Document:

ecyt_Ex10_1

		

			 

		

		
			Exhibit 10.1
		

		
			 
		

		
			CONFIDENTIAL TREATMENT REQUESTED
		

		
			Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended. Omitted information, marked “[*]” in this Exhibit, has been filed separately with the Securities and Exchange Commission together with such request for confidential treatment.
		

		
			 
		

		
			CONFIDENTIAL
		

		
			 
		

		
			Global Supply Agreement
		

		
			(this “Agreement”)
		

		
			 
		

		
			between
		

		
			 
		

		
			ITG Isotope Technologies Garching GmbH
		

		
			Lichtenbergstraße 1, 85748 Garching, Germany
		

		
			 
		

		
			- hereafter referred to as “ITG” or “Sellers”-
		

		
			 
		

		
			and
		

		
			 
		

		
			Endocyte, Inc. (and its Affiliates),
		

		
			a company duly organized and existing under the laws of Delaware,
		

		
			3000 Kent Avenue, Suite A1-100, West Lafayette, Indiana, United States 47906-1075
		

		
			 
		

		
			- hereafter collectively referred to as “Buyer” -
		

		
			 
		

		
			Preamble
		

		
			 
		

			
	
			
				 (1)
			

			
	
			
			ITG is a  manufacturer of certain innovative radioisotopes.

		
			 
		

			
	
			
				 (2)
			

			
	
			
			Buyer is engaged in clinical evaluation, registration, and commercialization of medicines that involve the labeling and combining of a radioisotope with a ligand to provide targeted therapy for certain diseases.

		
			 
		

			
	
			
				 (3)
			

			
	
			
			Sellers are engaged in the manufacture, sale and supply of various radioactive isotopes for use in pharmaceutical research, development projects and the commercialization thereof, all by themselves and others.

		
			 
		

			
	
			
				 (4)
			

			
	
			
			Sellers and Buyer collectively shall be known as the Parties to this Agreement.

		
			 
		

		
			Article 1
		

		
			Appointment of Buyer
		

		
			 
		

		
			(1)  Appointment: Subject to this Agreement:
		

		
			 
		

		
			(a)  Sellers hereby appoint Buyer who accepts this appointment to purchase the products or product lines itemised in Annex 1 hereto (hereafter referred to as the “Products”)  from Sellers.
		

		
			 
		

		
			(b)  In Germany, Sellers shall manufacture the Product in accordance with the Product Specifications, the applicable GMP of EMA, the Sellers’ SOPs, and the laws and regulations applicable in Germany (“Standard”), and sell to Buyer the Products itemised in Annex 1 (hereafter, the “Services”).  Buyer shall keep Sellers informed of any laws, rules and regulations specific to the Products, and any changes thereto after the Effective Date in any jurisdiction.  Sellers will work with
		

		
			
		

		
			

		 

		

			1

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			Buyer in good faith to address any requirements that may apply to the Services from any jurisdiction other than Germany.
		

		
			 
		

		
			(2)  Limitation on  Buyer: During the Term of this Agreement, Buyer agrees it shall not operate as a distributor of Sellers under this Agreement, unless the Parties agree otherwise in writing. Buyer shall not resell the Products it purchases from Sellers in the exact identical form obtained from Sellers except to third-party manufacturers and other sub-licensees of Buyer who shall assist Buyer in producing Endocyte’s Final Product (as defined below).
		

		
			 
		

		
			(3)  Limitations: Sellers agree that they do not possess nor shall they acquire any proprietary right in Labelled or Unlabelled PSMA-617.
		

		
			 
		

		
			(4)  Introduction or Discontinuation of Products: The list of Products may be amended only by written agreement between the Parties.
		

		
			 
		

		
			(5)  Exclusivity: During the Term of this Agreement, and subject to the conditions hereunder, including,  but not limited to, the provisions for short supply of Product contained in Article 3, Section 4 of this Agreement, (i)  Buyer shall purchase all of its clinical dosing needs for Products during the Study Phase of this Agreement (as defined in Annex 2) from Sellers and Sellers shall supply all of such Buyer’s needs for the Products in this Study Phase; and (ii) Buyer agrees to purchase at least Fifty Percent (50%) of its volume Product needs for Endocyte Final Product during the Commercial Phase (as also defined in Annex 2)  from Sellers.
		

		
			 
		

		
			(6)  Quality Agreement: As soon as practicable after the execution of this Agreement, and in any event within [*] of the Effective Date of this Agreement, the Parties shall enter into a Quality Agreement having terms acceptable to each of both Parties. The Quality Agreement shall contain industry standard provisions, including but not limited to, rights to access and audit facilities and systems consistent with the terms in this Agreement, access to production records, person-in-plant provisions, and other requirements, for Buyer to ensure that the Products are manufactured in accordance with GMP of EMA standards and guidelines. In the event of any conflict between the Quality Agreement and this Agreement, this Agreement shall control except as to issues of Product quality in which case the Quality Agreement shall control. All materials shall be stored and tested at Seller’s facility in accordance with the Quality Agreement; provided, however, Sellers shall have no responsibility or liability to undertake any testing or to certify the raw materials used for the Product other than as set forth in the Quality Agreement and, with respect to any raw materials (whether or not incorporated into or part of the Product), Sellers shall be responsible for any testing by Sellers under the Quality Agreement.
		

		
			 
		

		
			(7)  Up-front Fee. Buyer shall, at the latest thirty (30) calendar days upon mutual execution of this Agreement by each Party, pay to Sellers, as a one-time upfront payment, the amount of five (5) million Euros, (for clarity, in addition to any [*] hereunder due).
		

		
			 
		

		
			Article 2
		

		
			Compliance with Law
		

		
			 
		

		
			(1)  (a) Buyer shall use the Products purchased hereunder in conformity with the applicable laws and regulations in the United States or any other country where the Product is being used, and shall be responsible for use of the Products (whether or not in combination with Endocyte’s Final Product)  in accordance with the regulations applicable to Buyer in the countries where Buyer contracts with third-party manufacturers to further develop the Products.  Buyer shall obtain and maintain, at its cost and risk, all applicable regulatory approvals for the Products it uses. Buyer shall not use the Product without first securing such regulatory approvals.
		

		
			
		

		
			

		 

		

			2

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			(b) Throughout the Term (as defined below) of this Agreement,  Buyer shall comply with all requirements applicable to Buyer and necessary to lawfully import and use the Products in the United States and other countries or locations where Buyer shall use the Products.  Buyer shall provide Sellers with the country specific legislation, rules and regulations and practices or requirements of the regulatory authorities and governmental bodies of such country, which may affect the Product, and shall inform Sellers of the effect of any thereof.
		

		
			 
		

		
			(2)  (a) In performing the Services hereunder in Germany,  Sellers shall comply in all respects with all applicable laws, regulations and restrictions for any jurisdiction that has legal authority over the Services that Sellers perform hereunder, namely Germany, the European Commission, and the FDA, including,  but not limited to, all applicable laws, regulations and restrictions regarding Sellers’ procurement of any raw materials required for the manufacture of the Product, manufacture, and distribution to Buyer, of the Products, it being agreed and understood by Buyer that Sellers may have the Services performed and source and acquire the raw materials used for the manufacture of the Product anywhere in the world (as long as such are in accordance with the Product Specifications), including from a network created by Sellers, e.g. from Australia, South Africa, Russia, China, and/or Canada.  Sellers shall comply with all anti-bribery and/or anti-corruption laws of Germany, including any recordkeeping requirements of such laws, in Germany (where Sellers have their principal place of business and where they conduct any activities under this Agreement).
		

		
			 
		

		
			(b) In performing the Services hereunder, directly or indirectly, including,  but not limited to the sourcing of raw materials for the performance of the Services, Sellers further confirm that they shall not, nor shall any third party on Seller’s behalf, give, offer, promise, or authorise, any payment, benefit, or gift of money or anything else of value, directly or indirectly through a third party, to any Government or Public Official for purposes of inducing such individual to do or omit to do any act in violation of the individual’s duty, inducing the individual to use the individual’s official influence with a government to affect or influence an act or decision of the government, or to secure any improper advantage in order to assist in obtaining or retaining business. Further, in the performance of the Services, neither Seller, nor any third-party on Seller’s behalf, shall give, offer, promise or authorise any payment to any political party, party official or candidate for public or political office.
		

		
			 
		

		
			(c) To the extent that Sellers do not know whether a third-party with whom Seller is dealing is a Government or Public Official in relation to the performance of the Services, including but not limited to sourcing raw materials, for purposes of this Article 2, Seller shall treat all such third-parties as Government or Public Officials.  For the avoidance of doubt, any and all Russian third-parties with whom Sellers interact shall be treated as Government or Public Officials of Russia and/or the Russian Federation unless Sellers have conclusive evidence that such Russian third-parties are not Government or Public Officials.
		

		
			 
		

		
			(d) Throughout the Term of this Agreement,  Buyer shall, in accordance with Section 3(2) and subject thereto, obtain, maintain and update all permits, licenses or approvals required by a Government Authority,  and implement any and all registration requirements, that are necessary for Sellers to lawfully perform the Services under this Agreement in Germany, and for Buyer to sell Endocyte’s Final Product (including the Product) in the relevant country,  including,  but not limited to, all appropriate import or manufacturing licenses and registrations.
		

		
			 
		

		
			(3)  The Parties agree that any breach of this Article 2 shall be considered a material breach of this Agreement.
		

		
			
		

		
			

		 

		

			3

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			Article 3
		

		
			Ordering and Supply of the Products
		

		
			 
		

		
			(1)  Order Processing: The submission of a completed order for a quantity or volume of a Product by Buyer to ITG constitutes a binding offer from Buyer during the Study Phase and shall be binding in the Commercial Phase subject to Article 3, Section 5; provided, however, no pre-printed or other term or condition thereon shall have any force or effect, all of which terms and conditions shall be null and void unless otherwise specifically agreed in writing by and between the Parties and the provisions of this Agreement shall be deemed incorporated therein. Such orders shall be considered accepted by Sellers upon sending a written order confirmation in accordance with this Agreement.  Buyer shall place orders for the Products in writing within the lead times contained in Annex 3.  ITG shall confirm the order in writing within [*] after receiving Buyer’s order, or an order from Buyer’s designee, for the Product,  and indicate the delivery date to Buyer or Buyer’s designee of the Products. ITG shall provide to Buyer or Buyer’s designee the Products to fulfil said order no later than the end of the appropriate lead time indicated in Annex 3.  If Buyer directs its third-party manufacturers of the Products to order from Sellers on Buyer’s behalf, Buyer shall provide notice to ITG where and to whom it has given this authorization and ITG agrees to process the order and ship the Products to the third-party manufacturer as it would if processing the order and shipping directly to Buyer, providing written confirmation to Buyer and Buyer’s designee (if applicable) upon receiving the order and then again when shipping the order to Buyer or Buyer’s designee.  Buyer or Buyer’s designee will inform Sellers upon receipt of shipped Products of their arrival and pickup and quantity received.
		

		
			 
		

		
			(2)  Shipping: By order of Buyer or Buyer’s authorized third-party manufacturer, ITG shall ship the Products to Buyer or Buyer’s contract manufacturer, both whom must be authorized by Buyer to receive radioactive materials such as the Products. Shipment of accepted orders shall be scheduled for delivery on or before  the delivery date specified in the delivery notice provided by ITG to Buyer as required by Article 3, Section 1 of this Agreement, as long as the ordered activity is present on the specified delivery date. Unless otherwise agreed in writing by the Parties, shipment by ITG shall be [*] and as notified by Buyer to ITG. Buyer shall, upon request of Sellers, provide information required for taxation or reporting purposes in respect of export of the Product. Title and risk of loss or damage to the Products shall transfer to Buyer from Sellers [*]. Specific arrangements for shipping and transport of the Products must be agreed upon by both Parties in advance; provided, however, irrespective of the above agreement with respect to the provisions under [*].
		

		
			 
		

		
			(3)  Cancellation of Orders: Buyer acknowledges that manufacturing of the Products containing radioactive materials may require relatively long lead-times for the procurement of isotopes, and that those Products, once manufactured, lose market value rapidly and soon become unsalable due to the radioactive decay rate. For these reasons, Buyer agrees that it [*] as dictated by the deadlines contained in Annex 3;  provided, however, to the extent Buyer places an order earlier than the required lead time, then Buyer may [*].  Should Buyer need to cancel any order within the required lead time, [*].
		

		
			 
		

		
			(4)  Short Supply: The principle of short supply shall be, in any event [*], be it due to Force Majeure or any other reason, including as may be attributable to Sellers, shall translate into the right of Buyers to receive from Sellers, during short supply, [*], as then-available at the relevant point in time during short supply, having been [*], e.g. (only) [*] in accordance with this Agreement and (at the relevant point in time, when ordered by Buyer with Sellers) then representing [*] of Sellers’  [*] (which shall, in this example, be [*]),  then [*] would entitle Buyer to [*] in cases where no
		

		
			
		

		
			

		 

		

			4

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			shortage applies; provided, however, in cases of shortage of supply, this foregoing right entitles Buyer [*], when [*], namely, assuming that the total capacity only available to Sellers during such shortage would only be [*] (instead of [*] then-available prior to short supply, in such above example),  Buyer would only be entitled to receive [*] thereof, namely [*], during the period of short supply. After short supply period ends, Sellers will return to supplying the products under this Agreement as required when there was no short supply.
		

		
			 
		

		
			(5)  Rolling Forecast: Sellers understand and Buyer recognizes that the typically ordered amounts of Product might increase in quantity during the Study Phase and the Commercial Phase;  provided, however, therefore, forecasts for the Products shall be provided by Buyer on a  regular basis to Sellers, as provided herein.  All orders shall be made by Buyer, or its designee, to ITG, and forecasts required hereunder shall solely be made by Buyer to ITG.
		

		
			 
		

		
			(a) The Study Phase: The Parties agree that during the Study Phase, no forecasts, binding or non-binding, shall be required of Buyer.  This is because Sellers agree that the volumes of Products, as set forth in the [*] received by Sellers in [*], to satisfy the research and development needs of Buyer, including but not limited to, Buyer’s Phase 3 global registration trial (currently called the “Vision Trial”) for purposes of filing a new drug application with the FDA, are [*] for all of Buyer’s Study Phase requirements for Products on an [*], to be processed by ITG as required by Article 3 and the rest of this Agreement. The maximum order quantity that Sellers may be able to provide, and confirm during the Study Phase in response to a purchase order placed with Sellers by Buyer or its designee, without prior notification, shall be,  [*], up to [*] when ordering [*],  [*] when ordering [*], and [*] when ordering [*] and, starting [*], up to [*] when ordering [*],  [*] when ordering [*],  and [*] when ordering [*]. Should Buyer need more than [*], at any point during the Study Phase, both Parties shall discuss in good faith the conditions to be applicable for these deliveries. If Buyer subsequently finds that its demands require a higher maximum order quantity or different lead time for ordering, Sellers will coordinate with Buyer in good faith to allow for such changes. For purposes of this Agreement, should Buyer decide to [*], this situation will be considered to be part of The Study Phase of this Agreement and will not trigger the Commercial Phase.
		

		
			 
		

		
			(b) The Commercial Phase: The Parties agree that the volumes of the Products necessary to meet the needs of Buyer’s customers, once Buyer launches Endocyte’s Final Product (containing the Product) following approval by a Government Authority,  [*] for the Products and [*]. As such, once the Commercial Phase is triggered as herein provided, then Buyer agrees to provide ITG with Product forecasts,  [*], as follows. For the [*], Buyer shall continue to purchase the Products from Sellers as Buyer did [*], on an [*], in each case to be confirmed by Sellers, with the same obligations and limitations for each of both Parties. This [*] of the Endocyte Final Product also shall be [*].
		

		
			 
		

		
			(i)   Short-term Production Planning: [*],  Buyer shall notify Sellers in writing of the start of the Commercial Phase and shall provide to ITG in writing a forecast for the demand of Product for the [*] of the Commercial Phase. After the Commercial Phase has started, the [*] forecast shall be updated in writing and provided to Sellers on a [*] by Buyer at the [*] (e.g., by [*], the updated forecast for [*] shall be received by Sellers,  and [*] has to be provided). In addition, Buyer shall provide an outlook for [*] (compare to Long-term Production Planning).  The [*] forecast shall be [*] when made and provided, and Sellers  may, in its sole discretion, reject it only if [*] that is applicable or  accept it, in part or full, by sending an order confirmation, noting that Buyer commits to purchase. The [*] forecast shall be [*] Buyer and Sellers; provided, however, in order to provide more certainty to each other for planning purposes, as this Agreement matures,  with regard to what are appropriate minimum and maximum order quantities for the Product during the Commercial Phase,  the Parties agree to meet and to agree on minimum (for Buyer) and maximum (for Sellers) percentages of the demand for Products forecasted by Buyer for [*], to which each
		

		
			
		

		
			

		 

		

			5

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			Party shall be obligated to the other Party to purchase (in case of Buyer) and to supply (in case of Sellers) and do so prior to the date that Buyer shall first be required to make and provide to Sellers a  forecast hereunder.
		

		
			 
		

		
			(ii)  Long-term Production Planning for Study Phase:  On [*], beginning within [*], and then [*] no later than the [*] that this Agreement is in effect, Buyer shall provide ITG with  a good faith, [*] forecast for the Products,  for planning purposes only, which forecast shall state the estimated consumption for [*], and [*] thereafter, and shall provide a new [*] forecast for [*].  See Annex 4 [*].
		

		
			 
		

		
			(iii) Long-term Capacity Planning for the Commercial Phase:  Beginning with the [*] and [*], no later than the [*] that this Agreement is in effect, Buyer shall provide ITG with a good faith, [*] forecast for the Products, for planning purposes. To assist Sellers in their long-term manufacturing capacity planning for Product production,  Buyer shall notify ITG in writing of Buyer’s long-term, high-volume estimated needs in accordance with the following notification criteria:
		

		
			 
		

		
			Table 1
		

		
			 
		

			
					
						When Buyer believes that it will need,  on a [*] basis, the following amount of Product [*]

					
					
						...then Buyer shall notify ITG in writing when [*], with the following lead times [*], where the notice period for each new tier shall  be in addition to the prior notice period:

				
	
					
						[*]

					
					
						[*]

				
	
					
						[*]

					
					
						[*]

				
	
					
						[*]

					
					
						[*] additional notice required

				
	
					
						[*]

					
					
						[*] additional notice required

				
	
					
						[*]

					
					
						[*] additional notice required

				
	
					
						[*]

					
					
						[*] additional notice required

				

		
			 
		

		
			If Buyer wishes to reserve [*], Buyer shall notify Sellers in writing [*]. Three examples for the next step:
		

		
			 
		

		
			(i)   Buyer wishes to [*], from [*] to [*],  then Buyer shall notify Sellers in writing [*]; or if
		

		
			 
		

		
			(ii)  Buyer wishes to [*], from [*] to [*],  then Buyer shall notify Sellers in writing [*]; or if
		

		
			 
		

		
			(iii) Buyer wishes to [*], from [*] to [*],  then Buyer shall notify Sellers in writing [*].
		

		
			 
		

		
			(c) If notice should not have been given by Buyer within the notification period (or should not have been given at all),  and payment of any [*] per Annex 2,  that may be applicable, should not have been made by Buyer to Sellers, Sellers shall not be able [*];  provided, however, in this case,  Sellers shall nevertheless use their commercially reasonable efforts to supply Buyer’s needs.
		

		
			 
		

		
			(6)  Actual Production Capacity:  Sellers shall establish and maintain facilities for the manufacture    and supply of the Products to ensure production capacities are available to meet demand in the Study Phase of this Agreement.
		

		
			 
		

		
			(7)  Sellers shall provide the Product with artwork including, but not limited to, design and content of labels, leaflets and packaging material (“Artwork”), in the respective language of any country of the European Union, as may be requested by Buyer, and otherwise, in the English
		

		
			
		

		
			

		 

		

			6

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			language. Buyer shall be solely responsible for any and all Artwork of Endocyte’s Final Product (Lu-177 PSMA-617).
		

		
			 
		

		
			Article 4
		

		
			Purchase Price and Payment
		

		
			 
		

		
			(1)  Purchase Price:
		

		
			 
		

		
			(a) The price [*] by Product for the Term of this Agreement as outlined in and subject to Annex 2. Sellers agree to [*] also for the Study Phase. Such [*], at the discretion of the Seller, will be made by Sellers to Buyer within [*] of Buyer providing to Sellers [*] as covered by this subsection 1 (a) accompanied by an accurate calculation of [*] as provided herein.
		

		
			 
		

		
			(b) Should the [*] for a Product increase or decrease in any given calendar year for Sellers, such change(s) [*] in Annex 2 [*], starting from the Effective Date of this Agreement. Sellers shall give Buyer written notice of [*] for the Products under this section at least [*] in advance of [*] being implemented. Price for a Product [*] and [*] may only [*]; provided, however, in no event shall the price for a Product in Annex 2 [*] or [*] starting from the Effective Date of this Agreement, irrespective of the [*] in [*]; provided, however, any [*] and/or the [*] shall be [*]. Any such [*] shall become [*] for [*].
		

		
			 
		

		
			(c) Buyer shall not have [*] to confirm such change [*]; provided, however, any increase may be verified by an independent third party auditor if Buyer deems necessary, which independent auditor shall be an independent certified public accounting firm, by giving Sellers a reasonable written notice no less than [*], and, at the written request of Buyer made in such notice, Sellers shall make available to such independent certified public accounting firm (of internationally recognized standing and bound to each Party by separate confidentiality obligations no less strict than those in this Agreement, and which has been selected by Buyer, with any services rendered hereunder by such accounting firm at Buyer’s expense) for inspection of all documents relating to finances and associated with the manufacture of the Product, which accounting firm may disclose to Buyer not the basis of, but only the final result of, such verification, such result only to be disclosed to Buyer whether or not such accuracy is given), for example, but not by way or requirement or limitation, a statement from the vendor of the materials showing the cost increase factor. Sellers shall make available, in its sole discretion, either to Buyer, or to such accounting firm, subject to the provisions hereof, the necessary documentation to justify the basis for the price change to Sellers and the Parties shall negotiate in good faith regarding any such increase in the price of the Product.
		

		
			 
		

		
			(2)  Payment Terms: ITG shall provide a [*] invoice for the delivered Products to Buyer. In that invoice, ITG shall list the [*] under this Agreement, such as [*], such as [*]. Payment of the invoice by Buyer shall be made through wire transfer to Sellers’ designated bank in Germany. Buyer shall pay all undisputed amounts invoiced by ITG within [*] after the date of the related invoice.  Prices for the Products shall be net, in Euros but invoiced in United States Dollars based on the foreign exchange rate between USD and the Euro as quoted in Yahoo! Finance in effect on the date of invoicing.
		

		
			 
		

		
			(3)  Product Inspection, Quarantine, Non-Conforming Product, Disputes:
		

		
			 
		

		
			(a) Product Inspection. Buyer shall inspect the Product without delay, but in no event later than [*] upon delivery thereof hereunder. If the Product should not pass such inspection, Buyer shall promptly notify Sellers in writing. Buyer shall, in accordance with the instructions of Sellers, either return the rejected batch to the facility or dispose of the Product, at the cost of Sellers if the Product has not been manufactured in accordance with the Standard. Any Product not rejected as
		

		
			
		

		
			

		 

		

			7

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			in this Section described shall be deemed accepted by Buyer to the extent that either thereof may contain any defect.
		

		
			 
		

		
			(b) Non-Conforming Product. If Buyer has a good faith belief that any Product does not conform to the Standard,  Buyer shall notify Sellers in writing and include a detailed explanation of the non-conformity. Upon receipt of such notice, Sellers shall investigate the alleged non-conformity and, within [*] of receipt of such notice, shall notify Buyer in writing whether or not Sellers agree that the Product is non-conforming. If Sellers agree that the Product has not been manufactured in accordance with the Standard, and is  (therefore) defective and non-conforming hereunder,  due to the negligence of Sellers, and if the then-current manufacturing capacity of Sellers available for Buyer reasonably permits, then, in Seller’s sole discretion, (i)  Sellers shall either be responsible for promptly repeating the Services which led to the non-conformity, at no cost to Buyer, and shall promptly provide to Buyer Product that conforms to the Product Specifications; or (ii) Buyer shall accept any limitation of the then-current manufacturing capacity of Sellers available for Buyer, and enjoy no obligation having to pay for the Product that has been agreed to be defective. It is agreed and understood by Buyer that any manufacture of replacement Product shall be subject to the then-current manufacturing capacity of Sellers available for Buyer, as herein set forth.
		

		
			 
		

		
			(c) Disputes. If  Sellers disagree with Buyer’s belief that the Product is non-conforming as herein provided,  then samples of the Products in question shall be submitted, initially at Buyer ́s cost and expense, to a mutually acceptable laboratory or consultant (collectively “Expert”) for resolution, whose determination of conformity or non-conformity with the Standard shall be binding upon the Parties with respect to the evaluated facts only.  If the Expert agrees with Buyer, then the Product in question shall be deemed non-conforming and Sellers shall, subject to Section 4(3)(c), without undue delay, produce Product which conforms to the Product Specifications, and the costs for the Expert shall be borne entirely by Sellers.  If the Expert determines that the Product conforms to the Product Specifications, then Buyer must accept the Product in question as conforming, non-defective and produced in accordance with the Standard and the costs for the Expert shall be borne entirely by Buyer.
		

		
			 
		

		
			Article 5
		

		
			Buyer Complaints, Incidents and Audit
		

		
			 
		

		
			(1)  Complaints Received by Buyer:  Buyer shall notify ITG as soon as practicable after receiving notice of any material third-party complaints and incidents relating to the Products. Buyer shall appropriately investigate all complaints and incidents and shall make reasonable efforts to obtain any additional medical or technical information which ITG may reasonably request for material complaints.  At the cost and expense of Buyer, Sellers shall assist Buyer in its investigations and provide reasonable technical support of any incident/complaint as required,  complying with Buyer’s quality system and/or applicable regulatory requirements.
		

		
			 
		

		
			(2)  Buyer Audit Rights: Buyer shall have the right, at least [*] (if without cause and without restriction for cause, as set forth in Section 5(4) below), to audit the facilities used by Sellers to provide Services under this Agreement and which are owned and/or controlled by Sellers, including, but not limited to, any manufacturing, production, storage, distribution, laboratory, and shipping sites. Buyer shall contact in writing Sellers with a request to audit and shall provide reasonable written [*] and, upon arrival, Buyer shall follow any reasonable requests by Sellers to conduct the audit safely and in a compliant manner. Subject to agreed confidentiality obligations imposed, or to be imposed, on all involved parties, Buyer may be accompanied by any external technical experts or consultants Buyer deems appropriate to the extent these persons sign confidentiality agreements with Sellers or, in Seller’s sole discretion, any such external technical
		

		
			
		

		
			

		 

		

			8

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

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			experts or consultants shall be deemed employees of Buyer, and Buyer shall be responsible for such persons to the same extent as Buyer is responsible for adherence to its confidentiality obligations hereunder. Sellers shall cooperate with Buyer, , in allowing and performing the audit, subject to normal business hours and not on official government holidays; provided, however, it being agreed and understood that during any such audit, Buyer and any such persons shall be accompanied by Sellers’ staff at any time.  Buyer is responsible for its direct costs of performing the audit.
		

		
			 
		

		
			(3)  Personnel. Sellers agree to have the appropriate trained staff physically present at any facility at all times that the facility is actively producing the Products or as otherwise required by applicable laws.
		

		
			 
		

		
			(4)  Audits for Cause. Audits for cause shall include,  but not be limited to, these reasons: (i) quality and compliance reasons; and/or (ii) namely the conditions that justify the allocation of Products during a short supply period.
		

		
			 
		

		
			Article 6
		

		
			Term and Termination, Survival
		

		
			 
		

		
			(1)  Initial Term: The initial term of this Agreement shall commence upon its Effective Date as provided herein and shall continue until December 31, 2035  (“Initial Term”, collectively along with any Renewal Term, hereafter, the “Term”), unless terminated prior thereto as provided below.  Any rights or obligations accrued prior to the expiration of the Term or termination of this Agreement (respectively, the “Completion Date”) shall not prejudice or preclude any remedies either Party may have under this Agreement.
		

		
			 
		

		
			(2)  Renewal Term:  After the initial term, this Agreement shall automatically be extended for successive periods of two (2) calendar years (each, a “Renewal Term”), unless either Party terminates this Agreement by giving at least [*] prior written notice to the other Party: (i)  before the expiration of the Initial Term; or (ii) prior to the expiration of any Renewal Term of this Agreement; or (iii) for cause in accordance with Section 6(3) below.
		

		
			 
		

		
			(3)  Termination for Cause: Each Party may terminate this Agreement for cause with [*] prior written notice to the other Party if the other Party:
		

		
			 
		

		
			(i)   becomes insolvent, or has a receiver or liquidator appointed or enters into a composition or bankruptcy with its creditors (except if Buyer should be the applicant with respect to ITG); or
		

		
			(ii)  materially breaches its material obligations under this Agreement and fails to commence to cure such breach within [*] of receiving written notice of breach; or
		

		
			 
		

		
			(iii) fails to pay any insurance premium required hereunder or any amount hereunder when due and fails to cure such breach within [*] of becoming aware of such failure to pay; or
		

		
			 
		

		
			(iv) fails to perform its obligations under this Agreement by reason of Force Majeure for more than [*].
		

		
			(4)  Change of Control:  For clarification, the Parties, or any acquirer of either,  shall not have the right to terminate this Agreement for Change of Control.
		

		
			
		

		
			

		 

		

			9

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			(5)  Termination for [*] by Buyer: Buyer may not terminate this Agreement for [*] during the Study Phase of this Agreement.  Buyer may only terminate this Agreement for [*] during the Commercial Phase of this Agreement as long as (i) such notice of termination is given by Buyer to Seller with at least [*] advance written notice as above in Section 6(2) set forth; (ii) Buyer agrees [*];  and (iii) upon [*] (irrespective of any marketing approval received by Buyer), Buyer pays Sellers a one-time termination for [*] fee of [*] (“termination for [*] fee”). If triggered, Buyer shall make payment of the termination for [*] fee, as in this Section provided, to Sellers within [*] hereunder. This Section does not apply to any other termination right by Buyer under this Agreement.
		

		
			 
		

		
			(6)  Completion Date. Upon the Completion Date, each Party shall have returned to the other Party any and all documentation (including copies thereof) constituting Confidential Information of the other Party and/or any of its Affiliates; provided, however, a Party may retain such documentation as may be necessary for proper record keeping in satisfaction of legal requirements. Buyer shall be responsible and liable to Sellers for any amounts related to, based upon or arising out of such termination, including for an orderly cessation of any related activities accruing prior to the Completion Date; provided, however, any and all expenditures scheduled but not actually made, due to such termination, shall be deducted from any of the foregoing amounts.
		

		
			 
		

		
			(7)  Survival: In addition to the other provisions of this Agreement explicitly stated to survive expiration or termination of this Agreement, the provisions set forth in Article 4, section 1 c); Article 5, section 2); Article 6, section 6; Article 6, section 8; and Articles 7-13 shall survive such expiration or termination in accordance with their terms.
		

		
			 
		

		
			(8)  Assignment:  In the event of a licensor’s or an assignor’s of Intellectual Property to a third party (an “Asset Sale”) related to Products, in the case of ITG, or Unlabeled PSMA-617, in the case of Endocyte, the licensor assignor’s obligations hereunder shall survive and transfer to the assignee or licensee in the definitive agreement of such Asset Sale and be documented in such definitive agreement.  The licensor or assignor will provide its counter-party to this agreement no less than [*] notice of its intent to undertake such Asset Sale in order to ensure compliance with this provision.
		

		
			 
		

		
			Article 7
		

		
			Confidentiality
		

		
			 
		

		
			(1)  Confidentiality Obligations: During the Term of this Agreement, and except as otherwise allowed herein, a  Receiving Party shall keep secret any Confidential Information of the Disclosing Party in the same manner as and to the same extent that the Receiving Party keeps its own proprietary or confidential information secret, and shall not disclose any Confidential Information (as defined below) of the Disclosing Party  to any third party without the express written consent of the Party (or its Affiliate) disclosing said Confidential Information (a “Disclosing Party”) and shall not use the same for purposes other than those specified in this Agreement. Each Receiving Party hereby agrees to return all Confidential Information of the Disclosing Party within [*] after expiration or termination of this Agreement, or sooner if requested by the Disclosing Party; provided, however, there shall be no obligation to return or destroy electronically archived Confidential Information of the Disclosing Party required to be maintained for  legal or regulatory purposes.
		

		
			 
		

		
			(2)  Press Release. Each Party agrees that each Party may issue a press release or inform investors and the public about the execution of this Agreement on or after the Effective Date of this
		

		
			
		

		
			

		 

		

			10

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Agreement; provided, however, that the Party wishing to make a disclosure in this regard shall obtain in advance in writing from the other Party consent as to the scope and content of the disclosure, which consent shall not be unreasonably withheld. The Parties shall enter into a joint press release to announce the signing of this Agreement within Twenty-Four (24) hours of the Effective Date of this Agreement.
		

		
			 
		

		
			(3)  Liability. Each Party agrees to indemnify, defend and hold the other Party and/or any of its Representatives harmless from and against any and all obligations, damages, liabilities, claims, suits, awards, judgments, losses, costs and/or expenses, whether based on product liability or otherwise, including any court costs and/or reasonable attorneys’ fees (“Costs”) resulting from or arising out of breach by it and/or any of its Representatives of the provisions of this Article.
		

		
			 
		

		
			(4)  Regulatory Exception. The Receiving Party may disclose Confidential Information of the Disclosing Party when required by law or regulation to do so; provided, however, the Receiving Party shall use commercially reasonable efforts to notify in advance the Disclosing Party without undue delay in writing of the intended disclosure (except where prohibited by law or regulation to do so) and shall minimize the disclosure solely to the extent necessary to comply with such requirement.  If prohibited by applicable laws to notify in advance, the Receiving Party shall instead notify promptly in writing the Disclosing Party at the time the Receiving Party makes its required disclosure and take all reasonable actions to minimize the extent of such disclosure.
		

		
			 
		

		
			(5)  Confidentiality Term. The confidentiality obligations under this Article 7 shall survive for a period of [*] following the expiration or termination of this Agreement.
		

		
			 
		

		
			Article 8
		

		
			Covenants, Intellectual Property
		

		
			 
		

		
			(1)  Sellers Covenants:  Sellers covenants to Buyer that: (i)  Products received by Buyer under this Agreement shall be free of defects or damage (not to apply to defects or damage resulting from mishandling or improper use of the Product by Buyer or its agents or representatives, or, if caused by Buyer or its agents or representatives, in case of the Product’s exposure to adverse conditions and where such handling, use or exposure by Buyer or its agents or representatives is not in accordance with the Standard) and Sellers shall manufacture the Product in accordance with the Standard; (ii) Sellers  shall perform the Services in accordance with the Standard; provided, however, Sellers shall have no liability with respect to the Product, and be conclusively deemed not negligent (y) as long as Sellers follows the standard manufacturing, storage and other practices used in the [*] in performing its respective obligations which means, among other things, that Sellers may rely on the correctness and completeness of the Product Specifications and/or any information or direction by or on behalf of Buyer, and compliance with these practices shall be deemed conclusively proven by the batch documentation compiled in accordance with the Quality Agreement; (z) if it can be shown, by way of the batch documentation, other documents or samples of the Product, that the Product has been manufactured in accordance with the Standard, and Sellers shall have no liability, including for lack of information or if such information should not be proper for the manufacture, if the Product has been manufactured in accordance with the Standard; (iii) Sellers shall make and supply the Products in accordance with all applicable laws, regulations and restrictions; (iv) Sellers have title and may lawfully sell the Products to Buyer; (v) Sellers have no obligation and shall not incur any obligation which shall prevent them from fulfilling their obligations under this Agreement; (vi) no employee, agent or subcontractor of Sellers, who has been disbarred under 21 U.S.C. §335(a), (b)(1), and (b)(2), or under similar laws in Germany, shall perform any Services under this Agreement nor shall any employee, agent or subcontractor who may become disbarred during the performance of the Services; (vii) Sellers are duly authorized to enter into this Agreement with Buyer; and (viii) other than solely due to the Confidential Information provided by
		

		
			
		

		
			

		 

		

			11

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Buyer, none of the Services hereunder nor the Products shall infringe the Intellectual Property rights of any third party in the European Union.
		

		
			 
		

		
			(2)  Exclusions:  Sellers covenant in Article 8(1)(i)  shall not apply to defects or damage resulting from mishandling or improper use of Products by Buyer, its agents and/or representatives, or, if caused by Buyer, its agents and/or representatives, in case of the Product’s exposure to adverse conditions and where such handling, use or exposure by Buyer or its agents, Affiliates or representatives is not in accordance with the Product Specifications.
		

		
			 
		

		
			(3)  Buyer’s Covenants. Buyer covenants to Sellers that (i) Buyer shall accept title to, and may lawfully purchase, the Products from Sellers; (ii) Buyer shall have no obligation and shall not incur any obligation which would prevent Buyer from fulfilling its obligations under this Agreement; (iii) no employee of Buyer who has been disbarred under 21 U.S.C. §335(a), (b)(1), and (b)(2), or similar laws anywhere in the world, shall perform any obligations of Buyer under this Agreement and neither shall any employee, agent, Affiliate or subcontractor of Buyer who may become disbarred during the performance of the Services; (iv) Buyer is duly authorized to enter into this Agreement with Sellers and that Buyer may lawfully buy the Products from Sellers; and (v) other than solely due to the Confidential Information provided by Sellers, neither any of the Services provided hereunder nor the Products shall infringe the Intellectual Property rights of any third party anywhere in the world.
		

		
			 
		

		
			(4)  Intellectual Property. Except as granted under this Agreement, Buyer and/or any of its Affiliates shall not acquire any right, title or interest in any and all Intellectual Property of Sellers and/or any of its Affiliates.  Any right, title or interest in and to such Intellectual Property existing prior to the Effective Date (respectively, “Pre-Existing IP”) shall not in any way be affected by this Agreement.  Any invention, improvement, enhancement or alike made, and conceived, reduced to practice and/or generated during the Term solely in respect of Endocyte’s Final Product, if severable from the Product (“Buyer Invention”), shall be owned by Buyer, without any restrictions, including the right to assign, transfer and sublicense. Any invention, improvement, enhancement or alike made, and conceived, reduced to practice and/or generated during the Term solely in respect of (i) the Product; (ii) Endocyte’s Final Product, if not severable from the Product and based on the combination of the Product with Endocyte’s Final Product; (iii) the manufacture of the Product, including any manufacturing process generally applicable or only in respect of the Product, other than any Buyer Invention (individually and collectively, “Product Invention”), shall be owned by Sellers or any of its Affiliates, without any restrictions, including the right to assign, transfer and sublicense..
		

		
			 
		

		
			Article 9
		

		
			Disclaimer of Implied Warranties and Limitation of Liabilities, Insurance
		

		
			 
		

		
			(1)  Disclaimer of Implied Warranties. SELLERS DOES NOT MAKE ANY REPRESENTATION OR WARRANTY, OR ANY COVENANT, OTHER THAN EXPRESSLY SET FORTH HEREIN, WHETHER STATUTORY OR OTHERWISE, EXPRESS OR IMPLIED. ANY COVENANT BY SELLERS SET FORTH IN THIS AGREEMENT IS EXCLUSIVE AND IN LIEU OF ANY OTHER COVENANTS, OR ANY WARRANTIES OR REPRESENTATIONS, WRITTEN OR ORAL, DIRECT, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, EXPRESS OR IMPLIED COVENANTS, REPRESENTATIONS OR WARRANTIES FOR MERCHANTABILITY, QUALITY OR FITNESS FOR A PARTICULAR PURPOSE.
		

		
			 
		

		
			(2)  Limitation of Liability. SELLERS SHALL NOT BE LIABLE FOR DELAYS OR FAILURES TO THE EXTENT CAUSED BY THE FAILURE OF BUYER TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT. SELLERS SHALL NOT BE LIABLE FOR DELAYS OR
		

		
			
		

		
			

		 

		

			12

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			FAILURES TO THE EXTENT CAUSED BY LACK OF PRODUCTION CAPACITY, EXCEPT AS HEREIN PROVIDED.
		

		
			 
		

		
			(a) Buyer shall be informed of any delivery delay caused by Sellers as soon as possible if unforeseen circumstances cause any such delay in which event Buyer agrees to grant an extension grace period; provided, however, Sellers may take into account such factors as facility capacity, other production commitments and similar business factors. If Sellers should not be able to timely fulfill (whether in part or full) a purchase order in accordance with the terms hereof, Sellers shall notify Buyer thereof (in writing, by email), and the Parties shall discuss, and agree in good faith within [*] on an alternative delivery date for the Product, such agreement not to be unreasonably withheld. Upon any such inability (other than Force Majeure) to cure, Buyer may cancel all binding purchase orders accepted by Sellers affected by such inability, such cancellation being the sole remedy for any such delay or inability to deliver. Any delay in the manufacture of the Product arising from inadequate delivery of the raw materials (whether such delay is based on inadequacy of quality, quantity, missing documents or otherwise) shall postpone any delivery date requested by Buyer and previously confirmed by Sellers until such other date that Sellers may reasonably determine in its sole discretion, after good faith consultation of Buyer, taking into account such factors as facility capacity, other production commitments and similar business factors.
		

		
			 
		

		
			(3)  Special Damages. (a) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER A PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE TO THE OTHER PARTY AND/OR ANY OF ITS AFFILIATES FOR ANY REASON WHATSOEVER (EVEN UPON THE OCCURRENCE OF A TORT WITH RESPECT TO THE PRODUCT OR OTHERWISE) FOR (I) LOSS OF PROFITS, WHETHER ACTUAL OR ANTICIPATED (EXCEPT ANY PROFITS CONTAINED IN THE PRICES TO WHICH SELLERS MAY BE ENTITLED FOR COMPLETION OF ITS CONTRACTUAL OBLIGATIONS); (II) LOSSES CAUSED BY BUSINESS INTERRUPTION; (III) LOSS OF GOODWILL, BUSINESS OR REPUTATION; (IV) LOSS OF OR CORRUPTION OF DATA; AND/OR (V) ANY INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, MULTIPLE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LOSS OR DAMAGE, ARISING OUT OF OR IN CONNECTION WITH THE PRODUCTION, SALE, SUPPLYING, OR FAILURE OR DELAY IN SUPPLYING, OR USE OF, THE PRODUCT OR PERFORMING THE SERVICES OR ANY OTHER OBLIGATION UNDER THIS AGREEMENT, EVEN IF SUCH COSTS, EXPENSES, LOSS OR DAMAGE WAS REASONABLY FORESEEABLE OR MIGHT REASONABLY HAVE BEEN CONTEMPLATED BY EITHER PARTY, AND WHETHER OR NOT ARISING FROM BREACH OF CONTRACT, TORT, ANY TYPE OF NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE, EXCEPT IF ANY OF THE FOREGOING ARISES OUT OF A BREACH OF ANY CONFIDENTIALITY OBLIGATIONS CONTAINED IN THIS AGREEMENT.
		

		
			 
		

		
			(b) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IT IS EXPRESSLY AGREED BY EACH PARTY THAT NO REPRESENTATIVE OR AFFILIATE OF SELLERS SHALL ASSUME ANY LIABILITY, AND SELLERS EXCLUSIVELY SHALL BE LIABLE FOR THE PERFORMANCE OF ANY OF ITS REPRESENTATIVES OR, IF ANY, ITS AFFILIATES, TO THE SAME EXTENT AS IF SELLERS HAD PERFORMED OR FAILED TO PERFORM, ALL AS CONTEMPLATED OR REQUIRED HEREUNDER, AND ANY CLAIM MADE BY BUYER UNDER THIS AGREEMENT (INCLUDING THE QUALITY AGREEMENT AND ANY RIGHTS AND/OR OBLIGATIONS THEREUNDER, ALL OF WHICH SHALL BE SUBJECT TO THIS AGREEMENT, INCLUDING THOSE THAT SHALL SURVIVE THEREUNDER) SHALL EXCLUSIVELY BE MADE AGAINST SELLERS.
		

		
			
		

		
			

		 

		

			13

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			(c) Willful. For clarity, any of the limitations of the liability of Sellers for itself and/or for any of its Affiliates contained in this Agreement shall not apply in the event of willful misconduct or willful omission of Sellers and/or of any of its Affiliates.
		

		
			 
		

		
			(4)  Insurance. During the Term and for [*] thereafter, Buyer shall, with respect to the Product [*], either self-insure or maintain product liability insurance coverage with a reputable international insurance company, of at least [*].  During the Term of this Agreement and for a period of [*] thereafter, Sellers shall carry product liability insurance coverage (to the extent commercially reasonable and practicable and if otherwise, Sellers shall remain responsible and liable for such coverage in this sentence set forth) in the amount not less than [*],  with a reputable carrier, which coverage shall include (namely be reduced by) attorneys’ fees and/or court fees.  Each Party shall supply the other with a certificate of insurance upon request.
		

		
			 
		

		
			Article 10
		

		
			Liability and Indemnification
		

		
			 
		

		
			(1)  By Buyer. Except as expressly set forth in this Agreement, Buyer shall indemnify, defend (upon specific written request of Sellers) and hold harmless Sellers and Sellers’ officers, directors, employees, agents, successors and assignees  permitted hereunder, from and against any and all Costs suffered as a result of any third-party claim (excluding by Affiliates of Sellers) in any way arising from or relating to or resulting from  (i) any breach of this Agreement by Buyer; (b) any misrepresentation,  negligent or willful act or omission by Buyer or of anyone under Buyer’s control related to Buyer’s obligations under this Agreement;  (c) intellectual property infringement by Buyer with the use of Endocyte Final Product containing the Sellers’ Product; and/or (d) the sale, distribution by or on behalf of Endocyte and/or other use of the Product and/or Endocyte’s Final Product containing Product, each subject to Seller’s indemnity obligations in Section 10(2).
		

		
			 
		

		
			(2)  By Sellers. Except as expressly set forth in this Agreement, Sellers and/or any of its Affiliates shall have no responsibility and no liability vis-à-vis Buyer except for any claim resulting from or arising out of any negligence of Sellers and/or any of its Affiliates providing services under this Agreement up to [*], in the aggregate per each calendar year during the Term. Subject to the immediately preceding sentence, Sellers shall indemnify, defend (upon specific written request of Buyer) and hold harmless Buyer and Buyer’s officers, directors, employees, agents, successors and assignees  permitted hereunder, from and against any and all Costs suffered as a result of a claim of any third-party claim (excluding by Affiliates of Buyer), in any way arising from or relating to or resulting from (i) any breach of this Agreement by Sellers; (ii)  any negligence or willful misconduct by Sellers or of anyone under Sellers’ control related to Sellers’ obligations under this Agreement;  and/or (iii)  intellectual property infringement by Sellers with the use of the Products, processes and methods under the patent or intellectual property laws of the European Union or any member state thereof.
		

		
			 
		

		
			Article 11
		

		
			Miscellaneous
		

		
			 
		

		
			(1)  Amendments: Any amendment or modification of any provision of this Agreement, specifically including this Section, shall not become effective unless made in writing and duly signed and executed by each of the Parties. This Agreement has not been supplemented with verbal agreements.
		

		
			 
		

		
			(2)  Assignment:  This Agreement shall inure to the benefit of and be binding upon each Party and,  subject to the provisions hereof,  its Affiliates and successors and permitted assignees of a Party.
		

		
			
		

		
			

		 

		

			14

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			No Party may assign any of its rights and/or obligations under this Agreement (by operation of law or otherwise) hereunder without the prior written consent of the other Party, [*]. It is agreed between the Parties that an assignee has to agree to assume any rights and obligations of Buyer or Sellers under this Agreement, so that such assignee shall have the same rights and obligations to Buyer or Sellers as hereunder agreed by the Parties, irrespective of the assignee acquiring the Product, Endocyte’s Final Product or the entire company. Any permitted assignee shall assume any and all rights and obligations of its assignor, as set forth under this Agreement; provided, however, no assignment shall release the original assigning Party (“assignor”) of its confidentiality obligations or confidentiality liabilities hereunder. Any attempted assignment not in accordance with this Article 12, Section (2) shall be void.
		

		
			 
		

		
			(3)  Legal Notices: Except as otherwise specified in this Agreement, all legal notices and other legal communications required or permitted under this Agreement shall be in writing and in English (and any and all costs and/or expenses associated with necessary translation shall be borne by the incurring Party), and shall be deemed given when sent by facsimile transmission to a number exchanged and agreed to in writing by the Parties, or when delivered by hand,  or by certified mail (return receipt requested), or by express courier service (signature required) to the mailing address of the other Party, as specified in this Section below (and for greater certainty, be deemed unduly given if delivered by email). Either Party may change its address,  or facsimile transmission number by giving the other Party written notice of the new address(es) or facsimile transmission number and the date upon which either shall become effective.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						If to Buyer:

					
					
						Endocyte, Inc.

				
	
					
						 

					
					
						Attn. Chief Financial Officer

				
	
					
						 

					
					
						3000 Kent Avenue, Suite A1-100

				
	
					
						 

					
					
						West Lafayette, Indiana 47906-1075, United States

				
	
					
						 

					
					
						Facsimile: +1 (765) 463-9271

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						If to Sellers:

					
					
						ITG Isotope Technologies Garching GmbH

				
	
					
						 

					
					
						Attn. Managing Directors

				
	
					
						 

					
					
						Lichtenbergstraße 1, 85748 Garching, Germany

				
	
					
						 

					
					
						Facsimile: +49 89 32 98 98 666

				

		
			 
		

		
			(4)  Entire Agreement: This Agreement (and the Quality Agreement) constitutes and contains the entire agreement between the Parties with respect to the matters set forth or contemplated in this Agreement and supersedes in any and all respect any prior communication, proposal, quotation, negotiation, conversation, correspondence, discussion, term sheet, previous and prior agreements (except [*] in [*]), correspondence and understandings between them or equivalent, concerning the matters set forth or contemplated in this Agreement, and any terms and conditions thereof shall be null and void.
		

		
			 
		

		
			(5)  Severability: Should any provision of this Agreement be held (by a court of competent jurisdiction) null, void, invalid or unenforceable or be incomplete this shall not affect the validity of the remaining provisions. Any provision of this Agreement held void, invalid or unenforceable shall be replaced by a mutually agreed provision that is effective, valid and enforceable and in compliance with the lawful purposes and intentions as contained in or determinable under this Agreement. The Parties to this Agreement shall find a settlement which meets as closely as possible in a legally acceptable manner the economic intent of each Party in lieu of the provision that is null and void or incomplete. Any matter not initially considered shall be resolved by incorporating such reasonable provision to complete this Agreement which approaches to the maximum extent such lawful purposes and intentions.
		

		
			
		

		
			

		 

		

			15

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			(6)  Internal Resolution of Disputes: The Parties shall endeavour to amicably settle and resolve any dispute by direct negotiation between them in connection with this Agreement, acting in good faith,by negotiations between designated representatives who have authority to settle the controversy and who are from levels of management higher than the persons with direct responsibility for administration of this Agreement, for at least [*] prior to resorting to any arbitration, or enforcing any arbitration award by court action, and within [*] after delivery of an initial notice of a dispute, the receiving Party shall submit to the other a written response.  The notice and the response shall include a statement of that Party’s position and a summary of arguments supporting that position, and the name and title of the representative who shall represent that Party and of any other person who shall accompany the representative. Without unreasonable delay, such representatives shall initially meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by a Party to the other Party shall be honored. All negotiations are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable Swiss rules of evidence. If one Party fails to participate in the negotiation as agreed herein, the other Party may commence arbitration prior to the expiration of the time periods set forth above. If no amicable settlement and good faith resolution thereof has been achieved within [*], such dispute may be brought by written notice to the executive management representatives who shall use reasonable endeavors to amicably settle and in good faith resolve such dispute within [*] of receipt of such notice. If no amicable settlement and good faith resolution thereof has been achieved within such further time period, such dispute shall be brought by written notice to the highest management representatives who shall use reasonable endeavors to amicably settle and in good faith resolve such dispute within further [*] of receipt of said further notice.
		

		
			 
		

		
			(7)  Interpretation: This Agreement is written in English which shall be used for official interpretation of this Agreement. All notices and other communications hereunder and/or any Product-Specific Agreement shall be in English. The headlines of the Articles and the Sections are for convenience of reference only and shall not affect the interpretation of this Agreement. This Agreement and the Quality Agreement shall be construed and interpreted in the English language; provided, however, any understanding or interpretation of any legal term contained or referred to in this Agreement shall solely be defined and interpreted in accordance with the laws of Switzerland, irrespective of any other meanings or interpretations under any other source or body of law as may be found applicable to this Agreement by any court that may claim or assess jurisdiction under any conflict-of-laws provisions or otherwise, any of which other meanings or interpretations shall have no application to and be of no force and effect with respect to the matters herein set forth, referred to or contemplated
		

		
			 
		

		
			(8)  Relationship of the Parties: Buyer and Sellers are independent parties under this Agreement. Nothing contained in this Agreement is intended nor is it to be construed or shall be deemed to create a partnership, a joint venture or a relationship of an agent with its principal or an employer with its employee,  so as to constitute Buyer and Sellers as partners or joint venturers with respect to this Agreement. Except as herein specifically set forth, no Party or any of its Affiliates shall have authority to make any statements, press releases, representations or commitments of any kind, or take any action which shall be binding on the other Party and/or any of its Affiliates, except as may be expressly authorized in writing which authorization shall not be unreasonably withheld.
		

		
			 
		

		
			(9)  Force Majeure:  Notwithstanding anything else in this Agreement, no Party shall be responsible or liable to the other Party and/or any of its Representatives for failure or delay in performing any obligations or for other non-performance if such failure, delay or other non-
		

		
			
		

		
			

		 

		

			16

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			performance is caused by or arises from  any strike, stoppage of labor, lockouts or other labor disputes or trouble,  shortage of production capacity at any nuclear reactor, energy or raw material or any inability to obtain any materials or shipping space, breakdown or delays of carriers or shippers, default or delay by any supplier or sub-contractor or other events due to internalization of operations and services typically and customarily provided by a third party, riots, civil disturbances, actions or inactions of Governmental Authorities or suppliers,  governmental or administrative act or restraint,  epidemics, war, terrorist attacks, embargoes, severe weather, fire, flood, lightning, fog, storm, unusual weather conditions, explosion, accident,  earthquakes,  volcanic ash or any other volcanic activity, or acts of God, any public enemy, sabotage, invasion, war (declared or undeclared), terrorism, embargo, prohibition on import or export of the Product or materials incorporated therein or parts thereof, or any matter or cause that is unavoidable by or beyond the reasonable control of the affected Party (any such event, “Force Majeure”).  A Party shall be under no obligation to settle a strike, labor stoppage, lockout, or any other labor trouble by entering into any agreement to settle any thereof and until any such matter is settled to the satisfaction of the affected Party, such matter shall continue to be deemed Force Majeure. A Party claiming Force Majeure shall without undue delay notify the other Party specifying the cause and probable duration of the failure, delay or other non-performance. Neither Sellers nor any of its Affiliates shall be under any obligation to fulfill any purchase order which has been, or should have been scheduled to be performed during a time period of Force Majeure; provided, however, a Party so affected shall undertake every reasonable effort to fulfill its contractual obligations to the extent reasonably possible under the circumstances and in case of Force Majeure the Buyer shall be allowed to procure its needs for Product from any other source to the extent the Force Majeure is not caused by the Buyer. If the Force Majeure event lasts longer than [*], the parties will meet to evaluate options to address the Force Majeure with both sides’ consent and as reasonably prudent.
		

		
			 
		

		
			(10) Counterparts:  This Agreement may be executed in one or more counterparts (including by means of facsimile or electronic submission of a document in portable document format), each of which shall be deemed an original but all of which together shall constitute one and the same instrument, notwithstanding variations in format or file designation that may result from the electronic transmission, storage and printing of copies of this Agreement from separate computers or printers. Facsimile or digital signatures shall be treated as original signatures.
		

		
			 
		

		
			(11) Effective Date: This Agreement is entered into by the Parties effective as of the last day signed below by the Parties.
		

		
			 
		

		
			(12) Timely Performance. Any failure by either Party to request performance or non-performance by the other Party or to claim a breach of this Agreement shall neither be construed as a waiver of any right under this Agreement nor affect any subsequent failure to request performance or non-performance or claim a breach, nor affect the effectiveness, validity and enforceability of this Agreement or any part thereof nor prejudice or preclude such Party with respect to any subsequent action. Any request for performance or non-performance by either Party or claim of a breach of this Agreement, including breach of this Section, shall be effective, valid and enforceable only if such request or claim is reduced to writing.
		

		
			 
		

		
			Article 12
		

		
			Additional Definitions
		

		
			
		

		
			

		 

		

			17

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			1. “Affiliate” means, with respect to Buyer, any entity controlled by Buyer, for only so long as such control exists,  and with respect to Sellers, any person, firm, company, or entity which is directly or indirectly controlled by the parent company of Sellers (namely ITM Isotopen Technologien München AG, a company duly organized and existing under the laws of Germany, with its principal place of business located at Schleissheimer Strasse 91, 85748 Garching, Germany),  and “control” refers to: (i) the possession, directly or indirectly, of the power to direct the management, business or policies of an entity, whether through the ownership of voting securities, by contract or otherwise, or (ii) the ownership, directly or indirectly, of more than Fifty Percent (50%) of the voting securities or other ownership interest of an entity.
		

		
			 
		

		
			2. “Confidential Information” shall mean all information or data of a confidential or proprietary nature, as determined by the Disclosing Party, relating, in any manner, to the business or prospects of a Party, including but not limited to, all Intellectual Property of a Party, which, during the Term of this Agreement, is (i) disclosed to a Party or its Affiliate (“Receiving Party”); or (ii) is otherwise discerned by a Receiving Party incident to the negotiation or performance of this Agreement; or (iii) disclosed by the Disclosing Party in tangible form and identified as confidential in writing; or (iv) orally disclosed by the Disclosing Party, and within [*] thereafter reduced to tangible form, identified as confidential in writing and delivered to the Receiving Party; or (v) observed or heard by a Party at the other Party’s premises and delivered in writing by such latter Party within [*] thereafter identified as confidential; provided, however, for all purposes hereof, failure to identify the information as confidential in writing shall not destroy the confidential nature thereof, whereas no failure whereof shall serve as conclusive evidence between the Parties that the information is considered confidential by and between the Parties, all of the foregoing exclusive of data or information which the Receiving Party can successfully demonstrate: (w) is or becomes known to the public other than through a breach of this Agreement; or (x) is information the Receiving Party can successfully demonstrate by written records existing at the time of disclosure was already known to the Receiving Party prior to the disclosure to Receiving Party by Disclosing Party; or (y) is information received from a third party who is not under an obligation to keep such information confidential; or (z) is information that the Receiving Party can demonstrate was independently developed by the Receiving Party without a breach of this Agreement or reliance on any Confidential Information of the Disclosing Party.
		

		
			 
		

		
			3. “Change of Control” means any acquisition, change in beneficial ownership, reorganization, merger, consolidation or any other related transaction involving a Party where that Party is not a surviving entity, or where that Party owns or controls Fifty Percent (50%) or less of the resulting entity. For the avoidance of doubt, capital raising transactions, such as an IPO, that materially change the shareholder base whereby new shareholders own more than Fifty Percent (50%) of outstanding shares previously owned by legacy shareholders shall not constitute a Change of Control under this transaction.
		

		
			 
		

		
			4. “EMA” shall mean the European Medicines Agency, and any successor authority.
		

		
			 
		

		
			5. “Endocyte Final Product” shall mean the result of the combination of the Product with PSMA-617 resulting in Lu-177 PSMA-617.
		

		
			 
		

		
			6. “FDA means the Food and Drug Administration of the United States, and any successor authority.
		

		
			 
		

		
			7. “GMP” means the set of guidelines established by EMA by which drugs and medical devices are manufactured, including, if so separately agreed, the current Good Manufacturing Practices of the FDA, as set forth in 21 C.F.R. § 210, 211, and cGLP, current Good Laboratory Practices, as set forth in 21 C.F.R. § 58.
		

		
			
		

		
			

		 

		

			18

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			8. “Government Official” or “Public Official” means any officer or employee or anyone acting in an official capacity on behalf of: (i)  a government or any department or agency thereof; (ii) a public international organization (including, but not limited to,  the United Nations, the International Monetary Fund, the International Red Cross, or the World Health Organization), or any department or agency or institution thereof; or (iii) a government-owned or controlled company, institution, or other entity, including a government-owned nuclear reactor or research lab, or government-owned hospital or university.
		

		
			 
		

		
			9. “Government Authority” means any court, tribunal, arbitrator, commission, authority, department, agency, ministry, official (including Public Official) or other instrumentality of, or being vested with, public authority under any law of any country (including any political subdivision thereof), association or federation of countries, county, or municipality, including but not limited to any regulatory authority.
		

		
			 
		

		
			10.“Intellectual Property” means, without limitation, Confidential Information, technical information, any intellectual property (whether patentable, registered or otherwise) as well as any and all rights thereto, including, but not limited to, patents, any issued patents or pending patent applications or provisional applications, including any substitutions, derivatives, re-examinations, confirmations, extensions, supplemental patent certificates, reissues, renewals, divisions, continuations or continuations-in-part thereof, trademarks, trademark applications, trade names, trade dress, trade secrets, know-how (including in respect of the Production and processing procedure), data, results, confidential and/or proprietary information, discoveries, enhancements and/or optimizations or alike, which may subsist anywhere in the world, whether capable of grant or registration inventions  (including Inventions), designs, improvements (all of the foregoing whether or not patentable,  registered or unregistered), all patent rights and all other intellectual property and proprietary rights in such inventions, designs and improvements; copyrightable works (including derivative works) and all copyrights therein; and trade secrets, ideas, process techniques, know-how, trademarks and data (including all rights therein).
		

		
			 
		

		
			11.“Invention” shall mean any Intellectual Property made, conceived, reduced to practice and/or generated, either jointly by the Parties or individually, by Buyer or Sellers, as the case may be, arising from, and/or as a development to the Intellectual Property used hereunder for the Product and/or its Production.
		

		
			 
		

		
			12.“Quality Agreement” means an agreement between Buyer and Sellers that describes the pharmaceutical responsibilities of the Parties under this Agreement.
		

		
			 
		

		
			13.“Product Specifications” always means the then-current specifications, initially compiled in writing by Sellers for the applicable Product and contained in Annex 5 of this Agreement, also being a written statement of a Product’s required characteristics upon completion of the production process and all related quality assurance and control procedures for finishing the Product and that is documented in a manner that facilitates its procurement, production and acceptance.
		

		
			 
		

		
			14.“Unlabelled PSMA-617” means 2-[3-(1-Carboxy-5-{3-naphthalen-2-yl-2-[(4-{[2-(4,7,10-tris-carboxymethyl-1,4,7,10-tetraaza-cyclododec-1-yl)-acetylamino]-methyl}-cyclohexanecarbonyl)-amino]-propionylamino}-pentyl)-ureido]-pentanedioic acid.
		

		
			 
		

		
			Article 13
		

		
			UN Convention, Arbitration, Governing Law.
		

		
			
		

		
			

		 

		

			19

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			(1)  Convention. The United Nations Convention on Contracts for the International Sale of Goods shall have no application to, and shall be of no force and effect with respect to, the matters set forth or contemplated in this Agreement.
		

		
			 
		

		
			(2)  Arbitration. If any controversy, claim or dispute arising out of, or in relation to, this Agreement, is not amicably resolved after expiration of all such periods set forth above, including the validity, invalidity, breach, expiration or termination thereof, the matter shall be settled by binding arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers’ Arbitration Institution in force on the date on which a notice of arbitration is submitted in accordance with such rules (which shall, in addition to the material laws of Switzerland, be the sole and exclusive rules and procedures for the resolution of any such controversy, claim or dispute, and any and all applicable statutes of limitation shall be tolled while the procedures specified or referred to herein are pending).
		

		
			 
		

		
			(a) Proceedings. The Parties shall select [*] expert in the field of the Product and its manufacture, unless agreed to otherwise by the Parties, who shall make [*] determination exclusively applying the substantial laws of Switzerland, subject to the provisions hereof, and [*] shall also be [*] of at least [*] qualification and in good standing. The seat of the arbitration tribunal and the place of arbitration shall be in Zurich, Switzerland.
		

		
			 
		

		
			(b) Decision. A reasoned arbitration decision, that only applies the substantial laws of Switzerland, shall be rendered in writing within a reasonable period of time and shall be binding and not be appealable to any court in any jurisdiction, and the Parties waive all challenge of the decision. The [*] shall have no power or authority to award damages waived under any limitation of liabilities provision herein. The [*] shall not act as amiable compositeur.
		

		
			 
		

		
			(c) Costs. The Parties shall initially share equally the cost of the arbitration filing and hearing fees, and the cost of the [*]; provided, however, the prevailing Party shall be entitled to indemnification by the other Party of such costs as well as its reasonable attorneys’ fees and associated costs and expenses, unless the [*] shall decide that under the totality of the circumstances a contrary result would be appropriate, which contrary decision shall be final and binding.
		

		
			 
		

		
			(d) Language, Confidentiality. The language used in the arbitration proceedings shall be English. The proceedings, including any outcome, shall be confidential.
		

		
			 
		

		
			(e) Awards. For all claims arising hereunder, the [*] award shall be final and binding upon the Parties, and judgment upon the award may be entered by any court having jurisdiction thereof. All monetary awards shall be stated and payable in Euros. Each of the Parties irrevocably waives its right, if any, to a trial by jury, and agrees that all prior negotiations and proceedings relating to such claims as provided herein shall be deemed inadmissible compromise negotiations. If either Party seeks to initiate a legal action or proceeding inconsistent with these provisions, the other Party shall be entitled to recover all costs and expenses, including reasonable attorneys’ fees, incurred in defense of such action or proceedings; provided, however, nothing in this Section shall preclude any Party from filing a complaint and seeking interim or other provisional relief from a Swiss court of competent jurisdiction, including a temporary restraining order, preliminary injunction or other interim equitable relief, concerning a dispute either prior to or during any arbitration if, in its sole judgment, necessary to protect the interests of such Party or to preserve the status quo pending the arbitration proceeding, in aid of arbitration, and despite such action, the Parties shall continue to participate in good faith in the procedures specified herein.
		

		
			
		

		
			

		 

		

			20

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			(3)  Governing Law and Venue. This Agreement, its Annexes, the Quality Agreement and any and all of its attachments, and amendments hereof or thereof, shall be construed and interpreted in accordance with and governed by the laws of Switzerland without giving effect to any conflict-of-laws provisions. The competent courts of Zurich, Switzerland, shall, subject to the provisions hereof, have exclusive jurisdiction over any dispute between the Parties in connection with this Agreement and subject hereto, and each of the Parties agrees to submit to such exclusive jurisdiction.
		

		
			 
		

		
			(Page remainder left blank intentionally, immediately followed by the signatures page.)
		

		
			
		

		
			

		 

		

			21

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Signed and semi-executed on, for and on behalf of:
		

		
			 
		

		
			Endocyte, Inc.
		

		
			 
		

		
			West Lafayette, Indiana, dated         July         (month)      5th      (day), 2018
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						/s/ Michael Sherman

					
					
						 

				
	
					
						Michael Sherman

					
					
						 

				
	
					
						CEO

					
					
						 

				

		
			 
		

		
			Signed and counter-executed on, for and on behalf of:
		

		
			 
		

		
			ITG Isotope Technologies Garching GmbH
		

		
			 
		

		
			Garching, dated July 05, 2018
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Steffen Schuster

					
					
						    

					
					
						/s/ Thomas Dürre

				
	
					
						Steffen Schuster

					
					
						 

					
					
						Thomas Dürre

				
	
					
						CEO

					
					
						 

					
					
						CFO

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Annex 1:

					
					
						Contract Products

				
	
					
						Annex 2:

					
					
						Prices for Contract Products

				
	
					
						Annex 3:

					
					
						ITG Order Instructions

				
	
					
						Annex 4:

					
					
						[*] Forecast by Buyer for 2018 – 2028

				
	
					
						Annex 5:

					
					
						Product Specifications

				

		
			 
		

		
			
		

		
			

		 

		

			22

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Annex 1:  Contract Products
		

		
			 
		

		
			 
		

		
			Contract Products
		

		
			 
		

		
			1.  EndolucinBeta®  (n.c.a.  Lu-177)
		

		
			 
		

		
			2.  Lu-177 n.c.a.  [*]
		

		
			 
		

		
			Where Lu means Lutetium and n.c.a means non-carrier added form of Lutetium
		

		
			 
		

		
			
		

		
			

		 

		

			23

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Annex 2:  Prices for Contract Products
		

		
			 
		

		
			Study Phase: The period from Effective Date of this Agreement until Buyer triggers its first commercial country launch of Endocyte Final Product following receipt of a full (not preliminary, contingent or interim) marketing authorization allowing sale of such Endocyte Final Product in that first country.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article No.

					
					
						Description

					
					
						Activity

					
					
						[*] Price in Euros

				
	
					
						A120

					
					
						EndolucinBeta®

					
					
						[*]

					
					
						[*]

				
	
					
						 

					
					
						Lu-177 n.c.a.  [*]

					
					
						[*]

					
					
						[*]

				

		
			 
		

		
			Commercial Phase:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Description

					
					
						Activity

					
					
						 

				
	
					
						 

					
						 

					
					
						Lu-177 n.c.a.  [*]

					
					
						[*]

					
					
						 

				

		
			 
		

		
			Price – Volume Tiers:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						If Buyer orders the equivalent of...

					
					
						...then the price for Product [*]
shall be:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						[*]

					
					
						[*]

				
	
					
						 

					
					
						[*]

					
					
						[*]

				
	
					
						 

					
					
						[*]

					
					
						[*]

				

		
			 
		

		
			Other Special Conditions for High-Volume Supplies:
		

		
			 
		

		
			[*] to be paid by Endocyte Inc.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						[*] required per week

					
					
						Notification period in advance [*]

					
					
						[*]

				
	
					
						[*]

					
					
						[*]

					
					
						[*]

				
	
					
						[*]

					
					
						[*]

					
					
						[*] (or, [*] for this range)

				
	
					
						[*]

					
					
						[*]

					
					
						[*] (or, [*] for this range)

				
	
					
						[*]

					
					
						[*]

					
					
						[*] (or, [*] for this range)

				
	
					
						[*]

					
					
						[*]

					
					
						[*] (or, [*] for this range)

				
	
					
						[*]

					
					
						[*]

					
					
						[*] (or, [*] for this range)

				

		
			 
		

		
			At the conclusion of each notification period required in the above table, Sellers will inform Buyer in writing what [*], so that Buyer will know [*] including the Seller. Seller will update Buyer with [*].
		

		
			 
		

		
			1  [*] per [*] for Endocyte is [*]
		

		
			 
		

		
			2  If a specific amount [*].
		

		
			
		

		
			

		 

		

			24

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			If Buyer wishes to [*], the [*] would be [*].
		

		
			 
		

		
			Three examples:
		

		
			(i) Buyer wishes to [*], from [*] to [*].
		

		
			(ii) Buyer wishes to [*], from [*] to [*].
		

		
			(iii) Buyer wishes to [*], from [*] to [*].
		

		
			 
		

		
			
		

		
			

		 

		

			25

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Annex 3:  ITG Order Instructions
		

		
			 
		

		
			In the Study Phase:
		

		
			 
		

		
			2018:
		

		
			up to [*]
		

		
			between [*]
		

		
			between [*]
		

		
			 
		

		
			starting from 2019:
		

		
			up to [*]
		

		
			between [*]
		

		
			between [*]
		

		
			 
		

		
			In the Commercial Phase:
		

		
			 
		

		
			The same conditions as in the Study Phase apply. In accordance with the [*] forecast (compare Article 3, (i) Short Term Production Planning) the amounts are fixed at least [*] in advance. Order details (number of vials, destination, calibration date, etc)  shall be provided [*] in advance.
		

		
			 
		

		
			
		

		
			

		 

		

			26

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

		

 

		

			CONFIDENTIAL

		

		

			 

		

		

		
			Annex 4:  [*] Forecast by Buyer for 2018 – 2035
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						[*]

				
	
					
						 

					
					
						Q1

					
					
						Q2

					
					
						Q3

					
					
						Q4

					
					
						Total 

				
	
					
						2018

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2019

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2020

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2021

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2022

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2023

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2024

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2025

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2026

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2027

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2028

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2029

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2030

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2031

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2032

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2033

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2034

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2035

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			Annex 5:  Product Specifications
		

		
			 
		

		
			Specifications shall be attached, in portable document format (PDF).
		

		 

		

			27

		

		

			[*] = Indicates confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.EX-10.26

 Exhibit 10.26 

THE MIDDLEFIELD BANKING COMPANY 

EXECUTIVE VARIABLE BENEFIT DEFERRED COMPENSATION
AGREEMENT 
 This EXECUTIVE VARIABLE BENEFIT DEFERRED
COMPENSATION AGREEMENT (this “Agreement”) is entered into as of this 9th day of July, 2018, by and between The Middlefield Banking
Company, an Ohio-chartered bank (the “Bank”), and James R. Heslop, II, Executive Vice President and Chief Operating Officer of the Bank (the “Executive”). 

WHEREAS, the Bank and the Executive entered into an Amended Executive Deferred Compensation Agreement
dated as of May 8, 2008, with contributions made solely by the Bank and benefits payable out of the Bank’s general assets, 

WHEREAS, the Amended Executive Deferred Compensation Agreement does not provide for employer
contributions to continue after age 65 because Section 2.1 of the Amended Executive Deferred Compensation Agreement states “The Annual Contribution shall not be made by the Bank for the Plan Year in which the Executive attains Normal
Retirement Age or for any year thereafter.” 
 WHEREAS, this Agreement does not supersede the
May 8, 2008 Amended Executive Deferred Compensation Agreement, 
 WHEREAS, none of the conditions
or events included in the definition of the term “golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule
359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists or, to the best knowledge of the Bank, is contemplated insofar as the Bank is concerned, and 

WHEREAS, the parties hereto intend that this Agreement shall be considered an unfunded arrangement
maintained primarily to provide supplemental retirement benefits for the Executive (who is a key employee and member of a select group of management), and to be considered a top hat plan for purposes of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”). The Executive is fully advised of the Bank’s financial status. 
 NOW
THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Executive and the Bank hereby agree as follows. 

ARTICLE 1 

DEFINITIONS 

1.1    “Account Balance” means the Bank’s accounting of Annual Contributions made by the
Bank, plus accrued interest. 
 1.2    “Annual Contribution” means the amount credited to the
Account Balance after the end of each Plan Year for which the Performance Goals are achieved. The Annual Contribution will be conditional on achievement of the Performance Goals. The Annual Contribution amount in any Plan Year shall not be less than
5% or more than 15% of the Executive’s Base Annual Salary. The Annual Contribution amount shall be changed no more frequently than annually. 

  
 1 

 1.3    “Base Annual Salary” means compensation of the
type required to be reported as salary according to Securities and Exchange Commission Rule 229.402(c) (17 CFR 229.402(c)), specifically column (c) of that rule’s Summary Compensation Table (or any successor provision), but excluding fees
or any other form of compensation payable on account of service as a director. Base Annual Salary shall be calculated before reduction for amounts voluntarily deferred or contributed by the Executive pursuant to qualified plans. 

1.4    “Beneficiary” means each designated person, or the estate of the deceased Executive,
entitled to benefits, if any, upon the death of the Executive, determined according to Article 5. 

1.5    “Beneficiary Designation Form” means the form established from time to time by the Plan
Administrator that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries. 

1.6    “Change in Control” shall mean a change in control as defined in Internal Revenue Code
section 409A and rules, regulations, and guidance of general application thereunder issued by the Department of the Treasury, applying the percentage threshold specified in each of paragraphs (a) through (c) of this section 1.6 or the related
percentage threshold specified in section 409A and rules, regulations, and guidance of general application thereunder, whichever is greater – 

(a)    Change in ownership: a change in ownership of Middlefield Banc Corp. (“Banc Corp.”), an Ohio
corporation of which the Bank is a wholly owned subsidiary, occurs on the date any one person or group accumulates ownership of Banc Corp. stock constituting more than 50% of the total fair market value or total voting power of Banc Corp. stock,

 (b)    Change in effective control: (x) any one person or more than one person acting as a group
acquires within a 12-month period ownership of Banc Corp. stock possessing 30% or more of the total voting power of Banc Corp., or (y) a majority of Banc Corp.’s board of directors is replaced
during any 12-month period by directors whose appointment or election is not endorsed in advance by a majority of Banc Corp.’s board of directors, or 

(c)    Change in ownership of a substantial portion of assets: a change in ownership of a substantial portion of
Banc Corp.’s assets occurs if in a 12-month period any one person or more than one person acting as a group acquires from Banc Corp. assets having a total gross fair market value equal to or exceeding 40%
of the total gross fair market value of all of Banc Corp.’s assets immediately before the acquisition or acquisitions. For this purpose, gross fair market value means the value of Banc Corp.’s assets, or the value of the assets being
disposed of, determined without regard to any liabilities associated with the assets. 

1.7    “Code” means the Internal Revenue Code of 1986, as amended, and rules, regulations, and
guidance of general application issued thereunder by the Department of the Treasury. 
 1.8    “Effective
Date” means January 1, 2018. 

  
 2 

 1.9    “Intentional” for purposes of this Agreement,
no act or failure to act on the Executive’s part will be considered intentional if it was due primarily to an error in judgment or negligence. An act or failure to act on the Executive’s part is intentional if it is not in good faith and
if it is without a reasonable belief that the action or failure to act is in the Bank’s best interests. Any act or failure to act based upon authority granted by resolutions duly adopted by the board of directors or based upon the advice of
counsel for the Bank is conclusively presumed to be in good faith and in the Bank’s best interests. 

1.10    “Performance Goals” means the performance criteria set forth in Schedule A attached to
this Agreement and incorporated herein by this reference, which criteria have been established by the Bank’s board of directors. The Performance Goals may be changed by the board of directors no more frequently than annually. If the performance
criteria are changed, a new Schedule A shall be substituted for and shall supersede the old Schedule A, and the new Schedule A shall be deemed to be incorporated by reference herein and to be a part of this Agreement. A change in Performance Goals
shall not become effective for the Plan Year in which the change is made unless the change is made on or before March 31 of the Plan Year. The Plan Administrator shall have sole authority to determine whether the Performance Goals have been
achieved for any Plan Year. The Plan Administrator’s determination that the Performance Goals for a Plan Year have or have not been achieved shall be conclusive and binding. 

1.11    “Plan Administrator” or “Administrator” means the plan administrator
described in Article 8. 
 1.12    “Plan Year” means the calendar year. The first Plan Year
shall begin on the Effective Date and end on December 31, 2018. 
 1.13    “Separation from
Service” means separation from service as defined in Treasury Regulation 1.409A-1(h), other than because of the Executive’s death. 

1.14    “Termination with Cause” and “Cause” shall have the same definition
specified in any effective severance or employment agreement existing on the date hereof or hereafter entered into between the Executive and the Bank or between the Executive and Banc Corp. If the Executive is not a party to a severance or
employment agreement containing a definition, Termination with Cause means the Bank terminates the Executive’s employment because of – 

(a)    the Executive’s gross negligence or gross neglect of duties or intentional and material failure to perform
stated duties after written notice thereof, or 
 (b)    disloyalty or dishonesty by the Executive in the performance of
duties or breach of the Executive’s fiduciary duties for personal profit, in any case whether in the Executive’s capacity as a director or officer, or 

(c)    intentional wrongful damage by the Executive to the business or property of the Bank or its affiliates, including
without limitation the reputation of the Bank, which in the judgement of the Bank causes material harm to the Bank or affiliates, or 

(d)    a willful violation by the Executive of any applicable law or significant policy of the Bank or an affiliate that,
in the Bank’s judgement, results in an adverse effect on the Bank or the affiliate, regardless of whether the violation leads to criminal prosecution or conviction. For purposes of this Agreement applicable 

laws include any statute, rule, regulatory order, statement of policy, or final
cease-and-desist order of any governmental agency or body having regulatory authority over the Bank, or 

  
 3 

 (e)    the occurrence of any event that results in the Executive being
excluded from coverage, or having coverage limited for the Executive as compared to other executives of the Bank, under the Bank’s blanket bond or other fidelity or insurance policy covering its directors, officers, or employees, or 

(f)    the Executive is removed from office or permanently prohibited from participating in the Bank’s affairs by an
order issued under section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 

(g)    conviction of the Executive for or plea of no contest to a felony or conviction of or plea of no contest to a
misdemeanor involving moral turpitude, or the actual incarceration of the Executive for 45 consecutive days or more. 

ARTICLE 2 

DEFERRAL ACCOUNT 

2.1    Annual Contribution. The Bank shall establish an Account Balance on its books. Within three months
after the end of each Plan Year the Bank shall credit the Annual Contribution to the Account Balance provided the Performance Goals were achieved for the Plan Year. Contributions to the Account Balance by the Executive are prohibited. Discretionary
contributions by the Bank are likewise prohibited.    However, if the Performance Goals are achieved for the Plan Year in which the Executive has a Separation from Service or dies, the Bank shall make a final contribution in an
amount equal to the Annual Contribution multiplied by a percentage. The percentage shall equal the number of days in the Plan Year before the Executive’s Separation from Service or death divided by 365. 

2.2    Interest. At the end of each Plan Year and until the first to occur of (x) the
Executive’s death, or (y) the Executive’s Separation from Service, interest is to be credited on the Account Balance at an annual rate of interest for that Plan Year, compounded monthly on the first day of the month, equal to
the prime interest rate as published in The Wall Street Journal. After the Executive’s Separation from Service, interest shall be credited on the Account Balance at an annual rate equal to the yield on a
10-year corporate bond rated Aa by Moody’s, rounded to the nearest  1⁄4%. 

2.3    Statement of Account. Within 120 days after the end of each Plan Year, the Bank shall provide to the
Executive a statement of the Account Balance at the end of the Plan Year. Each annual statement of the Account Balance shall supersede the previous year’s statement of the Account Balance. 

2.4    Accounting Device Only. The Account Balance is solely a device for measuring amounts to be paid under
this Agreement. The Account Balance is not a trust fund of any kind. The Executive is a general unsecured creditor of the Bank for the payment of benefits. The benefits represent the mere promise by the Bank to pay benefits. The Executive’s
rights are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Executive’s creditors. 

  
 4 

 ARTICLE 3 

BENEFITS DURING LIFETIME 

3.1    Separation from Service. Unless the Executive dies or a Change in Control occurs before Separation
from Service, when the Executive has a Separation from Service the Bank shall pay to the Executive the Account Balance as of the end of the month in which the Executive has a Separation from Service. Beginning on the first day of the seventh month
after the Executive has a Separation from Service, the Account Balance shall be paid to the Executive in 120 substantially equal monthly installments with each subsequent payment to be made on the first day of each subsequent month. The Bank shall
credit interest according to the formula of section 2.2, compounded monthly, until the Account Balance is paid in full. If the Executive’s Separation from Service is a Termination with Cause, no benefits shall be paid under this Agreement and
this Agreement shall terminate. 
 3.2    Change in Control. If a Change in Control occurs before the
Executive’s Separation from Service, instead of any other benefit payable under this Agreement the Bank shall pay to the Executive the entire Account Balance in a single lump sum on the date of the Change in Control. Payment of the Change-in-Control benefit shall fully discharge the Bank from all obligations under this Agreement, except the legal fee reimbursement obligation under section 9.11. 

3.3    Payout of Separation from Service Benefit after a Change in Control. If when a Change in Control
occurs the Executive is receiving or is entitled to receive the benefit under section 3.1, the Bank shall pay the remaining benefits to the Executive in a single lump sum on the later of (x) the date of the Change in Control or
(y) the first day of the seventh month after the month in which the Executive’s Separation from Service occurs. The lump-sum payment due to the Executive as a result of a Change in Control
shall be an amount equal to the Account Balance remaining unpaid. 
 3.4    One Benefit Only. Despite
anything to the contrary in this Agreement, the Executive and Beneficiary are entitled to one benefit only under this Agreement, which shall be determined by the first event to occur that is dealt with by this Agreement. Except as provided in
section 3.3, later occurrence of events dealt with by this Agreement shall not entitle the Executive or Beneficiary to other or additional benefits under this Agreement. 

3.5    Savings Clause Relating to Compliance with Code Section 409A. Despite any contrary
provision of this Agreement, if when the Executive’s employment terminates the Executive is a specified employee, as defined in Code section 409A, and if any payments under Article 3 of this Agreement will result in additional tax or interest
to the Executive because of section 409A, the Executive shall not be entitled to the payments under Article 3 until the earliest of (x) the date that is at least six months after termination of the Executive’s employment for reasons
other than the Executive’s death, (y) the date of the Executive’s death, or (z) any earlier date that does not result in additional tax or interest to the Executive under section 409A. 

ARTICLE 4 

DEATH BENEFITS 

After the Executive’s death, the Bank shall pay to the Executive’s Beneficiary the Account Balance as of the date of the
Executive’s death. The Account Balance shall be paid to the Executive’s Beneficiary in a single lump sum, 90 days after the date of the Executive’s death. However, if the Executive dies after termination of this Agreement under
Article 6, the Executive’s Beneficiary shall be entitled to no benefits under this Agreement. 

  
 5 

 ARTICLE 5 

BENEFICIARIES 

5.1    Beneficiary Designations. The Executive shall have the right to designate at any time a Beneficiary
to receive any benefits payable under this Agreement after the Executive’s death. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Bank in which
the Executive participates. 
 5.2    Beneficiary Designation Change. The Executive shall designate a
Beneficiary by completing and signing the Beneficiary Designation Form and delivering it to the Plan Administrator or its designated agent. The Executive’s Beneficiary designation shall be deemed automatically revoked if the Beneficiary
predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing, and otherwise complying with the terms of the
Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed
shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator before the Executive’s death. 

5.3    Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until
received, accepted, and acknowledged in writing by the Plan Administrator or its designated agent. 

5.4    No Beneficiary Designation. If the Executive dies without a valid beneficiary designation or if all
designated Beneficiaries predecease the Executive, the Executive’s spouse shall be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be paid to the Executive’s estate. 

5.5    Facility of Payment. If a benefit is payable to a minor, to a person declared incapacitated, or to a
person incapable of handling the disposition of his or her property, the Bank may pay the benefit to the guardian, legal representative, or person having the care or custody of the minor, incapacitated person, or incapable person. The Bank may
require proof of incapacity, minority, or guardianship as it may deem appropriate before distribution of the benefit. Distribution shall completely discharge the Bank from all liability for the benefit. 

ARTICLE 6 

GENERAL LIMITATIONS 

6.1    Termination with Cause. Despite any contrary provision of this Agreement, the Bank shall not pay any
benefit under this Agreement and this Agreement shall terminate if Separation from Service is a Termination with Cause. 

6.2     Removal. Despite any contrary provision of this Agreement, if the Executive is removed from office
or permanently prohibited from participating in the Bank’s affairs by an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement shall
terminate as of the effective date of the order. 

  
 6 

 6.3    Default. Despite any contrary provision of this
Agreement, if the Bank is in “default” or “in danger of default”, as those terms are defined in section 3(x) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(x), all obligations under this Agreement shall terminate. 

ARTICLE 7 

CLAIMS AND REVIEW PROCEDURES 

7.1    Claims Procedure. The Bank will notify any person or entity that makes a claim for benefits under
this Agreement (the “Claimant”) in writing, within 90 days after receiving Claimant’s written application for benefits, of his or her eligibility or noneligibility for benefits under the Agreement. If the Plan Administrator determines
that the Claimant is not eligible for benefits or full benefits, the notice will state (w) the specific reasons for denial, (x) a specific reference to the provisions of the Agreement on which the denial is based,
(y) a description of any additional information or material necessary for the Claimant to perfect his or her claim, and a description of why it is needed, and (z) an explanation of the Agreement’s claims review procedure
and other appropriate information concerning steps to be taken if the Claimant wishes to have the claim reviewed. If the Plan Administrator determines that there are special circumstances requiring additional time to make a decision, the Bank will
notify the Claimant of the special circumstances and the date by which a decision is expected to be made and may extend the time for up to an additional 90 days. 

7.2    Review Procedure. If the Claimant is determined by the Plan Administrator not to be eligible for
benefits, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant will have the opportunity to have his or her claim reviewed by the Bank by filing a petition for review with the Bank within 60 days
after receipt of the notice issued by the Bank. The Claimant’s petition must state the specific reasons the Claimant believes entitle him or her to benefits or to greater or different benefits. Within 60 days after receipt by the Bank of the
petition, the Plan Administrator will give the Claimant (and counsel, if any) an opportunity to present his or her position verbally or in writing, and the Claimant (or counsel) will have the right to review the pertinent documents. The Plan
Administrator will notify the Claimant of the Plan Administrator’s decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner to be understood by the
Claimant, and the specific provisions of the Agreement on which the decision is based. If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another
60 days at the election of the Plan Administrator but notice of this deferral will be given to the Claimant. 
 ARTICLE 8

 ADMINISTRATION OF AGREEMENT 

8.1    Plan Administrator Duties. This Agreement shall be administered by a Plan Administrator consisting of
the board or such committee or persons as the board shall appoint. The Executive may not be a member of the Plan Administrator. The Plan Administrator shall have the discretion and authority to (x) make, amend, interpret, and enforce all
appropriate rules and regulations for the administration of this Agreement and (y) decide or resolve any and all questions that may arise, including interpretations of this Agreement. 

8.2    Agents. In the administration of this Agreement, the Plan Administrator may employ agents and
delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel, who may be counsel to the Bank. 

  
 7 

 8.3    Binding Effect of Decisions. The decision or action of
the Plan Administrator concerning any question arising out of the administration, interpretation, and application of the Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having
any interest in the Agreement. Neither the Executive nor any Beneficiary shall be deemed to have any right, vested or unvested, regarding the continuing effect of any decision or action of the Plan Administrator. 

8.4    Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the members of the Plan
Administrator against any and all claims, losses, damages, expenses, or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.

 8.5    Bank Information. To enable the Plan Administrator to perform its functions, the Bank shall
supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances of the retirement, death, or Separation from Service of the Executive and such other pertinent information as the Plan Administrator
may reasonably require. 
 ARTICLE 9 

MISCELLANEOUS 

9.1    Amendments and Termination. This Agreement may be amended solely by a written agreement signed by the
Bank and by the Executive, except that the Bank’s Plan Administrator may on its own change the financial condition or conditions constituting the Performance Goals, which change shall constitute an amendment of this Agreement, provided that
written notice of the change is given to the Executive as promptly as practicable after the change is adopted by the Plan Administrator. This Agreement may be terminated by the Bank without the Executive’s consent. Unless Article 6 provides
that the Executive is not entitled to payment or unless when termination occurs the Executive has already received payment of benefits under this Agreement, the Bank must pay the Account Balance in a single lump sum to the Executive if the Bank
terminates this Agreement. The lump-sum termination payment will be made to the Executive consistent with the terms of the Code section 409A plan-termination exception to the prohibition against accelerated
payment [Rule 1.409A-3(j)(4)(ix)]. 
 9.2    Binding Effect. This
Agreement shall bind the Executive and the Bank and their beneficiaries, survivors, executors, successors, administrators, and transferees. 

9.3    Successors; Binding Agreement. By an assumption agreement in form and substance satisfactory
to the Executive, the Bank shall require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the Bank’s business or assets to expressly assume and agree to perform this
Agreement in the same manner and to the same extent the Bank would be required to perform this Agreement had no succession occurred. 

9.4    No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give
the Executive the right to remain an employee of the Bank nor does it interfere with the Bank’s right to discharge the Executive. It also does not require the Executive to remain an employee or interfere with the Executive’s right to
terminate employment at any time. 

  
 8 

9.5    Non-Transferability. Benefits under this Agreement may not be
sold, transferred, assigned, pledged, attached, or encumbered. 
 9.6    Tax Withholding. The Bank shall
withhold any taxes that are required to be withheld from the benefits provided under this Agreement. 

9.7    Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the State of
Ohio, except to the extent the laws of the United States of America otherwise require. 
 9.8    Unfunded
Arrangement. The Executive and the Beneficiary are general unsecured creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the mere promise by the Bank to pay benefits. The rights to benefits are not
subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Executive’s life is a general asset of the Bank to which the Executive and the Beneficiary have
no preferred or secured claim. 
 9.9    Entire Agreement. This Agreement constitutes the entire agreement
between the Bank and the Executive concerning the subject matter. No rights are granted to the Executive under this Agreement other than those specifically set forth. This Agreement does not supersede or modify the May 8, 2008 Amended Executive
Deferred Compensation Agreement. This Agreement and the May 8, 2008 Amended Executive Deferred Compensation Agreement are entirely independent of each other. 

9.10    Tax Consequences. The Bank does not insure or guarantee the tax consequences of payments provided
hereunder for matters beyond its control. The Bank shall not be liable in any way to Executive if any payment or benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Code section 409A
otherwise fails to comply with, or be exempt from, the requirements of Code section 409A. 
 9.11    Payment
of Legal Fees. The Bank is aware that after a Change in Control management of the Bank could cause or attempt to cause the Bank to refuse to comply with its obligations under this Agreement or could institute or cause or attempt to cause the
Bank to institute litigation seeking to have this Agreement declared unenforceable or could take or attempt to take other action to deny the Executive the benefits intended under this Agreement. In these circumstances the purpose of this Agreement
would be frustrated. The Bank desires that the Executive not be required to incur the expenses associated with the enforcement of rights under this Agreement, whether by litigation or other legal action, because the cost and expense thereof would
substantially detract from the benefits intended to be granted to the Executive hereunder. The Bank desires that the Executive not be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if
after a Change in Control occurs it appears to the Executive that (x) the Bank has failed to comply with any of its obligations under this Agreement, or (y) the Bank or any other person has taken any action to declare this
Agreement void or unenforceable, or instituted any litigation or other legal action designed to deny, diminish, or to recover from the Executive the benefits intended to be provided to the Executive hereunder, the Bank irrevocably authorizes the
Executive from time to time to retain counsel of the Executive’s choice, at the Bank’s expense as provided in this section 9.11, to represent the Executive in the initiation or defense of any litigation or other legal action, whether by or
against the Bank or any director, officer, stockholder, or other person affiliated with the Bank, in any jurisdiction. Despite any existing or previous attorney-client relationship between the Bank and any counsel chosen by the Executive under this
section 9.11, the Bank irrevocably consents to the Executive entering into an attorney-client relationship with 

  
 9 

 
that counsel, and the Bank and the Executive agree that a confidential relationship shall exist between the Executive and that counsel. The fees and expenses of counsel selected from time to time
by the Executive as provided in this section shall be paid or reimbursed to the Executive by the Bank on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by counsel in accordance with counsel’s
customary practices, up to a maximum aggregate amount of $500,000, whether suit be brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. The Bank’s obligation to pay the Executive’s legal fees under
this section 9.11 operates separately from and in addition to any legal fee reimbursement obligation the Bank may have with the Executive under any separate employment, severance, or other agreement between the Executive and the Bank. Despite
anything in this section 9.11 to the contrary however, the Bank shall not be required to pay or reimburse the Executive’s legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule
359.3 of the Federal Deposit Insurance Corporation [12 CFR 359.3]. 
 9.12    Severability. If any
provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held invalid, and each such other provision shall continue in full force and effect to the full extent consistent with law. If
any provision of this Agreement is held invalid in part, such invalidity shall not affect the remainder of the provision not held invalid, and the remainder of such provision together with all other provisions of this Agreement shall continue in
full force and effect to the full extent consistent with law. 
 9.13    Waiver. A waiver by either party
of any of the terms or conditions of this Agreement in any one instance shall not be considered a waiver of the terms or conditions for the future or a waiver of any subsequent breach. All remedies, rights, undertakings, obligations, and agreements
contained in this Agreement shall be cumulative, and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of either party. 

9.14    Captions and Counterparts. Captions in this Agreement are included for convenience only and shall
not affect the interpretation or construction of the Agreement or any of its provisions. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute a
single agreement. 
 9.15    Notice. All notices, requests, demands, and other communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed, certified or registered mail, return receipt requested, with postage prepaid. Unless otherwise changed by notice, notice shall be properly addressed to
the Executive if addressed to the address of the Executive on the books and records of the Bank at the time of the delivery of such notice, and properly addressed to the Bank if addressed to the Board of Directors, The Middlefield Banking Company,
15985 East High Street, Middlefield, Ohio 44062-0035. 

  
 10 

 IN WITNESS WHEREOF, the
Executive and a duly authorized Bank officer have executed this Executive Deferred Variable Benefit Compensation Agreement as of the date first written above. 
  

									
	EXECUTIVE:	 		 	 BANK:
 The
Middlefield Banking Company

				
	 	 		 	By:	 	 
	James R. Heslop, II	 		 		 	Thomas G. Caldwell
		 		 	Its:	 	President and Chief Executive Officer

  
 11 

 THE MIDDLEFIELD BANKING COMPANY

 EXECUTIVE VARIABLE BENEFIT DEFERRED COMPENSATION
AGREEMENT 
 Beneficiary Designation 

I designate the following as beneficiary under this Executive Variable Benefit Deferred Compensation Agreement of benefits payable after my
death. 

Primary:                       
                                         
                                         
                                         
                                         
                
  

 
 Contingent:
                                         
                                         
                                         
                                         
                                 

 
  
  

	Note:	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. 

I understand that I may change these beneficiary designations by filing a new written designation with the Bank. I further understand that the
designations will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved. 

 

			
		
	Signature:	 	 
		 	James R. Heslop, II

  

			
	Date:	 	July 9, 2018

 Received by the Bank this 9th day of July, 2018 

 

			
		
	By:	 	 
		 	Thomas G. Caldwell
	Title:	 	President and Chief Executive Officer

  
 12 

 THE MIDDLEFIELD BANKING COMPANY

 EXECUTIVE VARIABLE BENEFIT DEFERRED COMPENSATION
AGREEMENT 
 Schedule A 

Performance Goals 
 The
Bank’s board of directors shall establish Performance Goals, which may be absolute performance targets taking the Bank’s performance only into account, or relative targets taking the Bank’s performance into account relative to a peer
group of companies, or a combination of both. The measures of performance used to establish Performance Goals shall not change from one Plan Year to the next unless the board of directors concludes that compelling reasons exist to use different or
additional measures of performance. If performance relative to a peer group is used, the peer group analysis selected by the board of directors shall not be changed from one Plan Year to the next unless the board of directors concludes that the peer
group being employed is no longer representative of the Bank’s actual peer group of companies. 
 For the first Plan Year, the
Performance Goals are – 
  

					
	 Performance Target #1
	  	Performance Goal #1	  	 Annual Contribution for Achievement of

Performance Goal #1

			
	 Bank’s Target Net Income for Plan Year
	  	$7,662,833	  	 2.5% of the Executive’s Base Annual Salary

			
	 Bank’s Net Income for Plan Year Is

Equal to or Greater than –
	  	$7,739,461 (101%)	  	 3.5% of the Executive’s Base Annual Salary

			
	 Bank’s Net Income for Plan Year Is

Equal to or Greater than –
	  	$7,816,090 (102%)	  	 4.5% of the Executive’s Base Annual Salary

			
	 Bank’s Net Income for Plan Year Is

Equal to or Greater than –
	  	$7,892,718 (103%)	  	 5.5% of the Executive’s Base Annual Salary

			
	 Bank’s Net Income for Plan Year Is

Equal to or Greater than –
	  	$7,969,346 (104%)	  	 6.5% of the Executive’s Base Annual Salary

			
	 Bank’s Net Income for Plan Year Is

Equal to or Greater than –
	  	$8,045,975 (105%)	  	 7.5% of the Executive’s Base Annual Salary

 The Bank’s target net income for Performance Goal #1 is $7,662,833. At a minimum, the Executive is entitled to an Annual
Contribution for Performance Goal #1 equal to 2.5% of Base Annual Salary. For the Executive to receive a greater Annual Contribution under Performance Goal #1, the Bank’s net income for the Plan Year must meet or exceed 101% of the Bank’s
target net income for the Plan Year. For every additional 1% that the Bank’s target net income is met or exceeded in any Plan Year, up to 105%, the Executive’s Annual Contribution amount also increases by 1%. Thus, the maximum Annual
Contribution for achievement of Performance Goal #1 is 7.5% of the Executive’s Base Annual Salary. The Bank and the Executive agree that the Bank’s net income for the Plan Year shall be derived from the quarterly reports of condition filed
with the FDIC under the Federal Deposit Insurance Act section 7(a), 12 U.S.C. 1817(a), and FDIC rules, 12 CFR Part 304. 

  
 13 

					
	 Performance Target #2
	  	 Performance Goal #2
	  	 Annual Contribution for Achievement of

Performance Goal #2

			
	 Bank’s Target Peer Rank
	  	 Overall Ranking in Top 50% of
 FDIC-insured
commercial banks having assets between $1 billion and $3 billion
	  	2.5% of the Executive’s Base Annual Salary
			
	 Bank Has An –
	  	 Overall Ranking in Top 60% of
 FDIC-insured
commercial banks having assets between $1 billion and $3 billion
	  	3.5% of the Executive’s Base Annual Salary
			
	 Bank Has An –
	  	 Overall Ranking in Top 70% of
 FDIC-insured
commercial banks having assets between $1 billion and $3 billion
	  	4.5% of the Executive’s Base Annual Salary
			
	 Bank Has An –
	  	 Overall Ranking in Top 80% of
 FDIC-insured
commercial banks having assets between $1 billion and $3 billion
	  	5.5% of the Executive’s Base Annual Salary
			
	 Bank Has An –
	  	 Overall Ranking in Top 90% of
 FDIC-insured
commercial banks having assets between $1 billion and $3 billion
	  	6.5% of the Executive’s Base Annual Salary
			
	 Bank Has An –
	  	 Overall Ranking in Top 100% of
 FDIC-insured
commercial banks having assets between $1 billion and $3 billion [ranked #1]
	  	7.5% of the Executive’s Base Annual Salary

 The Bank’s target Peer Rank for Performance Goal #2 is an overall ranking in the top 50% of all FDIC-insured commercial
banks having assets between $1 billion and $3 billion as reported on the Uniform Bank Performance Report (“UBPR”) as reported on the Federal Financial Institutions Examination Council’s website at www.ffiec.gov/UBPR.htm. The
UBPR is an analytical tool created for bank supervisory, examination, and management purposes. In a concise format, the UPBR shows the impact of management decisions and economic conditions on a bank’s performance and balance-sheet composition.
The performance and composition data contained in the report can be used as an aid in evaluating the adequacy of earnings, liquidity, capital, asset and liability management, and growth management. 

At a minimum, the Executive is entitled to an Annual Contribution for Performance Goal #2 equal to 2.5% of Base Annual Salary. For the
Executive to receive a greater Annual Contribution under Performance Goal #2, the Bank must have an overall ranking in the top 60% of FDIC-insured commercial banks having assets between $1 billion and $3 billion as reported on the UBPR for
the Plan Year. For every additional 10% that the Bank’s peer ranking improves in any Plan Year, up to being ranked first, the Executive’s Annual Contribution amount also increases by 1%. Thus, the maximum Annual Contribution for
achievement of Performance Goal #2 is 7.5% of the Executive’s Base Annual Salary. 
 At a minimum, the Executive’s Annual
Contribution in any Plan Year shall not be less than 5% of the Executive’s Base Annual Salary (i.e., the 2.5% of Base Annual Salary Annual Contribution under Performance 

  
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Goal #1 plus the 2.5% of Base Annual Salary Annual Contribution under Performance Goal #2). At a maximum, the Executive’s Annual Contribution in any Plan Year shall not exceed 15% of the
Executive’s Base Annual Salary (i.e., the 7.5% of Base Annual Salary Annual Contribution under Performance Goal #1 plus the 7.5% of Base Annual Salary Annual Contribution under Performance Goal #2). 

Changes in the Performance Goals approved by the board of directors shall become effective no more frequently than annually. The Plan
Administrator’s determination that the Performance Goals for a Plan Year have or have not been achieved shall be conclusive and binding. 

  
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