Document:

NON-EXCLUSIVE LICENSE AGREEMENT DATED 12/22/03

 Exhibit 10.27 
  
 COLEY PHARMACEUTICAL GROUP, INC. 
  
 and 
  
 CHIRON CORPORATION 
  

  
 NON-EXCLUSIVE LICENSE AGREEMENT 
  

  
 Dated December 22, 2003 
  
 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 

 Table of Contents 
  

							
	 1.
	  	DEFINITIONS	  	1
	 	  	1.1	  	 General
	  	1
	 2.
	  	LICENSE GRANTS	  	11
	 	  	2.1	  	 License Grant to Licensee
	  	11
	 	  	2.2	  	 Limitations
	  	11
	 	  	2.3	  	 Sublicenses
	  	11
	 	  	2.4	  	 License Grant to Coley
	  	11
	 3.
	  	PAYMENTS AND ROYALTIES	  	12
	 	  	3.1	  	 Up-Front Payment
	  	12
	 	  	3.2	  	 Development Milestone Payments
	  	12
	 	  	3.3	  	 Minimum Annual Payments
	  	13
	 	  	3.4	  	 Royalty Payments
	  	13
	 	  	3.5	  	 Withholding; Payments
	  	15
	 	  	3.6	  	 Late Payments
	  	15
	 	  	3.7	  	 Third Party Licenses
	  	15
	 	  	3.8	  	 Audit of Records
	  	15
	 4.
	  	DEVELOPMENT; DILIGENCE OBLIGATIONS; ADVISORY COMMITTEE	  	16
	 	  	4.1	  	 Diligence Generally
	  	16
	 	  	4.2	  	 Development and Commercialization Plans
	  	16
	 	  	4.3	  	 Collaboration Manager
	  	17
	 	  	4.4	  	 Regulatory Approvals
	  	17
	 	  	4.5	  	 Cooperation by Coley
	  	18
	 5.
	  	TRANSFER AND SUPPLY OF MATERIALS; MARKING	  	18
	 	  	5.1	  	 Transfer of Materials
	  	18
	 	  	5.2	  	 Manufacture of Immune Modulator; Regulatory Filings and Manufacturing Information
	  	19
	 	  	5.3	  	 Marking
	  	22
	 6.
	  	TERM AND TERMINATION	  	22
	 	  	6.1	  	 Term
	  	22
	 	  	6.2	  	 Termination
	  	22
	 	  	6.3	  	 Effects of Expiration or Termination
	  	23
	 7.
	  	CONFIDENTIALITY	  	24
	 	  	7.1	  	 Nondisclosure Obligation
	  	24
	 	  	7.2	  	 Permitted Disclosures
	  	25
	 	  	7.3	  	 Partial Disclosures
	  	25
	 	  	7.4	  	 Publishing
	  	25
	 	  	7.5	  	 Publicity
	  	26
	 8.
	  	MAINTENANCE AND ENFORCEMENT OF PATENT RIGHTS	  	26
	 	  	8.1	  	 Responsibility for Patent Rights
	  	26
	 	  	8.2	  	 Infringement by Third Parties
	  	26
	 	  	8.3	  	 Settlements
	  	27
	 	  	8.4	  	 Infringement Claims
	  	27

  
 Portions of this Exhibit were
omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  

 i 

							
	 	  	8.5	  	 Recoveries and Damages
	  	27
	 	  	8.6	  	 Subject to Iowa Agreement
	  	28
	 9.
	  	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PARTIES	  	28
	 	  	9.1	  	 Representations and Warranties of Each Party to the Other
	  	28
	 	  	9.2	  	 Covenants of Licensee
	  	28
	 	  	9.3	  	 Representations and Warranties of Coley
	  	29
	 	  	9.4	  	 Bayh-Dole
	  	29
	 10.
	  	INDEMNIFICATION AND LIMITATION OF LIABILITY	  	29
	 	  	10.1	  	 Indemnification by Licensee
	  	29
	 	  	10.2	  	 Indemnification by Coley
	  	30
	 	  	10.3	  	 Indemnification Procedure
	  	30
	 	  	10.4	  	 Settlements
	  	31
	 	  	10.5	  	 Limitation of Liability
	  	31
	 	  	10.6	  	 Insurance
	  	31
	 	  	10.7	  	 Warranty Disclaimer
	  	32
	 11.
	  	REPORTING OF SAFETY AND OTHER DATA	  	32
	 	  	11.1	  	 Safety Data
	  	32
	 	  	11.2	  	 Preclinical and Clinical Data
	  	32
	 	  	11.3	  	 Coley Reports
	  	33
	 12.
	  	MISCELLANEOUS	  	33
	 	  	12.1	  	 Assignment
	  	33
	 	  	12.2	  	 Governing Law
	  	33
	 	  	12.3	  	 Arbitration
	  	33
	 	  	12.4	  	 Injunctive Relief and Jurisdiction
	  	34
	 	  	12.5	  	 Waiver
	  	34
	 	  	12.6	  	 Independent Relationship
	  	34
	 	  	12.7	  	 Export Control
	  	34
	 	  	12.8	  	 Entire Agreement; Amendment
	  	35
	 	  	12.9	  	 Notices
	  	35
	 	  	12.10	  	 Force Majeure
	  	36
	 	  	12.11	  	 Severability
	  	36
	 	  	12.12	  	 Recording
	  	36
	 	  	12.13	  	 Further Actions
	  	37
	 	  	12.14	  	 Counterparts
	  	37
	 	  	12.15	  	 Iowa Agreement
	  	37
				
	 Exhibit
	  	A	  	 Iowa Agreement
	  	 
	 Exhibit
	  	B	  	 Licensee’s Existing IP
	  	 
	 Exhibit
	  	C	  	 Patent Rights
	  	 
	 Exhibit
	  	D	  	 Form of Press Release
	  	 

  
 Portions of this Exhibit were
omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  

 ii 

 NON-EXCLUSIVE LICENSE AGREEMENT 
  
 This NON-EXCLUSIVE LICENSE AGREEMENT (this “Agreement”), effective as of December 22, 2003 (the “Effective
Date”), is between Coley Pharmaceutical Group, Inc., a Delaware corporation located at 93 Worcester Street, Suite 101, Wellesley, Massachusetts 02481 (“Coley”), and Chiron Corporation., a Delaware corporation having a
principal place of business at 4560 Horton Street, Emeryville, California 94608 (“Licensee”) (each, a “Party” and collectively, the “Parties”). 
  
 RECITALS 
  
 WHEREAS, Coley is the owner or licensee of certain rights, title, and
interests in, and know-how related to, proprietary technologies involving immunomodulatory oligonucleotides; and 
  
 WHEREAS, Licensee and its sublicensees have developed and/or are developing or evaluating vaccines for the prevention of certain diseases in humans; and

  
 WHEREAS, Licensee desires to obtain a non-exclusive license
under the Technology (as hereinafter defined) in the Field (as hereinafter defined), and Coley desires to grant Licensee such rights and licenses; 
  
 NOW, THEREFORE, in consideration of the premises and covenants contained herein and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows: 
  

	1.	DEFINITIONS 

  
 1.1 General. Unless otherwise specified, references in this Agreement to any section are references to such section of this Agreement and, unless
otherwise specified, references in any section or definition to any clause are references to such clause of such section or definition. Terms for which meanings are defined in this Agreement shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may permit or require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The term “including” means including, without limiting the generality of any description
preceding such term. Each reference herein to any Person shall include a reference to such Person’s successors and permitted assigns. Unless otherwise specified, references to any agreement, instrument or other document in this Agreement refer
to such agreement, instrument or other document as originally executed or, if subsequently varied, replaced or supplemented from time to time, as so varied, replaced or supplemented and in effect at the relevant time of reference thereto. References
to “dollars” or “$” are to United States dollars. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 1.2 Defined Terms. As used in this agreement, the following terms shall have the following
respective meanings: 
  
 (a)
“Affiliate” shall mean any individual or entity directly or indirectly controlling or controlled by or under common control with a Party to this Agreement. For purposes of this definition, the term “control” means (i)
direct or indirect ownership of more than fifty percent (50%) of the voting interest in the entity in question, or more than fifty percent (50%) interest in the income of the entity in question; provided, however, that if local law
requires a minimum percentage of local ownership, control will be established by direct or indirect beneficial ownership of one hundred percent (100%) of the maximum ownership percentage that may, under such local law, be owned by foreign interests;
or (ii) possession, directly or indirectly, of the power to direct or cause the direction of management or policies of the entity in question (whether through ownership of securities or other ownership interests, by contract or otherwise).
Notwithstanding the foregoing, “Affiliate” shall not include, in the case of Licensee, Novartis A.G. or any Affiliate of Novartis A.G. (other than Licensee and any of its direct or indirect subsidiaries), so long as Novartis A.G. is
precluded from electing or has not exercised its rights to elect, a majority of the board of directors of Licensee, in accordance with the terms of the Governance Agreement dated as of November 20, 1994, among Ciba-Geigy Limited, Ciba-Geigy
Corporation and Licensee. 
  
 (b)
“Agreement” shall have the meaning set forth in the first paragraph of this Agreement. 
  
 (c) “Antigen” shall mean any and all compounds or compositions or components or formulation of components, other than
Immune Modulator, used to induce, augment, fine-tune or enhance an antigen-specific active response of Licensed Product above the one already induced, augmented or enhanced by Immune Modulator. 
  
 (d) “BLA” shall mean a biologics license
application or similar application filed with the FDA or other appropriate Regulatory Authority to obtain marketing approval for Licensed Product (or a “common technical document” filed in lieu thereof to obtain such approval). 

 
 (e) “Claim” shall mean any claim,
demand, action or other proceedings (including for personal injury, death or disability) by a third party. 
  
 (f) “Coley” shall have the meaning set forth in the first paragraph of this Agreement. 
  
 (g) “Coley Indemnified Party” shall have
the meaning set forth in Section 10.1. 
  
 (h)
“Collaboration Manager” shall have the meaning set forth in Section 4.3. 
  
 (i) “Commercially Reasonable Efforts” shall have the meaning set forth in Section 4.1. 
  
 (j) “Commercialization Plan” shall have the
meaning set forth in Section 4.2(a). 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 2 

 (k) “Confidential Information” shall mean any scientific, technical,
commercial, marketing or other business information furnished, directly or indirectly (including in connection with meetings with Regulatory Authorities or third parties), and whether in writing, orally or otherwise, by one Party (the
“Disclosing Party”) to the other Party (the “Receiving Party”) pursuant to or in connection with this Agreement or the Prior Agreements (including the negotiation of this Agreement and the Prior Agreements) or the
activities or transactions contemplated hereby or thereby. Such Confidential Information may include the identity, nucleotide sequence, or structure of an immunomodulatory oligonucleotide (including the Immune Modulator), the applicability or use of
any immunomodulatory oligonucleotide (including the Immune Modulator) for a particular indication, information relating to the mechanism of immune stimulation for a particular immunomodulatory oligonucleotide (including the Immune Modulator),
information about the composition of, or modifications to the nucleotides or phosphate backbone, as well as any product specifications, trade secrets, know-how (including Know-How), inventions, intellectual property, technical data or
specifications, discovery methods, screening assays or other testing methods, business or financial information, research and development activities, royalty reports, and customer and supplier information. 
  
 (l) “Control” shall mean, with respect to
any intellectual property right, possession of the right (and only to the extent of the right), whether directly or indirectly and whether by ownership, license or otherwise, to assign or grant a license, sublicense or other right to or under such
intellectual property right without violating the terms of any agreement or other arrangement with any third party. 
  
 (m) “Data” shall mean all data and other information included or referenced in a Submission. 
  
 (n) “Development Milestone” shall have the
meaning set forth in Section 3.2. 
  
 (o)
“Development Milestone Payment” shall have the meaning set forth in Section 3.2. 
  
 (p) “Development Plan” shall have the meaning set forth in Section 4.2(a). 
  
 (q) “Disclosing Party” shall have the
meaning set forth in Section 1.2(k). 
  
 (r)
“Donated Licensed Product” shall have the meaning set forth in Section 1.2(mm). 
  
 (s) “Effective Date” shall have the meaning set forth in the first paragraph of this Agreement. 
  
 (t) “EU Associated Countries” shall mean
the territories and countries where Articles 81(1) and 82 of the EU Treaty apply or competition provisions similar thereto apply pursuant to bilateral or multilateral agreements between the European Union and such territories and countries.

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 3 

 (u) “European Economic Area” or “EEA” shall mean an
area comprising the EU Member States, Norway, Liechtenstein and Iceland. 
  
 (v) “FDA” shall mean the United States Food and Drug Administration or any successor entity. 
  
 (w) “Field” shall mean the use of Immune Modulator co-formulated with one or more Antigens as a vaccine that is labeled
solely for use as a prophylactic administered via a Specified Delivery Method to prevent one or more Specified Diseases in humans. The Field specifically excludes labeling any product containing Immune Modulator for the treatment or prevention of
any diseases, indications or disorders other than a Specified Disease in humans, but does not exclude the off-label use of products containing the Immune Modulator by medical professionals or other end users. 
  
 (x) “First Commercial Sale” shall mean,
with respect to a particular Licensed Product and a particular country in the Territory, the first transaction by Licensee or a Sublicensee that transfers to an arm’s-length third party purchaser, for value, title and right of physical
possession of the Licensed Product for use in the Field in the country after such Licensed Product has been granted Regulatory Approval for use in the Field by the competent Regulatory Authorities in such country. Notwithstanding the provisions of
the preceding sentence, transfer of possession and title to an Affiliate or a Sublicensee shall not constitute a First Commercial Sale unless the Affiliate or Sublicensee is an end user of the Licensed Product. With respect to any country of the
EEA, the First Commercial Sale of a Licensed Product in such country shall be deemed to occur on the date of the First Commercial Sale of such Licensed Product in any country of the EEA. 
  
 (y) “Immune Modulator” shall mean Coley’s proprietary immunomodulatory oligonucleotide
whose confidential sequence has been identified by Coley as CpG 7909. 
  
 (z) “Initiation” shall, for the purpose of Phase II Clinical Trials and Phase III Clinical Trials, mean that the following activities have been carried out for the purpose of a given phase: the
clinical lots have been released, the principal investigator has signed the clinical study protocol, the relevant regulatory authorities have approved the clinical trial protocol for such phase, and the Licensed Product has been administered to a
human patient enrolled for purposes of clinical trials in such phase. 
  
 (aa) “IND” shall mean an Investigational New Drug Application in the U.S. or any foreign equivalent document that allows the initiation of human clinical trials in any country in the Territory.

  
 (bb) “Indemnitee” shall have
the meaning set forth in Section 10.3. 
  
 (cc)
“Indemnitor” shall have the meaning set forth in Section 10.3. 
  
 (dd) “Inventions” shall mean all ideas, information, data, writings, development, processes, discoveries, improvements,
methods, modifications, reagents, compositions, formulations, materials, know-how, and other technologies (whether or not 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 4 

 
patentable or copyrightable) that (i) relate to the Immune Modulator and are derived from the use of Technology and (ii) are conceived and reduced to
practice by or on behalf of Licensee during the performance of activities under this Agreement. 
  
 (ee) “Iowa Agreement” shall mean that certain License Agreement by and between CpG ImmunoPharmaceuticals, Inc.
([predecessor to Coley]) and UIRF, dated March 31, 1997, as amended March 7, 2001, as it exists on the Effective Date and is attached hereto as Exhibit A. 
  
 (ff) “Know-How” shall mean all proprietary technical information, know-how, discoveries,
improvements, processes, formulas, data, inventions, sequences, modifications, mechanisms of action, trade secrets, instruction and other intellectual property (other than Patent Rights and the information disclosed or referenced therein) and
reagents, compositions, formulations, and materials (as well as fragments, metabolites, constituents, components, and derivatives thereof), whether or not patentable, that 
  
 (i) are necessary for the development and commercialization of Licensed Products, 
  
 (ii) relate to the Immune Modulator, or, 
  
 (iii) to the extent (but only to the extent) necessary to
permit Licensee to exercise its rights under Section 2.1, relate to manufacturing methods or processes for immunomodulatory compounds (including the Immune Modulator), discovery methods for immunomodulatory compounds (including the Immune
Modulator), and screening assays and other testing methods for immunomodulatory compounds (including the Immune Modulator), and, 
  
 in each case, that exist as of the Effective Date or arise during the Term and are owned, proprietary to, licensed by, Controlled by, or otherwise in the possession of,
Coley or its Affiliates as of the Effective Date or during the Term and are not generally known to others in the field to which such know-how pertains. Except as and to the extent necessary to permit Licensee to exercise its rights under Section
2.1, Know-How shall specifically exclude proprietary technical information, know-how, discoveries, improvements, processes, formulas, data, inventions, sequences, modifications, mechanisms of action, trade secrets, instruction and other intellectual
property and reagents, compositions, formulations, and materials relating to manufacturing methods or processes, discovery methods, and screening assays and other testing methods. 
  
 (gg) “Liability” shall have the meaning set forth in Section 10.1. 
  
 (hh) “Licensed Product” shall mean a
product labeled for use in the Field and consisting of Immune Modulator, up to a maximum dose of 2 mg per administration, co-formulated with one or more Antigens in a single vial, syringe or other suitable container. Licensed Product does not
include any combination with any drug product, vaccine or biological product labeled for any use outside the Field. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 5 

 (ii) “Licensee” shall have the meaning set forth in the first paragraph
of this Agreement. 
  
 (jj) “Licensee
Indemnified Party” shall have the meaning set forth in Section 10.2. 
  
 (kk) “Licensee’s Existing IP” shall mean all intellectual property rights that 
  
 (i) are Controlled by Licensee or its Affiliates prior to the Effective Date; 
  
 (ii) are first Controlled by Licensee or its Affiliates on
or after the Effective Date by, from or through a Person (other than Coley and its Affiliates) that does not have access to the Know-How; or 
  
 (iii) are first Controlled by Licensee or its Affiliates on or after the Effective Date pursuant to a merger, consolidation, acquisition
(whether of all the outstanding stock or all or a portion of the assets of a Person ), or similar transaction with a third party, 
  
 including that intellectual property of Licensee and its Affiliates specified on Exhibit B. 
  
 (ll) “Major Country” shall mean the United States, Canada, France, Germany, Italy, the
United Kingdom, or Japan. 
  
 (mm) “Net
Sales” shall mean the gross amount invoiced by Licensee and/or a Sublicensee on account of sales of Licensed Products to third parties in the Territory, less the total of the following deductions to the extent they are actually incurred and
not billed separately to the customer: 
  
 (i)
trade, cash, and/or quantity discounts not already reflected in the amount invoiced; 
  
 (ii) excise, sales and other consumption taxes and customs duties to the extent included in the invoice price; 
  
 (iii) freight, insurance and other transportation charges to
the extent included in the invoice price; 
  
 (iv) amounts repaid or credited by reason of rejections and defects; 
  
 (v) returns or retroactive price reductions; and 
  
 (vi) payments and rebates directly related to the sale of Licensed Products, 
  
 accrued in accordance with generally accepted accounting principles, paid or deducted pursuant to agreements (including managed care
agreements) or governmental regulations. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 6 

 Net Sales shall not include reasonable quantities of any given Licensed Product distributed by Licensee
and its Sublicensees at no charge to third parties for pre-clinical, clinical, or regulatory purposes or in connection with patient assistance programs or other charitable purposes (“Donated Licensed Products”); provided,
however, that the number of Donated Licensed Products of a particular Licensed Product shall not exceed [****] percent ([*]%) of the total units of the Licensed Product invoiced by Licensee and its Sublicensees for consideration on an
arm’s length basis during the applicable Royalty Quarter. In the event that Donated Licensed Products of a particular Licensed Product exceed [****] percent ([*]%) of the total units of the Licensed Product invoiced by Licensee and its
Sublicensees during the applicable Royalty Quarter, then Licensee shall make Royalty Payments to Coley on those Donated Licensed Products which exceed the [****] percent ([*]%) cap. Net Sales for purposes of calculating the Royalty Payments due to
Coley on the excess Donated Licensed Products shall be calculated by taking the average Net Sales price of the relevant Licensed Product invoiced during the applicable Royalty Quarter. 
  
 In the case of any sale or other disposal of a Licensed Product between or among either Licensee/Sublicensee and their
respective Affiliates for resale or Licensee and Sublicensee for resale, Net Sales shall be calculated as above by taking the average Net Sales price of the Licensed Product invoiced by the receiving Person during the applicable Royalty Quarter.
Sales between or among Licensee, Sublicensee and their respective Affiliates shall be excluded from the computation of Net Sales except where such Sublicensees or Affiliates are end users. In the case of any other sale or other disposal for value,
such as barter or counter-trade, of any Licensed Product, or part thereof, other than in an arm’s length transaction exclusively for money, Net Sales shall be calculated as above on the fair market value of the consideration given. 

 
 (nn) “Option Period” shall have the
meaning set forth in Section 5.2(b). 
  
 (oo)
“Option Right” shall have the meaning set forth in Section 5.2(b). 
  
 (pp) “Party” shall have the meaning set forth in the first paragraph of this Agreement. 
  
 (qq) “Patent Rights” shall mean 

 
 (i) all patents and patent applications, including
provisional patent applications, that relate to the Immune Modulator, 
  
 (ii) all national, regional and international patent applications filed either from such patent applications or provisional applications or from an application claiming priority from either of these, including
divisionals, continuations, continuations-in-part, provisionals, converted provisionals and continued prosecution applications, in each case that relate to the Immune Modulator, 
  
 (iii) any and all patents that have issued or in the future issue from the foregoing patent applications,
including utility models, petty patents and design patents and certificates of invention, that relate to the Immune Modulator, 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 7 

 (iv) any and all extensions or restorations by existing or future extension or
restoration mechanisms, including revalidations, reissues, re-examinations and extensions (including any supplementary protection certificates and the like) of the foregoing patents or patent applications described in clauses (i), (ii) and (iii),
and, 
  
 (v) to the extent (but only to the
extent) necessary to permit Licensee to exercise its rights under Section 2.1, patents or patent applications relating to manufacturing methods or processes for immunomodulatory compounds (including the Immune Modulator), discovery methods for
immunomodulatory compounds (including the Immune Modulator), and screening assays and other testing methods for immunomodulatory compounds (including the Immune Modulator), 
  
 in each case, owned, Controlled or licensed (other than by Licensee or its Affiliates or Sublicensees pursuant to Sections 2.4 or
5.1(c)(ii)(1) and (3)) by Coley or its Affiliates as of the Effective Date or during the Term and that exist as of the Effective Date or arise during the Term and under which Coley or its Affiliates have the right, whether directly or indirectly and
whether by ownership, license or otherwise (other than from Licensee or its Affiliates or Sublicensees pursuant to Sections 2.4 or 5.1(c)(ii)(1) and (3)), to disclose, assign, or grant licenses, sublicenses or any other right, including the Patent
Rights listed on Exhibit C, as amended from time to time in accordance with this Agreement. Except as and to the extent necessary to permit Licensee to exercise its rights under Section 2.1, the Patent Rights shall specifically exclude
patents or patent applications relating to manufacturing methods or processes, discovery methods, and screening assays and other testing methods. 
  
 (rr) “Person” shall mean an individual, sole proprietorship, partnership, limited partnership, limited liability
partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, or similar entity or organization, including a government or political subdivision, department or agency of a
government, or an academic or research institution. 
  
 (ss) “Phase I Clinical Trials” shall mean clinical studies in subjects to evaluate the safety and tolerance, pharmacokinetic and pharmacodynamic properties, dosing interval, and/or absorption, distribution, metabolism, and
excretion (ADME) of the candidate vaccine. 
  
 (tt) “Phase II Clinical Trials” shall mean dose-ranging trials to evaluate efficacy and/or immunogenicity and safety in the targeted patient population and/or to define the optimal dosing regimen. 
  
 (uu)“Phase III Clinical Trials” shall mean
short-term and/or long-term controlled trials to confirm the efficacy and/or immunogenicity and safety of the drug in larger, targeted patient populations. 
  
 (vv)“Pre-Commercial Manufacture Agreement” shall have the meaning set forth in Section 5.2(a). 
  
 (ww) “Prior Agreements” shall mean that
certain Material Transfer and Evaluation Agreement, effective February 11, 2002, between the Parties, as amended by 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 8 

 
Amendment #1 thereto, that certain Confidentiality Agreement, dated October 1, 2001, between the Parties, and that certain Mutual Confidentiality Agreement,
dated March 22, 2000, between the Parties, as amended June 26, 2001. 
  
 (xx) “Receiving Party” shall have the meaning set forth in Section 1.2(k). 
  
 (yy) “Regulatory Approval” shall mean the marketing authorization (independent of pricing approval or reimbursement
approval) of a Licensed Product in a country in the Territory, in each case by the appropriate Regulatory Authority. 
  
 (zz) “Regulatory Authority” shall mean, with respect to each country in the Territory, the government agency or health
authority that regulates and is responsible for granting approvals for the manufacture, marketing and/or sale of pharmaceutical products in such country. 
  
 (aaa) “Royalty Payments” has the meaning set forth in Section 3.4(a). 
  
 (bbb) “Royalty Period” shall mean the
partial Royalty Quarter commencing on the date of the First Commercial Sale in any country in the Territory and every complete or partial Royalty Quarter thereafter with respect to which Licensee has the obligation to make Royalty Payments under
Section 3. 
  
 (ccc) “Royalty
Report” shall have the meaning set forth in Section 3.4(b). 
  
 (ddd) “Royalty Quarter” shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31. 
  
 (eee) “Royalty Year” shall mean each
successive period of twelve (12) months commencing on January 1 and ending on December 31. 
  
 (fff) “Specifications” shall mean the drug substance and/or product quality specifications, release test methods, and
typical batch release data relating to the Immune Modulator or, solely in the case of the use of the term in Section 5.2(c)(iii), other immunomodulatory oligonucleotides. 
  
 (ggg) “Specified Delivery Method” shall mean administration of a product by an
intramuscular or subcutaneous injection. 
  
 (hhh) “Specified Disease” shall mean [*************************************]. At any time and from time to time, and with respect to any one or more Specified Diseases, Licensee may provide notice that it wishes to delete
one or more Specified Diseases from this definition. Any such notice shall be accompanied by Licensee’s written certification that 
  
 (i) Licensee has in good faith determined that there is no reasonable basis, for either scientific or commercial reasons, for Licensee to
commercialize a Licensed Product for a particular Specified Disease or 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 9 

 (ii) Licensee is no longer working with respect to a particular Specified Disease in the
Field. 
  
 Effective sixty (60) days following any notice delivered by Licensee
pursuant to the preceding sentence, this definition shall, without further action on the part of either Party, be for all purposes deemed to be amended by deleting therefrom the Specified Disease(s) specified in Licensee’s notice. 

 
 (iii) “Sublicensee” shall mean any
Person who receives a sublicense of the license rights granted to Licensee pursuant to and in accordance with this Agreement. 
  
 (jjj) “Submission” shall mean the acceptance for filing by the relevant Regulatory Authority of an application to obtain
Regulatory Approval. 
  
 (kkk)
“Technology” shall mean the Patent Rights and Know-How. 
  
 (lll) “Term” shall have the meaning set forth in Section 6.1. 
  
 (mmm) “Territory” shall mean all the countries of the world. 
  
 (nnn) “UIRF” means the University of Iowa
Research Foundation. 
  
 (ooo) “Valid
Claim” shall mean any claim of a pending patent application which has not been abandoned or finally rejected without the right of appeal, or any claim from an issued and unexpired patent included within the Patent Rights which has not been
revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or
otherwise. Notwithstanding the foregoing, if a claim of a pending patent application in a specific country has not issued as a claim of an issued patent within ten (10) years after the first filing date of the first application in the country from
which such pending claim claims priority, such pending claim shall cease to be a Valid Claim for purposes of this Agreement unless and until such claim becomes an issued claim of an issued patent. 
  
 (ppp) “Valid Patent Claim” shall mean any
claim from an issued and unexpired patent included within the Patent Rights which has not been revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, and which has not been
disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 
  
 (qqq) “Withholding Taxes” shall have the meaning set forth in Section 3.5(a). 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 10 

	2.	LICENSE GRANTS. 

  
 2.1 License Grant to Licensee. Subject to the terms of this Agreement, Coley hereby grants to Licensee, and Licensee hereby accepts, during the
Term, a non-exclusive, royalty-bearing license, with the right to grant sublicenses solely as provided in Section 2.3, under the Technology, and to use the Immune Modulator in connection therewith, in each case to make, have made, use, have used,
sell, have sold, offer for sale, and import Licensed Products in the Field in the Territory. 
  
 2.2 Limitations. Except as specifically allowed in Section 2.1 above, Licensee shall have no rights under this Agreement to use the Immune Modulator for any purpose. No other rights, express or implied, are
granted to Licensee except as expressly granted pursuant to this Agreement. 
  
 2.3 Sublicenses. Licensee shall not sublicense any rights it obtains herein to any Person other than an Affiliate of Licensee unless Licensee has first obtained the written consent of Coley to such sublicense,
such consent not to be unreasonably withheld. The sublicensing rights granted to Licensee hereunder shall be limited to Licensed Products developed or sold by the Licensee. Licensee shall not grant Sublicensees rights to develop or sell Licensed
Products that are not/have not been developed or sold by Licensee. Each sublicense agreement with a Sublicensee shall be subject and subordinate to this Agreement and shall contain provisions substantially similar to the provisions of this
Agreement. Sublicensees that are Affiliates of Licensee may further sublicense any rights they obtain herein to other Affiliates of Licensee. No Sublicensee may further sublicense any rights it obtains hereunder to any Person that is not an
Affiliate of Licensee without first obtaining the written consent of Coley to such further sublicense. In the event of early termination of this Agreement, any sublicense agreement with any Sublicensee shall provide for the termination of the
sublicense, or the conversion to a license directly between such Sublicensee and Coley on substantially the same terms as the sublicense agreement, at the option of the Sublicensee; provided, however, that such Sublicensee is in good
standing under the sublicense agreement; and provided, further, that, in no event shall Coley have greater obligations to such Sublicensee than it has to Licensee hereunder. 
  
 2.4 License Grant to Coley. Licensee shall grant, and hereby grants, to Coley and its Affiliates a non-exclusive,
royalty-free, perpetual, fully paid-up license, with the right to grant sublicenses, to practice the Inventions and any intellectual property rights therein to the extent necessary (but only to the extent necessary) for Coley to practice the
Technology outside the Field; that is, if in the absence of such a license from Licensee, Coley would be unable to practice the Technology outside the Field. 
  
 2.5 Provision of Know-How and Cooperation. Coley shall provide Licensee and its Sublicensees with access to all Know-How and all other information
owned or Controlled by or otherwise in the possession of Coley or its Affiliates that is necessary or useful for purposes of the development, regulatory approval, and commercialization of Licensed Products in the Territory and all other activities
of Licensee contemplated by this Section 2. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 11 

	3.	PAYMENTS AND ROYALTIES. 

  
 3.1 Up-Front Payment. In partial consideration of Coley’s investment in the Technology and the non-exclusive license granted to Licensee
pursuant to Section 2.1, Licensee shall make a non-refundable, up-front license fee payment of [***********] dollars ($[*********], Such up-front license fee shall be payable by Licensee within twenty (20) days following its receipt of Coley’s
invoice therefor. 
  
 3.2 Development Milestone Payments.
Licensee shall pay Coley the amount corresponding to each development milestone achieved by Licensee or its Affiliates or Sublicensees hereunder (the “Development Milestones”) set forth below (each, a “Development Milestone
Payment”) . Each Development Milestone Payment shall be payable by Licensee within twenty (20) days following its receipt of Coley’s invoice therefor. If any Development Milestone is reached without achieving a preceding Development
Milestone, then the amount which would have been payable on achievement of the preceding Development Milestone shall be payable upon achievement of the following Development Milestone. For example, if a Phase III Clinical Trial is initiated for a
Licensed Product without initiating a Phase II Clinical Trial, then a total of $[*******] will be due upon the initiation of the Phase III Clinical Trial. Except as otherwise expressly provided herein, each Development Milestone Payment shall be
payable only once for a Licensed Product regardless of the number of INDs filed, Phase II Clinical Trials or Phase III Clinical Trials conducted, Submissions made, or Regulatory Approvals obtained in a given country, the number of countries in which
Development Milestones are achieved, or the number of improvements or follow-on Licensed Products that are derived from such Licensed Products. In the event that Licensee or its Affiliates or Sublicensees discontinues the development or
commercialization of a Licensed Product for the prevention of a Specified Disease in favor of another Licensed Product for the prevention of the same Specified Disease, then any Development Milestone Payments made with respect to the first Licensed
Product shall be credited against any Development Milestone Payments otherwise payable with respect to the subsequent Licensed Product. In the event that Licensee develops a Licensed Product that contains Antigens for two or more of the three
Specified Diseases in the Field in a single vaccine, Development Milestones will be paid for each such Specified Disease. 
  

							
	 Development Milestone Payments

	  	For the First Licensed
Product for Each
Specified Disease (i.e.,
********************)

	  	Each Additional Licensed
Product for a Specified
Disease after the First
Licensed Product for the
Specified Disease

	 Filing of an IND or equivalent
	  	$	[*******]	  	 	 
	 Initiation of Phase II Clinical Trial
	  	$	[*******]	  	 	 
	 Initiation of Phase III Clinical Trial
	  	$	[*******]	  	 	 
	 Regulatory Submission-US
	  	$	[*******]	  	$	[*********]
	 Submission in the first next Major Country
	  	$	[*******]	  	$	[*******]
	 Regulatory Approval - US
	  	$	[*********]	  	$	[*********]
	 Regulatory Approval in the first next Major Country
	  	$	[*********]	  	$	[*********]

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 12 

 3.3 Minimum Annual Payments. Licensee shall make the following minimum annual payments to Coley:

  
 (a) on the first anniversary of the Effective
Date, [**************] dollars ($[******]); 
  
 (b) on the second anniversary of the Effective Date, [*******************] dollars ($[*******]); and 
  
 (c) on the third anniversary of the Effective Date and each succeeding anniversary of the Effective Date that occurs prior to the
termination of the Royalty Period, [*************************] dollars ($[*******]). 
  
 Each such payment shall be payable by Licensee within twenty (20) days of its receipt of Coley’s invoice therefor and shall be fully creditable against any Development Milestone Payments or Royalty Payments falling due to Coley during
the two years following the date on which the payment is made. 
  
 3.4 Royalty Payments. 
  
 (a)
Royalty Payments Due. Licensee shall pay to Coley royalty payments on annual Net Sales of each Licensed Product by Licensee and Sublicensees in the amounts set forth below (“Royalty Payments”): 
  
 (i) With respect to Net Sales of the Licensed Product made
in a particular country during the period in which the Licensed Product is covered by a Valid Patent Claim in such country, the Licensee shall pay Coley a royalty of [*********************] percent ([***]%) of such Net Sales. 
  
 (ii) With respect to Net Sales of the Licensed Product made
in a particular country during the period in which the Licensed Product is covered by a Valid Claim but is not covered by a Valid Patent Claim in such country, the Licensee shall pay Coley 
  
 (1) a royalty of {****************] percent ([***]%) of
such Net Sales made prior to the fifth anniversary of the Effective Date and 
  
 (2) (A) a royalty of [*******************] percent ([***]%) of such Net Sales made on or after the fifth anniversary of the Effective Date plus, (B) in the event (but only in the event) the Licensed Product should
come to be covered by a Valid Patent Claim in the country on or after the fifth anniversary of the Effective Date but prior to the tenth anniversary of the Effective Date, an additional royalty equal to the difference between (x) the royalty that
would have been payable under Section 3.4(a)(i) with respect to Net Sales of the Licensed Product in the country if such Licensed Product had been covered by a Valid Patent Claim in the country beginning on the fifth anniversary of the Effective
Date and continuing until the date the Licensed Product came actually to be covered by a Valid Patent Claim in the country and (y) the royalty actually paid with respect to Net Sales of the Licensed Product in the country during the period beginning
on the fifth anniversary of the Effective Date and continuing 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 13 

 
until the date the Licensed Product came actually to be covered by a Valid Patent Claim in the country. 
  
 Amounts payable pursuant to clause (2)(B) of this Section 3.4(a)(ii) shall be paid by
Licensee to Coley within sixty (60) days following the end of the Royalty Quarter during which Coley gives notice to Licensee that the Licensed Product has come to be covered by a Valid Patent Claim in the country. 
  
 (iii) With respect to Net Sales of the Licensed Product made
in a particular country during the period in which the Licensed Product is not covered by a Valid Claim in such country, the Licensee shall pay Coley a royalty of [*******************] percent ([***]%) of such Net Sales. 
  
 The Royalty Payment due with respect to the sale of a specific Licensed Product under this
Section 3.4(a) shall be determined on the basis of the country in which the Licensed Product is sold, not the country in which the Licensed Product is manufactured. In any event, only one (1) Royalty Payment shall be due under this Section 3.4(a)
per Licensed Product sold. Except as and to the extent contemplated by Section 3.7, Royalty Payments shall not be subject to any offsets or credits for royalties or payments made to third parties by Licensee for third parties’ technologies
which are utilized or incorporated into the Licensed Product. 
  
 (b) Tender of Royalty Payments and Royalty Reports. Within thirty (30) days after the conclusion of each Royalty Quarter, Licensee shall, except as otherwise contemplated by Section 3.4(a)(ii), tender payment
of any Royalty Payments due under this Agreement and shall concurrently deliver to Coley a report on the Net Sales activity of Licensee and Sublicensees during such Royalty Quarter (the “Royalty Report”). If no Royalty Payment is due, the
Royalty Report shall so state. All such Royalty Reports shall be considered Confidential Information of both Parties under this Agreement. Royalty Reports shall contain at least the following information: 
  
 (i) Net Sales of any Licensed Products sold by Licensee and
Sublicensees on a country-by-country and Licensed Product-by-Licensed Product basis (including number of units sold), during the applicable Royalty Quarter; 
  
 (ii) total Royalty Payments due with respect to Net Sales of each Licensed Product in each country; and 
  
 (iii) the total number of Donated Licensed Products on a
Licensed Product-by-Licensed Product basis during the applicable Royalty Quarter, and the nature of the recipients of all such Donated Licensed Products. 
  
 (c) Period During Which Royalties Are Payable. Licensee’s Royalty Payment obligations under this Section 3.4 shall become
effective on a country-by-country and Licensed Product-by-Licensed Product basis upon the First Commercial Sale of a particular Licensed Product in a particular country in the Territory and continuing thereafter with respect to such country and such
Licensed Product until the later to occur of (i) the expiration or termination of the last Valid Claim of a Patent Right covering such Licensed Product in such country or (ii) ten 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 14 

 
(10) years from the First Commercial Sale of the Licensed Product in such country. Upon expiration of the period during which Licensee is obligated to make
Royalty Payments with respect to a specific Licensed Product in specific country in the Territory, the rights granted to Licensee pursuant to Section 2.1 with respect to such Licensed Product in such country shall become perpetual, irrevocable,
fully paid-up and royalty-free. 
  
 3.5 Withholding;
Payments. 
  
 (a) Any payments made by
Licensee to Coley under this Agreement shall be reduced by the amount that Licensee is required to withhold pursuant to any applicable tax law (“Withholding Taxes”). Licensee shall submit reasonable proof of payment of the Withholding
Taxes to Coley within a reasonable period of time after such Withholding Taxes are remitted to the proper taxing authority. 
  
 (b) Any payments due under Section 3 shall be made in dollars, using a mutually acceptable method of payment. With respect to sales of a
Licensed Product invoiced in a currency other than dollars, the Net Sales and amounts due to Coley hereunder shall be expressed in the domestic currency of the Party making the sale, together with the dollar equivalent of the amount payable to
Coley, calculated using the interbank exchange rate in force on the last working day of the Royalty Quarter in which the Net Sales were made as published by the Wall Street Journal (U.S. Eastern edition). 
  
 3.6 Late Payments. Any payments due under this Section 3 that are not
made on or before the date specified under the terms of this Agreement shall bear interest, to the extent permitted by law, at a rate equal at all times to the prime rate of interest announced publicly from time to time by Citibank, N.A., plus [***]
percent ([*]%), but in no case higher than the maximum rate permitted by applicable law. 
  
 3.7 Third Party Licenses. In the event that Licensee must obtain one or more royalty-bearing licenses from one or more third parties during the Royalty Period in order for Licensee and/or Sublicensees to
practice the rights granted hereunder to the Patent Rights without infringing such third party’s rights, Licensee may offset [*****] percent ([**]%) of any such third party payments against the Royalty Payments otherwise payable to Coley
hereunder in the same or any subsequent Royalty Quarter; provided, however, that in no event shall aggregate Royalty Payments with respect to any Licensed Product be reduced by more than [*****] percent ([**]%) for any Royalty Quarter.
Offsets for any such third party royalty payments for Net Sales of a particular Licensed Product may be applied only against Royalty Payments due hereunder for the Net Sales of such Licensed Product. 
  
 3.8 Audit of Records. 
  
 (a) Licensee, its Affiliates and Sublicensees shall keep and
maintain records of sales, importations, and other dispositions of Licensed Products. The records required by this Section shall be maintained and available for inspection for a period of five (5) years following the Royalty Year to which they
pertain. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 15 

 (b) Coley shall have the right, at Coley’s expense, to examine, through an
independent certified public accounting firm reasonably acceptable to Licensee, those records of Licensee and Sublicensees as may be reasonably necessary to confirm the accuracy of the Royalty Reports. Any such examination shall be made only upon
not less than ten (10) day’s prior written notice to Licensee or Sublicensee, as the case may be, during regular business hours, and within three (3) years after the end of Royalty Period; provided, however, that such examination
shall not take place more often than once per Royalty Year and shall not cover such records for more than the preceding three (3) Royalty Years. Such accounting firm shall report to Coley only the final audited Royalty Payment amounts to be paid by
Licensee. 
  
 (c) In the event that any such
inspection shows an underreporting or an underpayment in excess of [****] percent ([*]%) for any consecutive twelve (12) month period, then Licensee shall pay the reasonable costs of such examination and in any event shall pay any additional sum,
including interest charges (at a rate equal at all times to the prime rate of interest announced publicly from time to time by Citibank, N.A., plus [***] percent ([*]%), but in no case higher than the maximum rate permitted by applicable law) on any
such additional sum shown to be due to Coley. 
  

	4.	DEVELOPMENT; DILIGENCE OBLIGATIONS; ADVISORY COMMITTEE. 

  
 4.1 Diligence Generally. Licensee shall use commercially reasonable efforts consistent with the efforts and resources normally used in good faith
and fair dealing for a product of its own discovery of similar market potential at a similar stage in its product life, taking into account the competitiveness of the market place, the proprietary position of the product, the regulatory structure
involved, the profitability of the applicable products and other relevant factors (“Commercially Reasonable Efforts”), (a) to pursue the development, commercialization, and marketing of at least one Licensed Products for each Specified
Disease in the Field in each Major Country and (b) to undertake investigations and actions required to obtain appropriate Regulatory Approval therefor. 
  
 4.2 Development and Commercialization Plans. 
  
 (a) Consistent with Section 4.1: 
  
 (i) Licensee shall prepare and provide Coley with a development plan (“Development Plan”) for each Specified Disease within the
Field. Each Development Plan shall set forth anticipated activities, plans and timelines for the development of Licensed Products targeting the relevant Specified Disease (including regulatory timelines for each Major Country). Following initial
submission, each Development Plan shall be updated by Licensee at least annually for each Specified Disease in the Field. Annual updates shall include a description of all significant activities and results since the date of the most recent
Development Plan. An initial Development Plans for each Specified Disease included in the Field shall be delivered not later than one hundred eighty (180) days prior to the date upon which Licensee in good faith anticipates Phase I Clinical Trials
will begin for the Specified Disease. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 16 

 (ii) Licensee shall provide Coley with a commercialization plan (“Commercialization
Plan”) for each Licensed Product no later than one (1) year prior to the anticipated First Commercial Sale of the Licensed Product in a Major Country. Each Commercialization Plan shall set forth projected annual Net Sales and anticipated
activities, plans and timelines for the commercialization of the relevant Licensed Product. 
  
 Each Development Plan and Commercialization Plan shall be prepared by Licensee in good faith and shall reflect Licensee’s intentions and projection as of the date of its delivery to Coley. 
  
 4.3 Collaboration Manager. Each Party shall appoint one individual who
shall serve as such Party’s primary contact with respect to this Agreement and any issues that may arise hereunder (a “Collaboration Manager”). Each Party shall at all times keep the other Party informed of the identity of the
Collaboration Manager. 
  
 4.4 Regulatory Approvals.

  
 (a) Licensee shall use Commercially
Reasonable Efforts to submit registration dossiers to the relevant Regulatory Authorities with respect to all necessary Regulatory Approvals in each Major Country. 
  
 (b) Licensee shall have the right to obtain Regulatory Approvals, which shall be held by and in the name of
Licensee, and Licensee shall own all Submissions and Data in connection therewith. All pricing, formulary and marketing approvals shall also be obtained by and in the name of Licensee, and Licensee will be the principal interface and will otherwise
handle all interactions with Regulatory Authorities concerning any Licensed Products including, to the extent legally possible, being the sole contact with such Regulatory Authorities, subject to the rights of Coley under this Section 4.4.

  
 (c) Each Party shall have full access to and
the right to reference any NDAs and/or their foreign equivalent based on Immune Modulator owned by the other Party, its Affiliates, and/or sublicensees or any third party filing such NDAs and/or their foreign equivalent on behalf of such Party, its
Affiliates, or its sublicensees; provided, however, that such rights are subject to the prior written consent of the Person owning the NDA or foreign equivalent as the case may be and any information contained therein. In the event
that a Party or its Affiliates is the owner of such NDA or foreign equivalent as the case may be or information contained therein, such Party shall not, and shall cause its Affiliates not to, unreasonably withhold or delay consent. In the event that
a third party is the owner of such NDA or foreign equivalent or information contained therein, the Parties agree to reasonably cooperate to obtain such necessary third party consents. Notwithstanding the foregoing, the rights granted to a Party to
access and reference any NDAs and/or their foreign equivalent, as contemplated herein, shall not extend to such Party’s sublicensees without the prior written consent of the Person owning the NDA or foreign equivalent, such consent to be at the
sole discretion of such owning Person. 
  
 (d) To
the extent not prohibited by law or regulation, Coley shall have right to have one (1) representative (i) attend (but not participate in) any material meetings between Licensee and any Regulatory Authority with respect to Licensed Products and (ii)
listen to (but 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 17 

 
not participate in) any material telephone conversation between Licensee and any Regulatory Authority with respect to Licensed Products that is pre-scheduled
between Licensee and the relevant Regulatory Authority. Licensee will use reasonable efforts (i) to provide Coley with as much advance notice of any such meeting or telephone call as is reasonably possible in the circumstances and, (ii) to the
extent reasonably possible, to provide Coley, at least five (5) business days before any such meeting, with copies of all documents, correspondence and other materials which are relevant to the matters to be addressed at any such meeting or in any
such telephone call (it being understood that in no event will the provisions of clause (i) or (ii) of this sentence require Licensee to delay any meeting or telephone call with a Regulatory Authority). Licensee will also provide Coley with access
to all exchanges of material correspondence related to activities conducted pursuant to this Agreement with any Regulatory Authority. Notwithstanding the foregoing, Licensee will have sole discretion as to the regulatory strategy and decision-making
for any Licensed Product. 
  
 (e) Licensee shall
have the sole right to obtain all pricing and reimbursement approvals in all countries in the Territory in which Licensed Products shall be sold. 
  
 4.5 Cooperation by Coley. Coley shall, upon request by Licensee, cooperate with Licensee in all reasonable respects with regard to Licensee’s
activities relating to the obtaining of all necessary Regulatory Approvals for Licensed Products. 
  

	5.	TRANSFER AND SUPPLY OF MATERIALS; MARKING. 

  
 5.1 Transfer of Materials.  
  
 (a) Immune Modulator is Proprietary. Licensee acknowledges and agrees, and shall cause its Sublicensees to acknowledge and agree,
that, subject always to Licensee’s Existing IP and without in any way compromising, limiting, qualifying or otherwise restricting the rights of Licensee and its Affiliates therein and thereto or with respect to any Invention, as between the
Parties, (i) the Immune Modulator is proprietary to and owned by Coley, (ii) it has no ownership rights in the Immune Modulator, and (iii) the Immune Modulator may be the subject of one or more claims in the Patent Rights. 
  
 (b) Use and Transfer. Licensee acknowledges and
agrees, and shall cause its Sublicensees to acknowledge and agree, that it shall not at any time prior to the earlier of the expiration of the Term and such time as the Immune Modulator is not covered by a Valid Claim in a particular country:

  
 (i) use Immune Modulator for any purpose
other than the purposes as set forth in this Agreement in such country; 
  
 (ii) except as otherwise contemplated by this Agreement, distribute, transfer, or provide access to Immune Modulator to any third party in such country; 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 18 

 (iii) subject to Licensee’s Existing IP, alter or in any way modify any DNA sequence
in Immune Modulator in such country; provided, however, that this clause (iii) shall not in any way limit the right of Licensee, its Affiliates and Licensee’s and its Affiliates’ sublicensees to use or exploit Licensee’s
Existing IP or in any way compromise, limit, qualify or otherwise restrict the rights of Licensee and its Affiliates in and to Licensee’s Existing IP; or 
  

(iv) seek to obtain intellectual property protection for the Immune Modulator in such country. 
  
 (c) Remedies. In the event Licensee and its
Affiliates (or any Sublicensee as the case may be) at any time fail to comply with the restrictions set forth in Section 5.1(b), in addition to any other remedies Coley may have at law or in equity, (i) in those countries other than the countries of
the EEA and the EC Associated Countries, Licensee agrees to assign, and hereby assigns, to Coley (and shall require its Sublicensees to assign to Coley), all right, title, and interest in and to any and all information, data, results, discoveries,
assays, and inventions arising from such prohibited use; and (ii) in the countries of the EEA and the EC Associated Countries, Licensee shall grant, and hereby grants, to Coley (and shall require its Sublicensees to grant to Coley) (1) a
non-exclusive, royalty-free, fully paid-up, perpetual right and license (with the right to sublicense) in and to any and all information, data, results, discoveries, assays, and inventions arising from such prohibited use to the extent that the
foregoing are either not improvements to the Technology or are severable improvements to the Technology, (2) an exclusive, royalty-free, fully paid-up right and license (with the right to sublicense) in and to any and all information, data, results,
discoveries, assays, and inventions arising from such prohibited use to the extent that the foregoing are non-severable improvements to the Technology, and/or (3) a non-exclusive (with Licensee or Sublicensee as the case may be) royalty-free, fully
paid-up right and license (with the right to sublicense) to any and all information, data, results, discoveries, assays, and inventions arising from such prohibited use to the extent that the foregoing are severable improvements to the Technology
which cannot be licensed to third parties without disclosing Know-How to such third parties. 
  
 5.2 Manufacture of Immune Modulator; Regulatory Filings and Manufacturing Information  
  
 (a) Supply of Immune Modulator Prior to Commercial Sale. 
  
 (i) Coley shall provide Licensee and its Affiliates and Sublicensees with reasonable research, development
and clinical quantities of the Immune Modulator to permit Licensee and its Affiliates and Sublicensees to conduct the research, development and clinical activities contemplated hereby. Coley shall provide such Immune Modulator to Licensee and its
Affiliates or Sublicensees at Coley’s fully loaded cost, defined as the direct expense associated with the production, shipment, validation and release of such quantities of Immune Modulator supplied, plus [***********] percent ([**]%). Coley,
at its sole cost and expense, shall be responsible for any scale up activities required to comply with its obligations under the preceding sentence. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 19 

 (ii) Coley shall deliver Immune Modulator to Licensee, its Affiliate or its Sublicensee,
as the case may be, pursuant to this Section 5.2(a) within twenty (20) days of receipt of the requesting Person’s purchase order therefor. Such delivery shall be made D.D.U. (as defined in Incoterms 2000) the requesting Person’s facility
in North America or Europe, as specified in the requesting Person’s purchase order. Title and risk of loss with respect to Immune Modulator supplied by Coley pursuant to this Section 5.2(a) shall pass to the requesting Person upon delivery of
the Immune Modulator at the requesting Person’s facility in North America or Europe, as specified in the requesting Person’s purchase order. 
  
 (iii) Coley warrants that, at the time of delivery of Immune Modulator to the requesting Person pursuant to this Section 5.2(a), such
Immune Modulator (1) will have been manufactured, stored and shipped in accordance with applicable good manufacturing practices and all other applicable laws, rules or regulations; (2) have been manufactured in accordance with the Immune Modulator
Specifications; and (3) not be adulterated or misbranded under the U.S. Food, Drug and Cosmetic Act, as amended, or other applicable laws, rules or regulations. The requesting Person shall have the right to reject non-conforming Immune Modulator.

  
 (iv) Coley shall maintain, or cause to be
maintained, all records relating to the production, shipment, validation and release of Immune Modulator supplied to requesting Persons pursuant to this Section 5.2(a) that are necessary to comply with all applicable laws, rules and regulations. All
such records shall be maintained for such period as may be required by applicable law, rule or regulation and shall be available for audit by Licensee and its Affiliates or Sublicensees during regular business hours upon reasonable prior notice by
any such Person to Coley. 
  
 (b) Optional
Right to Supply Immune Modulator for Licensed Products for Commercial Sale. 
  
 (i) Without limiting Licensee’s rights otherwise granted under this Agreement, Licensee hereby grants, and will require its
Sublicensees to grant, Coley an exclusive right and option under Coley’s retained rights to manufacture and supply (or have a third party manufacture and supply on Coley’s behalf) Immune Modulator to be used in Licensed Products for
commercial sale (the “Option Right”). Coley may exercise its Option Right at any time during the period commencing on the Effective Date and ending eighteen (18) months thereafter (the “Option Period”). If Coley does not elect to
exercise the Option Right or fails to exercise the Option Right within the Option Period, then Coley shall have no right to manufacture or have a third party manufacture and supply Immune Modulator to Licensee or Sublicensee for use hereunder. If
Coley exercises its Option Right within the Option Period, Licensee and Coley will negotiate in good faith a supply agreement for Coley to supply Immune Modulator to Licensee at Coley’s fully loaded cost, defined as the direct expense
associated with the production, shipment, validation and release of Immune Modulator supplied, plus [***********] percent ([**]%). If Coley and Licensee or Sublicensee, as the case may be, are unable, despite good faith negotiations, to negotiate a
supply agreement within three (3) months of Coley’s exercise of the Option Right, then Coley shall have no right to manufacture or have a third party manufacture and supply Immune Modulator to Licensee or Sublicensee, as the case 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 20 

 
may be, for use as contemplated hereunder; provided, however, that Licensee, or Sublicensee as the case may be, shall not offer any third party
such a right on terms and conditions more favorable then those last offered to Coley without first offering such terms and conditions to Coley. 
  
 (ii) It shall be a condition to Coley’s ability to exercise the Option Right that Coley have supplied to Licensee or Sublicensee, as
the case may be, a validation package, reasonably satisfactory to Licensee or Sublicensee, as the case may be, for the manufacturing process at the final proposed manufacturing scale in the final proposed manufacturing location. The validation
package shall conform with current industry practice and detail the validation of the manufacturing process and all associated analytical methods as well as all equipment and facilities to be used during the manufacture and shall provide sufficient
information to permit Licensee or Sublicensee, as the case may be, to effectively evaluate whether the proposed manufacturing facility and associated manufacturing systems and documentation will comply with good manufacturing practices within the
pharmaceutical industry and all EEA and U.S. regulatory requirements. 
  
 (c) Manufacturing Information. In the event that Coley does not exercise its Option Right pursuant to Section 5.2(b), then upon expiration of the Option Period and thereafter until the expiration of the Term,
 
  
 (i) each Party shall share
with the other Party, and in any event Licensee shall require its Sublicensees to share with Coley (either directly or through Licensee), information regarding Immune Modulator Specifications as such Immune Modulator Specifications may be revised or
updated from time to time; 
  
 (ii)
the Parties shall consult with each other, and Licensee shall require its Sublicensees to consult with Coley and Licensee, prior to making any filing with the FDA or other Regulatory Authority related to the manufacture of Immune Modulators and/or
Licensed Products and/or making any submission for inclusion in a pharmacopoeia relating to Immune Modulators and/or Licensed Products, in each case to the extent the same could reasonably be expected to have any effect on Coley or its rights in or
to the Immune Modulator or the Technology; and  
  
 (iii) in the event that Licensee and/or any Sublicensee manufactures or has a third party manufacture Immune Modulator and uses information and/or intellectual property rights which result in a Regulatory Authority
mandating changes to any immunomodulatory oligonucleotide Specifications and, as a result, Coley is unable to obtain or manufacture reasonable quantities of Immune Modulator and/or other immunomodulatory oligonucleotides in compliance with the
mandate by such Regulatory Authority, Licensee shall, or shall cause its Sublicensees to (as the case may be), either, as determined by Licensee or Sublicensee, as the case may be, (1) provide Coley with a license on commercially reasonable terms to
the necessary information and/or intellectual property rights to manufacture the Immune Modulator and/or other immunomodulatory oligonucleotides in compliance with such immunomodulatory oligonucleotide Specifications or (2) manufacture or have
manufactured reasonable quantities of the Immune Modulator or such other immunomodulatory 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 21 

 
oligonucleotides for Coley in accordance with a supply agreement, and at a price and upon other terms and conditions, to be negotiated between the Parties.
Notwithstanding the foregoing, in the event Licensee or a Sublicensee has a third party manufacture Immune Modulator and/or other immunomodulatory oligonucleotides on its behalf, the obligations Licensee or such Sublicensee set forth in the
preceding sentence shall only apply to the extent the third party consents to such license (in the event the information and/or intellectual property is owned or controlled by such third party) and/or manufacturing obligations; provided,
however, that Licensee shall use, and shall cause its Sublicensee to use, commercially reasonable efforts to obtain such third party consent, including when negotiating future third party manufacturing agreements. 
  
 (d) During the exclusive period of the license granted to
Coley in the United States of America under the Iowa Agreement, any Licensed Product produced for sale in the United States of America shall, to the extent required by the Iowa Agreement, be manufactured substantially in the United States of America
unless a waiver of this requirement is obtained or this requirement otherwise ceases to apply. Coley shall, at Licensee’s request and expense, assist Licensee or any Sublicensee in attempting to obtain any such waiver should Licensee determine
to do so. 
  
 5.3 Marking. Licensee shall comply with the
requirements as to the marking of Licensed Products set forth in Article 7 of the Iowa Agreement. 
  

	6.	TERM AND TERMINATION. 

  
 6.1 Term. The term of this Agreement shall begin on the Effective Date and, unless earlier terminated pursuant to this Section 6, continue until
the later to occur of (i) the expiration or termination of the last Valid Claim of a Patent Right in the Territory or (ii) ten (10) years from the last First Commercial Sale of a Licensed Product in the Territory without another First Commercial
Sale of a Licensed Product in the Territory having occurred during such ten (10)-year period (the “Term”). 
  
 6.2 Termination. 
  
 (a) Termination by Either Party. Upon a material breach of this Agreement by either Party, the non-breaching Party may provide
written notice to the breaching Party specifying the material breach. If the breaching Party fails to cure the material breach during such sixty (60) day period following the date on which the notice of breach is provided, then the non-breaching
Party shall have the right to terminate this Agreement. If such breach is not reasonably cured within sixty (60) days but the breaching Party is making a bona fide effort to cure any such breach, such termination shall be delayed in order to permit
the breaching Party a reasonable period of time to remedy the breach. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 22 

 (b) Termination by Coley. 
  
 (i) Coley shall have the right upon written notice to
Licensee to terminate this Agreement for non-payment of any amount due hereunder from Licensee to Coley if such non-payment shall continue uncured for a period ending (1) thirty (30) days following notice of such non-payment given by Coley to
Licensee or, (2) if Licensee initiates a dispute resolution proceeding with respect to such payment prior to the expiration of such thirty (30) day period, then fifteen (15) days following the final conclusion of the dispute resolution proceeding.

  
 (ii) Coley may terminate this Agreement in
the event that Licensee challenges (1) the validity of the Patent Rights licensed to Licensee hereunder or, (2) in defense of or otherwise to defeat any claim made by Coley for royalties due pursuant to Section 3, the secrecy or substantiality of
the Know-How licensed to Licensee hereunder. In addition, in the event that any Sublicensee challenges the validity of the Patent Rights licensed to Licensee hereunder, Coley shall have the right to direct Licensee to terminate the sublicense
agreement with such Sublicensee by providing written notice to Licensee. In the event Licensee fails to terminate such sublicense agreement within thirty (30) days of receipt of such notice by Coley, Coley shall have the right to terminate this
Agreement immediately upon written notice to Licensee. 
  
 (iii) In addition, in the event that Coley becomes aware that a Sublicensee is in material breach of a sublicense agreement, Coley shall have the right to direct Licensee to terminate the sublicense agreement with such Sublicensee, by
providing written notice to Licensee, if the Sublicensee fails to cure the material breach during such sixty (60) day period following the date on which the notice of breach is provided; provided, however, that if the breaching
Sublicensee is making a bona fide effort to cure any such breach, such termination will be delayed in order to permit the breaching Sublicensee a reasonable period of time to remedy the breach. In the event Licensee fails to terminate such
sublicense agreement by (1) thirty (30) days following receipt of such notice by Coley (or such additional period as may be provided for the Sublicensee to cure the breach pursuant to the preceding sentence) or, (2) if Licensee or Sublicensee
initiates a dispute resolution proceeding with respect to such breach prior to the expiration of such thirty (30) day period, then fifteen (15) days following the final conclusion of the dispute resolution proceeding, Coley shall have the right to
terminate this Agreement immediately upon written notice to Licensee. 
  
 (c) Termination upon Elimination of All Specified Diseases. In the event that Licensee has exercised its rights under Section 1.2 (hhh) to delete from the definition of “Specified Diseases” all
Specified Diseases, this Agreement shall thereupon terminate without further action by either Party. 
  
 6.3 Effects of Expiration or Termination. 
  
 (a) Surviving Provisions. The provisions of Sections 2.3, 2.5, 3 (with respect to payment obligations accruing prior to the date of
expiration or termination), the second sentence of Section 3.4(c), 5.1, 7, 8, 9, 10, 11 and 12, and this Section 6.3 shall survive expiration or termination of this Agreement for any reason. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 23 

 (b) Licensee Rights. In addition to the provisions of Section 6.3(a), (i) upon
expiration of the Term or termination of this Agreement by Licensee pursuant to Section 6.2(a), the rights granted to Licensee pursuant to Section 2.1 shall become perpetual, irrevocable, fully paid-up and royalty-free, and (ii) upon termination of
this Agreement by Coley pursuant to Section 6.2(a) or (b) or upon termination of this Agreement pursuant to Section 6.2(c), Licensee shall have no further right to practice the Technology, and Licensee shall, at Coley’s election, promptly
return or destroy any unused Immune Modulator owned or Controlled by Coley or proprietary to Coley. Upon termination of this Agreement by Coley pursuant to Section 6.2(a) or (b), (i) Licensee and its Sublicensees shall have the right to exhaust
supplies of Licensed Products then in inventory and (ii) shall with respect to any sales of Licensed Products made prior to the termination of this Agreement or pursuant to clause (i) of this sentence, continue to provide Royalty Reports and to pay
royalties on all Net Sales of Licensed Products as required hereunder. 
  
 (c) Obligations Survive. Any termination of this Agreement shall be without prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to termination. 

 

	7.	CONFIDENTIALITY. 

  
 7.1 Nondisclosure Obligation. Each Party shall use the Confidential Information of the other Party only in accordance with the activities
contemplated by this Agreement and shall not disclose to any third party any Confidential Information of the other Party, without the prior written consent of the other Party. This obligation shall not apply to Confidential Information that:

  
 (a) is known by the Receiving Party at the
time of its receipt, and not through a prior disclosure by the Disclosing Party to the Receiving Party, as documented by business records; 
  
 (b) at the time of disclosure or thereafter becomes published or otherwise part of the public domain without breach of this Agreement by
the Receiving Party; 
  
 (c) is subsequently
disclosed to the Receiving Party by a third party who has the right to make such disclosure; or 
  
 (d) is developed by the Receiving Party independently of proprietary information or other information received from the Disclosing Party
and such independent development can be properly demonstrated by the Receiving Party. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 24 

 7.2 Permitted Disclosures. Notwithstanding the provisions of Section 7.1, a Receiving Party may
make the following disclosures of Confidential Information received from the Disclosing Party: 
  
 (a) disclosures to governmental or other regulatory agencies in order to obtain patents or to gain approval to conduct Licensed Product
trials or to market the Licensed Products, but such disclosure may be only to the extent reasonably necessary to obtain such patents or authorizations upon consultation with the other Party; 
  
 (b) disclosures to agents, consultants, Affiliates and/or
other third parties as necessary for the research and development, manufacturing and/or marketing of Licensed Products (or for such Persons to determine their interest in performing such activities) in accordance with this Agreement on the condition
that such third parties agree to be bound by the confidentiality obligations contained in this Agreement for a term of not less than ten (10) years; or 
  
 (c) disclosures required by law or court order, provided that notice is promptly delivered to the Disclosing Party in order to
provide it with an opportunity to seek a protective order or other similar order with respect to such proprietary information and the Receiving Party thereafter discloses only the minimum information required to be disclosed in order to comply with
the request, whether or not a protective order or other similar order is obtained by the Disclosing Party. 
  
 7.3 Partial Disclosures. It is agreed that specific portions of Confidential Information and/or data shall continue to be maintained in confidence
by the Parties in the event of a general disclosure of such Confidential Information and/or data. A combination of features in the Confidential Information and/or data shall continue to be maintained in confidence by the Parties hereunder unless
every feature of the Confidential Information and/or data has been disclosed in accordance with the provisions herein. 
  
 7.4 Publishing. 
  
 (a) The Parties shall mutually agree on procedures for publishing or presenting pre-clinical and clinical results achieved by Licensee
under this Agreement in scientific journals, at scientific meetings or in the general press. Neither Party shall submit, for written or oral publication, any manuscript, abstract, or the like that contains data, information or results arising from
this Agreement or, in the case of Licensee, otherwise relating to the Immune Modulator without first providing the other Party with a copy of the same at least thirty (30) days before such proposed submission date and obtaining the written consent
of the other Party, which consent shall not be unreasonably withheld or delayed. Nothing in this clause (a) shall qualify or limit the right of a Party to make such filings with Regulatory Authorities as may be required by law or necessary or
desirable to obtain Regulatory Approvals as contemplated herein. 
  
 (b) Notwithstanding the provisions of Section 7.4(a), the Parties acknowledge and agree that certain academic consultants may perform activities under this Agreement, and such academic consultants shall have the right
to publish or make public disclosures of the data resulting from their activities hereunder, subject to the provisions of this clause (b). Any academic consultant proposing to publish or make such public disclosure shall provide the Parties with a
draft of any such publication or disclosure by overnight mail or courier. The Parties shall have thirty (30) days from the date of receipt in which to review and comment upon 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 25 

 
such draft. If Coley and/or Licensee reasonably determines that the proposed publication or disclosure would disclose their respective Confidential
Information, such information shall be deleted from any proposed publication or disclosure. 
  
 7.5 Publicity. The Parties agree to issue an initial joint press release within a reasonable time after the execution of this Agreement. Such press release shall be substantially in the form as set forth in
Exhibit D. Thereafter, neither Coley nor Licensee (nor its Sublicensees) shall issue any press release or other public disclosure relating to this Agreement or any sublicense agreements without the prior written consent of the other Party,
which consent shall not be unreasonably withheld or delayed. Once any written statement is approved for disclosure by the Parties, either Party may make a subsequent public disclosure of the contents of such statement without further approval of the
other Party. Notwithstanding any other provision contained in this Section 7.5, either Party may make such public disclosure relating to this Agreement as may be required by applicable law. Prior to any public disclosure relating to this Agreement
pursuant to the preceding sentence, the Party proposing to make such disclosure shall provide reasonable notice thereof and the proposed contents of such disclosure to the other Party and shall consult in good faith with the other Party regarding
the timing and contents of any such disclosure. 
  
 7.6 Period
of Effectiveness. The provisions of this Section 7 shall terminate on the tenth anniversary of the termination or expiration of the Term. 
  

	8.	MAINTENANCE AND ENFORCEMENT OF PATENT RIGHTS. 

  
 8.1 Responsibility for Patent Rights. Coley, by counsel it selects, shall have the sole right, but not the obligation, to prepare, file, prosecute
and maintain all Patent Rights in Coley’s name and in countries designated by Coley at the sole discretion of Coley. In the event that Coley at any time elects not to 
  
 (a) pursue or continue the filing, prosecution (including any interferences, resisue and opposition
proceedings and re-examinations) or maintenance of any Patent Right in a particular country or 
  
 (b) seek any patent term extension, restoration or the like of any Patent Right in a particular country that may be available now or in
the future, then, in each such case, Coley shall notify Licensee in writing thereof not less than ninety (90) days before any deadlines by which an action must be taken to establish or preserve any such rights in such Patent Right in such country
and shall thereafter consult with Licensee in good faith as to what action, if any, should be taken with respect to the relevant Patent Right. 
  
 8.2 Infringement by Third Parties. Licensee agrees to provide, and shall cause its Sublicensees to provide, written notice to Coley promptly after
becoming aware of any infringement of the Patent Rights. Coley shall have the right, but not the obligation, under its own control and at its own expense, to prosecute any third party infringement of the Patent Rights and/or to defend the Patent
Rights in any declaratory judgment action brought by a Third  

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 26 

 
Party which alleges invalidity, unenforceability, or non-infringement of the Patent Rights. Coley may enter into any settlement, consent judgment, or other
voluntary final disposition of any infringement or declaratory judgment action hereunder without the prior written consent of Licensee. If Coley decides not to bring suit for infringement in the Field under the relevant Patent Rights, Coley shall
notify Licensee reasonably in advance of any deadline for such enforcement and Licensee shall have the right to bring suit on its own behalf, at its sole cost and expense. Coley shall have a continuing right to intervene in such suit. Subject to the
provisions of the next sentence, Licensee shall take no action to compel Coley either to initiate or to join in any such suit for patent infringement. At Licensee’s request, Coley shall initiate or join in any such suit if necessary to avoid
dismissal of the suit; in such event, Licensee shall reimburse Coley for its reasonable attorney’s fees and costs.  
  
 8.3 Infringement Claims. If the manufacture, sale or use of a Licensed Product in the Field results in any claim, suit or proceeding filed by a
third party alleging patent infringement by Coley or Licensee, such Party shall promptly notify the other Party in writing. In the event that one Party is sued, the Party subject to such claim shall have the exclusive right to defend and control the
defense of any such claim, suit or proceeding, at its own expense, using counsel of its own choice; provided, however, that Coley may participate in the defense of such claim defended by Licensee through counsel of Coley’s own
choosing and at Coley’s own expense, and provided, further, that Licensee shall not enter into any settlement which admits or concedes that any aspect of the Patent Rights is invalid or unenforceable without the prior written
consent of Coley, which consent shall not be unreasonably withheld or delayed. The Party subject to the claim shall keep the other Party hereto reasonably informed of all material developments in connection with any such claim, suit or proceeding.
The Party not subject to the claim shall cooperate in all reasonable respects with the Party subject to the claim in the defense of the claim. Licensee shall cause its Sublicensees to be bound to this provision to the same extent Licensee is so
bound. 
  
 8.4 Settlements. No settlements, consent
judgments, or other voluntary final dispositions of a dispute adversely affecting the rights or obligations of a Party, including the rights or obligations of the Party under this Agreement, shall be entered into in connection with any dispute,
claim or proceeding described in Section 8.2 or 8.3 without the prior written consent of the adversely affected Party, such consent not to be unreasonably withheld or delayed. Without limiting the foregoing, no settlements, consent judgments, or
other voluntary final dispositions of any dispute, claim or proceeding described in Section 8.2 or 8.3 adversely affecting the rights or obligations of Coley under the Patent Rights shall be entered into without the prior written consent of Coley,
such consent not to be unreasonably withheld or delayed. The Parties shall comply with the provisions of Section 8.4 of the Iowa Agreement with respect to any settlement, consent judgment, or other voluntary final disposition of any suit relating to
the subject matter of this Agreement. 
  
 8.5 Recoveries
and Damages. Any recoveries and damages received as a result of a dispute, claim or proceeding described in Section 8.2 or 8.3 or any settlement, consent judgment, or other voluntary final disposition thereof shall first go toward reimbursing
the Parties for their respective costs and expenses of such suit. Thereafter, all remaining recoveries not otherwise expressly allocated between the Parties in connection with the final disposition of the dispute 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 27 

 
shall be allocated [**********] percent ([**]%) to Coley and [************] percent ([**]%) to Licensee. 
  
 8.6 Subject to Iowa Agreement. The provisions of this Section 8 are
subject to in all respects the provisions of the Iowa Agreement, including Article 8 thereof. 
  

	9.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PARTIES. 

  
 9.1 Representations and Warranties of Each Party to the Other. Each Party hereby represents and warrants to the other Party hereto, effective as of
the Effective Date, that: 
  
 (a) Such Party is a
corporation duly organized and validly existing under the laws of the state or other jurisdiction of its incorporation or formation; 
  
 (b) The execution and performance of this Agreement by such Party has been duly authorized by all requisite corporate action; 

 
 (c) Such Party has the power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, including the right, power and authority to grant the licenses granted herein; 
  
 (d) The execution and performance by such Party of this Agreement and its compliance with the terms and provisions hereof does not and, to
its knowledge, will not conflict with or result in a breach of any of the terms and provisions of or constitute a default under (i) any loan agreement, guaranty, financing agreement, agreement affecting a Licensed Product or the Immune Modulator, or
other agreement or instrument binding or affecting it or its property; (ii) the provisions of its charter documents or bylaws; or (iii) any order, writ, injunction or decree of any court or governmental authority entered against it or by which it or
any of its property is bound; 
  
 (e) The
execution and performance by such Party of this Agreement and its compliance with the terms and provisions hereof do not and, to its knowledge, will not violate any law, rule or regulation applicable to it; and 
  
 (f) This Agreement has been duly authorized by all necessary
corporate action on the part of such Party, has been executed and delivered by such Party and constitutes such Party’s legal, valid and binding obligation, enforceable against such Party in accordance with its terms subject, as to enforcement,
to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to the availability of particular remedies under general equity principles. 
  
 9.2 Covenants of Licensee. Licensee hereby covenants with Coley that:

  
 (a) Licensee will not use the Immune
Modulator or any Coley Confidential Information or Know-How for any purpose other than as contemplated under this Agreement; 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 28 

 (b) It will comply with all laws and regulations applicable to the use, storage,
disposal, and transfer of Immune Modulator; and 
  
 (c) It will comply with all of the obligations applicable to sublicensees of Coley under the Iowa Agreement. 
  
 (d) Licensee will not, and will not permit its Sublicensees, to market or actively promote any Licensed Product for off-label use outside
the Field; provided, however, that the provisions of this clause (d) are not intended, and shall not be construed, to limit the right of Licensee or any Sublicensee to respond to requests from medical professionals and other
appropriate Persons for information regarding the off-label use of the Licensed Product. 
  
 9.3 Representations and Warranties of Coley. Coley hereby represents and warrants to Licensee, effective as of the Effective Date, that: 
  
 (a) Coley owns or possesses adequate licenses or other rights to use the Technology in the Field and to
grant the rights and licenses herein; 
  
 (b) To
its knowledge, the granting of the rights and licenses herein to Licensee does not violate any right of any third party; 
  
 (c) Coley has not received notice that it is in breach of its obligations under the Iowa Agreement and there is no basis for a valid claim
that it is in breach of its obligations under the Iowa Agreement; 
  
 (d) No term or provision of this Agreement constitutes or gives rise to, or will constitute or give rise to, a breach of the Iowa Agreement; and 
  
 (e) (i) To its knowledge, the Patent Rights have not been held by a court of competent jurisdiction to be
invalid or unenforceable, in whole or in part; (ii) it has not received notice of any claim or litigation by any Person alleging that any Patent Right is invalid or unenforceable; (iii) to its knowledge, the conception, development and reduction to
practice of the Technology existing as of the Effective Date have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person; and (iv) it has not received notice of any claim or litigation asserted or
commenced against it or any of its Affiliates that would have an adverse effect on the rights granted to Licensee under this Agreement. 
  
 9.4 Bayh-Dole. Both Parties acknowledge that the U.S. Public Health Service may have certain rights, as provided in Bayh-Dole (Public Law 96-517 of
1980), to the Patent Rights. 
  

	10.	INDEMNIFICATION AND LIMITATION OF LIABILITY. 

  
 10.1 Indemnification by Licensee. Licensee shall indemnify, defend and hold harmless Coley and its Affiliates, and each of its and their respective
employees, officers, directors and agents (each, a “Coley Indemnified Party”), from and against any and all liability, 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 29 

 
loss, damage, cost, and expense, including reasonable attorneys’ fees and reasonable expenses of litigation (collectively, a “Liability”),
arising out of any third party claim which the Coley Indemnified Party may incur, suffer or be required to pay to the extent resulting from or arising in connection with (i) the breach by Licensee of any covenant, representation or warranty
contained in this Agreement; (ii) any negligent or wrongful act or omission of Licensee (or any of its Affiliates or Sublicensees, or their respective directors, officers, or agents, or distributors thereof) which is the proximate cause of injury,
death or property damage to a third party; (iii) actual or asserted violations of any applicable law or regulation by Licensee, its Affiliates, Sublicensees, or distributors by virtue of which Licensed Products in the Field manufactured, distributed
or sold by Licensee, its Affiliates, Sublicensees, or distributors shall be alleged or determined to be adulterated, misbranded, mislabeled or otherwise not in compliance with any applicable law or regulation; (iv) claims for bodily injury, death,
product liability, warranty of fitness or merchantability, or property damage attributable to the development, manufacture, distribution, sale or use of Licensed Products in the Field by Licensee, its Affiliates, Sublicensees, or distributors; or
(v) a recall of Licensed Products in the Field manufactured, distributed or sold by Licensee, its Affiliates, Sublicensees, or distributors ordered by a governmental agency or required by a confirmed product failure as reasonably determined by
Licensee, its Affiliates, Sublicensees, or distributors; except, in the case of clauses (ii) through (v), to the extent that such Liability arises in connection with or is otherwise attributable to a breach by Coley of this Agreement or any
manufacturing agreement into which Coley may enter pursuant to Section 5.2 or any negligent or wrongful act or omission on the part of Coley or its Affiliates. 
  

10.2 Indemnification by Coley. Coley and its Affiliates shall indemnify, defend and hold harmless Licensee and its employees, officers,
directors and agents (each, an “Licensee Indemnified Party”) from and against any Liability arising out of any third party claim which the Licensee Indemnified Party may incur, suffer or be required to pay to the extent resulting from or
arising in connection with (i) the breach by Coley of this Agreement (including its obligations with respect to the production, shipment, validation and release of Immune Modulator under Section 5.2(a)) or any manufacturing agreement into which
Coley may enter pursuant to Section 5.2(b); or (ii) any negligent or wrongful act or omission by Coley (or any of its Affiliates or their respective directors, officers, or agents, or distributors thereof) which is the proximate cause of injury,
death or property damage to a third party; except, in the case of clause (ii) to the extent that such Liability arises in connection with or is otherwise attributable to a breach by Licensee of this Agreement or any negligent or wrongful act or
omission on the part of Licensee or its Affiliates or Sublicensees. 
  
 10.3 Indemnification Procedure. Any Person seeking indemnification under this Section 10 (the “Indemnitee”) shall promptly notify the Party from whom indemnification is sought (the “Indemnitor”) in writing of any
Claim, and the Indemnitor shall have the right to participate in, and, to the extent the Indemnitor so desires, to assume the defense thereof with counsel mutually satisfactory (consent not to be unreasonably withheld or delayed) to the other Party
by giving written notice to the Indemnitee and the other Party within thirty (30) days after receipt of written notice of such Claim from the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own
counsel, with the fees and expenses to be paid (a) by the Indemnitor, if representation of such Indemnitee by the counsel retained by the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 30 

 
Indemnitor would be inappropriate due to actual or potential differing interests between the Indemnitee and any other party represented by such counsel in
such proceeding; or (b) by Indemnitee in all other cases. In no event shall the Indemnitor be liable for any Liabilities that result from any delay by the Indemnitee in providing the written notice pursuant to the first sentence of this Section
10.3. In the event that it is ultimately determined that the Indemnitor is not obligated to indemnify, defend or hold harmless an Indemnitee from and against such Claim, the Indemnitee shall reimburse the Indemnitor for any and all costs and
expenses (including attorneys’ fees and costs of suit) and any Liabilities incurred by the Indemnitor in its defense of such Claim with respect to the Indemnitee. The Indemnitee and the other Party, and its employees and agents, shall
reasonably cooperate with the Indemnitor and its legal representatives in the investigation of any Claim covered by this Section 10. 
  
 10.4 Settlements. Neither Party may settle a Claim without the consent of the other Party if such settlement would (a) impose any monetary
obligation on the other Party, (b) require the other Party to submit to an injunction, or (c) otherwise limit the other Party’s rights under this Agreement, such consent not to be unreasonably withheld or delayed in the case of clauses (b) and
(c). Any payment made by a Party to settle a Claim shall, unless otherwise provided in Section 10.1 or 10.2, as the case may be, be at its own cost and expense. 
  

10.5 Limitation of Liability. With respect to any claim by one Party against the other Party arising out of the performance or failure of
performance of the other Party under this Agreement, the Parties expressly agree that, except for a Party’s indemnification obligations pursuant to Section 10.1 or 10.2 with respect to third party claims, the liability of such Party to the
other Party for such breach shall be limited under this Agreement or otherwise at law or equity to direct damages only and in no event shall a Party be liable for punitive, exemplary or consequential damages. 
  
 10.6 Insurance. 
  
 (a) Licensee. Prior to or immediately upon the first
administration of any Licensed Product in the Field to a human in accordance with this Agreement, and for a period of five (5) years after the last sale of any Licensed Product in the Field hereunder, Licensee shall obtain and/or maintain, and shall
require its Sublicensees to obtain and/or maintain, at its expense, product liability insurance in amounts which are reasonable and customary in the industry for companies of comparable size and activities. Such product liability insurance shall
insure against liability for personal injury, physical injury, and property damage. Licensee shall provide proof of insurance to Coley upon request. Licensee may satisfy this requirement by a representation that it is self-insured and/or maintains
third party liability insurance in amounts sufficient to meet the foregoing requirement. 
  
 (b) Coley. Prior to or immediately upon the first administration of any Licensed Product in the Field to a human in accordance with
this Agreement, as notified by Licensee to Coley, and for a period of five (5) years after the last sale of any Licensed Product in the Field hereunder, as notified by Licensee to Coley, Coley shall obtain and/or maintain, at its expense, product
liability insurance in amounts which are reasonable and customary in the industry for companies of comparable size and activities. Such product liability insurance shall insure 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 31 

 
against liability for personal injury, physical injury, and property damage. Coley shall provide proof of insurance to Licensee upon request. Coley may
satisfy this requirement by a representation that it is self-insured and/or maintains third party liability insurance in amounts sufficient to meet the foregoing requirement. 
  
 10.7 Warranty Disclaimer. EXCEPT AS EXPRESSLY MADE UNDER THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS, NOR
EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, WITH RESPECT, IN THE CASE OF COLEY, TO THE IMMUNE MODULATOR OR OTHER
IMMUNOMODULATORY OLIGONUCLEOTIDES FURNISHED TO LICENSEE OR, IN THE CASE OF BOTH PARTIES, TO ANY PATENT RIGHTS, KNOW-HOW, PRODUCT, INVENTION, TECHNOLOGY, SERVICES, GOODS OR OTHER SUBJECT MATTER OF THIS AGREEMENT. 
  

	11.	REPORTING OF SAFETY AND OTHER DATA.  

  
 11.1 Safety Data. 
  
 (a) Licensee shall report to Coley, and shall require its Sublicensees to report to Coley, safety data and any possible adverse
events associated with Licensed Products pursuant to the provisions of the safety procedures reasonably acceptable to Licensee which shall be delivered by Coley to Licensee within a reasonable period of time after the Effective Date. 
  
 (b) Coley shall treat information disclosed to it pursuant
to this Section 11.1 as Confidential Information with the following exceptions: 
  
 (i) Coley will use this data to generate a document reporting any trends seen in Licensed Products that may be related to the Immune
Modulator. Coley shall have the right to share this update with Licensee and other licensees that incorporate Immune Modulator into products. 
  
 (ii) Coley will be free to use such information in communications with the FDA or any other Regulatory Authorities; provided,
however, that no communication shall be made by Coley with the FDA or other Regulatory Authorities in reliance on the provisions of this clause (ii) that could adversely affect a Licensed Product without the consent of Licensee, which consent
shall not be unreasonably withheld or delayed. 
  
 It is understood that the
proviso clause of clause (ii) is not intended, and shall not be construed, to in any way qualify or limit the right of Coley to make disclosures of Confidential Information permitted by Section 7.2. 
  
 11.2 Preclinical and Clinical Data. Licensee shall report to Coley,
and shall require its Sublicensees to report to Coley, any and all preclinical and clinical data resulting from the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 32 

 
testing of Immune Modulator alone. This will include, but will not be limited to, toxicology study results. All such information shall constitute
Confidential Information. 
  
 11.3 Coley Reports.
Coley shall promptly provide Licensee with any reports produced by Coley pursuant to Section 11.1(b)(i) and with updates summarizing data from studies of Immune Modulator when used alone as well as reporting trends in products that contain the
Immune Modulator that may be related to Immune Modulator. 
  
 11.4 Other Licensees. Coley shall secure from all other Persons to whom it may grant licenses or other rights with respect to the Immune Modulator legally binding commitments similar to those set forth in this Section 11 relating to
the disclosure of information relating to the Immune Modulator and all such rights as Coley may require in order to make the disclosures to Licensee contemplated by this Section 11. 
  

	12.	MISCELLANEOUS. 

  
 12.1 Assignment. Neither this Agreement nor any or all of the rights and obligations of a Party shall be assigned, delegated, sold, transferred,
sublicensed (except as otherwise provided herein) or otherwise disposed of, by operation of law or otherwise, to any third party without the prior written consent of the other Party, which shall not be unreasonably withheld, and any attempted
assignment, delegation, sale, transfer, sublicense or other disposition, by operation of law or otherwise, of this Agreement or of any rights or obligations hereunder contrary to this Agreement shall be a material breach of this Agreement by the
attempting Party and shall be void and without force or effect; provided, however, that either Party may, without such consent, assign the Agreement and its rights and obligations hereunder in connection with the transfer or sale of
all or substantially all of its assets or stock, in the event of its merger or consolidation or change in control or similar transaction, or, in the case of Licensee, in the event of a sale or transfer by Licensee of all or substantially all of its
vaccine business related to vaccines targeting one or more of the Specified Diseases or, on a Licensed Product-by-Licensed Product basis, in connection with the transfer or sale of all or substantially all of its business related to a Licensed
Product. In addition, either Party may, without such consent, assign the Agreement and delegate its rights and obligations hereunder, in whole or in part, to an Affiliate; provided, however, that the Party making any such assignment or
delegations shall, notwithstanding such assignment or delegation, remain responsible for the full, complete and faithful performance of its obligations hereunder. This Agreement shall be binding upon, and inure to the benefit of, each Party, and its
permitted successors and assigns. 
  
 12.2 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, U.S.A. without regard to its conflict of law rules. 
  
 12.3 Arbitration. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach
thereof, including any question regarding this Agreement’s existence, termination or validity, shall be referred to and finally settled by binding arbitration, in 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 33 

 
accordance with the rules of the American Arbitration Association in force on the date the demand for arbitration is filed. The demand for arbitration may be
filed by either Party within a reasonable time after the controversy or claim has arisen, but no later than after the date upon which institution of legal proceedings shall be barred by the applicable statute of limitations. There shall be three (3)
arbitrators, each Party to designate one arbitrator and the two Party-designated arbitrators to select the third arbitrator. The Party initiating recourse to arbitration shall include in its notice of arbitration its appointment of an arbitrator.
The place of arbitration shall be Boston, Massachusetts. The language to be used in the arbitral proceedings shall be English. Any determination by such arbitration shall be final and conclusively binding. Judgment on the arbitral award may be
entered in any court having jurisdiction thereof. All costs incurred in connection with such arbitration, including reasonable attorneys’ fees, shall be borne by the Party which incurs the costs; provided that a Party which is determined by the
arbitral tribunal to have been in willful default of the provisions of this Agreement shall bear all costs of arbitration. 
  
 12.4 Injunctive Relief and Jurisdiction. Nothing in this Agreement shall be construed to limit or preclude a Party from bringing any action in any
court of competent jurisdiction for injunctive or other provisional relief to compel the other Party to comply with its obligations hereunder, whether before or during the pendancy of arbitration proceedings. The Parties agree that all such suits
may, at the option of either Party, be initiated and maintained before the United States District Court for the District of Massachusetts, U.S.A. and both Parties submit to personal jurisdiction and to the service of process, pleadings and notices
in connection with any and all actions seeking such injunctive or provisional relief to the court referred to above. Notwithstanding the foregoing, any dispute regarding the validity, scope or enforceability of patents, trademarks or other
intellectual property that is or can be the subject of registration with a governmental entity shall be submitted to a court of competent jurisdiction in the territory in which such rights apply. 
  
 12.5 Waiver. Any delay or failure in enforcing a Party’s rights
under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement, nor operate to bar the exercise or enforcement
thereof at any time or times thereafter, excepting only as to an express written and signed waiver as to a particular matter for a particular period of time. No waiver of a breach shall be deemed to be a waiver of a different or subsequent breach.

  
 12.6 Independent Relationship. Nothing herein contained
shall be deemed to create an employment, agency, joint venture or partnership relationship between the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose liability upon one Party for the act or
failure to act of the other Party. Neither Party shall have any power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever.

  
 12.7 Export Control. This Agreement is made subject to
any restrictions concerning the export of Licensed Product or technical information from the United States of America which may be imposed upon or related to the Parties from time to time by the government of the United 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 34 

 
States of America. Licensee agrees that it will not export, directly or indirectly, any technical information acquired from Coley under this Agreement, and
Licensee agrees that it will not export, directly or indirectly, any Licensed Product using such technical information, to any country for which the United States government or any agency thereof at the time of export requires an export license or
other governmental approval, without first obtaining any consent that may be required by applicable law, rule or regulation. 
  
 12.8 Entire Agreement; Amendment. This Agreement sets forth the complete, final and entire agreement of the Parties relating to the subject matter
hereof and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties with respect thereto and supersedes and terminates all prior agreements, writings and understandings between the
Parties to the extent they relate to the subject matter hereof. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties relating to the subject matter
hereof other than as are set forth herein or otherwise contemplated by this Section 12.8. No terms or provisions of this Agreement shall be varied or modified and no subsequent alteration, amendment, change or addition to this Agreement shall be
binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party. 
  
 12.9 Notices. Each notice required or permitted to be given or sent under this Agreement shall be in writing and delivered personally or given by
facsimile transmission (with confirmation copy by registered first-class mail) or by registered or certified mail (return receipt requested) or overnight courier, to the Parties at the addresses and facsimile numbers indicated below. 
  

			
	 If to Coley, to:
	  	Coley Pharmaceutical Group, Inc.
	 	  	Wellesley Gateway
	 	  	93 Worcester Street, Suite 101
	 	  	Wellesley, MA 02481, U.S.A.
	 	  	Attention: President and CEO
	 	  	Facsimile: 1-781-431-6403
		
	 with a copy to:
	  	Coley Pharmaceutical Group, Inc.
	 	  	Wellesley Gateway
	 	  	93 Worcester Street, Suite 101
	 	  	Wellesley, MA 02481, U.S.A.
	 	  	Attention: Vice President and General Counsel
	 	  	Facsimile: 1-781-431-6403
		
	 If to Licensee, to:
	  	Chiron Srl
	 	  	Via Fiorentina 1,
		
	 	  	 53100 Siena, Italy
  
 Attention: Riccardo Manetti, PhD

	 	  	Director Business Development, Emerging Opportunities
	 	  	Facsimile: + 39 0577 243476

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 35 

			
	 with a copy to:
	  	Chiron Corporation
	 	  	4560 Horton Street
	 	  	Emeryville, CA 94608
	 	  	Attention: Corporate Counsel
	 	  	Facsimile: +1 510 654 5360

  
 All notices, requests, reports,
approvals or other communications required or permitted under this Agreement shall be in writing (except in the case of verbal communications and teleconferences updating either Party as to the status of work hereunder), and shall be deemed given
(a) when delivered personally; (b) ten (10) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (c) one (1) day after deposited with a commercial express courier specifying next day delivery,
with written verification of receipt. Either Party may change its address or its facsimile number by giving the other Party written notice, delivered in accordance with this Section. 
  
 12.10 Force Majeure. Failure of any Party to perform its obligations under this Agreement (except the obligation to
make payments when properly due) shall not subject such Party to any liability or place them in breach of any term or condition of this Agreement to the other Party if such failure is caused by any cause beyond the reasonable control of such
non-performing Party, including acts of God, fire, explosion, flood, drought, war (whether or not declared), terrorism, riot, sabotage, embargo, strikes or other labor trouble, failure in whole or in part of suppliers to deliver on schedule
materials, equipment or machinery, interruption of or delay in transportation, a national health emergency or compliance with any order or regulation of any government entity acting with color of right; provided, however, that the
Party affected shall promptly notify the other Party of the condition constituting force majeure as defined herein and shall exert reasonable efforts to eliminate, cure and overcome any such causes and to resume performance of its obligations with
all possible speed. If a condition constituting force majeure as defined herein exists for more than ninety (90) consecutive days, the Parties shall meet to negotiate a mutually satisfactory solution to the problem, if practicable. 
  
 12.11 Severability. If any provision of this Agreement is declared
invalid or unenforceable by a court having competent jurisdiction, it is mutually agreed that, except to the extent that either Party would be adversely affected thereby, this Agreement shall endure except for the part declared invalid or
unenforceable by order of such court; provided, however, that in the event that the terms and conditions of this Agreement are materially altered, the Parties will, in good faith, renegotiate the terms and conditions of this Agreement
to reasonably substitute a valid and enforceable provision consistent with the intent of this Agreement for such invalid or unenforceable provision. 
  
 12.12 Recording. Subject to the provisions of Section 7, each Party shall have the right, at any time, to record, register, or otherwise notify
this Agreement in appropriate 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 36 

 
governmental or regulatory offices anywhere in the Territory, and each Party shall provide reasonable assistance to the other Party in effecting any such
recording, registering or notifying. 
  
 12.13 Further
Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 
  
 12.14 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original as against either Party whose signature appears thereon, but all of which taken together shall constitute but one and the same instrument. Copies of executed counterparts of this Agreement transmitted
by facsimile shall be considered original executed counterparts provided receipt of such facsimile is confirmed. 
  
 12.15 Iowa Agreement. In the event that the license granted to Coley under the Iowa Agreement terminates for any reason, (a) this Agreement shall
continue, provided that Licensee agrees in writing that UIRF is entitled to enforce the Iowa Agreement directly against Licensee and (b) Licensee shall have the right, without any obligation or liability to Coley of any kind, to deal directly with
UIRF with respect to the subject matter of this Agreement. 
  
 [The
remainder of this page was left blank intentionally.] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 37 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

  

									
	Coley Pharmaceutical Group, Inc.	 	 	 	Chiron Corporation
					
	 By:
	 	 /s/ Robert L. Bratzler
	 	 	 	 By:
	 	 /s/ John Lambert

					
	 Title:
	 	 President & CEO
	 	 	 	 Title:
	 	 President

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 38 

  
 EXHIBIT A 

 
 Iowa Agreement 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 EXHIBIT B 

 
 Licensee’s Existing IP 
  
 [***********] 
 [***********] 
 [***********] 
 [***********] 
 [***********] 
 [***********]

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

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

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

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 EXHIBIT
C 
  
 Patent Rights 
  
 Patents Claiming Priority to Patent Application Serial No. [**********] filed [**********]

  

													
	 WGS #

	  	 SN

	  	 FILING
 DATE

	  	 INVENTORS

	  	 ASSIGNEE

	  	 TITLE

	  	 STATUS

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

													
	 WGS #

	  	 SN

	  	 FILING
 DATE

	  	 INVENTORS

	  	 ASSIGNEE

	  	 TITLE

	  	 STATUS

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

	
	[********************************************]
							
	 WGS #

	  	 SN

	  	 FILING
 DATE

	  	 INVENTORS

	  	 ASSIGNEE

	  	 TITLE

	  	 STATUS

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

	
	[********************************************]
							
	 WGS #

	  	 SN

	  	 FILING
 DATE

	  	 INVENTORS

	  	 ASSIGNEE

	  	 TITLE

	  	 STATUS

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

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

  

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

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

  

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

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

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

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

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

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

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

													
	 WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	 	ASSIGNEE

	 	TITLE

	 	STATUS

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

	 WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	 	ASSIGNEE

	 	TITLE

	 	STATUS

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

							
	 WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	 	ASSIGNEE

	 	TITLE

	 	STATUS

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

							
	 WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	 	ASSIGNEE

	 	TITLE

	 	STATUS

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  

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

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

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

													
	WGS #

	  	SN

	  	FILING
DATE

	  	INVENTORS

	  	ASSIGNEE

	  	 TITLE

	  	STATUS

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 EXHIBIT D 

 
 Form of Press Release 
  
 NEWS RELEASE 
  
 Contact: 
  

			
	 Ted Hibben
	 	Karen L. Bergman or Michelle Corral
	Director, Business Development	 	BCC Partners (US)
	Coley Pharmaceutical Group	 	+1.650.575.1509
	+1.781.431.9000, ext. 1313	 	karenbergman@earthlink.net
	thibben@coleypharma.com	 	+1.415.794.8662
	 	 	 m_corral@yahoo.com

  
 For Immediate
Release 
  
 Coley Pharmaceutical Group Licenses
VaxImmuneTM Vaccine Adjuvant to Chiron

 Corporation for Inclusion in New Infectious Disease Vaccines 
  
 Wellesley, MA, December, XX, 2003 - Coley Pharmaceutical Group Inc. today announced
that Chiron Corporation has licensed Coley’s proprietary VaxImmuneTM vaccine adjuvant for incorporation into multiple vaccine candidates. 
  
 Under the terms of the agreement, Chiron receives a worldwide non-exclusive license to VaxImmuneTM, a powerful synthetic CpG vaccine adjuvant, for use in certain prophylactic infectious disease vaccine fields. Coley will receive upfront license fees
and development milestones. In addition, Coley will receive royalties from sales of products developed subject to the license. Further terms were not disclosed. 
  
 “This agreement with a leading vaccine developer further demonstrates the value of our CpG adjuvant technology to enhance the
performance of both prophylactic and therapeutic vaccines. I am delighted that Chiron has made VaxImmuneTM an essential component of their adjuvant strategy for the next generation of infectious disease vaccines,” said Robert L. Bratzler, Ph.D., President and CEO of Coley Pharmaceutical
Group. “Our collaboration with Chiron further advances our strategy to license Coley’s vaccine adjuvant technology for important 
  
 - more - 
  
 applications on a global basis, creating a new generation of highly effective vaccines.” 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 About VaxImmuneTM 
  
 VaxImmuneTM is one member of Coley’s family of CpG TLR9 agonists, which are short synthetic DNA-like sequences that invoke
potent innate and adaptive immune responses of the body’s immune system, comprised of both antibody- and cell-mediated pathways. Recent published scientific research by independent researchers have demonstrated that VaxImmuneTM vaccine adjuvants are suitable for use in both
prophylactic and therapeutic vaccines and can elicit a powerful immune response against infectious disease and cancers. 
  
 Coley’s is actively seeking committed partners for the licensing and development of its VaxImmuneTM vaccine adjuvant products. In addition to the agreement announced today with Chiron,
Coley has previously signed two licenses for its vaccine adjuvants with GlaxoSmithKline for use in cancer vaccines and in infectious disease vaccines. 
  
 About Coley Pharmaceutical Group 
  
 Coley Pharmaceutical Group is developing several classes of highly specific, targeted immunoregulatory drugs with broad potential applications in cancers, asthma, allergy
and infectious diseases. Coley’s lead anti-cancer drug candidate, ProMuneTM, is being studied in Phase II trials for several different cancer indications; ActilonTM, Coley’s lead anti-viral drug candidate, is being developed for the treatment of Hepatitis C; and VaxImmuneTM, Coley’s lead vaccine adjuvant, is being clinically evaluated with partners in
vaccines for certain cancers and for Hepatitis B. Two other CPG compounds are being developed in collaboration with Aventis Pharmaceuticals for the treatment of asthma and allergic rhinitis. In addition to the Aventis partnership, Coley has two
license agreements with GlaxoSmithKline for the use of certain CpG TLR9 agonists in specified preventive and therapeutic infectious disease vaccines and certain therapeutic cancer vaccines. Coley has also received a $12 million DARPA award to
support the clinical development of Coley’s CpGs for the enhancement of anthrax vaccines. Coley is a private company with operations in the United States, Germany and Canada. For further information, please visit www.coleypharma.com.

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.LICENSE AGREEMENT DATED 1/23/04

 Exhibit 10.28 
  
 BOSTON UNIVERSITY 
  
 LICENSE AGREEMENT 
  
 University Case Title: 
  
 Method and Composition for Treating Immune Complex Associated Disorders 
  
 University Case Number: 
  
 BU01-36 
  
 Coley Pharmaceutical Group, Inc. 
  
 January 23, 2004 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 LICENSE AGREEMENT

  
 LICENSE AGREEMENT dated as of January 23, 2004 (the
Effective Date), by and between Trustees of Boston University (the University) and Coley Pharmaceutical Group, Inc. (as further defined herein, Licensee). 
  
 WHEREAS, the University has the right to grant licenses with respect to
certain Patent Rights and Technology (as each is defined herein) and desires to promote the public interest by granting a license thereto; and 
  
 WHEREAS, Licensee desires to obtain a license to use and practice the Patent Rights and Technology to develop, produce, market and sell products;

  
 NOW, THEREFORE, in consideration of the mutual promises and
agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the University and Licensee hereby agree as follows: 
  
 ARTICLE I. DEFINITIONS. 
  
 1.01 Capitalized terms used in this Agreement shall have the meanings set forth in
Schedule 1 annexed hereto. 
  
 ARTICLE II.
LICENSE. 
  
 2.01 Grant. Subject to all of the terms and
conditions of this Agreement and the Government Rights, the University hereby grants to Licensee a right and license (a) to make, have made, use, lease, sell and have sold, import and have imported Licensed Products, (b) to practice Licensed
Processes and 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 2 

 
(c) to use the Technology, in each case (i) directly or by sublicense (subject to Section 2.03 hereof) and (ii) for commercial and research purposes in the
Field of Use within the Territory during the Term. 
  
 2.02 Exclusivity.
Subject to the Noncommercial Rights and the Government Rights, which are expressly reserved, the licenses granted under Sections 2.01 (a) and 2.01 (b) hereof shall be exclusive during the Exclusive Period, and thereafter shall be non-exclusive.
The license granted under Section 2.01(c) hereof shall be non-exclusive. 
  
 2.03 Sublicenses. The right of Licensee (and of any Sublicensee having the right to grant further Sublicenses) to enter into Sublicenses is subject to the following: 
  

	 	(a)	Obligations To University. Sublicensee shall agree to be bound directly to the University in respect of all obligations to the University set forth in Sections 2.03, 2.04 and
2.05, ARTICLE V, Sections 6.02 and 6.03, ARTICLE VII, ARTICLE VIII and Section 9.5; 

  

	 	(b)	Copy to University. A copy of each Sublicense, amendment, and waiver shall be sent to the University promptly upon execution by the parties thereto; 

 

	 	(c)	Consideration. Without the prior written consent of the University, consideration for any Sublicense from any Sublicensee shall not include anything of value in lieu of cash
payments; 

  

	 	(d)	No Waivers. Without the prior written consent of the University, Licensee shall not waive any default or breach under any exclusive Sublicense; and 

 

	 	(e)	Termination. Upon any termination of this Agreement, all Sublicenses shall continue in full force and effect, provided that the Sublicensee agrees in writing to be bound by
the terms of this Agreement. 

  
 2.04 Noncommercial Rights.
University reserves the right to use the Technology. University also reserves the right to use Licensed Products and to practice Licensed Processes, itself or jointly with or by license to another non-profit entity, (a) only for research that is
not sponsored by a for-profit entity or (b) for noncommercial compassionate uses in University Hospitals. Noncommercial compassionate uses shall be subject to Coley approval, such approval not to be unreasonably withheld. In each case, the rights
reserved to University under this Section 2.04 (collectively, Noncommercial Rights) are (i) 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 3 

 
worldwide, including without limitation, in the Territory, and (ii) in any field of use, including without limitation, in the Field of Use. 
  
 2.05 Other Rights. The license granted in this Agreement shall not be construed to
confer any rights upon Licensee by implication, estoppel or otherwise (a) to any technology, other than Technology, not specifically set forth in the Patent List or (b) beyond such rights as are expressly set forth herein. 
  
 ARTICLE III. DUE DILIGENCE 
  
 3.01 Licensee Representations. Licensee represents and warrants to University that:

  

	 	(a)	Experience. Licensee is experienced in the development, production, marketing and sale of products similar to the Licensed Products; 

  

	 	(b)	Financial Capacity and Business Plan. Licensee has the financial capacity and strategic commitment to commercialize the Licensed Products and has provided to the University a
copy of its most recent business plan; 

  

	 	(c)	Organization & Power. Licensee is a corporation duly organized, validly existing, and in good standing under the laws of its state of incorporation and has all
requisite corporate power and authority to enter into this Agreement; 

  

	 	(d)	Authorization. The execution, delivery and performance by Licensee of this Agreement and the consummation of the transactions contemplated hereby and thereby have been duly
authorized by all requisite action on the part of the Licensee and do not conflict with or cause a default with respect to Licensee’s obligations under any other agreement; 

  

	 	(e)	Execution & Delivery. This Agreement has been duly executed and delivered by the Licensee; and 

  

	 	(f)	Insurance. The insurance coverage required pursuant to Section 7.03 shall have been obtained and Licensee shall have presented proof of coverage in a form satisfactory to the
University. 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 4 

 3.02 Best Efforts. Licensee shall use commercially reasonable efforts to bring the Licensed Products to market in
the United States and throughout the Territory through a vigorous and diligent program for exploiting the Patent Rights and shall, throughout the Term, diligently continue development and marketing efforts with respect to the Licensed Products, in
each case consistent with reasonable business practices and judgments. Notwithstanding the foregoing, Licensee shall be under no obligation to develop and market more than one (1) Licensed Product at a time. 
  
 3.03 Milestones. Licensee shall use commercially reasonable efforts to meet or
accomplish each of the Milestones by its Milestone Date. 
  
 3.04 Material
Breach. Breach of any provision of this ARTICLE III is a material breach of this Agreement. 
  
 ARTICLE IV. ROYALTIES & PAYMENTS 
  
 4.01 Royalties. In consideration for the licenses granted under this Agreement, Licensee shall pay all of the following royalties (collectively, the Royalties) to the University: 
  

	 	(a)	Initial Payment. Upon the Effective Date, Licensee shall pay to the University the Initial Payment; 

  

	 	(b)	Royalty Payments for Licensed Products. Licensee shall pay to the University within thirty (30) days after the end of each calendar quarter, during the term of the license of
paragraph 2.02, the following royalties, based on the Net Sales of all Licensed Products sold by Licensee and its Affiliates. 

  

	 	(i)	[***]% royalties on Net Sales of Licensed Products sold by Licensee and its Affiliates, if total royalties being paid on the Licensed Product to all parties is less than or equal to
[***]%; 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 5 

	 	(ii)	[***]% royalties on Net Sales of Licensed Products sold by Licensee and its Affiliates, if total royalties being paid on the Licensed Product to all parties is greater than [***]%
but less than or equal to [***]%; 

  

	 	(iii)	[***]% royalties on Net Sales of Licensed Products sold by Licensee and its Affiliates, if total royalties being paid on the Licensed Product to all parties is greater than [***]%
but less than or equal to [*]%; 

  

	 	(iv)	[***]% royalties on Net Sales of Licensed Products sold by Licensee and its Affiliates, if total royalties being paid on the Licensed Product to all parties is greater than [*]%;

  

	 	(v)	[***]% royalties on Net Sales of Licensed Products sold by Licensee and its Affiliates in the animal field. 

  

	 	(c)	Royalty Payments for Technology-Based Products. Licensee shall pay to the University within thirty (30) days after the end of each calendar quarter, during the term of the
license of paragraph 2.02, royalties, based on the Net Sales of all Technology-Based Products sold by Licensee and its Affiliates, at [**]% of the applicable rates set forth in paragraph 4.01 (b)(i-v). 

  

	 	(d)	Sublicense Payments. In the case of sublicense, options to sublicense, and similar agreements to exploit the Licensed Products, Licensed Processes or Technology, Licensee
shall also pay to the University, within thirty (30) days after the end of each calendar quarter, during the term of the license of paragraph 2.02, [*******] percent ([**]%) of any royalty or non-royalty Sublicense Revenues.

  

	 	(e)	Inter-Affiliate and Inter-Sublicensee Sales. Royalties shall not apply to sales among Licensee, its Affiliates and their respective sublicensees for resale. On sales between
Licensee and its Affiliates for resale, the royalty shall be paid on the resale. 

  

	 	(f)	 IND Filing Payment. A once only payment of [**************] dollars ($[*********]) upon the first achievement of filing an IND application for Phase I with
the FDA, or equivalent European governmental body, for the first Licensed Product. Such payment shall accrue upon approval by FDA for the product to proceed to Phase I FDA trials and shall be payable within 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 6 

	 	 
thirty (30) days of accrual. This payment will accrue and be payable regardless of the date of execution of this Agreement. If such Milestone event has
occurred and associated payment has accrued prior to the execution of this Agreement, Licensee shall pay such amount immediately to the University upon execution of this Agreement. 

  

	 	(g)	Approved Filing Payment. A once only payment of [********************] dollars ($[**********]) upon the first achievement of filing for marketing approval with the FDA, or
equivalent European governmental body, for the first Licensed Product. Such payment shall accrue upon filing for FDA approval for the product and shall be payable within thirty (30) days of accrual. This payment will accrue and be payable regardless
of the date of execution of this Agreement. If such Milestone event has occurred and associated payment has accrued prior to the execution of this Agreement, Licensee shall pay such amount immediately to the University upon execution of this
Agreement. 

  

	 	(h)	Annual Minimums. Licensee shall pay to the University, on January 1 of each calendar year, at least [***********] dollars ($[*********]) yearly commencing 2005 and continuing
through 2007, and at least [********************] dollars ($[*********]) yearly commencing 2008 and continuing through 2012. These annual minimum payments shall be fully creditable for a period of five (5) years against future royalties and
Milestone Payments. The University shall have the right to terminate this license in the event that such annual minimum payments are not made when due. 

  
 4.02 Research Support. It is Licensee’s intention to continue to support the research conducted in [**********************] lab
during the 2004-2005 academic year, subject to execution of a sponsored research agreement on terms mutually acceptable to the parties. A sponsored research agreement will be executed within six (6) months of the execution of this Agreement.

  
 4.03 Payments. All payments due under this Agreement shall be paid (a)
in full without deduction of exchange, collection, taxes or other fees that may be imposed by any government and (b) in United States dollars in Boston, Massachusetts or at such other place as the University may designate 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 7 

 
consistent with applicable law. Currency conversions shall be made by reference to the prevailing exchange rate for bank transfers from the foreign currency
to U.S. Dollars, as quoted at the FleetBoston Financial Corporation or its successor on the last business day of the calendar quarter immediately preceding the payment due date. If by law, regulation or fiscal policy of any country, conversion from
that country’s currency into U.S. dollars is restricted or forbidden, written notice thereof shall be given to the University and payment of amounts from that country shall be made through such lawful means as the University shall designate,
including, without limitation, deposit of local currency in such recognized banking institution as the University shall designate. When in any country the law or regulation prohibits both the transmittal and the deposit of royalties on sales in that
country, royalty payments from that country will be suspended for as long as the prohibition is in effect and, as soon as the prohibition ceases, all royalties that Licensee or its Sublicensees would have been obligated to pay, but for the
prohibition, will promptly be deposited or transmitted, as the case may be, to the extent then allowed. 
  
 4.04 Interest. All amounts due under this Agreement shall accrue interest from the first day following the due date until paid in full at the annual rate (compounded quarterly) of [*****] percent ([*]%)
plus the rate announced as of the due date by FleetBoston Financial Corporation or its successor in Boston, Massachusetts as its prime rate. Payment of interest shall not foreclose any other right that the University may have as a consequence of
late payment. 
  
 ARTICLE V. REPORTS, RECORDS &
AUDIT 
  
 5.01 Books & Records. Licensee shall keep in
accordance with generally accepted accounting principles up-to-date, complete, true and accurate books of account in sufficient detail to permit calculation of all amounts due hereunder, including without limitation, copies of all invoices, which
shall be properly itemized. Such books of account shall be maintained at Licensee’s principal place of business (or at its election, the principal place of business of the division of Licensee to which this Agreement relates) and Licensee shall
keep the University apprised in writing of the location of such books and records. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 8 

 5.02 Semi-Annual Reports. Prior to first commercial sale of Licensed Product, (without regard to whether any
payments are due to the University in respect of such period), Licensee shall deliver to the University, within thirty (30) days of each semi-annual period, complete and accurate semi-annual reports of its activities and the activities of its
Sublicensees, including the following: 
  

	 	(a)	identification of all Milestone Dates occurring during such semi-annual period and an indication of whether the corresponding Milestone was met (and if not, a summary of the
progress as of the end of such semi-annual period and projected completion dates); 

  

	 	(b)	identification of all Sublicenses and research support contracts related to the Patent Rights or the Technology entered into during such semi-annual period, together with a summary
of the principal economic terms of each; 

  

	 	(c)	a summary of those activities of Licensee and its Sublicensees directed toward promoting the sale and use of the Licensed Products and Licensed Processes. 

 
 5.03 Quarterly Reports. Following the date of first commercial sale of Licensed
Product, (without regard to whether any payments are due to the University in respect of such quarter), Licensee shall deliver to the University, within thirty (30) days of each calendar quarter, complete and accurate quarterly reports of its
activities and the activities of its Sublicensees, including the following: 
  

	 	(a)	the number of each type of Licensed Product and Licensed Process sold or leased by Licensee and by each Sublicensee during such quarter; 

  

	 	(b)	the total amount of Net Sales during such quarter; 

  

	 	(c)	calculations of each amount due under this Agreement in respect of such quarter, including without limitation, deductions applicable to Net Sales; 

  

	 	(d)	identification of all Milestone Dates occurring during such quarter and an indication of whether the corresponding Milestone was met (and if not, a summary of the progress as of the
end of such quarter and projected completion dates); 

  

	 	(e)	identification of all Sublicenses related to the Patent Rights or the Technology entered into during such quarter, together with a summary of the principal economic terms of each;

  

	 	(f)	a summary of those activities of Licensee and its Sublicensees directed toward promoting the sale and use of the Licensed Products and Licensed Processes. 

 

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 9 

 5.04 Annual Reports. Within one hundred twenty (120) days after the end of Licensee’s fiscal year, Licensee
shall provide to the University a copy of its financial statements for such year, certified as to their completeness and accuracy by Licensee’s chief financial officer. Licensee shall also provide to the University written evidence of the
annual renewal of insurance within thirty (30) days of such renewal. 
  
 5.05
Other Reports. Promptly upon the preparation of (a) any annual report to stockholders of Licensee or (b) any Licensee business or marketing plan or material revision thereof, Licensee shall provide a copy of such report or plan to the
University. 
  
 5.06 Audit. No more often than twice per calendar year, the
University may, upon three (3) days written notice specifying any time of day during Licensee’s business hours, audit or have its representatives audit Licensee’s books and records at Licensee’s place of business for the purpose of
verifying Licensee’s reports and compliance by Licensee in all other respects with this Agreement. If the University retains any third parties to assist in the audit, such third parties shall agree to be bound by contractual obligations of
confidentiality and non-use at least as restrictive as those set forth in this Agreement If any audit identifies an underpayment by Licensee, Licensee shall promptly pay the underpayment to University including interest as provided for in Section
4.04. If any audit identifies an overpayment by Licensee, Licensee shall deduct such overpayment from the next payments due University until such overpayment has been recovered by Licensee. If any audit leads to the discovery of an underpayment in
respect of any calendar quarter of more than [***] percent ([**] %) between amounts due in respect of such quarter and amounts reported to be due by Licensee in its quarterly report for such quarter or otherwise reveals a previously undisclosed
material breach of this Agreement, Licensee shall, within thirty (30) days after written notice from the University, reimburse the University for all of its costs related to the audit. Licensee shall, in any event and without regard to the size of
the discrepancy, pay to the University the amount of any previous underpayment, including interest from the time such amount was due until paid in full in accordance with Section 4.04. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 10 

  
 ARTICLE VI.
REGULATORY MATTERS & PATENT COSTS 
  
 6.01 United States
Manufacture. Products leased or sold by Licensee or any Sublicensee in the United States shall be manufactured substantially in the United States unless any waiver of such requirement is obtained. University shall, at Licensee’s request and
expense, assist Licensee is attempting to obtain such a waiver, should Licensee determine to do so. 
  
 6.02 Export Control. Licensee shall not, absent proper authorization and licensing, if applicable, from all United States agencies having jurisdiction, including the United States Office of Export Control,
export data or commodities, including without limitation, Products, Processes or Technology, to any country on the Commodity Control List, the Military-Critical List or other restricted list. The University neither represents that any such export
license is not required nor that, if required, it will be issued. 
  
 6.03
Compliance & Marking. Licensee shall comply and shall require its Sublicensees to comply with all applicable laws and regulations concerning the manufacture (including without limitation, Good Manufacturing Practices set forth by the
United States Food and Drug Administration), marking, marketing and safety of all Products. Without limiting the foregoing, all Products sold, leased or shipped in, through or to (a) the United States shall be marked with all applicable patent
numbers and (b) any other country, shall be marked in conformity with all of the laws and regulations of such country. 
  
 6.04 Patent Filings. The University shall, using patent attorneys selected by Licensee and reasonably acceptable to the University, apply for, seek issuance of and
maintain the Patent Rights in the name and on behalf of the University during the Term in the United States and in such other countries as are identified in the Patent List hereto or as Licensee may request in writing; provided that (a) Licensee
shall cooperate with the University in such prosecution, filing and maintenance; and (b) Licensee shall be given at least ten (10) days to advise and comment upon such filings and actions as are undertaken by the University. The University may, in
its discretion, decline to apply for, prosecute or maintain any Patent Rights in any country, but shall give timely notice to Licensee of any such 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 11 

 
determination, whereupon Licensee may undertake such action, in the name and on behalf of the University, at its own expense. The University agrees to
cooperate with Licensee as reasonably necessary to permit Licensee to be able to prosecute or maintain any Patent Rights in those countries that the University declines to undertake action, at Licensee’s expense. 
  
 6.05 Patent Costs. On the date hereof, Licensee shall reimburse the University for its
Prior Patent Costs incurred to date, in the amount set forth on Schedule 2. Thereafter, Licensee shall pay Patent Costs directly or shall, within thirty (30) days after the end of any month during the Term in which Patent Costs are incurred,
reimburse the University in the full amount of such Patent Costs. The University has delivered the invoice for the Prior Patent Costs incurred to date and shall deliver to Licensee additional invoices for Patent Costs as they are incurred. Overdue
amounts shall accrue interest pursuant to Section 4.04. Licensee may decline payment of future Patent Costs by giving thirty (30) days written notice in advance of the University incurring such costs, whereupon Licensee’s right to benefit from
the applications or patents affected by such Patent Costs shall terminate, including but not limited to, the deletion of such patent from the Patent List and the termination of the license granted with respect to such patent. 
  
 ARTICLE VII. WARRANTIES, LIMITATIONS & INDEMNIFICATION

  
 7.01 University Limitation. EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, THE UNIVERSITY MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR WITH RESPECT TO (1) THE SCOPE OR VALIDITY OF
ANY OF THE PATENT RIGHTS; (2) WHETHER THE PATENT RIGHTS OR TECHNOLOGY MAY BE EXPLOITED BY LICENSEE OR ANY SUBLICENSEE WITHOUT INFRINGING THE RIGHTS (INCLUDING PATENT RIGHTS) OF OTHERS; OR (3) THE RESULTS TO BE OBTAINED BY USE OF THE PATENT RIGHTS,
THE TECHNOLOGY, THE LICENSED PRODUCTS OR THE LICENSED PROCESSES. THE PATENT RIGHTS AND THE TECHNOLOGY ARE DELIVERED “AS IS” IN EVERY RESPECT. Without 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 12 

 
limitation of the foregoing, Licensee acknowledges that it is aware of an unresolved inventorship dispute involving [**********************], of
[********************************], and that it is not relying upon any representation or warranty of any kind by the University or its employees or agents with respect to any matter relating to such dispute. 
  
 7.02 Indemnification. Licensee shall at all times during the Term and thereafter,
defend and hold the University, its trustees, officers, employees, agents and affiliates (together, Indemnitees) harmless from and against all claims, suits, demands, liability and expenses, including legal expenses and reasonable
attorneys’ fees, arising out of (a) the death of or injury to any person or persons, (b) damage to property, or (c) any other claim, proceeding, demand, expense and liability of any kind whatsoever resulting from (i) the design, production,
manufacture, shipping, handling, use (in commerce or otherwise), sale, lease, consumption, promotion or advertisement of the Products or the Processes or any product, service or process relating to or developed under this Agreement or with the
Technology or the Patent Rights or (ii) any obligation or activity of Licensee under this Agreement or of any Sublicensee under any Sublicense. Licensee shall have no obligation under this Section 7.02 with respect to any claims, suits, demands,
liability and expenses, including legal expenses and reasonable attorneys’ fees, to the extent arising from the negligence or willful misconduct on the part of Indemnitees or breach by University of any of its obligations under this Agreement.

  
 7.03 Insurance. 
  

	 	(a)	Scope & Expense. Licensee has procured and shall maintain in full force and effect comprehensive general liability insurance policies that protect and name the
Indemnitees as an additional named insureds. Coverage shall be no less than $[*********] per incident and $[*********] in annual aggregate, but the University may in its reasonable discretion, by thirty (30) days written notice to Licensee, require
greater liability coverage. Coverage shall include product liability and broad form contractual liability for Licensee’s indemnification obligations under Section 7.02. If the product liability insurance is not for occurrence liability
coverage, Licensee shall maintain comprehensive general liability insurance for not less than fifteen (15) years after it has ceased commercial distribution or use of any Licensed Product or Licensed Processes. 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 13 

	 	(b)	Notice & Cancellation. Licensee shall provide the University with written evidence of such insurance upon issuance and upon each annual renewal. Licensee shall
give the University at least fifteen (15) days written notice prior to any cancellation, non-renewal or material change in such insurance. If Licensee does not obtain replacement insurance providing comparable coverage within such fifteen (15) day
period, the University may terminate this Agreement without notice or any additional cure or waiting period. 

  
 7.04 University Liability. The University’s total liability for any cause of action arising in connection with this Agreement or the transactions
contemplated by this Agreement, and regardless of the form of action, whether in contract or in tort, including negligence, or otherwise shall be limited to [***********] percent ([***]%) of the amounts paid to the University under ARTICLE IV.
Licensee waives and disclaims (and shall cause all Sublicensees to waive and disclaim) any right to recover any damages in the aggregate in excess of such amount from the University, including but not limited to, any lost or anticipated profits or
savings, or any incidental, intangible, exemplary, punitive, special or consequential damages, regardless of the form of action, whether in contract or in tort, including negligence, or otherwise and whether or not the University was advised of the
possibility or likelihood of such damages. 
  
 ARTICLE
VIII. INFRINGEMENT 
  
 8.01 Notice. Licensee shall notify the University promptly in writing of any alleged
infringement of the Patent Rights by a third party and shall provide any available evidence thereof. 
  
 8.02 Prosecution By University. The University shall have the right, at its sole discretion, to prosecute, at its own expense, any alleged infringements of the Patent Rights. Licensee agrees to allow the
University to include Licensee, at the University’s expense, as a party plaintiff in any suit brought with respect to infringement alleged to have occurred within the Territory and Field of Use. In the event that the University takes the lead
counsel role with respect to the commencement or defense of any action, the total cost shall be borne by and any recovery or damages shall be paid solely to the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 14 

 
University. During the Exclusive Period, Licensee shall have the right to participate in any action, at Licensee’s expense, and the University agrees to
consult with counsel for Licensee on any significant matters related to the litigation. 
  
 8.03 Prosecution By Licensee. 
  

	 	(a)	Procedure. If the University, within six (6) months after having been notified of an alleged infringement, shall have been unsuccessful in negotiating with the alleged
infringer to cease and desist such infringement and shall not have brought an infringement action, or if the University shall notify Licensee at any time prior thereto of its intention not to bring suit against any alleged infringer in the Territory
for the Field of Use, then, and in those events only, Licensee shall have the right, but shall not be obligated, to prosecute at its own expense any such infringement of the Patent Rights in the Territory for the Field of Use. In such circumstances,
and provided that the license granted pursuant to Section 2.01 (a) and (b) shall remain exclusive, Licensee may use the name of the University as the plaintiff if necessary for the prosecution of the infringement suit. Notwithstanding anything in
the foregoing to the contrary, no settlement, consent judgment or other voluntarily final disposition of any such suit may be entered into without the consent of the University, which consent shall not be unreasonably withheld. Licensee shall
indemnify the University against any order for any costs that may be made against the University in such proceedings. 

  

	 	(b)	Damages. In the event that Licensee undertakes litigation pursuant to Section 8.03(a) for the enforcement of Patent Rights, any recovery of damages by Licensee for each suit
shall be applied as follows: (a) first, to Licensee to reimburse Licensee for the expenses of the litigation or suit, including reasonable attorneys’ fees, (b) then, second, to the University to reimburse the University for its expenses of the
litigation or case, including reasonable attorneys’ fees, and (c) then, an amount equal to the Lump Sum Percentage of the balance of any recovery and (d) then, the balance to Licensee. 

  
 8.04 Actions Against Licensee or University. In the event that an action alleging
invalidity or noninfringement of any of the Patent Rights shall be brought against the University or against Licensee (whether as an independent action or as a counterclaim of a suit filed by Licensee pursuant to Section 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 15 

 
8.03(a)), the University, at its sole option, shall have the right, within thirty (30) days after the commencement of such action, to take or regain control
of the action at its own expense. If the University shall determine not to exercise this right, Licensee may take over or remain as lead counsel for the action at Licensee’s sole expense, with any settlement or recovery subject to the approval
provisions of Section 8.03 (a) and allocation provisions of Section 8.03 (b), provided that the University shall have the right to refuse, in its sole discretion, to accept any settlement offer that would result in the lessening or weakening of any
Patent Rights. 
  
 8.05 Cooperation. In any infringement suit, either party
shall be entitled to request the cooperation and assistance of the other party, at the requesting party’s expense, as may be reasonably necessary for the suit. Each party agrees to make available relevant records, papers, information, samples
and specimens, as well as to have its employees testify upon request. 
  
 8.06
Sublicense Settlements. In the event that the Licensee shall elect to grant a Sublicense to any alleged infringer in the Territory for the Field of Use for future use of the Patent Rights, any amounts paid by the alleged infringer as a part of
the Sublicense or settlement other than such amounts measured directly by the sale of Licensed Products shall be shared by Licensee and the University in the same ratio as amounts received as Lump Sum payments. Revenues received under such
Sublicenses that are measured by the sale of Licensed Products shall be included in the Royalty computations in accordance with Section 4.01. 
  
 ARTICLE IX. TERMINATION 
  
 9.01 Patent License. Unless earlier terminated as provided for in this Agreement, the license granted pursuant to Section 2.01 for Patent-Based Products and
Patent-Based Processes will continue in each country until the expiration or termination of the Patent Rights upon which the Patent-Based Products and Patent-Based Processes are based. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 16 

 9.02 Technology License. Unless earlier terminated as provided for in this Agreement, the license granted pursuant
to Section 2.01 for Technology-Based Products and Technology-Based Processes will continue for ten years from the Effective Date. 
  
 9.03 Early Termination. Notwithstanding the foregoing and except as otherwise provided in Section 2.03(e), all licenses granted pursuant to Section 2.01 and this
Agreement shall terminate as follows: 
  

	 	(a)	Material Breach. If Licensee materially breaches this Agreement, or any sponsored research agreement or other related agreement with the University, or fails to account for
or pay Royalties as provided in this Agreement, the University shall have the right, at its election, to terminate (i) the Exclusive Period; (ii) any or all licenses granted by the University under this Agreement (including the right to sublicense);
or (iii) this Agreement in its entirety, including all licenses granted by the University under this Agreement upon thirty (30) days prior written notice, subject to the survival of the obligations set forth in Section 9.06; provided however,
if Licensee shall cure the breach or default within the thirty (30) day period, this Agreement and all such licenses shall continue in full force and effect. 

  

	 	(b)	Insolvency, Etc. If Licensee shall file a petition in bankruptcy or if an involuntary petition shall be filed against Licensee and such petition shall not be dismissed within
sixty (60) days, or if Licensee shall become insolvent or admit its inability to pay its debts when due, or if a receiver or a guardian shall be appointed for Licensee, then this Agreement and all licenses granted by the University under this
Agreement shall immediately terminate. 

  
 9.04 Accrued
Obligations. Upon termination of this Agreement for any reason, each party shall remain liable for those obligations which came into existence prior to the effective date of the termination including, without limitation, payment of accrued
royalties. Licensee may, for a period of no longer than one (1) year after the effective date of the termination of this Agreement, complete any or all Licensed Products that it can demonstrate were in the process of manufacture on the effective
date of the termination and sell any and all Licensed Products that it can demonstrate were in the process of manufacture or in inventory on the date of termination; provided that Licensee shall remain obligated to pay any applicable
Royalties thereon as provided in this Agreement. Within thirty (30) 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 17 

 
days after receipt of notice of termination, Licensee shall provide the University with an accounting of Licensed Products then on hand and in process and
its best estimate of when within the one (1) year period such sales of Licensed Products will conclude. 
  
 9.05 Information. Upon termination of this Agreement for any reason, Licensee shall, promptly upon request by the University, make available to the University, at the University’s sole option, the rights
to use, license or own all Information then in Licensee’s possession that is relevant to the commercialization of Licensed Products. 
  
 9.06 Survival. The obligations set forth in ARTICLE VII, ARTICLE VIII, Sections 9.04, 9.05 and 9.06, ARTICLE X, Sections 10.02, 10.03, 10.04, 11.06, 11.07 and
11.13 shall survive the termination of this Agreement. 
  
 ARTICLE X. DISPUTE RESOLUTION 
  
 10.01
Mediation. In the event of any dispute arising between the parties in connection with this Agreement, the construction thereof, or the rights, duties or liabilities of either Party, representatives designated by each party shall meet at the
University or confer by conference call within one week of a request by either party and attempt to amicably resolve the dispute. If the dispute is not resolved by such efforts within 30 days, the parties shall refer the matter to non-binding
mediation in Boston, the costs of which will be shared equally. In the event that such dispute is not amicably resolved by such non-binding mediation, then the parties may, at their option, agree to arbitrate or unilaterally employ civil litigation
or any other dispute resolution mechanism available to them. 
  
 10.02
Injunctive Remedies. Notwithstanding the mediation provisions of Section 10.1 above, the parties acknowledge and agree that, in the event of a breach or a threatened breach by either party of Section 11.01 hereof, the other party may suffer
irreparable damage for which it will have no adequate remedy at law and, accordingly, shall be entitled immediately to seek injunctive and other equitable remedies to prevent or restrain such breach or threatened breach, without having first
complied with the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 18 

 
provisions of section 10.01, and without the necessity of posting any bond or surety, in addition to any other remedy it might have at law or at equity.

  
 10.03 Governing Law. The validity, interpretation, performance and
enforcement of this Agreement, and all rights and obligations of the parties shall be governed and construed in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to its rules concerning conflicts of laws.

  
 10.04 Exclusive Venue; Consent to Jurisdiction. Any action, suit or
other proceeding pursuant to, arising under, or touching or concerning this Agreement or the transactions contemplated hereby shall be brought exclusively in any court of competent jurisdiction in Suffolk County, Commonwealth of Massachusetts. The
parties agree to take any and all necessary or appropriate action to submit to the exclusive jurisdiction of any such court. In any such action, suit or proceeding, the successful or prevailing party shall be entitled to recover its reasonable
attorneys’ fees and other costs incurred in connection with that action, suit or proceeding, in addition to any other relief to which such party may be entitled. 
  
 ARTICLE XI. GENERAL PROVISIONS 
  
 11.01 Confidentiality. It is contemplated that in the course of the performance of this Agreement each party may, from time to time,
disclose Confidential Information to the other. Each party agrees to take all reasonable steps to prevent disclosure of Confidential Information; provided that no provision of this Agreement shall be construed to preclude such disclosure of
Confidential Information as may be necessary or appropriate to obtain from any governmental agency any necessary approval or license or to obtain patents that are to be included in Patent Rights. 
  
 11.02 Amendment and Waiver. No provision of or right under this Agreement shall be
deemed to have been waived by any act or acquiescence on the part of either party, its agents or employees, but only by an instrument in writing signed by an authorized officer of each party. No waiver by either 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 19 

 
party of any breach of this Agreement by the other party shall be effective as to any other breach, whether of the same or any other term or condition and
whether occurring before or after the date of such waiver. 
  
 11.03
Independent Contractors. Each party represents that it is acting on its own behalf as an independent contractor and is not acting as an agent for or on behalf of any third party. This Agreement and the relations hereby established by and between
the University and Licensee do not constitute a partnership, joint venture, agency or contract of employment between them. 
  
 11.04 Assignment. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be
unreasonably withheld in the case of any assignment pursuant to a merger, consolidation or sale of substantially all of the assets or stock of Licensee; provided that (a) nothing contained in this Section 11.04 shall prohibit sublicensing, and (b)
the proposed assignee under this Section 11.04 agrees in writing to assume all of the obligations of Licensee under this Agreement. 
  
 11.05 Successors and Assigns. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

  
 11.06 Use of Names. Neither party shall use the name of the other party
or any staff member, officer, employee or student of the other party or any adaptation thereof in any advertising, promotional or sales literature, publicity or in any document employed to obtain funds or financing without the prior written approval
of the party or individual whose name is to be used; provided that Licensee may state (and upon request by University shall state in all advertising, promotional or sales literature and publicity for a period of up to three (3) years from the
Effective Date) that Licensed Products are based on research originally carried out at Boston University and that is licensed by the University under the Patent Rights. Licensee may make reference to publications authored or co-authored by the
inventor(s). Licensee shall submit to the University for review and approval any references to Licensed Products, this Agreement, the University or the inventors in submissions required by the Securities and Exchange Commission or any stock exchange
or market system on which its shares are listed or being 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 20 

 
considered for listing. For the University and its officers, employees and students, such approval shall be obtained from the Director of the
University’s Community Technology Fund. In addition, the University may disclose the name of Licensee in publications by the University. Licensee and University agree that they will jointly make an initial announcement about the existence of
this agreement. 
  
 11.07 Notices. All communications hereunder shall be in
writing and shall be deemed to have been duly given upon receipt by the addressee at the addresses set forth below, or such other address as either party may specify by notice sent in accordance with this Section: 
  
 If to the University: 
  
 Boston University 
 Community Technology Fund 
 108 Bay State Road

 Boston, MA 02215 
              Attention: Director 
  
 with a copy to: 
  
 Boston University 
 Office of the General
Counsel 
 125 Bay State Road 
 Boston, MA 02115 
              Attention: General Counsel

  
 If to Licensee, to the Licensee Notice Address set forth in
the Term Sheet. 
  
 11.08 Severability. In the event any provision of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other term or provision hereof. The parties agree that they will negotiate in good
faith or will permit a court or arbitrator to replace any provision hereof so held invalid, illegal or unenforceable with a valid provision which is as similar as possible in substance to the invalid, illegal or unenforceable provision. 

 

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 21 

 11.09 Conflict or Inconsistency. In the event of any conflict or inconsistency between the terms and conditions
hereof and any terms or conditions set forth in any purchase order or other document relating to the transactions contemplated by this Agreement, the terms and conditions set forth in this Agreement shall prevail. 
  
 11.10 Captions. Captions of the sections and subsections of this Agreement are for
reference purposes only and do not constitute terms or conditions of this Agreement and shall not limit or affect the terms and conditions hereof. 
  
 11.11 Word Meanings. Words such as herein, hereinafter, hereof and hereunder refer to this Agreement
as a whole and not merely to a section or paragraph in which such words appear, unless the context otherwise requires. The singular shall include the plural, and each masculine, feminine and neuter reference shall include and refer also to the
others, unless the context otherwise requires. 
  
 11.12 Entire Agreement.
This Agreement contains the entire understanding of the parties hereto with respect to the transactions and matters contemplated hereby, supersedes all prior agreements and understandings relating to the subject matter hereof, and no
representations, inducements, promises or agreements, whether oral or otherwise, between such parties not contained herein or incorporated herein by reference shall be of any force or effect. 
  
 11.13 Rules of Construction. The parties agree that they have participated equally in
the formation of this Agreement and that the language and terms of this Agreement shall not be presumptively construed against either of them. 
  
 11.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. In making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 
  
 [Remainder of this page intentionally left blank] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 22 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly
authorized officers, and have duly delivered and executed this Agreement under seal as of the date first set forth above. 
  

									
	 TRUSTEES OF BOSTON UNIVERSITY
	 	 	 	 COLEY PHARMACEUTICAL GROUP, INC.

			
	 (UNIVERSITY)
	 	 	 	 (LICENSEE)

					
	By:	 	 /s/ Martin J. Howard
	 	 	 	By:	 	 /s/ Robert L. Bratzler

	 By:
	 	 Martin J. Howard
	 	 	 	 By:
	 	 Robert L. Bratzler

	 Title:
	 	 Assistant Treasurer
	 	 	 	 Title:
	 	 President & CEO

	 Date:
	 	 January 28, 2004
	 	 	 	 Date:
	 	 February 10, 2004

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
 23 

  
 Schedule 1 

Definitions 
  
 When used as capitalized terms in the License Agreement to which this Schedule 1 is attached, the following terms shall have the respective
meanings set forth below: 
  
 AAA has the meaning
specified in ARTICLE X. 
  
 Affiliate means with
respect to any person or Entity, any other person or Entity that controls, is controlled by or is under common control with the specified person or Entity. As used in this definition, the term control means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of an Entity, whether through ownership of voting securities, by contract or otherwise. 
  
 Agreement means the license agreement to which this Schedule 1 is attached, together with all
Schedules and Exhibits annexed thereto, as the same shall be modified and in effect from time to time. 
  
 Claim means any issued, unexpired, valid claim or pending claim contained in the Patent Rights issued within seven (7) years of the filing
date of the patent application from which it arose. For purposes of this definition, valid claim means any claim that shall not have been invalidated in a final decision rendered by a court of competent jurisdiction from which no
further appeal may be taken. 
  
 Confidential Information
means all information and data provided by the parties to each other hereunder in written or other tangible medium and marked as confidential, or if disclosed orally, confirmed in writing within thirty (30) days after disclosure, except any
portion thereof which: 
  

	 	(a)	is known to the receiving party, as evidenced by the receiving party’s written record, before receipt thereof under this Agreement; 

  

	 	(b)	is disclosed to the receiving party by a third person who has a right to make such disclosure; or 

  

	 	(c)	is or becomes generally known in the trade through no fault of the receiving party. 

  
 Current Market Value means, as to any issuance of equity by Licensee in connection with a Sublicense, (i) if
there is no public market for Licensee’s securities as of the date of the issuance, 120% of the then most recent per-share price that was paid in a substantial transaction by a bona fide third party in respect of Licensee equity and (ii) if the
issuance is Licensee’s initial public offering, the offering price of such securities to the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 
public and (iii) otherwise, the ten (business) day average of (A) the closing prices for such securities on any exchange for which such securities are listed
or (B) the average of the bid and ask prices of the securities in the Over the Counter Summary, in either case as published in the Wall Street Journal for the ten business days prior to the earlier of (1) the date the investment is made and (2) the
day before the first public disclosure of the investment on any major news or financial wire service. 
  
 Effective Date has the meaning set forth in the preamble to this Agreement. 
  
 Entity means any corporation, association, partnership (general or limited), joint venture, trust, estate,
limited liability company, limited liability partnership or other legal entity or organization. 
  
 Equity Agreement means the Stock Purchase and Registration Rights Agreement annexed hereto as Exhibit C. 
  
 Exclusive Period means the Term of the licenses granted
pursuant to Sections 2.01 (a) and 2.01 (b), unless earlier terminated by the University pursuant to Section 9.03 (a). 
  
 Field of Use has the meaning specified in the Term Sheet. 
  
 Government Rights means the rights of the United States of America, as set forth in Public Laws 96-517 and
98-620 (35 U.S.C. §200 et seq.) or any successor thereto, as well as federal regulations promulgated thereunder, all as modified and in effect from time to time. 
  
 Indemnitee has the meaning specified in Section 7.02. 
  
 Information means research results, toxicology data, assays,
preclinical data, prototypes, mask works, manufacturing processes including cell lines and unused, unexpired amounts of Products, clinical results, regulatory submissions, approvals and licenses, product licenses, customer lists, papers,
photographs, computer programs and databases, manuals, prototypes, models, plans, drawings, designs, formulations, specifications, methods, techniques, shop-practices, formulas, supplier lists, engineering information, price lists, costing
information, accounting and financial data, profit margin, marketing and sales data, and strategic plans related to the Patent Rights. 
  
 Initial Payment has the meaning specified in the Term Sheet. 
  
 Kit means any combination package of products or kit containing Licensed Products and Kitted Products.

  
 Kit Amount means the dollar amount billed in
respect of any Kit. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 Kit Deduction means in respect of any Kit: 
  

	 	(a)	if the Licensed Products and the Kitted Products are also sold separately and can be used separately, an amount equal to the product of the Kit Amount times the ratio of the gross
price of the Kitted Product divided by the sum of the gross prices of the Kitted Products and Licensed Products that comprise the Kit; by way of further explanation, the formula is: 

  

					
	 A * B/(B + C)
	  	 
		
	 where:
	 	A= Kit Amount (the dollar amount billed in respect of any Kit)
		
	 	 	B= Gross price of Kitted Products in the Kit
		
	 	 	C= Sum of the gross prices of Licensed Products in the Kit;

  

	 	(b)	if only the Licensed Products are also sold separately, the amount by which the Kit Amount exceeds the sum of the gross prices of the Licensed Products included in the Kit; by way
of further explanation, the formula is: 

  

			
	 	  	A-B
		
	 where:
	  	A= Kit Amount (the dollar amount billed in respect of any Kit)
		
	 	  	B= Sum of the gross prices of Licensed Products in the Kit;

  

	 	(c)	otherwise, zero, except as approved in writing by the University; 

  
 provided that (i) gross price and separate availability of any Licensed Product and Kitted Product shall, for purposes of this definition, be determined by
reference to substantial separate sales during the calendar quarter in which the Kit Amount is included in Net Sales (at the earliest of invoice, shipment or payment); and (ii) in no event shall the Kit Deduction be more than 50% of the Kit Amount.

  
 Kitted Product means any active product other
than Licensed Products included in a Kit. 
  
 Licensee means the person or Entity so identified in the preamble to the Agreement, and its Affiliates. 
  
 Licensed Process means any Patent-Based Process and any Technology-Based Process. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 Licensed Product means any Patent-Based Product and any Technology-Based Product.

  
 Licensee Fiscal Year has the meaning set forth
in the Term Sheet. 
  
 Licensee Notice Address means
the address so identified in the Term Sheet. 
  
 Lump Sum
means any amount payable by any Sublicensee to Licensee, including without limitation, (a) any technology access fee or license issue or maintenance fee or milestone payment; or (b) purchases of equity in Licensee to the extent the amount
received in respect of any such equity purchase exceeds the then Current Market Value of such equity; provided, that Lump Sum shall not include any amount in respect of which Licensee pays to the University a Running Royalty or required
amounts under Section 4.02 (Research Support). 
  
 Lump Sum
Percentage has the meaning set forth in the Term Sheet.  
  
 Milestone means each of the events so identified in the Term Sheet. 
  
 Milestone Date means for any Milestone, the date appearing opposite such Milestone in the Term Sheet. 
  
 Milestone Payment means for any Milestone, the dollar amount
appearing opposite such Milestone in the Term Sheet. 
  
 Minimum Royalty Amount means for (a) any year identified in the Term Sheet under the phrase “Minimum Royalty Amount,” the dollar amount appearing opposite the designation of such year and (b) any year thereafter
during the Exclusive Period, an amount equal to the highest Minimum Royalty Amount for any previous year and (c) any year after the termination of the Exclusive Period, zero. 
  
 Net Sales means all gross amounts billed to any person or Entity (other than an Affiliate of Licensee or any
Sublicensee) by Licensee or any Sublicensee at the earliest of invoice, shipment or payment in respect of Licensed Products and Licensed Processes, without regard to whether the intended use is testing, including, without limitation, all Kit
Amounts, less the sum of the following amounts: 
  

	 	(a)	sales and use taxes, tariffs, duties and the like imposed directly and with reference to particular sales or leases; plus 

  

	 	(b)	outbound shipping prepaid or actually allowed; plus 

  

	 	(c)	amounts allowed on credits or returns; plus 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

	 	(d)	discounts allowed in amounts customary in the trade; plus 

  

	 	(e)	all Kit Deductions; 

  
 provided that (i) no deductions shall be made in respect of (A) commissions paid to salespersons or sales agencies (without regard to whether employed by Licensee or any Sublicensee or engaged as an independent
contractor) or (B) the cost of collections; and (ii) solely to the extent necessary to avoid duplicative Royalties, in any case in which Licensee and one or more Sublicensees (a Billing Entity) each accrue what
would be Net Sales in respect of the same instance of a Licensed Product or Licensed Process (a Unit), there shall be included in Net Sales only the highest amount billed as among the multiple billings in respect of such
Unit and there shall be excluded from Net Sales all billings in respect of such Unit by all other Billing Entities. The proviso set forth in clause (ii) hereof is not intended to exclude multiple billings by any one Billing Entity in respect
of the same Unit (and all such multiple billings by each Billing Entity shall be aggregated for the purpose of determining which is the highest Billing Entity in respect of such Unit). 
  
 Noncommercial Rights has the meaning set forth in Section 2.04 of the Agreement. 
  
 Patent-Based Process means any process that is covered in whole
or in part by a Claim in the country in which it is used or practiced. 
  
 Patent-Based Products means any product or product part that (a) is covered in whole or in part by a Claim in the country in which it is made, used, sold or leased or (b) is manufactured by using a Patent-Based Process or (c)
is employed to practice a Patent-Based Process. 
  
 Patent-Based Royalty Percentage has the meaning set forth in the Term Sheet. 
  
 Patent Costs means all fees and expenses, including without limitation, all attorneys fees, patent filing fees, travel costs of University
employees to patent examiner interviews and maintenance fees incurred in respect of the Patent Rights and paid by University after the Effective Date. 
  
 Patent List means Exhibit A and Exhibit B annexed hereto as they may be amended and in effect from time to time.

  
 Patent Rights means all of the following
University intellectual property: 
  

	 	(a)	all United States and foreign patents, patent applications and provisional applications identified in the Patent List; 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 28 

	 	(b)	all United States and foreign patents issued with respect to the applications identified in the Patent List and with respect to divisionals and continuations of these applications;

  

	 	(c)	claims of United States and foreign continuation-in-part applications, and of resulting patents, that are directed to subject matter described in the United States and foreign
applications identified in the Patent List. 

  

	 	(d)	claims of all foreign patent applications and of the resulting patents that are directed to the subject matter described in the United States patents and patent applications
described in clauses (a), (b) or (c) hereof; and 

  

	 	(e)	any reissues of United States patents described in (a), (b) or (c) hereof. 

  
 Prior Patent Costs means all fees and expenses, including without limitation, all attorneys fees, patent filing fees, travel costs of University
employees to patent examiner interviews and maintenance fees incurred in respect of the Patent Rights and paid by University prior to the Effective Date. 
  
 Research Support Percentage has the meaning set forth in the Term Sheet.  
  
 Royalties has the meaning set forth in Section 4.01. 
  
 Running Royalty Amount means in respect of any calendar quarter during the Term, the sum of: 
  

	 	(a)	The product of Net Sales of Patent-Based Products and Patent-Based Processes for such quarter times the Patent-Based Percentage; plus 

  

	 	(b)	The product of Net Sales of Technology-Based Products and Technology-Based Processes for such quarter times the Technology-Based Percentage; 

  
 provided, that (i) no portion of any Net Sales shall be included in the calculations
under both clauses (a) and (b) hereof; and (ii) if any portion of any Net Sales could be so double-counted, such portion shall be included only in the calculation under clause (a) hereof. 
  
 Sublicense means any license or right granted by Licensee to any person or Entity (and any such license or
right granted by such person or Entity to any other person or Entity) (a) to make, have made, use, lease or sell Licensed Products, (b) to practice Licensed Processes or (c) to use the Technology, together with all agreements between the parties
related thereto. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 Sublicense Revenues means all revenues received by Licensee or an Affiliate from a
Sublicensee pursuant to a sublicense to the Licensed Products, Licensed Processes or Technology, an option for a sublicense to the Licensed Products, Licensed Processes or Technology, or a similar agreement providing for the exploitation of the
Licensed Products, Licensed Processes or Technology, in each case granted pursuant to Section 2.01 hereof, including license issue fees, license maintenance fees, milestone fees and royalties, but excluding equity investments in Licensee, any funds
received by Licensee for the conduct of research and development, payments received for manufacturing, and the reimbursement of costs and expenses. 
  
 Sublicensor means any person or Entity (including without limitation, Licensee) who grants a Sublicense. 
  
 Sublicensee Any person or Entity to whom a Sublicense is
granted. 
  
 Technology means all documented
Information (without regard to whether it is Confidential Information) that relates to the Patent Rights but is not the subject of Claims in the country where the product or process based thereon or covered thereby is made, used, sold or leased,
including without limitation, 
  

	 	(a)	inventions that are the subject of patent applications listed in the Patent List for which patents do not issue or are invalidated (from and after the date a final determination is
made from which no further appeal may be taken); 

  

	 	(b)	inventions that directly relate to the Patent Rights but do not infringe a Claim; 

  

	 	(c)	from and after the abandonment of a Claim or after the removal of a patent from the list of Patent Rights, inventions formerly covered thereby; and 

  

	 	(d)	in countries where the parties hereto have agreed that obtaining patent protection is not economically viable, all inventions that directly relate to the Patent Rights.

  
 Technology-Based Process means any
process covered by or developed using the Technology. 
  
 Technology-Based Product means any product or product part that (a) is covered by or developed using any Technology or (b) is manufactured by using any Technology-Based Process or (c) is employed to practice a Technology-Based
Process. 
  
 Technology-Based Royalty Percentage has
the meaning set forth in the Term Sheet. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 Term means with respect to any license granted by the University under this Agreement, the
period beginning on the Effective Date and terminating on the earlier of (a) the termination of this Agreement pursuant to ARTICLE IX or (b) the termination of such license pursuant to Sections 9.01, 9.02 or 9.03, as appropriate. 
  
 Term Sheet means Schedule 2 annexed hereto.

  
 Territory has the meaning specified in the Term
Sheet. 
  
 University means Trustees of Boston
University, a Massachusetts corporation. 
  
 University
Hospitals means a research or teaching hospital affiliated with Boston University, namely Boston Medical Center. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 Schedule 2 

Term Sheet 
  

			
	University Case Number:	  	BU_01-36
	University Case Title:	  	[********************************************
**********************]
		
	Licensee Name:	  	Coley Pharmaceutical Group, Inc.                     
	Entity Type:	  	C-type Corporation                                  
                   
	State or Country of Organization:	  	Delaware
                                       
 
	Licensee Fiscal Year:	  	Calendar year
                                        
                    
	Licensee Notice Address:	  	93 Worcester Street, Wellesley, MA 02481         
	 Prior Patent Costs incurred as of
 July 31,
2003                 :
	  	$[*********]
                                
	Initial Payment:	  	$[*********]
                                
	Minimum Royalty Amounts, creditable as provided in Section 4.01(i):	  	 
	 2005
	  	$[*********]                         
	 2006
	  	$[*********]                         
	 2007
	  	$[*********]                         
	 2008-2012
	  	$[*********]                         
	Patent-Based Royalty Percentage:	  	[*****]          % as provided in Section 4.01(b)(i-v)
	Technology-Based Royalty Percentage :	  	[**]          % of Patent-Based Royalties as provided
in Section 4.01(c)
		
	Field of Use:	  	All human and veterinary applications         
	Territory:	  	worldwide
                                        
                        

  

						
	 Milestone

	  	 Date

	 	Payment

	Submit Business Plan for Licensed Products	  	    /    /     -	 	 	 
	 	  	    /    /     -	 	 	 
	 	  	    /    /     -	 	 	 
			
	 Filing of IND Application
	  	    /    /     -	 	$	[*********]        
			
	 Filing for Approval for Marketing
	  	    /    /     -	 	 	 
	 	  	    /    /     -	 	$	[*********]            

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  

  
 EXHIBIT A 
 US PATENT RIGHTS 
  

									
	BU Docket Attorney Docket

	 	USSN/ Patent

	 	Title

	 	Inventors

	 	Filed/Issued

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  

  
 EXHIBIT B 
 FOREIGN PATENT RIGHTS 
  

									
	BU Docket Attorney Docket

	 	USSN/ Patent

	 	Title

	 	Inventors

	 	Filed/Issued

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

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

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