Document:

Development and License Agreement

 Exhibit 10.13 
 CONFIDENTIAL TREATMENT REQUESTED 
 DEVELOPMENT AND LICENSE AGREEMENT

 THIS DEVELOPMENT AND LICENSE
AGREEMENT (the “Agreement”), is made effective as of May 11, 2004 (the “Effective Date”), by and between the LUDWIG INSTITUTE
FOR CANCER RESEARCH, a Swiss not-for-profit corporation with its registered office at Stadelhoferstrasse 22, 8001 Zurich, Switzerland and having an office at 605 Third Avenue, 33rd
Floor, New York, NY 10158, USA (“LICR”), and KALOBIOS PHARMACEUTICALS, INC., a Delaware corporation (“KaloBios”), having an address at 3427 Hillview Avenue, Palo
Alto, CA 94304, USA. KaloBios and LICR may be referred to herein individually as a “Party” and collectively as “Parties.” 
 RECITALS 
 WHEREAS,
LICR has developed certain chimeric antibodies that bind and/or modulate granulocyte-macrophage colony-stimulating factor, and intellectual property related thereto; 

WHEREAS, KaloBios desires to in-license such antibodies and intellectual property
from LICR to develop additional antibody products; and 
 WHEREAS, the
Parties have agreed upon the terms of the license for such chimeric molecules and intellectual property, as set forth in this Agreement. 
 AGREEMENT 
 NOW,
THEREFORE, in consideration of the foregoing premises and the covenants and obligations set forth in this Agreement, the Parties hereby agree as follows: 

1.         DEFINITIONS. Capitalized terms used in this
Agreement (other than the headings of the Sections or Articles), whether used in the singular or plural, shall have the following meaning set forth in this Article 1, or, if not listed in this Article 1, the meaning as designated in the text of this
Agreement. 
 1.1      “Affiliate” means, with respect to
a particular Party, a person, corporation, partnership, or other entity that controls, is controlled by or is under common control with such Party. For the purposes of this Section 1.1, the word “control” (including, with correlative
meaning, the terms “controlled by” or “under common control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such
entity, whether by the ownership of at least fifty percent (50%) of the voting stock of such entity, or by contract or otherwise. 
 1.2      “Confidential Information” has the meaning described in Section 5.1. 

1.3      “Control”, “Controls” and
“Controlled” means, with respect to a particular item of information or intellectual property right, that the applicable Party owns or has a license to such item or right and has the ability to grant to the other Party access to and
a license or sublicense (as applicable) under such item or rights as provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 

  
 [***]
CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 1.4      “FDA” means
the United States Food and Drug Administration, and any successor agency thereto. 

1.5      “Field” means the diagnosis, prophylaxis or treatment of
any human disease. 
 1.6      “First Commercial Sale”
means the first sale of any Licensed Product to any Third Party following Regulatory Approval for such Licensed Product. 
 1.7      “GAAP” means the United States generally accepted accounting principles, consistently applied. 

1.8      “GM-CSF” means granulocyte-macrophage colony-stimulating
factor. 
 1.9      “GM-CSF Product” means: (a) any
chimeric antibody that is Controlled by LICR and that binds and/or modulates GM-CSF; and (b) any fragments or derivatives of each such antibody, including human or humanized antibodies that binds and/or modulates GM-CSF. 

1.10    “Information” means all tangible and intangible: (a) inventions
(whether patentable or not), know-how, data, software and algorithms; and (b) compounds, compositions of matter, complexes, cells, cell lines, assays, animal models and physical, biological or chemical materials. 

1.11    “Invention” has the meaning described in Section 4.1.

 1.12    “Joint Inventions” has the meaning described in
Section 4.1(c). 
 1.13    “KaloBios Inventions” has the
meaning described in Section 4.1(b). 
 1.14    “KaloBios
Patents” has the meaning described in Section 4.3(a). 

1.15    “License Fee Term” means the period beginning on the Effective Date
and expiring on the earlier of: (a) date on which KaloBios files for Regulatory Approval for any Licensed Product with the FDA or an equivalent regulatory agency outside the United States; or (b) the date the Agreement expires or is
terminated. 
 1.16    “Licensed Product” means any product or
method of treatment Controlled by KaloBios: (a) that is covered or claimed, or for which the manufacture or use in the Field is covered or claimed, by a Valid Claim; or (b) that was developed or made through the practice of the LICR
Know-How or LICR Patents, including but not limited to, human or humanized antibodies, or fragments thereof, that binds and/or modulates GM-CSF. 
 1.17    “LICR Inventions” has the meaning described in Section 4.1(a). 

1.18    “LICR Know-How” means all Information (including all Information
containing LICR Inventions) that LICR or any of its Affiliates Control as of the Effective Date, or at any time during the Term, that relate to composition of matter of, methods of making, or methods of using the GM-CSF Product. LICR Know-How
excludes any LICR Patents. 

  
 2 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 1.19      “LICR
Patents” means all Patents (including all Patents claiming LICR Inventions) that LICR or any of its Affiliates Control as of the Effective Date, or at any time during the Term, that claim or cover the composition of matter of, methods of
making, or methods of using the GM-CSF Product. At the Effective Date LICR patents are the international patent application W003068920 and the US patent application with serial number 10/365,123, see Exhibit B. For clarification, LICR Patents does
not include international patent application W003068924. 

1.20      “LICR Technology” means the LICR Know-How and LICR
Patents. 
 1.21      “Net Sales” means the gross amount
received by KaloBios or its Affiliates for the sale of any Licensed Product to any Third Party, less the following deductions (calculated in accordance with GAAP) to the extent actually incurred or allowed upon the sale of such Licensed Product:
(a) reasonable and customary trade and quantity discounts (including pursuant to governmental regulation or managed care organizations or governmental agencies); (b) government-mandated rebates; (c) allowances for returned or rejected
Licensed Product; (d) freight and insurance, if invoiced to the purchaser; (e) sales, value-added and other direct taxes on the sale of Licensed Product (other than income taxes); and (f) 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 organizations. For clarity, any Licensed Products used (but not sold for consideration) for promotional or advertising
purposes, or used for clinical or other research purposes, shall not be considered in determining Net Sales under this Agreement. 
 If any Licensed Product is sold as a combined product consisting of a combination of active elements, then, for purposes of determining royalty payments on such Licensed Product, Net Sales shall be
calculated by multiplying the Net Sales of the combined Licensed Product by the fraction A/(A+B), in which A is the net selling price of the stand-alone Licensed Product, and B is the sum of the net selling price of the other active elements sold
separately. If the net selling price for any stand-alone Licensed Product or active element cannot be determined, then Net Sales allocable to the Licensed Product in each such country shall be determined by mutual agreement of the Parties.

 1.22      “Patents” means all: (a) United States
patents, re-examinations, reissues, renewals, extensions and term restorations, inventors’ certificates and foreign counterparts thereof; (b) pending applications for United States patents, including all provisional applications,
continuations, continuations-in-part, continued prosecution, divisional and substitute applications; and (c) non-United States counterparts of subsections (a) and (b). 

1.23      “Regulatory Approval” means any and all approvals
(including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations or authorizations of any national, supra-national (e.g., the European Commission or the Council of the European Union),
regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, that are necessary for the manufacture, distribution, use or sale of a Licensed Product in a regulatory jurisdiction. (By way of
clarification, an IND filing does not constitute a regulatory approval). 

  
 3 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 1.24      “Royalty
Term” means, on a country-by-country basis with respect to a given Licensed Product, the period beginning on First Commercial Sale of such Licensed Product and ending on the later of the expiration of the last LICR Patent claiming or
covering the composition, manufacture or use of such Licensed Product in such country; or (b) the tenth (10th) anniversary of such First Commercial Sale. 
 1.25      “Sublicense Revenue” means all payments received by KaloBios from a sublicensee in consideration for a grant of a sublicense under
LICR’s Patent Rights and Know- How, including all upfront fees, license fees, milestone payments and royalties, but excluding all payments received as: (a) support for research and development activities; (b) a loan from such
sublicensee; (c) an equity investment by such sublicensee (but solely to the extent such investment is at the fair market value of KaloBios’ stock); or (d) reimbursement of patent expenses. 

1.26      “Term” has the meaning provided in Section 8.1.

 1.27      “Third Party” means any entity or person
other than KaloBios, LICR, or an Affiliate thereof. 

1.28      “Valid Claim” means any: (a) claim in an issued LICR
Patent that has not expired, been canceled, been declared invalid, or been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise; or (b) a claim under a pending application for a LICR Patent that has not been
abandoned, canceled, withdrawn from consideration, or finally determined to be unallowable in a decision from which no appeal can be taken. 
 2.         LICENSE GRANTS AND RELATED PROVISIONS 

2.1      License. LICR hereby grants KaloBios an exclusive, worldwide,
royalty-bearing, fully-sublicenseable license under the LICR Technology to research, develop, make, have made, use, import, offer for sale, sell and have sold Licensed Products in the Field. 

2.1.1    Sublicense. KaloBios shall notify LICR with fifteen (15) days of
executing any such sublicense and will identify each Sublicensee to LICR in writing by name and address. KaloBios shall also not grant a sublicense to a Third Party whose primary business is, to the best of KaloBios’ knowledge, the manufacture
and/or sale of tobacco containing products. All terms of any sublicense shall be consistent in all respects with the restrictions, exceptions and termination provisions of this Agreement. 

2.2      Exclusivity. During the term of the Agreement, LICR shall not engage,
directly or indirectly, on behalf of itself or any Third Party, in the development or commercialization of any molecule that binds and/or modulates GM-CSF (other than GM-CSF or fragments and/or modifications thereof, and fragments and modifications
of the GM-CSF receptor; and molecules that target, bind or modulate the GM-CSF receptor). 

2.3      No Other Right or License. No rights or licenses (either express or
implied) to any intellectual property rights or any proprietary technical information of LICR or KaloBios are granted by this Agreement, except as expressly provided in this Article 2. 

2.4      Diligence. KaloBios shall use commercially reasonable efforts, consistent
with normal business practices of the biotechnology industry, to research, develop and commercialize 

  
 4 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
Licensed Products. KaloBios’ efforts shall be based upon the existing business situation and be comparable with the efforts used by the biotechnology industry for similar products at a
comparable stage in development, and of a comparable value and commercial potential. 

3.         COMMERCIAL TERMS. 

3.1      License Fee. KaloBios shall pay LICR a quarterly license fee during the
License Fee Term. The first such licensee fee payment shall be due thirty (30) days after the Effective Date. Each subsequent license fee payment shall be due on the three (3) month anniversary of the preceding license fee payment during
the License Fee Term. [***] 
 3.2      Royalties and Sublicense Revenue.

 (a)      Subject to Section 3.2(d), KaloBios shall pay LICR during
the Royalty Term (i) royalties equal to three percent (3%) of the worldwide, aggregate, annual Net Sales of all Licensed Products described in Section 1.16(a); [***]. 

(b)      KaloBios shall pay LICR during the Royalty Term (i) royalties equal
to one and one-half percent (1.5%) of the worldwide, aggregate, annual Net Sales of all Licensed Products described in Section 1.16(b); [***]. 
 (c)      Within sixty (60) days after the end of the calendar quarter in which the First Commercial Sale in any country occurs, and on a quarterly basis
thereafter, KaloBios shall send to LICR: (i) a payment of all royalties and Sublicense Revenue owed to LICR pursuant to Section 3.2(a) and/or (b) for such year; and (ii) a report of Net Sales of Licensed Products and Sublicense
Revenue in sufficient detail on a country-by-country basis to permit confirmation of the accuracy of the payments made. 
 (d)      [***] 

3.3      Payments. All references to “dollars” or “$” means the
legal currency of the United States. All amounts due to LICR by KaloBios under this Agreement shall be paid in dollars by wire transfer in immediately available funds according to the details below. If any currency conversion shall be required in
connection with any payment or accounting of costs and expenses under this Agreement, such conversion shall be made by using the exchange rate for the purchase of dollars as published in The Wall Street Journal, Western Edition, on the last
business day prior to the date on which such payment is made. 
  

			
	 Beneficiary/Payee :
	  	 Ludwig Institute for Cancer Research

		
	 Account No:
	  	 [***]

		
	 With:
	  	 [***]

		
	 Clearing:
	  	 [***]

		
	 SWIFT:
	  	 [***]

		
	 IBAN:
	  	 [***]

  
 5 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 3.3.1    Late payments. If any
payment is not made on or before the due date specified herein, KaloBios will pay interest on the outstanding amount until paid in full if requested to do so by LICR. Interest will be charged at a rate equal to the “Intended Federal Funds
Rate” or equivalent plus 2 % as specified by the Federal Open Market Committee and currently published by the US Federal Reserve Board at www.federalreserve.gov/thmc/fundsrate.htm 

3.4      Withholding of Taxes. KaloBios may withhold from payments due to LICR
amounts for payment of any withholding tax that is required by law to be paid to any taxing authority with respect to such payments. KaloBios shall provide to LICR any cooperation or assistance on a reasonable basis as may be necessary to enable
LICR to claim exemption from such withholding taxes and to receive a full refund of such withholding tax or claim a foreign tax credit. 
 3.5      Records and Audit. During the term of this Agreement and for a period of seven (7) years thereafter, KaloBios shall keep complete and accurate records
pertaining to the development, manufacture, use, sale or other disposition of the Licensed Products, in sufficient detail to permit LICR to confirm the accuracy of all payments due hereunder and compliance with the diligence obligations set forth in
Section 2.4. LICR shall have the right to cause an independent, certified public accountant to audit such records to confirm the accuracy of KaloBios’ payments; provided, however, that such auditor shall not disclose
KaloBios’ confidential information to LICR, except to the extent such disclosure is necessary to verify the payments due under this Agreement. Such audits may be exercised once a year, upon notice to KaloBios and during normal business hours.
LICR shall bear the full cost of such audit unless such audit discloses a variance of more than ten percent (10%) from the amount of royalties previously paid for such year. In such case, KaloBios shall bear the full cost of such audit.
KaloBios shall remit any underpayment identified by such audit to LICR within thirty (30) days of the results of such audit. Any amounts overpaid by KaloBios shall be credited against the next payment owed to LICR under this Agreement. The
terms of this Section 3.5 shall survive any termination or expiration of this Agreement for a period of three (3) years. 
 4.         INTELLECTUAL PROPERTY. 

4.1      Inventions and Ownership. The inventorship of all inventions, information,
technology, or discoveries, (in each case whether or not patentable) that are developed, made or conceived during the Term in the course of the Parties’ performance under this Agreement and all related intellectual property (collectively,
“Inventions”), shall be determined in accordance with the rules of inventorship under United States patent laws, as set forth in further detail in Section 4.1(a)-(c) below. Each Party shall promptly notify the other party
in writing of the development, making or conception of each Invention. 

(a)      LICR shall own all Inventions developed, made or conceived during the Term
under this Agreement solely by its employees and contractors (“LICR Inventions”); 

(b)      KaloBios shall own all Inventions developed, made or conceived during the
Term under this Agreement solely by its employees and contractors (“KaloBios Inventions”); and 

  
 6 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 (c)      Subject to
Section 4.1(d), the Parties shall jointly own all Inventions and other Information developed, made or conceived during the Term under this Agreement jointly by employees or contractors of each Party (“Joint Inventions”),
including any Patents claiming such Joint Inventions (“Joint Patents”). Each Party may exploit its rights in such Joint Inventions and Joint Patents without the consent of, or accounting to, the other Party. 

(d)      Notwithstanding anything to the contrary, KaloBios shall solely own all
right, title and interest in and to all Inventions that are developed, made or conceived by KaloBios (either solely or jointly) through the practice of the license in Section 2.1 and that relate to: (i) any human antibody that binds and/or
modulates GM-CSF; or (ii) any fragments or derivatives of each such antibody. All such Inventions shall be deemed to be KaloBios Inventions. 
 4.2      Patent Marking.  KaloBios shall mark, and shall require all of its sublicensees to mark, all products manufactured, used or sold under the terms of
this Agreement, or their containers, in accordance with the applicable patent marking laws. 

4.3      Patent Prosecution and Maintenance. 

(a)      KaloBios shall be responsible for the preparation, filing, prosecution and
maintenance (including conducting or participating in interferences or oppositions) of all Patents claiming KaloBios Inventions (“KaloBios Patents”) at its sole expense. KaloBios shall consider in good faith the requests and
suggestions of LICR with respect to strategies for filing and prosecuting KaloBios Patents. KaloBios shall keep LICR informed of progress with regard thereto. 
 (b)      LICR shall be responsible for the preparation, filing, prosecution and maintenance (including conducting or participating in interferences and oppositions) of
all LICR Patents at its sole expense. LICR shall consider in good faith the requests and suggestions of KaloBios with respect to strategies for filing and prosecuting LICR Patents. LICR shall keep KaloBios informed of progress with regard thereto.
In the event that LICR desires to abandon any LICR Patent, or later declines responsibility for any of the foregoing activities with respect to any LICR Patent, LICR shall provide reasonable prior written notice to KaloBios of such intention to
abandon or decline responsibility (which notice shall, in any event, be given no later than thirty (30) days prior to the next deadline for any action that may be taken with respect to such LICR Patent with the U.S. Patent & Trademark
Office or any foreign patent office). KaloBios shall thereafter have the right, at its expense, to prepare, file, prosecute, and maintain such LICR Patent. It is LICR’s intent to file the current international patent filing W003068920 in Europe
only. If KaloBios would want to file in additional countries/regions it will have the right to do so at its own expense. 
 (c)      KaloBios shall be responsible for the preparation, filing, prosecution and maintenance (including conducting or participating in interferences or oppositions)
of all Joint Patents. KaloBios shall consult with LICR as to the preparation, filing, prosecution and maintenance of such Joint Patents reasonably prior to any deadline or action with the U.S. Patent & Trademark Office or any foreign patent
office, shall furnish to LICR copies of all relevant documents reasonably in advance of such consultation, and shall incorporate LICR’ s suggested 

  
 7 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
modifications to the extent reasonable. Each Party shall bear [***] of the expense of, the preparation, filing, prosecution and maintenance (including conducting or participating in interferences
or oppositions) of all Joint Patents. In the event that any Party desires to abandon any Joint Patent, or later declines responsibility for (or payment of) any of the foregoing activities with respect to any Joint Patent, such Party shall provide
reasonable prior written notice to the other Party of such intention to abandon or decline responsibility (which notice shall, in any event, be given no later than thirty (30) days prior to the next deadline for any action that may be taken
with respect to such Joint Patent with the U.S. Patent & Trademark Office or any foreign patent office). The other Party shall thereafter have the right, at its expense, to prepare, file, prosecute, and maintain such Joint Patent.

 4.4      Cooperation of the Parties.  At the reasonable
request of the responsible Party, the other Party agrees to cooperate fully in the preparation, filing, prosecution and maintenance of any Patents under this Agreement and in the obtaining and maintenance of any patent extensions, supplementary
protection certificates and the like with respect to any Patent claiming an Invention. Such cooperation includes, but is not limited to: 
 (a)      executing all papers and instruments, or requiring its employees or contractors to execute such papers and instruments, so as to effectuate the ownership of
Inventions set forth in Section 4.1, and Patents claiming such Inventions, and to enable the other Party to apply for and to prosecute patent applications in any country; and 

(b)      promptly informing the other Party of any matters coming to such
Party’s attention that may affect the preparation, filing, prosecution or maintenance of any such patent applications. 
 4.5      Third Party Infringement. 
 (a)      Notice.  Each Party shall promptly notify the other in writing (and provide any evidence) of any alleged or threatened infringement of the KaloBios
Patents, LICR Patents, or Joint Patents that may adversely impact the rights of the Parties hereunder. No Party shall not notify any such alleged infringer without the prior written consent of the other Party. 

(b)      Enforcement Action. 

(i)      If the Parties become aware of any alleged or threatened infringement of
the KaloBios Patents, KaloBios shall have the right, but not the obligation, to take appropriate action against any person or entity directly or contributorily infringing such KaloBios Patents. LICR shall cooperate reasonably in any such effort,
including if required to bring a legal action, the furnishing of a power of attorney and shall have the right to participate in such action at its own expense with its own counsel. Any recovery obtained by settlement or otherwise under this
Section 4.5(b)(i) shall be disbursed as follows: (x) each Party shall first recover any reasonable expenses incurred in such action (including attorney’s fees); and (y) KaloBios shall retain any remaining recovery. 

(ii)      If the Parties become aware of any alleged or threatened infringement of
the LICR Patents, LICR shall have the right, but not the obligation, to take appropriate action against any person or entity directly or contributorily infringing such LICR 

  
 8 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
Patents. KaloBios shall cooperate reasonably in any such effort, including if required to bring a legal action, the furnishing of a power of attorney and shall have the right to participate in
such action at its own expense with its own counsel. If LICR does not bring an action or proceeding against such alleged or threatened infringement within sixty (60) days of receiving notice pursuant to Section 4.5(a), then KaloBios shall
have the right, but not the obligation, to take appropriate action against any person or entity directly or contributorily infringing such LICR Patents. LICR shall cooperate reasonably in any such effort, including if required to bring a legal
action, the furnishing of a power of attorney and shall have the right to participate in such action at its own expense with its own counsel. Any recovery obtained by settlement or otherwise by LICR under this Section 4.5(b)(ii) shall be
disbursed as follows: (x) each Party shall first recover any reasonable expenses incurred in such action (including attorney’s fees); and (y) LICR shall retain any remaining recovery. Any recovery obtained by settlement or otherwise
by KaloBios under this Section 4.6(b)(ii) shall be disbursed as follows: (1) each Party shall first recover any reasonable expenses incurred in such action (including attorney’s fees); and (2) KaloBios shall retain any remaining
recovery. 
 (iii)      If the Parties become aware of any alleged or
threatened infringement of the Joint Patents, KaloBios shall have the primary right, but not the obligation, to take appropriate action against any person or entity directly or contributorily infringing such Joint Patents. LICR shall cooperate
reasonably in any such effort, including if required to bring a legal action, the furnishing of a power of attorney and shall have the right to participate in such action at its own expense with its own counsel. If KaloBios does not bring an action
or proceeding against such alleged or threatened infringement within sixty (60) days of receiving notice pursuant to Section 4.5(a), then LICR shall have the right, but not the obligation, to take appropriate action against any person or
entity directly or contributorily infringing such Joint Patents. KaloBios shall cooperate reasonably in any such effort, including if required to bring a legal action, the furnishing of a power of attorney and shall have the right to participate in
such action at its own expense with its own counsel. Any recovery obtained by settlement or otherwise under this Section 4.5(b)(iii) shall be disbursed as follows: (x) each Party shall first recover any reasonable expenses incurred in such
action (including attorney’s fees); and (y) each Party shall receive their pro-rata share based on expenses incurred of any remaining recovery. 
 4.6      Infringement of Third Party Patent Rights. 
 (a)      Joint Strategy.   If the use or sale of any Licensed Product becomes the subject of a claim of infringement of a patent or other proprietary
right anywhere in the world, the Parties shall promptly confer to discuss such claim. 

(b)      Defense. 

(i)      Unless the Parties otherwise agree, KaloBios shall assume the primary
responsibility for the conduct of the defense of any such claim relating primarily to the KaloBios Patents or Joint Patents. In any event, LICR shall have the right, but not the obligation, to participate in any such suit at its sole option and at
its own expense. Each Party shall reasonably cooperate with the Party conducting the defense of the claim including, if required to conduct such defense, furnishing a power of attorney. Neither Party shall enter into

  
 9 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
any settlement that affects the other Party’s rights or interests without such other Party’s written consent. 

(ii)      Unless the Parties otherwise agree, LICR shall assume the primary
responsibility for the conduct of the defense of any such claim relating primarily to the LICR Patents. In any event, KaloBios shall have the right, but not the obligation, to participate in any such suit at its sole option and at its own expense.
Each Party shall reasonably cooperate with the Party conducting the defense of the claim including, if required to conduct such defense, furnishing a power of attorney. Neither Party shall enter into any settlement that affects the other
Party’s rights or interests without such other Party’s written consent. 

5.         CONFIDENTIALITY. 

5.1      Confidential Information.   Except to the extent expressly
authorized by this Agreement or otherwise agreed in writing by the Parties, the Parties agree that, during the Term and for seven (7) years thereafter, the receiving Party shall keep confidential and shall not publish or otherwise disclose and
shall not use for any purpose other than as expressly provided for in this Agreement any Information furnished to it by, or obtained directly or indirectly from, the other Party pursuant to: (a) this Agreement; or (b) any nondisclosure or
confidentiality agreements entered into between the Parties before the Effective Date (collectively, “Confidential Information”). Except to the extent expressly authorized by this Agreement, each Party may use Confidential
Information of the other Party only to the extent required to accomplish the purposes of this Agreement. Each Party shall use at least the same standard of care as it uses to protect proprietary or confidential information of its own to ensure that
its employees, agents, consultants and other representatives do not disclose or make any unauthorized use of the Confidential Information, but in no event less than reasonable care. Each Party will promptly notify the other upon discovery of any
unauthorized use or disclosure of any Confidential Information. 

5.2      Exceptions.    The obligations of confidentiality and
non-use of Confidential Information set forth in Section 5.1 above shall not apply to any information that, as shown by competent written proof: 
 (a)      is now, or hereafter becomes, through no act or failure to act on the part of the receiving Party in breach hereof, generally known or available; 

(b)      is known by the receiving Party at the time of receiving such information;

 (c)      is hereafter furnished to the receiving Party by a Third
Party, as a matter of right and without restriction on disclosure; or 

(d)      is the subject of a prior, express, written permission to disclose
provided by the disclosing Party. 
 5.3      Authorized
Disclosure.    Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the following instances: 

  
 10 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 (a)      to prepare applicable
regulatory filings or to seek patent protection; 
 (b)      to prosecute
or defend litigation as permitted by this Agreement; 
 (c)      to comply
with the rules of a securities exchange; 
 (d)      to comply with
applicable court orders or governmental regulations, including those of the U.S. Internal Revenue Service; and 

(e)      to disclose such Confidential Information to a Third Party that is a
bona fide actual or potential collaborator, manufacturer, commercial sublicensee, consultant, or development or sales partner, but only to the extent directly relevant to the development or commercialization of Licensed Products,
provided, however, that prior to any such disclosure, such Third Party is bound by written obligations of confidentiality at least as restrictive as those contained in this Article 5. 

Notwithstanding the foregoing, in the event that a Party is required to make a disclosure of the other Party’s Confidential
Information pursuant to Section 5.3, it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use commercially reasonable efforts to secure confidential treatment of such information. The
Parties will consult with each other in determining which of the provisions of this Agreement are to be redacted in any filings made by the Parties with the United States Securities and Exchange Commission or as otherwise required by law.

 5.4      Return of Confidential Information.    Upon
expiration or termination of this Agreement, each Party shall use commercially reasonable efforts to return or destroy all Confidential Information received by it from the other Party. In such event, each Party shall be allowed to keep one
(1) archival copy of any Confidential Information of the other Party’s Confidential Information for record-keeping purposes only. 
 5.5      Publicity.  KaloBios shall be entitled to issue a press release, as approved by both Parties and attached hereto as Exhibit A, upon the execution of
this Agreement. KaloBios may issue any subsequent press releases only upon written approval by LICR, such approval not to be unreasonably withheld. Such approval shall be given within seven (7) business days of KaloBios’ submission to
LICR. 
 6.         REPRESENTATIONS AND
WARRANTIES. 
 6.1      Mutual
Representations and Warranties.   Each Party represents and warrants to the other Party that: 
 (a)      it is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate or other power and
authority to enter into this Agreement and to carry out the provisions hereof; 

(b)      it is duly authorized to execute and deliver this Agreement and to perform
its obligations hereunder, and the person or persons executing this Agreement on its behalf have been duly authorized to do so by all requisite corporate or partnership action; 

  
 11 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 (c)      (i) this Agreement is legally
binding upon it and enforceable in accordance with its terms, and (ii) the execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or
by which it may be bound, or violate any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it; 

(d)      it has not, and will not during the Term, grant any right to any Third
Party that would conflict with the rights granted to the other Party hereunder; and 

(e)      (i) to its actual knowledge, it has sufficient legal and/or beneficial
title under its intellectual property rights necessary for the purposes contemplated under this Agreement and to grant the rights and licenses such Party purports to grant the other Party pursuant to this Agreement; and (ii) all of its
employees and consultants have executed agreements that require assignment to it of all inventions made during the course of and as a result of their association with it and that obligate such individual to maintain as confidential any information
that is owned or Controlled by it, or that is Confidential Information provided by the other Party. 

7.         INDEMNIFICATION. 

7.1      Indemnification by LICR.   LICR shall indemnify, hold
harmless and defend KaloBios, its Affiliates and their respective employees and agents (each, a “KaloBios Indemnitee”) against any and all losses, damages, liabilities, judgments, fines, amounts paid in settlement, expenses and
costs of defense (including reasonable attorneys’ fees and witness fees) (collectively “Losses”) resulting from any claim, action or proceeding brought or initiated by a Third Party (each a “Claim”) to the
extent that such Claim arises out of: (a) the breach or alleged breach of any obligation, representation or warranty of LICR under this Agreement; or (b) the negligence or willful misconduct of any LICR Indemnitee; provided that
(y) the KaloBios Indemnitees comply with the procedure set forth in Section 7.3; and (z) such indemnity shall not apply to the extent such Claim arises from (i) the breach or alleged breach of any obligation, representation or
warranty of KaloBios under this Agreement; or (ii) the negligence or willful misconduct of any KaloBios Indemnitee. 
 7.2      Indemnification by KaloBios.   KaloBios shall indemnify, hold harmless and defend LICR, its Affiliates, and their respective employees and
agents (each, a “LICR Indemnitee”) against any and all Losses resulting from any Claim (including any product liability) to the extent that such Claim arises out of: (a) the breach or alleged breach of any obligation,
representation or warranty of KaloBios under this Agreement; or (b) the negligence or willful misconduct of any KaloBios Indemnitee; provided that (y) the LICR Indemnitees comply with the procedure set forth in Section 7.3; and
(z) such indemnity shall not apply to the extent such Claim arises from (i) the breach or alleged breach of any obligation, representation or warranty of LICR under this Agreement; or (ii) the negligence or willful misconduct of any
LICR Indemnitee. 
 7.3      Indemnification Procedure.   A
Party entitled to be indemnified pursuant to this Article 7 (the “Indemnified Party”) shall give prompt notice of the Claim to the other Party (the “Indemnifying Party”) and the Indemnifying Party shall defend
against such Claim with the 

  
 12 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
reasonable cooperation of the Indemnified Party; provided that the Indemnifying Party will not settle any such Claim for any consideration other than monetary damages, or in any manner
that would adversely affect the Indemnified Party, without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed. The Indemnified Party shall have the right to be present in
person or through counsel at substantive legal proceedings relating to the Claim giving rise to the Indemnified Party’s right to indemnification hereunder. In the event that the Parties cannot agree as to the application of Sections 7.1 and 7.2
to any Claim, the Parties may conduct separate defenses of such Claim. In such case, each Party further reserves the right to claim indemnity from the other in accordance with Sections 7.1 and 7.2 upon resolution of such underlying Claim.

 7.4      Insurance.   KaloBios shall maintain insurance
with limits, which are consistent with industry standards to cover KaloBios’ activities in connection with this Agreement. 

8.         TERM AND
TERMINATION. 

8.1      Term.    The term of this Agreement (the
“Term”) shall commence on the Effective Date and continue until the date the Royalty Term expires, unless earlier terminated pursuant to Section 8.2. 

8.2      Termination 

(a)      By KaloBios.   KaloBios shall have the right to terminate
this Agreement for any reason or for no reason at any time upon ninety (90) days prior written notice to LICR 
 (b)      For Cause.   Each Party shall have the right to terminate this Agreement upon written notice to the other Party if, after receiving written
notice of a material breach of this Agreement, the breaching Party fails to cure such breach within sixty (60) days from the date of such notice. 
 8.3      Effect of Termination. 
 (a)      Expiration or termination of this Agreement shall not affect any accrued rights or obligations of either Party. Such termination or expiration shall not
relieve either Party from obligations that are expressly indicated to survive termination or expiration of the Agreement. Upon any such expiration or termination, each Party shall return to the other Party any Confidential Information provided to it
by such Party under this Agreement; except for one (1) copy of any documentation of such Confidential Information, which shall be kept solely for legal archival purposes. 

(b)      If LICR terminates this Agreement pursuant to Section 8.2(b), or
KaloBios terminates this Agreement pursuant to Section 8.2(a), then: 

(i)      the license granted under Section 2.1 shall automatically terminate
and revert to LICR; and 
 (ii)      the Parties shall (upon LICR’s
written request) negotiate in good faith the commercially reasonable terms under which KaloBios would transfer to LICR all of the 

  
 13 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
data, documentation, regulatory filings and registrations relating to any Licensed Products generated by KaloBios, and all of its rights therein. 

8.4      Survival.  The provisions of Articles 1, 4, 5, 7, and 10; and
Sections 3.5, 8.4, and 8.5, of this Agreement shall survive expiration or termination of this Agreement for any reason (subject to any subsequent dates of termination referred to in such individual Articles and Sections). 

8.5      Rights in Bankruptcy.  All rights and licenses granted under or
pursuant to this Agreement by LICR or KaloBios are, and will otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses to “intellectual property” as defined under Section 101 of the U.S.
Bankruptcy Code. The Parties agree that the Parties, as licensees of such rights under this Agreement, will retain and may fully exercise all of their rights and elections under the U.S. Bankruptcy Code. The Parties further agree that, in the event
of the commencement of a bankruptcy proceeding by or against either Party under the U.S. Bankruptcy Code, the Party hereto that is not a Party to such proceeding will be entitled to a complete duplicate of (or complete access to, as appropriate) any
such intellectual property and all embodiments of such intellectual property, and same, if not already in their possession, will be promptly delivered to them (a) upon any such commencement of a bankruptcy proceeding upon their written request
therefor, unless the Party subject to such proceeding elects to continue to perform all of its obligations under this Agreement, or (b) if not delivered under (c) above, following the rejection of this Agreement by or on behalf of the
Party subject to such proceeding upon written request therefor by the non-subject Party. 

9.         DISPUTE RESOLUTION.

 9.1      Disputes.  The Parties recognize that disputes as
to certain matters may from time to time arise which relate to either Party’s rights and obligations hereunder. It is the objective of the Parties to establish procedures to facilitate the resolution of such disputes in an expedient manner by
mutual cooperation and without resort to litigation. To accomplish this objective, the Parties agree to follow the procedures set forth in Section 9.2, if and when such a dispute arises between the Parties. 

9.2      Dispute Resolution Procedures.   If any dispute, claim or
controversy of any nature arising out of or relating to this Agreement, including any action or claim based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance and/or breach of this Agreement
(each, a “Dispute”), arises between the Parties and the Parties cannot resolve such Dispute within thirty (30) days of a written request by either Party to the other Party, the Parties agree to refer the Dispute either to:
(a) the chief scientific officer (or equivalent) of LICR and the chief scientific officer (or equivalent) of KaloBios for resolution (if such Dispute relates to scientific issues); or (b) to the head of business development (or equivalent)
of LICR and the head of .business development (or equivalent) of KaloBios for resolution (if such Dispute does not relate to scientific issues). If such officers of the Parties cannot resolve such Dispute within an additional thirty (30) days,
then such-Dispute shall be referred to the chief executive officer (or equivalent) of LICR and the chief executive officer (or equivalent) of KaloBios for resolution. After an additional thirty (30) days, if such officers have not succeeded in
negotiating a resolution of the Dispute, then either Party may at any time 

  
 14 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
thereafter seek to resolve such Dispute by arbitration or through a court of competent jurisdiction. Notwithstanding anything to the contrary, if any Dispute arises from either Party’s
rights or obligations under Article 4 (Intellectual Property) or Article 5 (Confidentiality), then a Party may seek equitable relief from a court of competent jurisdiction without needing to resort to the dispute resolution mechanism described above
in this Section 9.2. 

10.        MISCELLANEOUS. 

10.1      The LICR Technology is provided on an “as is” basis and LICR
makes no representations or warranties, expressed or implied, with respect to the LICR Technology other than what is stated elsewhere in this Agreement. Subject to the foregoing and by way of example but not of limitation, LICR makes no
representations or warranties (i) of commercial utility, (ii) of merchantability or fitness for a particular purpose, or (iii) that the use of the LICR Technology will not infringe any patent, copyright, trademark or other proprietary
or property rights of others. 
 10.2      Governing
Law.   This Agreement is made in accordance with and shall be governed and construed under the laws of the State of California, excluding its choice of law principles that require applying a different law. The United Nations
Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 

10.3      No Agency.  The Parties’ relationship, as established by
this Agreement, is solely that of independent contractors. This Agreement does not create any partnership, joint venture or similar business relationship between the Parties, except as expressly set forth herein. No Party is a legal representative
of the other Party, and no Party can assume or create any obligation, representation, warranty or guarantee, express or implied, on behalf of the other Party for any purpose whatsoever. 

10.4      Assignment.   Except as expressly provided hereunder, no
Party may assign or transfer this Agreement without the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed); provided, however, that either Party may assign this Agreement and its rights and
obligations hereunder without the other Party’s consent to an Affiliate or in connection with the transfer or sale to a Third Party of all or substantially all of the business of such Party to which this Agreement relates, whether by merger,
sale of stock, sale of assets or otherwise. In the event of such transaction, however, intellectual property rights of the acquiring party to such transaction (if other than one (1) of the Parties to this Agreement) shall not be included in the
technology licensed to the other Party hereunder. The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any purported assignment not in
accordance with this Section 10.4 shall be null and void. 

10.5      Amendment.   This Agreement may only be modified or
supplemented in a writing expressly stated for such purpose and signed by duly authorized representatives of the Parties to this Agreement. 
 10.6      Notices.  Any notice or other communication required or permitted to be given to either Party hereto shall be in writing unless otherwise specified
and shall be deemed to have 

  
 15 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
been properly given and effective: (a) on the date of delivery if delivered in person; (b) the date of electronically confirmed facsimile transmission if during the recipient’s
normal business hours, or otherwise on the next business day of the recipient; (c) one (1) business day after sending via next business day delivery by a nationally recognized overnight courier service; or (d) three (3) days
after mailing by registered or certified mail, postage prepaid and return receipt requested, to the other Party at the following address or facsimile number. 
 If to KaloBios: 
 KaloBios Therapeutics, Inc. 

3427 Hillview Avenue 
 Palo Alto, CA 94304 
 Facsimile: (650) 843-1896 

Attention: Chief Executive Officer 

If to LICR: 
 Ludwig Institute for Cancer Research 
 605 Third Avenue

 New York, New York 10158 

Attn: Edward A. McDermott, Jr. 
 Fax: +1-212-450-1555 
 with a copy to: 

Ludwig Institute for Cancer Research 605 Third Avenue 

New York, New York 10158 
 Attn: Lloyd J. Old 
 Fax: +1-212-450-1515 

and 
 Ludwig Institute for Cancer Research Postfach 
 8024 Zurich

 Switzerland 
 Attn: A. Munro Neville 
 Fax: +41-1-267 62 00 

Either Party may change its address for communications by a notice to the other Party in accordance with this Section 10.6.

 10.7    Force Majeure.  Any delay in performance by any Party under this
Agreement shall not be considered a breach of this Agreement if and to the extent caused by occurrences beyond the reasonable control of the Party affected, including any acts of Nature, embargoes, governmental restrictions, strikes or other
concerted acts of workers, fire, flood, earthquake, explosion, riots, wars, civil disorder, terrorism, rebellion or sabotage. The Party suffering such occurrence shall immediately notify the other Party and any time for performance hereunder shall
be extended by the actual time of delay caused by the occurrence. Such extension shall be 

  
 16 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 
continued so long as the occurrence continues and the nonperforming Party takes reasonable efforts to alleviate the effects of the occurrence. 

10.8        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 a single instrument. 
 10.9        No Third Party Rights or Obligations.  No provision of this Agreement shall be deemed or construed in any way to result in the creation
of any rights or obligation in any Third Party. 

10.10      Severability.  If any term, condition or provision of this
Agreement is held to be unenforceable for any reason, it shall, if possible, be interpreted to achieve the intent of the Parties to this Agreement to the extent possible rather than voided. In any event, all other terms, conditions and provision of
this Agreement shall be deemed valid and enforceable to the full extent. 

10.11      Compliance with Laws.  Each Party shall carry out its
activities pursuant to this Agreement in compliance with all applicable supranational, national, state, provincial and other local laws, rules, regulations and guidelines. 

10.12      Cumulative Rights.    The rights, powers and remedies
hereunder shall be in addition to, and not in limitation of, all rights, powers and remedies provided at law or in equity, or under any other agreement between the Parties. All of such rights, powers and remedies shall be cumulative, and may be
exercised successively or cumulatively. 

10.13      Waiver.  The failure of a Party to insist upon strict
performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any
other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party. 

10.14      Entire Agreement.  This Agreement and Exhibit A are a final
expression of the Parties’ agreement and a complete and exclusive statement with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and communications, whether oral, written or otherwise, concerning
any and all matters contained herein, including (a) the Materials Transfer Agreement dated March 19, 2004 between the Parties; and (b) all nondisclosure or confidentiality agreements entered into between the Parties before the
Effective Date. 
 10.15      Construction.  No rule of strict
construction will be applied in the interpretation or construction of this Agreement. The Section and Article headings are included in this Agreement merely for convenience of reference, and they are not to be considered part of this Agreement or
used in the interpretation of this Agreement. When used in this Agreement, “including” means “including without limitation.” This Agreement is in the English language only, which language shall be controlling in all respects, and
all versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. 

  
 17 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 [Signature page follows.] 

  
 18 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 IN WITNESS
WHEREOF, both KaloBios and LICR have executed this Agreement as of the Effective Date by their respective duly authorized representatives. 

 

									
	KALOBIOS THERAPEUTICS, INC.	 		 	LUDWIG INSTITUTE FOR CANCER RESEARCH
					
	By    	 	 /s/ Mark R. Alfenito
	 		 	By:	  	 /s/ Lloyd J. Old

					
	Name:	 	 Mark R. Alfenito
	 		 	Name:	  	Lloyd J. Old, M.D.
					
	Title:	 	 President
	 		 	Title: 	  	Chief Executive Officer
					
		 		 		 	By:	  	 /s/ Edward A. McDermott, Jr.

					
		 		 		 	Name:	  	Edward A. McDermott, Jr.
					
		 		 		 	Title: 	  	President

  
 [***]
CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 EXHIBIT A 

PRESS RELEASE 
 [NOTE: TO BE PROVIDED BY THE PARTIES.] 

  
 [***]
CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 EXHIBIT B 

LICR PATENTS 
  

											
	 LICR REF

 
	  	FILING DATE	  	SER. NO.	  	PUBL. DATE	  	PUBL. NO.	  	TITLE
	    	  	 	  	 	  	 	  	 	  	 
	LUD 5729.1-US	  	12-Feb-03	  	10/365,123	  	18-Mar-04	  	UA20040053365	  	
HUMANIZED
 GM-CSF

ANTIBODIES
  

	LUD 5729.1-PCT	  	12-Feb-03	  	PCTUS0304185	  	21-Aug-03	  	W003068920	  	
HUMANIZED
 GM-CSF

ANTIBODIES
  

  
 [***]
CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION.License Agreement

 Exhibit 10.14 
 CONFIDENTIAL TREATMENT REQUESTED 
 LICENSE AGREEMENT 

This License Agreement (the “Agreement”), is made effective as of April 7, 2006 (the “Effective
Date”), by and between the Ludwig Institute for Cancer Research, a Swiss not-for-profit corporation with its registered office at Stadelhoferstrasse 22, 8001 Zurich, Switzerland and having an office at 605 Third Avenue, 33rd Floor,
New York, NY 10158, USA (“LICR”), and KaloBios Pharmaceuticals, Inc., a Delaware corporation (“KaloBios”), having an address at 3427 Hillview Avenue, Suite 200, Palo Alto, CA 94304, USA. KaloBios and LICR may be
referred to herein individually as a “Party” and collectively as “Parties.” 
 RECITALS

 WHEREAS, LICR and its Academic Collaborators have developed certain Patents related
to EphA3 and LICR has an exclusive world wide license from its Academic Collaborators to commercialize their interests in those Patents and Improvements; and 
 WHEREAS, KaloBios desires to exclusively in-license such Patents and Improvements from LICR; and 

WHEREAS, KaloBios wishes to humaneer, optimize and develop a clinical lead antibody, which may also
require the provision by KaloBios of other technologies like drug conjugates; and 

WHEREAS, LICR and KaloBios intend to develop a Joint Research Program to be funded by KaloBios and
public granting organizations to support research at LICR and its Academic Collaborators; and 

WHEREAS, KaloBios will fund preclinical and clinical development; and 

WHEREAS, KaloBios will commercialize antibody products and related methods; and 

WHEREAS, the Parties have agreed upon the terms of the license for such Patents and Improvements, as
set forth in this Agreement. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing premises and the covenants and
obligations set forth in this Agreement, the Parties hereby agree as follows: 

1.        DEFINITIONS.  Capitalized terms used in
this Agreement (other than the headings of the Sections or Articles), whether used in the singular or plural, shall have the following meaning set forth in this Article 1, or, if not listed in this Article 1, the meaning as designated in the text of
this Agreement. 
  

	1.1	 “Academic Collaborators” means the [***] 

  
 1. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	1.2	 “Affiliate” means, with respect to a particular Party, a person, corporation, partnership, or other entity that controls, is
controlled by or is under common control with such Party. For the purposes of this Section 1.2, the word “control” (including, with correlative meaning, the terms “controlled by” or “under common control with”)
means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of at least fifty percent (50%) of the voting
stock of such entity, or by contract or otherwise. 

  

	1.3	 “Confidential Information” has the meaning described in Section 5.1. 

 

	1.4	 “Control”, “Controls” and “Controlled” means, with respect to a particular item of
information or intellectual property right, that the applicable Party owns or has a license to such item or right and has the ability to grant to the other Party access to and a license or sublicense (as applicable) under such item or rights as
provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 

  

	1.5	 “FDA” means the United States Food and Drug Administration, and any successor agency thereto. 

 

	1.6	 “Field” means all human diagnostic, therapeutic and prophylactic applications, but only where the Licensed Product in that
application operates by binding to or modulating EphA3. 

  

	1.7	 “First Commercial Sale” means the first sale of any Licensed Product to any Third Party following Regulatory Approval for
such Licensed Product. 

  

	1.8	 “GAAP” means the United States generally accepted accounting principles, consistently applied. 

 

	1.9	 “EphA3” means EphA3 receptor/ligand proteins. 

 

	1.10	 “Exclusive License” shall mean an exclusive license to the LICR Technology subject to the retained rights of LICR and the
Academic Collaborators set out in Section 2.2. 

  

	1.11	 “Exclusive Option Period” means eighteen (18) months from the Effective Date. LICR will not license to anyone any
rights to the Patents or Improvements in the Field during the Exclusive Option Period. 

  

	1.12	 “Improvements” means all developments, improvements or alterations to the Patents under the Control of LICR (whether made
before or after the date of this Agreement), made or contributed to by employees of the relevant Academic Collaborator who contributed to the relevant Patent and which do not satisfy the requirements of a grant of a separate patent in the United
States. 

  

	1.13	 “Information” means all tangible and intangible: (a) inventions (whether patentable or not), know-how, data, software
and algorithms; and (b) compounds, compositions of matter, complexes, cells, cell lines, assays, animal models and physical, biological or chemical materials. 

  
 2. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	1.14	 “Joint Program Inventions” means all inventions that arise out of the Joint Research Program and that are relevant to or
form part of what is required to practice or exploit Licensed Products. 

  

	1.15	 “Joint Program Patents” means any patents claiming Joint Program Inventions. 

 

	1.16	 “Joint Research Program” means the collaborative research project described in Exhibit B to be conducted by the by the
Parties and the Academic Collaborators pursuant to a separate agreement to be entered into as soon as is practicable after the execution of this Agreement . 

 

	1.17	 “Licensed Product” means any product or method of treatment Controlled by KaloBios through this Agreement: that was
developed or made through the practice of the LICR Technology including but not limited to, human or humaneered antibodies, fragments or conjugates thereof, that bind and/or modulate EphA3 through extracellular binding. 

 

	1.18	 “LICR Technology” means the Patents and Improvements and Joint Program Patents (if any). 

 

	1.19	 “Major Market Country” means the United States, the United Kingdom, France, Germany, Italy, Spain, and Japan.

  

	1.20	 “Net Sales Revenue” means the gross amount received by KaloBios or its Affiliates for the sale of any Licensed Product to
any Third Party, less the following deductions (calculated in accordance with GAAP) to the extent actually incurred or allowed upon the sale of such Licensed Product: (a) reasonable and customary trade and quantity discounts (including pursuant
to governmental regulation or managed care organizations or governmental agencies); (b) government-mandated rebates; (c) allowances for returned or rejected Licensed Product; (d) freight and insurance, if invoiced to the purchaser;
(e) sales, value-added and other direct taxes on the sale of Licensed Product (other than income taxes); and (f) 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 organizations. For clarity, any Licensed Products used (but not sold for consideration) for promotional or advertising purposes, or used for clinical or other research purposes, shall not be
considered in determining Net Sales under this Agreement. 

 If any Licensed Product is sold
as a combined product consisting of a combination of active elements, then, for purposes of determining royalty payments on such Licensed Product, Net Sales Revenue shall be calculated by multiplying the Net Sales Revenue of the combined Licensed
Product by the fraction A/(A+B), in which A is the net selling price of the stand-alone Licensed Product, and B is the sum of the net selling price of the other active elements sold separately. If the net selling price for any stand-alone Licensed
Product or active element cannot be determined, then Net Sales allocable to the Licensed Product in each such country shall be determined by mutual agreement of the Parties, provided that such agreement shall not be unreasonably withheld and the
fraction A/(A+B) shall not be less than one-quarter (1/4). 

  
 3. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	1.21	 “Patents” means the Patents detailed in Exhibit A. 

 

	1.22	 “Regulatory Approval” means any and all approvals (including supplements, amendments, pre- and post-approvals, pricing and
reimbursement approvals), licenses, registrations or authorizations of any national, supra-national (e.g., the European Commission or the Council of the European Union), regional, state or local regulatory agency, department, bureau, commission,
council or other governmental entity, that are necessary for the manufacture, distribution, use or sale of a Licensed Product in a regulatory jurisdiction. (By way of clarification, an IND filing does not constitute a regulatory approval).

  

	1.23	 “Royalty Term” means, on a country-by-country basis with respect to a given Licensed Product, the period beginning on First
Commercial Sale of such Licensed Product and ending on the later of the expiration of the last Patent claiming or covering the composition, manufacture or use of such Licensed Product in such country; or (b) the tenth (10th) anniversary of such First Commercial Sale.

  

	1.24	 “Sublicense Revenue” means all payments received by KaloBios from a sublicensee in consideration for a grant of a sublicense
under the LICR Technology, including all upfront fees, license fees, and milestone payments, but excluding all payments received as: (a) support for research and development activities; (b) a loan from such sublicensee; (c) an equity
investment by such sublicensee (but solely to the extent such investment is at the fair market value of KaloBios’ stock); or (d) reimbursement of patent expenses. 

 

	1.25	 “Term” has the meaning provided in Section 8.1. 

 

	1.26	 “Third Party” means any entity or person other than KaloBios, LICR, or an Affiliate thereof. 

 

	1.27	 “Valid Claim” means any: (a) claim in an issued Patent that has not expired, been canceled, been declared invalid, or
been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise; or (b) a claim under a pending application for a Patent or Joint Project Patent that has not been abandoned, canceled, withdrawn from consideration, or
finally determined to be unallowable in a decision from which no appeal can be taken. 

  

	2.	 OPTION FOR GRANTING LICENSE AND RELATED
PROVISIONS 

  

	2.1	 Option.  LICR hereby grants KaloBios an exclusive eighteen (18) month option (the “Option”) for an exclusive,
worldwide, royalty-bearing, fully-sublicensable license under the LICR Technology, to research, develop, make, have made, use, import, offer for sale, sell and have sold Licensed Products in the Field. 

 

	 	(a)	 Exercise of Option.   KaloBios may exercise the Option at any time during the Exclusive Option Period by written notification
to LICR (the “Exercise Notice”). The giving of an Exercise Notice will constitute an irrevocable and unconditional exercise of the Option and upon the exercise of the Option and receipt of the License

  
 4. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	 
Fee by LICR, KaloBios will be granted a license to the LICR Technology on the terms set out in this Agreement. If the Option has not been exercised prior to the end of the Exclusive Option Period
the Option will automatically lapse, unless extended by mutual written agreement of the Parties. 

  

	 	(b)	 Sublicense.  KaloBios shall notify LICR with fifteen (15) days of executing any sublicense and will identify each sublicensee
to LICR in writing by name and address. KaloBios shall also not grant a sublicense to a Third Party whose primary business is, to the best of KaloBios’ knowledge, the manufacture and/or sale of tobacco containing products. All terms of any
sublicense shall be consistent in all respects with the restrictions, exceptions and termination provisions of this Agreement. 

  

	2.2	 Reservation of Rights.  Notwithstanding any other provision in this Agreement, LICR and its Academic Collaborators reserve the
right to undertake further research in relation to the LICR technology and to authorise their research collaborators to do so. 

  

	2.3	 No Other Right or License.  No rights or licenses (either express or implied) to any intellectual property rights or any
proprietary technical information of LICR, its Academic Collaborators or KaloBios are granted by this Agreement, except as expressly provided in this Article 2. 

 

	2.4	 Diligence.  KaloBios shall use commercially reasonable efforts, consistent with normal business practices of the biotechnology
industry, to research, develop and commercialize Licensed Products. KaloBios’ efforts shall be based upon the existing business situation and be comparable with the efforts used by the biotechnology industry for similar products at a comparable
stage in development, and of a comparable value and commercial potential. 

  

	3.	 COMMERCIAL TERMS. 

 

	3.1	 Exclusive Option Fee.  KaloBios shall pay LICR an Exclusive Option Fee of USD [***] payable after the Effective Date, and within
twenty-eight (28) days from receipt of invoice from LICR. The payment of the Exclusive Option Fee will hold open the Exclusive Option for eighteen (18) months from the Effective Date. 

 

	3.2	 License Fee.  KaloBios shall pay to LICR at the time KaloBios serves an Exercise Notice on LICR a one time payment of USD $50,000.

  

	3.3	 Milestones.  KaloBios shall pay to LICR the following milestone payments within twenty eight (28) days after invoicing for the
first occurrence of each of the events specified below: 

  

	 	(a)	 [***] upon initiation of a first Phase I Clinical Trial. 

 

	 	(b)	 [***] upon initiation of a first Phase II Clinical Trial. 

  
 5. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	(c)	 [***] upon initiation of a first Phase III Clinical Trial 

 

	 	(d)	 [***] upon the first to occur of either; 1) receipt of all approvals necessary to market a Licensed Product in the United States; or 2) all
approvals from any foreign regulatory authority necessary to market a Licensed Product in any Major Market Country outside of the United States. 

  

	3.4	 Reporting, Royalties and Sublicense Revenue. 

 

	 	(a)	 Subject to Section 3.4(c), KaloBios shall pay LICR during the Royalty Term (i) royalties equal to three percent (3%) of the worldwide,
aggregate, annual Net Sales Revenue; and (ii) [***] of all Sublicense Revenue received by KaloBios during the Royalty Term. 

  

	 	(b)	 Within sixty (60) days after the end of the calendar quarter in which the First Commercial Sale in any country occurs, and on a quarterly basis
thereafter, KaloBios shall send to LICR: (i) a payment of all royalties and Sublicense Revenue owed to LICR pursuant to Section 3.4(a) for such year; and (ii) a report of Net Sales of Licensed Products and Sublicense Revenue in
sufficient detail on a country-by-country basis to permit confirmation of the accuracy of the payments made. 

  

	 	(c)	 [***] 

  

	3.5	 Payments.  All references to “USD” mean the legal currency of the United States and all references to “AUD”
mean the legal currency of Australia. Any references to “dollars” shall mean the corresponding legal currency that is being referred to. If any currency conversion shall be required in connection with any payment or accounting of costs and
expenses under this Agreement, such conversion shall be made by using the exchange rate for the purchase of such currency as published in The Wall Street Journal, Western Edition, on the last business day prior to the date on which such payment is
made. 

 Amounts due to LICR by KaloBios under this Agreement shall be paid in USD by wire
transfer in immediately available funds according to the details below. 
  

			
	Beneficiary/Payee:	    	Ludwig Institute for Cancer Research
		
	Account No:	    	 [***]

		
	With:	    	 [***]

		
	Clearing:	    	 [***]

		
	SWIFT:	    	 [***]

		
	IBAN:	    	 [***]

  
 6. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	3.6	 Late payments.  If any payment is not made on or before the due date specified herein, KaloBios will pay interest on the
outstanding amount until paid in full if requested to do so by LICR. Interest will be charged at a rate equal to the “Intended Federal Funds Rate” or equivalent plus 2 % as specified by the Federal Open Market Committee and currently
published by the US Federal Reserve Board at www.federalreserve.gov/fomc/fundsrate.htm. 

  

	3.7	 Withholding of Taxes.  KaloBios may withhold from payments due to LICR amounts for payment of any withholding tax that is required
by law to be paid to any taxing authority with respect to such payments. KaloBios shall provide to LICR any cooperation or assistance on a reasonable basis as may be necessary to enable LICR to claim exemption from such withholding taxes and to
receive a full refund of such withholding tax or claim a foreign tax credit. 

  

	3.8	 Records and Audit.  During the term of this Agreement and for a period of seven (7) years thereafter, KaloBios shall keep
complete and accurate records pertaining to the development, manufacture, use, sale or other disposition of the Licensed Products, in sufficient detail to permit LICR to confirm the accuracy of all payments due hereunder and compliance with the
diligence obligations set forth in Section 2.4. LICR shall have the right to cause an independent, certified public accountant to audit such records to confirm the accuracy of KaloBios’ payments; provided, however, that such auditor shall
not disclose KaloBios’ confidential information to LICR, except to the extent such disclosure is necessary to verify the payments due under this Agreement. Such audits may be exercised once a year, upon notice to KaloBios and during normal
business hours. LICR shall bear the full cost of such audit unless such audit discloses a variance of more than ten percent (10%) from the amount of royalties previously paid for such year. In such case, KaloBios shall bear the full cost of
such audit. KaloBios shall remit any underpayment identified by such audit to LICR within thirty (30) days of the results of such audit. Any amounts overpaid by KaloBios shall be credited against the next payment owed to LICR under this
Agreement. The terms of this Section 3.8 shall survive any termination or expiration of this Agreement for a period of three (3) years. 

  

	3.9	 Reporting.  During the Term KaloBios will keep LICR informed of the progress of its commercialization of Licensed Products and the
LICR Technology in the Field and shall provide LICR with all information reasonably requested in relation to its commercialization of Licensed Products and the LICR Technology. 

 

	4.	 INTELLECTUAL PROPERTY. 

 

	4.1	 Ownership.  Subject to the terms of this Agreement, the full right, title and interest including all intellectual property rights
in each item of LICR Technology will remain with the respective owners of the items of LICR Technology. 

  

	4.2	 Patent Marking.  KaloBios shall mark, and shall require all of its sublicensees to mark, all Licensed Products manufactured, used
or sold under the terms of this Agreement, or their containers, in accordance with the applicable patent marking laws. 

  
 7. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	4.3	 Patent Prosecution and Maintenance.  LICR and KaloBios shall be jointly responsible for the preparation, filing, prosecution and
maintenance (including conducting or participating in interferences and oppositions) of the Patents. LICR shall keep KaloBios informed of the progress in regard to the Patents and all decisions regarding thereto will be jointly made. LICR shall not
abandon any Patent without the consent in writing of KaloBios. 

  

	4.4	 Patent Costs.  From the Effective Date and throughout the Term KaloBios shall be responsible for all patent costs incurred by LICR
in regard to Patent preparation, filing, prosecution and maintenance (including, where agreed, conducting or participating in interferences and oppositions). LICR shall ensure that patent costs are paid in a timely manner and shall provide KaloBios
with an invoice requesting reimbursement with a description of the patent costs claimed. In addition, and within 28 days of receipt of an invoice from LICR, such Invoice to be provided after the Effective Date, KaloBios shall reimburse LICR all
costs incurred by LICR from 1 November 2005 to the Effective Date. 

  

	4.5	 Cooperation of the Parties.  At the reasonable request of the responsible Party, the other Party agrees to cooperate fully in the
preparation, filing, prosecution and maintenance of any Patents under this Agreement and in the obtaining and maintenance of any patent extensions, supplementary protection certificates and the like with respect to any Patent.

  

	4.6	 Third Party Infringement. 

  

	 	(a)	 Notice.  Each Party shall promptly notify the other in writing (and provide any evidence) of any alleged or threatened infringement
of the LICR Technology that may adversely impact the rights of the Parties hereunder. Each Party shall notify any such alleged infringer only with the prior written consent of the other Party. 

 

	 	(b)	 Enforcement Action. 

  

	 	(i)	 If the Parties become aware of any alleged or threatened infringement of the Patents, LICR shall have the first right, but not the obligation, to
take appropriate action against any person or entity directly or contributorily infringing such Patents. KaloBios shall cooperate reasonably in any such effort, including if required to bring a legal action, the furnishing of a power of attorney and
shall have the right to participate in such action at its own expense with its own counsel. 

  

	 	(ii)	 If LICR does not bring an action or proceeding against such alleged or threatened infringement within sixty (60) days of receiving notice
pursuant to Section 4.6(a), then KaloBios shall have the right, but not the obligation, to take appropriate action against any person or entity directly or contributorily infringing such Patents. LICR shall cooperate reasonably in any such
effort, including if required to bring a legal action, the furnishing of a power of attorney and shall have the right, but not the obligation, to participate in such action at its own expense with its own counsel. Any recovery obtained by settlement
or otherwise under this Section 4.6(b)(i) shall be disbursed as follows: (A) each Party shall first recover 

  
 8. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	 
any reasonable expenses incurred in such action (including attorney’s fees); and (B) LICR shall retain any remaining recovery. Any recovery obtained by settlement or otherwise by
KaloBios under this Section 4.6(b)(ii) shall be disbursed as follows: (A) each Party shall first recover any reasonable expenses incurred in such action (including attorney’s fees); and (B) KaloBios shall retain any remaining
recovery. 

  

	 	(iii)	 If the Parties become aware of any alleged or threatened infringement of the Joint Program Patents, KaloBios shall have the primary right, but not
the obligation, to take appropriate action against any person or entity directly or contributorily infringing such Joint Program Patents. LICR shall cooperate reasonably in any such effort, including if required to bring a legal action, the
furnishing of a power of attorney and shall have the right to participate in such action at its own expense with its own counsel. If KaloBios does not bring an action or proceeding against such alleged or threatened infringement within sixty
(60) days of receiving notice pursuant to Section 4.6(a), then LICR shall have the right, but not the obligation, to take appropriate action against any person or entity directly or contributorily infringing such Joint Program Patents.
KaloBios shall cooperate reasonably in any such effort, including if required to bring a legal action, the furnishing of a power of attorney and shall have the right to participate in such action at its own expense with its own counsel. Any recovery
obtained by settlement or otherwise under this Section 4.6(b)(iii) shall be disbursed as follows: (A) each Party shall first recover any reasonable expenses incurred in such action (including attorney’s fees); and (B) each Party
shall receive their pro-rata share based on expenses incurred of any remaining recovery. 

  

	4.7	 Infringement of Third Party Patent Rights. 

 

	 	(a)	 Joint Strategy.  If the use or sale of any Licensed Product becomes the subject of a claim of infringement of a patent or other
proprietary right anywhere in the world, the Parties shall promptly confer to discuss such claim. 

  

	 	(b)	 Defense.   Unless the Parties otherwise agree, KaloBios must assume the primary responsibility for the conduct, at its own
expense of the defense of any such claim relating to the LICR Technology. KaloBios shall indemnify LICR and its Academic Collaborators against any and all loss, damage, cost or expense (including attorney’s fees) which they may incur or suffer
as a result of such action. If KaloBios does not commence a defence to such action within 60 days of receiving written notice, then LICR, after notifying KaloBios in writing, shall be entitled, but not obligated to defends such action and to use
KaloBios name in connection therewith, provided such action is limited to the defense of any alleged infringement and counterclaim for invalidity of such third party patent rights. The Party conducting such defense shall have full control over its
conduct. The other Party shall reasonably cooperate with the Party conducting the defense of the claim including furnishing a power of attorney. Neither Party shall enter into any settlement that affects the other Party’s rights or interests
without such other Party’s written consent. 

  
 9. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	5.	 CONFIDENTIALITY. 

 

	5.1	 Confidential Information.  Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the
Parties, the Parties agree that, during the Term and for seven (7) years thereafter, the receiving Party shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as expressly provided for
in this Agreement any Information furnished to it by, or obtained directly or indirectly from, the other Party pursuant to: (a) this Agreement; or (b) any nondisclosure or confidentiality agreements entered into between the Parties before
the Effective Date (collectively, “Confidential Information”). Except to the extent expressly authorized by this Agreement, each Party may use Confidential Information of the other Party only to the extent required to accomplish the
purposes of this Agreement. Each Party shall use at least the same standard of care as it uses to protect proprietary or confidential information of its own to ensure that its employees, agents, consultants and other representatives do not disclose
or make any unauthorized use of the Confidential Information, but in no event less than reasonable care. Each Party will promptly notify the other upon discovery of any unauthorized use or disclosure of any Confidential Information.

  

	5.2	 Exceptions.  The obligations of confidentiality and non-use of Confidential Information set forth in Section 5.1 above shall
not apply to any information that, as shown by competent written proof: 

  

	 	(a)	 is now, or hereafter becomes, through no act or failure to act on the part of the receiving Party in breach hereof, generally known or available;

  

	 	(b)	 is known by the receiving Party at the time of receiving such information; 

 

	 	(c)	 is hereafter furnished to the receiving Party by a Third Party, as a matter of right and without restriction on disclosure; or

  

	 	(d)	 is the subject of a prior, express, written permission to disclose provided by the disclosing Party. 

 

	5.3	 Authorized Disclosure.  Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure
is reasonably necessary in the following instances: 

  

	 	(a)	 to prepare applicable regulatory filings or to seek patent protection; 

 

	 	(b)	 to prosecute or defend litigation as permitted by this Agreement; 

 

	 	(c)	 to comply with the rules of a securities exchange; 

 

	 	(d)	 to comply with applicable court orders or governmental regulations, including those of the U.S. Internal Revenue Service; and

  

	 	(e)	 to disclose such Confidential Information to a Third Party that is a bona fide actual or potential collaborator, such as LICR’s Academic
Collaborators, manufacturer, 

  
 10.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	 
commercial sublicensee, consultant, or development or sales partner, but only to the extent directly relevant to the development or commercialization of Licensed Products, provided, however, that
prior to any such disclosure, such Third Party is bound by written obligations of confidentiality at least as restrictive as those contained in this Article 5. 

Notwithstanding the foregoing, in the event that a Party is required to make a disclosure of the other Party’s
Confidential Information pursuant to Section 5.3, it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use commercially reasonable efforts to secure confidential treatment of such
information. The Parties will consult with each other in determining which of the provisions of this Agreement are to be redacted in any filings made by the Parties with the United States Securities and Exchange Commission or as otherwise required
by law. 
  

	5.4	 Return of Confidential Information.    Upon expiration or termination of this Agreement, each Party shall use
commercially reasonable efforts to return or destroy all Confidential Information received by it from the other Party. In such event, each Party shall be allowed to keep one (1) archival copy of any Confidential Information of the other
Party’s Confidential Information for record-keeping purposes only. 

  

	5.5	 Publicity.  KaloBios shall be entitled to issue press releases only upon written approval by LICR, such approval not to be
unreasonably withheld. Such approval shall be given within fourteen (14) business days of KaloBios’ submission to LICR. 

  

	6.	 REPRESENTATIONS AND WARRANTIES. 

 

	6.1	 Mutual Representations and Warranties.  Each Party represents and warrants to the other Party that: 

 

	 	(a)	 it is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate or other power
and authority to enter into this Agreement and to carry out the provisions hereof; 

  

	 	(b)	 it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing this
Agreement on its behalf have been duly authorized to do so by all requisite corporate or partnership action; 

  

	 	(c)	 this Agreement is legally binding upon it and enforceable in accordance with its terms, and the execution, delivery and performance of this
Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, or violate any material law or regulation of any court, governmental body or administrative or
other agency having jurisdiction over it; 

  

	 	(d)	 it has not, and will not during the Term, grant any right to any Third Party that would conflict with the rights granted to the other Party
hereunder; and 

  
 11.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	(e)	 to its actual knowledge, it has sufficient legal and/or beneficial title under its intellectual property rights necessary for the purposes
contemplated under this Agreement and to grant the rights and licenses such Party purports to grant the other Party pursuant to this Agreement. 

  

	7.	 INDEMNIFICATION. 

 

	7.1	 Indemnification by KaloBios.  KaloBios enters this Agreement at its own risk and shall indemnify, hold harmless and defend LICR,
its Affiliates, and Academic Collaborators and their respective officers, employees, sub-contractors and agents (each, an “LICR Indemnitee”) against any and all losses resulting from any action claim proceeding or demand (including
any product liability claim) to the extent that such action, claim, proceeding or demand arises out of: (a) the breach or alleged breach of any obligation, representation or warranty of KaloBios, its respective officers, employees,
sub-contractors or agents (each, an “KaloBios Indemnitors”) under this Agreement; or (b) the negligence or willful misconduct of KaloBios Indemnitors or (c) in respect of any loss, death, injury, illness or damage (whether
personal or property and whether special, direct, indirect or consequential, including financial loss) arising out of the commercialization of Licensed Products and the LICR Technology by the [***] provided that such indemnity shall not apply to the
extent such action, claim, [***] arises from (i) the breach or alleged breach of any obligation, representation or [***] this Agreement; or (ii) the gross negligence or willful misconduct of LICR. 

 

	7.2	 Limitation of Liability.    Notwithstanding the provisions of Section 7.1 each of the Academic Collaborator’s
and LICR’s liability, whether for breach of contract, negligence or otherwise, in any way connected with this Agreement or the LICR Technology is: 

 

	 	(a)	 excluded insofar as liability for loss of profits, loss of revenue and loss of goodwill and for special, indirect, consequential and punitive
damages are concerned; and 

  

	 	(b)	 limited for all claims in aggregate to [***]. 

  

	7.3	 Insurance.    KaloBios shall maintain insurance with limits, which are consistent with industry standards to cover
KaloBios’ activities in connection with this Agreement. 

  

	8.	 TERM AND TERMINATION. 

 

	8.1	 Term.  The term of this Agreement (the “Term”) shall commence on the Effective Date and continue until the date
the Royalty Term expires, unless earlier terminated pursuant to Section 8.2. 

  

	8.2	 Termination 

  

	 	(a)	 By KaloBios.  KaloBios shall have the right to terminate this Agreement for no at any time upon sixty (60) days prior written
notice to LICR. 

  
 12.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	(i)	 If KaloBios terminates after a Licensed Product has been identified, all rights conferred by LICR in this Agreement including the right to
commercialise Licensed Products, revert to LICR. For clarity, and as dictated by law, KaloBios will retain its respective rights to Joint Program Inventions and Joint Program Patents. 

 

	 	(ii)	 In the event of a reversion under Section 8.2(a)(ii), LICR will pay to KaloBios [***] of sublicense revenues (which includes any upfront and
milestone payments, but does not include any research funding fees), and [***] if any product developed by an LICR licensee infringes the claims of a KaloBios patent provided that KaloBios gives that licensee an exclusive, world-wide, royalty free
licence to exploit that KaloBios Patent for the term of the KaloBios patent for the purpose of commercializing that product. 

  

	 	(b)	 For Cause.  Each Party shall have the right to terminate this Agreement upon written notice to the other Party if, after receiving
written notice of a material breach of this Agreement, the breaching Party fails to cure such breach within sixty (60) days from the date of such notice. 

 

	 	(c)	 Due to Bankruptcy.    Each Party shall have the right to terminate this Agreement upon written notice to the other Party
if the other Party becomes subject to an administration order or makes any voluntary arrangements with its creditors, goes into liquidation (except for the purposes of amalgamation or restructuring and so that the resulting company effectively
agrees to be bound by or assume the obligations imposed on that party under this Agreement), or otherwise ceases to carry on business. 

  

	8.3	 Effect of Termination. 

  

	 	(a)	 Expiration or termination of this Agreement shall not affect any accrued rights or obligations of either Party. Such termination or expiration shall
not relieve either Party from obligations that are expressly indicated to survive termination or expiration of the Agreement. Upon any such expiration or termination, each Party shall return to the other Party any Confidential Information provided
to it by such Party under this Agreement; except for one (1) copy of any documentation of such Confidential Information, which shall be kept solely for legal archival purposes. 

 

	 	(b)	 If LICR terminates this Agreement pursuant to Section 8.2(b), KaloBios terminates this Agreement pursuant to Section 8.2(a) or if either
Party terminates the Agreement pursuant to Section 8.2(c), then subject to paragraph(c) hereof: 

  

	 	(i)	 the license granted under Section 2.1 shall automatically terminate and revert to LICR; and 

 

	 	(ii)	 the Parties shall (upon LICR’s written request) negotiate in good faith the commercially reasonable terms under which KaloBios would license
and transfer 

  
 13.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	 
to LICR the data, documentation, regulatory filings and registrations relating to any Licensed Products generated by KaloBios, and the relevant rights therein. 

 

	 	(c)	 In the event that LICR terminates this Agreement pursuant to Section 8.2(b) or Section 8.2(c) and, prior to the date of termination,
KaloBios has developed a Licensed Product and entered into a sub-license with respect to that Licensed Product, LICR will enter into an agreement with that sub-licensee under which LICR shall license the LICR Patent Rights to the sub-licensee on the
terms and conditions set out in this Agreement. The effective date of such agreement shall be the date of termination. 

  

	8.4	 Survival.  The provisions of Articles 1, 4, 5, 7, and 10; and Sections 3.5, 3.8, 8.3 and 8.4, of this Agreement shall survive
expiration or termination of this Agreement for any reason (subject to any subsequent dates of termination referred to in such individual Articles and Sections). 

 

	9.	 DISPUTE RESOLUTION. 

 

	9.1	 Disputes.  The Parties recognize that disputes as to certain matters may from time to time arise which relate to either
Party’s rights and obligations hereunder. It is the objective of the Parties to establish procedures to facilitate the resolution of such disputes in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this
objective, the Parties agree to follow the procedures set forth in Section 9.2, if and when such a dispute arises between the Parties. 

  

	9.2	 Dispute Resolution Procedures.    If any dispute, claim or controversy of any nature arising out of or relating to this
Agreement, including any action or claim based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance and/or breach of this Agreement (each, a “Dispute”), arises between the
Parties and the Parties cannot resolve such Dispute within thirty (30) days of a written request by either Party to the other Party, the Parties agree to refer the Dispute either to: (a) the chief scientific officer (or equivalent) of LICR
and the chief scientific officer (or equivalent) of KaloBios for resolution (if such Dispute relates to scientific issues); or (b) to the head of business development (or equivalent) of LICR and the head of business development (or equivalent)
of KaloBios for resolution (if such Dispute does not relate to scientific issues). If such officers of the Parties cannot resolve such Dispute within an additional thirty (30) days, then such Dispute shall be referred to the chief executive
officer (or equivalent) of LICR and the chief executive officer (or equivalent) of KaloBios for resolution. After an additional thirty (30) days, if such officers have not succeeded in negotiating a resolution of the Dispute, then either Party
may at any time thereafter seek to resolve such Dispute by arbitration or through a court of competent jurisdiction. Notwithstanding anything to the contrary, if any Dispute arises from either Party’s rights or obligations under Article 4
(Intellectual Property) or Article 5 (Confidentiality), then a Party may seek equitable relief from a court of competent jurisdiction without needing to resort to the dispute resolution mechanism described above in this Section 9.2.

  
 14.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	10.	 MISCELLANEOUS. 

 

	10.1	 Provided As Is.  The LICR Technology is provided on an “as is” basis and LICR makes no representations or warranties,
expressed or implied, with respect to the LICR Technology other than what is stated elsewhere in this Agreement. Subject to the foregoing and by way of example but not of limitation, LICR makes no representations or warranties (i) of commercial
utility, (ii) of merchantability or fitness for a particular purpose, or (iii) that the use of the LICR Technology will not infringe any patent, copyright, trademark or other proprietary or property rights of others. LICR expressly
disclaims any warranty that the LICR Technology is free from the rightful claims of any third party. Subject to the foregoing, LICR shall not be liable to KaloBios, KaloBios’ successors or assignees or any Third Party with respect to any claim
on account of, or arising from, the use of the LICR Technology supplied hereunder or the manufacture, use or sale of products or any other material or item derived there from. LICR shall not be liable to KaloBios or any other person for any loss of
profits, loss of business or interruption of business, or for any indirect, special or consequential damages of any kind incurred by KaloBios or any other person whether under this agreement or otherwise, even if LICR has been advised of the
possibility of such loss. 

  

	10.2	 Governing Law.  This Agreement is made in accordance with and shall be governed and construed under the laws of the State of
California, excluding its choice of law principles that require applying a different law. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 

 

	10.3	 No Agency.  The Parties’ relationship, as established by this Agreement, is solely that of independent contractors. This
Agreement does not create any partnership, joint venture or similar business relationship between the Parties, except as expressly set forth herein. No Party is a legal representative of the other Party, and no Party can assume or create any
obligation, representation, warranty or guarantee, express or implied, on behalf of the other Party for any purpose whatsoever. 

  

	10.4	 Assignment.    Except as expressly provided hereunder, no Party may assign or transfer this Agreement without the prior
written consent of the other Party (which consent shall not be unreasonably withheld or delayed); provided, however, that either Party may assign this Agreement and its rights and obligations hereunder without the other Party’s consent to an
Affiliate or in connection with the transfer or sale to a Third Party of all or substantially all of the business of such Party to which this Agreement relates, whether by merger, sale of stock, sale of assets or otherwise. In the event of such
transaction, however, intellectual property rights of the acquiring party to such transaction (if other than one (1) of the Parties to this Agreement) shall not be included in the technology licensed to the other Party hereunder. The rights and
obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any purported assignment not in accordance with this Section 10.4 shall be null and void.

  
 15.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	10.5	 Amendment.    This Agreement may only be modified or supplemented in a writing expressly stated for such purpose and
signed by duly authorized representatives of the Parties to this Agreement. 

  

	10.6	 Notices.  Any notice or other communication required or permitted to be given to either Party hereto shall be in writing unless
otherwise specified and shall be deemed to have been properly given and effective: (a) on the date of delivery if delivered in person; (b) the date of electronically confirmed facsimile transmission if during the recipient’s normal
business hours, or otherwise on the next business day of the recipient; (c) one (1) business day after sending via next business day delivery by a nationally recognized overnight courier service; or (d) three (3) days after
mailing by registered or certified mail, postage prepaid and return receipt requested, to the other Party at the following address or facsimile number. 

If to KaloBios: 
 KaloBios Pharmaceuticals, Inc. 
 3427 Hillview Avenue, Suite 200

 Palo Alto, CA 94304 
 Facsimile: (650) 843-1896 
 Attention: Chief Executive Officer

 If to LICR: 
 Ludwig Institute for Cancer Research 
 605 Third Avenue 

New York, New York 10158 
 Attn: Edward A. McDermott, Jr. 
 Fax: +1-212-450-1555 

with a copy to: 
 Ludwig Institute for Cancer Research 
 605 Third Avenue 

New York, New York 10158 
 Attn: Jonathan Skipper 
 Fax: +1-212-450-1555 

Either Party may change its address for communications by a notice to the other Party in accordance with this Section 10.6.

  

	10.7	 Force Majeure.  Any delay in performance by any Party under this Agreement shall not be considered a breach of this Agreement if
and to the extent caused by occurrences beyond the reasonable control of the Party affected, including any acts of Nature, embargoes, governmental restrictions, strikes or other concerted acts of workers, fire, flood, earthquake, explosion, riots,
wars, civil disorder, terrorism, rebellion or sabotage. The Party suffering such occurrence shall immediately notify the other Party and any time for performance hereunder shall be extended by the actual time of delay caused by

  
 16.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	 
the occurrence. Such extension shall be continued so long as the occurrence continues and the nonperforming Party takes reasonable efforts to alleviate the effects of the occurrence.

  

	10.8	 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 a single instrument. 

  

	10.9	 No Third Party Rights or Obligations.    No provision of this Agreement shall be deemed or construed in any way to result
in the creation of any rights in or obligation to any Third Party. 

  

	10.10	 Severability.    If any term, condition or provision of this Agreement is held to be unenforceable for any reason, it
shall, if possible, be interpreted to achieve the intent of the Parties to this Agreement to the extent possible rather than voided. In any event, all other terms, conditions and provision of this Agreement shall be deemed valid and enforceable to
the full extent. 

  

	10.11	 Compliance with Laws.    Each Party shall carry out its activities pursuant to this Agreement in compliance with all
applicable supranational, national, state, provincial and other local laws, rules, regulations and guidelines. 

  

	10.12	 Cumulative Rights.  The rights, powers and remedies hereunder shall be in addition to, and not in limitation of, all rights, powers
and remedies provided at law or in equity, or under any other agreement between the Parties. All of such rights, powers and remedies shall be cumulative, and may be exercised successively or cumulatively. 

 

	10.13	 Waiver.  The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right
arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Any waiver by a Party of a particular provision or right
shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party. 

  

	10.14	 Entire Agreement.  This Agreement and Exhibits B are a final expression of the Parties’ agreement and a complete and exclusive
statement with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and communications, whether oral, written or otherwise, concerning any and all matters contained herein, including (a) all
nondisclosure or confidentiality agreements entered into between the Parties before the Effective Date. 

  

	10.15	 Construction.    No rule of strict construction will be applied in the interpretation or construction of this Agreement.
The Section and Article headings are included in this Agreement merely for convenience of reference, and they are not to be considered part of this Agreement or used in the interpretation of this Agreement. When used in this Agreement,
“including” means “including without limitation”. This Agreement is in the English language only, which language shall be controlling in all respects, and all

  
 17.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	 
versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. 

11.      JOINT RESEARCH PROGRAM. As soon
as practicable after the execution of this Agreement the parties will use their best endeavours to agree on the term and conditions of an agreement with the Academic Collaborators to conduct the Joint Research Program (the Collaborative Research
Agreement). 
 [Signature page follows.] 

  
 18.

 [***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 In Witness Whereof, both KaloBios and LICR have executed this Agreement as of the Effective
Date by their respective duly authorized representatives. 
  

									
	KaloBios Pharmaceutical, Inc.	 	Ludwig Institute for Cancer Research
					
	By:	 	   /s/ Mark R. Alfraito
	 		 	By:	 	 /s/ Dr. Jonathan Skipper

	Name:	 	   Mark R. Alfraito
	 		 	Name:	 	Dr. Jonathan Skipper
	Title:	 	   President
	 		 	Title:	 	Executive Director

									
	Witness:	 	   /s/ [Illegible]
	 		 		 	

											
		 		 		 	Witness:	 	   /s/ [Illegible]

													
						
		 		 		 	By:	 		 	/s/ Edward A. McDermott, Jr.
		 		 		 	Name:	 	Edward A. McDermott, Jr.
		 		 		 	Title:	 	President

											
					
		 		 		 	Witness:	 	   /s/ [Illegible]

  
 [***] CONFIDENTIAL PORTIONS
OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 EXHIBIT A 

PATENTS 

Patent 1. 
  

	(a)	 Patent application PO 7549 filed on 27 June 1997 entitled “Receptor-Ligand System and Assay”; 

	(b)	 all patent applications (including foreign applications) that are filed or may later be filed based on or corresponding to the application in (a);

	(c)	 all divisional and continuations, in whole or in part, applications, and reissue applications based on any of the foregoing patent applications;

	(d)	 all issued and unexpired patents resulting from any application in (a), (b), or (c) above; 

	(e)	 all issued and unexpired reissue, re-examination, renewal or extension patents that may be based on any such patents; and

	(f)	 any invention or discovery; manner, method or process of manufacture; method or principle of construction; chemical composition or formulation;
biological material; or scientific, technical or engineering information or document which is encompassed or taught in the patents or patent applications referred to in paragraphs (a) to (e). 

Patent 2. 
  

	(a)	 Provisional patent application AU 2003900541 filed 7th February 2003 and entitled “Eph/ephrin Modulation of Cell Adhesion and Tumour
Cell Metastasis”; 

	(b)	 all patent applications (including foreign applications) that are filed or may later be filed based on or corresponding to the application in (a);

	(c)	 all divisional and continuations, in whole or in part, applications, and reissue applications based on any of the foregoing patent applications;

	(d)	 all issued and unexpired patents resulting from any application in (a), (b), or (c) above; 

	(e)	 all issued and unexpired reissue, re-examination, renewal or extension patents that may be based on any such patents; and

	(f)	 any invention or discovery; manner, method or process of manufacture; method or principle of construction; chemical composition or formulation;
biological material; or scientific, technical or engineering information or document which is encompassed or taught in the patents or patent applications referred to in paragraphs (a) to (e). 

Patent 3. 
  

	(a)	 Provisional patent application PK 6841 filed on 29 June 1991 and entitled “A Novel Receptor-type Tyrosine Kinase and Use
Thereof” and provisional patent application PK 9992 filed on 12 December 1991 and entitled “A Novel Receptor-type Tyrosine Kinase and Use Thereof”; 

	(b)	 all patent applications (including foreign applications) that are filed or may later be filed based on or corresponding to the application in (a);

	(c)	 all divisional and continuations, in whole or in part, applications, and reissue applications based on any of the foregoing patent applications;

  
 2. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	(d)	 all issued and unexpired patents resulting from any application in (a), (b), or (c) above; 

	(e)	 all issued and unexpired reissue, re-examination, renewal or extension patents that may be based on any such patents; and

	(f)	 any invention or discovery; manner, method or process of manufacture; method or principle of construction; chemical composition or formulation;
biological material; or scientific, technical or engineering information or document which is encompassed or taught in the patents or patent applications referred to in paragraphs (a) to (e). 

  
 3. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 EXHIBIT B 

JOINT RESEARCH PROGRAM 
 Proposed EphrinA3 Project 
 Objective of Stage 1 (12months) 

The objective of the project is to demonstrate the utility of EphA3 as a target for cancer therapy and to identify a therapeutic
development candidate by July 2006. 
 Proposed Work Program 

 

	 	1.1	 Normal Tissue Expression 

 Published data suggests that EphA3 is expressed at low levels in some human tissues and may be highly expressed in adult retina. Mouse EphA3 gene knock-out mice show high perinatal mortality
(75%) but adult mice appear normal. Antibody [***] cross-reacts with mouse and human EphA3 and therefore it should be possible to investigate PK and normal tissue binding of this antibody in normal mice. [***] is a murine g1 antibody i.e. has poor effector function. The evaluation of the ADCC and/or complement effects of an EphA3antibody on normal tissues requires an active isotype version. PK analysis can be obtained with the
current form of the antibody in normal mice. 
  

	 	1.1.1	 Proposal Studies 

  

	a.	 Pharmacokinetics and volume of distribution of [***] in normal mice at different antibody doses 

	b.	 Confirmation of EphA3 expression in mouse retina and reactivity with [***] antibody 

	c.	 Construction of [***] human g1 chimeric and evaluation for safety/tolerability in mice

  

	 	1.2	 Tumor/Tumor blood vessel Expression 

 The current literature suggests that EphA3 is expressed in a wide variety of human tumors although expression may not be uniform. Many of these studies have been carried out using RT-PCR and reactivity
should be confirmed by IHC. Published data suggests that EphA3 is expressed in: 44% (11/25) small cell lung cancer, 24% (10/41) non-small cell lung cancer, 58% (17/29) sarcomas and 31% (12/38) renal cell carcinomas. EphA3 is also
strongly expressed in at least 20% melanomas. Expression in tumors of the hematopoietic system is variable. 
 The expression of
EphA3 protein on human tumor cells needs to be analyzed as well as its expression on tumor blood vessels. This data should provide guidance on selection of clinical indications for early clinical trials. 

  
 4. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

	 	1.2.1	 Proposed Studies 

  

	 	a.	 Production of antibody to formaldehyde-fixed EphA3 

	 	b	 Immunochemistry survey of human tumor samples 

	 	c.	 Laser capture and PCR to assess EphA3 expression on tumor blood vessels 

 

	 	1.3	 Anti-Tumor Effects In vivo 

 The anti-tumor activity of molecules that interfere with EphA3 activity suggest that both unconjugated and conjugated antibodies will have therapeutic effect in mouse models. The optimal form of an EphA3
targeted therapeutic will have to be determined. 
 Work by Lackman et al has shown anti-tumor activity of a [***] antibody
conjugate and a [***] IgG dimer in a human tumor xenograft model in the mouse. Brantley et al have shown anti-tumor activity of an EphA3-Fc fusion protein in a xenograft of the 4T1 mammary cell line. The EphA3-Fc protein was shown to reduce vascular
density and tumor volume. EphA2-Fc fusion protein was also active in these types of models. Antibodies to EphA2 have been reported to show anti-tumor activity in animal models. EphA2 is expressed on tumor cells and tumor vasculature and EphA2-Fc
protein inhibits tumor angiogenesis. 
 The importance of EphA3 targeting of endothelial cells for anti-tumor activity needs to
be investigated in addition to direct tumor cell effects. The development candidate will be expected to show anti-tumor activity in tumor xenograft models of EphA3 expressing and non-expressing human tumors. The indirect anti-tumor activity (against
tumor cells not expressing EphA3) should be through tumor endothelial cell effects (angiogenesis). 
  

	 	1.3.1	 Proposed Studies 

  

	 	a.	 Produce chimeric [***] (human gl) monoclonal antibody 

	 	b.	 Produce chimeric [***] 

	 	c.	 Produce [***] 

	 	d.	 Produce chimeric [***] 

	 	e.	 Produce chimeric [***] 

	 	f.	 Evaluate molecules in human tumor xenografts in mice 

	 	g.	 Evaluate targeted killing of tumor vasculature/inhibition of angiogenesis 

 

	 	1.4	 Development Candidate 

 The mouse antibody [***] is a lead molecule. The antibody V-regions will be converted into human V-regions. The importance of valency, ephrin A5 and drug conjugates will be factored into the design of the
development candidate. Optimization of effector functions will be considered. 
  

	 	1.4.1.	 Proposed Studies 

  

	 	a.	 Humaneer antibody [***] 

	 	b.	 Express in appropriate host cell and generate a manufacturing cell line 

	 	c.	 Demonstrate efficacy in appropriate xenograft models 

  
 5. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 Objective of Stage 2 
 The objective of stage 2 is to develop the lead candidate and prepare a strong pre-clinical development package by mid-2007 

 

	 	2.1	 Cell line 

	 	2.2	 Pre-CTX Meeting 

	 	2.3	 Process Development 

	 	2.4	 Assay Development 

	 	2.5	 Manufacture 

	 	2.6	 Toxicology Studies 

	 	2.7	 CTX Filing 

Objective of Stage 3 

The objective of stage 3 is to evaluate the safety and efficacy in cancer patients 

  
 6. 

[***] CONFIDENTIAL PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]