering-Plough shall submit to AVEO a report identifying its Net Sales for each Licensed Product or Diagnostic Licensed Product,
in each case for each country for such Calendar Quarter, and the royalties and other amounts payable to AVEO pursuant to Sections 7.6 and 7.7. Concurrently with each such report, Schering-Plough shall pay to AVEO all amounts payable by it under
Sections 7.6 and 7.7. 
 7.10. Books and Records; Audit Rights. 
 (a) Schering-Plough shall keep complete and accurate records of the underlying revenue and expense data relating to the
calculations of Net Sales and payments required by Sections 7.5, 7.6, 7.7 and 7.8. AVEO shall have the right, once annually at its own expense, to have an independent, certified public accounting firm, selected by AVEO and reasonably acceptable to
Schering-Plough, review any such records of Schering-Plough in the location(s) where such records are maintained by Schering-Plough upon reasonable notice (which shall be no less than fourteen (14) days’ prior notice) and during regular
business hours and under obligations of strict confidence, for the sole purpose of verifying the basis and accuracy of payments made under Sections 7.5, 7.6, 7.7 and 7.8 within the thirty-six (36) month period preceding the date of the request
for review. Schering-Plough shall receive a copy of each such report concurrently with receipt by AVEO. Should such inspection lead to the discovery of a discrepancy to AVEO’s detriment, Schering-Plough shall pay within thirty (30) days
after its receipt from the accounting firm of the certificate any undisputed amount of the discrepancy. AVEO shall pay the full cost of the review unless the underpayment of royalties is greater than five percent (5%) of the amount due for the
entire period being examined, in which case Schering-Plough shall pay the reasonable cost charged by such accounting firm for such review. Any overpayment of royalties by Schering-Plough revealed by an examination shall be paid by AVEO within thirty
(30) days. 
  

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 (b) AVEO shall keep complete and accurate records of its reimbursable
expenses and payments required by Sections 7.3 and 7.4. Schering-Plough shall have the right, once annually at its own expense, to have an independent, certified public accounting firm, selected by Schering-Plough and reasonably acceptable to AVEO,
review any such records of AVEO in the location(s) where such records are maintained by AVEO upon reasonable notice (which shall be no less than fourteen (14) days’ prior notice) and during regular business hours and under obligations of
strict confidence, for the sole purpose of verifying the basis and accuracy of its reimbursable expenses and payments received or made under Sections 7.3 and 7.4 within the thirty-six (36) month period preceding the date of the request for
review. AVEO shall receive a copy of each such report concurrently with receipt by Schering-Plough. Should such inspection lead to the discovery of a discrepancy to Schering-Plough’s detriment, AVEO shall pay within thirty (30) days after
its receipt from the accounting firm of the certificate any undisputed amount of the discrepancy. Schering-Plough shall pay the full cost of the review unless the underpayment of royalties is greater than five percent (5%) of the amount due for
the entire period being examined, in which case AVEO shall pay the reasonable cost charged by such accounting firm for such review. Any overpayment of royalties by AVEO revealed by an examination shall be paid by Schering-Plough within thirty
(30) days. 
 7.11. Taxes. AVEO shall pay any and all taxes levied on account of all payments it receives under this
Agreement. If laws or regulations require that taxes be withheld, Schering-Plough will (a) deduct those taxes from the remittable payment, (b) timely pay the taxes to the proper taxing authority, and (c) send proof of payment to AVEO
within thirty (30) days after receipt of confirmation of payment from the relevant taxing authority. Schering-Plough will reasonably cooperate with AVEO to obtain the benefit of any applicable tax law or treaty, including the pursuit of any
refund or credit of such tax to AVEO. 
 7.12. United States Dollars. All dollar ($) amounts specified in this
Agreement are United States dollar amounts. 
 7.13. Payment Method and Currency Conversion. All payments to be made by
Schering-Plough to AVEO shall be in immediately available funds via either a bank wire transfer, an ACH (automated clearing house) mechanism, or any other means of electronic funds transfer, at Schering-Plough’s election, to a bank account
designated by AVEO. For the purposes of determining the amount of any royalties due for the relevant Calendar Quarter under Section 7.6, the amount of Net Sales in any foreign currency shall be converted into United States dollars in a manner
consistent with Schering-Plough’s normal practices used to prepare its audited financial reports; provided that such practices use a widely accepted source of published exchange rates. 
 7.14. Blocked Payments. If by reason of applicable Laws in any country in the Territory, it becomes impossible or illegal for
Schering-Plough or its Affiliates or Sublicensees to transfer, or have transferred on its behalf, milestones, royalties or other payments to AVEO, Schering-Plough shall promptly notify AVEO of the conditions preventing such transfer and such
royalties or other

  

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payments shall be deposited in local currency in the relevant country to the credit of AVEO in a recognized banking institution designated by AVEO or, if none is designated by AVEO within a
period of thirty (30) days, in a recognized banking institution selected by Schering-Plough or its Affiliate or Sublicensee, as the case may be, and identified in a notice given to AVEO. If so deposited in a foreign country, Schering-Plough
shall provide, or cause its Affiliate or Sublicensee to provide, reasonable cooperation to AVEO so as to allow AVEO to assume control over such deposit as promptly as practicable. 
 7.15. Late Payments. If a Party shall fail to make a timely payment pursuant to the terms of this Agreement, interest shall accrue on
the past due amount as follows: 
 (a) for amounts sixty (60) or fewer days past due, the rate applied shall
be the six (6) month London Inter-Bank Offering Rate (“LIBOR”) as of the due date, as quoted by the British Banker’s Association, computed for the actual number of days the payment was past due; and 
 (b) for amounts greater than sixty (60) days past due, the rate applied shall be [**] percent ([**]%) above the rate of
the six (6) month LIBOR as of the due date, computed for the actual number of days the payment was past due. 
 7.16.
Inter-Company Sales. Sales between or among Schering-Plough, its Affiliates and Sublicensees shall not be subject to royalties under Section 7.6; royalties shall only be calculated upon Net Sales to a Third Party that is not a
Sublicensee. Schering-Plough shall be responsible for accounting for and paying milestone payments and royalties on Net Sales by its Affiliates and Sublicensees. 
 ARTICLE VIII. INTELLECTUAL PROPERTY OWNERSHIP, 
 PROTECTION AND
RELATED MATTERS 
 8.1. Ownership of Inventions. 
 (a) Sole Inventions. Each Party shall exclusively own all Inventions made solely by such Party, its employees, agents
and consultants (“Sole Inventions”). Sole Inventions made solely by Schering-Plough, its employees, agents and consultants are referred to herein as “Schering-Plough Sole Inventions”. Sole Inventions made solely by
AVEO, its employees, agents and consultants are referred to herein as “AVEO Sole Inventions”. 
 (b) Joint Inventions. The Parties shall jointly own all Inventions made jointly by employees, agents and consultants of Schering-Plough (and/or its Affiliates), on the one hand, and employees, agents and consultants of AVEO (and/or
its Affiliates), on the other hand (“Joint Inventions”). Patent Rights based on Joint Inventions will be referred to herein as “Joint Patent Rights.” Subject to the licenses and other provisions of this Agreement, each
Party shall have the unrestricted right to use and license Joint Inventions and Joint Patent Rights, without obtaining consent from, or accounting to, the other Party. 
 (c) Inventorship. For purposes of determining whether an Invention is a Schering-Plough Sole Invention, an AVEO Sole
Invention or a Joint Invention, and for purposes of determining inventorship with respect to Joint Patent Rights, questions of inventorship shall be resolved in accordance with United States patent Laws. 
  

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 (d) Assignment of Inventions. 
 (i) AVEO shall require by written agreement that all AVEO personnel, employees and Third Parties hired by AVEO involved in
the Research Program or the Development of Licensed Products have entered into confidentiality and Invention assignment agreements that are consistent with the provisions of this Agreement and shall be obligated to assign to AVEO any rights they may
have in any Inventions first invented, discovered, made, conceived or reduced to practice in the course of conducting activities pursuant to the Research Program and/or the Joint Development Plan. The JSC shall approve the form of the agreements to
be used with such Third Parties prior to the execution of such agreements. 
 (ii) Schering-Plough shall require
by written agreement that all Schering-Plough personnel, employees and Third Parties hired by Schering-Plough involved in the Research Program or the Development of Licensed Products have entered into confidentiality and Invention assignment
agreements that are consistent with the provisions of this Agreement and shall be obligated to assign to Schering any rights they may have in any Inventions first invented, discovered, made, conceived or reduced to practice in the course of
conducting activities pursuant to the Research Program and/or the Joint Development Plan. The JSC shall approve the form of the agreements to be used with such Third Parties prior to the execution of such agreements. 
 (iii) In order to protect the Parties’ patent rights under U.S. law in any inventions Invented in the performance of the
Research Program or in the Development of Licensed Products, each Party agrees to maintain policies or procedures, or a combination thereof, requiring its employees or others acting on behalf of such Party or its Affiliates or licensees to make and
keep records of all data and information produced during the Research Program or the Development of Licensed Products in such a manner as to enable the Parties to use such records to establish the earliest date of invention (an “Invention
Policy”). Such Invention Policy shall, among other things, provide that such individuals are (i) to make and keep such records in standard, bound laboratory notebooks with numbered pages (or electronic equivalents that meet the
requirements of applicable Law) with entries dated and corroborated by an appropriate individual, with such corroboration being done on a regular, contemporaneous basis, and (ii) to complete invention disclosure memorandums or similar documents
with respect to any invention first identified, discovered, conceived, developed, or reduced to practice by them. 
 8.2.
Prosecution and Maintenance of Patent Rights. 
 (a) Prosecution of AVEO Patent Rights Solely Owned by
AVEO. With respect to AVEO Patent Rights that are owned solely by AVEO and exclusively licensed to Schering-Plough, excluding Program Patent Rights and Joint Patent Rights, AVEO and Schering-Plough shall cooperate in connection with the
continued prosecution and maintenance by AVEO of such AVEO Patent Rights. The out-of-pocket costs and expenses incurred to obtain, prosecute and maintain such AVEO Patent Rights shall be borne one hundred percent (100%) by Schering-Plough for those
Patent Rights that Schering-Plough has given AVEO a

  

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written request to file, prosecute and/or maintain. At any time during the Term, Schering-Plough may notify AVEO in writing that it no longer wishes to pursue the filing, prosecution or
maintenance of such a Patent Right in any country and thereafter AVEO may do so at its own expense. AVEO shall notify Schering-Plough at least ninety (90) days prior to the deadline for entering into the national/regional phase with respect to
any PCT application included in such AVEO Patent Rights. No later than sixty (60) days prior to entry into such national/regional phase, Schering-Plough shall provide AVEO with a list of any countries in which Schering-Plough would like AVEO to
file the patent application. AVEO shall file national/regional patent applications, or designate for national/regional filing and file, in all jurisdictions requested by Schering-Plough. Schering-Plough shall have access to all documentation,
filings and communications to or from the respective patent offices, at reasonable times and upon reasonable notice. AVEO shall keep Schering-Plough informed of the status of all pending patent applications that pertain to any Licensed Product.
AVEO, its agents and attorneys shall give due consideration to all timely suggestions and comments of Schering-Plough regarding any aspect of such patent prosecution. AVEO shall not discontinue prosecution or maintenance of any AVEO Patent Rights
without at least ninety (90) days’ prior notice to Schering-Plough. If AVEO decides to discontinue prosecution or maintenance of any AVEO Patent Rights, subject to the terms of the AVEO Third Party Agreements, Schering-Plough shall have
the option to assume responsibility for prosecuting and maintaining such AVEO Patent Rights. 
 (b)
Prosecution of Program Patent Rights and Joint Patent Rights. Schering-Plough shall be responsible for obtaining, prosecuting and/or maintaining patents and patent applications Covering Program Patent Rights exclusively licensed to
Schering-Plough and Joint Patent Rights exclusively licensed to Schering-Plough, in appropriate countries in the Territory, including the countries reasonably requested by AVEO if Schering-Plough routinely files such Patent Rights in such country.
The out-of-pocket costs and expenses incurred to obtain, prosecute and maintain such Patent Rights shall be borne one hundred percent (100%) by Schering-Plough. Schering-Plough shall keep AVEO informed of the status of all pending applications
Covering such Patent Rights. Schering-Plough, its agents and attorneys shall give due consideration to all timely suggestions and comments of AVEO regarding any aspect of such patent prosecution. Schering-Plough shall not discontinue prosecution or
maintenance of any such Patent Right without at least ninety (90) days’ prior notice to AVEO. If Schering-Plough decides to discontinue prosecution or maintenance of any such Patent Rights, AVEO shall have the option to continue to
prosecute and maintain such Patent Rights. 
 (c) Patent Term Extensions. Schering-Plough shall have the
exclusive right and obligation to seek patent term extensions or supplemental patent protection, including supplementary protection certificates, in any country in the Territory in relation to the Licensed Products at Schering-Plough’s expense.
AVEO and Schering-Plough shall cooperate in connection with all such activities, and Schering-Plough, its agents and attorneys will give due consideration to all timely suggestions and comments of AVEO regarding any such activities; provided
that all final decisions shall be made by Schering-Plough. 
  

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 (d) Invoices. Each Party shall promptly invoice the other Party for
any costs and expenses to be paid by a Party pursuant to this Section 8.2. Such invoice shall contain all necessary documentation for the out-of-pocket costs and expenses and shall be sent to the responsible paying Party no later than ninety
(90) days after the invoicing Party receives an invoice for such costs and expenses. Schering-Plough shall not be obliged to pay any such invoices if received after such ninety (90) day period. Reasonably documented and undisputed invoices
shall be paid within thirty (30) days of receipt. 
 8.3. Third Party Infringement. 
 (a) Notice. Each Party shall promptly report in writing to the other Party during the Term any known or suspected
(i) infringement of any of the AVEO Patent Rights exclusively licensed to Schering-Plough, Program Patent Rights exclusively licensed to Schering-Plough or Joint Patent Rights exclusively licensed to Schering-Plough, or (ii) unauthorized
use or misappropriation of any of the AVEO Know-How, Program Know-How, or Know-How in Joint Inventions exclusively licensed to Schering-Plough (an “Infringement Claim”) of which such Party becomes aware, and shall provide the other
Party with all available evidence supporting such known or suspected infringement or unauthorized use. 
 (b)
Initial Right to Enforce. Subject to Section 8.3(c) and the terms of the AVEO Third Party Agreements, Schering-Plough shall have the first right, but not the obligation, to initiate a suit or take other appropriate action that it
believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce the AVEO Intellectual Property (excluding AVEO Background Patent Rights), the Program Patent Rights, or
the Joint Patent Rights that relate to a Licensed Product in the Field in the Territory and that are exclusively licensed to Schering-Plough; provided however that Schering-Plough shall not initiate a lawsuit or take other enforcement
action without first consulting with AVEO. Any suit by Schering-Plough shall be either in the name of AVEO or its Affiliate, the name of Schering-Plough or its Affiliate, or jointly by Schering-Plough, AVEO and their respective Affiliates, as may be
required by the Law of the forum. For this purpose, AVEO shall execute such legal papers and cooperate in the prosecution of such suit as may be reasonably requested by Schering-Plough; provided that Schering-Plough shall promptly
reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by AVEO in connection with such cooperation. 
 (c) Step-In Right. If Schering-Plough does not initiate a suit or take other appropriate action that it has the initial right to initiate or take pursuant to Section 8.3(b), then AVEO may, in
its discretion, provide Schering-Plough with notice of AVEO’s intent to initiate a suit or take other appropriate action. If AVEO provides such notice and Schering-Plough does not initiate a suit or take such other appropriate action within
thirty (30) days after receipt of such notice from AVEO, then AVEO shall have the right to initiate a suit or take other appropriate action that it believes is reasonably required to protect the AVEO Intellectual Property or the Joint Patent
Rights; provided however AVEO shall not initiate a lawsuit or take other enforcement action without first consulting with Schering-Plough. Any suit by AVEO shall be either in the name of AVEO or its Affiliate, the name of
Schering-Plough or its Affiliate, or jointly by Schering-Plough, AVEO and their respective Affiliates, as may be required by the Law of the forum. For this purpose, Schering-Plough shall execute such legal papers and cooperate in the prosecution of
such suit as may be reasonably requested by AVEO; provided that AVEO shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by Schering-Plough in connection with such
cooperation. 
  

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 (d) Conduct of Certain Actions; Costs. The Party initiating suit
shall have the sole and exclusive right to select counsel for any suit initiated by it pursuant to Section 8.3(b) or 8.3(c). The initiating Party shall assume and pay all of its own out-of-pocket costs incurred in connection with any litigation
or proceedings initiated by it pursuant to Sections 8.3(b) and 8.3(c), including the fees and expenses of the counsel selected by it. The other Party shall have the right to participate and be represented in any such suit by its own counsel at its
own expense. 
 (e) Recoveries. In the event Schering-Plough assumes control over enforcing any
Infringement Claim, AVEO shall be entitled to receive [**] percent ([**]%) of any damages (including enhanced (treble) damages), settlements, accounts of profits, or other financial compensation recovered by Schering-Plough from a Third Party based
upon any such Infringement Claim, after deducting Schering-Plough’s actual out-of-pocket expenses (including reasonable counsel fees and expenses) incurred in pursuing such Infringement Claim, and Schering-Plough may retain the balance. In the
event AVEO assumes control over enforcing an Infringement Claim, Schering-Plough shall be entitled to receive [**] percent ([**]%) of any damages, settlements, accounts of profits, or other financial compensation recovered from a Third Party based
upon any such Infringement Claim after deducting AVEO’s actual out-of-pocket expenses (including reasonable counsel fees and expenses) incurred in pursuing such Infringement Claim, and AVEO may retain the balance. 
 8.4. Patent Invalidity Claim. Each of the Parties shall promptly notify the other in the event of any legal or administrative action
by any Third Party against a Program Patent Right exclusively licensed to Schering-Plough, Joint Patent Right exclusively licensed to Schering-Plough or AVEO Patent Right exclusively licensed to Schering-Plough of which it becomes aware, including
any opposition, nullity, revocation, reexamination or compulsory license proceeding. 
 (a) In the case of the
Joint Patent Rights exclusively licensed to Schering-Plough or Program Patent Rights exclusively licensed to Schering-Plough, Schering-Plough shall have the first right, but not the obligation, to defend against any such action and the costs of any
such defense shall be at Schering-Plough’s expense. Each Party at the request of the other Party, agrees to cooperate reasonably with the other Party; provided that Schering-Plough shall promptly reimburse all out-of-pocket
expenses (including reasonable counsel fees and expenses) actually incurred by AVEO in connection with such cooperation. If Schering-Plough does not defend against any such action involving such Patent Right, then AVEO shall have the right, but not
the obligation, to defend such action and any such defense shall be at AVEO’s expense. If required by Law, Schering-Plough, upon request of AVEO, agrees to join in any such action and to cooperate reasonably with AVEO; provided
that AVEO shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by Schering-Plough in connection with such cooperation. 
  

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 (b) In the case of AVEO Patent Rights solely owned by or exclusively
licensed to AVEO that are exclusively licensed to Schering-Plough, AVEO shall have the first right, but not the obligation, to defend against any such action and the costs of any such defense shall be at AVEO’s expense. Each Party at the
request of the other Party, agrees to cooperate reasonably with the other Party; provided that AVEO shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by
Schering-Plough in connection with such cooperation. If AVEO does not defend against any such action involving such AVEO Patent Right, then Schering-Plough shall have the right, but not the obligation, to defend such action and any such defense
shall be at Schering-Plough’s expense. AVEO, upon request of Schering-Plough, agrees to join in any such action and to cooperate reasonably with Schering-Plough; provided that Schering-Plough shall promptly reimburse all
out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by AVEO in connection with such cooperation. 
 8.5. Patent Marking. Schering-Plough shall comply with the patent marking statutes in each country in which the Licensed Product or Other Licensed Product is sold by Schering-Plough, its Affiliates and/or its Sublicensees.

 8.6. Notice of Certification under Drug Price Competition and Patent Restoration Act. If a Party becomes aware of any
certification filed pursuant to 21 U.S.C. § 355(b)(2)(A) or 355(j)(2)(A)(vii)(IV), or any notice under any future analogous provisions of United States Law relating to regulation or approval of biological products (or any amendment or successor
statute thereto) claiming that any AVEO Patent Rights Covering a Licensed Product in the Field, are invalid, or that infringement will not arise from the manufacture, use, import or sale of a product by a Third Party (a “Paragraph IV
Certification”), such Party shall promptly notify the other Party in writing within five (5) Business Days after its receipt thereof. 
 8.7. Control of Response. Schering-Plough shall have the right, but not the obligation, to initiate patent infringement litigation in response to such Paragraph IV Certification, at its own
expense. If Schering-Plough elects not to initiate or maintain such litigation, Schering-Plough shall notify AVEO as soon as practicable but in any event not later than fifteen (15) days before the first action required to defend against such
Paragraph IV Certification so that AVEO may, initiate or assume sole control over such litigation using counsel of its own choice. The Parties shall reasonably cooperate in such litigation and shall share any recoveries in accordance with
Section 8.3(e). 
 ARTICLE IX. CONFIDENTIAL INFORMATION 
 9.1. Treatment of Confidential Information. During the Term and for five (5) years thereafter, each Party shall maintain
Confidential Information of the other Party in confidence, and shall not disclose, divulge or otherwise communicate such Confidential Information to others (except for agents, directors, officers, employees, consultants, subcontractors, licensees,
partners, Affiliates and advisors (collectively, “Agents”) under obligations of confidentiality) or use it for any purpose other than in connection with the conduct of the Research Program, or the Development, Manufacture or
Commercialization of Licensed Products pursuant to this Agreement, and each Party shall exercise reasonable efforts to prevent and restrain the unauthorized disclosure of such Confidential Information by any of its Agents, which reasonable efforts
shall be at least as diligent as those generally used by such Party in

  

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protecting its own confidential and proprietary information. Each Party will be responsible for a breach of this Article IX by its Agents. For clarity, each Party may disclose Confidential
Information of the other Party (a) to Regulatory Authorities (i) to the extent desirable to obtain or maintain INDs or Regulatory Approvals for any Licensed Product within the Territory and (ii) in order to respond to inquiries,
requests or investigations by Regulatory Authorities; (b) to outside consultants, scientific advisory boards, managed care organizations, and non-clinical and clinical investigators to the extent necessary to Develop or Commercialize any
Licensed Product (provided that such Party shall obtain the same confidentiality obligations from such Third Parties as it obtains with respect to its own similar types of confidential information); and (c) to the extent desirable to obtain
Patent Rights to protect, or to Develop or Commercialize, any Licensed Product. 
 9.2. Publication Rights. Each Party
agrees that it shall not, and shall cause its Affiliates and its and their Affiliates’ employees, consultants, contractors, licensees and agents not to, publish or publicly present any results of any preclinical or clinical studies with respect
to any Licensed Product without the prior consent of the other Party (which shall not be unreasonably withheld), except as may be required by applicable Law, legal proceedings or for patent filings. Each Party acknowledges that the other Party has
an interest in the publication of studies related to Licensed Products conducted by itself and its collaborators, and agrees that the JSC will be responsible for determining which publications of this nature can occur without prejudice to the
interests of the other Party. Subject to the foregoing, each Party shall provide to the other Party the opportunity to review any proposed abstracts, manuscripts or summaries of presentations that disclose any Confidential Information or results of
preclinical or clinical studies with respect to any Licensed Product at least forty-five (45) days prior to the submission of such proposed abstract, manuscript or summary for publication or presentation. The reviewing Party shall have the
right: to propose modifications to the proposed disclosure; to prohibit or delay the proposed disclosure for patent reasons, trade secret reasons or business reasons; or to request a reasonable delay in publication or presentation in order to
protect patentable information. If the reviewing Party requests a delay, the publishing Party shall delay submission or presentation for a period of up to ninety (90) days to enable patent applications protecting each Party’s rights in
such information to be filed. If the reviewing Party requests modifications to the proposed disclosure, the publishing Party shall edit the proposed disclosure pursuant to the reviewing Party’s request prior to its submission. If the reviewing
Party prohibits publication, the publishing Party shall not publish the public presentation during the Term of this Agreement. With respect to any proposed abstracts, manuscripts or summaries for publication or presentation by investigators or other
Third Parties, such materials shall be subject to review in accordance with the terms and conditions of the clinical trial agreement entered into by a Party with such Third Party; provided that such clinical trial agreement has been
approved in writing in advance by the JSC in accordance with Section 8.1(d)(i) & (ii). 
 9.3. Public
Disclosure. 
 (a) The terms and conditions of this Agreement are Confidential Information hereunder and,
except as expressly set forth herein, the Parties shall not disclose any terms or conditions of this Agreement to any Third Party without first obtaining the written approval of the other Party prior to such disclosure. Additionally, the Parties
shall not use any name or trademark of the other Party in any publicity without the prior written approval of the other Party. After the Execution Date, AVEO may issue one or more press releases, subject to the prior approval of Schering-Plough,
such approval not to be unreasonably withheld, delayed or conditioned. 
  

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 (b) Neither Party shall issue any additional press release or make any other
public disclosure concerning this Agreement or the subject matter hereof without first following the approval procedure of this Section 9.3(b). The disclosing Party shall provide the other Party with a copy of the proposed release or public
disclosure for review and comment as soon as reasonably practicable prior to the proposed disclosure date; provided that such right of review and comment shall only apply for the first time that specific information is to be disclosed,
and shall not apply to the subsequent disclosure of the same specific information that has previously been approved for disclosure. The Party proposing to make the press release or other public disclosure shall give due consideration to any
reasonable comments by the other Party relating to such proposed press release or other public disclosure. The principles to be observed by Schering-Plough and AVEO in press releases or other public disclosures with respect to this Agreement shall
be: accuracy, compliance with applicable legal requirements and the requirements of confidentiality under Article IX. For the avoidance of doubt, either Party may issue such press releases as it determines, based on the reasonable advice of counsel,
are reasonably necessary to comply with Law. It is understood, however, that except as provided in Section 9.3(c), or unless required by Law in the reasonable opinion of counsel, the Parties shall not disclose the specific financial terms and
conditions of this Agreement, any plans, projections or forecasts for clinical trials, regulatory approval, marketing or Commercialization of Licensed Product or other non-factual or speculative information in any press release or other public
disclosure. In addition, if a public disclosure is required by Law in the reasonable opinion of counsel, including without limitation in a filing with the United States Securities and Exchange Commission, the disclosing Party shall provide copies of
the proposed disclosure in advance (as set forth herein) of such filing or other disclosure for the non-disclosing Party’s prior review and comment and shall give due consideration to any reasonable comments by the non-filing Party relating to
such filing, including without limitation the provisions of this Agreement for which confidential treatment should be sought. In the event a Party believes that it is required by Law to make a disclosure under this Section 9.3(b) and the
non-disclosing Party disagrees with such conclusion, the Parties shall, through their attorneys, discuss and seek to resolve such disagreement. 
 (c) Notwithstanding any other provisions to the contrary in this Article IX, each Party shall be entitled to disclose the terms (including the financial terms) of this Agreement to a Party’s or its
Affiliates’ accountants and attorneys on the condition that such entities or persons agree to keep such terms confidential for the same time periods and to the same extent as such Party is required to keep such terms confidential. Subject to
the prior written approval of Schering-Plough, not to be unreasonably withheld, AVEO may disclose the terms of this Agreement to its other professional financial advisors and any existing or potential bona fide acquirers, investors or lenders on the
condition that such entities or persons agree to keep such terms confidential for the same time periods and to the same extent as AVEO is required to keep such terms confidential. For the sake of clarity, Schering-Plough may only withhold such
approval if there is a good faith disagreement between the Parties over whether a Third Party to whom AVEO is proposing to make the disclosure satisfies the requirements of this Section 9.3(c). 
  

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 ARTICLE X. REPRESENTATIONS, 
 WARRANTIES AND COVENANTS 
 10.1. AVEO’s Representations. AVEO hereby represents and warrants as of the Execution Date as follows: 
 (a) AVEO has the corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder. The execution, delivery and performance of this Agreement has been duly and validly authorized and approved by proper corporate action on the part of AVEO. AVEO has taken all other action required by Law, its certificate of incorporation
or by-laws or any agreement to which it is a party or by which it or its assets are bound, to authorize such execution, delivery and (subject to obtaining all necessary governmental approvals with respect to the continued Development of Licensed
Products and subject to obtaining any necessary HSR Clearance) performance. Assuming due authorization, execution and delivery on the part of Schering-Plough, this Agreement constitutes a legal, valid and binding obligation of AVEO, enforceable
against AVEO in accordance with its terms. 
 (b) The execution and delivery of this Agreement by AVEO and the
performance by AVEO contemplated hereunder will not violate (subject to obtaining all necessary governmental approvals with respect to AVEO’s obligations under the Research Program and the Development Program and subject to obtaining any
necessary HSR Clearance) any United States Law or, to AVEO’s knowledge, any Law of any Regulatory Authority outside the United States. 
 (c) Neither the execution and delivery of this Agreement nor the performance hereof by AVEO requires AVEO to obtain any permit, authorization or consent from any Regulatory Authority (subject to obtaining
all necessary governmental approvals with respect to the continued Development of Licensed Products and subject to obtaining any necessary HSR Clearance) or from any other Person, and such execution, delivery and performance by AVEO will not result
in the breach of or give rise to any termination of, rescission, renegotiation or acceleration under or trigger any other rights under any agreement or contract to which AVEO may be a party that relates to the AVEO Patent Rights or the AVEO
Know-How, except any that would not, individually or in the aggregate, reasonably be expected to adversely affect Schering-Plough’s rights under this Agreement or the ability of AVEO to perform its obligations under this Agreement. 

(d) Except with respect to patents and patent applications subject to the AVEO Third Party Agreements, AVEO is the legal
and beneficial owner of all the AVEO Patent Rights identified on Exhibit B. Except as set forth in the [**], no other Person has any right, interest or claim in or to, and neither AVEO nor any of its Affiliates has entered into any
agreement granting any right, interest or claim in or to, the AVEO Patent Rights or AVEO Know-How, including any lien, encumbrance, charge, security interest, mortgage or other similar restriction; provided, however, that AVEO makes no
representation or warranty as to whether any Third Party has independently developed rights to scientific or technical information or related know-how or trade secrets. To AVEO’s knowledge, all assignments to AVEO of ownership rights relating
to the AVEO Patent Rights owned by AVEO are valid and enforceable. 
  

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 (e) Exhibit B is a complete and correct list of all AVEO Patent
Rights in the Territory owned by or licensed to AVEO (and indicating which are owned and which are licensed) as of the Execution Date. 
 (f) AVEO has previously delivered to Schering-Plough copies of the AVEO Third Party Agreements and that those agreements are the only material agreements AVEO has with Third Parties regarding the
discovery, humanization, supply and/or Manufacture of AVEO Molecules, none of which have been modified, supplemented or amended prior to the Execution Date. 
 (g) AVEO shall conduct, and shall use reasonable efforts to cause its contractors and consultants to conduct, all of its
activities contemplated under this Agreement in accordance with all applicable Laws of the country in which such activities are conducted. 
 10.2. Schering-Plough’s Representations. Schering-Plough hereby represents and warrants as of the Execution Date as follows: 
 (a) Schering-Plough has the corporate power and authority to execute and deliver this Agreement and to perform its
obligations hereunder. The execution, delivery and performance of this Agreement has been duly and validly authorized and approved by proper corporate action on the part of Schering-Plough. Schering-Plough has taken all other action required by Law,
its certificate of incorporation or by-laws or any agreement to which it is a party or by which it or its assets are bound to authorize such execution, delivery and (subject to obtaining all necessary governmental approvals with respect to the
Development, Manufacture and Commercialization of Licensed Products and subject to obtaining any necessary HSR Clearance) performance. Assuming due authorization, execution and delivery on the part of AVEO, this Agreement constitutes a legal, valid
and binding obligation of Schering-Plough, enforceable against Schering-Plough in accordance with its terms. 
 (b) The execution and delivery of this Agreement by Schering-Plough and the performance by Schering-Plough contemplated hereunder will not violate (subject to obtaining all necessary governmental approvals with respect to the continued
Development, Manufacture and Commercialization of Licensed Products and subject to obtaining any necessary HSR Clearance) any United States Law or, to Schering-Plough’s knowledge, any Law of any Regulatory Authority outside the United States.

 (c) Neither the execution and delivery of this Agreement nor the performance hereof by Schering-Plough
requires Schering-Plough to obtain any permit, authorization or consent from any Regulatory Authority (subject to obtaining all necessary governmental approvals with respect to the continued Development, Manufacture and Commercialization of Licensed
Products and subject to obtaining any necessary HSR Clearance) or from any other Person, and such execution, delivery and performance by Schering-Plough will not result in the breach of or give rise to any termination of, rescission, renegotiation
or acceleration under or trigger any other rights under any agreement or contract to which Schering-Plough may be a party that relates to the Licensed Products, Schering-Plough Patent Rights or Schering-Plough Know-How, except any that would not,
individually or in the aggregate, reasonably be expected to adversely affect AVEO’s rights under this Agreement or the ability of Schering-Plough to perform its obligations under this Agreement. 
  

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 10.3. AVEO Covenant. For so long as Schering-Plough is fulfilling its obligations
under Sections 4.1(f)(i) and 7.6(d) with respect to the [**], AVEO shall use Commercially Reasonable Efforts to maintain the [**] in good standing, and to not take any action (or omit or fail to take any action) that would result in a termination of
the [**]. AVEO shall not amend, modify or supplement the [**] in any manner without the prior written consent of Schering-Plough, such consent not to be unreasonably withheld, delayed or conditioned. AVEO shall promptly notify Schering-Plough upon
receipt by AVEO of any notice from [**] of any actual or alleged breach of the [**]. 
 10.4. Schering-Plough Covenants.
Schering-Plough shall conduct, and shall use reasonable efforts to cause its contractors and consultants to conduct, all of its activities contemplated under this Agreement in accordance with all applicable Laws of the country in which such
activities are conducted. 
 10.5. No Debarment. Neither Party nor any of its Affiliates has been debarred or is subject
to debarment and neither Party nor any of its Affiliates will use in any capacity, in connection with the Research, Development, Manufacture or Commercialization of any Licensed Product, Diagnostic Licensed Product or Veterinary Licensed Product any
Person who has been debarred pursuant to Section 306 of the United States Federal Food, Drug, and Cosmetic Act, or who is the subject of a conviction described in such section. Each Party agrees to inform the other Party in writing immediately
if it or any Person who is performing services hereunder is debarred or is the subject of a conviction described in Section 306, or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to the best of
such Party’s knowledge, is threatened, relating to the debarment or conviction of such Party or any Person used in any capacity by such Party or any of its Affiliates in connection with the Development, Manufacture or Commercialization of any
Licensed Product, Diagnostic Licensed Product or Veterinary Licensed Product. 
 10.6. Material Transfer. In order to
facilitate the Research Program and Joint Development Plans, either Party may provide to the other Party certain biological materials or chemical compounds including, but not limited to AVEO Molecules, receptors, assays, reagents and screens
(collectively, “Materials”) owned by or licensed to the supplying Party (other than under this Agreement) for use by the other Party in furtherance of the Research Program and/or the Joint Development Plans. Except as otherwise
provided under this Agreement, all such Materials delivered to the other Party shall, subject to the licenses granted the other Party pursuant to Article 6, remain the sole property of the supplying Party, shall be used only in furtherance of the
Research Program and/or the Joint Development Plans, as applicable, and solely under the control of the other Party and/or its Affiliates, shall not be used or delivered to or for the benefit of any Third Party without the prior written consent of
the supplying Party, and shall not (without the prior written consent of the supplying Party) be used in research or testing involving human subjects. The Materials supplied under this Section 10.6 must be used with prudence and appropriate
caution in any experimental work, since not all of their characteristics

  

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may be known. Each Party represents and warrants to the other that it has the right to provide the Materials to the other Party for the uses contemplated herein. EXCEPT AS EXPRESSLY SET FORTH IN
THIS ARTICLE X, THE MATERIALS ARE PROVIDED “AS IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR ANY
WARRANTY THAT THE USE OF THE MATERIALS WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY. 
 10.7. No Warranty. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY HERETO MAKES ANY REPRESENTATION AND EXTENDS NO WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. IN PARTICULAR, BUT WITHOUT LIMITATION, AVEO
MAKES NO REPRESENTATION AND EXTENDS NO WARRANTY CONCERNING WHETHER AVEO MOLECULES ARE FIT FOR ANY PARTICULAR PURPOSE OR SAFE FOR HUMAN CONSUMPTION. 
 ARTICLE XI. INDEMNIFICATION 
 11.1. Indemnification in Favor of
AVEO. Schering-Plough shall indemnify, defend and hold harmless the AVEO Parties (as hereinafter defined) from and against any and all Losses incurred, suffered, or sustained by any of the AVEO Parties arising out of, relating to or resulting
from : 
 (a) any misrepresentation or breach of any representation, warranty, covenant or agreement made by
Schering-Plough in this Agreement; or 
 (b) any violation of the FD&C Act or any similar foreign Law by
Schering-Plough in connection with its performance under this Agreement; or 
 (c) any Third Party claim, action,
suit, proceeding, liability or obligation (collectively, “Third Party Claims”) arising out of, relating to or resulting from: 
 (i) any misrepresentation or breach of any representation, warranty, covenant or agreement made by Schering-Plough in this Agreement; or 
 (ii) subject to Section 11.2(b)(ii), the Development, Manufacture, use or Commercialization of a Licensed Product by
Schering-Plough, its Affiliates or Sublicensees, including all Third Party Claims involving death or bodily injury caused or allegedly caused by the use of a Licensed Product, and even if a Licensed Product is altered for use for a purpose not
intended (any and all such Losses “Licensed Product Liability”); or 
 (iii) the negligence or
willful misconduct of any of the Schering-Plough Parties (as hereinafter defined) in connection with Schering-Plough’s performance under this Agreement. 
  

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 For purposes of this Article XI, “AVEO Parties” means AVEO, its Affiliates
and their respective licensors, agents, directors, officers, employees and shareholders. 
 The indemnification obligations set
forth in this Section 11.1 shall not apply to the extent that any Loss is the result of a breach of this Agreement by AVEO or, with respect to any indemnitee, the negligence or willful misconduct of such indemnitee. 
 11.2. Indemnification in Favor of Schering-Plough. AVEO shall indemnify, defend and hold harmless the Schering-Plough Parties from
and against any and all Losses incurred, suffered or sustained by any of the Schering-Plough Parties or to which any of the Schering-Plough Parties becomes subject, arising out of, relating to or resulting from: 
 (a) any misrepresentation or breach of any representation, warranty, covenant or agreement made by AVEO in this Agreement; or

 (b) any Third Party Claim arising out of, relating to or resulting from: 
 (i) any misrepresentation or breach of any representation, warranty, covenant or agreement made by AVEO in this Agreement; or

 (ii) any violation of the FD&C Act or any similar foreign Law by AVEO in connection with its performance
under this Agreement; or 
 (iii) in the event AVEO elects its Co-Promotion Option, the Commercialization of a
Licensed Product by AVEO, its Affiliates or Sublicensees, including Third Party Claims involving death or bodily injury caused or allegedly caused by the use of a Licensed Product, and even if a Licensed Product is altered for use for a purpose not
intended (any and all such Losses “Licensed Product Liability”); or 
 (iv) the failure of AVEO
to comply with applicable Law in the Development activities performed pursuant to this Agreement; or 
 (v) the
negligence or willful misconduct of any of the AVEO Parties in connection with AVEO’s performance of its obligations under this Agreement. 
 For purposes of this Article XI, “Schering-Plough Parties” means Schering-Plough, its Affiliates and their respective agents, directors, officers, employees and shareholders. 

The indemnification obligations set forth in this Section 11.2 shall not apply to the extent that any Loss is the result of a breach
of this Agreement by Schering-Plough or, with respect to any indemnitee, the negligence or willful misconduct of such indemnitee. 
  

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 11.3. General Indemnification Procedures. 
 (a) If a Party or any of its Affiliates or their respective employees or agents (collectively, the
“Indemnitee”) intends to claim indemnification under Section 11.2 or 11.3, the Indemnitee shall promptly notify the other Party (the “Indemnitor”) of any loss, claim, damage, liability or action in respect of
which the Indemnitee intends to claim such indemnification, and the Indemnitor shall assume the defense thereof with counsel selected by the Indemnitor and reasonably acceptable to the Indemnitee; provided, however, that an Indemnitee
shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitee, if representation of such Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to actual or potential differing
interests between such Indemnitee and any other Party represented by such counsel in such proceedings. The Indemnitor shall have the right to settle or compromise any claims for which it is providing indemnification under this Section 11.3;
provided that the consent of the Indemnitee (which shall not be unreasonably withheld or delayed) shall be required in the event any such settlement or compromise would adversely affect the interests of the Indemnitee. The indemnity
agreement in this Section 11.3 shall not apply to amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is effected without the consent of the Indemnitor. The failure to deliver notice to the Indemnitor
within a reasonable time after the commencement of any such action, if prejudicial to the Indemnitor’s ability to defend such action, shall relieve such Indemnitor of any liability to the Indemnitee under this Section 11.3 resulting from
such failure, but the omission so to deliver notice to the Indemnitor will not relieve it of any liability that it may have to any Indemnitee otherwise than under this Section 11.3. The Indemnitee under this Section 11.3, its employees and
agents, shall cooperate fully with the Indemnitor and its legal representatives in the investigation of any action, claim or liability covered by this indemnification. 
 11.4. Insurance. Each Party shall maintain appropriate product liability insurance (and/or self-insurance) with respect to its Research, Development, Manufacture and Commercialization activities
hereunder in such amount as such Party customarily maintains with respect to its other products. Each Party shall maintain such insurance for so long as it continues to conduct such activities hereunder, and thereafter for so long as such Party
customarily maintains insurance with respect to sales of its other products. 
 11.5. Exclusive Remedy. The Parties agree
and acknowledge that the provisions of this Article XI represent the Indemnified Party’s exclusive recourse with respect to any Losses for which indemnification is provided to the Indemnified Party under this Article XI. 
 ARTICLE XII. TERM AND TERMINATION 
 12.1. Term. The term of this Agreement (the “Term”) shall, unless earlier terminated as provided in this Article XII, shall continue in full force and effect, on a
country-by-country and Licensed Product-by-Licensed Product basis until there is no remaining royalty obligation in such country with respect to such Licensed Product, at which time this Agreement shall expire in its entirety with respect to such
Licensed Product in such country. The Term shall expire on the date the Agreement has expired with respect to all Licensed Products in all countries in the Territory. 
 12.2. Termination Due to Passage of Time. Either Party may terminate this Agreement effective upon notice to the other Party if the HSR Clearance Date shall not have occurred on or prior to the
date one hundred and twenty (120) days after the Parties make their respective HSR Filings pursuant to Section 14.1. If this Agreement is terminated pursuant to this Section 12.2, then this Agreement, including Section 12.10 of
this Agreement, shall terminate; provided, however, that the Confidentiality Agreement and the AVEO/SP Material Transfer Agreement shall remain in full force and effect notwithstanding any termination of this Agreement pursuant to this
Section 12.2. 
  

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 12.3. Schering-Plough Termination at Will. Schering-Plough shall have the right to
terminate this Agreement upon ninety (90) days written notice to AVEO. 
 12.4. Termination for Cause. In the event
of a Material Breach of this Agreement by a Party, the other Party may give the Party in default written notice requiring it to cure such default. “Material Breach” shall mean a failure by a Party to perform one or more of its
obligations under this Agreement that, if not cured within the applicable cure period, is likely to cause material harm to the other Party. Without limiting the generality of the foregoing, such material harm shall be deemed to have occurred if the
breach causes or is likely to cause a material adverse effect on the global commercial value of a Licensed Product and to materially impair the ability of the non-breaching Party to realize the reasonably anticipated benefits of the global
commercialization of a Licensed Product. If such Material Breach is not cured within [**] days after receipt of such notice (or within [**] days in the case of a payment breach), the notifying Party shall be entitled (without prejudice to any of its
other rights conferred on it by this Agreement or under applicable Law) to terminate this Agreement (or such rights and obligations as are set forth in Section 12.8(b)) by giving written notice to the defaulting Party, with such termination to
take effect immediately. Notwithstanding the foregoing, if the Material Breach relates only to a specific Licensed Product in a specific country or group of countries then any termination pursuant to this Section 12.4 shall apply only to the
affected Licensed Product or countries. Termination of this Agreement pursuant to this Section 12.4 shall automatically be stayed pending the outcome of any dispute resolution proceedings initiated pursuant to Article XIII that relate to the
subject matter of such termination. The right of either Party to terminate this Agreement as set forth in this Section 12.4 shall not be affected in any way by its waiver of, or failure to take action with respect to, any previous default. If
AVEO terminates this Agreement under this Section 12.4, then the consequences set forth in Section 12.6 shall apply for each affected Licensed Product and in each affected country. If Schering-Plough terminates this Agreement under this
Section 12.4, then the consequences set forth in Section 12.8 shall apply. 
 12.5. Termination for Insolvency.
This Agreement (or such rights and obligations as are set forth in Section 12.8(b)) may be terminated by a Party upon written notice to the other Party if (a) the other Party shall make an assignment for the benefit of its creditors, file
a petition in bankruptcy, petition or apply to any tribunal for the appointment of a custodian, receiver or trustee for it or a substantial part of its assets, or shall commence any proceeding under any bankruptcy, reorganization, readjustment of
debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or (b) if there shall have been filed against the other Party any such bona fide petition or application, or any such proceeding shall have
been commenced against it, in which an order for relief is entered or that remains undismissed or unstayed for a period of ninety (90) days or more; or (c) if the other Party by any act or omission shall indicate its consent to, approval
of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian, receiver or trustee for it or any substantial part of its assets, or shall suffer any such custodianship, receivership or
trusteeship to continue undischarged or unstayed for a period of ninety (90) days or more; or

  

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(d) anything analogous to any of the foregoing occurs in any applicable jurisdiction. Termination shall be effective upon the date specified in such notice. If AVEO terminates this Agreement
under this Section 12.5, then the provisions of Section 12.6 shall apply. If Schering-Plough terminates this Agreement under this Section 12.5, then the provisions of Section 12.8(b) shall apply. 
 12.6. Consequences of Certain Terminations by the Parties. If this Agreement is terminated by Schering-Plough under Section 12.3
or in its entirety by AVEO under Section 12.4 or 12.5, then the licenses granted to Schering-Plough in Section 6.1 shall terminate, and Schering-Plough shall grant AVEO any combination of the following, as elected by AVEO, that are
controlled by Schering-Plough as of the effective date of termination: 
 (a) Regulatory Matters.
Ownership of all regulatory filings and Regulatory Approvals for the Licensed Products, including correspondence with Regulatory Authorities regarding the Licensed Products, and provide copies thereof; 
 (b) Pre-clinical and Clinical Matters. Ownership of that pre-clinical and clinical data, including pharmacology and
biology data, in Schering-Plough’s possession or control that is necessary for the Development, Manufacture, or Commercialization of the Licensed Products existing as of the effective date of termination; 
 (c) Manufacturing Matters. At AVEO’s option, to be exercised no later than the later of [**] days after the
effective date of termination or [**] days after AVEO’s receipt of the applicable manufacturing agreements referenced below (subject to any applicable confidentiality restrictions), Schering-Plough shall be responsible for: 
 (i) assignment to AVEO of each manufacturing agreement specific to Licensed Products, if such agreement is then in effect and
such assignment is permitted under such agreement or by the applicable Third Party; provided that Schering-Plough shall have no obligation to pay any compensation to the Third Party to effectuate such agreement; AVEO shall assume all
of Schering-Plough’s rights and obligations under such agreement, including paying any and all royalties, fees and other consideration due such Third Party under such agreement; Schering-Plough shall be released, to the extent the applicable
Third Party will permit such release, from any obligation arising out of such manufacturing agreement following such assignment; and AVEO shall execute such documentation reasonably satisfactory to Schering-Plough to effectuate such agreement;

 (ii) reasonable cooperation with AVEO to transfer copies of those manufacturing documents and materials, at
AVEO’s cost and expense, that are used (at the time of the termination) by Schering-Plough in the Manufacture of Licensed Products to the extent such manufacturing documents and materials are not obtained by AVEO pursuant to
Section 12.6(c)(i); 
  

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 (iii) for a period of up to [**] months following the effective date of
termination, reasonably cooperate with AVEO to transfer Manufacturing technologies which are used (at the time of the termination) and Controlled by Schering-Plough in the Manufacture of Licensed Products, provided that AVEO shall
reimburse Schering-Plough for Schering-Plough’s reasonable FTE costs and out-of-pocket expenses necessary to provide such requested assistance, to the extent such Manufacturing technologies are not obtained by AVEO pursuant to the assignment of
agreements pursuant to Section 12.6(c)(i); 
 (iv) sale of Schering-Plough’s then existing inventory of
Licensed Products to AVEO, at Schering-Plough’s standard costs of goods sold for such Licensed Product, plus a markup of [**] percent ([**]%); and 
 (v) if, as of the effective date of termination, Schering-Plough or an Affiliate is engaged in the Manufacture of Licensed Product that is in clinical Development or is being Commercialized, then
Schering-Plough or its Affiliate shall use Commercially Reasonable Efforts to Manufacture and supply AVEO’s requirements for the Licensed Product until the earlier of (a) such time as AVEO can secure an alternative Manufacturing source
reasonably satisfactory to AVEO, or (b) [**] months from the effective date of such termination. All Licensed Product supplied to AVEO by Schering-Plough under this Section shall be supplied at a price equal to Schering-Plough’s standard
costs of goods sold for such Licensed Product, plus a markup of [**] percent ([**]%). 
 (d) License
Grant. At AVEO’s option, to be exercised no later than [**] days after the effective date of termination, Schering-Plough shall grant AVEO an exclusive, worldwide license, with the right to grant sublicenses, under any Schering-Plough
Intellectual Property existing as of the effective date of termination that relates to any Licensed Product in Development or being Commercialized under this Agreement, solely to make, have made, use, sell, offer for sale and import such Licensed
Product in the Field in the Territory, provided that such license is only for the specific Licensed Product that is in clinical Development or is being Manufactured or Commercialized by Schering-Plough or its Affiliates as of the effective date of
termination. 
 (e) License of Trademark. Schering-Plough shall grant to AVEO an exclusive, worldwide
license to any trademark used solely in connection with the applicable Licensed Products as of the effective date of termination; provided that (i) Schering-Plough shall not be obliged to license any trademarks, trade names or
trade dress that include the word “Schering” or the name of any other Schering-Plough Affiliate, or any other words or marks used in connection with other drug products sold by Schering-Plough or its Affiliates; (ii) any good faith
failure by Schering-Plough to provide immaterial data, information, reports, records, correspondence or other materials to AVEO shall not be a breach of Schering-Plough’s obligations under this Section 12.6(e); and (iii) in no event
shall Schering-Plough be required to retain any obligations or liabilities under agreements assigned to AVEO pursuant to this Section 12.6(e) except for those arising prior to the date of assignment of such agreements and those from which the
applicable Third Party will not release Schering-Plough. 
 (f) Assignment of Certain Agreements. At
AVEO’s option, within [**] days of the effective date of termination, Schering-Plough shall assign to AVEO, and AVEO shall assume, all of Schering-Plough’s rights and obligations under the AVEO Third Party Agreements assigned to
Schering-Plough pursuant to Section 4.7(b). Each of AVEO and Schering-Plough hereby agree to execute all documents and reasonably cooperate with each other in order to effectuate the foregoing. 
  

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 (g) In partial consideration for the licenses granted to AVEO pursuant to
Section 12.6(c), (d) and (e), AVEO shall pay to Schering-Plough, on a country-by-country basis, royalties on the Net Sales of any Licensed Product sold by AVEO, its Affiliates or sublicensees. The applicable royalty rate shall be based on
the stage of Development of the Licensed Product as of the effective date of termination and shall be determined as follows: 
 (i) if the effective date of termination is prior to initiation of the first Pivotal Trial for a Licensed Product, no royalty shall be due; 
 (ii) if the effective date of termination is after initiation of the first Pivotal Trial for a Licensed Product, but before
Regulatory Approval for a Licensed Product, the royalty rate shall be [**] percent ([**]%) of what Schering-Plough would have had to pay AVEO under Section 7.6(a) if it was selling the Licensed Product; and 
 (iii) if the effective date of termination is after Regulatory Approval for a Licensed Product, the royalty rate shall be the
full royalty rate set forth in Section 7.6(a); 
 provided, however, in the event this Agreement is terminated by AVEO pursuant to
Section 12.4, the royalties payable by AVEO pursuant to this Section 12.6(g) (ii) and (iii) shall be at a rate which is [**] percent ([**]%) of the rate that would otherwise be applicable under this Section. Any royalties payable
pursuant to this Section shall be payable for a period from the First Commercial Sale of the Licensed Product by AVEO, its Affiliates or sublicenses in the applicable country until the later of (x) expiration of the last to expire Valid Claim
of an AVEO Patent Right, a Joint Patent Right or a Schering-Plough Patent Right Covering such Licensed Product or (y) the expiration of any marketing exclusivity for such Licensed Product in such country. The provisions of Sections 7.6 and
7.10(b) shall apply to the payment of royalties under this Section. 
 (h) In the event a termination by AVEO
under Section 12.4 is only for a specific country or group of countries, the provisions of this Section 12.6 shall be modified as follows: 
 (i) the provisions of Section 12.6(c) concerning manufacturing shall not be applicable; 
 (ii) AVEO shall obtain only that data, licenses and other rights reasonably necessary for the Commercialization of Licensed Product in such country or group of countries; 
 (iii) Schering-Plough shall supply AVEO’s requirements f or the sale of Licensed Product in such country or group of
countries at its standard costs of goods sold plus [**] percent ([**]%) under the terms and conditions of a supply agreement to be negotiated in good faith by the Parties; and 
  

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 (iv) the Parties shall work together to fulfill all requirements under
applicable Laws for the Commercialization of Licensed Product, such as adverse event reporting. 
 12.7. Payment of Balance
of Quarterly Research Fees. 
 (a) If AVEO terminates this Agreement during the Research Program Term
pursuant to Section 12.4 or 12.5, then AVEO shall retain all Quarterly Research Fees paid by Schering-Plough prior to the effective date of such termination. 
 (b) If Schering-Plough terminates this Agreement during the Research Program Term pursuant to Section 12.3, 12.4 or
12.5, then AVEO shall retain all quarterly Research Fees paid by Schering-Plough prior to the effective date of such termination. 
 12.8. Consequences of Certain Terminations by Schering-Plough. 
 (a) In the event
Schering-Plough terminates this Agreement pursuant to Section 12.4, then (i) AVEO’s rights under the licenses granted to it pursuant to Section 6.2 and its retained rights under Section 6.1(f) shall terminate;
(ii) Schering-Plough’s license rights under Section 6.1 shall survive termination; (iii) AVEO shall promptly terminate any work that it is doing under this Agreement and Schering-Plough shall not owe AVEO any further payments for
Research and Development work done after the effective date of termination; (iv) AVEO shall promptly transfer to Schering-Plough all documents and materials in its possession that are necessary or reasonably useful for the Research, Development
and/or Commercialization of Licensed Products; and (v) all milestone and royalty payments set forth in Sections 7.5 and 7.6 shall be reduced by [**] percent ([**]%) and shall be payable to AVEO. 
 (b) In the event Schering-Plough terminates this Agreement pursuant to Section 12.5, then (i) AVEO’s rights
under the licenses granted to it pursuant to Section 6.2 and its retained rights under Section 6.1(f) shall terminate; (ii) Schering-Plough’s license rights under Section 6.1 shall survive termination; (iii) AVEO shall
promptly terminate any work that it is doing under this Agreement and Schering-Plough shall not owe AVEO any further payments for Research and Development work done after the effective date of termination; (iv) AVEO shall promptly transfer to
Schering-Plough all documents and materials in its possession that are necessary or reasonably useful for the Research, Development and/or Commercialization of Licensed Products; and (v) the full milestone and royalty payments due under
Sections 7.5 and 7.6 shall be payable to AVEO or its successor-in-interest. 
 12.9. Effect of Termination and Expiration;
Accrued Rights and Obligations. Termination of this Agreement for any reason shall not release either Party from any liability that, at the time of such termination, has already accrued or that is attributable to a period prior to such
termination (including payment obligations accrued prior to the effective date of termination pursuant to Article IV and/or Article VII) nor preclude either Party from pursuing any right or remedy it may have hereunder or at Law or in equity with
respect to any breach of this Agreement. It is understood and agreed that monetary damages may not be a sufficient remedy for any breach of this Agreement and that the non-breaching Party may be entitled to seek injunctive relief as a remedy for any
such breach. 
  

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 12.10. Survival. The rights and obligations set forth in this Agreement shall extend
beyond the Term or termination of this Agreement only to the extent expressly provided for in this Agreement or to the extent required to give effect to a termination of this Agreement or the consequences of a termination of this Agreement as
expressly provided for in this Agreement. Without limiting the generality of the foregoing, it is agreed that the provisions of Sections 6.4, 6.5, 7.9 – 7.16, 8.1, 8.2(b), 12.6 – 12.10, 15.1 – 15.3, 15.15, 15.16, and Articles I, IX,
XI, XII and XIII shall survive expiration or termination of this Agreement for any reason. 
 ARTICLE XIII. DISPUTE
RESOLUTION FOR 
 NON-JSC MATTERS 
 13.1. Informal Resolution. In the event of any controversy or claim arising out of or relating to this Agreement, or the rights or
obligations of the Parties hereunder, other than those to be resolved by the JSC, either Party may initiate informal dispute resolution by sending written notice of the dispute to the other Party . With thirty (30) days after receipt of such
notice appropriate representatives of the Parties shall meet for attempted resolution by good faith negotiation. If such representatives are unable to promptly resolve such disputed matter within said thirty (30) days, either Party may refer
the matter by written notice to the President of the Schering-Plough Research Institute division of Schering Corporation (or the President of Global Pharmaceutical Business if the dispute concerns Commercialization) and the Chief Executive Officer
of AVEO for discussion and resolution of such dispute within thirty (30) days after such written notice (or such longer period of time as the Parties may mutually agree). 
 13.2. Arbitration. 
 (a) If such representatives are unable to resolve such dispute within thirty (30) days after such written notice, either Party may initiate arbitration proceedings in accordance with the provisions
of this Section 13.2 by a panel of three (3) arbitrators. The arbitration proceeding shall be conducted under the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) with such proceedings to be
held in New York, New York. In all cases, the arbitration proceedings shall be conducted in the English language, and all documents that are submitted in the proceeding shall be in the English language. Judgment upon the award rendered by
arbitration may be issued and enforced by any court having competent jurisdiction. 
 (b) Injunctive
Relief. By agreeing to arbitration, the Parties do not intend to deprive any competent court of such court’s jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment or other order in aid of the arbitration proceedings, on
the one hand, and the enforcement of any award or judgment on the other hand. Without prejudice to such provisional remedies in aid of arbitration as may be available under the jurisdiction of a national court, the arbitration panel shall have full
authority to grant provisional remedies and to award damages for failure of any Party to respect the court of arbitration’s order to that effect. 
 (c) The expenses of any arbitration, including expenses of counsel and other experts, shall be borne by the Parties in proportion as to which each Party prevails or is defeated in arbitration, as
determined by the arbitrators. 
  

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 ARTICLE XIV. HSR MATTERS 
 14.1. HSR Filings. Each of AVEO and Schering-Plough shall as promptly as practicable file any HSR Filing required of it under the HSR
Act with respect to the transactions contemplated by this Agreement, and shall seek early termination of the waiting period unless otherwise mutually agreed by the Parties. The Parties shall cooperate with one another to the extent necessary in the
preparation of any HSR Filing required to be filed under the HSR Act. Each Party shall be responsible for its own costs and expenses associated with any HSR Filing, it being understood that Schering-Plough shall be responsible for all filing fees
required in connection with any HSR Filing. 
 14.2. HSR Cooperation; Further Assurances. AVEO and Schering-Plough shall,
and shall cause each of their respective Affiliates to, cooperate and use their respective commercially reasonable efforts to obtain any HSR Clearance required for the consummation of the transactions contemplated under this Agreement and to respond
to any governmental request for information under the HSR Act. The Parties will consult and cooperate with one another, and consider in good faith the views of one another, in connection with any analysis, appearance, presentation, memorandum,
brief, argument, opinion or proposal made or submitted by or on behalf of either Party in connection with proceedings under or relating to the HSR Act. Notwithstanding anything in this Agreement to the contrary, neither Party shall be obligated in
any way to (a) sell, transfer or otherwise dispose of (including by way of any “hold separate” or similar arrangement) any asset or product or business, (b) terminate any contractual relationship, or (c) amend, terminate or
otherwise modify any license or other intellectual property agreement, in order to obtain HSR Clearance with respect to the transactions contemplated by this Agreement. 
 ARTICLE XV. MISCELLANEOUS 
 15.1. Governing Law. This
Agreement and any dispute arising from the performance or breach of this Agreement shall be governed by, construed and enforced in accordance with the laws of the State of New York, without regard to its conflicts of laws rules. 
 15.2. Waiver. Waiver by a Party of a breach hereunder by the other Party shall not be construed as a waiver of any succeeding breach
of the same or any other provision. No delay or omission by a Party to exercise or avail itself of any right, power or privilege that it has or may have hereunder shall operate as a waiver of any right, power or privilege by such Party. No waiver
shall be effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the Party granting the waiver. 
 15.3. Notices. All notices, instructions and other communications hereunder or in connection herewith shall be in writing, shall be
sent to the address specified in this Section 15.3 and shall be: (a) delivered personally; (b) sent by registered or certified mail, return receipt requested, postage prepaid; (c) sent via a reputable nationwide overnight courier
service; or (d) sent by facsimile transmission with a confirmation copy sent by regular mail. Any such notice, instruction or communication shall be deemed to have been delivered upon receipt if delivered by hand, three (3) Business Days
after it is sent by registered or certified mail, return receipt

  

 -53- 

 
requested, postage prepaid, one (1) Business Day after it is sent via a reputable nationwide overnight courier service, or when transmitted with electronic confirmation of receipt, if
transmitted by facsimile (if such transmission is on a Business Day; otherwise, on the next Business Day following such transmission). 
 Notices to Schering-Plough shall be addressed to: 
 Schering-Plough Research Institute 
 2015 Galloping Hill Road 
 Kenilworth, New Jersey 07033 
 Attention: Discovery Collaborations & Technology 
 Facsimile: 908-740-7164 
 With a copy to: 
 Schering-Plough Corporation 
 2000 Galloping Hill Road 
 K-6-1 (1800) 
 Kenilworth, New Jersey 07033 
 Attention: Staff Vice President, Research Contracting 
 Facsimile: 908-298-2739 
 Schering Corporation 
 2000 Galloping Hill Road 
 Kenilworth, New Jersey 07033 
 Attn: Senior Vice President, Global Licensing 
 Facsimile: 908-298-7366 
 Notices to AVEO shall be addressed to: 
 AVEO Pharmaceuticals, Inc. 
 75 Sidney Street, 4th Floor 
 Cambridge, MA 02139 
 Attention: Chief Business Officer 
 Facsimile: 617-995-4995 
 with a copy to: 
 Wilmer Cutler Pickering Hale and Dorr LLP 
 60 State Street 
 Boston, MA 02109 
 Attention: Steven D. Singer, Esq. 
 Facsimile: (617) 526-5000 
  

 -54- 

 Either Party may change its address by giving notice to the other Party in the manner
provided above. 
 15.4. Entire Agreement. This Agreement (including Exhibits and Schedules) contains the complete
understanding of the Parties with respect to the Development, Manufacture and Commercialization of Licensed Products and supersedes all prior understandings and writings relating to such subject matter. In particular, and without limitation, it
supersedes and replaces the Confidentiality Agreements, the AVEO/SP Material Transfer Agreement and any and all term sheets relating to the transactions contemplated by this Agreement and exchanged between the Parties prior to the Execution Date. No
amendment change or addition to this Agreement will be effective or binding on either Party unless reduced to writing and duly executed on behalf of both Parties. 
 15.5. Headings. Headings in this Agreement are for convenience of reference only and shall not be considered in construing this Agreement. 
 15.6. Severability. If any provision of this Agreement is held unenforceable by a court or tribunal of competent jurisdiction because
it is invalid or conflicts with any Law of any relevant jurisdiction, the validity of the remaining provisions shall not be affected. In such event, the Parties shall negotiate a substitute provision that, to the extent possible, accomplishes the
original business purpose. 
 15.7. Registration and Filing of the Agreement. To the extent a Party determines in good
faith that it is required by applicable Law to publicly file, register or notify this Agreement with a Regulatory Authority, including public filings pursuant to securities Laws, it shall provide the proposed redacted form of the Agreement to the
other Party a reasonable amount of time, not less than five (5) Business Days, prior to filing for the other Party to review such draft and propose changes to such proposed redactions. The Party making such filing, registration or notification
shall incorporate any proposed changes timely requested by the other Party, absent a substantial reason to the contrary, and shall use commercially reasonable efforts to seek confidential treatment for any terms that the other Party timely requests
be kept confidential, to the extent such confidential treatment is reasonably available consistent with applicable Law. Each Party shall be responsible for its own legal and other external costs in connection with any such filing, registration or
notification. 
 15.8. Assignment. Either Party may assign this Agreement to an Affiliate of such Party without the prior
written consent of the other Party; provided, that such Party provides the other Party with written notice of such assignment and remains fully liable for the performance of such Party’s obligations hereunder by such Affiliate. Further, each
Party may assign this Agreement, without the prior written consent of the other Party, to its successor in interest by way of merger, acquisition, or sale of all or substantially all of its assets to which this Agreement relates; provided, that such
Party provides the other Party with written notice of such assignment; and provided further, if the Third Party that acquires or controls AVEO or AVEO’s assets, as the case may be, following such a transaction is a Major Pharmaceutical Company
(as defined below), then, upon written notice by Schering-Plough, AVEO’s Co-Promotion Option pursuant to Section 5.2 and the provisions of Article 5 of this Agreement (other than Schering-Plough’s obligation to use Commercially
Reasonable Efforts to Commercialize Licensed Product in the Major Markets) shall terminate immediately.

  

 -55- 

 
Any other assignment of this Agreement by a Party requires the prior written consent of the other Party. Any assignment in violation of this Section 15.8 shall be null and void. This
Agreement shall be binding on and shall inure to the benefit of the permitted successors and assigns of the Parties hereto. Notwithstanding the foregoing, in the event that a Party assigns this Agreement to its successor in interest by way of
merger, acquisition, or sale of all or substantially all of its assets to which this Agreement relates, the intellectual property rights of such successor in interest, and of any of its Affiliates as of just prior to such assignment, as existing
immediately prior to the closing of such transaction, shall be automatically excluded from the rights licensed to the non-assigning Party under this Agreement. For purposes of this Section 15.8, “Major Pharmaceutical Company”
means a Third Party company (including a pharmaceutical or biotech company or a “group” within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934; but excluding Schering-Plough and any Affiliates of the Parties)
whose worldwide net sales (or reported equivalent) of human pharmaceutical products in the most recently completed fiscal year for which audited financial statements are publicly available exceed [**] US Dollars or whose net sales in the US of human
pharmaceutical products in the most recently completed fiscal year for which audited financial statements are publicly available exceed [**] US Dollars, as reported in such financial statements, or if not publicly available as provided by AVEO.

 15.9. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. 
 15.10. Force Majeure. No Party shall
be liable for failure of or delay in performing obligations set forth in this Agreement, and no Party shall be deemed in breach of its obligations, if such failure or delay is due to a natural disaster, explosion, fire, flood, tornadoes,
thunderstorms, earthquake, war, terrorism, riots, embargo, losses or shortages of power, labor stoppage, substance or material shortages, damage to or loss of product in transit, events caused by reason of Laws of any Regulatory Authority, events
caused by acts or omissions of a Third Party, or any other cause reasonably beyond the control of such Party. 
 15.11.
Non-Solicitation of Employees. During the Research Program Term, neither Party shall directly recruit or solicit any employee of the other Party, who is then a current employee of the other Party, with whom such Party has come into contact or
interacted with for the purpose of performing this Agreement, without the prior consent of the other Party, except pursuant to general solicitations not targeted specifically at such employees or in response to unsolicited employment inquiries by
such employees. 
 15.12. Third-Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of
or enforceable by any Third Party other than an indemnitee under Article XI. No such Third Party shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability
or obligation (or otherwise) against either Party. 
  

 -56- 

 15.13. Relationship of the Parties. Each Party shall bear its own costs incurred in
the performance of its obligations hereunder without charge or expense to the other, except as expressly provided in this Agreement. Neither Party shall have any responsibility for the hiring, termination or compensation of the other Party’s
employees or for any employee compensation or benefits of the other Party’s employees, other than as provided in Section 3.2(a). No employee or representative of a Party shall have any authority to bind or obligate the other Party for any
sum or in any manner whatsoever, or to create or impose any contractual or other liability on the other Party without said other Party’s approval. For all purposes, and notwithstanding any other provision of this Agreement to the contrary, the
legal relationship under this Agreement of each Party to the other Party shall be that of independent contractor. Nothing in this Agreement shall be construed to establish a relationship of partners or joint venturers between the Parties.

 15.14. Performance by Affiliates. To the extent that this Agreement imposes obligations on Affiliates of a Party, such
Party agrees to cause its Affiliates to perform such obligations. 
 15.15. Construction. Each Party acknowledges that it
has been advised by counsel during the course of negotiation of this Agreement, and, therefore, that this Agreement shall be interpreted without regard to any presumption or rule requiring construction against the Party causing this Agreement to be
drafted. Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit shall be deemed to be a reference to any Article, Section, subsection, paragraph, clause, Schedule or Exhibit, of or to, as the case
may be, this Agreement. Except where the context otherwise requires, (a) wherever used, the use of any gender will be applicable to all genders, (b) any definition of or reference to any agreement, instrument or other document refers to
such agreement, instrument other document as from time to time amended, supplemented or otherwise modified, (c) any reference to any Laws refers to such Laws as from time to time enacted, repealed or amended, and (d) the words
“herein”, “hereof” and hereunder” refer to this Agreement in its entirety and not to any particular provision hereof. 
 15.16. No Consequential or Punitive Damages. NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, ARISING
FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 15.16 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER THIS AGREEMENT WITH RESPECT TO THIRD
PARTY CLAIMS, OR WITH RESPECT TO THE INFRINGEMENT OR MISAPPROPRIATION OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS OR CONFIDENTIAL INFORMATION. 
 [Remainder of page intentionally left blank.] 
  

 -57- 

 IN WITNESS WHEREOF, the Parties hereto have set their hand as of the Execution Date.

  

									
	AVEO PHARMACEUTICALS, INC.	 		 	 SCHERING CORPORATION,
 acting through its Schering-Plough
 Research Institute division

					
	By:	 	/s/ Tuan Ha-Ngoc	 		 	By:	 	/s/ E. Moore
	Title:	 	CEO	 		 	Title:	 	VP & Treasurer

  

 -58- 

 EXHIBIT A 
 AVEO MOLECULES 
 AV-299 
 he2B8-4 
 [**] 
  

 Exh. A-1 

 EXHIBIT B 
 AVEO PATENT RIGHTS 
  

					
	 Docket Number
	 	 Serial No.
	 	 Filing Date

			
	[**]	 	[**]	 	[**]
			
	[**]	 	[**]	 	[**]
			
	[**]	 	[**]	 	[**]

  

 Exh. B-1 

 EXHIBIT C 
 TERMS OF THE CO-PROMOTION AGREEMENT 
  

	1.	General. AVEO shall perform [**] percent ([**]%), [**] percent ([**]%) or [**] percent ([**]%) (the “Applicable Percentage”, as defined in
Section 5.2(b)) of the sales effort for the Co-Promotion Indication, such level to be specified in AVEO’s notice of exercise of the Co-Promotion Option. Based on the Applicable Percentage, the Co-Promotion Agreement shall be structured to
reflect the following: 

  

	 	•	 	 The allocation of details for the Co-Promotion Indication will be reasonably allocated between the Parties, taking into consideration prescribing
levels, target audience for the Co-Promotion Indication, geographic territory, centers of excellence and other considerations as decided by the JCC. In all cases the Parties agree that the allocation of the details should be done in a manner to
minimize any duplication of effort by the Parties. [**]. 

  

	 	•	 	 Each year Schering-Plough may increase or decrease the overall sales force effort for the Licensed Product for the Co-Promotion Indication. If
Schering-Plough increases such sales force efforts, AVEO shall have the right, but not the obligation, to increase its total sales force efforts within [**] days of receipt of notice from Schering-Plough in order to maintain its Applicable
Percentage, provided that if AVEO does not increase its total sales force efforts, its Applicable Percentage shall be reduced to reflect the level of sales efforts maintained by AVEO. If Schering-Plough decreases such sales force efforts, AVEO shall
adjust its sales force efforts to perform its Applicable Percentage unless Schering-Plough agrees otherwise. 

  

	 	•	 	 Schering-Plough will compensate AVEO for co-promoting the Licensed Product [**]. 

  

	 	•	 	 AVEO shall employ its expertise, best professional judgment and, where applicable, its working relationships with the target audience and other
physician specialties, as applicable, to ensure that AVEO’s sales force used for the promotion of the Licensed Product (the “AVEO Sales Force”) details the Licensed Products in a manner aimed at maximum appropriate prescription
generation. In connection with AVEO’s management of the AVEO Sales Force, AVEO shall designate its own full-time employee as a senior director of sales (or functional equivalent), who shall be AVEO’s primary contact with Schering-Plough
relating to the AVEO Sales Force. 

  

	 	•	 	 [**]. 

  

	 	•	 	 Hiring Criteria. AVEO shall ensure that each member of the AVEO Sales Force meets an agreed upon Hiring Criteria throughout the term of the
Co-Promotion Agreement, provided such hiring criteria is no more stringent than Schering-Plough’s hiring criteria for its own sale force for the Licensed Product. Hiring Criteria shall mean that (i) at least [**] percent ([**])% of the
Sales Force shall have [**] or more years of experience in promoting prescription pharmaceutical products, of which [**] must have been spent promoting to hospitals and specialty care physicians; and (ii) at least [**] percent ([**])% of the
Sales Force shall have at least [**] of experience in promoting prescription pharmaceutical oncology products. 

  

 Exh. C-1 

	2.	Non-Compete. During the term of the Co-Promotion Agreement, AVEO may not market, promote, or otherwise sell another pharmaceutical product in the United States
that could reasonably be substituted for the Licensed Product for the treatment of Co-Promotion Indication. 

  

	3.	Incentive Program. AVEO shall provide, at AVEO’s cost, the AVEO Sales Force with an incentive or bonus plan in connection with the promotion of the Licensed
Product. Prior to implementation, AVEO shall provide a copy of such incentive or bonus plan to Schering-Plough for its review and approval, such approval not be unreasonably withheld, conditioned or delayed. 

  

	4.	Penalty. The Co-Promotion Agreement shall contain a reasonable and appropriate penalty provision if AVEO fails to satisfy [**] percent ([**]%) of its detailing
obligations to its target audience in any Calendar Year. For example, if AVEO only performs [**] percent ([**]%) of its detailing obligations for any Calendar Year, Schering-Plough shall only be required to pay AVEO for [**] percent ([**]%) of its
actual details during that Calendar Year. 

  

	5.	 AVEO’s Ability to Terminate. AVEO may not terminate the Co-Promotion Agreement until after the first (1st) anniversary of the launch of the Licensed Product in the
Co-Promotion Indication in the United States, and at any time thereafter AVEO may terminate the Co-Promotion Agreement upon three (3) months prior written notice to Schering-Plough. 

  

	6.	Schering-Plough’s Ability to Terminate. During the initial seven (7) year term of the Co-Promotion Agreement, if AVEO (directly or indirectly)
initiates or supports a Phase II or Phase III clinical trial for a product for the treatment of the Co-Promotion Indication, Schering-Plough shall have the right to give notice of termination of the Co-Promotion Agreement. Such notice will not be
effective unless the results of the study meet the study’s primary end point. Once such notice is effective, all current and future Co-Promotion activities (or options to Co-Promote) will terminated. For the avoidance of doubt, if AVEO has
initiated a Phase II/Phase III clinical trial for a product for the treatment of the Co-Promotion Indication and it has not yet exercised its Co-Promotion Option, such option will be terminated. 

  

	7.	Promotional Materials and Samples. 

  

	 	•	 	 Schering-Plough will provide to AVEO, at Schering-Plough’s expense, reasonable quantities of promotional materials and product samples and/or
sample vouchers for the Licensed Product to support AVEO’s co-promotion activities (it being understood that the Co-Promotion Agreement also will describe the manner in which the Parties will be presented and described to the medical community
in any promotional materials as permitted by applicable law and the labeling for the

  

 Exh. C-2 

	 	 
Licensed Product). AVEO shall not, and shall ensure that the AVEO Sales Force does not, make any changes to the promotional materials. AVEO shall be responsible for the costs of returning or
destroying any unused product samples and/or sample vouchers and promotional materials for the Licensed Product. 

  

	 	•	 	 Prior to receiving any samples from Schering-Plough, AVEO must provide Schering-Plough with copies of AVEO’s sampling procedures and policies for
Schering-Plough’s review and approval, such approval not to be unreasonably withheld or delayed. If AVEO desires to change its sampling procedures and policies, AVEO shall give Schering-Plough a revised draft of its sampling procedures and
policies, and Schering-Plough shall have thirty (30) days to review and approve or reject such proposed changes. AVEO shall not implement such proposed changes to its sampling procedures and policies until it has received Schering-Plough’s
prior written approval, such approval not to be unreasonably withheld or delayed. 

  

	8.	Training and Related AVEO Sales Force Issues. During the term of the Co-Promotion Agreement, AVEO shall use its Commercially Reasonable Efforts to
minimize turnover within the AVEO Sales Force and fill any vacancies in the AVEO Sales Force as soon as reasonably practicable. 

  

	 	•	 	 Schering-Plough may participate, at its option and cost, in AVEO’s training programs to promote a consistent, focused promotional strategy. At
Schering-Plough’s reasonable request, AVEO may participate in Schering-Plough’s sales meetings for the Licensed Product. 

  

	 	•	 	 AVEO shall be responsible (at its own expense) for establishing training (other than the initial “train-the-trainer” training provided by
Schering-Plough), supervising and maintaining the AVEO Sales Force. Schering-Plough shall train AVEO’s sales managers and trainers (i.e., “train-the-trainer”) at Schering-Plough’s cost and expense. 

 

	 	•	 	 AVEO will [**] related to the Licensed Product [**] provided that [**] to the extent [**] (as defined below). 

  

	 	•	 	 At AVEO’s reasonable request, Schering-Plough shall advise AVEO on sales force strategy and promotional activities in assisting the development of
AVEO’s co-promotion efforts. 

  

	 	•	 	 AVEO shall provide Schering-Plough with copies of any written communications or transcripts of any verbal communications that are disseminated
nationally by AVEO to the AVEO Sales Force for the Licensed Product. Schering-Plough shall provide AVEO with copies of communications to Schering-Plough’s Sales Force to the extent that such communications relate to compliance or safety issues
and would be reasonably required by AVEO to appropriately promote the Licensed Product. 

  

 Exh. C-3 

	9.	Compliance. AVEO shall comply and ensure that its employees and the AVEO Sales Force comply with all applicable laws, rules, regulations and guidelines in
connection with the performance by AVEO of its obligations under the Co-Promotion Agreement, including, without limitation, the statutes, regulations and written directives of the FDA, including the FD&C Act, the Prescription Drug Marketing Act,
the Federal Health Care Programs Anti-Kickback Law, 42 U.S.C. 1320a-7b(b), the statutes, regulations and written directives of Medicare, Medicaid and all other health care programs, as defined in 42 U.S.C. § 1320a-7b(f), the Pharmaceutical
Research and Manufacturers of America (“PhRMA”) Code of Pharmaceutical Marketing Practices (the “PhRMA Code”), the American Medical Association (“AMA”) Guidelines on Gifts to Physicians from
Industry (the “AMA Guidelines”), Schering-Plough’s Standards of Global Business Practices (to the extent applicable) and Schering-Plough’s U.S. Sales and Marketing Policy (to the extent applicable), each as may be amended
from time to time. Schering-Plough will provide AVEO with access to or a copy of the foregoing Schering-Plough practices and policies. 

  

	10.	Screening. Prior to the launch of the Licensed Product, AVEO will screen the AVEO Sales Force or other employees directly involved in the performance of
AVEO’s obligations under the Co-Promotion Agreement to determine whether: (i) any have been debarred under the FD&C Act, or (ii) any are excluded, debarred, suspended, or otherwise ineligible to participate in the Federal health
care programs or in Federal procurement or nonprocurement programs, (iii) any are convicted of a criminal offense that falls within the ambit of the Federal statute providing for mandatory exclusion from participation in Federal health care
programs but has not yet been excluded, debarred, suspended, or otherwise declared ineligible to participate in those programs; (iv) any are listed on the HHS/OIG List of Excluded Individuals/Entities (available through the Internet at
http://oig.hhs.gov); or (v) any are listed on the General Services Administration’s List of Parties Excluded from Federal Programs (available through the Internet at hhtp://epls.arnet.gov). AVEO will immediately notify
Schering-Plough in writing in the event that any of the AVEO Sales Force personnel or employees directly involved in the performance of AVEO’s obligations under the Co-Promotion Agreement fall with the categories set forth above. In addition,
during the term of the Co-Promotion Agreement, AVEO shall immediately notify Schering-Plough if any of the AVEO Sales Force personnel or other employees directly involved in performance of AVEO’s obligations under the Co-Promotion Agreement,
(i) becomes debarred under the FD&C Act, or (ii) is excluded, debarred, suspended, or otherwise ineligible to participate in the Federal health care programs or in Federal procurement or nonprocurement programs, (iii) is convicted
of a criminal offense that falls within the ambit of the Federal statute providing for mandatory exclusion from participation in Federal health care programs but has not yet been excluded, debarred, suspended, or otherwise declared ineligible to
participate in those programs; (iv) becomes listed on the HHS/OIG List of Excluded Individuals/Entities (available through the Internet at http://oig.hhs.gov); or (v) becomes listed on the General Services Administration’s List
of Parties Excluded from Federal Programs (available through the Internet at hhtp://epls.arnet.gov). If any of the AVEO Sales Force or other employees directly involved in performance of AVEO’s obligations under the Co-Promotion
Agreement fall within any of the above screening categories, AVEO shall immediately prohibit them from performing any of AVEO’s obligations to Schering-Plough under the Co-Promotion Agreement. 

  

 Exh. C-4 

	11.	Discipline. If Schering-Plough has a reasonable basis for believing any member of the AVEO Sales Force has violated any applicable laws, rules or
regulations, or failed to provide satisfactory service or materially comply with the Co-Promotion Agreement, then Schering-Plough shall notify AVEO of the alleged violation and AVEO shall promptly investigate the matter and, if the allegation turns
out to be true, shall take the appropriate remedial action, including removal of such member of the AVEO Sales Force from any promotion activities related to the Licensed Product, if appropriate. Schering-Plough shall have the right to request that
AVEO temporarily suspend such employee from the AVEO Sales Force pending the outcome of such investigation. AVEO shall be solely responsible for taking any disciplinary actions in connection with its sales force. 

  

	12.	Termination. 

 The term of
the Co-Promotion Agreement shall commence on the effective date of the Co-Promotion Agreement and shall expire, if not terminated earlier, on the date of the seven (7) year anniversary of the effective date. The Co-Promotion Agreement shall be
renewable by the Parties for one (1) year terms unless a Party provides the other Party with written notice three (3) months prior to the expiration of the relevant seven (7) or one (1) year term. 
 Schering-Plough shall have the right to terminate the Co-Promotion Agreement upon thirty (30) days written notice if AVEO fails to
perform its material obligations under the Co-Promotion Agreement, with a reasonable notice and opportunity to cure right to be set forth in the Co-Promotion Agreement. A material breach shall include [**]. 
 The Co-Promotion Agreement shall terminate upon any termination of the Research, Development and License Agreement between Schering-Plough
and AVEO. 
 The Co-Promotion Agreement shall contain other reasonable and appropriate termination rights. 
 Upon termination of the Co-Promotion Agreement, AVEO shall promptly cease all of its activities under the Co-Promotion Agreement and shall
return to Schering-Plough all unused product samples for the Licensed Product and all sales training materials, promotional materials, marketing materials and other materials used for the Commercialization of the Licensed Product. 
  

	13.	AVEO [**]. If AVEO exercises it Co-Promotion Option, [**], taking into consideration [**] 

  

	14.	 Schering-Plough’s Corporate Integrity Agreement. On or about July 29, 2004 (and amended August 25, 2006),
Schering-Plough executed a Corporate Integrity Agreement with the federal government (“Corporate Integrity Agreement”). AVEO employees performing services under the Co-Promotion Agreement may be deemed Covered Persons and, in
particular, Promotional and Product Services Relevant Covered Persons under the terms of the Corporate Integrity Agreement. AVEO

  

 Exh. C-5 

	 	 
agrees that employees deemed Covered Persons in the Corporate Integrity Agreement will fulfill all obligations set forth in the Corporate Integrity Agreement that are applicable to Covered
Persons. Prior to entry into the Co-Promotion Agreement, the Parties shall discuss in good faith the applicability of Schering-Plough’s Corporate Integrity Agreement to the planned activities of Schering-Plough and AVEO under the Co-Promotion
Agreement; provided, that Schering-Plough shall make the final determination as to whether AVEO shall be required to comply with Schering-Plough’s Corporate Integrity Agreement. Schering-Plough will provide AVEO with access to or a copy of the
then-current Corporate Integrity Agreement, together with any amendments thereto during the term of the Co-Promotion Agreement. 

  

	 	•	 	 AVEO will assign an individual to be held accountable for compliance of the AVEO Sales Force and other AVEO employees or personnel assigned to fulfill
AVEO’s obligations under this Agreement with Schering-Plough’s Standards of Global Business Practices and Schering-Plough’s U.S. Sales and Marketing Policy, the relevant Corporate Integrity Agreement obligations (the
“Compliance Officer”). AVEO shall report on or before thirty (30) days after the end of each calendar quarter to Schering-Plough all allegations it has received, investigations it has commenced, and/or results of any
investigations completed with respect to an employee’s alleged failure to comply with the Business Policies and what, if any action, was taken as a result. Copies of this report shall be sent to: 

 Director of Government Program, Oversight 
 Schering-Plough Corporation 
 2000 Galloping Hill Road 
 K-5-3 
 Kenilworth,
New Jersey, 07033 
 (908) 298-2450 
 (908) 298-6646 
 In addition, AVEO shall notify Schering-Plough of any
allegations it has received within ten (10) days from the date it received the allegation and shall notify Schering-Plough of the completion and results of any investigation within ten (10) days of the completion date of the investigation.

  

	 	•	 	 AVEO agrees that employees deemed Covered Persons in the Corporate Integrity Agreement will fulfill all training obligations set forth in the Corporate
Integrity Agreement in Section III.C (Training and Education) of the Corporate Integrity Agreement and in accordance with the Co-Promotion Agreement and certify their compliance with the training obligations set forth in the Corporate Integrity
Agreement. AVEO shall maintain all records relating to compliance with the Corporate Integrity Agreement, including records of screening conducted by AVEO for a period of seven (7) years from the effective date of the Co-Promotion Agreement.

  

 Exh. C-6 

	 	•	 	 AVEO has or will have by the effective date of the Co-Promotion Agreement a disclosure program designed to facilitate communications relating to
compliance with Federal health care program and FDA requirements, Schering-Plough’s Standards of Global Business Practices and Schering-Plough’s U.S. Sales and Marketing Policy, and AVEO’s policies (the “Disclosure
Program”). During the term of the Co-Promotion Agreement, AVEO will maintain a Disclosure Program that includes a mechanism (e.g., a toll-free compliance telephone line) to enable individuals to disclose, to the Compliance
Officer or some other person who is not in the disclosing individual’s chain of command, any identified issues or questions associated with AVEO’s policies, Schering-Plough’s Standards of Global Business Practices and
Schering-Plough’s U.S. Sales and Marketing Policy, conduct, practices, or procedures with respect to a Federal health care program or FDA requirement believed by the individual to be a potential violation of criminal, civil, or administrative
law. The Compliance Officer shall conduct an internal review of any matter brought to the attention of AVEO that a reasonable person would consider a probable violation of criminal, civil, or administrative laws relating to the promotion of
the Licensed Product. AVEO shall report to Schering-Plough on the results on the Compliance Officer’s internal review. During the term of the Co-Promotion Agreement, AVEO shall appropriately publicize the existence of the disclosure mechanism
(e.g., via periodic e-mails to employees or by posting the information in prominent common areas, including on the company’s intranet or internal web site available to all employees). 

  

	 	•	 	 The Disclosure Program shall emphasize a non-retribution, non-retaliation policy, and shall include a reporting mechanism for anonymous communications
for which appropriate confidentiality shall be maintained. Upon receipt of a disclosure associated with AVEO’s policies, Schering-Plough’s Standards of Global Business Practices and Schering-Plough’s U.S. Sales and Marketing
Policy, conduct, practices or procedures with respect to any Federal health care program, Federal health care program requirement or FDA requirement concerning the promotion of products (hereafter “Disclosure”), the Compliance
Officer shall gather all relevant information from the disclosing individual. The Compliance Officer shall make a preliminary, good faith inquiry into the allegations set forth in every Disclosure to ensure that he or she has obtained all of
the information necessary to determine whether a further review should be conducted. For any Disclosure that is sufficiently specific so that it reasonably: (1) permits a determination of the appropriateness of the alleged improper
practice; and (2) provides an opportunity for taking corrective action, AVEO shall conduct an internal review of the allegations set forth in the Disclosure and ensure that proper follow-up is conducted. 

  

	 	•	 	 The Compliance Officer shall maintain a Disclosure log, which shall include a record and summary of each Disclosure received (whether anonymous or
not), the status of the respective internal reviews, and any corrective action taken in response to the internal reviews. The Disclosure log shall be made available to Schering-Plough, upon request. 

  

 Exh. C-7 

	 	•	 	 AVEO shall maintain policies and procedures relating to compensation (including salaries and bonuses) for the AVEO Sales Force that are designed to
ensure that financial incentives do not exist for the improper promotion, sales, and marketing of the Licensed Product and disciplinary policies and procedures for violations of AVEO’s policies and procedures, including policies relating to
Federal health care program and FDA requirements. 

  

	15.	Miscellaneous. 

  

	 	•	 	 Nothing in the Co-Promotion Agreement shall give AVEO the right to conduct or otherwise participate in any clinical trials relating to the Licensed
Product. 

  

	 	•	 	 The Parties shall agree to appropriate and reasonable audit, recordkeeping and reporting obligations (including monthly and biweekly performance
reports). 

  

 Exh. C-8 

 SCHEDULE 7.5(a) 
 SCHERING-PLOUGH DEVELOPMENT CANDIDATE CRITERIA 
 The following criteria will be used to select an appropriate humanized anti-HGF antibody for development by the JSC: 
  

	I.	Physical Characterization 

 [**] 
  

	II.	Pharmacological Characterization 

 [**]

  

	III.	Safety Pharmacology 

 [**] 
  

	IV.	Pharmacokinetics and Metabolism 

 [**]

  

	V.	Process Development 

 [**] 
  

	VI.	Patent Status 

 [**] 
  

 Sch. 9.3-1

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