Document:

EX-10.9

 Exhibit 10.9 

CONTRACT RESEARCH AND LICENSE AGREEMENT 

THIS CONTRACT RESEARCH AND LICENSE AGREEMENT (this “Agreement”) is entered into as of April 8, 2014 (the
“Effective Date”) by and between MERUS B.V., a Dutch company having an office at Padualaan 8, 3584 CH Utrecht, the Netherlands (“Merus”), and Ono Pharmaceutical Co., Ltd., a Japanese company with its head
offices located at 8-2, Kyutaromachi 1-chome, Chuo-ku, Osaka 541-8564, Japan (“Ono”). Merus and Ono may each be referred to individually as a “Party”, and collectively as the
“Parties”. 
 RECITALS 

WHEREAS, Merus is the owner of proprietary MeMo® mouse, Spleen to ScreenTM, CH3 dimerization and CH2 silencing technologies for the efficient generation of next generation BiclonicsTM bispecific antibodies for therapy; and 

WHEREAS, Merus has expertise and intellectual property related to the above mentioned technologies, including related know how and
materials; and 
 WHEREAS, Ono is engaged in the research, development and commercialization of pharmaceutical products; and 

WHEREAS, Ono and Merus desire to enter into a collaborative relationship whereby Merus will use its MeMo® mouse, Spleen to ScreenTM, CH3 dimerization and CH2 silencing technologies for the efficient generation of next generation BiclonicsTM
[***] bispecific antibodies with immunosuppressive properties to be further characterized and developed by Ono under a license from Merus for preclinical development, clinical development and commercialization by Ono, subject to the terms and
conditions set forth herein. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 1. DEFINITIONS 

1.1 Capitalized Terms. For purposes of this Agreement (including its appended schedules and exhibits), the capitalized terms used
in this Agreement shall have the defined meanings set forth below or elsewhere in this Agreement. Capitalized singular, plural, and other variant forms of the defined terms shall have the corresponding meanings. 

“Affiliate”means, with respect to a Party, any company or other entity controlled by, controlling, or under common control
with such Party, where the term “controlled by” (with correlative meanings for the terms “controlling” and “under common control with”) means for purposes of this definition the possession, through ownership or control,
directly or indirectly, of at least 50% of the voting power, which voting power in the case of a corporation is entitled to vote for the election of directors, or otherwise has the actual right and ability to control and direct the management and
business affairs. 
  
 [***] Certain information in this document has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 “Antibody” or “Antibodies” shall mean a molecule, or a set of
genes encoding such a molecule, comprising or containing one or more immunoglobulin variable domains or any existing or future fragments, variants, modifications or derivatives thereof. 

“Biclonics Antibody” or “Biclonics” means any bispecific Antibody generated using Merus Technology,
specifically the [***], from [***] contains a [***] and a [***], which bispecific antibody binds to 2 different targets as described in Exhibit A of this Agreement. 

“Business Day(s)” means any day other than (i) Saturday, Sunday or other national holidays in Japan and/or the
Netherlands, and (ii) a day within Ono’s or Merus’ corporate holidays. Each Party shall provide the other Party with the relevant corporate calendar of the following year promptly after it is available. 

“[***]” means [***] encoded by the [***] gene. 

“Commercial Sale” means, with respect to a Product, the sale in a commercial arms’-length transaction of such Product
intended for end use or consumption for any application in the Field of Use in a country after the governing Regulatory Authority of such country has granted Regulatory Approval of the Product for such end use or consumption in the Field of Use
(which will include sales of a Product occurring prior to Regulatory Approval in a country if such sold Products are intended to be used and are sold for use by an end user in such country after Regulatory Approval is obtained in such
country). Sale to an Affiliate or Sublicensee for distribution will not constitute a Commercial Sale. 
 “Confidential
Information” has the meaning provided in Section 10.1. 
 “Controlled”means, in reference to any information,
materials, Patent Rights or other intellectual property, that the applicable Party owns, possesses, or has a license to such intellectual property or intellectual property right (including through control of an Affiliate or through a license from an
Affiliate or Third Party) of the right or ability to grant the other Party a license or a sublicense or other right (as applicable) under same as provided in this Agreement without violating the terms of any agreement or other arrangement with any
Third Party. 
 “Cover” means, with respect to a claim of any Patent Rights in reference to specified subject matter (such
as a composition of matter or method of use), reading on or literally, or by the doctrine of equivalents, encompassing such subject matter, whether generically or specifically. 

“EMA” means the European Medicines Agency, a decentralized body of the European Union, located in London, whose main
responsibility is the protection and promotion of public and animal health, through the evaluation and supervision of medicines for human and veterinary use, or any successor agency thereto having the administrative authority to regulate the
marketing of human pharmaceutical products or biological therapeutic products, delivery systems and devices in the European Union. 

“FDA” means the United States Food and Drug Administration, or any successor agency thereto having the administrative
authority to regulate the marketing of human pharmaceutical products or biological therapeutic products, delivery systems and devices in the United States of America. 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 “[***]” means the [***]. 

“FTE” or “Full Time Equivalent” means the equivalent of the work of one scientist full time during one full
year of work during the Research Term, meaning a total of at least 1600 working hours. Each Party understands that scientists who are working on the Research Program subject to the terms and conditions of this Agreement also may be working
(during periods that do not count towards the FTE allocation devoted to the Research Program) on other independent projects. 

“Human Antibodies” shall mean any [***]; specifically (a) the [***] or (b) from [***]. 

“IND” means an investigational drug application, including any amendments, to perform clinical investigation(s) of a Product
as an investigational new drug or investigational medicinal product or the like that is filed with a Regulatory Authority in any jurisdiction for approval to conduct clinical studies of such Product in humans prior to the delivery of a Regulatory
Approval or any request for authorization to use in an emergency situation filed with a Regulatory Authority in any jurisdiction prior to delivery of a Regulatory Approval. 

“Joint Steering Committee” or “JSC” means the committee comprised of three representatives of each of Ono
and Merus, unless otherwise agreed by the Parties, to oversee the Research Program pursuant to Section 3.1. 

“Know-How” means all know-how, whether or not reduced to writing, technical information, data, ideas, concepts, materials
(including but not limited to chemical and biological materials), techniques, specifications, processes, software, algorithms, practices, methods, material compositions, formulas, discoveries, inventions, trade practices, and trade secrets, whether
or not patentable. 
 “Lead Biclonics” means one or more Target Specific Biclonics that is/are functional and identified by
Ono in accordance with the Specifications as further described in Exhibit B of this Agreement. For clarity, Lead Biclonics includes Successful Biclonics and Licensed Biclonics. 

“Licensed Biclonics” means any and all Successful Biclonics that is/are identified and selected by Ono for further research,
development and commercialization as a Product. 
 “Merus IP” means (i) Merus Patent Rights, (ii) Merus Know-How
and (iii) any related Research Tool Controlled by Merus as of the Effective Date. 
 “Merus Know-How” means the
Know-How Controlled by Merus as of the Effective Date or developed by Merus during the Term that are necessary for research, development, use manufacturing and/or commercialization activities of Ono, its Affiliates or Sublicensees with respect to
Lead Biclonics and/or Products. For clarity, Merus Know-How will not include Merus Patent Rights and/or Ono Patent Rights. 
 “Merus
Patent Rights” means the Patent Rights (a) Controlled by Merus as of the Effective Date relating to the Merus Technology or (b) Covering any invention and 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
discovery conceived, developed or reduced to practice solely by either Party, or jointly by both Parties during the Term relating to (i) any improvement of Merus Technology, (ii) any
process or material for making, delivering, or formulating bispecific Antibodies generated using Merus Technology, (iii) any method of using bispecific Antibodies generated using Merus Technology, or (iv) any Research Tool or any process
or material for making or using a Research Tool, or (v) a Human Antibody against either [***] or the [***], but excluding Human Antibody of Lead Biclonics, in each case of subsection (i) through (v) in this paragraph excluding Ono
Patent Rights. The Merus Patent Rights include the Patent Rights listed in Exhibit C. 
 “Merus Technology” means [***] for
the efficient generation of BiclonicsTM bispecific antibodies. 
 “Net
Sales” means the gross amount invoiced on sales of a Product by Ono or its Affiliates or Sublicensees to Third Party distributor(s), wholesaler, medical institution or otherwise, less the following deductions related to the Products:
(i) direct credits and allowances or adjustments granted to such Third Parties on account of price adjustments, government or other rebates, rejections or returns in respect of the Products; (ii) any trade or cash discounts, rebates,
charge-backs or administrative fees or other price reductions granted to such Third Parties who are involved in the acquisition, dispensing, utilization or management of prescriptions; (iii) any sales or other like taxes (but specifically
excluding any taxes based on net income imposed upon the sale of the Products) to the extent included in the gross sales price, (iv) the costs of freight, transport, insurance, postage, handling and any other similar charges relating to the
sale, transportation, delivery or return of the Development Product, (v) commissions related to import of the Product paid to Third Parties, (vi) [***], and (vii) [***]. In the event any combination product, sold in a finished dosage
form containing a Licensed Biclonics and other therapeutic component(s) which is not the Licensed Biclonics, all as active pharmaceutical ingredients (as opposed to excipients or additives) is sold in any country, the Parties shall discuss in good
faith to agree on the calculation method of Net Sales of such combination product reflecting relative value of the Licensed Biclonics and other therapeutic component(s) contained in such combination product by means of prices listed in publicly
available drug tariff of Development Product containing the Licensed Biclonics and a pharmaceutical product containing such other therapeutic component each as a sole active pharmaceutical ingredient and sold as a single agent, or by any other
means. 
 “Ono IP” means (i) Ono Patent Rights, (ii) Ono Know-How and (iii) any related Research Tool
Controlled by Ono as of the Effective Date. 
 “Ono Know-How” means the Know-How Controlled by Ono as of the Effective Date
or developed by Ono during the Term under this Agreement and that are reasonably required for the practice of Ono Patent Rights. For clarity, Ono Know-How will not include Merus Patent Rights and/or Ono Patent Rights. 

“Ono Patent Rights” means the Patent Rights (a) Controlled by Ono as of the Effective Date specifically relating to the
Research Program or (b) Covering any invention or discovery conceived, developed or reduced to practice solely by either Party, or jointly by both Parties, during the Term relating to (i) any composition of matter claims relating to Lead
Biclonics and/or Human Antibody of Lead Biclonics, (ii) any process or material for making, delivering, or formulating Lead Biclonics, (iii) any method of using Lead Biclonics, or (iv) any Research Tool or any process or material for
making or using a Research Tool specifically relating to Lead Biclonics. 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 “Ono Proceeds” means the gross amounts [***] by Ono to any of its Affiliates or
Sublicensees, including but not limited to [***], [***] in partial consideration [***] and the later of [***]. For clarity Ono Proceeds shall not include [***] and [***]. 

“Patent Rights” means, with respect to a particular invention, any and all original (priority-establishing) patent
applications filed anywhere in the world including any claim Covering the invention, including provisional and non-provisional applications, and all related applications thereafter filed including any claim Covering such invention or including a
common priority right, including any continuations, continuations-in-part, divisional and substitute applications, any patents issued or granted from any such patent applications, and any reissues, renewals, reexaminations, extensions (including by
virtue of any supplementary protection certificates) of any such patents, and any confirmation patents, inventor’s certificates or registration patents or patents of addition based on any such patents, and all foreign counterparts or
equivalents in any country or jurisdiction of any of the foregoing. 
 “[***]” means [***] encoded by the gene
[***]. 
 “Phase I Clinical Trial” means that portion of a clinical drug development program which provides a clinical
trial involving the first introduction into humans of a Product with the purpose of determining human toxicity, metabolism, absorption, elimination and/or other pharmacological action, as more fully defined in 21 C.F.R. § 312.21(a), or its
successor regulation, or the equivalent in any foreign country. 
 “Phase IIb Clinical Trial” means that portion of a
clinical drug development program which provides a definitive, well controlled clinical trial of a Product in the relevant patient population for the purpose of determining its safety and efficacy in the proposed therapeutic indication, as more
fully described in 21 C.F.R. § 312.21(b), or its successor regulation, or the equivalent in any foreign country. 
 “Phase
III Clinical Trial” means that portion of a clinical drug development program which provides an expanded trial of a Product on sufficient numbers of patients to establish the safety and efficacy of a Product and generate
pharmaco-economic/benefit-risk data to support Regulatory Approval in the proposed therapeutic indication or provide an adequate basis for physician labeling, as more fully defined in 21 C.F.R. § 312.21(c), or its successor regulation, or
the equivalent in any foreign country. 
 “PMDA” means the Pharmaceuticals and Medical Devices Agency, a Japanese
regulatory agency, working together with Ministry of Health, Labour and Welfare with the obligation to protect the public health by assuring safety, efficacy and quality of pharmaceuticals and medical devices. 

“Preclinical Proof of Mechanism” means immune suppressive effects mediated through [***] in one relevant animal model as more
specifically set forth in Exhibit B. 
 “Product” means a pharmaceutical product containing a Licensed Biclonics in final
form suitable for human use. 
 “Prosecute”, “Prosecuting” or “Prosecution” means, with
regard to specified Patent Rights, preparing, filing, prosecuting, maintaining, and defending such 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
Patent Rights, including with respect to any reexamination, review, reissue, interference, or opposition proceedings. For the avoidance of doubt, “Prosecuting” excludes any infringement
suits or other legal proceedings to enforce the specified Patent Rights, regardless of whether or not such proceedings involve the defense of the Patent Rights in suit. 

“Regulatory Approval” means receipt of any and all approvals, licenses, registrations, or authorizations of any country,
federal, supranational, state or local regulatory agency, ministry, department, bureau or other government entity that are necessary for the use or sale of a particular Product in the jurisdiction for a particular indication, including any approvals
for importation, manufacture, pricing, and/or reimbursement where necessary. 
 “Regulatory Authority” means any country,
federal, supranational, state or local regulatory agency, ministry, department, bureau or other governmental entity having authority in any country, region, or supra-national jurisdiction to grant a Regulatory Approval, such as the FDA, EMA, PMDA or
any equivalent governmental entity in any other country. 
 “Research” means any research work performed by any of the
Parties or on their behalf under the Research Program pursuant to the Research Plan. 
 “Research Budget” means the
itemized budget described in Exhibit A specifying those Merus FTEs to be funded by Ono pursuant to Section 6.2 and any personnel, equipment, reagents and all other expenses including support staff and overhead for or associated with an FTE,
which budget and any amendment thereto shall be in writing and signed by duly authorized representatives of both Parties. 

“Research Plan” means the written plan outlining the Parties’ respective responsibilities for conducting the Research
Program, setting forth the Research Budget, and allocating the Merus FTEs funded by Ono, as such plan may be amended from time to time by the Parties. The initial Research Plan has been agreed upon by the Parties as of the Effective Date and is
described in Exhibit A. 
 “Research Program” means a collaborative research program carried out by Merus and Ono during
the Research Term pursuant to Articles 3 and 4 to conduct pre-clinical research and process development related to Target Specific Biclonics in the Field of Use. 

“Research Term” means the period beginning on the Effective Date and ending on the date of Ono’s payment of RME4 in
accordance with Section 6.3(a), or earlier terminated on early termination of this Agreement in accordance with Article 11. 

“Research Tool” means any assay method, protocol, reagent, or material Controlled by Merus or Ono and necessary or useful for
carrying out Research activities pursuant to the Research Plan. 
 “Royalty Term” means with respect to a particular
Product in a particular country, the period commencing on the first Commercial Sale of the Product in such country and ending upon the expiration of the last to expire Valid Claim of the licensed Merus Patent Rights in such country Covering the
Product. 
 “Senyoh Jisshiken Tohroku” has the meaning set forth in Section 5.3. 

  
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 “Sublicensee” means a Third Party or Affiliate to whom Ono has granted a license
or sublicense of the right to use, have used, make, have made, market, have marketed, offer for sale, have offered to sell, sell, have sold, export and/or import one or more Licensed Biclonics and/or Products. 

“Successful Biclonics” means one or more Target Specific Biclonics within the Lead Biclonics for which Preclinical Proof of
Mechanism is demonstrated as further described in Exhibit B of this Agreement. 
 “Target Combination” means [***] and
[***]. 
 “Target Specific Biclonics” means one or more Biclonics that bind to the Target Combination and that is/are
transferred by Merus to Ono for identification of the Lead Biclonics. 
 “[***]” means [***] made up of [***]. 

“Territory” means the entire world. 

“Term” means the term of this Agreement as further provided in Section 11.1. 

“Third Party” means any entity other than Merus or Ono or an Affiliate of Merus or Ono. 

“Valid Claim” means (a) an unexpired claim of an issued patent that has not been found or held to be invalid or
unenforceable by a court or other authority in the subject country of competent jurisdiction, from which decision no appeal is taken or can be taken; or (b) a pending allowed or finally unrejected claim of a pending application that has its
earliest priority date (by filing or claiming the benefit of the earlier filing date of one or more related applications) no more than [***] ([***]) years prior to the date upon which pendency of the claim is determined. 

1.2 Miscellaneous Interpretation Aids. 

(a) Each use in this Agreement of the term “including”, “comprising”, or “containing” (or a variant form
thereof) shall be understood to have an open, non-limiting meaning. Thus, e.g., “including” shall be interpreted as meaning “including without limitation” or “including but not limited to”, regardless of whether the
words “without limitation” or “but not limited to” actually follow the term “including”. Similarly, the terms “such as”, “for example”, and “e.g.” shall be understood as referring to
non-limiting illustrations or examples. 
 (b) “Herein,” “hereby,” “hereunder,” “hereof,” and
other equivalent words shall be understood as referring to this Agreement in its entirety, and not solely to the particular provision or portion of this Agreement in which any such word is used. 

(c) Wherever used herein, any pronoun or pronouns shall be understood to cover all genders. 

(d) All references to days, months, quarters, or years shall be understood to refer, respectively, to calendar days, calendar months,
calendar quarters, or calendar years, unless otherwise indicated. 
 (e) Any reference to a supranational, national, federal, state,
local, or foreign statute or law shall be understood to refer to the applicable version of the law or statute then in force (as it may have been amended or superseded) as well as all rules and regulations promulgated thereunder, unless the context
requires otherwise. 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 (f) All references to “€” shall mean EUROS. 

2. RESEARCH COLLABORATION
 2.1
Diligence. Subject to the terms and conditions set forth herein, and commencing on the Effective Date, the Parties will each use commercially reasonable efforts during the Research Term to conduct their respective activities in the Research
Program on a collaborative basis and in accordance with this Agreement, with the goal of performing pre-clinical research related to Target Specific Biclonics and Successful Biclonics. The Parties will conduct the Research Program in accordance
with the Research Plan (Exhibit A), as may be amended or revised by the JSC from time to time. The Research Plan will specify the scientific direction and Research activities, and allocate Research Program responsibilities and resources between the
Parties in a manner consistent with this Agreement. 
 2.2 Exclusive Collaboration. 

(a) Merus’ conduct of research activities related to Target Specific Biclonics shall be exclusively carried out for the sole
benefit of Ono in the Research Program or in support thereof as provided for hereunder. Neither Merus nor its Affiliates shall conduct, alone or in collaboration with any Third Parties, (i) any independent research, development or
commercialization of [***] or (ii) any independent development or commercialization of any [***] and shall [***] during (a) [***], or (b) [***]. 

(b) Notwithstanding the provisions set forth in Section 2.2(a), if Ono does not perform any relevant research activities for a
period of more than [***] ([***]) months following [***] without any reasonable justification, the exclusivity under this Section 2.2 will terminate and Merus may then [***], provided that [***]. 

(c) Notwithstanding the provisions set forth in Section 2.2(a), in case of an assignment of this Agreement by Merus as indicated
in Section 14.6(a) to a Third Party that, prior to the transfer or sale of all or substantially all of the business of Merus, already had a license from Merus under Merus Technology that included the Target Combination, the exclusivity
conditions under Section 2.2(a) will not apply to such Third Party. 
 3. GOVERNANCE

3.1 Joint Steering Committee. The Parties shall establish the Joint Steering Committee within [***] ([***]) days of the Effective Date
of this Agreement. The Parties’ initial members of the JSC are identified in Exhibit E. Promptly after the Effective Date, one member of the JSC will be selected by each Party to act as the chairperson of the JSC. The JSC will meet at
least [***] per year during the Research Term. Such meetings may be conducted by videoconference, teleconference or in person, as agreed by the Parties, and each Party shall bear its own costs, including travel, lodging, food and telephone or
video conference costs, for its personnel serving on the JSC or attending any meeting of the JSC. Upon completion of the Research Term, the JSC will be disbanded. Promptly after the Effective Date, the Parties will establish a project team (the
“Project Team”) consisting of key employees of both 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
Parties performing or involved in the Research Program. One of the Project Team members of each Party shall be appointed as a project manager (a “Project Manager”) to coordinate its
part of the activities under the Research Program. The Project Managers will be the primary contacts between the Parties with respect to all Research activities performed under the Research Program. Meetings of the Project Team may be conducted by
videoconference, teleconference or in person, to discuss the results of the Research and progress or delay thereof, at least once a month, or will be held ad hoc upon reasonable request of Project Manager of a Party and acceptable by the same
of the other Party, acceptance of which will not be unreasonably withheld or delayed. Either Party may change its Project Manager upon written notice to the other Party. A Project Manager may be a member of the JSC. 

3.2 Decision making. The purpose of the JSC is to coordinate the Research efforts of the Parties and oversee the progress of the work
being done under the Research Plan during the Research Term. The JSC will set specific Research goals, evaluate the results of the Research, discuss information relating to the Research, assign priorities and ensure that there is appropriate
scientific direction for the collaboration of the Parties under the Research Plan. Subject to the terms and conditions of this Agreement, the JSC may modify the Research Plan with respect to the Parties’ respective Research responsibilities as
deemed appropriate and submit recommended Research Budget modifications to the Parties for review and approval. The specific number of Merus FTEs that Ono will fund is specified in the Research Plan. Regardless of the number of representatives,
each Party will present one consolidated view via one vote. All decisions of the JSC will be made by unanimous vote, and if the JSC is unable to reach a decision by unanimous vote, Section 13.1 shall apply. If following the application of
Section 13.1(a) there is still no consensus, then [***] on such matter.
 3.3 Minutes. The JSC chairperson, or his or her
designee, will prepare and distribute draft of complete and accurate minutes of all discussions occurring at the JSC meetings regarding matters within its purview and all matters decided upon at the meetings within [***] ([***]) Business Days after
such meeting, except that matters reflecting legal advice of counsel will not be included in such minutes, and the minutes shall be finalized by agreement of both Parties. Communications reflecting legal or regulatory advice may, to the extent
desired, shall be kept in a separate file with the legend “Attorney-Client Communications Privileged and Confidential”. 
 3.4
Responsibilities. The JSC shall have no authority to modify any provision set forth in the body of this Agreement, including any payment conditions or terms, periods for performance, or obligations of the Parties, and such modification is only
effective and in force in a writing expressly stated for such purpose and signed by the Parties hereto pursuant to Section 14.2. The JSC shall have authority to: 

(a) allocate (and reallocate from time to time) activities in the Research Program to the Ono funded FTEs committed by Merus to the ongoing
Research Program; 
 (b) modify the Research Plan, excluding the Research Budget, or propose modifications to the Research Budget, subject
to the applicable provisions of this Agreement; 
 (c) provide general oversight for the Parties’ activities in the Research Program;
and 
 (d) periodically review the goals, strategies, and results of the Research Program. 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 3.5 Research Plan. The initial Research Plan as agreed to by the Parties as of the
Effective Date is described in Exhibit A. The JSC will be responsible for reviewing and approving any updates or amendments to the Research Plan except as related to the Research Budget and for making any recommendations for additional resources or
otherwise proposing any changes to the Research Budget. 
 4. RESEARCH AND DEVELOPMENT OF SUCCESSFUL BICLONICS 

4.1 Merus Research Commitment and Performance. During the Research Term, Merus will devote to the Research Program the FTEs as
designated in the Research Plan, which shall be funded by Ono, subject to Ono’s compliance with its funding obligations under Section 6.2. Merus shall use commercially reasonable efforts in performing the Research to carry out its
Research obligations as specified in the Research Plan. Merus will conduct its activities under the Research Program in accordance with good scientific standards and practices and in compliance in all material respects with the requirements of
applicable laws and regulations and with applicable good research practices. In conformity with standard pharmaceutical and biotechnology industry practices and the terms and conditions of this Agreement, Merus will prepare and maintain, or
will cause to be prepared and maintained, complete and accurate laboratory notebooks and other written records, accounts, notes, reports and data with respect to activities conducted pursuant to the Research Plan for [***] ([***]) years after
expiration or termination of the Research Term and, upon Ono’s written request and at its expense, will send legible copies of the aforesaid to Ono. Notwithstanding anything to the contrary herein, Merus shall, at its sole cost, supply any
research reagents, similar materials and any standard laboratory equipment (and any replacements thereto) that it needs to carry out its duties under the Research Plan. 

4.2 Ono Research Commitment and Performance. During the Research Term, Ono will devote to the Research Program such number of FTEs of
Ono or its Affiliates or contract out a part of its work to any Third Party research organization as are necessary for Ono to fulfill its obligations under the Research Plan. Ono will be responsible for the payment of all costs and expenses for
such FTEs and other activities it undertakes in conducting its responsibilities under the Research Plan. Ono will conduct its activities under the Research Program in accordance with good scientific standards and practices and in compliance in
all material respects with the requirements of applicable laws and regulations and with applicable good laboratory practices. Ono will, directly or through its Affiliates, maintain laboratories, offices and all other facilities reasonably
necessary to carry out the activities to be performed by it pursuant to the Research Plan. In conformity with standard pharmaceutical and biotechnology industry practices and the terms and conditions of this Agreement, Ono will prepare and
maintain, or will cause to be prepared and maintained, complete and accurate laboratory notebooks and other written records, accounts, notes, reports and data with respect to activities conducted pursuant to the Research Plan for [***] ([***]) years
after expiration or termination of the Research Term. 
 4.3 Research Reports. Each Party will keep the other reasonably informed as
to the progress achieved and results, discoveries and technical developments made in the course of performing activities under the Research Program pertaining to any Target Specific Biclonics. Each Party will prepare, and distribute to all
members of the JSC, no later than [***] ([***]) Business Days prior to the next scheduled JSC meeting, a reasonably detailed written summary regarding the Party’s results and 

  
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 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
progress of performance in the Research Program during the period following the last such report (if any). In the event of early termination hereof, Merus shall submit a final report covering all
the work performed by Merus under the Research Program up to such termination within [***] ([***]) days after the effective date of such termination. 

4.4 Subcontracts. Either Party may perform appropriate Research under the Research Plan pursuant to this Agreement through
one or more Third Party subcontractors approved by the JSC, provided that such Party engages each Third Party subcontractor through a written agreement consistent with the terms and conditions of this Agreement, and further provides that (a) no
rights or obligations of either Party under this Agreement are diminished or otherwise adversely affected as a result of such subcontracting, (b) the subcontractor undertakes the obligations of confidentiality and non-use regarding Confidential
Information which are substantially the same as those undertaken by the Parties pursuant to Article 9 hereof, and (c) the subcontractor agrees that any intellectual property developed in the course of the work hereunder shall be assigned
to the Party engaging the subcontractor or such Party’s designee, so as to permit re-assignment as required by the terms and conditions of this Agreement. The Party engaging any such Third Party subcontractor shall be responsible for all
compensation due to the Third Party subcontractor (or its employees or agents) arising from such subcontracting. 
 4.5 Technology
Transfer. Commencing promptly after the Effective Date and from time to time thereafter during the Research Term and as indicated in the Research Plan, Merus shall transfer to Ono the identified Target Specific Biclonics, necessary Research
Tools and related Know-How Controlled by Merus as the JSC reasonably determines to be necessary or useful for Ono to perform its Research under the Research Program and to exercise the licenses granted to Ono under Article 5
hereof. Commencing promptly after the Effective Date and from time to time thereafter during the Research Term, Ono will use its commercially reasonable efforts to disclose to Merus such materials and related Know-How Controlled by Ono as the
JSC reasonably determines to be necessary or useful for Merus to perform its Research under the Research Program and to otherwise exercise the licenses granted to Merus under Article 5 hereof. During the Term, Merus will provide Ono with
reasonable technical assistance (in an amount to be set forth in the Research Plan) relating to (i) the use of such Target Specific Biclonics and Research Tools, (ii) manufacturing of Licensed Biclonics, and (iii) related Know-How
with respect to subsections (i) and (ii) in this Section 4.5, in each case of subsection (i), (ii) and (iii), transferred and/or disclosed by Merus to Ono solely to the extent permitted under the license rights granted to Ono
under Article 5. During the Term, Ono will provide Merus with reasonable technical assistance (in an amount to be set forth in the Research Plan) relating to the use of the materials and related Know-How disclosed by Ono to Merus solely to
the extent permitted to perform the Research Program. 
 4.6 Conditions for Technology Transfer. All supplied Target
Specific Biclonics, Research Tools and related Know-How will be used in confidence by the other Party only for purposes of the Research or otherwise as permitted under the applicable license rights granted under Article 5, and subject to all
the other restrictions and obligations under this Agreement. Except as otherwise provided under this Agreement, all such materials and related Know-How delivered to the other Party will remain the sole property of the supplying Party, will be
used only for purposes of the Research Program or as otherwise permitted by this Agreement, will not be used or delivered to or for the benefit of any Third Party except as otherwise permitted under this Agreement without the prior written consent
of the supplying Party, and will be used in 

  
 11 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
compliance with all applicable laws, rules and regulations. The materials and related Know How supplied under this Agreement shall be used by the receiving Party at its own risk and with
prudence and appropriate caution in any experimental work because not all of their characteristics may be known. Except as expressly set forth herein, THE MATERIALS AND RELATED KNOW HOW ARE PROVIDED “AS IS” AND WITHOUT ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT ANY WARRANTY THAT THE USE OF THE
MATERIALS WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY. 
 4.7 Regulatory Affairs
Responsibility. Ono (directly or through its Affiliates or Third Party subcontractors) shall be solely responsible for conducting all its activities contemplated by the Research Plan to be performed for Successful Biclonics, including
Preclinical Proof of Mechanism Product. Thereafter, Ono shall have the sole responsibility, for each Product, to file all clinical research exemptions for any clinical trials and all INDs related thereto. 

4.8 Ongoing Disclosure Regarding Development. Ono (directly or through its Affiliates or Third Party subcontractors) shall
solely control and be responsible for selection of Licensed Biclonics from Successful Biclonics and conducting all further non-clinical and clinical development activities for Licensed Biclonics and Products, including manufacture of sufficient
amounts of all research, non-clinical and clinical supplies of Licensed Biclonics and Product for non-clinical studies and clinical trials to be performed by Ono, as well as relating to process development (including scale-up) for (pre-)clinical
and/or commercial manufacture of Licensed Biclonics and Product. 
 Ono will keep Merus informed about Ono’s development of the
Licensed Biclonics and Product, including the results from such development progress towards meeting goals and milestones during the development of the Licensed Biclonics and Product, significant findings and developments, any delays and any
proposed changes in its plans. Such disclosures will be made in a written report provided to Merus at least annually, or more often at Ono’s election, the contents of which shall be treated as Ono’s Confidential Information. 

4.9 Exclusive Commercialization Rights. Subject to the terms and conditions of this Agreement, Ono will control and have
exclusive rights over the worldwide commercialization of all approved Products, including the worldwide supply of Products for use in all such commercialization activities. Ono will be solely responsible for all costs and expenses in the
commercialization of Products. 
 5. LICENSES AND OBLIGATIONS 

5.1 License Grants. The grants of rights provided in this Section 5.1 are subject to the terms and conditions of this
Agreement. 
 (a) License to Ono. Merus hereby grants to Ono an exclusive (even as to Merus but subject to subsection (b) below
of this Section 5.1) royalty-bearing license, with the right to sublicense, under the Merus IP to (i) research, test, and/or study Target Specific Biclonics and Lead Biclonics, and (ii) use, have used, make, have made, market, have
marketed offer to sell, have offered to sell, sell, have sold, export and/or import Licensed Biclonics and/or Products in the Field of Use in the Territory. 

  
 12 

 (b) Merus Retained Rights. Merus retains all rights to use and commercialize any Human
Antibodies that are generated under the Research Program but which are not Human Antibodies of Lead Biclonics, and provided that such retained use or commercialization is not with respect to the Target Combination. 

(c) For the avoidance of doubt, Third Parties to whom Merus has or will grant a license under Merus IP, have been or will be granted
rights to research, develop and commercialize bispecific Antibodies generated using Merus Technology against either [***] or [***] or the Target Combination, provided that, for as long as the exclusivity of the collaboration between the Parties
exists as specified in Section 2.2, neither Merus nor its Affiliates shall conduct, alone or in collaboration with any such Third Party licensees, directly or indirectly, any research or development of such bispecific Antibodies generated using
Merus Technology against the Target Combination, and shall neither sell, supply, provide nor transfer directly or indirectly, any Target Specific Biclonics to any Third Party. 

(d) Sublicenses. Ono shall have the right to grant sublicenses under the licenses granted under Section 5.1(a), and Ono shall
notify Merus of each grant of a sublicense right to any Third Party within the rights granted in Section 5.1(a), and each such Sublicensee shall be identified in a notice to Merus, which Merus shall treat as Ono’s Confidential Information.
Notwithstanding any such sublicensing, Ono shall remain liable to Merus for the performance of its Sublicensees hereunder, and Ono shall use reasonable measures to ensure that its Sublicensees comply with the applicable terms and conditions of this
Agreement. 
 (e) License to Merus. Ono hereby grants to Merus a perpetual, royalty-free, non-exclusive worldwide license, with the
right to sublicense, 
  

	 	(i)	under the Ono IP to conduct the Research under the Research Program as contemplated in this Agreement, and 

  

	 	(ii)	under Ono IP other than those Controlled by Ono on the Effective Date, to research, develop, use, make, have made, offer to sell, have offered to sell, sell, have sold, export and/or import any products containing
monospecific or bispecific Antibodies, but not any products containing bispecific Antibodies against the Target Combination, alone or in collaboration with any Third Parties, subject to the provisions of Section 2.2. 

Merus shall be permitted to sublicense the license granted under this Section 5.1(e)(ii) only to such other licensees of Merus Patent
Rights for bispecific Antibodies generated using Merus Technology (“Merus Licensees”) that are contractually obligated to license to Merus (with the right to sublicense to other Merus Licensees) rights under such other Merus
Licensees’ Patent Rights and Know How rights in improvements to the Merus IP developed by or on behalf of such other Merus Licensees. 

5.2 No Implied Licenses. Except as for expressly provided for herein, no other right or license under any Patent Rights or
Know How Controlled by a Party is granted to the other Party.

  
 13 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 5.3 Senyoh Jisshiken Tohroku. Upon Ono’s request, Merus agrees that Ono
shall be entitled to register, at Ono’s sole expense, Ono’s exclusive license to the extent granted pursuant to Section 5.1(a) with respect to Merus IP in Japan (“Senyoh Jisshiken Tohroku”) in accordance with the patent law
of Japan, and, at Ono’s request, Merus shall render reasonable assistance for such registration by Ono, including providing Ono with any documents duly signed by an authorized personnel of Merus in the English language reasonably necessary for
such registration; provided, however, that Ono shall promptly cancel such registration of Senyoh Jisshiken Tohroku in the event of termination of this Agreement pursuant to Section 11 hereof. 

5.4 Exclusive option. For a term starting on the Effective Date until the earlier of [***] ([***]) months after the Effective Date or
[***] ([***]) months after the [***], Merus hereby grants to Ono an exclusive option to enter into an exclusive license agreement to develop and commercialize bispecific Antibodies that bind to the [***] and [***] target combination. For clarity the
grant of the exclusive option set forth in this Section 5.4 shall not prevent Merus from performing any research on the [***] and [***] target combination alone. Promptly after Ono’s written exercise notice, the Parties shall engage in
good-faith negotiations so as to, within [***] ([***]) months, conclude an exclusive license agreement, which shall grant Ono an exclusive license, with the right to sublicense, under the applicable Merus IP Controlled by Merus, to make, have made,
use, have used, make, have made, market, have marketed, offer to sell, have offered to sell, sell, have sold, export and/or import pharmaceutical products containing a Bioclonics Antibodies that bind to the [***] and [***] target combination in
final form suitable for human use. Such agreement will include financial terms and conditions as set forth herein mutatis mutandis, except that the upfront fee will be €[***]. 

6. FEES AND PAYMENTS 

6.1 Upfront Fee. Ono will pay to Merus a non-refundable, non-creditable upfront fee of €1,000,000 (one million euros),
exclusive of VAT, which shall be due upon execution of this Agreement and payable within [***] ([***]) days after Ono’s receipt of the relevant invoice. Notwithstanding the non-refundable condition of the upfront fee set forth in this
Section 6.1, if [***], and [***], Merus shall [***] within [***] ([***]) days after its receipt of such [***]. 
 6.2 Research
Funding.
 6.2.1 Funded Merus FTEs. Except as expressly provided herein, each Party shall be responsible for its costs and
expenses incurred in performing its Research in the Research Program. Ono will agree to fund [***] of the Research Term. Any further Merus FTEs above the specified number of FTEs to be funded by Ono during the Research Term shall be specified in a
written amendment executed by duly authorized representatives of the Parties setting forth in the Research Plan the specific number of Merus FTEs to be so funded. Merus shall be reimbursed for the funded FTEs actually contributed pursuant to the
Research Plan (up to the maximum specified therein) at the rate of €[***] per FTE per year. Such rate shall include all personnel, equipment, consumables, materials reagents and all other expenses including support staff and overhead for or
associated with an FTE, and in no event shall Ono be obligated to make any other funding to support the Research to be performed by Merus except as 

  
 14 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
expressly set forth in this Agreement Exhibit A unless otherwise agreed in writing and signed by duly authorized representatives of both Parties. In the event that Merus contributes any
additional FTEs to Research other than those agreed upon to be funded by Ono as specified in the Research Plan, Merus shall be solely responsible for the costs of such additional FTEs. On a quarterly basis during the Research Term, Ono shall
reimburse Merus in arrears for the funded Merus FTEs actually expended in Research pursuant to the Research Plan. 
 6.2.2 FTE Payment
Terms. The payments for the funded FTEs under Section 6.2.1 shall be paid by Ono in arrears upon receipt of a proper invoice from Merus on a quarterly basis based on Merus’ actual work performed by qualified FTEs. Ono shall pay Merus
such amount within [***] ([***]) days of Ono’s receipt of the invoice. 
 6.2.3 General Payment Terms. Any payment for an amount
due under this Section 6.2 or Section 6.3 below shall be payable within [***] ([***]) days after Ono’s receipt of an invoice from Merus for such amount, which invoice shall specifically refer to this Agreement and contain the
information describing such payment as specified in sample invoice set forth at Exhibit F. All payments shall be made by wire to such bank account as Merus may designate in writing to Ono. Any payments due and payable under this Agreement on a date
that is not a Business Day may be made on the next Business Day. 
 6.3 Milestone Payments. 

(a) Subject to the terms and conditions provided in subsections (b) and (c) below and in consideration for the license granted and the
ownership rights that are assigned hereunder (provided that any Ono IP is generated by Merus), the following amounts shall be due, each one time only upon the first attainment of the specified event by the first Product regardless of subsequent or
repeated achievement of such milestone except as specified in Section 6.3(d), from Ono to Merus upon the first occurrence of the specified milestone event listed below with respect to the Licensed Biclonics or Product (whether such milestone
event is achieved by Ono directly or through its Affiliates or any Third Party Sublicensees). Milestone payments shall be made by Ono within [***] ([***]) days of receipt of the corresponding invoice issued by Merus, which invoice may be issued upon
the same date as achieving the milestone. In the event any Target Specific Biclonics delivered to Ono later than [***] ([***]) months from the Effective Date fulfills RME1 for the first time, the amount of RME1 payment set forth in the table below
will be reduced by [***] percent ([***]%) and if any Target Specific Biclonics delivered to Ono later than [***] ([***]) months from the Effective Date fulfills RME1 for the first time, the amount of RME1 payment set forth in the table below will be
reduced by [***] percent ([***]%). 
  

			
	 Research Milestone Events
	 	 EURO

	 RME1: [***]
	 	€ [***]
	 RME2: [***]
	 	€ [***]
	 RME3: [***]
	 	€ [***]
	 RME4: [***]
	 	€ [***]

  
 15 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

			
	 Clinical Development Milestone Events
	 	
	 [***]
	 	€ [***]
	 [***]
	 	€ [***]
	 [***]
	 	€ [***]
	 [***]
	 	 € [***]

[***]% of the Ono Proceeds]

	 [***]
	 	 € [***]

[***]% of the Ono Proceeds]

	 [***]
	 	 € [***]

[***]% of the Ono Proceeds]

	 [***]
	 	€ [***]

 (b) The Clinical Development Milestones are minimum payments. If Ono grants a sublicense to a Sublicensee under the
Merus IP to use, have used, make, have made, market, have marketed, offer to sell, have offered to sell, sell, have sold and import Products in the Field of Use in any country other than Japan, Ono shall pay Merus the larger of either [***] or
[***]% of the Ono Proceeds. The [***]% Ono Proceeds shall be applied pro-rata to the Phase III Clinical Trial and Regulatory Approval milestones for the United States of America and Europe indicated above. Each of the development and approval
milestone payments set forth above will be due one time only upon the first attainment of the specified event by the first Product regardless of subsequent or repeated achievement of such milestone except as specified in Section 6.3(d). 

(c) If the development of a Product is being abandoned after any of the milestone payments under Section 6.3(a) has been made (such Product,
the “Discontinued Product”), and Ono (or its Affiliate or Sublicensee) then commences and conducts development of a replacement Product for the Discontinued Product, then only those milestone payments under this Section 6.3
that were not previously made with respect to such Discontinued Product will be payable with respect to achievement by the replacement Product of any further milestone events as provided above.

(d) Notwithstanding anything to the contrary contained in Section 6.3(a), in the event [***], Ono shall pay [***]% amount of the Clinical
Development Milestones of those specified in the table of Section 6.3(a) above for [***]. In the event [***], Ono shall pay [***]% amount of the Clinical Development Milestones of those specified in the table of Section 6.3(a) above for
[***]. For clarity, Ono will not be obliged to pay any milestone payments for [***]. 
 6.4 Royalties.

6.4.1 Royalty Rate. In consideration for the license granted and the ownership rights that are assigned hereunder (provided that any Ono
IP is generated by Merus), on a Product-by-Product basis and country-by-country basis, Ono will pay 

  
 16 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
Merus a royalty of [***] % based on the aggregate Net Sales of any Product sold in such country by Ono (directly or through its Affiliates, distributors, or Sublicensees) for each calendar
quarter (or portion thereof) during the Royalty Term. For clarity, a royalty rate of [***]% set forth in this Section 6.4.1 shall apply to Net Sales of the second and further Products. These royalties will be paid in each country where at least
one Valid Claim of the licensed Merus Patent Rights Covers the Product or its use. Royalties due shall be calculated by multiplying the applicable total(s) of Net Sales of each Product sold in such countries against the applicable royalty rate of
[***]%, such amounts converted from local currency to Euros where necessary and as detailed below in article 7.3. 
 6.4.2 Royalty
Term for Products. As to sales of a particular Product in a country, the royalty payments specified in Section 6.4 will be due on all Net Sales of the Product in such country occurring during the Royalty Term. After the Royalty Term
expires with respect to a particular Product in a given country, Ono’s license rights with respect to such Product will be fully paid-up and perpetual and continue on a royalty-free basis. 

6.4.3 No Royalty Reductions. Parties hereby agree that there will be no royalty reductions under any circumstance, including but not
limited to the event in which Ono would have to grant compulsory licenses or obtain additional licenses under third party intellectual property rights related to the sale of Products. 

7. PAYMENT; RECORDS; AUDITS 

7.1 Research Program Payments. In consideration for Merus’ performance of its obligations under the Research Program, and
subject to the terms contained in this Agreement, Ono shall provide the FTE funding as provided for in Section 6.2. 

7.2 Royalty Payments; Reports. Within [***] ([***]) days after the end of each calendar quarter for which royalties are due
by Ono to Merus, Ono shall pay Merus all such amounts payable by it under Section 6.4 by wire transfer on a country by country basis. Each such payment shall be accompanied with a report, providing in reasonable detail an accounting of all Net
Sales made during such calendar quarter and the calculation of any royalties due under Section 6.4.
 7.3 Exchange
Rate. If any currency conversion shall be required in connection with the calculation of royalties hereunder, such conversion shall be made using the following procedures. Sales recorded during each calendar quarter will be translated to
Euro values at the rate on the last working day of that calendar quarter based on the exchange rates published on the European Central Bank website. Any changes to procedures for currency conversion shall only apply after such notice has been
delivered and provided that such changes are consistently applied across Ono’s operating units and continue to maintain a set methodology for currency conversion. 

7.4 Tax Matters. 

(a) Ono Payments to Merus Without Withholding. Ono will make all payments to Merus under this Agreement without deduction or
withholding for taxes except to the extent that any such deduction or withholding is required by law in effect at the time of payment. 

  
 17 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 (b) Ono Payment of Tax. Any tax required to be withheld on amounts payable to Merus
under this Agreement will promptly be paid by Ono on behalf of Merus to the appropriate governmental authority, and Ono will furnish Merus with proof of payment of such tax. Any such tax required to be withheld will be an expense of and borne
by Merus.
 (c) Cooperation Between Ono and Merus. Ono and Merus will cooperate with respect to all documentation required
by any government taxing authority or reasonably requested by Ono to secure a reduction in the rate of applicable withholding taxes to the maximum extent permitted by law. The documentation referred in this Section 7.4(c) as of the Effective
Date includes Form 3 and Form 17 (application form for the relief from Japanese Income Tax on Royalties) and Certificate of Residence of Merus issued and signed by the tax authority in the Netherlands, or thereafter any other document that may be
required for the similar purpose from time to time during the Term. Notwithstanding the provisions of Section 6.2.3 Merus agrees that Ono’s payments of upfront fee, research and development milestones and royalties payments respectively
set forth in Section 6.1, 6.3 and 6.4 will not be made until all the procedures required for such withholdings or its reduction is accepted by the authority, or Ono will pay to Merus the amount due in accordance with this Agreement deducting
the applicable withholding tax if Merus so requests. In such case Ono will pay the applicable withholding tax to the Japanese tax authority, and provide Merus with the relevant tax proof. 

7.5 Audits. 

(a) Each Party shall keep, and cause its Affiliates and Third Party subcontractors or Sublicensees to keep, complete and accurate
records for [***] ([***]) years which are relevant to the determination of any payment to be made by such Party under this Agreement, including without limitation, FTE records, records on Net Sales and royalty calculations, and records relating to
the milestone events covered in Section 6.3. At the request and expense of a Party, the other Party and its applicable Affiliates and its Third Party subcontractors or Sublicensees shall permit an independent certified public accountant
appointed by such requesting Party and reasonably acceptable to the other Party, at reasonable times and upon [***] ([***]) days prior notice, to examine in confidence such records as may be necessary to determine, with respect to any records
pertaining to any financial report or payment due in any quarter ending not more than [***] months prior to such Party’s request, to verify the correctness or completeness of any such report or payment made under this Agreement. 

(b) The foregoing right of examination may be exercised only once per [***]-month period during the Term and only [***] with
respect to any such financial report or payment due hereunder. Results of any such examination shall be limited to information relating to the applicable reporting and payment obligations, and made available to the audited Party. The accountant
shall disclose to the auditing Party only whether the applicable reports and payments were correct or incorrect and the amount of any discrepancy between an amount due and an amount paid. The Party requesting the audit shall bear the expenses
of such independent certified public accountant related to the performance of any such audit, unless such audit discloses such a discrepancy to the detriment of the auditing Party of more than [***] percent ([***]%) from the amount of the original
payment made; in such case, the Party being audited shall bear the such expenses for the performance of such audit. 

  
 18 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 (c) If such audit reveals that the audited Party, its Affiliate or Third Party
subcontractor or Sublicensee has failed to accurately report information causing a discrepancy resulting in the underpayment of any amounts owed, the audited Party shall promptly pay any amounts due to the auditing Party together with interest on
such amount, calculated from the date originally owed at the interest rate set forth in Section 7.6. In the event of a discrepancy resulting in an overpayment, any amount of such overpayment shall be fully credited against amounts payable
by the audited Party in subsequent periods or reimbursed to the audited Party. 
 7.6 Late Payments. In the event that any
payment due under this Agreement is not made when due, the payment will accrue interest from the date due until paid, calculated on a daily basis, based on the total number of days payment is delinquent at a rate per annum equal to the [***] ([***])
month USD LIBOR rate quoted [***] Business Days prior to the due date by the British Bankers’ Association plus a premium of [***] percent ([***]%), provided, however, that in no event will such rate exceed the maximum legally permissible
annual interest rate. The payment of such interest will not limit either Party from exercising any other rights it may have as a consequence of the lateness of any payment. 

8. INTELLECTUAL PROPERTY 
 8.1
Ownership. 
 8.1.1. Ono’s Ownership. Ono IP is and will remain the sole property of Ono and all rights to any Ono IP
generated under this Agreement solely vests in Ono, subject to the license grants of Section 5.1. If the perfection and documentation of the assignment of ownership set forth in Section 8.1.4 as contemplated in Section 8.1.2 is not
technically practical or feasible in Prosecution, then such Patent Rights nevertheless remain the sole property of Ono subject to the license granted set forth in Section 5.1(e). 

8.1.2. Merus’ Ownership. Merus IP is and will remain the sole property of Merus and all rights to any Merus IP generated
under this Agreement solely vests in Merus. If assignment of ownership set forth in Section 8.1.4 as contemplated in Section 8.1.1 is not technically practical or feasible in Prosecution, then such Patent Rights nevertheless remain the
sole property of Merus subject to the license granted set forth in Section 5.1(a), (c) and (d). 
 8.1.3. Negative Covenant.
Except as expressly provided hereunder, Merus (a) shall not acquire, or attempt to acquire, pursuant to this Agreement any right, title or interest to any Lead Biclonics and any Patent Rights solely owned by Ono pursuant to
Section 8.1.1 (b) shall not (and shall not attempt to purport to attempt to) transfer, assign, sell, have sold, lease, offer to sell or lease, distribute, license, sublicense or otherwise transfer title in, commercialize or exploit any
Lead Biclonics and Patent Rights solely owned by Ono pursuant to Section 8.1.1, and (c) shall not, directly or indirectly, file, Prosecute, or maintain, in any country, any Patent Rights applicable to such Lead Biclonics and Patent Rights
solely owned by Ono pursuant to Section 8.1.1. 

  
 19 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 8.1.4. Assignment of Ownership; Assistance. Either Party hereby assigns and transfers to
the other Party all right, title and interest including ownership rights to and in all inventions falling into the scope of the other Party’s ownership rights as set forth in Section 8.1.1 or 8.1.2 hereof. Each Party undertakes that it
shall do or procure to be done all such acts and things, and execute, or procure the execution of, all such documents, as the other Party may from time to time reasonably require to give it the full benefit of any assignment contemplated in Article
8, and shall cause its employees to have any documents or instruments required by laws or regulations duly executed by signing in order to effect such assignment and transfer. In no event shall either Party be liable for compensation for inventions
conceived, developed or reduced to practice by the other Party’ employee(s) regardless of which Party has ownership rights to such invention. 

8.2 Patent Prosecution. 

(a) General Principle. The Parties will discuss in good faith and mutually agree on the best strategy for the Prosecution of Patent
Rights for Lead Biclonics and its use, provided, that, in any event, [***] shall have the final right to Prosecute and to decide the scope of claims on patent applications, in which countries and when patent claims shall be filed, and whether patent
claims shall be filed within one or several patents or patent applications. 
 (b) Prosecution. Unless otherwise agreed between the
Parties, [***] shall, at its sole expense, control the Prosecution of all Patent Rights relating to Lead Biclonics, but that for clarity excludes Merus Patent Rights. Upon reasonable request of [***] shall, at [***] expense, reasonably cooperate
with [***] in relation to such Prosecution. In particular in case of any interference, opposition, reexamination request, nullity proceeding, appeal or other interparty action, [***] shall review it with [***] as reasonably requested, and make
employees of [***] available in any course of such interference, opposition, reexamination request, nullity proceeding, appeal or other interparty action for testimony, deposition or hearing, and [***] shall [***] in connection with such cooperation
including [***] of its own employees. 
 (c) Cooperation. [***] agrees to cooperate with [***], and perform such lawful acts, and
execute such documents in order to reasonably assist [***] with respect to the Prosecution of Patent Rights pursuant to Section 8.2. 

8.3 Infringement of Third Party Patent Rights. 

(a) If either Party after the Effective Date is warned or sued by a Third Party alleging or charging infringement of any patents or
published patent applications of a Third Party arising out of or resulting from the use of the Merus Technology, the Party, which is warned or sued, shall notify promptly the other Party. 

(b) Merus shall be responsible, at its expense, for settling and/or defending such warning or litigation for patent infringement in
which the alleged infringing process or product giving rise to liability for damages involves [***]. In so far as any such settlement or defense effects is likely to have an effect on Ono activities, Merus shall promptly inform Ono and Merus and Ono
shall confer as to any modification of any right granted to Ono hereunder. Upon Merus’ written request, Ono agrees to reasonably assist Merus in any such defense, if such infringement action might have an effect on Ono activities. 

  
 20 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 (c) Ono shall be responsible, [***], for settling and/or defending such warning or
litigation for patent infringement in which the alleged infringing process or product giving rise to liability for damages involves [***]. If Merus should suffer any [***] and [***] as a result of such dispute, including [***], [***] any such [***].

 9. REPRESENTATIONS, WARRANTIES, AND COVENANTS 

9.1 Mutual Representations and Warranties. Each Party represents and warrants to the other that: (a) it is duly organized
and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof; (b) it is duly authorized to execute
and deliver this Agreement and to perform its obligations hereunder, and each person executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate or partnership action; and (c) this Agreement is legally
binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a Party or by which it may be bound, nor violate any applicable law or regulation of
any court, governmental body or administrative or other agency having jurisdiction over it. 
 9.2 Merus IP
Warranties. Merus represents and warrants to Ono as of the Effective Date that: 
 (a) to Merus’ knowledge, Merus
Patent Rights listed in Exhibit C are accurate and complete and identifies all Patent Rights Controlled by Merus or any of its Affiliates as of the Effective Date that include any claim Covering or otherwise directly relating to the Merus
Technology; and 
 (b) Merus has not granted any Third Party any right, license or interest in or under, nor assigned,
transferred, conveyed or encumbered any right, title and interest in and to, any of the Merus Patent Rights, or any of Merus Know-How disclosed therein, that is in conflict with the rights and licenses granted to Ono under this Agreement. 

(c) to Merus’ knowledge, Merus IP are free and clear of any liens, charges and encumbrances, and no other person, corporate or
other private entity, or governmental entity or subdivision thereof, has or shall have any claim of ownership whatsoever with respect to Merus IP. 

(d) Except for the individual cases as more specifically described in Exhibit D, Merus has not received notice from, or been prosecuted
through a legal action by, any Third Party claiming that the use or exploitation of Background IP infringes any Third Party’s Patent Rights and Know-How. 

(e) no consent by any Third Party or governmental entity is required with respect to the execution and delivery of this Agreement by
Merus or the consummation by Merus of the transactions contemplated hereby. 
 (f) Except for the individual cases as more
specifically described in Exhibit D, to Merus’ knowledge, there is no unauthorized use, infringement or misappropriation of any of Background IP by any employee or former employee of Merus, or any other Third Party. 

  
 21 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 (g) Any and all fact based statement(s) contained in Exhibit D is/are true. 

(g) Merus Patent Rights listed on Exhibit C hereto constitute all of Merus’ Patent Rights that are, to Merus’
knowledge, necessary for the performance of the Research Program by Merus and/or Ono as contemplated herein. 
 (h) to Merus’
knowledge, all inventors identified in Merus Patent Rights, or all employees or sub-contractors of Merus have agreed to assign or license to Merus their entire rights, title and interest to and in any Intellectual Property that may be made,
discovered or developed by them as a result of performance of their activities contemplated herein. 

9.3 Disclaimer. Except as expressly set forth herein, THE KNOW-HOW, MATERIALS AND INTELLECTUAL PROPERTY RIGHTS PROVIDED BY
EACH PARTY HEREUNDER ARE PROVIDED “AS IS”. WITH RESPECT TO SUCH KNOW-HOW AND MATERIALS SUPPLIED HEREUNDER, EACH SUPPLYING PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE
WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. Without limiting the generality of the foregoing, each Party expressly does not warrant, and
disclaims any warranties with regards to: (a) the success of any study or test commenced under the Research Program, (b) the safety or usefulness for any purpose of the materials it provides or discovers under this Agreement; and/or
(c) the validity or enforceability of any intellectual property rights existing as of the Effective Date licensed to the other Party under this Agreement. 

9.4 Limitation of Liability. EXCEPT FOR LIABILITY FOR BREACH OF ARTICLE 9, NEITHER PARTY WILL BE ENTITLED TO RECOVER
FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER; provided, however, that this Section 9.4 will not be construed to limit either
Party’s indemnification obligations under Article 12. 
 9.5 Covenants of the Parties 

(a) Throughout the Term, Merus and Ono will comply (and will cause their respective Affiliates and Sublicensees to comply) in all
material respects with all applicable laws and regulations concerning any of their activities hereunder, including with respect to performing Research and to the research, manufacture, use and sale of Products. 

(b) Each of the Parties will, at the reasonable request of the other Party, use reasonable efforts to execute and deliver any
further or additional instruments or documents, and to perform any other acts, as are necessary in order to effectuate and carry out the terms of this Agreement, but provided that the foregoing shall not be interpreted to require such Party
to incur any additional expenses or grant any other rights to the other Party, other than rights expressly granted elsewhere in the Agreement. 

  
 22 

 10. CONFIDENTIALITY 

10.1 Confidential Information. Except to the extent expressly authorized by this Agreement or agreed in writing by the
Parties, each Party agrees that, during the Term and for [***] ([***]) years thereafter, the receiving Party and its Affiliates and Sublicensees and Third Party subcontractors will keep confidential and will not publish or otherwise disclose, and
will not use for any purpose other than as expressly permitted in this Agreement, any information furnished to it or its Affiliates, Sublicensees or Third Party subcontractors by the other Party pursuant to this Agreement or information acquired or
developed on such other Party’s behalf (collectively, “Confidential Information”). For the avoidance of doubt, as long as Ono retains license rights to any Lead Biclonics and/or Products hereunder, data and other
information relating thereto shall be considered Ono’s Confidential Information. Each Party may use such Confidential Information of the other Party only to the extent required to accomplish the purposes of this Agreement or exercise its rights
under the licenses granted to it under this Agreement. Each Party will use at least the same standard of care as it uses to protect proprietary or confidential information of its own, but in no event less than stringent as set forth in this
Article 10. Each Party shall use reasonable efforts to ensure that its and its Affiliates’ and Sublicensees’ and Third Party subcontractors’ employees, agents, consultants, investors and other representatives comply with the
Party’s obligations hereunder and do not disclose or make any unauthorized use of the Confidential Information, and that the terms of any subcontracts will be in all essential aspects consistent with the obligations and restrictions hereunder,
including by providing a confidentiality term that is of equivalent duration or no less than what is reasonable to protect the Confidential Information to be disclosed or developed in the subcontractual arrangement. Each Party will promptly
notify the other upon discovery of any unauthorized use or disclosure of the other Party’s Confidential Information. The Parties further acknowledge that each Party has disclosed to the other Party (or its Affiliates), prior to the
Effective Date, certain Confidential Information pursuant to non-disclosure and/or material transfer agreements entered into between the Parties (or a Party’s Affiliates), that limit the disclosure and use of such information by the receiving
Party. The Parties hereby agree that any such Confidential Information earlier disclosed by one Party to the other (or its Affiliates) under such earlier agreements will be deemed to be the Confidential Information of the disclosing Party and
subject to all the terms of this Article 10 and Section 4.6, as well as the additional terms covering such information and materials (if any) under the earlier agreements. 

10.2 Exceptions. The obligations of non-disclosure and non-use under Section 10.1 will not apply as to particular
Confidential Information of a disclosing Party to the extent that the receiving Party can prove by competent written evidence that such Confidential Information: (a) is at the time of receipt, or thereafter has become, through no act or failure
to act on the part of the receiving Party (or its Affiliates or Sublicensees or Third Party subcontractors), published, generally known or otherwise available in the public domain; (b) is known by the receiving Party at the time of receiving
such information, as evidenced by its records; (c) is hereafter furnished to the receiving Party by a Third Party, as a matter of right and without restriction on disclosure; (d) is independently discovered or developed by the receiving
Party without reference to Confidential Information belonging to the disclosing Party; or (e) is the subject of a written permission to disclose provided by the disclosing Party. 

  
 23 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 10.3 Authorized Disclosure. Each Party may disclose Confidential Information
belonging to the other Party solely to the extent such disclosure is reasonably necessary in connection with the following: 

(a) Prosecuting Patent Rights as permitted by this Agreement; 

(b) in connection with regulatory filings for Licensed Biclonics and/or Products that such Party has a license or right to develop
hereunder; 
 (c) prosecuting or defending litigation as permitted by this Agreement; 

(d) complying with applicable court orders or governmental regulations; 

(e) disclosure to Affiliates, Sublicensees, Third Party subcontractors, clinical or non-clinical institutions, and consultants
(including their potential entities) on a need to know basis and only for purposes of performance of such Party’s obligations under this Agreement, and provided, in each case, that any such Affiliate, Sublicensee, or Third Party subcontractor,
clinical or non-clinical institutions, and consultants (including their potential entities) agrees to be bound by similar terms of written confidentiality and non-use at least equivalent in scope to those set forth in this Article 10; or 

(f) disclosure to existing or potential Third Party investors, merger partners, acquirers, and professional advisors (including
lawyers, accountants, and investment bankers) solely as reasonably necessary in the context of a potential transaction to which the Confidential Information is material, provided, that any such Third Party agrees to be bound by similar terms of
confidentiality and non-use at least equivalent in scope to those set forth in this Article 10. 
 Notwithstanding the foregoing, in the event a Party
is required to make a disclosure of the other Party’s Confidential Information pursuant to Section 10.3(d) or (f), it will, except where impracticable, give reasonable advance notice to the other Party of such planned disclosure and use
reasonable efforts to secure, or to assist the other Party in securing, confidential treatment of and/or a protective order regarding such information. In the case of authorized disclosure set forth in Section 10.3(a) through
(f) above such Party shall disclose only such Confidential Information of such other Party as is required to be disclosed. The receiving Party of Confidential Information shall take all steps reasonably necessary, including obtaining an order
of confidentiality or redacting financial terms of conditions of this Agreement, to ensure the continued confidential treatment of such Confidential Information. Each Party agrees that it shall cooperate fully with the other with respect to all
disclosures regarding this Agreement as required under the regulations of Securities and Exchange Commission in the US or similar regulatory agency in any other country including requests for confidential information or proprietary information of
either Party to be included in any such disclosure. Authorized disclosure of the Confidential Information pursuant to this Section 10.3 shall not be deemed exceptions pursuant to Section 10.2 unless and until publicly available. 

10.4 Publications. 

10.4.1 If either Party seeks to publish any information relating to any results of Research conducted under this Agreement or which
includes any Confidential 

  
 24 

 
Information of the other Party, including any information relating in any way to any Target Specific Biclonics or Product, the Party seeking to publish will provide the other Party the material
proposed for publication, such as by draft slide presentation, manuscript, poster, or abstract, at least [***] ([***]) days in advance of submitting the material to a publisher or an organizing committee or other equivalent organization of
scientific meeting, and the other Party will have the right to review and comment on all such material. The Parties will reasonably agree on the content of any such publication, except that Ono shall be free to publish the results of
and/or information concerning research and development of Lead Biclonics and/or Product subject to Section 10.4.2 below. 
 10.4.2
If Ono seeks to publish any of Merus’ Confidential Information relating to the results of its Research conducted under this Agreement in connection with a proposed publication concerning development of Lead Biclonics and/or Product, Ono
will deliver the draft material to Merus at least [***] ([***]) days prior to submitting the material to a publisher or an organizing committee or other equivalent organization of scientific meeting. Merus will review any such material and
give its comments to Ono as soon as practicable and will give written notice whether it authorizes the disclosure of its Confidential Information or requests deletion of Merus Confidential Information, but shall not unreasonably withhold such
authorization.
 10.5 Publicity. No disclosure of the existence, or the terms, of this Agreement may be made by either
Party, and neither Party shall use the name, trademark, trade name or logo of the other Party, its Affiliates or their respective employees in any publicity, promotion, news release or disclosure relating to this Agreement or its subject matter,
without the prior express written consent of the other Party, except as may be required by law. Without prior written consent, the name of a Party or any other of its Affiliates may not be used by the other Party for any advertising or promotional
purposes. Either Party may make subsequent public disclosure of the same contents as previously done pursuant to this Section 10.5. Each Party agrees not to issue any other press release or other public statement, whether oral or written,
disclosing the existence of this Agreement, the terms hereof or any information relating to this Agreement without the prior written consent of the other Party.

10.6 Public Announcement. No public announcement with respect to this Agreement or any activities under the Research Program shall
be made, whether directly or indirectly, by either Party without prior agreement of the other Party. A Party desiring to make public announcement shall provide the other Party with the proposed text of such announcement with sufficient time prior to
public release for the other Party’s review and comments, and such desiring Party shall use its reasonable efforts to incorporate the other Party’s comments. Both Parties shall discuss in good faith and agree on the timing, nature and text
of such announcement. Subject to Section 10.7 below, either Party may make public announcement repeatedly to the extent that once it has been made pursuant to this Section 10.6, without first obtaining the written approval of the other
Party. Either Party agrees that it may include the other Party’s name and short description of its business and the collaboration on a list of strategic partners in its corporate documents to be made publicly available, including the corporate
website, financial reports for its shareholders or such documents submitted to Securities and Exchange Commission in the US or similar regulatory agency in any other country. 

10.7 Combination of Features or Disclosures. Any combination of features or disclosures shall not be deemed to fall within the
foregoing exceptions 

  
 25 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
contemplated in Section 10.3 merely because individual features are published or available to the general public or in the rightful possession of the receiving Party unless the combination
itself and principle of operation are published or available to the public or in the rightful possession of the receiving Party. 

10.8 Return of Confidential Information. Upon termination of this Agreement, the receiving Party shall promptly return to the
disclosing Party or destroy the disclosing Party’s Confidential Information, including all copies thereof, except to the extent that retention of such Confidential Information is reasonably necessary for the receiving Party to exploit any
continuing rights it may have and/or to fulfil its obligations contemplated herein, including its obligations of non-disclosure and non-use hereunder. Any such destruction requested by the disclosing Party shall be certified in writing to the
disclosing Party by an authorized officer of the receiving Party. The return and/or destruction of such Confidential Information as provided above shall not relieve the receiving Party of its obligations under this Agreement. 

11. TERM AND TERMINATION 

11.1 Term of Agreement. The term of this Agreement (the “Term”) will commence on the Effective Date
and continue until expiration of the later of expiration or termination of all payment obligations of Ono accruing prior to the effective date of early termination under this Agreement or expiration of the Royalty Term for all Products licensed
hereunder, unless earlier terminated as provided below. 
 11.2 Termination for Cause. Each Party will have the right to
terminate this Agreement upon sixty (60) days’ prior written notice to the other Party upon the material breach by such other Party of any obligation under this Agreement, including a breach of any diligence obligations, provided that
such notice has given sufficient detail of the basis for the breach and the breaching Party has not cured such breach within the 60-day period following such written notice. The right of a Party to terminate this Agreement under this
Section, and the notice period for such termination, will be tolled during the period of any dispute resolution process (including arbitration) that is invoked under Article 13 to resolve the issue of whether the alleged breaching Party has in fact
committed a material breach of this Agreement, or whether such Party has cured such breach. 
 11.3 Termination by Ono Without Cause
During The Research Term. At any time during the Research Term, Ono may terminate this Agreement by providing Merus at least forty-five (45) days prior written notice. Ono agrees to pay Merus within forty-five (45) days of such
termination an amount equal to the research funding owed under Section 6.2 for a ninety (90) day period. The calculation of such amount will be made based on the annual FTE rate set forth in Section 6.2.1 above pro-rata to the
Business Days of Merus up to the end of such ninety (90) day period. 
 11.4 Termination by Ono Without Cause. At any
time after expiration of the Research Term, by providing Merus at least ninety (90) days prior written notice to Merus, Ono may terminate this Agreement in its entirety. 

11.5 Termination for Insolvency. Either Party may terminate this Agreement by written notice to the other with immediate
effect if the other Party becomes insolvent, is compelled to file bankruptcy, is determined otherwise imminently subject to control by a bankruptcy trustee, liquidator or administrator or the equivalent, or upon an assignment of a substantial
portion of the assets for the 

  
 26 

 
benefit of creditors by the other Party pursuant to the laws of the jurisdiction in which such Party is doing business; provided, however, that in the case of any involuntary bankruptcy
proceeding such right to terminate shall only become effective if the Party consents to the involuntary bankruptcy or such proceeding is not dismissed within ninety (90) days after the filing thereof. 

11.6 Effect of Termination; Surviving Obligations. 

11.6.1 Except in the case of termination by Ono for cause pursuant to Section 11.2, upon early termination of this Agreement,
all rights under the licenses granted by Merus to Ono under this Agreement, if then in effect, will automatically terminate and revert to Merus; in the case of termination by Ono for cause pursuant to Section 11.2, the provisions of this
Section 11.6.1 shall not apply and Ono’s license granted hereunder will be fully paid-up and perpetual and continue on a royalty-free basis; and 

11.6.2 Except in the case of termination by Ono for cause pursuant to Section 11.2, upon early termination of this Agreement
by either Party, at Merus’ written request, Ono and its Affiliates shall destroy all Research Tools and all supplies of Target Specific Biclonics, Licensed Biclonics and Product, and shall promptly thereafter confirm such destruction in writing
to Merus. 
 11.6.3 Expiration or termination of this Agreement will not relieve the Parties of any obligation accruing prior to
such expiration or termination. The following provisions of this Agreement will survive expiration or termination of this Agreement: Articles 1, 4.1, 4.2, 4.3, 5.1 (e)ii, 6.4.2, 7.5, 8.1, 9, 10, 11.6, 11.8, 12, 13, and 14 until expiration of a
period of performance of its obligations set forth in the relevant Section or, if such period is not expressly provided, completely performed of its obligations. 

11.6.4 Within [***] ([***]) days following the expiration or termination of this Agreement, except to the extent and for so long
as a Party retains license rights hereunder pertaining to any of the other Party’s Confidential Information or materials, at a Party’s request the other Party will deliver to the requesting Party any other Confidential Information and
materials of the requesting Party in its possession or at the requesting Party’s option, will destroy such Confidential Information and materials and will certify to the requesting Party in writing that it has so destroyed such Confidential
Information and materials. 
 11.7 Exercise of Right to Terminate. The use by either Party hereto of a termination right
provided for under this Agreement will not in and of itself give rise to the payment of damages or any other form of compensation or relief to the other Party with respect thereto. 

11.8 Damages; Relief. Subject to Sections 9.4 and 11.6 above, termination of this Agreement will not preclude either
Party from claiming or seeking or being entitled to any other damages, compensation or relief that it may be entitled to which accrued prior to such termination based on the Agreement. 

12. INDEMNIFICATION 

12.1 Indemnification by Merus. Merus hereby agrees to save, defend and hold harmless Ono and its Affiliates and their
respective directors, officers, employees 

  
 27 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
and agents (each, a “Ono Indemnitee”) from and against any and all claims, suits, actions, demands, liabilities, damages, expenses and/or loss, including reasonable legal expense
and attorneys’ fees (collectively, “Losses”), to which any Ono Indemnitee may become subject, to the extent such Losses result from any claim, demand, action or other proceeding against the Ono Indemnitee by any Third Party to
the extent based upon: (i) the [***], but provided that Merus is not obliged to enter litigation and defend Ono for [***] against Ono (ii) the [***], or (iii) the breach by Merus of any warranty, covenant or agreement made by Merus in
this Agreement; except, in each case, to the extent such Losses result from the negligence or willful misconduct of any Ono Indemnitee or the breach by Ono of any warranty, covenant or agreement made by Ono in this Agreement. For avoidance of doubt,
such indemnification shall not apply to any Loss caused by the sale of any Product by Ono to any Third Party. 

12.2 Indemnification by Ono. Ono hereby agrees to save, defend and hold harmless Merus and its Affiliates and their
respective directors, officers, employees and agents (each, a “Merus Indemnitee”) from and against any and all Losses to which any Merus Indemnitee may become subject, to the extent such Losses result from any claim, demand, action
or other proceeding against the Merus Indemnitee by any Third Party to the extent based upon: (i) the [***], including the practice by Ono (or its Affiliate or any Third Party subcontractor or Sublicensee) of [***] under this Agreement,
(ii) the manufacture, use, handling, storage, sale or other disposition of any Product and/or Licensed Biclonics by Ono, its Affiliates or Sublicensees, or (iii) the breach by Ono of any warranty, covenant or agreement made by Ono in this
Agreement; except, in each case, to the extent such Losses result from the negligence or willful misconduct of any Merus Indemnitee or the breach by Merus of any warranty, covenant or agreement made by Merus in this Agreement. 

12.3 Control of Defense. Any Party or any of its indemnitees entitled to indemnification under this Article 12 will give
notice to the indemnifying Party of any Losses for which it is claiming indemnification promptly after learning of such Losses, and the indemnifying Party will assume the defense of such Losses with counsel reasonably satisfactory to the indemnified
Party. If such defense is assumed by the indemnifying Party with counsel so selected, the indemnifying Party will not be liable for any settlement of such Losses made by the indemnified Party without consent of the indemnifying Party (provided
that such consent is not unreasonably withheld or delayed), and will not be obligated to pay the fees and expenses of any separate counsel retained by the indemnified Party with respect to such Losses or indemnification claim. 

12.4 Insurance. Each Party shall maintain at its expense insurance coverage consistent with normal business practices and
adequate to cover the risks associated with its performance of any activities hereunder, and each Party acknowledges and agrees that the maintenance of such insurance coverage shall not relieve either Party of its obligations under this Agreement.
Ono, at its own expense, will maintain product liability insurance (or self-insure) in an amount consistent with industry standards during the Term of this Agreement. Ono will provide a certificate of insurance (or evidence of self-insurance)
evidencing such coverage to Merus upon request. Merus, at its own expense, will maintain during the Research Term and for a period of at least [***] ([***]) years thereafter to maintain (a) workers’ compensation insurance for all of
its employees, the limits of which shall be as required under statute; and (b) commercial general liability insurance on a claims made basis having limits of not less than €[***] in the aggregate and €[***] per occurrence. Merus will
provide a 

  
 28 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
certificate of insurance (or evidence of self-insurance) evidencing such coverage to Ono upon request. For avoidance of doubt, such insurance obligation by Merus shall not apply to cover any
Loss caused by the sale of any Product by Ono to any Third Party. 
 13. DISPUTE RESOLUTION 

13.1 Discussion by Senior Executives.

(a) If there is a matter within the JSC’s authority for which the JSC is unable to reach a decision, or if any dispute (including
any claim or controversy arising from or related in any way to this Agreement or the interpretation, application, breach, termination or validity thereof, including any claim of inducement of breach of this Agreement by fraud or otherwise) arises
between the Parties under this Agreement, such matter or dispute will be referred to the Chief Executive Officer of Merus and the Executive Director of Discovery and Research of Ono, for further discussion and resolution. These individuals will
as soon as practicable meet and attempt in good faith to resolve the matter or dispute and reach agreement. These individuals may obtain the advice of other employees or consultants as they deem necessary or advisable to facilitate
resolution.
 (b) If an unresolved JSC matter or the dispute with respect to performance of Ono under its sole responsibility is not
resolved by such senior executives, the decision by Ono’s senior executive shall be final and bind on the Parties as set forth the last sentence of Section 3.2. For all other disputes, if the senior executives cannot reach agreement as to
the dispute within [***] ([***]) days of the dispute being referred to them by either Party in writing, then the dispute (an “Unresolved Issue”) will be resolved as provided in Section 13.2 or 13.3, as applicable. 

13.2 Arbitration. 

(a) Any Unresolved Issue not resolved under Section 13.3 shall be resolved by arbitration pursuant to the rules then
pertaining under the Rules of Arbitration of the International Chamber of Commerce (“ICC”) by [***] ([***]) arbitrators, except where these Rules conflict with this provision, in which case this provision controls. The arbitration will be
held in New York, in the U.S.A., and shall be conducted in the English language. The arbitrators shall decide the Dispute in accordance with the law governing this Agreement. In the case that no ICC rules exist, the Parties will in that case
agree in good faith on alternate arbitration rules to govern any arbitration conducted under this Section 13.2. 
 (b) The
panel will consist of [***] ([***]) arbitrators each of whom is a lawyer with a law firm or corporate law department or was a judge of a court of general jurisdiction who, in either case, has at least [***] ([***]) years of experience in the
biopharmaceutical field. Notwithstanding the foregoing, if the aggregate damages sought by the claimant are stated to be less than €[***], and the aggregate damages sought by the counterclaimant are stated to be less than €[***], and
neither side seeks equitable relief, then a single arbitrator will be chosen, having the same qualifications and experience specified above. Each arbitrator will be neutral, independent, disinterested, and impartial. 

(c) Each Party shall nominate in the request for arbitration and the answer thereto one arbitrator and the two arbitrators so
named shall then jointly 

  
 29 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
appoint the third arbitrator as chairman of the arbitration tribunal, each of them reasonably acceptable to the other Party, acceptance of which shall not be unreasonably withheld. If one Party
fails to nominate its arbitrator or, if the Parties’ arbitrators cannot agree on the person to be named as chairman within [***] ([***]) days, the President of the ICC shall make the necessary appointments. After appointment, the Parties shall
have no ex-parte communication with their proposed arbitrator. 
 (d) Within [***] ([***]) days of initiation of arbitration,
the Parties shall reach agreement upon and thereafter follow procedures assuring that the arbitration shall be concluded and the award rendered within no more than [***] ([***]) months from selection of the arbitrators. Failing such agreement,
the ICC Arbitration Rules shall control the scheduling and the Parties shall follow procedures that meet such a time schedule. Each Party has the right before or, if the arbitrators cannot hear the matter within an acceptable period, during the
arbitration to seek and obtain from any court of competent jurisdiction provisional remedies such as attachment, preliminary injunction, replevin, etc., to avoid irreparable harm, maintain the status quo or preserve the subject matter of the
arbitration. Any request for such provisional measures by a Party to a court shall not be deemed a waiver of this agreement to arbitrate. In addition, the arbitration tribunal may, at the request of a Party, order provisional or
conservatory measures (including preliminary injunctions to prevent breaches hereof) and the Parties shall be able to enforce the terms and provisions of such orders in any court having jurisdiction. The decision of the arbitration tribunal
must be in writing and must specify the basis on which the decision was made, and the award of the arbitration tribunal shall be final, non-appealable and binding upon the Parties and judgment upon such an award may be entered in any competent court
or application may be made to any competent court for judicial acceptance of such an award and order of enforcement. THE ARBITRATION TRIBUNAL SHALL NOT AWARD ANY PARTY PUNITIVE, EXEMPLARY, MULTIPLIED OR CONSEQUENTIAL DAMAGES, AND EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT TO SEEK SUCH DAMAGES. NO PARTY MAY SEEK OR OBTAIN PREJUDGMENT INTEREST OR ATTORNEY’S FEES OR COSTS. 

13.3 Preliminary Injunctive Relief. Notwithstanding anything to the contrary, either Party may at any time seek to obtain
provisional remedies such as attachment, preliminary injunctive relief, replevin, etc., solely to avoid irreparable harm, maintain the status quo or preserve the subject matter of the arbitration in equity from a court of competent jurisdiction with
respect to an issue arising under this Agreement if the rights of such Party would be prejudiced absent such relief, including any dispute relating to (i) the determination as to the infringement, validity or claim interpretation of a
Party’s Patent Rights, or (ii) the misuse and/or misappropriation of a Party’s Confidential Information, in each case, a Party may submit such dispute to the competent court. 

13.4 Diligence Disputes. For any Unresolved Dispute that involves a claim by either Party that the other Party has breached
its diligence obligations under the Agreement, the arbitrators of such Unresolved Dispute will, under the arbitration conducted under Section 13.2, determine if such other Party materially breached such diligence obligations.

  
 30 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 14. GENERAL PROVISIONS 

14.1 Governing Law. This Agreement will be governed by, and construed and enforced in accordance with, the laws and
regulations of the State of New York, U.S.A., as well as United States federal law and regulations, without giving effect to any conflicts of laws principles. 

14.2 Entire Agreement; Modification. This Agreement, including its appendices and exhibits, is both a final expression of the
Parties’ agreement and a complete and exclusive statement with respect to all of its terms. In the event of any inconsistency between the terms of the body of this Agreement and the terms of any appendices or exhibits, the body of this
Agreement shall control. This Agreement supersedes all prior and contemporaneous agreements and communications between the Parties, whether oral, written or otherwise, concerning the subject matter contained herein. No rights or licenses
with respect to any intellectual property of either Party are granted or deemed granted hereunder or in connection herewith, other than those rights expressly granted in this Agreement. This Agreement may only be modified or supplemented in a
writing expressly stated for such purpose and signed by the Parties to this Agreement. 
 14.3 Relationship of the
Parties. The Parties’ relationship, as established by this Agreement, is solely that of independent contractors. This Agreement does not create any partnership, joint venture or similar business relationship between the
Parties. Neither Party is a legal representative or agent of the other Party, and neither Party can assume or create any obligation, representation, warranty or guarantee, express or implied, on behalf of the other Party for any purpose
whatsoever. 
 14.4 Performance by Affiliates and Sublicensees. The Parties recognize that each may perform some or all of
its obligations under this Agreement through Affiliates or Third Party subcontractors or Sublicensees, provided, however, that each Party will remain responsible and be guarantor of the performance by its Affiliates and Third Party
subcontractors and Sublicensees and will cause them to comply with the provisions of this Agreement in connection with such performance. In particular, if any Affiliate of a Party or its Third Party subcontractor participates in Research under
this Agreement or its Sublicensee with respect to Target Specific Biclonics, (a) the restrictions and obligations of this Agreement which apply to the activities of a Party will apply equally to the activities of such Affiliate and Third Party
subcontractors and Sublicensees, and (b) the Party performing through such Affiliate or Third Party subcontractor or Sublicensee will assure, and hereby guarantees, that such performance will be consistent with the provisions of this
Agreement. Any action or omission by a Party’s Affiliate, Third Party subcontractor, or a Sublicensee which would, if such action or omission were conducted by the Party, constitute a breach of the Party’s obligations under this
Agreement will constitute a breach by the Party. 
 14.5 Non-Waiver. The failure of a Party to insist upon strict
performance of any provision of this Agreement or to exercise any right arising out of this Agreement will neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any
other instance. Any waiver by a Party of a particular provision or right to be effective must be in writing signed by such Party, and will be limited to the specified matter and, if applicable, the specified period of time in such writing. 

  
 31 

 14.6 Assignment. Except as expressly provided hereunder, neither this Agreement
nor any rights or obligations hereunder may be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent will not be unreasonably withheld); provided, however, that either Party may
assign this Agreement or any of its license rights granted hereunder without the other Party’s consent: 
 (a) to its
successor in interest in connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates, whether by merger, sale of stock, sale of assets or otherwise, provided that in the event of a
transaction (whether this Agreement is actually assigned or is assumed by the acquiring Party by operation of law), intellectual property rights of the acquiring party to such transaction (if other than one of the Parties to this Agreement) will not
be included in the technology licensed hereunder, and, provided further that the such acquiring party will remain liable and responsible to the non-assigning Party hereto for the performance and observance of all such duties and obligations of the
assigning Party; or 
 (b) to an Affiliate, provided that the assigning Party will remain liable and responsible to the
non-assigning Party hereto for the performance and observance of all such duties and obligations by such Affiliate. 
 The rights and obligations of the
Parties under this Agreement will be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any assignment not in accordance with this Agreement will be void. 

14.7 No Third Party Beneficiaries. This Agreement is neither expressly nor impliedly made for the benefit of any party other
than those Parties executing it. 
 14.8 Severability. If, for any reason, any part of this Agreement is adjudicated
invalid, unenforceable or illegal by a court of competent jurisdiction, all other portions will remain in full force and effect, and the Parties will use their reasonable efforts to substitute for the invalid, unenforceable or illegal provision a
valid, enforceable and legal provision which conforms as nearly as possible with the original intent of the Parties. 

14.9 Notices. Any notice to be given under this Agreement must be in writing and delivered either in person, by Express or
certified mail (return receipt requested) (in each case postage prepaid), or by an internationally recognized express courier, or by facsimile with confirmed transmission, to the Party to be notified at its address(es) given below, or at any address
such Party has previously designated by prior written notice to the other. Notice will be deemed sufficiently given for all purposes upon the earliest of: (a) the date of actual receipt; (b) if mailed, [***] ([***]) days after
the date of postmark; or (c) if delivered by express courier, [***]. 

  
 32 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 If to Ono, notices must be addressed to: 

Ono Pharmaceutical Co., Ltd 

Minase Research institute 
 1-1,
Sakurai, 3-chome, 
 Shimamoto, Mishima, Osaka, 618-8585, Japan 

Attn: Director, Discovery Research Alliance 

Facsimile: [***] 
 If to Merus,
notices must be addressed to: 
 Merus B.V. 

Padualaan 8 
 3584 CH Utrecht

 the Netherlands 

Attention: Mark Throsby, CSO 

Telephone: [***] 
 Email:
[***] 
 with a copy to: 

Shelley Margetson, CFO 
 Email:
[***] 
 14.10 Force Majeure. Each Party will be excused from liability for the failure or delay in performance of any
obligation under this Agreement by reason of any event beyond such Party’s reasonable control, including but not limited to Acts of God, fire, flood, explosion, earthquake, or other natural forces, war, terrorism, civil unrest, accident,
destruction or other casualty, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, any strike or labor disturbance, or any other event similar to those enumerated above. Such excuse from liability
will be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the Party has not caused such event(s) to occur and continues to use diligent, good faith efforts to avoid the effects of
such event and to perform the obligation. Notice of a Party’s failure or delay in performance due to force majeure must be given to the other Party within [***] ([***]) days after its occurrence. All delivery dates under this
Agreement that have been affected by force majeure will be tolled for the duration of such force majeure. The Party failing or delaying in performance of any obligation under this Agreement by reason of such force majeure event will use
reasonable effort to recover from such force majeure event to perform its obligations, provided that in no event will any Party be required to prevent or settle any labor disturbance or dispute. Notwithstanding the foregoing, should the
event(s) of force majeure suffered by a Party extend beyond a nine-month period, the other Party may then terminate this Agreement by written notice to the non-performing Party, with the consequences of such termination as set forth in
Section 11.5. 
 14.11 Interpretation. 

(a) Captions & Headings. The captions and headings of clauses contained in this Agreement preceding the text of the
articles, sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and will not constitute any part of this Agreement, or have any effect on its interpretation or construction. 

  
 33 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 (b) Singular & Plural. All references in this Agreement to the singular
will include the plural where applicable, and all references to gender will include both genders and the neuter. 
 (c) Articles,
Sections & Subsections. Unless otherwise specified, references in this Agreement to any article will include all sections, subsections, and paragraphs in such article; references in this Agreement to any section will
include all subsections and paragraphs in such sections; and references in this Agreement to any subsection will include all paragraphs in such subsection. 

(d) Ambiguities. Ambiguities and uncertainties in this Agreement, if any, will not be interpreted against either Party,
irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist. 
 (e) English
Language. All notices required or permitted to be given hereunder, and all written, electronic, oral or other communications between the Parties regarding this Agreement will be in the English language. 

14.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original
document, and all of which, together with this writing, will be deemed one instrument. Signing and delivery of this Agreement may be evidenced by an electronic transmission of the front and signed signature page to the other Party, provided however,
that such electronic signing and delivery is confirmed in written paper copy signed by and delivered to each Party promptly following electronic signing and delivery. 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the Effective Date. 

 

									
	MERUS B.V.	  		  		  	ONO PHARMACEUTICAL Co. Ltd.
					
	By:	  	 /s/ Ton Logtenberg
	  		  	By:	  	 /s/ Gyo Sagara

	Name:	  	Ton Logtenberg	  		  	Name:	  	Gyo Sagara
	Title:	  	CEO	  		  	Title:	  	 President, Representative Director
 and Chief
Executive Officer

  
 34 

 EXHIBIT A 

Initial Research Plan 
 1. Rationale

 [***] 
 2. Background information 

[***] 
 3. Objective 

[***] 
 4. Endpoint / Outcome 

[***] 
 5. Go /No go decision points (time + resources)

 [***] 
 6. Proposed start and end date 

[***] 
 7. Time line for Merus activities 

[***] 
 8. Merus Research Budget 

[***] 
 9. Allocation of Funded Merus FTE 

[***] 
 10. Overview of Joint responsibilities &
research activities leading up to early milestones 
 [***] 

11. Detailed research plan 
 [***] 

  
 35 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT B 

[***] 

  
 36 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT C 

MERUS PATENT RIGHTS 
 [***] 

  
 37 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT D 

Intellectual Property Summary 
 [***] 

  
 38 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT E 

INITIAL MEMBERS OF JSC 
 Members
representing Merus: 
 [***] 
 Members representing Ono: 

[***] 

  
 39 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT F 

Form of Invoice 
 Invoice to be printed on
official Merus letterhead with date, payee’s tax ID, and Ono’s (or its designated Affiliate payor’s) P.O. number inserted: 
 DATE:
                         

INVOICE NO.:                     Merus* Tax ID:
[***] 
 Bill To: 
 Ono Pharmaceutical Co., Ltd. 

3-1-1 Sakurai, Shimamoto-cho 
 Mishima-gun, Osaka 618-8585, Japan

 Ono P.O. Number:              

Terms: Net [***] 
 Amount of payment due:
                 Euro 
 Payment due according to CONTRACT RESEARCH
AND LICENSE AGREEMENT between Merus B.V. and ONO Pharmaceuticals Inc. dated             , 2014, 

for:                      

  (If Research Funding) Relevant Research Period:
                     
   (If Milestone
Payment) Milestone Event:                      

Ship To: 
 Director, Research Licensing, Discovery Research
Alliance, Discovery and Research 
 Ono Pharmaceutical Co., Ltd. 

3-1-1 Sakurai, Shimamoto-cho 
 Mishima-gun, Osaka 618-8585, Japan

 Wire Instructions for Remittance to Merus: 

* Merus to provide details and contact information 

  
 40 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 ADDENDUM TO CONTRACT RESEARCH AND LICENSE AGREEMENT 

This Addendum (“Addendum”) is made on this 27th day of March, 2015 (the “Effective Addendum Date”) by and between: 

MERUS B.V., a private company with limited liability, having its registered office at Padualaan 8, 3584 CH Utrecht, the Netherlands
(“Merus”); 
 and 
 ONO PHARMACEUTICAL Co.
Ltd., a Japanese company with its head offices located at 8-2, Kyutaromachi 1-chome, Chuo-ku, Osaka 541-8564, Japan (“Ono”); 

Hereinafter also referred to individually as “Party” or collectively as the “Parties”. 

WHEREAS: 
  

	 	(A)	Merus and Ono have entered into a Contract Research and License Agreement dated April 8, 2014 (the “Agreement”); 

  

	 	(B)	Merus and Ono have agreed to amend the Agreement as set forth in this Addendum. 

 THERFORE, the Parties have
agreed as follows: 
  

	1.	Definitions and Interpretation 

  

	 	1.1.	Capitalized terms used in this Addendum shall, where not defined herein, have the meaning attributed to such terms in the Agreement. 

 

	2.	Upfront fee 

  

	 	2.1	The Parties agree that upfront fee of €1,000,000 (one million euros) shall be under no circumstances refundable to Ono. The Parties hereby understand and confirm that the second sentence of Section 6.1 of
the Agreement will no longer be applicable. 

  

	3.	Funded Merus FTEs 

  

	 	3.1	In accordance with Section 6.2.1 of the Agreement Merus hereby agrees to make available to Ono an additional [***] FTE over the following [***] months ([***] – [***]) at the
rate of €[***] per FTE per year. This will allow Merus to support Ono with productions, a swift technology transfer and cover the project management costs. Merus aims to transfer the Research Program by the end of [***].

  

	4.	Objective under Initial Work Plan 

  

	 	4.1	In the objective under Initial Work Plan (page 37, Section 3 of the Agreement), the Parties agreed about the option for Merus to make available to Ono a panel of [***] ([***]) existing Human
Antibodies against [***] as further specified in the attached Exhibit A to this Addendum (“Merus [***]”) in combination with newly obtained Human Antibodies against [***]. Merus hereby agrees to transfer Merus [***]
for use in Lead Biclonics to Ono at no extra charge. For clarity, any Target Specific Biclonics containing any Merus [***] that is functional and identified by Ono in accordance with the Specifications shall be deemed and construed as
Lead Biclonics under the Agreement. 

  
 41 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

	 	4.2	In connection with such transfer pursuant to the preceding Section, the Parties further agree that the definitions of “Merus Know-How”, “Merus Patent Rights”, and “Ono Patent Rights”
of the Agreement shall be deleted in their entirety and replaced with the following paragraphs, respectively; 

 “
‘Merus Know-How’ means the Know-How Controlled by Merus as of the Effective Date or developed by Merus during the Term that are necessary for research, development, use manufacturing and/or commercialization activities of Ono, its
Affiliates or Sublicensees with respect to Lead Biclonics and/or Products. Merus Know-How includes Merus [***]. For clarity, Merus Know-How will not include Merus Patent Rights and/or Ono Patent Rights. 

“ ‘Merus Patent Rights’ means the Patent Rights (a) Controlled by Merus as of the Effective Date relating to the
Merus Technology or (b) Covering any invention and discovery conceived, developed or reduced to practice solely by either Party, or jointly by both Parties during the Term relating to (i) any improvement of Merus Technology, (ii) any
process or material for making, delivering, or formulating bispecific Antibodies generated using Merus Technology, (iii) any method of using bispecific Antibodies generated using Merus Technology, (iv) any Research Tool or any process or
material for making or using a Research Tool, (v) a Human Antibody against either [***] or [***], but excluding Human Antibody of Lead Biclonics, and/or (vi) Merus [***], in each case of subsection (i) through
(vi) in this paragraph excluding Ono Patent Rights. The Merus Patent Rights include the Patent Rights listed in Exhibit C.” 

“ ‘Ono Patent Rights’ means the Patent Rights (a) Controlled by Ono as of the Effective Date specifically relating
to the Research Program or (b) Covering any invention or discovery conceived, developed or reduced to practice solely by either Party, or jointly by both Parties, during the Term relating to (i) any composition of matter claims relating to
Lead Biclonics, (ii) any composition of matter claims relating to Human Antibody of Lead Biclonics, but excluding Merus [***], (iii) any process or material for making, delivering, or formulating Lead Biclonics, (iv) any method
of using Lead Biclonics, and/or (v) any Research Tool or any process or material for making or using a Research Tool specifically relating to Lead Biclonics.” 

For clarity, Ono shall [***] that contain any Merus [***]. 

 

	 	4.3	The Parties agree that Sections 5.1(b) of the Agreement shall be deleted in its entirety and replaced with the following paragraph; 

“(b) Merus Retained Rights. Subject to Section 4.1 of the Addendum dated on March 27th, 2015, Merus retains all rights to
use and commercialize (i) any Human Antibodies that are generated under the Research Program but which are not Human Antibodies of Lead Biclonics and (ii) Merus [***] whether or not they are Human Antibodies of Lead Biclonics, and
provided that such retained use or commercialization is not with respect to the Target Combination.” 
  

	 	4.4	While it is understood that Merus is free to file any patent application or submit any publication with respect to Merus [***] based on its retained rights stipulated in the preceding Section 4.3,
Merus will notify Ono of the date of such patent filing or submission of publication at least [***] ([***]) days prior to such date. 

  

	5.	Specifications for Lead Biclonics 

  

	 	5.1	In light of Ono’s use of Merus [***] pursuant to Section 4.1 of this Addendum, the Parties hereby agree that Exhibit B of the Agreement shall be deleted in its entirety and replaced by Exhibit
B-1 as attached below. 

  
 42 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

	6.	Miscellaneous 

  

	 	6.1.	Except as expressly modified by this Addendum, the Agreement shall remain in full force and effect in accordance with its terms. 

 

	 	6.2.	Any terms of this Addendum may be amended or waived only with the written consent of the Parties and any such amendment or waiver will be binding on all Parties. 

 

	 	6.3.	If one or more provisions of this Addendum is held by any court of competent jurisdiction to be wholly or partially illegal, void, invalid or unenforceable, the remaining provisions shall remain in force and the
Parties undertake to replace the invalid or unenforceable provisions of this Addendum by provisions which are effective and which deviate as little as possible from the invalid or unenforceable provisions, taking into account the object and purpose
of this Addendum. 

  

	 	6.4.	This Addendum and the Agreement shall constitute the whole and only agreement between the Parties relating to the subject matter. 

 

	 	6.5.	This Addendum will be governed by, and construed and enforced in accordance with, the laws and regulations of the State of New York, U.S.A., as well as United States federal law and regulations, without giving
effect to any conflicts of laws principles. 

  

	 	6.6.	This Addendum may be executed in counterparts with each Party having received its copy, each of which will be deemed an original, but both of which together shall constitute one and the same agreement.

 [Signatures to follow] 

IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be signed by their duly authorised officers the date above written. 

 

									
	MERUS B.V.	  		 	ONO PHARMACEUTICAL Co. Ltd.
					
	By:	  	 /s/ Ton Logtenberg
	  		 	By:	  	 /s/ Kazuhito Kawabata

	Name:	  	Ton Logtenberg	  		 	Name:	  	Kazuhito Kawabata, Ph.D.
	Title:	  	Chief Executive Officer	  		 	Title:	  	Member of the Board of Directors,
		  		  		 		  	Executive Officer, Executive Director
		  		  		 		  	Discovery and Research
					
	By:	  	 /s/ Shelley Margetson
	  		 		  	
	Name:	  	Shelley Margetson	  		 		  	
	Title:	  	Chief Financial Officer	  		 		  	

  
 43 

 EXHIBIT A 

[***] 

  
 44 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT B-1 

Specifications for Lead Biclonics and 

Preclinical Proof of Mechanism 

[***] 

  
 45 

 

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions.Exhibit

Exhibit 10.01

EXECUTION VERSION

	
			
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED 
BANK OF AMERICA, N.A. 
One Bryant Park 
New York, New York 10036

	SUNTRUST BANK
SUNTRUST ROBINSON HUMPHREY, INC.
3333 Peachtree Road
Atlanta, Georgia 30326

	MUFG UNION BANK, N.A.
1251 Avenue of the Americas
New York, New York 10020

October 18, 2015
WEX Inc.
97 Darling Avenue
South Portland, ME  04106

Attention: Steven A. Elder
Project Elvis 
Commitment Letter
Ladies and Gentlemen:
WEX Inc. (“you” or the “Borrower”) has advised Bank of America, N.A. (“Bank of America”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any of its designated affiliates, “Merrill Lynch”), SunTrust Bank (“SunTrust”), SunTrust Robinson Humphrey, Inc. (or any of its designated affiliates, “STRH”) and MUFG Union Bank, N.A. (or any of its designated affiliates, “MUFG”, together with Bank of America, Merrill Lynch, SunTrust and STRH, the “Commitment Parties”, “we” or “us”) that you intend to acquire (the “Acquisition”) directly or indirectly, an entity identified to us as “Elvis” (the “Acquired Business”).  The Acquisition will be effected through the acquisition of membership interests in a blocker entity and holding company of the Acquired Business.  In connection with the Acquisition, all of the existing indebtedness under the Existing Credit Agreement (as hereinafter defined) and all of the existing indebtedness of the Acquired Business under (i) that certain First Lien Credit Agreement, dated as of May 29, 2014, as amended, by and among the Acquired Business, WP Mustang Holdings LLC, the several banks and other financial institutions and lenders from time to time party thereto and Goldman Sachs Bank USA, in its capacity as first lien administrative agent for such lenders, and (ii) that certain Second Lien Credit Agreement, dated as of May 29, 2014, as amended, by and among the Acquired Business, WP Mustang Holdings LLC, the several banks and other financial institutions and lenders from time to time party thereto and Credit Suisse AG, in its capacity as second lien administrative agent for such lenders, the credit agreements described in (i) and (ii), the “Existing Mustang Credit Agreements”) will, in each case, be repaid in full, all commitments thereunder will be terminated and the security interests with respect thereto will be released (the “Refinancing”).  The Borrower, the Acquired Business and their respective subsidiaries are sometimes collectively referred to herein as the “Companies”.
You have also advised us that you intend to finance the Acquisition, the Refinancing, the costs and expenses related to the Transaction (as hereinafter defined) and the ongoing working capital and other general corporate purposes of the Companies after consummation of the Acquisition from the following sources (and that no financing other than the financing described herein will be required in connection with the consummation of the Transaction):  (a) $2,125.0 million in senior secured credit facilities of the Borrower (collectively, the “Facilities”) comprised of (i) a term loan B facility of 

$1,775.0 million (the “Term Loan Facility”) and (ii) a revolving credit facility of $350.0 million (the “Revolving Credit Facility”), (b) the issuance of equity interests (the “Equity Issuance”) in the Borrower as part of the consideration for the Acquisition in accordance with the Acquisition Agreement dated the date hereof relating to the Acquisition (the “Acquisition Agreement”) and (c) cash on the balance sheet of the Borrower.  The Acquisition, the Refinancing, the entering into and initial funding of the Facilities and all related transactions are hereinafter collectively referred to as the “Transaction”.  The date of consummation of the Acquisition is referred to herein as the “Closing Date.”
1.Commitments.  In connection with the foregoing, (a)(i) Bank of America is pleased to advise you of its commitment to provide 40% of each of the Facilities, (ii) SunTrust is pleased to advise you of its commitment to provide 30% of each of the Facilities and (iii) MUFG is pleased to advise you of its commitment to provide 30% of each of the Facilities (in such capacity, each an “Initial Lender” and together, the “Initial Lenders”), (b) Bank of America is pleased to advise you of its willingness to act as the sole and exclusive administrative agent (in such capacity, the “Administrative Agent”) for the Facilities (in each case subject only to the satisfaction of the conditions set forth in paragraph 5 below, the conditions in the section entitled “Conditions Precedent to Closing and Initial Funding” in Annex I hereto and the conditions in Annex II hereto) (Annex I and Annex II, collectively, the “Summary of Terms” and, together with this letter agreement, the “Commitment Letter”) and (c) each of Merrill Lynch, STRH and MUFG is pleased to advise you of its willingness, and you hereby engage each of Merrill Lynch, STRH and MUFG, to act as joint lead arrangers and joint bookrunning managers (in such capacity, each a “Lead Arranger” and together, the “Lead Arrangers”) for the Facilities, and in connection therewith to form a syndicate of lenders for the Facilities (collectively, the “Lenders”) in consultation with you. It is understood and agreed that Bank of America and Merrill Lynch will have “lead left” placement on all marketing materials relating to the Facilities and will perform the duties and exercise the authority customarily performed and exercised by them in such role, including acting as sole manager of the physical books. All capitalized terms used and not otherwise defined herein shall have the same meanings as specified therefor in the Summary of Terms.  
You agree that no other agents, co-agents, arrangers or bookrunners will be appointed, no other titles will be awarded and no compensation (other than compensation expressly contemplated by this Commitment Letter and the Fee Letter referred to below) will be paid to any Lender in order to obtain its commitment to participate in any of the Facilities unless you and we shall so agree.
2.    Syndication.  The Lead Arrangers intend to commence syndication of the Facilities promptly after your acceptance of the terms of this Commitment Letter and the Fee Letter related to the Facilities to one or more financial institutions (x) with respect to the Revolving Credit Facility, reasonably acceptable to you (with your consent not to be unreasonably withheld, conditioned or delayed) and (y) with respect to the Term Loan Facility, in consultation with you; provided, however, that notwithstanding the Lead Arrangers’ right to syndicate the Facilities and receive commitments with respect thereto, (a) except as you otherwise agree, the Initial Lenders shall not be relieved, released or novated from their obligations hereunder (including the obligation to fund the Facilities on the Closing Date) in connection with any syndication, assignment or participation of the Facilities, including their commitments in respect thereof, until after the initial funding under the Facilities on the Closing Date has occurred, (b) no such syndication, assignment or novation shall become effective with respect to all or any portion of the Initial Lenders’ commitments in respect of the Facilities until the initial funding of the Facilities, and (c) unless you otherwise agree in writing, the Initial Lenders shall retain exclusive control over all rights with respect to their commitments hereunder with respect to consents, modifications, supplements, waivers and amendments, until the initial funding of the Facilities on the Closing Date has occurred.  You agree to actively assist, and to use your commercially reasonable efforts to cause the 

-2-

Acquired Business and its subsidiaries to actively assist, the Lead Arrangers in achieving a syndication of each of the Facilities that is satisfactory to the Lead Arrangers.  Such assistance shall include (a) your providing and causing your advisors to provide, and using your commercially reasonable efforts to cause the Acquired Business, its subsidiaries and its advisors to provide, the Lead Arrangers and the Lenders upon request with all customary information reasonably deemed necessary by the Lead Arrangers to complete such syndication, including, but not limited to, all customary projected financial information of the Companies, (b) your assistance in the preparation of an information memorandum with respect to the Facilities in form and substance customary for transactions of this type (each, an “Information Memorandum”) and other customary offering and marketing materials to be used in connection with the syndication of each Facility, (c) until the earlier of (x) 60 days after the Closing Date and (y) the Successful Syndication (as defined in the Fee Letter) of the Facilities (such date, the “Syndication Date”), your using your commercially reasonable efforts to ensure that the syndication efforts of the Lead Arrangers benefit materially from your existing lending relationships, (d) your using commercially reasonable efforts to obtain prior to the commencement of the Marketing Period (as hereinafter defined), monitored public corporate credit or family ratings (but not any specific rating or ratings) of the Borrower after giving effect to the Transaction and ratings of the Term Loan Facility from Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc. (“S&P”) (collectively, the “Ratings”), (e) prior to the Syndication Date, your ensuring, and with respect to the Acquired Business, using your commercially reasonable efforts to ensure, that there shall be no competing issues, offerings, placements or arrangements of debt securities or commercial bank or other credit facilities by the Companies (other than (i) the Facilities, (ii) any issuances of debt by WEX Bank in the ordinary course, (iii) borrowings by the Borrower under the Existing Credit Agreement (including incremental loans) used to finance the acquisition of certain entities identified to you and us as “Accent” and “Olympus”, (iv) overdraft lines and (v) any accounts receivable securitization facilities of the Borrower or its subsidiaries), including any renewals or refinancings of any existing debt or, in each case, that, in the reasonable judgment of the Lead Arrangers, could reasonably be expected to materially and adversely affect the syndication of the Facilities without the prior written consent (not to be unreasonably withheld) of the Lead Arrangers (it being understood that ordinary course working capital borrowings under the existing revolving credit facilities of the Companies and any debt permitted to be incurred under the Acquisition Agreement shall be permitted) and (f) prior to the Syndication Date, your otherwise assisting the Lead Arrangers in their syndication efforts, including by making your officers and advisors, and using your commercially reasonable efforts to make the officers and advisors of the Acquired Business, available from time to time to attend and make presentations regarding the business and prospects of the Companies and the Transaction at one or more meetings of prospective Lenders.  Notwithstanding anything to the contrary contained in this Commitment Letter or the Fee Letter or any other letter agreement or undertaking concerning the financing of the Transaction to the contrary, any of the requirements above (including the obtaining of the Ratings referenced above, and the commencement or completion of any syndication of the Facilities) shall not constitute a condition to the commitments hereunder or the funding of the Facilities on the Closing Date.
It is understood and agreed that the Lead Arrangers will manage and control all aspects of the syndication of the Facilities in consultation with you, including decisions as to the selection of prospective Lenders and any titles offered to proposed Lenders, when commitments will be accepted and the final allocations of the commitments among the Lenders.  It is understood that no Lender participating in the Facilities will receive compensation from you in order to obtain its commitment, except on the terms contained herein, in the Summary of Terms and in the Fee Letter.  It is further understood that the Initial Lenders’ commitments hereunder are not conditioned upon the syndication of, or receipt of commitments in respect of, the Facilities and in no event shall the commencement of successful 

-3-

completion of syndication of the Facilities constitute a condition to availability of the Facilities on the Closing Date.
The parties agree that prior to the commencement of any syndication of the Facilities, the Borrower and the Lead Arrangers will consult with each other in good faith as to the best permanent financing structure available to the Borrower given the market conditions at such time (it being understood that the Commitment Parties are not providing commitments with respect to any financing except as expressly set forth herein with respect to the Facilities).
3.    Information Requirements.  You hereby represent, warrant and covenant (with respect to Information relating to the Acquired Business, to the best of your knowledge) that (a) all written information, other than Projections (as defined below) and other than information of a general or industry-specific nature, that has been or is hereafter made available to the Lead Arrangers or any of the Lenders by or on behalf of you or any of your representatives or by or on behalf of the Acquired Business or any of its representatives in connection with any aspect of the Transaction (including such information, to the best of your knowledge, relating to the Acquired Business) (the “Information”) is and will be, when furnished, complete and correct in all material respects and does not and will not, when furnished and taken as a whole, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading and (b) all financial projections concerning the Companies that have been or are hereafter made available to the Lead Arrangers or any of the Lenders by or on behalf of you or any of your representatives or by or on behalf of the Acquired Business or its representatives (the “Projections”) (to the best of your knowledge, in the case of Projections provided by the Acquired Business) have been or will be prepared in good faith based upon reasonable assumptions (it being understood and agreed that the Projections are as to future events and are not to be viewed as facts or a guarantee of financial performance or achievement, that the Projections are subject to significant uncertainties and contingencies, many of which are beyond your control, and that actual results may differ from the Projections and such differences may be material).  You agree that if at any time prior to the Closing Date and, if requested by us, for such period thereafter as is necessary to complete the Successful Syndication of the Facilities any of the representations in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations were being made, at such time, then you will promptly supplement, or cause to be supplemented, the Information and Projections so that such representations will be correct in all material respects at such time.  In issuing this commitment and in arranging and syndicating the Facilities, the Commitment Parties are and will be using and relying on the Information and the Projections without independent verification thereof.  The Information and Projections provided to the Lead Arrangers prior to the date hereof are hereinafter referred to as the “Pre-Commitment Information”.
You acknowledge that (a) the Commitment Parties on your behalf will make available Information Materials to the proposed syndicate of Lenders by posting the Information, the Projections, the Summary of Terms and any additional summary of terms prepared for distribution to Public Lenders (as hereinafter defined) (collectively, the “Information Materials”) on IntraLinks or another similar electronic system and (b) certain prospective Lenders (such Lenders, “Public Lenders”; all other Lenders, “Private Lenders”) may have personnel that do not wish to receive material non-public information (within the meaning of the United States federal securities laws, “MNPI”) with respect to the Companies, their respective affiliates or any other entity, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such entities’ securities.  If requested, you will assist us in preparing an additional version of the Information Materials not containing MNPI (the “Public Information Materials”) to be distributed to prospective Public Lenders. It 

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is understood and agreed that the Borrower will exclude MNPI from the Public Information Materials with respect to the Borrower, the Acquired Business and the Acquisition.
Before distribution of any Information Materials (a) to prospective Private Lenders, you shall provide us with a customary letter authorizing the dissemination of the Information Materials and (b) to prospective Public Lenders, you shall provide us with a customary letter authorizing the dissemination of the Public Information Materials and confirming the absence of MNPI therefrom.  In addition, (x) at our request, you shall identify Public Information Materials by clearly and conspicuously marking the same as “PUBLIC”; (y) all Information Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Administrative Agent (and its affiliates) shall be entitled to treat any Information Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”
You agree that the Lead Arrangers on your behalf may distribute the following documents to all prospective Lenders, unless you advise the Lead Arrangers in writing (including by email) within a reasonable time prior to their intended distributions that such material should only be distributed to prospective Private Lenders:  (a) administrative materials for prospective Lenders such as lender meeting invitations and funding and closing memoranda, (b) notifications of changes to the terms of the Facilities and (c) other materials intended for prospective Lenders after the initial distribution of the Information Materials, including drafts (approved in writing by the Administrative Agent (or its affiliates)) and final versions of definitive documents with respect to the Facilities.  If you advise us that any of the foregoing items should be distributed only to Private Lenders, then the Lead Arrangers will not distribute such materials to Public Lenders without further discussions with you.  You agree that Information Materials made available to prospective Public Lenders in accordance with this Commitment Letter shall not contain MNPI.
4.    Fees and Indemnities.
(a)    You agree to pay the fees set forth in the Fee Letter.  You also agree to reimburse the Commitment Parties from time to time on demand for all reasonable out-of-pocket fees and expenses (including, but not limited to, the reasonable fees, disbursements and other charges of Cahill Gordon & Reindel LLP, as counsel to the Lead Arrangers and the Administrative Agents, and of any special and local counsel to the Lenders retained by the Lead Arrangers and due diligence expenses) incurred in connection with the Facilities, the syndication thereof, the preparation of the Credit Documentation therefor and the other transactions contemplated hereby, whether or not the Closing Date occurs or any Credit Documentation is executed and delivered or any extensions of credit are made under the Facilities.  You acknowledge that certain Commitment Parties may receive a benefit, including without limitation, a discount, credit or other accommodation, from any of such counsel based on the fees such counsel may receive on account of their relationship with us including, without limitation, fees paid pursuant hereto.
(b)    You also agree to indemnify and hold harmless each of the Commitment Parties, each other Lender and each of their affiliates, successors and assigns and their respective officers, directors, employees, agents, advisors and other representatives (each, an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the same are incurred for) any and all claims, damages, losses, liabilities and expenses (including, without limitation, the reasonable fees, disbursements and other charges of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in 

-5-

connection therewith) (a) any aspect of the Transaction or any similar transaction and any of the other transactions contemplated thereby or (b) the Facilities and any other financings, or any use made or proposed to be made with the proceeds thereof (in all cases, whether or not caused or arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnified Party), except to the extent such claim, damage, loss, liability or expense (i) is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from (A) such Indemnified Party’s gross negligence or willful misconduct or (B) a material breach by such Indemnified Party of its obligations under this Commitment Letter or (ii) arises from a proceeding by an Indemnified Party against an Indemnified Party (other than an action (X) involving alleged conduct by you or any of your affiliates or (Y) against an arranger or administrative agent in its capacity as such).  In the case of any claim, litigation, investigation or proceeding (any of the foregoing, a “Proceeding”) to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such Proceeding is brought by you, your equity holders or creditors or an Indemnified Party, whether or not an Indemnified Party is otherwise a party thereto and whether or not any aspect of the Transaction is consummated.  You also agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to you, the Acquired Business or your or its subsidiaries or affiliates or to your or their respective equity holders or creditors or any other person arising out of, related to or in connection with any aspect of the Transaction, except to the extent of direct (as opposed to special, indirect, consequential or punitive) damages determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct.  It is further agreed that the Commitment Parties shall only have liability to you (as opposed to any other person), and that the Commitment Parties shall be severally liable solely in respect of their respective commitments to the Facilities, on a several, and not joint, basis with any other Lender.  Notwithstanding any other provision of this Commitment Letter, no Indemnified Party shall be liable for any damages arising from the use by others of information or other materials obtained through electronic telecommunications or other information transmission systems, other than for direct, actual damages resulting from the gross negligence or willful misconduct of such Indemnified Party as determined by a final, non-appealable judgment of a court of competent jurisdiction.  You shall not, without the prior written consent of an Indemnified Party (which consent shall not be unreasonably withheld), effect any settlement of any pending or threatened Proceeding against an Indemnified Party in respect of which indemnity could have been sought hereunder by such Indemnified Party unless such settlement (i) includes an unconditional release of such Indemnified Party from all liability or claims that are the subject matter of such Proceeding and (ii) does not include any statement as to any admission.
5.    Conditions to Financing.  The commitments of the Initial Lenders in respect of the Facilities and the undertaking of the Lead Arrangers to provide the services described herein are subject solely to the satisfaction (or waiver by the Commitment Parties) of each of the following conditions precedent:  (a) you shall have accepted the separate fee letter addressed to you dated the date hereof from the Commitment Parties (the “Fee Letter”) as provided therein for the Facilities; (b) the execution and delivery by the Borrower and the Guarantors (provided that Guarantors that relate to the Acquired Business shall only be required to execute and deliver any documentation substantially simultaneously with the consummation of the Acquisition) of definitive documentation with respect to each Facility, which shall (i) be consistent with this Commitment Letter and the Fee Letter, (ii) be subject in all respects to the Funds Certain Provisions and (iii) give effect to the Documentation Standard (as defined in Annex I) (the “Credit Documentation”); and (c) the satisfaction of each of the conditions set forth in Annex II hereto; and upon satisfaction (or waiver by the Commitment Parties) of such conditions, the initial funding of the Facilities shall occur.  

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Notwithstanding anything in this Commitment Letter, the Fee Letter, the Credit Documentation or any other letter agreement or other undertaking concerning the financing of the Transaction to the contrary, (i) without limiting clause (ii) below, the only representations relating to the Acquired Business, its subsidiaries and its businesses the accuracy of which shall be a condition to the availability of the Facilities on the Closing Date shall be the representations made by or with respect to the Acquired Business and its subsidiaries in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that you have the right to terminate your obligations under the Acquisition Agreement, or to decline to consummate the Acquisition pursuant to the Acquisition Agreement (as hereinafter defined), as a result of a breach of such representations in the Acquisition Agreement (to such extent, the “Acquisition Agreement Representations”) and (ii) the only representations made by the Borrower and the Guarantors the accuracy of which shall be a condition to the availability of the Facilities on the Closing Date shall be the Specified Representations (as hereinafter defined).  For purposes hereof, “Specified Representations” means the representations and warranties of the Borrower and the Guarantors set forth in the Credit Documentation relating to corporate status, corporate power and authority to enter into the Credit Documentation, due authorization, execution, delivery and enforceability of the Credit Documentation (in each case, related to the entering into and performance of the applicable Credit Documentation), no conflicts with or consents under charter documents, solvency as of the Closing Date (after giving effect to the Transaction) of the Borrower and its subsidiaries on a consolidated basis (consistent with the solvency certificate attached as Exhibit I to Annex II of this Commitment Letter), Federal Reserve margin regulations, the use of proceeds of the Loans not violating OFAC or FCPA, the U.S.A. Patriot Act, the Investment Company Act, the creation, validity, priority and perfection of the security interests granted in the intended collateral, subject to permitted liens as set forth in the Credit Documentation (it being understood that to the extent any security interest in the intended collateral (other than any collateral the security interest in which may be perfected by the filing of a UCC financing statement in the applicable UCC filing office or the delivery of certificates evidencing equity interests in material domestic wholly owned subsidiaries of the Borrower and the Acquired Business (except for any such subsidiaries of the Acquired Business with respect to which the Borrower has not received such certificates from the Acquired Business after use of commercially reasonable efforts to obtain such certificates)) is not provided on the Closing Date after your use of commercially reasonable efforts to do so without undue burden or expense, the provision of such perfected security interest(s) shall not constitute a condition precedent to the availability of the Facilities on the Closing Date but shall be required to be delivered after the Closing Date pursuant to arrangements to be mutually agreed).  The provisions of this paragraph are referred to herein as the “Funds Certain Provisions”.
6.    Confidentiality and Other Obligations.  This Commitment Letter and the Fee Letter and the contents hereof and thereof are confidential and may not be disclosed in whole or in part to any person or entity without the prior written consent of the Commitment Parties except (i) this Commitment Letter and the Fee Letter may be disclosed (A) on a confidential basis to your directors, officers, employees, accountants, attorneys and other representatives and professional advisors who need to know such information in connection with the Transaction and are informed of the confidential nature of such information, (B) pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, or otherwise as required by applicable law or stock exchange requirement or compulsory legal process (in which case you agree to inform the Commitment Parties promptly thereof prior to such disclosure to the extent permitted by applicable law), and (C) on a confidential basis to the directors, officers, employees, accountants, attorneys and other representatives and professional advisors of the Acquired Business; provided that the Fee Letter is redacted in a manner reasonably satisfactory to the Commitment Parties, (ii) Annex I and the existence of this Commitment Letter and the Fee Letter (but not the contents of the Commitment Letter and the Fee Letter) may be disclosed to Moody’s, S&P and 

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any other rating agency on a confidential basis, (iii) the aggregate amount of the fees (including upfront fees and original issue discount) payable under the Fee Letter may be disclosed as part of generic disclosure regarding sources and uses for closing of the Acquisition (but without disclosing any specific fees, market flex or other economic terms set forth therein or to whom such fees or other amounts are owed), (iv) the Commitment Letter and the Fee Letter may be disclosed on a confidential basis to your auditors for customary accounting purposes, including accounting for deferred financing costs, (v) you may disclose the Commitment Letter (but not the Fee Letter) and its contents in any information memorandum or syndication distribution, as well as in any proxy statement or other public filing relating to the Acquisition or the Facilities, and (vi) the Commitment Letter and Fee Letter may be disclosed to a court, tribunal or any other applicable administrative agency or judicial authority in connection with the enforcement of your rights hereunder (in which case you agree to inform the Commitment Parties promptly thereof prior to such disclosure to the extent permitted by applicable law).
The Commitment Parties shall use all confidential information provided to them by or on behalf of you hereunder solely for the purpose of providing the services which are the subject of this letter agreement and otherwise in connection with the Transactions and shall treat confidentially all such information; provided, however, that nothing herein shall prevent the Commitment Parties from disclosing any such information (i) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case the Commitment Parties agree to inform you promptly thereof to the extent not prohibited by law, rule or regulation), (ii) upon the request or demand of any regulatory authority having jurisdiction over the Commitment Parties or any of their respective affiliates, (iii) to the extent that such information becomes publicly available other than by reason of disclosure in violation of this agreement by the Commitment Parties, (iv) to the Commitment Parties’ affiliates, employees, legal counsel, independent auditors and other experts or agents who need to know such information in connection with the Transactions and are informed of the confidential nature of such information, (v) for purposes of establishing a “due diligence” defense, (vi) to the extent that such information is received by the Commitment Parties from a third party that is not to the Commitment Parties’ knowledge subject to confidentiality obligations to you, (vii) to the extent that such information is independently developed by the Commitment Parties, (viii) to potential Lenders, participants, assignees or any direct or indirect contractual counterparties to any swap or derivative transaction relating to you or your obligations under the Facilities, in each case, who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph or as otherwise reasonably acceptable to you and each Commitment Party, including as may be agreed in any confidential information memorandum or other marketing material), (ix) to Moody’s and S&P and to Bloomberg, LSTA and similar market data collectors with respect to the syndicated lending industry; provided that such information is limited to Annex I and is supplied only on a confidential basis or (x) with your prior written consent.  This paragraph shall terminate on the earlier of (a) the initial funding under the Facilities and (b) the first anniversary of the date hereof.
You acknowledge that the Commitment Parties or their affiliates may be providing financing or other services to parties whose interests may conflict with yours.  The Commitment Parties agree that they will not furnish confidential information obtained from you to any of their other customers and will treat confidential information relating to the Companies and their respective affiliates with the same degree of care as they treat their own confidential information.  The Commitment Parties further advise you that they will not make available to you confidential information that they have obtained or may obtain from any other customer. 

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In connection with all aspects of each transaction contemplated by this Commitment Letter, you acknowledge and agree, and acknowledge your affiliates’ understanding, that (i) the Facilities and any related arranging or other services described in this Commitment Letter is an arm’s-length commercial transaction between you and your affiliates, on the one hand, and the Commitment Parties, on the other hand, (ii) the Commitment Parties have not provided any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby and you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate, (iii) you are capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby, (iv) in connection with each transaction contemplated hereby and the process leading to such transaction, each of the Commitment Parties has been, is, and will be acting solely as a principal and has not been, is not, and will not be acting as an advisor, agent or fiduciary, for you or any of your affiliates, stockholders, creditors or employees or any other party, (v) the Commitment Parties have not assumed and will not assume an advisory, agency or fiduciary responsibility in your or your affiliates’ favor with respect to any of the transactions contemplated hereby or the process leading thereto (irrespective of whether any of the Commitment Parties has advised or is currently advising you or your affiliates on other matters) and the Commitment Parties have no obligation to you or your affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth in this Commitment Letter and (vi) the Commitment Parties and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from yours and those of your affiliates, and the Commitment Parties have no obligation to disclose any of such interests to you or your affiliates.  To the fullest extent permitted by law, you hereby waive and release any claims that you may have against the Commitment Parties with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated by this Commitment Letter.
The Commitment Parties hereby notify you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “U.S.A. Patriot Act”), each of them is required to obtain, verify and record information that identifies you and the Guarantors, which information includes the name and address of such person and other information that will allow the Commitment Parties, as applicable, to identify such person in accordance with the U.S.A. Patriot Act.
7.    Survival of Obligations.  The provisions of Sections 2, 3, 4, 6 (except as provided in Section 6) and 8 shall remain in full force and effect regardless of whether any Credit Documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or any commitment or undertaking of the Commitment Parties hereunder, except that the provisions of paragraphs 2 and 3 shall not survive if the commitments and undertakings of the Commitment Parties are terminated prior to the effectiveness of the Facilities.
8.    Miscellaneous.  This Commitment Letter and the Fee Letter may be executed in multiple counterparts and by different parties hereto in separate counterparts, all of which, taken together, shall constitute an original.  Delivery of an executed counterpart of a signature page to this Commitment Letter or the Fee Letter by telecopier, facsimile or other electronic transmission (e.g., a “pdf” or “tiff”) shall be effective as delivery of a manually executed counterpart thereof.  Headings are for convenience of reference only and shall not affect the construction of, or be taken into consideration when interpreting, this Commitment Letter or the Fee Letter.
This Commitment Letter and the Fee Letter shall be governed by, and construed in accordance with, the laws of the State of New York.  Each party hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Commitment Letter, the Fee Letter, the Transaction and the 

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other transactions contemplated hereby and thereby or the actions of the Commitment Parties in the negotiation, performance or enforcement hereof.  Each party hereto hereby irrevocably and unconditionally submits to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in the Borough of Manhattan in New York City in respect of any suit, action or proceeding arising out of or relating to the provisions of this Commitment Letter, the Fee Letter, the Transaction and the other transactions contemplated hereby and thereby and irrevocably agrees that all claims in respect of any such suit, action or proceeding shall be heard and determined in any such court.  The parties hereto agree that service of any process, summons, notice or document by registered mail addressed to you shall be effective service of process against you for any suit, action or proceeding relating to any such dispute.  Each party hereto waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceedings brought in any such court, and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  A final judgment in any such suit, action or proceeding brought in any such court may be enforced in any other courts to whose jurisdiction you are or may be subject by suit upon judgment.
This Commitment Letter, together with the Fee Letter, embodies the entire agreement and understanding among the parties hereto and your affiliates with respect to the Facilities and supersedes all prior agreements and understandings relating to the subject matter hereof.  No party has been authorized by the Commitment Parties to make any oral or written statements that are inconsistent with this Commitment Letter.  Neither this Commitment Letter (including the attachments hereto) nor the Fee Letter may be amended or any term or provision hereof or thereof waived or modified except by an instrument in writing signed by each of the parties hereto.
This Commitment Letter may not be assigned by you without our prior written consent (and any purported assignment without such consent will be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto (and the Indemnified Parties).  
Please indicate your acceptance of the terms of the Facilities set forth in this Commitment Letter and the Fee Letter by returning to us executed counterparts of this Commitment Letter and the Fee Letter not later than 11:59 p.m. (New York City time) on October 18, 2015, whereupon the undertakings of the parties with respect to the Facilities shall become effective to the extent and in the manner provided hereby.  This offer shall terminate with respect to the Facilities if not so accepted by you at or prior to that time.  Thereafter, all accepted commitments and undertakings of the Commitment Parties hereunder will expire on the earliest of (a) 11:59 p.m. (New York City time) on the End Date (as defined in the Acquisition Agreement as in effect on the date hereof), (b) the closing of the Acquisition without the use of the Facilities and (c) the termination of the Acquisition Agreement in accordance with its terms.
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We are pleased to have the opportunity to work with you in connection with this important financing.
Very truly yours,
BANK OF AMERICA, N.A.
		
	By:
	/s/ Anand Melvani 
Name: Anand Melvani 
Title: Managing Director

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
		
	By:
	/s/ Anand Melvani 

Name: Anand Melvani 
Title: Managing Director

SUNTRUST BANK
		
	By:
	/s/ Michael B. Maguire 
Name: Michael B. Maguire 
Title: Managing Director

SUNTRUST ROBINSON HUMPHREY, INC.
		
	By:
	/s/ Timothy M. O’Leary 

Name: Timothy M. O’Leary 
Title: Managing Director
MUFG UNION BANK, N.A.
		
	By:
	/s/ Frank Brown 
Name: Frank Brown 
Title: Managing Director

Signature Page to Commitment Letter

MUFG UNION BANK, N.A.
		
	By:
	/s/ Anvar Hodjaev 
Name: Anvar Hodjaev 
Title: Director

Signature Page to Commitment Letter

Accepted and agreed to as of the date 
first written above:
WEX INC.
		
	By:
	/s/ Nicola Morris 
Name: Nicola Morris 
Title: Senior Vice President

Signature Page to Commitment Letter

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