Document:

Exhibit 10.6

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		(1)	The University of Leicester

		(2)	AmpliPhi Biosciences Corporation

 

 

 

Licence

  

 

  

    	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

CONTENTs

 

	1	Interpretation and Defined Terms in this Agreement	3
	2	Grant of rights	5
	3	Know-how and confidentiality	7
	4	Payments	8
	5	Commercialisation obligations and reports	10
	6	Intellectual property	10
	7	Warranties and liability	11
	8	Insurance	12
	9	Duration and termination	13
	10	Force majeure	14
	11	No partnership	14
	12	Further assurance	14
	13	Publicity and trade marks	14
	14	Third Party Rights	15
	15	Entire Agreement	15
	16	Assignment	15
	17	Variation	15
	18	Severability	15
	19	Waiver	15
	20	Notices	15
	21	Disputes	16
	22	Governing Law	16
	Schedule 1	17
	Schedule 2	18
	Schedule 3	19

 

    	2

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

LICENCE

 

(the ‘Agreement’) dated 5th
September 2013

 

Between:

 

		(1)	The University of Leicester of University Road, Leicester, LE1 7RH, United Kingdom (“Leicester”);
and

 

		(2)	AmpliPhi Bioscience Corporation, having offices at A.B.N. 51 102 575 511, PO Box 421, Brookvale
NSW 2100 Australia, Colworth Science Park, Sharnbrook Bedfordshire, MK44 1LQ, United Kingdom and the Virginia Biotech Park, 800
Leigh St Richmond VA USA (“AmpliPhi”).

 

Each a ‘Party’ and together
the ‘Parties’.

 

INTRODUCTION

 

		(A)	AmpliPhi wishes to acquire rights under the Patents (listed in Schedule 1) and to use the Materials and the Know-how (listed
in Schedule 2) for the development and commercialisation of Licensed Products in the Field and in the Territory, in accordance
with the provisions of this Agreement.

 

		(B)	Leicester is willing to grant such rights under the terms of this Agreement.

 

Agreed

 

		1	Interpretation and Defined Terms in this Agreement

 

		1.1	In this Agreement, the terms set out below will have the following meanings:-

 

		1.1.1	‘Anniversary’ means each anniversary of the Commencement Date.

 

		1.1.2	‘Background IP’ means all IP, Materials and Know-how in the Field in Dr Martha Clokies’
possession prior to the 24th April 2013, which is the date of commencement of the collaborative research programme between
Leicester and AmpliPhi.

 

		1.1.3	‘Commencement Date’ means the date of the last signature on this Agreement.

 

		1.1.4	‘Competing Product’ means a phage-based therapeutic for treating Clostridium difficile
(C. difficile) infection or carriage in humans and animals developed by a third party or parties.

 

		1.1.5	‘Confidential Information’ means any and all information disclosed under this Agreement
by one Party (‘Disclosing Party’) to the other (‘Recipient Party’).

 

		1.1.6	‘Export Control Regulations’ means any United Nations trade sanctions or EU or UK legislation
or regulation, from time to time in force, which impose arms embargoes or control the export of goods, technology or software,
including weapons of mass destruction and arms, military, paramilitary and security equipment and dual-use items (items designed
for civil use but which can be used for military purposes) and certain drugs and chemicals.

 

    	3

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		1.1.7	‘Field’ means phage-based therapeutics for treating C. difficile infection or carriage
in humans and animals.

 

		1.1.8	‘Intellectual Property Rights’ and ‘IP’ means all Patents, registered designs,
trademarks and service marks (whether registered or not), copyright, database rights, plant breeders rights, design right, materials,
know-how, information and all similar property including that subsisting (in any part of the world) in inventions, designs, performances,
computer programs, semiconductor topographies, confidential information, business names, goodwill and the styles of presentation
of goods or services and in applications for protection of them in any jurisdiction;

 

		1.1.9	‘Inventor’ means Dr Martha Clokie, an employee of Leicester, in whose laboratory the
IP, Materials and Know-how were invented.

 

		1.1.10	‘Know-how’ means technical information in the Field including that set out in Schedule
2 or developed by and under the supervision of the Inventor and relating directly to the inventions claimed in the Patents and
including information on the isolation, propagation, storage and characterisation of C. difficile specific bacteriophages and C.
difficile strains (both laboratory and clinical isolates) relevant to the Materials.

 

		1.1.11	‘Licensed Products’ means any product, process or use which AmpliPhi or its Sub-licensees
manufactures, sells, licenses, or makes available and which incorporates, or their development makes use of, any of the Licensed
Technology.

 

		1.1.12	‘Licensed Technology’ means the Patents, the Materials and the Know-how.

 

		1.1.13	‘Materials’ means the bacteriophage specific for C. difficile and the C. difficile
host strains (as defined in Schedule 2) and any modifications, modified derivatives or usage products.

 

		1.1.14	‘Net Sales Value’ means the price of Licensed Products invoiced in arm’s length
transactions to independent third parties without deduction of any commission paid to a third party but less, provided the amounts
are separately charged on the relevant invoice, any costs of packaging, insurance, carriage and freight, value added tax or other
sales tax, import duties or similar government levies, rebates, discounts and amounts reserved for returns. Consideration that
is received in a form other than money shall be valued at the fair market value thereof, as determined by AmpliPhi in good faith.

 

		1.1.15	‘Patents’ means any and all of the patents and patent applications referred to in Schedule
1 together with any continuations, continuations in part, extensions, reissues, divisions and supplementary protection certificates
that derive priority from them and any additional patents filed and added to Schedule 1 as a result of additions, agreed between
the Parties, of Materials from Schedule 2 for possible development into Licensed Products.

 

		1.1.16	‘Sub-licensee’ means any third party who has been granted a sub-licence by AmpliPhi
of its rights under this Agreement in accordance with Clause 2.2.

 

		1.1.17	‘Sub-licence Revenue’ means any non-royalty payments received from a Sub-licensee in
consideration for the grant of a sub-licence. For clarity, Sub-licence Revenue will exclude reimbursement or pre-payment for research
and development expenses and the purchase price of AmpliPhi securities at fair market value.

 

    	4

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		1.1.18	‘Term’ means the period specified in Clause 9.1.

 

		1.1.19	‘Territory’ means worldwide.

 

		1.1.20	‘Year’ means each year of the Agreement, with the first Year commencing on the Commencement
Date up to but not including the first Anniversary and the second Year commencing on the first Anniversary and continuing up to
but not including the second Anniversary, and so forth.

 

		1.1.21	‘Valid Claim’ means a claim of a Patent, which claim has not been finally abandoned
or finally rejected or is issued and unexpired and has not been found to be unpatentable, invalid or unenforceable by a court or
other authority having jurisdiction, from which decision no appeal is taken, shall be taken or can be taken.

 

		1.2	In this Agreement (except where the context otherwise requires):

 

		1.2.1	the Clause headings are included for convenience only and will not affect the interpretation of
this Agreement;

 

		1.2.2	any reference to ‘including’ in this Agreement in the context of a list or description
of items shall be construed as meaning ‘including without limiting the generality of the foregoing’, such that the
items following are merely examples of items which are included and/or items which are identified as being included for the avoidance
of any doubt as to their inclusion, and such items are not descriptive of the class of items which may be included;

 

		1.2.3	any reference to “persons” includes natural persons, firms, partnerships, companies
and associations (in each case whether or not having separate legal personality);

 

		1.2.4	any reference to a statute, statutory provision or subordinate legislation (“legislation”)
will be construed as referring to such legislation as amended and in force from time to time and to any legislation which re-enacts
or consolidates (with or without modification) any such legislation;

 

		1.2.5	references to the singular include the plural and vice versa; and

 

		1.2.6	words denoting a gender shall include all genders.

 

		1.3	The Schedules form part of this Agreement. If a provision of a Schedule is inconsistent with a provision of this Agreement,
the terms of the Agreement will take precedence.

 

		2	Grant of rights

 

		2.1	Leicester grants to AmpliPhi subject to the provisions of this Agreement:

 

		2.1.1	an exclusive licence under the Patents, with the right to sub-license, subject to Clause 2.2
below, to research, develop, manufacture, have manufactured, use and sell Licensed Products only in the Field in the Territory;

 

    	5

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		2.1.2	a non-exclusive licence to use the Know-how, with the right to sub-license, subject to Clause 2.2
below, to research, develop, manufacture, have manufactured, use and sell Licensed Products only in the Field in the Territory;
and

 

		2.1.3	an exclusive licence to use the Materials with the right to sub-license, subject to Clause 2.2
below, to research, develop, manufacture, have manufactured, use and sell Licensed Products only in the Field in the Territory.

 

		2.2	AmpliPhi will be entitled to grant sub-licences of its rights under
this Agreement to any person, provided that:

 

		2.2.1	for any sub-licence granted during the term of the Collaboration Agreement between Leicester and
AmpliPhi dated June 11th, 2013, or the Collaboration Agreement among Leicester, AmpliPhi and the University of Glasgow
dated July 25th, 2013, the prior written consent of Leicester has been given, such consent not to be unreasonably withheld
or delayed;

 

		2.2.2	for any sub-licence granted after termination or expiration of the Collaboration Agreements referred
to in Clause 2.2.1, AmpliPhi will inform Leicester of the terms of any sub-licence agreement at least two weeks before execution
of any agreement;

 

		2.2.3	payments are made to Leicester in accordance with Clauses 4.4 and 4.5;

 

		2.2.4	all payments or consideration from the Sub-licensee to AmpliPhi for the grant of the sub-licence
will consist of consideration at the level which would be agreed in arms’ length transactions between independent third parties;

 

		2.2.5	any sub-licence will include commercially reasonable milestone payments and royalties consistent
with the phase of development as determined by AmpliPhi;

 

		2.2.6	the sub-licence will include obligations on the Sub-licensee which are equivalent to the obligations
of AmpliPhi under Clauses 3, 7, 8, 9 and 13.2 of this Agreement;

 

		2.2.7	within 30 days of the grant of any sub-licence, AmpliPhi will provide to Leicester a true copy
of it, redacted for any confidential information not material to this Agreement; and

 

		2.2.8	AmpliPhi will be responsible for any breach of the sub-licence by the Sub-licensee, as if the breach
had been that of AmpliPhi under this Agreement, and AmpliPhi will indemnify Leicester against any loss, damages, costs, claims
or expenses which are awarded against or suffered by Leicester as a result of any such breach by the Sub-licensee.

 

		2.3	Leicester reserves for itself a non-exclusive right to use and to license other academic institutions
to use the Patents, Materials and Know-how in the Field for the purposes of publication, non-commercial academic research and teaching.

 

		2.4	No licence is granted by Leicester to AmpliPhi other than the licence(s) expressly granted by the
provisions of this Clause 2.

 

		2.5	Leicester hereby grants to AmpliPhi an option, exercisable within twelve (12) months of the Commencement
Date, to acquire a non-exclusive licence for use of the Patents, Materials and Know-how in the field of Diagnostics. Should AmpliPhi
wish to exercise such option, the Parties shall negotiate in good faith, the terms of a non-exclusive licence.

 

    	6

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		3	Know-how and confidentiality

 

		3.1	AmpliPhi undertakes that for a period of fifteen (15) years or for five (5) years after the termination
or expiration of the Term, whichever comes earlier, it will protect the Know-how as Confidential Information and will not use the
Know-how for any purpose except as expressly licensed in accordance with the provisions of this Agreement.

 

		3.2	Confidential Information disclosed by one Party (“Disclosing Party”) to the other Party
(“Recipient Party”) under this Agreement may be disclosed by the Recipient Party to:

 

		3.2.1	employees, officers, directors, auditors, or subcontractors of the Recipient Party requiring the
Confidential Information solely for the purposes of this Agreement;

 

		3.2.2	to Sub-licensees in so far as the Sub-licensees require the Confidential Information for the use,
manufacture or sale of Licensed Products.

 

		3.3	Confidential Information may not be used by the Recipient Party for any purpose other than the
performance of the Recipient Party’s obligations or the exercise of the Recipient Party’s rights under this Agreement.

 

		3.4	The Recipient Party disclosing Confidential Information under Clause 3.2 will use all
reasonable endeavours to ensure that persons receiving Confidential Information:

 

		3.4.1	do not disclose or use the Confidential Information except as permitted in Clauses 3.2 and 3.3;
and

 

		3.4.2	sign a written confidentiality agreement with terms at least as restrictive as those binding the
Recipient Party.

 

		3.5	The obligations in Clauses 3.2, 3.3 and 3.4 shall not apply or shall cease to apply to
Confidential Information which:

 

		3.5.1	has been received from a third party who is not bound by an obligation of confidentiality to the
Disclosing Party;

 

		3.5.2	was already in the Recipient Party’s possession prior to its acquisition from the Disclosing
Party as evidenced by written records;

 

		3.5.3	was independently generated by the Recipient Party as evidenced by written records;

 

		3.5.4	is in or comes into the public domain other than by reason of a breach of this Agreement;

 

		3.5.5	is required to be disclosed by law or a court or other competent authority; or

 

		3.5.6	is disclosed with prior written consent of the Disclosing Party.

 

		3.6	The Recipient Party must return to the Disclosing Party all documents or other materials containing
or referring to Confidential Information which is in its possession, power or control or in the possession, power or control of
persons who have received Confidential Information from it under Clause 3.2 at any time if requested to do so by the Disclosing
Party.

 

    	7

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		3.7	The provisions of Clauses 3.2, 3.3, 3.4, 3.5 and 3.6 will survive for five years after the expiry
or earlier termination (for whatever reason) of this Agreement.

 

		4	Payments

 

		4.1	AmpliPhi will:

 

		4.1.1	pay to Leicester the non-refundable, non-deductible sum of [*****]
on the Commencement Date as an up-front signing fee;

 

		4.1.2	reimburse Leicester for all costs actually incurred by Leicester for the drafting and filing of
the PCT application and all future patent prosecution costs incurred by Leicester relating to the Patents.

 

		4.2	AmpliPhi will pay Leicester the milestone payment(s) set out in the table below, in each case for
the first Licensed Product to attain such milestone:

 

	Milestone	 	Payment (£)
	[*****]	 	[*****]
	[*****]	 	[*****]
	[*****]	 	[*****]
	[*****]	 	[*****]
	[*****]	 	[*****]

 

For clarity, milestone
payments will be due only once for the first Licensed Product to attain such milestone, regardless of how many other Licensed Products
attain such milestones.

 

		4.3	AmpliPhi will pay Leicester a royalty equal to:

 

		4.3.1	[*****]for each Licensed Product
sold by AmpliPhi

 

		4.3.1.1	in jurisdictions where the Licensed Products are covered by a Valid Claim under the Patents

 

		4.3.1.2	in jurisdictions where there is no patent coverage and no Competing Product being sold, but in at least one other jurisdiction
from among the following list:  United States, United Kingdom, France, Spain, Germany, Italy, Japan, China, Australia, Licensed
Products are covered by a Valid Claim under the Patents;

 

		4.3.2	[*****] for each Licensed Product
sold by Ampliphi not covered by the provisions of Clause 4.3.1

 

		4.4	If AmpliPhi appoints a Sub-licensee for all or part of the Territory prior to any milestone set
forth in Clause 4.2, it will pay to Leicester for the first of each milestone the greater of the milestone payments set out in
Clause 4.2 or the following percentages of any Sub-licence Revenue received by AmpliPhi from the Sub-licensee for the attainment
of such milestone, based on the date of payment to AmpliPhi.

 

    	8

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

	
        If the Sub-licence Revenue is 

        received after:
	 	Percentage
	[*****]	 	[*****]
	[*****]	 	[*****]
	[*****]	 	[*****]
	[*****]	 	[*****]
	[*****]	 	[*****]

 

For clarity,
milestone payments will be due only once for the first Licensed Product to attain such milestone, regardless of how many other
Licensed Products attain such milestones.

 

		4.5	For any sales of Licensed Products by a Sub-licensee, AmpliPhi will pay Leicester a royalty equal
to [*****] of all royalty payments received by AmpliPhi from its
Sub-licensees relating to the Licensed Products. For clarity, such payments are in lieu of any obligation of AmpliPhi to make payments
pursuant to Clause 4.3 with respect to Licensed Product sales by a Sub-licensee.

 

		4.6	AmpliPhi will pay to Leicester the following minimum annual fee:

 

		4.6.1	[*****] on the first Anniversary;

 

		4.6.2	[*****] on the second Anniversary;
and

 

		4.6.3	[*****] on the third Anniversary.

 

Such minimum fees shall reduce
milestone payments 1, 2 and 3 respectively and shall be payable on the relevant Anniversary irrespective of whether the relevant
milestone has been reached.

 

		4.7	If the fees set out at Clauses 4.1 - 4.6 are not, in accordance with Schedule 3, paid and remain
unpaid for more than 30 days after written notice to AmpliPhi, Leicester may, at its sole discretion, terminate AmpliPhi's exclusivity
or treat non-payment as a material breach of this Agreement.

 

		4.8	AmpliPhi will make the payments in accordance with Schedule 3.

 

		4.9	All sums due under this Agreement:

 

		4.9.1	are exclusive of Value Added Tax which, where applicable, will be paid by AmpliPhi to Leicester;

 

		4.9.2	will be paid in pounds sterling to the account of the University of Leicester at Barclays Bank
plc, details of which are outlined in Schedule 3;

 

		4.9.3	will be made by the Due Date (as set out in Schedule 3), failing which Leicester may charge interest
on any outstanding amount on a daily basis under the Late Payment of Commercial Debts (Interest) Act 1998; and

 

		4.9.4	will be made without deduction of income tax or other taxes, charges or duties.

 

		4.10	AmpliPhi will prepare and submit financial reports summarising income due to Leicester at the frequency
and in the form set out in Schedule 3.

 

		4.11	AmpliPhi will keep at its normal place of business all information used to calculate payments due
to Leicester under this Agreement including detailed and up to date records and accounts showing the quantity, description and
value of Licensed Products sold by AmpliPhi, and the amount of sub-licensing revenues received by it in respect of Licensed Products,
on a country by country basis. AmpliPhi will keep these records separate or otherwise make them extractable easily from its other
business records and will not dispose of them until after the fifth anniversary of their creation.

 

    	9

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		4.12	AmpliPhi will make the information set out in Clause 4.11 available, on reasonable notice, for
audit during business hours by Leicester’s duly authorised representative for the purpose of verifying the accuracy of any
report given by AmpliPhi to Leicester under this Clause 4. Leicester’s representative will be required to keep confidential
all information learnt during any such inspection. Leicester will be responsible for the representative's professional charges
unless the representative certifies that there is an inaccuracy of more than five per cent (5%) in any financial statement, in
which case AmpliPhi will pay the representative’s charges in respect of that inspection. AmpliPhi will pay any underpayment
reported by the representative within 30 days of receipt of Leicester's invoice. In addition, any underpayment reported by Leicester’s
representative will be treated as a late payment and as such will incur interest under Clause 4.9.3.

 

		4.13	AmpliPhi will ensure that Leicester has the same rights as those set out in Clauses 4.11 and 4.12
in respect of any Sub-licensees pursuant to this Agreement.

 

		5	Commercialisation obligations and reports

 

		5.1	AmpliPhi will diligently develop and commercially exploit the Licensed Technology.

 

		5.2	AmpliPhi will send Leicester an updated, written development plan, within 30 days of each Anniversary,
covering as a minimum the 12 months preceding the Anniversary and the 12 months following. The report will show:

 

		5.2.1	the projected and actual dates of first commercial sale;

 

		5.2.2	milestone progression (dates for projected and achieved milestones); and

 

		5.2.3	all past, current and projected activities taken or to be taken by AmpliPhi to bring Licensed Products
to market and maximise the sale of Licensed Products in the Territory.

 

		5.3	Leicester’s receipt or approval of any such plan will not be taken to waive or qualify AmpliPhi’s
obligations under Clause 5.1.

 

		5.4	AmpliPhi will ensure that, in using the Licensed Technology and in selling Licensed Products, it
will comply with any Export Control Regulations.

 

		6	Intellectual property

 

		6.1	Leicester shall be responsible for and control patent prosecution and meet all patent prosecution
costs (subject to reimbursement from AmpliPhi in accordance with Clause 4.1 and Schedule 3) relating to the Patents, provided that,
if AmpliPhi wishes to cease funding an application or Patent in the whole or any part of the Territory, it will give ninety (90)
days prior written notice to Leicester and on the expiry of such notice period, AmpliPhi will cease to be licensed for those parts
of the Territory under the patent application or Patent identified in the notice. Leicester shall provide AmpliPhi copies of any
correspondence related to patent prosecution and any submissions of new patent applications in each case at least two weeks before
submission, and shall reasonably consider any comments of AmpliPhi thereto. If Leicester cannot provide copies at least two weeks
in advance despite good faith efforts to do so, Leicester will make best endeavours to provide copies of such correspondence or
submissions as soon as practicable to enable Ampliphi to comment prior to submission.

 

    	10

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		6.2	Each Party will inform the other Party promptly if it becomes aware of any infringement or potential
infringement of any of the Patents.

 

		6.3	Subject to Clause 6.4, Leicester will be entitled to take legal or other action against any third
party to enforce the Patents at its sole expense. If the alleged infringement is both within and outside the Field and/or Territory,
the Parties will co-operate with Leicester’s other licensees (if any) in relation to any such action.

 

		6.4	Before starting legal action in accordance with Clause 6.3 or agreeing to any settlement,
Leicester will consult with AmpliPhi and take its views into account about the advisability of the action or settlement, its effect
on the public interest and how the action should be conducted. Any monetary recovery from any legal or other action will belong
to Leicester.

 

		6.5	If Leicester is unsuccessful in persuading the alleged infringer to desist or fails to have initiated
an infringement action within six months of Leicester first becoming aware of the basis for such action, AmpliPhi will have the
right to prosecute such infringement under its sole control and its sole expense, and any recovery obtained, less AmpliPhi's reasonable
costs and expenses in securing it, will be deemed to be Net Sales Value, upon which AmpliPhi will pay Leicester a royalty in accordance
with either Clause 4.3 or 4.5, depending on the nature of the payment. If obliged by a court of competent jurisdiction, Leicester
agrees that it may be added as a party to such legal action, provided that AmpliPhi shall reimburse Leicester for its reasonable
fees and expenses in connection with such joinder.

 

		6.6	If any warning letter or other notice of infringement is received by a Party, or legal action is
brought against a Party, alleging infringement of third party rights in the manufacture, use or sale of any Licensed Product or
use of any Patents, that Party will promptly provide full details to the other Party, and the Parties will discuss the best way
to respond.

 

		6.7	Each Party will have the right but not the obligation to defend any action brought against it and
will have the right to settle with such third party, provided that if any action or proposed settlement involves either Party making
any statement, express or implied, concerning the validity of any Patent, the consent of the other Party must be obtained before
taking such action or making such settlement.

 

		7	Warranties and liability

 

		7.1	AmpliPhi acknowledges that the Licensed Technology is at an early stage of development, that it
is provided “as is” and specific results cannot be guaranteed. AmpliPhi will be exclusively responsible for the technical
and commercial development and manufacture of Licensed Products and for incorporating any modifications or developments that may
be necessary or desirable and for all Licensed Products sold or supplied.

 

		7.2	AmpliPhi acknowledges that Leicester has not performed any searches or investigations into the
existence of any third party rights, which may affect any of the Licensed Technology and that in entering into this Agreement it
does not do so in reliance on any representation, warranty or other provision except as expressly provided by this Agreement.

 

		7.3	Leicester makes no representations or warranties of any kind, express or implied, concerning the
Licensed Technology including:

 

		7.3.1	as to the satisfactory quality or fitness for a particular purpose;

 

    	11

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		7.3.2	as to the absence of latent or other defects, whether or not discoverable;

 

		7.3.3	as to the validity or scope of the Patents; or

 

		7.3.4	that the exploitation of the Licensed Technology or any Licensed Product will not infringe any
patents or other intellectual property rights of a third party.

 

		7.4	Except as expressly provided, all conditions, warranties or other terms implied by statute or common
law are excluded from this Agreement to the fullest extent permitted by law.

 

		7.5	Notwithstanding any other provisions in this Agreement, nothing in this Agreement shall exclude
or limit either Party’s liability for the following:

 

		7.5.1	death or personal injury resulting from negligence;

 

		7.5.2	fraud or statements made fraudulently;

 

		7.5.3	any other acts or omissions for which the governing law prohibits the exclusion or limitation of
liability.

 

		7.6	Save as provided in Clause 7.5, Leicester will not be liable for any loss of profit, loss of business,
loss of goodwill, loss of savings, claims by third parties, loss of anticipated savings, indirect loss or consequential loss whatsoever
and howsoever caused (even if caused by Leicester’s negligence and/or breach of contract and even if Leicester were advised
that such loss would probably result).

 

		7.7	Save as provided in Clause 7.5, Leicester will not be liable for any damages or expenses of whatsoever
nature and howsoever arising (including in contract, tort, negligence or for breach of statutory duty or misrepresentation) in
connection with any use of the Licensed Technology or the manufacture, use or sale of the Licensed Products or otherwise in connection
with this Agreement or any relationships established by it.

 

		7.8	Subject to Clause 7.5, Leicester’s total liability for any claims, losses, damages or expenses
whatsoever and howsoever caused (even if caused by Leicester’s negligence and/or breach of contract) shall be limited for
each event or series of linked events to a maximum sum equal to the total royalties paid by AmpliPhi to Leicester under the Agreement
in the Year in which the liability first arose.

 

		7.9	AmpliPhi will indemnify and keep indemnified Leicester in full against all direct, indirect or
consequential liability, loss, damages, expenses, (including legal and other professional fees and expenses) claim or threatened
claim arising from the use by AmpliPhi of the Licensed Technology or otherwise in connection with the manufacture, use or sale
of or any other dealing in any of the Licensed Products by AmpliPhi.

 

		8	Insurance

 

		8.1	AmpliPhi will take out with a reputable insurance company and maintain at all times during the
Term, commercially reasonable liability insurance including against loss of and damage to property (whether real or personal) and
injury including death to persons arising out of or in connection with this Agreement and AmpliPhi’s use of the Licensed
Technology and the use, sale of or any other dealing in any of the Licensed Products. Such insurances may be limited in respect
of one claim and in aggregate (but will not be limited in any other respect) provided that such limit must be at least £3
million.

 

    	12

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		9	Duration and termination

 

		9.1	This Agreement, and the licences granted hereunder, will come into effect on the Commencement Date
and, unless terminated earlier in accordance with this Clause 9, will continue in force, on a country by country basis, until
the later of:

 

		9.1.1	the date on which all the Patents, or any supplementary protection certificates granted pursuant
to patent term extensions or similar measures for extending patent life, have expired or been revoked without a right of further
appeal; and

 

		9.1.2	the fifteenth anniversary of the Commencement Date;

 

and on such date this Agreement
and the licences granted hereunder will become fully paid, irrevocable and perpetual.

 

		9.2	AmpliPhi may terminate this Agreement at any time on 60 days' notice in writing to Leicester.

 

		9.3	Leicester may terminate this Agreement

 

		9.3.1	forthwith by giving written notice to AmpliPhi if AmpliPhi commence(s) legal proceedings, or gives
direct assistance to any third party to commence legal proceedings when not obliged to do so by law, regulation or government process,
to challenge the validity or ownership of any of the Patents;

 

		9.3.2	as provided in Clause 4.7.

 

		9.3.3	if AmpliPhi or their Sub-licensee has not continued to make substantial commercial progress, and
the Parties, entering in discussion in good faith, have not been able to identify feasible next steps to remedy the situation.

 

		9.4	Without prejudice to any other right or remedy, either Party may terminate this Agreement at any
time by written notice to the other Party, if:

 

		9.4.1	the other Party has materially breached this Agreement and, in case of a remediable breach other
than a persistent breach, has failed to remedy that breach within thirty days of the date of service of a written notice from the
other Party specifying the breach and requiring that it be remedied; or

 

		9.4.2	the other Party ceases to carry on business, is unable to pay its debts when they fall due, is
declared bankrupt, or an order is made or a resolution passed for the winding up of that other Party or the appointment of an administrator,
receiver, liquidator or manager of that other Party.

 

		9.5	Upon termination of this Agreement pursuant to Clauses 9.2, 9.3 or 9.4:

 

		9.5.1	AmpliPhi will be entitled to sell, use or otherwise dispose of (subject to payment of royalties
under Clause 4.3) any unsold or unused stocks of the Licensed Products for a period of 6 months following the date of termination;

 

		9.5.2	subject to Clause 9.5.1 above, AmpliPhi will:

 

		9.5.2.1	no longer be licensed to use or otherwise exploit in any way, either directly or indirectly, the
Patents, in so far and for as long as any of the Patents remains in force, or the Know-how or the Materials; and

 

    	13

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		9.5.2.2	will consent to the cancellation of any formal licence granted to it, or of any registration of
it in any register, in relation to any of the Patents;

 

		9.5.3	each Party will return to the other (or destroy at the other’s request) all Materials, Know-how
and Confidential Information disclosed to it by the other and all materials containing any Confidential Information in its possession
or control;

 

		9.5.4	If no Sub-licence agreement is in place, upon Leicester’s request, the Parties will negotiate
in good faith an agreement between them on reasonable commercial terms to enable Leicester to arrange for the further exploitation
of the Licensed Technology and Licensed Products as they exist at the date of termination including to provide Leicester with all
improvements, information, know-how and results created or developed by AmpliPhi or its sub-contractors or Sub-licensees;

 

		9.5.5	any sub-licence granted by AmpliPhi shall be deemed to be a direct licence between the Sub-licensee
and Leicester provided that Leicester’s obligation to the Sub-licensee are no greater than Leicester’s obligations
to AmpliPhi.

 

		9.6	If the Parties are unable to agree the terms of an agreement as described in Clause 9.5.4
they may initiate the procedure in Clause 21.

 

		9.7	The expiry or termination of this Agreement does not affect any rights or obligations of either
Party which have arisen or accrued up to and including the date of expiry or termination including the right to payment under this
Agreement.

 

		10	Force majeure

 

		10.1	Notwithstanding any other provision of this Agreement, no Party need act if it is impossible to
act due to force majeure, meaning any cause beyond its control (including war, riot, natural disaster, labour dispute, or law taking
effect after the date of this Agreement). A Party affected by force majeure agrees to notify the other Party promptly after it
determines that it is unable to act.

 

		10.2	A Party has no responsibility or liability for any loss or expense suffered or incurred by the
other Party as a result of its not acting for so long as the force majeure under Clause 10.1 continues. However, the non-performing
Party agrees to make reasonable efforts to avoid or remove the circumstances giving rise to the force majeure and agrees to continue
performance under this Agreement promptly when they are removed.

 

		11	No partnership

 

		11.1	Nothing in this Agreement shall create, imply or evidence any partnership or joint venture between
the Parties or the relationship between them of principal and agent or employer and employee. Neither Party shall be bound by the
acts or conduct of the other.

 

		12	Further assurance

 

		12.1	Each Party agrees to execute, acknowledge and deliver such further instruments, and do all further
similar acts, as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

 

		13	Publicity and trade marks

 

		13.1	A Party may not make press or other announcements or releases relating to this Agreement or the
transactions the subject of this Agreement without the approval of the other Party to the form and manner of the announcement or
release unless and to the extent that the announcement or release:

 

    	14

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		13.1.1	is required to be made by law or by a stock exchange;

 

		13.1.2	is made in the annual report of Leicester or one of its departments; or

 

		13.1.3	is required by Leicester for reporting obligations to the Higher Education Funding Council for
England (HEFCE).

 

		13.2	AmpliPhi will not use and will procure that its Sub-licensees do not use the name, any adaptation
of the name, any logo, trademark or other device of Leicester in any advertising, promotional or sales materials without prior
written consent obtained from Leicester in each case, except that AmpliPhi may state that it is licensed by Leicester to use the
Licensed Technology and to make and supply the Licensed Products.

 

		14	Third Party Rights

 

		14.1	The Parties to this Agreement do not intend that any of its terms will be enforceable by virtue
of the Contracts (Rights of Third Parties) Act 1999 by any other party.

 

		15	Entire Agreement

 

		15.1	Each Party acknowledges that this Agreement, including its Schedules, contains the whole agreement
between the Parties in respect of its subject matter and supersedes all prior arrangements, agreements and understandings between
them relating to the subject matter.

 

		16	Assignment

 

		16.1	This Agreement shall not be assigned by either Party without the prior written consent of the other,
such consent not to be unreasonably withheld or delayed.

 

		17	Variation

 

		17.1	Any variation to this Agreement shall be in writing and signed by authorised signatories for both
Parties.

 

		18	Severability

 

		18.1	If any provision of this Agreement is declared void or unenforceable, such provision shall be severed
from this Agreement, which shall otherwise remain in full force and effect.

 

		19	Waiver

 

		19.1	No failure, delay, relaxation or indulgence on the part of either Party in exercising or partial
exercise of any right hereunder shall operate as a waiver of such rights.

 

		20	Notices

 

		20.1	Any notice, demand or communication in connection with this Agreement will be in writing and may
be delivered by hand, first class post, Special Delivery post but not by email addressed to the recipient below (or another person
which the recipient has notified in writing to the sender in accordance with this Clause 20.1, to be received by the sender
not less than seven days before the notice is despatched).

 

    	15

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		20.1.1	For Leicester – to Technology Transfer, Enterprise and Business Development Office, University
of Leicester, University Road, Leicester, LE1 7RH, UK;

 

		20.1.2	For AmpliPhi – to Philip J Young, CEO AmpliPhi Biosciences 800 E. Leigh St Richmond, VA 23219,
USA

 

		20.2	The notice, demand or communication will be deemed to have been duly served:

 

		20.2.1	if delivered by hand, at the time of delivery;

 

		20.2.2	if delivered by first class post or Special Delivery post, 48 hours after being posted (excluding
days other than business days in England).

 

20.3 The contacts for academic purposes
will be:

 

		20.3.1	For Leicester – to Dr Martha Clokie, Dept Infection, Immunity & Inflammation, University
of Leicester, Maurice Shock Medical Sciences Building, University Road, Leicester, LE1 9HN, United Kingdom;

 

		20.3.2	For AmpliPhi – to Philip J Young, CEO, AmpliPhi Biosciences, 800 E. Leigh St, Richmond, VA
23219, USA.

 

		21	Disputes

 

		21.1	All disputes will initially be referred by either Party to a representative of each Party responsible
for the overall performance of this Agreement, who will meet as soon as reasonably practicable to discuss the dispute. If those
representatives are unable to resolve the dispute after meeting, the dispute shall be referred to the Chief Executive Officer of
AmpliPhi and the Director of the Enterprise and Business Development Office of Leicester. Such persons will meet within 20 working
days and attempt to resolve the dispute.

 

		21.2	If any dispute arises out of this Agreement which the Parties are unable to resolve within 5 working
days of their meeting pursuant to Clause 21.1, the Parties will attempt to settle it by mediation in accordance with the Centre
for Dispute Resolution (CEDR) Model Mediation Procedure.

 

		21.3	To initiate a mediation a Party must give notice in writing to the other Party requesting a mediation
(the ‘ADR Notice’) and send a copy of the ADR Notice to CEDR.

 

		21.4	If there is any point in the conduct of the mediation (including nomination of the mediator) upon
which the Parties cannot agree within 14 days from the date of the ADR Notice, CEDR will, at the request of either Party, decide
that point for the Parties, having consulted with them.

 

		21.5	The mediation will start not later than 28 days after the date of the ADR Notice.

 

		21.6	Neither Party may commence any court proceedings in relation to any dispute arising out of this
Agreement until they have attempted to settle it by mediation and such attempt has been unsuccessful, provided that nothing in
this Agreement will prevent either Party seeking injunctive relief to prevent or stay a breach of any provision of this Agreement.

 

		22	Governing Law

 

		22.1	This Agreement is governed by English law and the Parties submit to the exclusive jurisdiction
of the courts of England and Wales.

 

    	16

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Schedule
1

 

Patents

 

[*****]

 

    	17

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Schedule 2

 

Know-how and Materials

 

Know-how

 

[*****]

 

Materials

 

[*****]

 

Additional C. difficile strains and/or C. difficile specific
phages from this list may be protected by Leicester through the filing of one or more additional patent applications and such patents
shall be added to Schedule 1 of this Licence by written agreement between Leicester and AmpliPhi.

 

    	18

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Schedule 3

Financial

 

AmpliPhi will prepare and submit to Leicester biannual financial
reports summarising income due to Leicester. Biannual reports will be received by Leicester within 30 days of the end of June and
December respectively.

 

AmpliPhi will submit the report to:

 

Dr Julie Pratt

Licensing & Technology Commercialisation

Enterprise and Business Development Office

Fielding Johnson Building

University of Leicester

Leicester

LE1 7RH, UK

 

For royalties due on sale of Licensed Products
reports will be submitted in the format shown below:

 

LICENSEE ROYALTY

	
        Licensed

        Products
	 	
        Licensor

        Product

        #
	 	No. Sold	 	
        Royalty

        per unit

        (fixed

        price or

        %)
	 	
        Retail

        Price
	 	Country	 	
        Revenue

        (appropriate

        currency)
	 	
        Exchange

        rate

        (NatWest rate

        at the end of

        each quarter)
	 	
        Royalty

        (£)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

SUB-LICENSEE ROYALTY

	
        Licensed

        Products
	 	
        Licensor

        Product

        #
	 	No. Sold	 	
        Royalty

        per unit

        (fixed

        price or

        %)
	 	
        Retail

        Price
	 	Country	 	
        Revenue

        (appropriate

        currency)
	 	
        Exchange

        rate

        (NatWest rate

        at the end of

        each quarter)
	 	
        Royalty

        (£)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Leicester will issue invoices to AmpliPhi
on or after:

		i)	the Commencement Date for the up-front signing fee;

		ii)	receipt of each biannual report for the royalties;

		iii)	the milestones referred to in Clause 4 for the associated milestone payments;

		iv)	the first, second and third Anniversaries for the minimum annual fees; and

		v)	the dates Leicester incurs patent prosecution costs.

 

AmpliPhi will pay the amount thereon within
30 days of the date of invoice (“Due Date”) by electronic transfer to the following account:

 

	Bank:	Barclays Bank
	 	 
	Address:	1-3 Haymarket Towers

Humberstone Gate

Leicester

LE1 1WA
	 	 
	Sort Code:	20-49-11
	Account Number:	00072583
	IBAN:	GB73BARC20491100072583
	SWIFT:	BARC GB22

 

    	19

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

This Licence has been entered into by the
Parties on the date stated at the beginning.

 

	Signed	 	 	 	Signed	 	 
	 	 	 	 
	Authorised Signature for and on behalf of University of Leicester	 	Authorised Signature for and on behalf of AmpliPhi Biosciences Corporation
	 	 	 	 
	Name  Dr Chris Jones	 	 	Name   
	 	 	 	 
	Position  Head of Research Commercialisation	 	 	Position 
	 	 	 	 
	Dated	 	 	Dated

  

    	20Exhibit 10.7

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

A COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

 

Between

 

AmpliPhi Biosciences Corporation

800 E. Leigh St Suite 54

Richmond, VA 23219 

(hereinafter AmpliPhi)

 

and

 

United States Army Medical Research and
Materiel Command

504 Scott Street

Fort Detrick, Maryland 21702-5012

United States of America 

(hereinafter USAMRMC)

 

 Article 1. Background

 

 1.00 This Agreement is entered into under
the authority of the Federal Technology Transfer Act of 1986, 15 U.S.C. 3710a, et seq., between AmpliPhi and the
USAMRMC, the Parties to this Agreement.

 

 1.01 The USAMRMC, on behalf of the US Government
desires to collaborate with AmpliPhi on the research and development of therapeutic bacteriophages for bums, skin and soft tissue
infections, and diarrheal diseases resulting from infections with multiple pathogens. Multidrug resistant S. aureus and
Pseudomonas aeruginosa have been a significant challenge for the United States military in its medical treatment facilities
during the military engagements of the past decade, including in burns and combat wound infections. One potential treatment option
for antibiotic-resistant S. aureus and Pseudomonas aeruginosa is lytic bacteriophages, which naturally infect the bacteria
E. coli infections are a primary cause of diarrheal diseases leading to lost deployment and hospitalization across all branches
of the Military. Initially Parties plan to collaborate to develop bacteriophage treatment for skin and soft tissue infections.
Research will include determination of bacteriophage diversity, specificity, abundance, ease of isolation, cGMP manufacturing,
and clinical trials, with the goal of obtaining United States Food and Drug Administration (FDA) approval for these specific indications.

 

 1.02 If the initial research studies described
are successful, then the Parties may choose to collaborate on the research and development of bacteriophages effective against
other diseases of mutual interest, especially diarrheal diseases.

 

    	Final_June 2013	1	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

  

 1.03 The goals of the Parties in this collaboration
are to obtain FDA-approved therapeutic alternatives for skin and soft tissue infections and diarrheal diseases and improved capability
to respond to biological threat agents. To satisfy requirements for both US military and commercial needs for such products, additional
GMP manufacturing capability will be required.

 

The Parties intend to cooperate in the research activities set
forth in the attached Scope of Work (SOW) described in Appendix A.

 

THEREFORE, the Parties agree as follows:

 

 Article 2. Definitions

 

 2.00 The following terms are defined for
this Agreement as follows:

 

 2.01 “Agreement” means this
Cooperative Research and Development Agreement (CRADA).

 

 2.02 “Confidential Information”
means all information disclosed by the Discloser hereunder that should reasonably be understood by the Recipient, because of legends
or other markings, the circumstances of disclosure, or the nature of the information itself, to be proprietary and confidential
to the Discloser, and includes information relating to the Discloser’s business, including, without limitation, business
plans, proposals, forecasts, financial data, industry information, customer and prospect lists and information, personnel data,
contract information, properties, methods of operation, software (including, without limitation, source code, specifications, interfaces,
data, works-in-process, prototype and test versions, design documents and documentation), trade secrets, inventions, discoveries,
tools, frameworks, know-how, and other intellectual property. “Confidential Information” includes confidential information
that was disclosed by Discloser to Recipient prior to the date hereof as well as information currently provided and to be provided
during the term of this Agreement. Confidential Information may be disclosed in written or other tangible form (including as recorded
on magnetic, optical or other storage media) or by electronic, oral, visual or other means. Confidential Information disclosed
orally must be designated in writing as “Confidential” within 30 days of disclosure.

 

Confidential Information does not include information that:

(i) is generally known, or becomes generally
known or available during the period of this Agreement from other sources without obligations concerning confidentiality;

(ii) is already available to the Recipient
without any obligation concerning its confidentiality; or 

(iii) is independently developed by or on
behalf of the Recipient, without reliance on the information received hereunder.

 

 2.03 “Discloser” is the Party
disclosing Confidential Information and “Recipient” is the Party receiving Confidential Information from the Discloser.

 

 2.04 “Invention” and “Made”
have the meanings set forth in Title 15 U.S.C.§§ 3703(7) and (8). Specifically, “Invention” means any invention
or discovery which is or may be patentable or otherwise protected under Title 35 or any novel variety of plant which is or may
be protectable under the Plant Variety Protection Act (7 U.S.C. § 2321 et seq.) and “Made” when
used in conjunction with any invention means the conception or first actual reduction to practice of such invention.

 

    	Final_June 2013	2	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 2.05 “Materials” refers to any
material provided under this Agreement, including but not limited to bacteriophages provided by AmpliPhi.

 

 2.06 “Step” is defined by the
USAMRMC WRAIR Pilot Bioproduction Facility (PBF) as a scheduled production. It is identified on the PBF production schedule as
1-2 cleanroom weeks.

 

 2.07 “Subject Data” means all
recorded information first produced in the performance of this Agreement.

 

 2.08 “Subject Invention” means
any Invention Made as a consequence of, or in relation to, the performance of work under this Agreement.

  

 2.09 “USAMRMC” is the United
States Army Medical Research and Materiel Command, located at 504 Scott Street, Fort Detrick, Maryland 21702-5012, and includes
all subordinate units of the USAMRMC including but not limited to:

The Walter Reed Army Institute of Research (“WRAIR”)
and

The United States Army Medical Materiel Development
Activity (“USAMMDA”). 

The United States Army Institute of Surgical Research
(USAISR)

 

 Article 3. Research and Development
Scope and Administration

 

 3.01 Scope of Work. Research and
development performed under this Agreement shall be performed in accordance with the Scope of Work (“SOW”) incorporated
as a part of this Agreement at Appendix A. It is agreed that any descriptions, statements, or specifications in the SOW shall be
interpreted as goals and objectives of the services to be provided under this Agreement and not requirements or warranties. USAMRMC
and AmpliPhi will endeavor to achieve the goals and objectives of such services; however, each Party acknowledges that such goals
and objectives, or any anticipated schedule of performance, may not be achieved.

 

 3.01 Review of Work. Periodic conferences
shall be held between the Parties for the purpose of reviewing the progress of work. It is understood that the nature of this research
is such that completion within the period of performance specified, or within the limits of the financial support allocated, cannot
be guaranteed. Accordingly, all research will be performed in good faith.

 

 3.02 Principal Investigator. Any
work required by the USAMRMC under the SOW will be performed under the supervision of Mikeljon Nikolich, Chief, Department of Emerging
Bacterial Infections, Bacterial Diseases Branch USAMRMC (WRAIR), 503 Robert Grant Avenue, Silver Spring, MD, 20910, (301) 319-9469,
mikeljon.nikolich@us.armv.mil, and Dr. Cliff Snyder, Product Manager USAMRMC (USAMMDA), 1430 Veterans Drive, Fort Detrick,
MD, 21702, (301) 619-4821, Clifford.snyder@us.army.mil who, as co-principal investigators have responsibility for the scientific
and technical conduct of this project on behalf of the USAMRMC. Any work required by AmpliPhi under the SOW will be performed under
the supervision of Dr. Phil Young, 800 E. Leigh St Suite 54, Richmond, Virginia 23219, phone: 1-650-888-2422, pjy@ampliphibio.corn,
who, as co-principal investigator has responsibility for the scientific and technical conduct of this project on behalf of AmpliPhi.

 

    	Final_June 2013	3	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 3.03 Collaboration Changes. If at
any time the co-principal investigators determine that the research data dictates a substantial change in the direction of the
work, the parties shall make a good faith effort to agree on any necessary change to the SOW and make the change in writing by
amendment of this Agreement and/or the SOW as specified in §13.06 below.

 

 3.04 Final Report. The Parties shall
prepare a final report of the results of this project within three months after completing the work described in the SOW or of
termination of this Agreement in accordance with Article 10.

 

 Article 4. Ownership and Use of
Physical Property

 

 4.00 Ownership of Materials or Equipment.
All Materials or equipment developed, supplied, or acquired under this Agreement by the Parties shall be the property of the Party
which developed, supplied, or acquired the Materials or equipment. Equipment provided by USAMRMC which through normal use at the
termination of the Agreement has a salvage value that is less than the return shipping costs shall become the property of AmpliPhi.

 

 4.01 Use of Provided Materials. Both
Parties agree that any Materials relating to this Agreement that are provided by one Party to the other Party will be used for
research and development purposes only and only for purposes related to this Agreement and Scope of Work. The Materials shall not
be sold, offered for sale, used for commercial purposes, or be furnished to any third-party, including any contractor of USAMRMC,
without advance written approval from the provider of the Material (specifically from the official signing this Agreement or another
official to whom the authority has been delegated), and any use or furnishing of Materials shall be subject to the restrictions
and obligations imposed by this Agreement.

 

 Article 5. Financial Obligation

 

 5.00 Funding. Unless otherwise specifically
set forth in the SOW attached as Appendix A or in future modifications to this Agreement, or in agreed upon Budget attached as
Appendix B, each Party shall be individually responsible for funding its own researchers throughout this Agreement including salaries,
overhead and indirect costs, and each Party shall pay its own facilities costs, including the costs associated with USAMRMC facilities.
Each Party shall furnish the resources, personnel, Materials, equipment, and/or funds required to complete the work and develop
the deliverables described in the SOW.

 

 5.01 Completion of SOW and deliverables
described are contingent on availability of funding. Unfunded and/or unexpected tasks will be identified by the Parties so that
payment options can be discussed and negotiated. USAMRMC shall not be obligated to perform any of the research specified herein
or to take any other action required by this Agreement if the agreed upon funds are not deposited as required by this Article.

 

    	Final_June 2013	4	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 5.02 Both the USAMRMC and AmpliPhi are funding
this research and development effort. For tasks being funded by AmpliPhi, as designated in Appendix B and agreed upon by the Parties,
the performance of research and development by USAMRMC under this Agreement is conditioned on the advance payment by AmpliPhi.
Parties agree to confer and make either “Go” or ‘‘No-Go” decisions prior to the 90, 60, and 30 day
penalty triggering time-points for PBF “steps”. Such decision points are specifically for the purpose of avoiding or
minimizing cancellation or rescheduling charges as set forth below. Note: At the time of CRADA signing the Parties acknowledge
that initial PBF S aureus “steps” are scheduled within a 60 day timeframe and may change slightly dependant
on scientific/technical readiness. Therefore initial S aureus steps (Master and Working Cell banks) are not subject to the
60 or 30 day rescheduling penalty set forth below.

 

 5.03 Deposit Account: For USAMRMC
(WRAIR) Pilot Bioproduction Facility (PBF): AmpliPhi shall send advanced payment on an agreed upon schedule to USAMRMC (WRAIR)
for the performance of the research specified in Appendix A. A schedule of payments will be agreed upon by the Parties per the
Budget Appendix Band project timelines. USAMRMC (WRAIR) will invoice AmpliPhi for the “step” according to the cost
listed in Appendix B. The payments are due on receipt of the invoice and 30 days ahead of the scheduled “step” under
the SOW. Such funds shall be deposited in Department of the Army, Special Collaborative Agreement Account upon execution of this
agreement. The check(s) should be made payable to “U.S. Treasury/WRAIR” and sent via private carrier (Federal Express,
UPS. DHL. etc.) to: 

 

Susie Mathews, Pilot Bioproduction Facility

Walter Reed Army Institute of Research

9100 Brookville Road, Bldg 501

Silver Spring, Maryland 20910-7500

 

Notification of payment should also be made by email to:

Augustina.O.Asah-Boham.ctr@us.army.mil

 

 5.04 Cancellation and Reschedule charges
if Unilateral Decision by AmpliPhi: USAMRMC (WRAIR) shall charge AmpliPhi in full for any cancellation with in the 60 day window
of the scheduled “step” under the SOW i.e. charges for that scheduled “step” will be due in full, in the
event that AmpliPhi unilaterally cancels a “step” at the USAMRMC (WRAIR) PBF facility. Additionally, USAMRMC (WRAIR)
shall charge AmpliPhi in full for any reschedule within 30 days of the scheduled “step” under the SOW in the event
that AmpliPhi unilaterally requires rescheduling independently from the USAMRMC (WRAIR). The USAMRMC (WRAIR) will charge AmpliPhi
15% and 10% of the cost of the scheduled “step” respectively, if reschedule is within 60 days or 90 days of scheduled
“step” in the event that AmpliPhi unilaterally requires rescheduling independently from the USAMRMC Bacteriophage Working
Group.

 

 5.05 Cancellation and Reschedule charges
if Unilateral Decision by USAMRMC: In the event that USAMRMC (WRAIR) requires cancellation of the scheduled “step”
under the SOW independently of AmpliPhi, and is unable to reschedule within 60 days of the scheduled “step” under the
SOW, then USAMRMC (WRAIR) will turn over all materials manufactured as part of this CRADA to AmpliPhi and credit all monies paid
by AmpliPhi for the cancelled “step” toward a future “step”. AmpliPhi will be given the next available
PBF time slot suitable for the rescheduled “step”.

 

    	Final_June 2013	5	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 5.06 Cancellation and Reschedule charges
if Joint Decision between AmpliPhi and USAMRMC: If AmpliPhi and the USAMRMC through its Bacteriophage Working Group mutually
agree to cancel or reschedule a “step” at the USAMRMC (WRAIR) facility then reimbursement for the cost of loss as per
the timeframes and terms indicated in 5.04 (within 90, 60, 30 days of scheduled run) will be shared equally between AmpliPhi and
USAMRMC. Each Party (AmpliPhi and USAMRMC) will reimburse WRAIR 50% of costs.

 

 5.07 Storage charges: AmpliPhi will
be responsible for the cost of storage of manufactured materials outside of this CRADA (or future Modifications) SOW after the
first 6 months of production or receipt of any material for the next year. This cost will be based on the amount of space that
AmpliPhi’s materials occupy in storage units at that time. AmpliPhi will be invoiced once per year for materials stored on
site on/about 1 July of that year. AmpliPhi will have the option to assess current inventory and to make requests to destroy or
transfer material as appropriate at any time during the year. If AmpliPhi notifies USAMRMC (WRAIR) of intent to dispose of stored
material prior to the storage invoice date (July 1 of each year), they will not be charged for the unused storage space.

 

 5.08 Accounting Records. USAMRMC
(WRAIR) shall maintain separate and distinct current accounts, records, and other evidence supporting all its expenditures under
this Agreement. The accounts and records of USAMRMC (WRAIR) shall be available for reasonable inspection and copying by AmpliPhi
and/or its authorized representative.

  

 5.09 Deposit Account For USAMRMC (USAMMDA):

For agreed upon reimbursement of SOW tasks performed by USAMRMC
(USAMMDA),AmpliPhi will make check(s) payable to “U.S. Treasury/USAMMDA” and sent via private carrier (Federal Express,
UPS. DHL. etc.) to:

 

Judy Holian

Office of Research and Technology Applications

US Army Medical Materiel Development Activity 1430 Veterans
Drive

Fort Detrick, MD 21702-5009

 

Notification of payment should also be made by email to:

clifford.snyder@us.armv.mil

 

 5.10 Other Agreements. The Parties
may mutually agree to enter into additional or superseding mechanisms (procurement contract or cooperative agreement) to carry
out some or all of the work contemplated in this Agreement.

 

 Article 6. Patent Rights

 

 6.00 Reporting. The Parties shall
report to each other all Subject Inventions Made in the course of performing the SOW within 30 days of being Made or as soon as
practicable. All Subject Inventions Made during the performance of this Agreement also shall be listed in the Final Report required
by this Agreement.

 

    	Final_June 2013	6	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 6.01 AmpliPhi Inventions. USAMRMC
waives any ownership rights the US Government may have in Subject Invention s Made by AmpliPhi, its employees, contractors, consultant
s, agents, subsidiaries or affiliates, and agrees that AmpliPhi shall have the option to retain title in Subject Inventions Made
by AmpliPhi, ITS SUBSIDIARI ES OR AFFILIATES AND THEIR RESPECTIVE employees, contractors, consultants, agents. AmpliPhi shall notify
USAMRMC within 60 days after reporting the Subject Invention that it is making this election and agrees to timely file a patent
application on AmpliPhi’s Subject Invention, as described below in Article 6.05, at its own expense. Any Invention arising
under this Agreement is subject to the retention by the US Government of a nonexclusive, nontransferable, irrevocable, paid-up
license to practice, or have practiced, the Subject Invention throughout the world by or on behalf of the US Government for non-commercial
uses.

 

 6.02 USAMRMC Employee Inventions.
USAMRMC shall have the initial option to retain title to, and file a patent application for, each Subject Invention Made by USAMRMC
or its employees. The USAMRMC agrees to grant an exclusive license to any Subject Invention arising under this Agreement to AmpliPhi
in accordance with Title 15 US Code Section 3710a, on terms negotiated in good faith.

 

 6.03 Joint Inventions. Any Subject
Invention patentable under US or foreign patent law which is Made jointly by USAMRMC employees and AmpliPhi employees under this
Agreement shall be jointly owned by the Parties. At the appropriate time, the Parties shall discuss together a filing strategy
and filing expenses related to the filing of the patent covering the Subject Invention. If a Party decides not to retain its ownership
rights to a jointly owned Subject Invention, it shall offer to assign such rights to the other Party, pursuant to Paragraph 6.05,
below.

 

 6.04 Contractor Inventions. INTENTIONALLY
OMITTED.

 

 6.05 Filing of Patent Applications.
The Party having the right to retain title to, and file patent applications on, a specific Subject Invention may elect not to file
patent applications, provided it so advises the other Party within 90 days from the date it reports the Subject Invention to the
other Party. Thereafter, the other Party may elect to file patent applications on the Subject Invention and the Party initially
reporting the Subject Invention agrees to assign its ownership interest in the Subject Invention to the other Party.

 

 6.06 Patent Expenses. Except for
joint inventions as discussed in § 6.03, the expenses attendant to the filing of patent applications shall be borne by the
Party filing the patent application. Each Party shall provide the other Party with copies of the patent applications it files on
any Subject Invention along with the power to inspect and make copies of all documents retained in the official patent application
files by the applicable patent office. The Parties agree to reasonably cooperate with each other in the preparation and filing
of patent applications resulting from this Agreement.

 

    	Final_June 2013	7	 

    	 

    

  

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

  

 Article 7. Exclusive License

 

 7.01 Grant. The USAMRMC agrees to
grant to AmpliPhi an exclusive license in each US or foreign patent application, and patents issued thereon, covering Subject Inventions,
which are filed by the USAMRMC. Such license is subject to the reservation of a nonexclusive, nontransferable, irrevocable, paid-up
license to practice and have practiced the Subject Invention on behalf of the United States.

 

 7.02 Exclusive License Terms. AmpliPhi
shall elect or decline to exercise its right to acquire an exclusive license to any Subject Invention within six months of being
informed by the USAMRMC of the Subject Invention. The specific royalty rate and other terms of license shall be negotiated promptly
in good faith and in conformance with the laws of the United States.

 

 Article 8. Background Patents and
Inventions

 

 8.00 AmpliPhi holds enforceable Background
Patents and Background Inventions, meaning patents obtained and inventions conceived of and reduced to practice or made the subject
of a patent application in accordance with patent law in the United States, or in any other country or region, before the effective
date of this Agreement. These Background Patents and Background Inventions are the exclusive property of AmpliPhi and the USAMRMC
is not acquiring any rights in these Background Patents and Background Inventions through this Agreement, regardless of whether
the Background Patents and Background Inventions are improved, further developed or refined through this Agreement.

 

 Article 9. Subject Data and Confidential
Information

 

 9.00 Subject Data Ownership. Subject
Data shall be jointly owned by the Parties. Either Party, upon request of the other Party, shall have the right to review and to
request delivery of all Subject Data, and delivery shall be made to the requesting Party within two weeks of the request, except
to the extent that such Subject Data are subject to a claim of confidentiality or privilege by a third party.

 

 9.01 Confidential Information. The
Parties agree that any Confidential Information furnished by one Party (the Provider) to the other Party (the Recipient) under
this Agreement, or in contemplation of this Agreement, shall be used, reproduced and disclosed by the Recipient only for the purpose
of carrying out this Agreement, and shall not be released by the Recipient to third parties unless written con sent to such release
is obtained from the Provider.

 

 9.02 Army limited-access database.
Notwithstanding anything to the contrary in this Article, the existence of established CRADAs specifying areas of research and
their total dollar amounts may be documented on limited access, password-protected websites of the USAMRMC and the US Army, to
provide leadership with a complete picture of military research efforts.

 

 9.03 USAMRMC Contractors. AmpliPhi
acknowledges that USAMRMC will use contractors in the course of performing this Agreement. Any disclosure of AmpliPhi’s proprietary
information to USAMRMC ‘s contractors shall be solely for the purposes of carrying out this Agreement, and shall be subject
to the non-disclosure and confidentiality obligations imposed by USAMRMC on the contractors. USAMRMC agrees that it has or will
ensure that its contractors have the obligation not to disclose AmpliPhi’s Confidential Information, except as required by
law or court order, before Contractor employees have access to AmpliPhi’s Confidential Information under this Agreement.

 

    	Final_June 2013	8	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 9.04 AmpliPhi Contractors. USAMRMC
acknowledges and agrees to allow AmpliPhi’s disclosure of USAMRMC’s Confidential Information if applicable, and all
Subject Data, to AmpliPhi’s consultants or contractors for the purposes of carrying out this Agreement. AmpliPhi agrees that
it has or will ensure that its Contractors have the obligation not to disclose USAMRMC’s Confidential Information, except
as required by law or court order, before Contractor employees have access to USAMRMC’s Confidential Information under this
Agreement.

 

 9.05 Release Restrictions. To the
extent it does not reveal or relate to Confidential Information, USAMRMC shall have the right to use all Subject Data for any Governmental
purpose, but shall not release Subject Data publicly except: (i) USAMRM C in reporting on the results of research may publish Subject
Data in technical articles and other documents to the extent it determines to be appropriate; and (ii) USAMRMC may release Subject
Data where release is required by law or court order. The Parties agree to confer prior to the publication of Subject Data to assure
that no Confidential Information is released and that patent rights are not jeopardized. Prior to submitting a manuscript for review
which contains the results of the research under this Agreement, or prior to publication if no such review is made, each Party
shall be offered an ample opportunity to review any proposed manuscript and to file patent applications in a timely manner.

 

 9.06 FDA and FDA Documents. If this
Agreement results in a product regulated by the FDA, then AmpliPhi will file any required documentation with the FDA. It is understood
that AmpliPhi is to be the Investigational New Drug (JND) Sponsor as that term is defined by the FDA of any drug or biological
developed as a result of this Agreement. AmpliPhi will include USAMRMC representatives in all FDA correspondence, and FDA meetings
involving products collaborated on in the CRADA SOW.

 

 9.07 Clinical Specimens/Samples:
The Parties intend to collaborate in the conduct of future clinical trials. Rights and usage of any future clinical trial specimens
and samples will be shared by the Parties.

 

 Article 10. Termination

 

 10.00 Termination by Mutual Consent.
AmpliPhi and USAMRMC may elect to terminate this Agreement, or portions thereof, at any time by mutual consent.

 

 10.01 Termination by Unilateral Action.
Either Party may unilaterally terminate this entire Agreement at any time by giving the other Party written notice, not less than
60 days prior to the desired termination date.

 

 10.02 Termination Procedures. In
the event of termination, the Parties shall specify the disposition of all property, patents and other results of work accomplished
or in progress, arising from or performed under this Agreement by written notice. Upon receipt of a written termination notice,
the Parties shall not make any new commitments and shall, to the extent feasible, cancel all outstanding commitments that relate
to this Agreement. Notwithstanding any other provision of this Agreement, any exclusive license entered into by the Parties relating
to this Agreement shall be simultaneously terminated unless the Parties agree to retain such exclusive license.

 

    	Final_June 2013	9	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 Article 11. Disputes

 

 11.00 Settlement. Any dispute arising
under this Agreement which is not disposed of by agreement of the principal investigators shall be submitted jointly to the signatories
of this Agreement. A joint decision of the signatories or their designees shall be the disposition of such dispute. If the Parties
cannot reach a joint decision, either Party may terminate this Agreement immediately, and pursue all available remedies at law.

 

 Article 12. Liability

 

 12.01 Property. Neither Party shall
be responsible for damages to any property provided to, or acquired by, the other Party pursuant to this Agreement.

 

 12.02 No Warranty. The Parties make
no express or implied warranty as to any matter whatsoever, including the conditions of the research or any Invention or product,
whether tangible or intangible, Made, or developed under this agreement, or the merchantability, or fitness for a particular purpose
of the research or any Invention or product. The Parties further make no warranty that the use of any invention or other intellectual
property or product contributed, Made or developed under this Agreement will not infringe any other United States or foreign patent
or other intellectual property right.

 

 12.03 Limitation of Liability. In
the event of any material breach by a Party of its obligations under this Agreement, such Party shall be liable for the direct
damages suffered by the other Party that are caused by such breach in accordance with applicable law. In no event will any Party
be liable to any other Party for any indirect, incidental, special, compensatory, punitive, exemplary or consequential damages,
whether or not such Party was advised of the possibility of such damages or such damages were reasonably foreseeable.

 

 Article 13. Miscellaneous

 

 13.00 Governing Law. This Agreement
is a contract that shall be governed by the Jaws of the United States.

 

 13.01 Effect on current or future agreements
between the Parties. The terms of this Agreement affecting Intellectual Property rights, use of specimens, and ownership of
data for activities under this Agreement are not intended to and do not affect any other existing or future agreements between
any agency of the United States of America and AmpliPhi.

 

 13.02 Independent Contractors. The
relationship of the Parties to this Agreement is that of independent contractors and not as agents of each other or as joint venturers
or partners.

 

    	Final_June 2013	10	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 13.03 Use of Name or Endorsements.
(a) The Parties shall not use the name of the other Party on any product or service which is directly or indirectly related to
either this Agreement or any patent license or assignment agreement which implements this Agreement without the prior approval
of the other Party. (b) By entering into this Agreement, USAMRMC does not directly or indirectly endorse any product or service
provided, or to be provided, by AmpliPhi, its successors, assignees, or licensees. AmpliPhi shall not in any way imply that this
Agreement is an endorsement of any such product or service. Press releases or other public releases of information shall be coordinated
between the Parties prior to release, except that the USAMRMC may release the name of the AmpliPhi and the title of the research
without prior approval from AmpliPhi.

 

 13.04 Survival of Specified Provisions.
The rights specified in provisions of this Agreement covering Patent Rights (Article 6), Background Patents and Background Inventions
(Article 8), Subject Data and Confidential Information (Article 9), Disputes (Article 11), Liability (Article 12), Governing Law
(Article 13.00), Substitution for U.S. FDA Licensure (Article 13.08), and Transfer to Third Party (Article 13.09) shall
survive the termination or expiration of this Agreement.

 

 13.05 Notices. All notices pertaining
to or required by this Agreement shall be in writing and shall be signed by an authorized representative addressed as follows:

 

 

	If to AmpliPhi:	Technical Point of Contact (POC):
	 	Philip J. Young President and CEO
	 	AmpliPhi Bioscience Corporation
	 	E-mail : pjy@ampliphibio.com
	 	www.ampliphibio.com
	 	Phone: +1-650-888-2422
	 	 
	If to USAMRMC:	POC:
	 	LTC Jamie Blow, PhD
	 	US Army Medical Research and Materiel Command
	 	504 Scott Street
	 	Fort Detrick, Maryland 21702-5012
	 	001-301-619-7616
	 	Jamie.Blow@us.army.mil

 

    	Final_June 2013	11	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

	 	Technical POC:
	 	Dr. Mikeljon Nikolich
	 	Walter Reed Army Institute of Research
	 	503 Robert Grant Avenue
	 	Silver Spring, MD 20910
	 	Tel: 301-319-9469
	 	mikeljon.nikolich @us.army.mil
	 	 
	 	Technical POC:
	 	Dr. Cliff Snyder
	 	U S Army Medical Materiel Development Activity
	 	1430 Veterans Drive
	 	Fort Detrick, Maryland, 21702
	 	301 619-4821
	 	Clifford.Snyder@us.army.mil
	 	 
	 	CRADAPOC:
	 	Judy Holian, Chief ORTA Officer
	 	United States Army Medical Materiel Development Activity
	 	ATTN: Office of Research and Technology Applications
	 	1430 Veterans Drive
	 	Fort Detrick, MD 21702
	 	301-619-47 12
	 	Judy.Holian@us.army.mil
	 	 
	POC (WRAIR):	Commander/Director
	 	Walter Reed Army Institute of Research
	 	ATTN: Office of Research and Technology Applications
	 	503 Robert Grant Avenue
	 	Silver Spring, MD 20910-7500

 

Any Party may change such address(es) by notice given to the
other in the manner set forth above.

 

 13.06 Modifications. This Agreement
may be modified at any time upon mutual consent as agreed upon in writing in an amendment or other instrument signed by both Parties.
Modifications may include, but not be limited to, changes in the SOW.

 

 13.07 FDA Priority Review Voucher.
Should the specific phage products being collaborated on between the Parties qualify for and be awarded a priority review voucher,
or equivalent, under US or EU law, the Parties agree to equally share any benefit obtained therefrom. The Parties agree to discuss
the application, disposition, or use of any such voucher.

 

    	Final_June 2013	12	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

 13.08 Substitution for U.S. FDA Licensure.
To ensure the continued development and commercial availability of those therapeutic bacteriophage products which the Parties will
collaborate to develop under this Agreement, AmpliPhi will notify the USAMRMC in writing within 30 days of any AmpliPhi management
decision that AmpliPhi will not pursue U.S. FDA licensure of any such therapeutic bacteriophage product and/or commercial marketing
of such product as originally agreed upon. If requested by USAMRMC upon receipt of notice, AmpliPhi will transfer the IND, the
Orphan Drug Status, the New Drug Application and all associated product/regulatory documentation related to such therapeutic bacteriophage
product to USAMRMC. If such material was developed by the AmpliPhi, the provision of this material to USAMRMC will be upon fair
and reasonable terms negotiated in good faith between AmpliPhi and USAMRMC. If such material was provided by USAMRMC originally,
such material will be returned without negotiation or compensation.

 

 13.09 Transfer to Third Party. Also
to ensure the continued development and commercial availability for the U.S. Army of those therapeutic bacteriophage products which
the Parties will collaborate to develop under this Agreement, AmpliPhi will ensure that any transfer of the IND or NDA for such
products to a third party will ensure that the third party is obligated to comply with Article 13 paragraph 13.08 of this Agreement
as if it were AmpliPhi.

 

 Article 14. Duration of Agreement
and Effective Date

 

 14.00 Effective Date. This Agreement
shall enter into force as of the date it is signed by the last authorized representative of the Parties.

 

 14.01 Signature Execution. This Agreement
may be executed in one or more counterparts by the Parties by signature of a person having authority to bind the Party, which may
be a facsimile signature, each of which when executed and delivered, by facsimile transmission, mail, or email delivery will be
an original and all of which will constitute but one and the same Agreement.

 

 14.02 Expiration Date. This Agreement
will automatically expire five (5) years from effective date unless it is revised by written notice and mutual agreement or terminated
in accordance with the terms of this Agreement.

 

    	Final_June 2013	13	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

IN WITNESS WHEREOF, the Parties have caused
this agreement to be executed by their duly authorized representatives as follows:

 

	For AmpliPhi:	 	 	 
	 	 	 	 
	 	 	 	 
	Philip J. Young	 	Date	 
	President and CEO	 	 	 
	AmpliPhi BioSciences Corporation	 	 	 
	 	 	 	 
	For the U.S. Government (WRAIR):	 	 	 
	 	 	 	 
	 	 	 	 
	Ralph L. Erickson	 	Date	 
	Colonel, U.S. Army	 	 	 
	Commanding	 	 	 
	Walter Reed Army Institute of Research	 	 	 
	 	 	 	 
	For the U.S. Government (USAMMDA):	 	 	 
	 	 	 	 
	 	 	 	 
	Stephen J. Dalal	 	Date	 
	Colonel, VC, U.S. Army	 	 	 
	Commanding	 	 	 
	US Army Medical Materiel Development Activity	 	 	 

 

    	Final_June 2013	14	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Appendix A

Scope of Work: Bacteriophage Research
and Development

 

Research Title: Research and development of therapeutic bacteriophages
for bacterial soft skin and tissue infections and diarrheal diseases.

 

Acronyms:

	a.	DoD:	Department of Defense
	b.	AmpliPhi:	AmpliPhi Biosciences Corporation
	c.	BLA:	Biologic License Application
	d.	BPF:	Bioproduction Facility, WRAIR
	e.	FDA:	US Food and Drug Administration
	f.	IND:	Investigational New Drug
	g.	NDA:	New Drug Application
	h.	USAMRMC:	US Army Medical Research and Materiel Command, Fort Detrick
	i.	WRAIR:	Walter Reed Army Institute of Research,
	 	 	(a subordinate command of USAMRMC)
	j.	USAMMDA:	US Army Medical Materiel Development Activity,
	 	 	(the advanced development agency of USAMRMC)
	k.	cGMP:	Current Good Manufacturing Practice
	l.	GLP:	Good Laboratory Practice
	m.	GCP:	Good Clinical Practice

 

Background:

 

In recent decades, the increase in antibiotic-resistant bacterial
strains has become a serious threat to the treatment of infectious diseases. Drug resistance of S. aureus and Pseudomonas aeruginosa
has become a major problem in hospitals of many countries, including developed ones. A dramatic worldwide increase of antibiotic-resistant
bacterial infections has been observed over the last few decades. The CDC estimates that 80,000 hospitalized patients experience
a nosocomial infection with methicillin-resistant S. aureus (MRSA) every year. Multidrug resistant S. aureus and Pseudomonas aeruginosa
has also been a significant challenge for the United States military in its medical treatment facilities during the military engagements
of the past decade, including in combat wound infections.

 

Bacteriophages offer a unique approach to the treatment of bacterial
pathogens, ideally targeting a specific organism while having minimal impact on either host cells or the normal bacterial flora.
During the last several years phage treatment again became one of the most promising alternative therapies for treatment of bacterial
infections.

 

Bacteriophages (or phages) are viruses that infect and kill
bacteria but not mammalian cells. The implications of phage-directed bacterial death for treatment of bacterially-induced diseases
are apparent. Bacteriophages were first used to treat dysentery in Paris in 1919. The discovery of antibiotics essentially halted
the exploration of the use of bacteriophage therapy in the West, but the emergence of antibiotic-resistant bacteria has revived
interest in phage therapy. Unlike the situation in the West, bacteriophage therapy was developed within the former Soviet Union
and Poland, and is used today in Georgia and Russia, and to a limited extent in Poland.

 

    	Final_June 2013	15	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

AmpliPhi Biosciences Corporation and Special Phage Services
(“SPS”) formally merged in September 2012 forming a company with combined complementary technologies and expertise
in bacteriophage-based therapies to create a development stage pipeline of innovative anti-bacterials addressing the rapidly growing
global market treating antibiotic resistant infections. Over the past seven years both companies have developed portfolios of phage-based
antibacterial product candidates. The combination of the two companies creates the critical mass required to take these much-needed
products into clinical trials and set the stage for possible development and commercialization partnerships.

 

AmpliPhi’s focus is the development of treatments for
bacterial infections that are resistant to conventional antibiotics. Initial targets include certain of the so-called ESKAPE organisms
(an acronym for Enterococcusfaecium, Staphylococcus aureus, Klebsiella pneumoniae, Acinetobacter baumannii, Pseudomonas aeruginosa,
and Enterobacter species), for example global pandemic strains of Pseudomonas aeruginosa, MRSA (Methicillin Resistant
Staphylococcus aureus) and Klebsiella species, as well as Escherichia coli and other hospital-related infections.

 

There is currently no FDA-approved bacteriophage therapy for
human infections. USAMRMC has extensive experience as an FDA product sponsor for a wide range of product types, and has the capability
to manufacture cGMP products, interact with the FDA to develop an approval strategy, and file the necessary applications required
to initiate regulated clinical research. USAMRMC plans to collaborate with the AmpliPhi to develop phage-based therapeutics of
interest to the Department Of Defense (DoD). A collaboration between AmpliPhi and the United States Army will combine the experience,
expertise, and resources of both Parties to expedite development, testing, and FDA approval of therapeutic bacteriophages to treat
skin and soft tissue infections and diarrheal diseases.

 

Collaboration:

 

A. Parties agree to:

 

1) Work collaboratively on the development of bacteriophages
of mutual interest for FDA licensure.

 

2) Continue working towards successful testing and GMP manufacture
of bacteriophages at the WRAIR Pilot Bioproduction Facility (PBF).

 

3) Develop a detailed regulatory strategy and work plan to move
phage to FDA licensure.

 

4) Share bacteriophage development costs as negotiated and agreed
upon.

 

B. AmpliPhi agrees to:

 

1) Assume all responsibilities of sponsor with the FDA

 

    	Final_June 2013	16	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

2) Select and provide pure preparations of individual therapeutic
bacteriophage candidates against three target pathogens, Pseudomonas aeruginosa, Staphylococcus aureus and Escherichia
coli, with the identities of the therapeutic bacteriophages listed as 1) phages against Pseudomonas aeruginosa: Pa 35,
Pa 92, Pa 121, Pa 124, Pa 125, Pa 159, Pa 160, Pa 162, Pa 163, Pa 165, Pa 167, Pa 168, Pa 171, Pa 173, Pa 176, Pa 177, Pa 179,
Pa 182, Pa 187, Pa 189, Pa 190, Pa 191, Pa 193; 2) phages against Staphylococcus aureus: Sa 12, Sa 34, Sa 38, Sa 42, Sa
44, Sa 51, Sa 53, Sa 59; and 3) phages against Escherichia coli (Ec 8, Ec 9, Ec 15, Ec 16, Ec 35, Ec 38, Ec 40, Ec 43, Ec
50, Ec 53, Ec 60, Ec 61. These will be provided from the AmpliPhi phage library for testing against Army and WRAIR pathogen isolate
diversity panels. [Note: the identification numbers listed may be altered at a later stage as the therapeutic bacteriophages are
paired to an appropriate manufacturing strain.]

 

3) Provide to WRAIR (under separate Material Transfer Agreements)
bacterial host strains matched for optimal propagation of the Staphylococcus aureus phages that are provided. Pseudomonas
aeruginosa and Escherichia coli paired host strains either have already been or will be provided to WRAIR at a mutually
agreeable time.

 

4) Provide detailed methods for characterization and evaluation
of the bacteriophage so these analyses can be replicated at WRAIR. Protocols will be provided for testing bacterial strain sensitivity
to phage treatment.

 

5) Provide known sequence data for selected phages for the following
organisms: Pseudomonas aeruginosa, Staphylococcus aureus and Escherichia coli.

 

6) Provide strain history documentation for Pseudomonas aeruginosa,
Staphylococcus aureus and Escherichia coli bacterial strains being delivered for GMP production to include:

 

		a)	Original isolate, passage history, cell count (CFU/mL), evidence of purity and identification, phage susceptibility, and any
other informative test and characterization results, as available.

 

		b)	Growth characteristics: culture medium type and composition, additives, optical density and CFU during growth (growth curve);
optimal time of harvest and optimal density (OD/CFU) for freezing in vials.

 

7) For bacteriophage strains provide:

 

		a)	Identity, purity and potency testing documentation to include testing for residual host cell debris.

 

		b)	Harvesting procedures: clarification of phage harvest, optimal freezing methods and cryopreservative for harvest and purification
methods.

 

		c)	Provide stability data and storage conditions.

 

8) Coordinate bacteriophage manufacturing expert (Frenk Smrekar,
CEO of JAFRAL, Slovenia and/or others) to work at the WRAIR PBF for phage manufacture.

 

9) Provide GLP nonclinical toxicology animal testing if deemed
necessary.

 

    	Final_June 2013	17	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

10) Regarding FDA communications and meetings for CRADA- associated
bacteriophage products:

 

		a)	Provide/share with USAMRMC team all correspondence with the FDA.

 

		b)	Provide FDA submissions to USAMRMC team for advanced review and comment. Parties will agree in advance on review timeframe
and schedule.

 

		c)	Invite USAMRMC regulatory representatives to attend all FDA meetings.

 

C. USAMRMC (WRAIR) agrees to:

 

1) Through executed Material Transfer Agreements (MTAs) provide
to AmpliPhi bacterial strains (, Staphylococcus aureus and Escherichia coli) for:

 

		a)	Qualification, as needed, for manufacturing hosts

 

2) Produce GMP phage for Phase I and II clinical trials in collaboration
with AmpliPhi. This includes:

 

		a)	Produce GMP Master and Working Cell Banks for Staphylococcus aureus and Escherichia coli host strains.

 

		b)	Produce GMP phage Master and Working Seeds (if needed).

 

		c)	Produce GMP clinical bulk lots of phage.

 

		d)	Fill GMP clinical drug substance and drug product Jots into final vials.

 

		e)	Mix and fill drug product.

 

		f)	Test all cell banks, seeds, clinical lot bulk, and clinical lot final phage products for release according to proposed specifications.

 

		g)	Establish stability storage and testing program.

 

3) Conduct whole genome sequencing if required, of bacteriophage
provided by AmpliPhi.

 

USAMRMC (USAMMDA) agrees to:

 

4) Provide expertise and assistance for the development, and
completion of all necessary FDA documentation for each phage for FDA licensure.

 

5) Provide required documentation to AmpliPhi in proper format
for submission to the FDA.

 

6) Ensure GLP, GMP, and GCP compliance through USAMMDA Clinical
Services Support Division (CSSD), as mutually agreed upon. Such activities and associated costs will be described in a future Clinical
Trial Agreement or future Modification to the CRADA and may include:

 

    	Final_June 2013	18	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

		a)	Manufacturing oversight; review of batch records and testing and product technical support of the overall Quality Systems Management
for the program.

 

		b)	Provide Module 2 and 3 development and review.

 

		c)	Provide nonclinical study consultation and protocol design; review of draft final study report; provide Module 2 and 4 development
and review.

 

		d)	Provide clinical trial monitoring; protocol and Investigator’s Brochure consultation and review; site training.

 

		e)	Provide safety surveillance and maintain Part 11 compliant safety database.

 

		f)	Provide data management, and maintain Part 11 electronic data capture system.

 

		g)	Provide biostatistical support, including clinical study design consultation, SAS programming and data analysis.

 

7) Facilitate communications with ISR personnel for initial
development of clinical protocol (needed for pre-IND meeting discussions) and subsequent implementation of study.

 

8) Provide input and review for BARDA grant application.

 

Appendix B- Budgets

 

Appendix C – Roles and Responsibilities
Table

 

    	Final_June 2013	19	 

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Appendix B- Budget

 

[*****]

 

    	20

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Appendix C – Roles and Responsibilities Table

 

	Working document to outline overall program
    responsibilities.  USAMRMC and AmpliPhi agree to update this checklist upon mutual agreement to the changes.
	 	 	US

        Army
	 	AmpliPhi
	 
	Administrative	 	 	 	 	 
	Establish MTA	 	X	 	X	 
	Establish CRADA 	 	X	 	X	 
	 	 	 	 	 	 
	Lead Selection (burns)	 	 	 	 	 
	Prep phage stocks (AmpliPhi)	 	 	 	X	 
	Ship P aer phage and mfr hosts to USArmy	 	 	 	X	 
	Screen phage against burn isolates	 	X	 	 	 
	Identify prototype mixes	 	X	 	 	 
	Transfer phage for PD	 	X	 	 	 
	Conduct PD	 	 	 	X	 
	Sequence analysis	 	P	 	S	 
	Test prototype mixes 	 	X	 	 	 
	Optimize prototype mixes	 	X	 	 	 
	Test prototype mixes	 	X	 	 	 
	Identify Lead	 	X	 	 	 
	 	 	 	 	 	 
	Lead Selection (wounds)	 	 	 	 	 
	Ship S aur phage and likely mfr hosts to USArmy	 	 	 	X	 
	Screen phage against wound isolates	 	X	 	 	 
	Identify potential manufacturing hosts	 	X	 	 	 
	Grow candidate phage in manufacturing hosts	 	X	 	 	 
	Screen candidate phage against wound isolates	 	X	 	 	 
	Identify prototype mixes 	 	X	 	 	 
	Conduct PD	 	 	 	X	 
	Sequence analysis	 	P	 	S	 
	Test prototype mixes 	 	X	 	 	 
	Optimize prototype mixes	 	X	 	 	 
	Test prototype mixes	 	X	 	 	 
	Identify Lead 	 	X	 	 	 
	 	 	 	 	 	 
	Surveillance Program	 	 	 	 	 
	Source bacterial isolates	 	P	 	S	 
	Screen product sensitivity 	 	 	 	X	 

 

    	1

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

	CMC	 	 	 	 	 
	Lock down manufacturing process	 	 	 	X	 
	 	 	 	 	 	 
	MCB	 	 	 	 	 
	Ship bacteria 	 	 	 	X	 
	Prepare MCBs 	 	X	 	 	 
	Release testing - MCBs	 	X	 	 	 
	 	 	 	 	 	 
	Phage Mfr - Burns	 	 	 	 	 
	Tech transfer	 	 	 	X	 
	Manufacture engineering (CF) lots	 	X	 	 	 
	Purify engineering (CF) lots	 	X	 	 	 
	Manufacture 3 x burn phage DS lots 	 	X	 	 	 
	Purify 3 burn phage DS lots	 	X	 	 	 
	Release testing - burn phage DS lots 	 	X	 	 	 
	Fill engineering lot burn phage DP	 	X	 	 	 
	Release testing - burn phage DP lots	 	X	 	 	 
	 	 	 	 	 	 
	Phage Mfr - CF	 	 	 	 	 
	Manufacture 3 x CF phage lots 	 	X	 	 	 
	Purify 3 CF phage lots  	 	X	 	 	 
	Release testing - CF phage lots	 	X	 	 	 
	 	 	 	 	 	 
	Phage Mfr - MRSA	 	 	 	 	 
	Manufacture 3 x MRSA phage lots 	 	X	 	 	 
	Purify 3 MRSA phage lots	 	X	 	 	 
	Release testing - MRSA phage lots	 	X	 	 	 
	 	 	 	 	 	 
	Stability Program - Burns, CF and Wounds	 	 	 	 	 
	MCB (and WCB)	 	X	 	 	 
	DS 	 	X	 	 	 
	DP 	 	X	 	 	 
	 	 	 	 	 	 
	Analytical - Burns, CF and Wounds 	 	 	 	 	 
	Develop HCP assay	 	 	 	X	 
	Transfer of analytical methods	 	 	 	X	 
	 	 	 	 	 	 
	Regulatory/Project management-Burns, CF and 	 	 	 	 	 
	Request pre-IND meeting 	 	 	 	X	 
	Prepare request letter	 	S	 	P	 
	Prepare briefing document (including clinical synopsis)	 	S	 	P	 
	F-2-F	 	S	 	P	 
	Submit briefing document 	 	 	 	X	 
	Conduct pre-IND meeting 	 	S	 	P	 
	Prepare IND 	 	S	 	P	 

 

    	2

    	 

    

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

	File IND	 	 	 	X	 
	 	 	 	 	 	 
	Nonclinical - Burns, CF and Wounds 	 	 	 	 	 
	Conduct pharmacology studies 	 	P	 	S	 
	Review protocol and contract	 	P	 	S	 
	Report review	 	P	 	S	 
	Report writing	 	P	 	 	 
	 	 	 	 	 	 
	Conduct tox studies - Burns, CF and Wounds	 	 	 	 	 
	Single dose tox	 	S	 	P	 
	Repeat dose tox	 	S	 	P	 
	Report writing  	 	X	 	 	 
	Report review	 	 	 	X	 
	 	 	 	 	 	 
	Clinical - Burns, CF and Wounds 	 	 	 	 	 
	Protocol writing 	 	X	 	 	 
	Protocol review 	 	 	 	X	 
	Prepare IB 	 	P	 	S	 
	Prepare budgets and contracts with clinical sites(s)	 	X	 	 	 
	Conduct Investigator meeting	 	S	 	P	 
	Review CRF with Clinical Site personnel	 	X	 	 	 
	Submit protocol for IRB review	 	X	 	 	 
	Initiation visits  	 	X	 	 	 
	Report writing  	 	X	 	 	 
	Report review	 	 	 	X	 
	 	 	 	 	 	 
	Site Management	 	 	 	 	 
	Monitoring	 	X	 	 	 
	 	 	 	 	 	 
	Data management	 	 	 	 	 
	Set up clinical (and safety) database	 	X	 	 	 
	Draft CRF	 	X	 	 	 
	Finalize CRF 	 	X	 	 	 
	Database cleaning	 	X	 	 	 
	Database lock	 	X	 	 	 

 

    	3

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