Document:

License Agreement, dated February 3, 2000

 Exhibit 10.2 
  
 Confidential Materials omitted and filed separately with the 
 Securities and Exchange Commission. Asterisks denote omissions. 
  
 LICENSE AGREEMENT 
  
 AGREEMENT made this 3rd day of February, 2000 (the “Effective Date”) by and between VION PHARMACEUTICALS, INC., a Delaware corporation with its principal office located at Four Science Park, New Haven, Connecticut
(“Licensor”), and ACHILLION PHARMACEUTICALS, INC., a Delaware corporation with its principal office located at 281 Chestnut Hill Road, Killingworth, Connecticut (“Licensee”). 
  
 WITNESSETH: 
  
 WHEREAS, pursuant to the terms of a certain License Agreement, dated as of August 31, 1994, as amended, by and between
Yale University (“Yale”) and Licensor (the “Yale License Agreement”), Yale has licensed to Licensor certain inventions relating to, among other things, potential anti-viral compounds, including ß-L-FD4C; 
  
 WHEREAS, pursuant to and in accordance with the terms of the Yale License
Agreement, Licensor may grant sublicenses to Licensor’s rights in the licensed inventions; 
  
 WHEREAS, pursuant to Amendment No. 4 to the Yale License Agreement, dated as of the date hereof, Yale and Licensor have agreed to grant Licensee a
sublicense in certain inventions relating to ß-L-FD4C; 
  
 WHEREAS, Licensee wishes to obtain a license to such inventions and certain related inventions, and Licensor is willing to grant such a license to Licensee subject to the terms and conditions hereof; 

 NOW, THEREFORE, in consideration of the mutual covenants herein contained the parties agree as follows:

  

	1.	DEFINITIONS 

  
 As used in this Agreement, the following terms shall be defined as set forth below 
  
 1.1 “Act” shall mean the United States Federal Food, Drug & Cosmetic Act (21 U.S.C.
§§301 et seq.) and the regulations promulgated thereunder. 
  
 1.2 “Affiliate” shall mean any person or entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, a party.
“Control” means the direct or indirect (a) legal or beneficial ownership of more than fifty percent (50%) of the outstanding voting rights of such person or entity or (b) power or ability to direct the management or policies
of such person or entity. 
  
 1.3 “Common Stock”
shall mean Licensee’s common stock, par value $.001 per share. 
  
 1.4 “Compound” shall mean a single, defined chemical entity or structure. 
  
 1.5 “Designee” shall mean Yale, Licensor’s designee for the receipt of Earned Royalties and License Fees. 
  
 1.6 “Earned Royalties” shall mean Royalties and Sublicense
Income. 
  
 1.7 “FDA” shall mean the United
States Food and Drug Administration or any successor agency having the administrative authority to regulate the approval for testing or marketing of human pharmaceutical or biological therapeutic products in the United States or the comparable
authority in any other country. 
  
 1.8 “IND”
shall mean an investigation new drug application filed with the FDA prior to beginning clinical trials in humans or any comparable application filed with regulatory authorities in or for a country or group of countries other than the United States.

  

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 1.9 “Invention” shall mean each of the inventions claimed in the Licensed Patents or
included in the Licensed Technology. 
  
 1.10 “License
Fee” shall have the meaning set forth in Section 3.1 of this Agreement. 
  
 1.11 “Licensed Information” shall mean designs, technical information, trade secrets, information contained in manuscripts or invention disclosure forms, data, specifications, test results and other
information, whether or not patentable, that are useful for the development, commercialization, manufacture, use or sale of any Licensed Products. For purposes of this Section 1.11 and Section 1.12 below, “control” means the
possession of the ability to grant a license or sublicense thereto as provided for herein without violating the terms of any agreement with, or the rights of, any third party, in each case, in existence on the date hereof. 
  
 1.12 “Licensed Patents” shall mean the patents and patent
applications listed on Exhibit A and any other United States or foreign patent applications(s) and patents(s) licensed to Licensor by Yale pursuant to the Yale License Agreement during the term of this Agreement pertaining specifically to the
compound, ß-L-FD4C, together with any foreign counterparts, continuations, continuations-in-part, divisional or substitute patents, any reissues or reexaminations of any such applications or patents, and any extension of any such patents
including the patents and patent applications listed on Exhibit B; and all patents and patent applications filed on or on behalf of Yale or Licensor or issued during the term hereof to Yale or Licensor for any improvements on, or derivations
from, the Inventions that pertain specifically to the compound ß-L-FD4C and are useful for the development, commercialization, manufacture, use or sale of any Licensed Products. 
  

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 1.13 “Licensed Products” shall mean all products that may derive from or which result
from the manufacture and production or use of a claim of the Licensed Patents or incorporate Licensed Technology, wherever sold. 
  
 1.14 “Licensed Technology” shall mean Licensed Information and Licensed Patents. 
  
 1.15 “NDA” shall mean a new drug application for a Licensed
Product filed with the FDA to obtain marketing approval in the United States or any comparable application filed with regulatory authorities in or for a country or group of countries other than the United States. 
  
 1.16 “Net Sales” shall mean gross revenues from the sales,
lease or other disposition of the Licensed Products actually received by Licensee, its Affiliates, or permitted sublicensees on such disposition to unaffiliated third parties, less, to the extent actually paid or allowed: (a) repayments,
allowances or credits to such unaffiliated third parties for returned or defective Licensed Products; (b) freight, transportation, delivery, taxes and insurance costs incurred in transporting such Licensed Products to such unaffiliated third
parties; (c) quantity and other trade discounts fairly attributable to the Licensed Products; (d) rebates or chargebacks attributable to the Licensed Products; (e) sales, value-added, use and other direct taxes (other than income);
and (f) customs and tariff duties and surcharges and other governmental charges incurred in connection with the exportation or importation of the Licensed Products. 
  
 1.17 “Phase I” shall mean a human clinical trial approved by the FDA with the aim of establishing the
pharmacokinetic, pharmacodynamic and early safety profile of a Licensed Product. 
  
 1.18 “Phase II” shall mean the first human clinical trial approved by the FDA where a Licensed Product is tested in a number of either sick or healthy patients and the data from which 

  

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can be established in the aggregate efficacy of the Licensed Product for the indication for which regulatory approval is sought. 
  
 1.19 “Proprietary Information” shall mean: all know-how,
inventions, and trade secrets, whether or not patentable, preclinical and clinical test data, and marketing information that is disclosed by either party or one of its Affiliates to the other party, either (i) in writing and marked
“Confidential,” “Proprietary,” or the like, or (ii) orally, and confirmed in writing within sixty (60) days after such disclosure, unless such information: (a) is or becomes public knowledge through no fault of the
receiving party; (b) is in the future legally received by the receiving party from a third party free of any obligation of confidentiality; (c) is legally in the possession of the receiving party free of any obligation of confidentiality
and prior to receipt from the disclosing party, which possession shall be proven by documentary evidence; or (d) is independently developed by the receiving party, which independent development shall be proved by documentary evidence.

  
 1.20 “Registration” shall mean the written
approval of the FDA or the comparable authority in any other country required for the marketing and sale of the first Licensed Product. 
  
 1.21 “Royalty” shall have the meaning set forth in Section 3.2(a). 
  
 1.22 “Royalty Year” shall mean each twelve-month period commencing January 1 and ending
December 31 during the term of this Agreement. For the first year of this Agreement, the Royalty Year shall be the period of time between the signing of this Agreement and December 31. 
  
 1.23 “Sublicense Fees” shall have the meaning set forth in
Section 3.3(a). 
  
 1.24 “Sublicense Income”
shall have the meaning set forth in Section 3.3(a). 
  
 1.25
“Sublicense Royalties” shall have the meaning set forth in Section 3.3(a). 
  

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 1.26 “Successful Completion of Phase II” shall mean the conclusion of an end of
Phase II meeting that results in a determination by the FDA that Licensee may proceed to Phase III clinical trials of a Licensed Product subject only to the development and refinement of Phase III protocol. 
  

	2.	GRANT OF LICENSE 

  
 2.1 License Grant. Licensor hereby grants to Licensee a non-transferable, worldwide, exclusive license under the Licensed Technology to make, have
made, import, export, use, sell and have sold Licensed Products and practice the Inventions. 
  
 2.2 Sublicenses. Licensee shall have the right to sublicense the rights granted hereunder to third parties subject to Yale’s prior written consent which shall not be unreasonably withheld or delayed;
provided, that, (a) prior notice shall be given to Licensor; (b) Licensee shall remain primarily liable for the performance of such sublicensees; and (c) each sublicensee shall enter into a written sublicense agreement having
substantially the same obligations toward Licensor and Yale as those provided herein. All sublicenses hereunder granted by Licensee shall be coterminable with this Agreement. 
  
 2.3 Yale’s Retained Rights. Licensee hereby acknowledges that Yale has retained the right to make, use and
practice the Inventions for its own non-commercial purposes. 
  
 2.4 Publication. The parties recognize that Yale may wish to publish scientific papers or otherwise disseminate results arising from its research. Notwithstanding this, should the content of any proposed submission for publication,
or dissemination relate to the Inventions, Yale shall provide a copy (or in respect of an oral disclosure, a summary of the intended disclosure) to Licensee at least thirty (30) days before the proposed submission, publication or dissemination.
Yale shall delay submission, publication, or dissemination for a period of up to 30 days from the date on which details of the matter to be disseminated were disclosed to 

  

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Licensee, at the request of Licensee, in order to permit Licensee to review the publication or dissemination to determine (i) whether such publication
contains potentially patentable material pursuant to Section 2.3 herein, or (ii) whether such publication contains Proprietary Information of Licensor and/or Licensee; provided, however, that any portions of the publication
or dissemination that do not contain such information shall not be subject to any delay in submission, publication or dissemination. Any request for a delay shall be within thirty (30) days of receipt of such information. In any event, the
parties shall use reasonable efforts to keep such delays to a minimum. If the parties fail to agree on any further delays beyond the initial period, Yale shall be free to proceed with submission, publication or dissemination. 
  

	3.	LICENSE FEES AND ROYALTIES 

  
 3.1 License Fees and Milestones. As partial consideration for the rights granted hereunder, Licensee shall make the following payments: 

 
 (a) Licensee shall issue to Licensor 50,000 shares of Common Stock on the
Effective Date; 
  
 (b) a non-refundable initial license fee of
Ten Thousand US dollars ($10,000) on the Effective Date; 
  
 (c) a
non-refundable milestone payment of [**] US dollars ($[**]) upon the first IND filing of each Licensed Product; provided, however, that this milestone payment shall be paid by Licensee only for the first Licensed Product based on a
particular Compound and not for any other Licensed Product based on the same Compound; 
  
 (d) a non-refundable milestone payment of [**] US dollars ($[**]) upon any Successful Completion of Phase II of each Licensed Product; 
  
 (e) a non-refundable milestone payment of [**]US dollars ($[**]) upon the first NDA filing of each Licensed Product; and

  

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 (f) a non-refundable milestone payment of [**] US dollars ($[**]) upon Registration of each Licensed
Product. 
  
 The payments listed in Sections 3.1(b) - (g) above shall be
referred to herein as the “License Fees”. All payments listed in this Section 3.1 (in cash or stock) shall be separate from and not credited against any Earned Royalties. The License Fees shall be paid directly to Designee.

  
 3.2 Royalties on Sales by Licensee and/or Affiliates.

  
 (a) Licensee shall pay directly to Designee a royalty for the
sale of Licensed Products by Licensee and/or its Affiliates (including distributors that are Affiliates) to unaffiliated third parties at a royalty rate of [**] percent ([**]%) of Net Sales (the “Royalty”). 
  
 (b) In the event that Licensee must pay royalties to an unaffiliated third
party on a Licensed Product, Licensee may credit up to [**] percent ([**]%) of the royalties due to the unaffiliated third party on the Licensed Product against royalties payable to Designee for the sale of the same Licensed Product; provided, that,
in no event shall the royalties due Designee from Licensee on any Licensed Product be less than [**]% of Net Sales. 
  
 (c) In the event that Licensee must pay royalties to Emory University (“Emory”) on a Licensed Product incorporating ß-L-FD4C technology
contained in United States Patent Number 5,703,058, licensed to Licensee by Emory, then such royalties shall be credited against the royalties due Designee by Licensee on the same Licensed Product, provided, that such credited amount shall not
exceed: (i) [**]% of Net Sales; or (ii) the royalty rate payable to Licensee by Emory on a Licensed Product incorporating ß-L-DDA technology contained in United States Patent Application Number [**] licensed to Emory by Licensee (the
“ß-L- DDA Technology”). In the event royalties are payable by Emory on a Licensed Product incorporating 

  

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ß-L-DDA Technology, then Licensee shall cause Emory to pay such royalties directly to Designee. 
  
 (d) Licensed Products shall be deemed to have been sold when payment is
received by Licensee; provided, however, that any payment or other like benefit received by Licensee, in cash or otherwise, constitutes Net Sales and is therefore subject to Royalties; and provided, further, that no
Royalties shall be due on Licensed Products that are distributed for clinical testing or promotional purposes. In the event that Licensee shall transfer Licensed Products to an Affiliate, then the price charged by the Affiliate to third parties
shall be included in Licensee’s gross sales (instead of the transfer price by the Licensee to such Affiliate). 
  
 3.3 Sublicense Income. 
  
 (a) In the event Licensee sublicenses rights hereunder to one or more unaffiliated third parties, Licensee shall pay directly to Designee: (i) [**]
percent ([**]%) of the Gross Amounts Received by Licensee, directly or indirectly, for or on account of the sublicenses, without deduction of any kind (the “Sublicense Fees”); and (ii) a royalty for the sale of Licensed Products by
the permitted sublicensee(s) to unaffiliated third parties equal to [**] percent ([**]%) of the payments made by the permitted sublicensee(s) to Licensee but not less than [**]percent ([**]%) of each sublicensees’ Net Sales (the
“Sublicense Royalties” and collectively with the Sublicense Fees, the “Sublicense Income”). For purposes of this Section 3.3(a), “Gross Amounts Received” shall include all cash and equity payments made in
connection with the sublicense (other than royalty payments which are addressed in Section 3.3(a)(ii)), including, but not limited to, license initiation fees and milestones but shall exclude full-time equivalent scientist support. 

 

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 (b) In addition, if [**] enters into an agreement as a commercial partner for Licensed Product within
[**] of the Effective Date, Sublicense Income will increase by [**] percent ([**]%) (that is, Licensee will pay Designee [**]5x the amounts set forth in Section 3.3(a) above). 
  
 (c) In the event that Licensee transfers Licensed Products to a permitted sublicensee, then the price charged by the
sublicensee to third parties shall be included in the permitted sublicensee’s gross sales for purposes of Sections 3.3(a) and (b) above (provided that no amount shall be included in such gross sales more than once). 
  

	4.	PAYMENTS AND REPORTS 

  
 4.1 Royalty Term. In the event that any Licensed Patent expires, lapses or if all of its claims are finally declared invalid by a non-appealable
decision of a court of competent jurisdiction through no fault or cause of Licensee in any country or countries, this Agreement shall terminate on a country-by-country basis on the fifteenth (15th) anniversary of the Effective Date of this Agreement with respect to those Licensed Products covered by said Licensed Patents if the Licensed Product is
not covered by any remaining Licensed Patents or claims thereunder, but the Licensed Product continues to incorporate Licensed Technology. This Agreement shall remain in effect as to any other Licensed Products covered by any remaining Licensed
Patents or claims thereunder. 
  
 4.2 Royalty Adjustment on
Loss of Patent Coverage. In the event that a Licensed Patent expires, lapses or if all of its claims are finally declared invalid by a non-appealable decision of a court of competent jurisdiction through no fault or cause of Licensee in any
country or countries, the obligation to pay Earned Royalties on any Licensed Product covered by that Licensed Patent shall be reduced on a country-by-country basis by one-half if the Licensed Product is not covered by any remaining Licensed Patents
or claims thereunder, but the Licensed 

  

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Product continues to incorporate Licensed Technology. This Agreement shall remain in effect as to any other Licensed Products covered by any remaining
Licensed Patents or claims thereunder. 
  
 4.3 Royalty
Reports. Within [**] after the end of each calendar quarter, Licensee shall furnish to Licensor a written report (the “Royalty Report”) setting forth (i) the gross sales of Licensed Products, (ii) the deductions allowable
under Section 1.15 in calculating Net Sales, (iii) Net Sales, (iv) the Royalty, and (v) the Sublicense Income, accompanied by full payment of the Earned Royalty due and payable thereon. 
  
 4.4 Payment of License and Sublicense Fees. All License Fees shall be
paid to Designee, at Licensee’s discretion, either in Common Stock at the Fair Market Value or in cash in U.S. dollars. Each of the Sublicense Fees shall be paid to Designee directly out of the sublicense fees received by Licensee and in the
same form as the consideration received by Licensee. For purposes of this Section 4.3, “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: (i) if the Common Stock is listed on any
established stock exchange or a national market system including without limitation the National Market of the National Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”) System, its Fair Market Value shall be the
average closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such system or exchange for twenty (20) consecutive trading days ending (3) trading days before the date of such computation, as
reported in The Wall Street Journal; (ii) if the Common Stock is quoted on the Nasdaq System (but not on the National Market thereof) or regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market
Value shall be the average mean between the high bid and low asked prices for the Common Stock for twenty (20) consecutive trading days ending (3) trading days before the date of such determination; or (iii) in the absence of an
established market for the 

  

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Common Stock, the Fair Market Value thereof shall be the amount mutually agreed to by the parties in good faith but in no event higher than the valuation per
preferred share set in the Licensee’s last round of venture financing. 
  
 4.5 Currency. All Royalties and Sublicense Royalties shall be paid by Licensee in cash in U.S. dollars. All Royalty and Sublicense Royalty payments due hereunder shall be translated at the rate of exchange at
which U.S. dollars are listed in The Wall Street Journal for the currency of the country in which the Royalty or Sublicense Royalty is accrued for the last business day of the calendar quarter in which such sales were made. 
  
 4.6 Taxes. In each case, the payment of all License Fees shall be made
without deductions for taxes, assessments, fees or charges of any kind. In the event that Licensee is required to withhold any tax to the tax or revenue authorities in any country regarding any Royalty or Sublicense Income due to the laws of such
country, such amount shall be deducted from the Royalty or Sublicense Income to be paid by Licensee hereunder, and Licensee shall notify Yale and Licensor and promptly furnish Yale and Licensor with copies of any tax certificate or other
documentation evidencing such withholding. Each party agrees to cooperate with the other parties in claiming exemptions from such deductions or withholdings under any agreement or treaty from time to time in effect. 
  
 4.7 Books and Records. Licensee and its sublicensees shall keep and
maintain complete and accurate records and books of account in sufficient detail and form so as to enable verification of Earned Royalty payable by Licensee hereunder. Such records and books of account shall be maintained for a period of no less
than three (3) years following the Royalty Year to which they pertain. Licensee shall permit such records and books of account to be examined by an independent accounting firm who agrees to hold the information disclosed 

  

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confidential and to disclose to Licensor and Yale only the results of the audit to enable Licensor and Yale to verify the amounts payable hereunder. Such
examination shall be made no more than once annually and shall be at the expense of the person undertaking the audit, during normal business hours, and upon thirty (30) days’ prior written notice to Licensee. In the event that Licensee
underpaid the amounts due to Licensor by more than five percent (5%), Licensee shall forthwith pay the reasonable cost of such examination, together with the deficiency not previously paid. 
  

	5.	PATENTS 

  
 5.1 Patent Prosecution. Licensee shall, at its expense, prosecute and maintain the Licensed Patents. Any submission that may adversely affect the
scope of the Inventions’ patent protection shall be subject to the prior written approval of Yale and Licensor which approval shall not be unreasonably withheld or delayed. Yale and Licensor shall cooperate fully with Licensee in the
preparation, filing, and prosecution of all patent applications filed pursuant to this Section. No compensation shall be due to Yale or Licensor in fulfilling these obligations. If Licensee does not agree to bear the expenses of filing, prosecuting
or maintaining patent applications or patents in any foreign country in which Yale or Licensor wishes to obtain or maintain patent protection for the Inventions then Yale or Licensor may file, prosecute or maintain such patent applications or
patents at their own expense and may terminate Licensee’s license to the Licensed Patents in such country or countries; provided, that, as long as there is no filing deadline that, if not satisfied, could adversely affect the Licensed Patent,
Yale or Licensor has given Licensee at least [**] prior written notice and an opportunity to cure within such [**] period. 
  

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 5.2 Patent Marking. Licensee shall apply, and shall require sublicensees to apply, patent marking
notices to the extent feasible and practical, and in accordance with applicable patent laws. 
  
 5.3 Enforcement of Patents. Upon learning of the possible infringement of any of the Licensed Patents by a third party, each party shall inform the other party of that fact, and shall supply the other party
with any evidence available to it pertaining to the infringement. Licensee shall have the first right (but not the obligation) to defend the Licensed Patents against infringement or interference by any third party at its own expense and in the name
of Licensor and Yale, including bringing any legal action for infringement or defending any counterclaim of invalidity or action of a third party for declaratory judgment of non-infringement or interference. Licensee may settle any such actions
solely at its own expense and through counsel of its selection; provided, however, that Yale and Licensor shall be entitled in each instance to participate through counsel of their own selection at their own expense and any settlement
shall not be entered without Yale’s prior written consent which shall not be unreasonably withheld or delayed. Neither Yale nor Licensor shall have any obligation or responsibility with respect to any such actions unless legally required to
participate, except to provide reasonable assistance to Licensee as requested, and Licensee shall reimburse Licensor and Yale for their out-of-pocket expenses in connection with any such requested assistance. Any recovery obtained as a result of
such action, whether by judgment, award, decree or settlement, shall first be applied to reimbursement of each party’s reasonable out-of-pocket expenses in bringing such suit or proceeding (including any advisory counsel), and Licensee shall be
entitled to retain the balance, if any; provided, that, the excess of such recoveries over such expenses shall be included in Licensee’s Net Sales for the purpose of determining Royalties payable herein. In the event 

  

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Licensee fails to initiate and pursue or participate in such legal action within sixty (60) days, both Yale and Licensor shall have the right to
initiate legal action at their own expense to uphold the Licensed Patents against third parties in the name of Licensee, in which case, Licensee shall provide reasonable assistance to Yale and Licensor as requested, and the party or parties
initiating legal action shall reimburse Licensee for its out-of-pocket expenses in connection with any such requested assistance. Yale or Licensor, as the case may be, may settle any such actions solely through counsel of its selection;
provided, however, that any settlement that concerns the validity or scope of any Licensed Patents shall not be entered without Licensee’s prior written consent which shall not be unreasonably withheld or delayed. Any recovery
obtained as a result of such action, whether by judgment, award, decree or settlement, shall first be applied to reimbursement of each party’s reasonable out-of-pocket expenses in bringing such suit or proceeding (including any advisory
counsel), and the party or parties initiating such action shall be entitled to retain the balance, if any. 
  
 5.4 Defense of Patent Claims. Licensee shall defend at its own expense any actions brought against it, its Affiliates or sublicensees or Licensor
or Yale alleging that Licensed Products manufactured, used, or sold by Licensee, its Affiliates, or sublicensees infringe any claim of any patent or other proprietary right and shall pay all damages and costs finally awarded in such actions;
provided, that nothing herein shall be deemed to waive any claim of Licensee for breach by Licensor or Yale of Section 8.1 or 8.2, respectively. In connection with such matters, Yale and Licensor shall provide reasonable assistance to
Licensee and Licensee shall have the sole control over the defense and settlement of such claims; provided, however, that Yale and Licensor shall be entitled in each instance to participate through counsel of their selection at their

  

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own expense and any settlement which concerns the validity of any Licensed Patents shall not be entered without Yale’s prior written consent which shall
not be unreasonably withheld. 
  

	6.	DUE DILIGENCE IN COMMERCIALIZATION 

  
 6.1 Within ninety (90) days of the date hereof, Licensee shall deliver to Licensor and Yale a detailed research and development plan, reasonably
acceptable to Yale and Licensor, setting forth appropriate research and development, testing and production efforts directed toward commercialization of the Licensed Products (the “Research and Development Plan”). Licensee shall implement
the Research and Development Plan at the earliest practical date consistent with sound scientific and business judgment. 
  
 6.2 Each of Yale and Licensor shall be entitled to terminate this Agreement in accordance with Section 11.2(f) if Licensee fails to:
(a) implement the Research and Development Plan within ninety (90) days after the Plan has been provided to Licensor and Yale in accordance with Section 6.1; or (b) commence Phase I within two (2) years of the date
hereof, unless such failure is excused by (i) Licensor’s or Yale’s failure to meet its obligations hereunder; (ii) infringement of third party patents or proprietary rights; or (iii) actions or inaction of any federal or
state agency whose approval is required for commercial sales. 
  
 6.3 Licensee shall provide periodic status reports to Licensor and Yale, at least annually, indicating progress and problems to date in commercialization, and a forecast and schedule of major events required to market the Licensed Products.

  
 6.4 If at any time Licensee abandons or suspends its
development or marketing of the Licensed Products for a period exceeding ninety (90) days, Licensee shall immediately notify Licensor and Yale giving reasons and a statement of its intended actions. If Licensor and/or Yale are not reasonably
satisfied with Licensee’s stated reasons and intended actions and such 

  

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abandonment or suspension is not excused by an event described in Section 12.2 below, Licensor may terminate this Agreement in accordance with
Section 11.2(f) below. 
  

	7.	USE OF NAME 

  
 Except as required by applicable law (including, but not limited to securities laws), Licensee shall not use the name “Yale” or “Yale
University” or “Vion” or “Vion Pharmaceuticals” for any purpose without prior written consent obtained from Yale or Licensor, as the case may be, in each instance. Except as required by applicable law (including, but not
limited to securities laws), neither Yale nor Licensor shall use the name “Achillion” or “Achillion Pharmaceuticals” for any purpose without the prior written consent obtained from Achillion in each instance. 
  

	8.	REPRESENTATIONS AND WARRANTIES 

  
 8.1 Licensor Representations. Licensor represents and warrants to Licensee that: 
  
 (a) Licensor (i) has the sole right to grant licenses hereunder, and (ii) has not granted licenses to any other
entity to practice the Licensed Patents or Inventions; 
  
 (b)
Licensor has not received any notice or claim asserting, and has no knowledge of, any infringement, conflict or interference in respect of the practice, or the proposed practice of the Licensed Patents; 
  
 (c) This Agreement has been duly authorized, executed, and delivered by
Licensor and is a valid, binding, and legally enforceable obligation of Licensor, subject to applicable bankruptcy, insolvency, moratorium, and other laws now or hereafter in effect affecting the rights of creditors generally, and subject (as to the
enforcement of remedies) to equitable principles; 
  

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 (d) No consent, approval, authorization, or order of any court or governmental agency or body or any
other person is required for the consummation by Licensor of the transactions contemplated by this Agreement; and 
  
 (e) The execution, delivery, and performance of this Agreement by Licensor will not result in a breach or violation of, or constitute a default under, any
statute, regulation, or other law or agreement or instrument to which it is a party or by which it is bound, or any order, rule, or regulation of any court or governmental agency or body having jurisdiction over it or any of its properties.

  
 8.2 Yale Representations. Yale represents and warrants
to Licensee that: 
  
 (a) Yale (i) has granted the sole right
to grant licenses hereunder to Licensor pursuant to the Yale License Agreement, and (ii) has not granted licenses to any other entity other than Licensor to practice the Licensed Patents or Inventions; 
  
 (b) Yale has not received any notice or claim asserting, and has no knowledge
of, any infringement, conflict or interference in respect of the practice, or the proposed practice of the Licensed Patents; 
  
 (c) This Agreement has been duly authorized, executed, and delivered by Yale and is a valid, binding, and legally enforceable obligation of Yale, subject
to applicable bankruptcy, insolvency, moratorium, and other laws now or hereafter in effect affecting the rights of creditors generally, and subject (as to the enforcement of remedies) to equitable principles; 
  
 (d) No consent, approval, authorization, or order of any court or
governmental agency or body or any other person is required for the consummation by Yale of the transactions contemplated by this Agreement; and 
  

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 (e) The execution, delivery, and performance of this Agreement by Yale will not result in a breach or
violation of, or constitute a default under, any statute, regulation, or other law or agreement or instrument to which it is a party or by which it is bound, or any order, rule, or regulation of any court or governmental agency or body having
jurisdiction over it or any of its properties. 
  
 8.3 Licensee
Representations. Licensee represents and warrants to Licensor that: 
  
 (a) This Agreement has been duly authorized, executed, and delivered by it and is a valid, binding, and legally enforceable obligation of it, subject to applicable bankruptcy, insolvency, moratorium, and other laws now or hereafter in
effect affecting the rights of creditors generally, and subject (as to the enforcement of remedies) to equitable principles; 
  
 (b) No consent, approval, authorization, or order of any court or governmental agency or body or any other person is required for the consummation by it
of the transactions contemplated by this Agreement; and 
  
 (c)
The execution, delivery, and performance of this Agreement by Licensee will not result in a breach or violation of, or constitute a default under, any statute, regulation, or other law or agreement or instrument to which it is a party or by which it
is bound, its charter documents, or any order, rule, or regulation of any court or governmental agency or body having jurisdiction over it or any of its properties. 
  
 8.4 Limitations. EXCEPT AS PROVIDED IN SECTIONS 8.1 AND 8.2 ABOVE, LICENSOR AND YALE DISCLAIM ALL WARRANTIES
WHATSOEVER WITH RESPECT TO THE INVENTION, LICENSED TECHNOLOGY, AND THE LICENSED PRODUCTS, EITHER EXPRESS OR IMPLIED. THERE IS NO EXPRESS OR IMPLIED WARRANTY: (i) OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR (ii) THAT 

  

 - 19 - 

 
ANY LICENSED PATENT IS VALID, OR (iii) THAT THE USE OF ANY LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS, OR ANY
OTHER EXPRESS OR IMPLIED WARRANTIES. Licensee shall make no statements, representations, or warranties whatsoever to any third parties inconsistent with this Section 8.4. 
  

	9.	INDEMNIFICATION: INSURANCE 

  
 9.1 Indemnification. 
  
 (a) Licensee shall defend, indemnify and hold harmless Licensor, Yale, and their agents, officers, directors and employees from and against any and all
third party claims, demands, damages, suits, actions, judgments, awards, fines, liabilities, losses, and all costs and expenses incurred in connection therewith (including attorneys’ fees) (collectively, “Losses”) arising from or in
connection with any of the following: (a) the use by Licensee, its Affiliates, or sublicensees of any method or process related to the Licensed Technology or Inventions; (b) the development, manufacture, handling, storage, labeling, use,
promotion, sale, or other disposition of the Licensed Products by Licensee, its Affiliates or sublicensees, or other transferees; (c) failure by Licensee to comply with the Act or any applicable regulations or guidelines in the manufacture,
handling, labeling, and sale of Licensed Products; (d) failure to provide adequate warnings; (e) the exposure to, or administration or use of, the Licensed Products by any person; (f) a breach of any warranty or representation by
Licensee herein; or (g) any willful act or omission or negligence of Licensee, its Affiliates, or sublicensees, or their respective employees, agents, or other contractors. Licensor shall reasonably cooperate with Licensee in defending any such
claim. Licensor shall be entitled to receive information regarding the status of any such matter and shall be entitled to retain advisory counsel on its own behalf and at its own expense. 
  

 - 20 - 

 (b) Licensor shall defend, indemnify and hold harmless Licensee, from and against any and all Losses
arising from or in connection with any of the following: (a) a breach of any warranty or representation by Licensor herein; or (b) any willful act or omission or negligence of Licensor. Licensee shall reasonably cooperate with Licensor in
defending any such claim. Licensee shall be entitled to receive information regarding the status of any such matter and shall be entitled to retain advisory counsel on its own behalf and at its own expense. 
  
 9.2 Insurance. From the initiation of Phase I and thereafter for
a period of six (6) years after termination or expiration of this Agreement, Licensee shall purchase and maintain in effect and shall require any sublicensees to purchase and maintain in effect a policy of general comprehensive products
liability insurance covering all claims with respect to any Licensed Products developed, tested, manufactured or sold within the term of any license granted hereunder, which policy shall (a) be in an amount of not less than $1,000,000 combined
single limit for each occurrence of bodily injury and property damage, (b) provide that such policy is primary and not excess or contributory with regard to other insurance Licensee may have, (c) provide at least thirty (30) days
notice to Licensor and Yale of cancellation or material change, (d) include Licensor and Yale as additional insureds, and (e) be written to cover all claims made during or after the termination or expiration of this Agreement. Licensee
shall furnish a certificate of such insurance to Licensor and Yale on the date hereof and annually thereafter. 
  

	10.	SECRECY 

  
 10.1 Non-Disclosure. Except as otherwise provided in Section 10.2 below, no party shall disclose to a third party any Proprietary Information.
Each party shall take all reasonable steps to minimize the risk of disclosure of Proprietary Information or transfer, including without limitation, if applicable: (a) ensuring that only its employees whose duties require them to 

  

 - 21 - 

 
possess such information or materials have access thereto; (b) exercising at least the same degree of care that it uses for its own proprietary
information; and (c) providing proper and secure storage for the Proprietary Information. 
  
 10.2 Disclosure. Upon prior notice to the disclosing party, the receiving party may disclose Proprietary Information for the following purposes: 
  
 (a) to sublicensees and clinical trial administrators to the extent reasonably required to conduct clinical trials or
manufacture or sell Licensed Products; provided, that such person or entity executes and delivers a confidentiality agreement in a form reasonably acceptable to Licensor and Yale hereto; and 
  
 (b) to any governmental agency or judicial authority that requires or legally
requests such Proprietary Information; provided, that protective orders or other assurances of confidentiality are obtained to the extent reasonably available from such agency or authority. 
  
 10.3 Equitable Remedies. Each party acknowledges that if any party
discloses Proprietary Information in violation of this Agreement, the other parties shall have no adequate remedy in arbitration or at law and may seek such equitable relief, in addition to monetary damages, as it deems appropriate, including but
not limited to preliminary and permanent injunctive relief. 
  

	11.	TERM AND TERMINATION 

  
 11.1 Term. The term of the license granted hereunder shall commence upon the Effective Date and shall expire on the later of: (a) the date on
which all Licensed Patents covering all Licensed Products in all countries in the world expire, lapse or are finally declared invalid by a non-appealable decision of a court of competent jurisdiction through no fault or cause of Licensee; or
(b) fifteen (15) years. 
  

 - 22 - 

 11.2 Termination for Cause by Licensor. Without prejudice to any other rights it may have
hereunder or at law or in equity, Licensor may terminate this Agreement immediately upon notice to Licensee (taking into account the applicable cure periods set forth in this Section 11.2), upon the occurrence of any of the following:

  
 (a) An order for relief is entered against the Licensee under
any bankruptcy or insolvency laws or laws of similar import (and in the case of an involuntary action only, such order of relief is not discharged within ninety (90) days): 
  
 (b) Licensee makes an assignment for the benefit of its creditors or a receiver or custodian is appointed for it or its
business is placed under attachment, garnishment or other process involving all or substantially all of its business; 
  
 (c) After thirty (30) days’ written notice from Licensor (stating its intent to so terminate), Licensee fails to make all payments due and owing
pursuant to Article 3 hereof; 
  
 (d) After thirty
(30) days’ written notice from Licensor (stating its intent to so terminate), Licensee fails to assist Yale and Licensor in any legal action initiated by Yale and/or Licensor described in Section 5.3 at the reasonable request and at
the expense of Yale or Licensor; 
  
 (e) After thirty
(30) days’ written notice from Licensor (stating its intent to so terminate), Licensee fails to commence and diligently pursue to remedy any material breach (other than breach for payment referred to in Section 11.2(c) hereof) of this
Agreement; 
  
 (f) After sixty (60) days’ written notice
from Licensor (stating its intent to so terminate), Licensee fails to exercise due diligence in bringing the Licensed Products to market in accordance with Article 6; or 
  

 - 23 - 

 (g) With respect to Licensed Technology that is subject to the Yale License Agreement only, the Yale
License Agreement terminates or expires. 
  
 11.3 Termination
by Licensee. Without prejudice to any other rights it may have hereunder or at law or in equity, Licensee may terminate this Agreement immediately upon notice to Licensor (a) for any reason, with or without cause, after thirty
(30) days’ written notice to Licensor, or (b) if, after thirty (30) days’ notice from Licensee (stating its intent to so terminate), Licensor fails to commence and diligently pursue to remedy any material breach of this
Agreement. 
  
 11.4 Rights and Duties Upon Termination.

  
 (a) Upon expiration or termination of this Agreement and
except as otherwise expressly provided herein, all licenses granted to Licensee under this Agreement and, at Licensor’s option, any sublicenses granted by Licensee, shall terminate. 
  
 (b) In addition, upon termination of this Agreement (other than: (i) by Licensee for material breach by Licensor, or
(ii) by Licensor pursuant to Section 11.2(f) if Licensee, in good faith, has provided Licensor with legitimate reasons and a statement of intended actions to further develop and market Licensed Products as provided in
Section 6.4), all clinical data (including pharmacological, toxicological and clinical test data, analytical and quality control data), techniques and results of experimentation and testing, inventions, practices, methods, trade secrets,
processes, formulas and other know-how developed or generated by Licensee (or its sublicensees, investigators, vendors, consultants or agents) that relate to Licensed Technology or Licensed Products (collectively, the “Data”), shall become
the property of Licensor and Licensee shall promptly furnish, or cause its sublicensees, investigators, vendors, consultants or agents to 

  

 - 24 - 

 
furnish, the Data to Licensor and execute such documents as may be necessary to transfer title and control of the Data to Licensor. 
  
 (c) Expiration or termination of this Agreement for whatever reason, shall
not affect any rights or obligations accrued by either party prior to the effective date of such termination, including but not limited to Licensee’s obligation to pay all License Fees and Earned Royalties specified by Article 3.

  
 (d) The following provisions shall survive expiration or
termination of this Agreement: Sections 4.3, 4.7, 8.4 and 11.4 and Articles 9, 10 and 12. 
  
 (e) In addition, if this Agreement terminates pursuant to Section 11.2(g) and Yale terminated the Yale License Agreement for cause, Licensee and Yale
agree to enter into a direct license on terms substantially similar to this Agreement. 
  

	12.	MISCELLANEOUS 

  
 12.1 Notices. All notices, requests, demands, waivers, consents, approvals, or other communications to any party hereunder shall be in writing and
shall be deemed to have been duly given if delivered personally to such party or sent to such party by registered or certified mail, postage prepaid, or by commercial courier, to the following addressees: 
  

			
	to Yale:	  	 Yale University School of Medicine
 Office of
Cooperative Research
 333 Cedar Street
 New Haven, CT
06520
 Attention: Alfred E. Brown, Ph.D.

		
	to Licensor:	  	 Vion Pharmaceuticals, Inc.
 Four Science
Park
 New Haven, CT 06511
 Attention: Ellen Carmichael,
Ph.D.,
 Director of Strategic and Corporate Development

  

 - 25 - 

			
	 with a copy to:
	  	 
		
	 	  	 Patricia Kavee Melick, Esq.
 Wiggin &
Dana
 Three Stamford Plaza
 301 Tresser Boulevard
 Stamford, CT 06901

		
	to Licensee:	  	 Achillion Pharmaceuticals, Inc.
 281 Chestnut Hill
Road
 Killingworth, CT 06419
 Attention: William Rice,
President

		
	 with a copy to:
	  	 
		
	 	  	 Arlene Mirsky, Esq.
 Sills Cummis Radin Tischman
Epstein & Gross
 One Riverfront Plaza
 Newark, NJ
07102-5400

  
 or to such other address as the
addressee may have specified in notice duly given to the sender as provided herein. Such notice, request, demand, waiver, consent, approval, or other communication will be deemed to have been given as of the date so delivered, or five (5) days
after so mailed. 
  
 12.2 Force Majeure. Failure by either
party to perform its obligations under this Agreement (excepting the obligation to make payments) shall not subject such party to any liability to the other if such failure is caused or occasioned by act of God, fire, explosion, flood, drought, war,
riot, sabotage, embargo, strikes or other labor trouble, compliance with any order, regulation or request of government, or by any other event or circumstance of like or different character to the foregoing beyond the reasonable control of such
party, provided such party uses reasonable efforts to remove such circumstance and gives the other party prompt notice of the existence of such circumstance. 
  
 12.3 Amendment and Entire Agreement. This Agreement may not be amended or modified except by written agreement signed by all of the parties hereto.
This Agreement 

  

 - 26 - 

 
constitutes the entire agreement of the parties relating to the subject matter hereof, and all prior representations and understandings are merged into and
superseded hereby. 
  
 12.4 Governing Law. This Agreement
shall be governed and interpreted, and all rights and obligations of the parties shall be determined, in accordance with the laws of the State of Connecticut, without regard to its principles of conflicts of law. The parties hereby irrevocably
submit to the personal jurisdiction and venue of the state courts of Connecticut in New Haven County, Connecticut and the United States District Court for the State of Connecticut, over any suit, action, or proceeding arising out of or relating to
this Agreement. 
  
 12.5 Assignment; Binding Effect. This
Agreement shall not be assigned by Licensee except upon the prior consent of Yale which consent shall not be unreasonably withheld or delayed, except Licensee may transfer this Agreement to a person or entity that acquires all or substantially all
of Licensee’s assets. Any attempted assignment in contravention of this Section 12.5 without such consent shall be null and void. This Agreement and the rights herein granted shall be binding upon and shall inure to the benefit of
Licensor, Yale and Licensee and their respective successors, heirs, and permitted assigns. 
  
 12.6 Severability. The provisions of this Agreement shall be deemed separable. In the event any provision of this Agreement is found in any jurisdiction to be in violation of public policy or illegal or
unenforceable in law or equity, such finding shall in no event invalidate any other provision of this Agreement in that jurisdiction, and this Agreement shall be deemed amended to the minimum extent required to comply with the law of such
jurisdiction. 
  
 12.7 No Waiver. The failure of any party
hereto to enforce at any time, or for any period of time, any provision of this Agreement shall not be construed as a waiver of either such provision or the right of such party thereafter to enforce each and every provision of this Agreement.

  

 - 27 - 

 12.8 Counterparts. This Agreement may be executed in any number of counterparts and any party may
execute any such counterpart, each of which when executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 
  
 12.9 Yale’s Rights. Licensee acknowledges and agrees that its
obligations hereunder will benefit Yale. In connection therewith, if Licensee should breach an obligation hereunder which obligation benefits Yale, Yale may seek to enforce Licensor’s rights and remedies hereunder, provided that Licensee shall
be able to assert against Yale any and all defenses it may have hereunder against Licensor. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first set forth above. 
  

			
	VION PHARMACEUTICALS, INC.
		
	By:	 	/s/ Thomas Mirelle
	Name:	 	Thomas Mirelle
	Title:	 	V.P. Operations

  

			
	ACHILLION PHARMACEUTICAL, INC.
		
	By:	 	/s/ William G. Rice Ph.D.
	Name:	 	William G. Rice Ph.D.
	Title:	 	President and CEO

  
 The undersigned shall be bound
only to the provisions of Sections 5.1, 5.3, 5.4, 8.2 and 11.4(e) and Articles 10 and 12 hereof. 
  

			
	YALE UNIVERSITY
		
	By:	 	/s/ Jon Soderstorm
	Name:	 	Jon Soderstorm
	Title:	 	Man Dir DCR

  

 - 28 - 

 EXHIBIT A 
  

INVENTIONS 
  

	1.	U.S. Patent Application Serial Number [**]U.S. Patent Application Serial Number [**]United States Patent Application Serial Number [**] 

 EXHIBIT B 

 BLFd4C Patent Applications 
  
 Parent Application (YO3-001) 
 08/067,299 May 25, 1993 Patent withdrawn before Issuance 
  
 Continuation-in-Part of 067,299 (Y03-002) 
 08/098,650 July 28, 1993 U.S. Patent No. 5,627,160 BLFd4C for HIV 
  
 Division of 067,299 (Y03-008) 
 08/456,635 June 1, 1995 U.S. Patent No. 5,561,120 BLFd4C for HBV 
  
 Division of 067,299 (Y03-009) 
 08/544,650 October 18, 1995 U.S. Patent No. 5,631,239 BLFddC for HBV 
  
 Division of 456,635, a division of 67,299 (Y03-018)

 08/724,138 September 30, 1996 U.S, Patent No. 5,830,881 BddA for HBV 
  
 Division of 098,650, a continuation-in-part of 67,299
(Y03-022) 
 08/819,663 March 12, 1997 Non-active Status 
  
 Foreign Patent Applications With Priority from 067,299 and 098,650 Directly

  

					
	China	  	94106188.4	  	w/HK
	Mexico	  	943855	  	 
	Taiwan	  	82108621	  	Notification of Allowance

  
 PCT/US 94/05790 Priority from
067,299 and 098,650 
  

					
	Australia	  	693795	  	Issued
	Canada	  	2,163,520	  	 
	EPO	  	94919207.4	  	Notification of Allowance/Grant to Follow
	Japan	  	7-500872	  	 
	Korea	  	705353/95	  	 

 Method of Reducing Toxicity of D-Nucleosides using I.-Nucleosides 
  
 Parent Application (Y03-007) 
 08/406,198 March 16, 1995 U.S. Patent No. 5,869,461 
  
 Continuation-in-Part of 406,198 (Y03,816) 
 08/616,912 March 15, 1996 U.S. Patent No. 5,756,478 
  
 Division of 616,912 (Y03-028) 
 09/016,893 February 2, 1989 Abandoned 
  
 Foreign Applications With Priority from 406,198 and 616,912 
  
 PCT/US96/03620 Filed March 15, 1996 
  
 No National Phase 

 AMENDMENT TO LICENSE AGREEMENT 
  
 This Amendment, dated the 28th day of January, 2002 (the “Effective Date”), is by and between Vion
Pharmaceuticals, Inc., a Delaware membership corporation having its principal office at Four Science Park, New Haven, Connecticut 06511 (“Vion”), and Achillion Pharmaceuticals, Inc., a Delaware corporation having its principal office at
300 George Street, New Haven, Connecticut 06511 (“Achillion”). 
  
 INTRODUCTION 
  

	13.	Yale University (“Yale”) and Vion entered into a certain License Agreement, dated as of August 31,1994 (the “1994 Agreement”), as amended, pursuant to which
Yale granted Vion a license to certain inventions covering anti-viral compounds, including Beta-L-FD4C, with the right to grant sublicenses. 

  

	14.	Vion and Achillion entered into a License Agreement, dated as of February 3, 2000, (the “Agreement”), pursuant to which Vion granted Achillion an exclusive sublicense
under the 1994 Agreement. 

  

	15.	Vion and Achillion wish to modify the Agreement to reduce the level of Achillion’s royalty obligation to Yale. In consideration for this reduction in royalty, Achillion shall
grant to each of Yale and Vion an option to purchase sixty thousand (60,000) shares of Achillion common stock, for an aggregate total of 120,000 shares, subject to the terms of the Nonstatutory Stock Option Agreement dated January 28, 2002
with each of Yale and Vion. 

  
 In consideration of
the mutual covenants and promises contained in this Amendment and other good and valuable consideration, the receipt of which is hereby acknowledged, Vion and Achillion agree as follows: 
  

	 	15.1	Capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Agreement. 

	 	15.2	The first sentence of Section 3.3 (a) shall be deleted in its entirety and replaced by the following sentence: 

  
 In the event Licensee sublicenses rights hereunder to one or more
unaffiliated third parties, Licensee shall pay directly to Designee: (i) [**]percent ([**]%) of the Gross Amounts Received by Licensee, directly or indirectly, for or on account of the sublicenses, [**] (the “Sublicense Fees”); and
(ii) a royalty for the sale of Licensed Products by the permitted sublicensee(s) to unaffiliated third parties equal to [**] percent ([**]%) of the payments made by the permitted sublicensee(s) to Licensee but not less than [**] percent ([**]%)
of each sublicensees’ Net Sales (the “Sublicense Royalties” and collectively with the Sublicense Fees, the “Sublicense Income”). 
  

	 	15.3	In all other respects, the Agreement shall remain in full force and effect. 

  

Sales (the “Sublicense Royalties” and collectively with the Sublicense Fees, the “Sublicense Income”). 
  
 Article III. In all other respects, the Agreement shall remain in
full force and effect. 
  
 This Amendment may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by duly authorized
representatives as of the day and year first above written. 
  

									
	Vion Pharmaceuticals, Inc.	 	 	 	Achillion Pharmaceuticals, Inc.
					
	By:	 	/s/ Steven H. Koehler	 	 	 	By:	 	/s/ William G. Rice
					
	Title:	 	Vice President Finance and CFO	 	 	 	Title:	 	President and CEO
					
	Date:	 	January 28, 2002	 	 	 	Date:	 	 

  
 Accepted and agreed to: Yale University 
  

			
	Yale University
		
	By:	 	 

			
		
	Title:	 	 
		
	Date:License Agreement, dated July 19, 2002

 Exhibit 10.3 
  
 Confidential Materials omitted and filed separately with the 
 Securities and Exchange Commission. Asterisks denote omissions. 
  
 LICENSE AGREEMENT 
  
 BETWEEN

  
 ACHILLION PHARMACEUTICALS, INC. 
  
 AND 
  
 EMORY UNIVERSITY 
  
 EFFECTIVE AS OF JULY 19, 2002 

 LICENSE AGREEMENT 
  
 This License Agreement (this “Agreement”) is made by and between Emory University, a Georgia non-profit
corporation, with offices located at 1380 South Oxford Road, N.E., Atlanta, GA 30322 (“Emory”), and Achillion Pharmaceuticals, Inc., a Delaware corporation, with its principal offices at 300 George Street, New Haven, CT 06511
(“Achillion”). The Agreement is effective as of July 19, 2002 (the “Effective Date”). 
  
 BACKGROUND 
  
 A. Emory owns certain intellectual property developed by Drs. Raymond F. Schinazi and Dennis C. Liotta at Emory relating to the treatment of Human Immunodeficiency Virus (“HIV”) and Hepatitis B Virus (“HBV”), as
described more fully in the Attachment; 
  
 B. Emory owns the
United States letters patents and/or applications including foreign counterparts listed in the Attachment to this Agreement relating to the intellectual property as described above; 
  
 C. Achillion desires to obtain the exclusive right and license to use and exploit the intellectual property described in the
Attachment and further defined below; and 
  
 D. Emory has
determined that the exploitation of this intellectual property is in the best interest of Emory and is consistent with its educational and research missions and goals. 
  
 NOW, THEREFORE, in consideration of the promises and covenants contained in this Agreement and intending to be legally
bound, the Parties agree as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS 
  
 1.1 “Affiliate” means any legal entity directly or indirectly controlling, controlled by or under common control
with a Party, and in the case of Achillion that has also executed (a) this Agreement or (b) a written joinder agreement, in a form satisfactory to Emory, agreeing to be 

  

 -1- 

 
bound by all of the terms and conditions of this Agreement as if such Affiliate were an original Party to this Agreement. For purposes of this Agreement,
“controlling,” “controlled by,” and “under common control” means the direct or indirect ownership of more than fifty percent (50%) of the outstanding voting securities of a legal entity, or the right to receive
more than fifty percent (50%) of the profits or earnings of a legal entity, or the right to control the management policy decisions of a legal entity. 
  
 1.2 “Agreement” shall have the meaning given in the first paragraph hereof. 
  
 1.3 “Calendar Quarter” means each three-month period, or any portion thereof, beginning on
January 1, April 1, July 1 and October 1. 
  
 1.4 “Confidential Information” means all know-how or other information, including, without limitation, proprietary information and materials (whether or not patentable) regarding a Party’s technology, products, business
information or objectives, which is designated as confidential in writing by the disclosing Party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such material, trade secret or other information is
disclosed by the disclosing Party to the other Party. Notwithstanding the foregoing to the contrary, (a) all Emory Subject Technology shall constitute Confidential Information of Emory, and (b) materials, know-how or other information
which is orally, electronically or visually disclosed by a Party, or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information of a Party (i) if the disclosing Party, within thirty
(30) days after such disclosure, delivers to the other Party a written document or documents describing the materials, know-how or other information and referencing the place and date of such oral, visual, electronic or written disclosure and
the names of the persons to whom such disclosure was made, or (ii) such information is of the type that is customarily considered to be 

  

 -2- 

 
confidential information by persons engaged in activities that are substantially similar to the activities being engaged in by the Parties pursuant to this
Agreement. 
  
 1.5 “Emory Subject Technology” shall mean
all technology, trade secrets, know-how, methods of treatment, documents, materials, tests, all improvements thereto, and all proprietary information pertaining to the compound b-L-FD4C (2’,3’-dideoxy-2’,3’-didehydro-b-L-5-fluorocytidine) or any 5’- or N4 derivatives or prodrugs thereof, in each case either (a) owned or controlled by Emory as of the Effective Date or (b) owned or
controlled by Emory and covered by any patent or patent application described in the immediately following sentence, other than the combination of b-L-FD4C with (i) FTC (2-hydroxymethyl-5-(5-fluorocytosin-1-y1)-1,3-oxathiolane) or (ii) 3TC (2-hydroxymethyl-5-(cytosine-1-y1)-l,3-oxathiolane) or (iii) other compounds on which Emory holds composition of matter patent rights (each
such other compound an “Emory Compound”). Emory Subject Technology shall specifically include claims to the extent they relate to b-L-FD4C in U.S. Patent No. 5,703,058, which issued on December 30, 1997, entitled “Compositions Containing 5-Fluoro-2’,3’-didehydro-2’,3’-dideoxycytidine or a Mono-, Di-, or Triphosphate thereof and a Second
Antiviral Agent” together with all claims to the extent they relate to b-L-FD4C in patent applications and patents claiming
priority from U.S. Patent No. 5,703,058 owned or controlled by Emory whether in the U.S. or any other country and all substitutions, divisions, continuations, continuations-in-part, renewals, reissues, reexaminations and extensions on such patent
applications and patents, whether owned or controlled by Emory as of the Effective Date or thereafter. A list of Emory’s U.S. and foreign patent applications and patents claiming Emory Subject Technology (“Licensed Patents”) as of the
Effective Date is provided in the Attachment. Any patent application or patent claiming Emory Subject Technology that is owned or controlled by Emory as of the 

  

 -3- 

 
Effective Date and is, through inadvertence or otherwise, not listed in the Attachment shall nonetheless be deemed to be included in such Attachment. For
avoidance of doubt, it is hereby confirmed that no license, right or immunity is granted by Emory to make, import, use, sell or offer to sell b-D-D4FC
(b-D-2’,3’-dideoxy-2’,3’-didehydro-5-fluorocytidine) or any 5’- or N4 derivatives or prodrugs thereof owned or controlled by Emory or to make, import, use, sell or offer to sell b-L-FD4C in physical combination with any Emory Compound, wherein physical combination means a pharmaceutical product in any dosage form that contains b-L-FD4C and an Emory Compound. 
  
 1.6 “Field” means all human prophylactic and therapeutic applications with respect to HIV and HBV. 
  
 1.7 “FDA” means (a) the United States Food and Drug
Administration or any successor agency thereto, and (b) except where otherwise specifically provided in this Agreement, any foreign agency or commission performing comparable functions. 
  
 1.8 “License” shall mean the license granted by Emory to Achillion
pursuant to Section 2.1. 
  
 1.9 “Licensed
Product(s)” means a product containing b-VL-FD4C that is developed, made, used, marketed, imported, Sold, or offered for Sale by Achillion, its
Affiliates or any Sublicensees in any country of the Territory where Emory owns or controls at least one Valid Claim covering Emory Subject Technology. 
  
 1.10 “NDA” means (a) a New Drug Application filed with the U.S. FDA or any successor application or procedure and (b) except where
otherwise specifically provided in this Agreement, any foreign equivalent of a U.S. NDA. 
  

 -4- 

 1.11 “Net Sales” means with respect to a Licensed Product, the gross amounts received by
Achillion and its Affiliates (or, for purposes of Section 3.7 only, by a Sublicensee that is not an Affiliate) for the Sale of the Licensed Product to unrelated third party purchasers, less the following deductions to the extent actually paid
or allowed: 
  

	 	1.11.1 	Repayments, allowances or credits actually given to such third parties for returned or defective Licensed Products; 

  

	 	1.11.2 	Freight, transportation, delivery, taxes and insurance costs incurred in transporting such Licensed Products to such third parties if separately itemized on the invoice paid by the
third party; 

  

	 	1.11.3 	Quantity and other trade discounts actually allowed and taken in connection with the Licensed Products; 

  

	 	1.11.4 	Rebates or chargebacks attributable to the Licensed Products; 

  

	 	1.11.5 	Sales, value-added, use and other direct taxes (other than income) to the extent separately stated on purchase orders, invoices or other documents of sale; and

  

	 	1.11.6 	Customs and tariff duties and surcharges and other governmental charges incurred in connection with the exportation or importation of the Licensed Products.

  
 The term “Net Sales” in the case of non-cash Sales
(i.e., in-kind dispositions of Licensed Products for consideration other than a selling price stated in cash) shall mean all in-kind consideration received by Achillion or any Affiliate (or, for purposes of Section 3.7, its Sublicensees that
are not Affiliates) for the Licensed Products. 
  
 In addition, the calculation of “Net Sales” as provided above shall be adjusted as provided in Section 3.4.4. 
  

 -5- 

 1.12 “Party” means Achillion or Emory; “Parties” means Achillion and Emory. As used
in this Agreement, references to “third parties” do not include a Party or its Affiliates. 
  
 1.13 “Sale,” “Sell” or “Sold” means the sale, lease, transfer, exchange, or other disposition of Licensed Products by
Achillion, its Affiliates or Sublicensees. Sales of Licensed Products shall be deemed consummated upon the first to occur of: (a) receipt of payment from the purchaser; (b) delivery of Licensed Products to the purchaser or a common
carrier; (c) if deemed Sold by use, when first put to such use; or (d) if otherwise transferred, exchanged, or disposed of when such transfer, exchange, or other disposition occurs. For avoidance of doubt, transfer of Licensed Product by
Achillion, its Affiliates or Sublicensees to a third party for the purpose of conducting a clinical trial or for compassionate, humanitarian or similar use for which Achillion, its Affiliates or Sublicensees do not receive payment in excess of the
manufacturing and distribution cost for such transfer is not a Sale. 
  
 1.14 “Sublicense” shall have the meaning given in Section 2.3. 
  
 1.15 “Sublicensee” shall have the meaning given in Section 2.3. 
  
 1.16 “Territory” means the entire world. 
  
 1.17 “Valid Claim” means a claim included in the Emory Subject Technology (a) of any issued, unexpired United States or foreign patent,
which shall not have been donated to the public, disclaimed, nor held invalid or unenforceable against the other Party by a court of competent jurisdiction in an unappealed or unappealable decision, or (b) of any United States or foreign patent
application, which shall not have been cancelled, withdrawn, abandoned nor been pending for more than seven (7) years. 
  

 -6- 

 ARTICLE 2 
  
 LICENSE GRANT 
  
 2.1 License Grant. Subject to the terms and conditions of this Agreement, Emory hereby grants to Achillion an exclusive, royalty-bearing,
worldwide, right and license under the Emory Subject Technology to develop, make, have made, use, market, import, have imported, Sell, offer for Sale and have Sold any and all Licensed Products in the field and in the Territory during the Term of
the Agreement. Emory grants to Achillion only the qualified right to grant sublicenses as more fully described in Section 2.3. No other rights or licenses are granted. 
  
 2.2 Retained Rights. The License is exclusive, except that Emory retains, on behalf of itself and any academic
research collaborators, the right and license to, and may permit other nonprofit organizations to, make and use Licensed Products and practice Emory Subject Technology for educational and research purposes only, it being understood that the
provisions of this Section 2.2 do not imply, and Achillion does not grant, any right or license to use or practice any technology that is proprietary to Achillion or third parties. 
  
 2.3 Sublicense Rights. Achillion shall have the right to enter into sublicenses (each a “Sublicense”)
relating to the license granted in Section 2.1 with third parties (each a “Sublicensee”) with which Achillion has agreed to develop and/or commercialize Licensed Products, provided however, that for each Sublicense grant (a) to a
Sublicensee having a market capitalization of greater than [**] dollars ($[**]), Achillion shall give prompt written notice to Emory, and (b) to a Sublicensee having a market capitalization of less than [**] dollars ($[**]), Achillion shall
first obtain Emory’s prior written approval, which approval shall not be unreasonably withheld or delayed. Each such Sublicense shall be subject and subordinate to, and consistent with, the terms and conditions of this Agreement, and shall
provide that any such Sublicensees shall not further sublicense except on terms consistent with this Agreement. Achillion shall include in any Sublicense agreement provisions requiring the Sublicensee to abide by the confidentiality obligations
herein, indemnify Emory and maintain 

  

 -7- 

 
insurance to the same extent that Achillion is so required pursuant to Sections 4.1, 8.4.1 and 8.6 of this Agreement. Achillion shall provide Emory with a
copy of any Sublicense granted pursuant to this Section 2.3 within thirty (30) days after the execution thereof. Such copy may be redacted to exclude confidential scientific information and other information required by a Sublicensee to be
kept confidential, provided that all relevant financial terms and information shall be retained. Achillion shall remain responsible for the performance of its Sublicensees (including, without limitation, the payment of all fees and
royalties due hereunder regardless of whether or not a Sublicensee pays Achillion such amounts), and shall ensure that any such Sublicensees comply with the relevant provisions of this Agreement. In the event of a material default by any Sublicensee
under a Sublicense agreement, Achillion will inform Emory and take such action, after consultation with Emory, which in Achillion’s reasonable business judgment will address such default. Achillion shall not grant any rights which are
inconsistent with the rights granted to and obligations of Achillion hereunder. Any act or omission of a Sublicensee which would be a breach of this Agreement if performed or made by Achillion shall be deemed to be a breach by such Sublicensee. In
addition, if Achillion grants a Sublicense to any third party (other than an Affiliate) with which Achillion also enters into a distribution agreement relating to a Licensed Product, the economic terms of the Sublicense agreement and the
distribution agreement must each reflect arm’s-length pricing and Emory shall have the right to withhold its approval of such Sublicense if such agreements do not reflect arm’s-length pricing. 
  
 2.4 Section 365(n) of the Bankruptcy Code. All rights and
licenses granted under or pursuant to any section of this Agreement are, and shall otherwise be, deemed to be, for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to “intellectual property” as defined under
Section 101(35A) of the Bankruptcy Code. The Parties shall retain and may fully exercise all of their respective rights and elections under the Bankruptcy Code. 
  

 -8- 

 2.5 No Implied License. The License shall not be construed to confer any rights upon Achillion by
implication, estoppel, or otherwise as to any technology not specifically identified in this Agreement as Emory Subject Technology. 
  
 2.6 Government Rights. The license granted in Section 2.1 above is conditional upon and subject to the U.S. Government Licenses and other
rights retained by the United States in inventions developed by nonprofit institutions with the support of federal funds. These rights are set forth in 35 USCA §201 et seq. and 37 CFR 401 et seq., which may be amended from time to time by the
Congress of the United States or through administrative procedures. 
  
 ARTICLE 3 
  
 FEES AND ROYALTY 
  
 3.1 Initial License Payment. In partial consideration of the grant by
Emory of the License set forth in Section 2.1, Achillion shall pay Emory a non-refundable, non-creditable, initial License fee of one hundred thousand dollars ($100,000), payable within thirty (30) days of the Effective Date. 

 
 3.2 Clinical Milestones. Achillion shall make the following
clinical milestone payments on or prior to the date [**] after the achievement of the following milestones for a License Product developed by Achillion, its Affiliates or Sublicensees: 
  

			
	$[**]	  	Upon completion of the first phase II clinical study
		
	$[**]	  	Upon the first NDA filing
		
	$[**]	  	Upon first registration (written approval of the FDA required for the marketing and sale of a Licensed Product in any country)

  
 Should a Licensed Product be abandoned
by Achillion, its Affiliates or Sublicensees for any reason following achievement of one or more, but not all, of the clinical milestones above and 

  

 -9- 

 
should Achillion, its Affiliates or Sublicensees subsequently develop another Licensed Product, then the remaining unpaid clinical milestone payments
achieved with respect to subsequent Licensed Product under this Section 3.2 shall be payable to Emory upon achievement of such clinical milestones with respect to such subsequent Licensed Product; provided that the clinical
milestone payments above shall never be payable more than once, regardless of how many Licensed Products are developed. 
  
 Achillion shall be entitled to credit any amounts paid by Achillion under this Section 3.2 against all payments payable by Achillion under the first sentence of
Section 3.7. 
  
 3.3 License Maintenance Payments. To
ensure Achillion’s continued development and commercialization of Licensed Products, Achillion shall make license maintenance payments to Emory as provided in this Section 3.3 in the event that none of the clinical milestones described in
Section 3.2 are achieved. Beginning with the second anniversary of Effective Date of the Agreement and continuing each year thereafter during the term of the Agreement, Achillion shall pay Emory a license maintenance payment in accordance with
the schedule set forth below, unless and until a clinical milestone described in Section 3.2 has occurred prior to the applicable anniversary and, on or prior to the date [**] thereafter, Achillion has paid Emory the amount set forth above in
Section 3.2 for such clinical milestone. Upon the satisfaction of the conditions set forth in the immediately preceding sentence, the license maintenance payment obligation under this Section 3.3 shall terminate. 
  

					
	 Year

	  	License Maintenance Payment

	 
	 Year 3
	  	$	[	**]
	 Year 4
	  	$	[	**]
	 Year 5
	  	$	[	**]
	 Year 6+
	  	$	[	**]

  

 -10- 

 For example, the payment in the table above for Year 3 shall (if payable as set forth above in this Section 3.3) be
payable on or before the second anniversary of the Effective Date. 
  
 3.4 Royalty. 
  

	 	3.4.1 	Royalty Rate. Achillion shall pay to Emory royalty on Net Sales of any Licensed Product Sold by Achillion or its Affiliates according to the following schedule:

  

				
	 Annual Net Sales of any Licensed Product in the Territory (US dollars)

	  	Royalty Rate

	 
	 On the portion of Net Sales less than $[**]
	  	[	**]%
	 On the portion of Net Sales equal to or greater than $[**] and less than $[**]
	  	[	**]%
	 On the portion of Net Sales equal to or greater than $[**]
	  	[	**]%

  

	 	3.4.2 	Length of Payments. The royalty payable under this Section 3.4 and the payments payable under Section 3.7 shall be paid on a country-by-country basis on each
Licensed Product during the Term. 

  

	 	3.4.3 	 Required Third Party Payments. In the event that Achillion’s outside patent counsel together with Emory’s outside patent counsel agree that the
development, making, having made, use, marketing, importation, having imported, Selling, offering for Sale or having Sold of a Licensed Product in a country by Achillion, its Affiliates and/or Sublicensees is covered by claims of third party patent
rights (including pending patent applications), then Achillion shall be entitled to deduct [**] percent ([**]%) of any license fees incurred by Achillion to obtain a license under such third party patent rights with respect to such Licensed Product
in such country 

  

 -11- 

	 	 
(other than fees paid to Yale University or Vion Pharmaceuticals, Inc., which shall not be deductible) from the Calendar Quarterly royalty payments made by
Achillion in respect of Net Sales of the Licensed Product in such country; provided that in no event shall a deduction under this Section 3.4.3 reduce any Calendar Quarterly royalty payment made by Achillion in respect of Net Sales of a
Licensed Product in a country by more than [**] percent ([**]%). Any deduction that is not usable pursuant to the final clause of the immediately preceding sentence may be carried forward for use in a future period. 

  

	 	3.4.4 	 Combination Product Royalties. In the event a Licensed Product is sold as part of a Combination Product (as defined below), the Net Sales from the
Combination Product, for the purposes of determining royalty payments, shall be determined by multiplying the Net Sales of the Combination Product (as defined in the standard Net Sales definition), during the applicable royalty reporting period, by
the fraction, A/(A+B), where A is the average sale price of the Licensed Product when sold separately in finished form and B is the average sale price of the other product(s) included in the Combination Product when sold separately in finished form,
in each case during the applicable royalty reporting period or, if sales of both the Licensed Product and the other product(s) did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred. In the
event that such average sale price cannot be determined for both the Licensed Product and all other products(s) 

  

 -12- 

	 	 
included in the Combination Product, Net Sales for the purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the
Combination Product by the fraction of C/(C+D) where C is the fair market value of the Licensed Product and D is the fair market value of all other pharmaceutical product(s) included in the Combination Product. In such event, Achillion shall in good
faith make a determination of the respective fair market values of the Licensed Product and all other pharmaceutical products included in the Combination Product, and shall notify Emory of such determination and provide Emory with data to support
such determination. 

  
 As used above, the term
“Combination Product” means any pharmaceutical product which consists of a Licensed Product and other active compounds and/or active ingredients. 
  

	 	3.4.5 	Royalties Payable Only Once. The obligation to pay royalties is imposed only once with respect to the same unit of a Licensed Product Except as specifically provided in this
Agreement, it is understood and agreed that there shall be no deductions from the royalties payable under this Agreement. 

  

	 	3.4.6 	Sales to Affiliates. Sales of Licensed Products between Achillion and its Affiliates, or among such Affiliates, shall not be subject to royalties under this Section 3.4,
but in such cases the royalties shall be calculated on the Net Sales by such Affiliates to a third party purchaser. 

  

 -13- 

	 	3.4.7 	Reports and Accounting. 

  

	 	3.4.7.1 	Reports; Payments. Achillion shall deliver to Emory, within [**] after the end of each Calendar Quarter, a written report covering separately Achillion, its Affiliates and
Sublicenses and setting forth for the preceding Calendar Quarter a reasonably detailed accounting of (a) Net Sales of Licensed Products that are subject to royalty payments due to Emory under this Section 3.4 for such Calendar Quarter and
(b) amounts payable under Section 3.7 for such Calendar Quarter, for (i) all Sales of Licensed Products on a Licensed Product-by-Licensed Product and country-by-country basis; (ii) the calculation of all payments due hereunder
from such Sales; (iii) the exchange rate, if applicable, used in determining the U.S. dollar amounts payable hereunder. When Achillion delivers such reports to Emory, Achillion shall also deliver all payments due under this Section 3.4 and
under Section 3.7 to Emory for the Calendar Quarter. With respect to Sales of products invoiced in U.S. dollars, the Sales and payments due hereunder shall be expressed in U.S. dollars. With respect to Sales of products invoiced in a currency
other than U.S. dollars, Sales amounts shall first be expressed in their foreign currency and then converted to their U.S. dollar equivalent, calculated using the applicable conversion rates for buying United States dollars published by The Wall
Street Journal on the last business day of the Calendar Quarter to which the royalty report relates. 

  

 -14- 

	 	3.4.7.2 	 Audits by Emory. During the Term of this Agreement and for a period of three (3) years thereafter, Achillion shall keep, and shall require its
Affiliates and Sublicensees to keep, complete and accurate records of all Sales in accordance with generally accepted accounting principles and in sufficient detail to enable royalty and other payments required hereunder to be readily and accurately
determined. For the sole purpose of verifying payments due to Emory, Emory shall have the right annually at Emory’s expense to retain an independent certified public accountant selected by Emory and reasonably acceptable to Achillion, to review
such records in the location(s) where such records are maintained by Achillion, its Affiliates or its Sublicensees upon reasonable notice and during regular business hours and under obligations of confidence. Results of such review shall be made
available to both Emory and Achillion. If the review reflects an underpayment of royalties to Emory, such underpayment shall be immediately remitted to Emory, together with interest calculated in the manner provided in Section 3.5 below. If the
underpayment is equal to or greater than seven percent (7%) of the total amount owed to Emory for the calendar year being reviewed, Achillion shall reimburse Emory for [**] of the independent public account performing the audit. Each 

  

 -15- 

	 	 
Sublicense agreement shall include an audit right by Emory of the same scope as provided above. 

  
 3.5 Currency and Method of Payments; Late Payments. All payments under
this Agreement shall be made in U.S. dollars by transfer to such bank account as Emory may designate from time to time as follows: (i) for all payments due under Sections 3.4 and 3.7, on the date the corresponding report is due in accordance
with Section 3.4.7.1; and (ii) for all other amounts due hereunder, within [**] after the due date specified herein or, in the case of expenses invoiced in accordance with Section 6.2, the date Achillion receives Emory’s
invoice. In the event Emory fails to designate a bank account, Achillion may remit payment to Emory to the address applicable for the receipt of notices hereunder. Any payments due under Sections 3.4 and 3.7 with respect to Sales outside of the
United States shall be payable in their U.S. dollar equivalents, calculated using the applicable conversion rates for buying U.S. dollars as published by The Wall Street Journal for the last business day of the Calendar Quarter for which the
payments are payable. Achillion shall pay interest to Emory on the aggregate amount of any payments that are not paid on or before the date such payments are due under this Agreement at a rate per annum equal to two percent (2%) above the prime
rate in effect as published in The Wall Street Journal on the date the payment is due, or the highest rate permitted by applicable law, calculated on the number of days such payment is delinquent. The payment of such interest shall not
foreclose Emory from exercising any other rights it may have because any payment is overdue. 
  
 3.6 Tax Withholding. The Parties shall use all reasonable and legal efforts to reduce tax withholding on payments made to Emory. Notwithstanding such efforts, if Achillion concludes that tax withholdings under
the laws of any country are required with respect to 

  

 -16- 

 
payments to Emory, Achillion shall pay to Emory such additional amounts as may be necessary so that Emory will receive, after deduction for such withholding
taxes, the amount that Emory would have received in the absence of such withholding taxes. The Parties agree to cooperate in good faith to provide one another with such documents and certifications as are reasonably necessary to enable Achillion to
minimize any withholding tax obligations. 
  
 3.7 Sublicense
Fees. In the event Achillion enters into a Sublicense with one or more Sublicensees that are not Affiliates of Achillion, Achillion shall pay to Emory [**] percent ([**]%) of the gross amounts received by Achillion in consideration for such
Sublicense including any non-cash payments or equity issued to Achillion by the Sublicensee, but not including royalties on Sales by the Sublicensee, bona fide payments for research and development from the Sublicensee, or amounts received for
securities of Achillion sold to the Sublicensee at fair market value, in connection with the Sublicense. The amounts payable by Achillion to Emory under the immediately preceding sentence shall be reduced by the amounts, if any, that Achillion is
entitled to credit against such payments pursuant to Section 3.2. In addition, Achillion shall pay directly to Emory [**] percent ([**]%) of any royalty payments made to Achillion by such Sublicensees on Sales of Licensed Products, but not less
than [**] percent ([**]%) of such Sublicensee’s Net Sales for such Licensed Product. 
  
 ARTICLE 4 
  
 CONFIDENTIALITY

  
 4.1 Non-Disclosure by Achillion. Achillion shall
maintain in confidence and not disclose to any third party, other than its development partners, investors and lenders, and potential partners, investors and lenders, any Confidential Information of Emory. Achillion shall ensure that its employees,
development partners, investors and lenders, potential partners, investors and lenders have access to Confidential Information only on a need-to-know basis and 

  

 -17- 

 
are obligated in writing to abide by Achillion’s obligations under this Agreement. The foregoing obligation shall not apply to: 
  

	 	4.1.1 	information that is known to Achillion or independently developed by Achillion prior to the time of disclosure, in each case, to the extent evidenced by written records promptly
disclosed to Emory upon receipt of the Confidential Information; 

  

	 	4.1.2 	information disclosed to Achillion by a third party that has a right to make such disclosure; 

  

	 	4.1.3 	information that becomes patented, published or otherwise part of the public domain other than as a result of the breach by Achillion of its obligations under this Agreement; or

  

	 	4.1.4 	information that is required to be disclosed by order of United States governmental authority or a court of competent jurisdiction; provided that Achillion shall use best efforts to
obtain confidential treatment of such information by the agency or court. 

  
 4.2 Limited Non-Disclosure by Emory. Emory shall not be obligated to accept any Confidential Information from Achillion except for the reports required in Section 3.4.7.1. Emory shall use reasonable
efforts not to disclose those reports to any third party other than Emory’s outside advisors (subject to exceptions similar to those applicable to Achillion under Section 4.1). Emory bears no institutional responsibility for maintaining
the confidentiality of any other information of Achillion. 
  
 4.3
Survival. The covenants of confidentiality set forth in this Agreement will apply from the Effective Date and continue as follows: (a) with respect to trade secrets, so long as 

  

 -18- 

 
such trade secrets retain their status as “trade secrets” under applicable law, and (b) with respect to other Confidential Information, for
the period equal to five (5) years after termination of this Agreement. 
  
 4.4 Breach. If either Party should breach or threaten to breach this Article 4, the non-breaching Party, in addition to any other remedies it may have at law or in equity, shall be entitled to a restraining
order, injunction, or other similar remedy in order to specifically enforce the terms of this Article 4. Each Party specifically acknowledges that money damages alone may be an inadequate remedy for the injuries and damages suffered and incurred by
the non-breaching Party as a result of a breach of this Article 4. 
  
 ARTICLE 5 
  
 TERM AND TERMINATION 
  
 5.1 Term. This Agreement, unless sooner terminated as provided in this
Agreement, commences on the Effective date and shall continue in full force and effect on a Licensed Product-by-Licensed Product basis until the expiration of the last to expire Valid Claim expires on a country-by-country basis (the
“Term”). 
  
 5.2 Termination for Material Breach.
Upon any material breach of this Agreement by either Party (in such capacity, the “Breaching Party”), the other Party (in such capacity, the “Non-Breaching Party”) may terminate this Agreement by providing sixty
(60) days’ written notice to the Breaching Party, specifying the material breach. The termination shall become effective at the end of the sixty (60) day period unless (a) the Breaching Party cures such breach during such sixty
(60) day period, or (b) if such breach is not susceptible to cure within sixty (60) days of the receipt of written notice of the breach, the Breaching Party is diligently pursuing a cure (unless such breach, by its nature, is
incurable, in which case the Agreement may be terminated immediately) and effects such cure within an additional [**] days after the end of 

  

 -19- 

 
such sixty (60) day period. Achillion’s obligations to make all payments due hereunder and to submit royalty reports to Emory in accordance with
Section 3.4.7.1 shall be deemed material obligations. 
  
 5.3
Termination by Emory. Emory may terminate this Agreement by giving Achillion written notice thereof if any of the following events occur: (a) Achillion files a petition in bankruptcy or if an involuntary petition shall be filed against
Achillion and such petition shall not be dismissed within sixty (60) days; (b) Achillion becomes insolvent or admits its inability to pay its debts generally when due; (c) Achillion and its assigns quit the business of developing,
making, having made, using, marketing, importing, having imported, Selling, offering for Sale and having Sold all Licensed Products; or (d) Achillion and its assigns cease using commercially reasonable efforts to commercialize Licensed Products
(it being understood that the activities of Affiliates and Sublicensees of Achillion and its assigns shall be considered in determining whether such commercially reasonable efforts have been exercised). 
  
 5.4 Termination by Achillion. Achillion may terminate this Agreement
without cause upon sixty (60) days prior written notice to Emory. 
  
 5.5 Effect of Termination. In the event of a termination hereof by Emory under Section 5.2 or Section 5.3 or by Achillion under Section 5.4, all duties of Emory and all rights (but not duties) of Achillion and any
Affiliate and/or Sublicensee under this Agreement shall immediately terminate without the necessity of any action being taken either by Emory or by Achillion or any Affiliate or Sublicensee. Upon and after any such termination of this Agreement,
Achillion and any Affiliate and/or Sublicensee shall refrain from further manufacture, sale, marketing, importation and/or distribution of any product(s) containing (b-L-FD4C, the development, manufacture, sale, offer for sale, marketing, importation and/or 

  

 -20- 

 
distribution of such product would infringe a Valid Claim within Emory Subject Technology, except as otherwise provided in this Article 5. Notwithstanding
the foregoing, upon termination of this Agreement, Achillion and its Affiliates and Sublicensees may continue to Sell Licensed Products in the ordinary course of business for a period of three (3) months, provided that (a) all monetary
obligations of Achillion to Emory have been satisfied; and (b) reports are made, and royalty payments are made, on such Sales to Emory in the amounts and in the manner provided in this Agreement. Any termination of this Agreement shall not
prejudice Emory’s rights to receive royalty payments or other sums due hereunder. 
  
 5.6 Return of Confidential Information. Upon termination of this Agreement, Achillion and any Affiliate and/or Sublicensee shall return to Emory, or at Emory’s direction destroy, all Emory’s
Confidential Information, as well as all data, writings and other documents and tangible materials supplied to Achillion by Emory. 
  
 5.7 Survival. Achillion’s obligation to pay all monies owed accruing under this Agreement shall survive termination of this Agreement. In
addition, the provisions of Article 4 - Confidentiality, Article 5 - Term and Termination, Article 8 - Disclaimer of Warranties; Indemnification, Article 9 - Use of Emory’s Name and Article 10 - Additional Provisions shall survive such
termination. 
  
 ARTICLE 6 
  
 PATENT MAINTENANCE AND REIMBURSEMENT 
  
 6.1 Patents. Emory shall own all Emory Subject Technology and shall
prepare, prosecute, file, maintain, and extend the patent rights related to the Emory Subject Technology, and shall keep Achillion informed concerning the prosecution and maintenance of the Emory Subject Technology. If Emory declines to file and
prosecute any patent application or maintain any patent under Emory Subject Technology, it shall give Achillion reasonable notice to this 

  

 -21- 

 
effect, but in any event prior to any loss of rights, and thereafter Achillion may, upon written notice to Emory, file and prosecute such patent applications
and maintain such patents under Emory Subject Technology in Emory’s name. Achillion will be responsible for the payment of all charges and fees incurred by Achillion in connection therewith. Emory will consult with Achillion regarding national
phase countries selection and prosecution decisions shall be determined by mutual agreement. 
  
 6.2 Patent Costs. Achillion shall reimburse Emory for [**] patent prosecution and maintenance expenses have not been previously paid by any other Emory licensee. Emory will periodically invoice Achillion for
such expenses and Achillion shall pay each invoice in accordance with Section 3.5 hereof. Emory’s outside attorney will determine the split, on a Licensed Patent-by-Licensed Patent basis, of ongoing patent prosecution and maintenance
expenses between Achillion and any other Emory licensee. 
  
 ARTICLE 7 
  
 INFRINGEMENT AND LITIGATION 
  
 7.1 Notification of Infringement. Emory and Achillion are responsible
for notifying each other promptly of any infringement or suspected infringement of the Licensed Patents and/or Emory Subject Technology that may come to their attention, or of any misuse, misappropriation, theft or breach of confidence of other
proprietary rights in the Licensed Patents or Emory Subject Technology. Emory and Achillion shall consult one another in a timely manner concerning any appropriate response to the infringement. 
  
 7.2 Third Party Infringement. Each Party agrees to take reasonable
actions to protect the Emory Subject Technology and Licensed Patents (to the extent that they cover Emory Subject Technology) from patent infringement by an unauthorized third party. Emory shall have the primary right, but not the obligation, to
institute, prosecute, and control any action or 

  

 -22- 

 
proceeding with, respect to such infringement, through counsel of its own choice, and Achillion shall have the right, at its own expense, to be represented
in such action by counsel of its own choice. Achillion shall have the right to institute an infringement suit with respect to a Licensed Patent that Emory decides not to institute upon reasonable written notice to this effect to Emory. In the event
that either Patty institutes a third party patent infringement action and a recovery is obtained, by settlement or otherwise, such recovery shall be applied as follows: 
  
 (a) If the Parties institute the third party patent infringement action jointly, after the deduction of all
reasonable expenses and attorneys’ fees, any recovery or settlement received shall be paid to Achillion, and Achillion shall pay to Emory an amount representing the royalty which would have been paid by Achillion on such amount had such amount
been accrued by Achillion as Net Sales. The Parties shall agree upon the manner in which they shall exercise control over such action; 
  
 (b) If Achillion does not elect to pursue such infringement action, Emory may institute the action, and, at its option, name Achillion as
a plaintiff. Emory shall bear the entire cost of such action, including defending any counterclaims brought against Achillion and paying any judgments rendered against Achillion, and shall be entitled to retain the entire amount of any recovery or
settlement; and 
  
 (c) If Emory does not elect
to pursue such infringement action, Achillion may institute the action, and, at its option, name Emory as a plaintiff. Achillion shall bear the entire cost of such action, including defending any counterclaims brought against Emory and paying any
judgments rendered against Emory, and shall be entitled to retain the entire amount of any recovery or settlement. 
  

 -23- 

 7.3 Cooperation. In any action to enforce any of the Emory Subject Technology, either Party, at
the request and expense of the other Party, shall reasonably cooperate. This provision shall not be construed to require either Party to undertake any activities, including legal discovery, at the request of any third party except as may be required
by lawful process of a court of competent jurisdiction. 
  
 ARTICLE
8 
  
 REPRESENTATIONS; WARRANTIES; INDEMNIFICATION 
  
 8.1 Representations of Authority. Achillion and Emory each represents
and warrants to the other that as of the Effective Date it has full right, power and authority to enter into this Agreement and to perform its respective obligations under this Agreement. Emory represents and warrants to Achillion that it has the
right to grant to Achillion the License, and that, as of the Effective Date, Emory is the exclusive owner of all right, title and interest in the Emory Subject Technology and that it has not granted any rights in the Emory Subject Technology which
are inconsistent with the grant of rights in this Agreement. 
  
 8.2 Intellectual Property. To the best of Emory’s knowledge, except as disclosed in writing by Emory to Achillion, as of the Effective Date, the Emory Subject Technology does not infringe or conflict with the patent or trade
secret rights of any third party. As of the Effective Date and to the best of Emory’s knowledge, there is no claim or demand of any person pertaining to, or any proceeding which is pending or threatened, against Emory in respect of Emory
Subject Technology. Nothing in this Agreement shall, however, be construed as (a) a warranty or representation by Emory as to the commercial or technical viability of any Licensed Products; (b) a warranty or representation that
Achillion’s practice of the inventions claimed in the Emory Subject Technology is or will be free from any infringement of patents or copyrights of third parties; or (c) granting by implication, estoppel, or otherwise any rights other than
those expressly set forth in this Agreement. 
  

 -24- 

 8.3 Representations by Achillion. Achillion represents and warrants that Achillion, its Affiliates
and Sublicensees shall use commercially reasonable efforts to develop and market Licensed Products and shall further exert commercially reasonable efforts to increase and extend the commercialization of Licensed Products in the United States and
such other countries as Achillion, its Affiliates and Sublicensees deems of economic interest. Achillion represents and warrants that it possess the necessary expertise and skill in the technical areas pertaining to the Emory Subject Technology to
make Licensed Products and has made its own evaluation of the capabilities, safety, utility and commercial applications of the Emory Subject Technology. 
  
 8.4 Product Liability Indemnification. 
  

	 	8.4.1 	 Achillion. Achillion shall be responsible for all product liability and product warranty for all Licensed Products manufactured for or by Achillion under
this Agreement. Achillion further agrees to defend Emory and its Affiliates at its cost and expense, and will indemnify and hold Emory and its Affiliates and their respective directors, officers, employees and agents (the “Emory Indemnified
Parties”) harmless from and against any clams, demands, liabilities, losses, costs, damages, fees or expenses (including attorneys’ fees) arising out of any claim relating to (i) any breach by Achillion of any of its representations,
warranties or obligations pursuant to this Agreement; (ii) personal injury (including death) or property damage from the development, manufacture, use, Sale or other disposition of any product (including, without limitation, Licensed Products)
or service offered by Achillion, its Affiliates and/or Sublicensees; (iii) an actual or alleged infringement, misappropriation or 

  

 -25- 

	 	 
violation by any Licensed Products of any third party intellectual property or other proprietary right arising from development, manufacture, use, Sale or
other disposition of any product (including, without limitation, Licensed Products) or service offered by Achillion, its Affiliates and/or Sublicensees. In the event of any such claim against the Emory Indemnified Parties by any third party, Emory
shall promptly notify Achillion in writing of the claim and Achillion shall manage and control, at its sole expense, the defense of the claim and its settlement. The Emory Indemnification Parties shall cooperate with Achillion and may, at their
option and expense, be represented in any such action or proceeding. Achillion shall not be liable for any litigation costs or expenses incurred by the Emory Indemnified Parties without Achillion’s prior written authorization. In addition,
Achillion shall not be responsible for the indemnification of any Emory Indemnified party to the extent arising from any gross negligence or intentional acts by such Emory Indemnified Party, or as the result of any settlement or compromise by the
Emory Indemnified Parties without Achillion’s prior written consent. 

  

	 	8.4.2 	 Emory. Emory agrees to defend Achillion and its Affiliates at its cost, and will indemnify and hold Achillion and its Affiliates and its respective
directors, officers, employees and agents (the “Achillion Indemnified Parties”) harmless from and against any claims, demands, liabilities, losses, costs, damages, fees or expenses (including attorneys fees) arising out of any claim
relating to any breach by Emory of any of its representations, 

  

 -26- 

	 	 
warranties or obligations pursuant to this Agreement. In the event of any claim against the Achillion Indemnified Parties by any third party, Achillion shall
promptly notify Emory in writing of the claim and Emory shall manage and control, at its sole expense, the defense of the claim and its settlement. The Achillion Indemnified Parties shall cooperate with Emory and may, at their option and expense, be
represented in any such action or proceeding. Emory shall not be liable for any litigation costs or expenses incurred by the Achillion Indemnified Parties without Emory’s prior written authorization. In addition, Emory shall not be responsible
for the indemnification of any Achillion Indemnified Party to the extent arising from any gross negligence or intentional acts by such Achillion Indemnified Party, or as the result of any settlement or compromise by the Achillion Indemnified Parties
without Emory’s prior written consent. 

  
 8.5 No liability. Emory shall not be liable to Achillion, its Affiliates or its Sublicensees or their respective customers for any special, incidental, indirect, or consequential damages resulting from the manufacture, testing,
design, labeling, use or Sale of Licensed Products. 
  
 8.6
Insurance. 
  

	 	8.6.1 	Achillion and any Affiliate shall procure and maintain a policy or policies of comprehensive general liability insurance, including broad form and contractual liability, in a
minimum amount of five million dollars ($5,000,000) combined single limit per occurrence and in the aggregate as respects personal injury, bodily injury and property damage arising out of such Party’s performance of this Agreement.

  

 -27- 

	 	8.6.2 	Achillion and any Affiliate shall, upon commencement of clinical trials involving Licensed Products, procure and maintain a policy or policies of product liability insurance in a
minimum amount of five million dollars ($5,000,000) combined single limit per occurrence and in the aggregate as respects bodily injury and property damage arising out of such Party’s performance of this Agreement. 

  

	 	8.6.3 	The policy or policies of insurance described in this Section 8.6 shall be issued by an insurance carrier with an A.M. Best rating of “A” or better and shall name
Emory as an additional insured with respect to Achillion’s and its Affiliates’ performance of this Agreement. Achillion and any Affiliate shall provide Emory with certificates evidencing the insurance coverage required herein and all
subsequent renewals thereof. Such certificates shall provide that the insurance carrier(s) notify Emory in writing at least thirty (30) days prior to cancellation or material change in coverage. 

  

	 	8.6.4 	Emory may periodically review the adequacy of the minimum limits of liability insurance specified in this Section 8.6, and Emory reserves the right to require Achillion and any
Affiliate to adjust the liability insurance coverages. The specified minimum insurance amounts do not constitute a limitation on the obligation of Achillion and any Affiliate to indemnify Emory under this Agreement. 

  

 -28- 

	 	8.6.5 	A Sublicensee may self-insure all or part of the limits described above pursuant to an established program of self-insurance, provided that before the Sublicensee may enter into a
program of self-insurance, it must receive a certificate from an Independent Insurance Consultant to the effect that an actuarially sound claims reserve fund has been created by the Sublicensee for such self-insurance program and is funded annually
with the actuarially required deposit (as determined by an Independent Insurance Consultant) deposited in a separate trust fund by an independent corporate trustee (which trust fund may have separate accounts). 

  
 8.7 No Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, THE
PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND EXPRESSLY DISCLAIM ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY OTHER IMPLIED WARRANTIES WITH RESPECT TO
CAPABILITIES, SAFETY, UTILITY, DEVELOPMENT OR COMMERCIAL APPLICATION OF THE LICENSED PATENTS OR EMORY SUBJECT TECHNOLOGY OR THAT THE LICENSED PRODUCTS WILL BE SUCCESSFULLY DEVELOPED HEREUNDER, AND IF DEVELOPED, WILL HAVE COMMERCIAL UTILITY OR
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
  
 ARTICLE 9

  
 USE OF EMORY’S NAME 
  
 9.1 Except as may be required by law or as may be required to be disclosed in
Achillion’s filings with the United States Securities and Exchange Commission or FDA, Achillion and its Affiliates, employees, and agents shall not use, and Achillion shall not permit its Affiliates or Sublicensees to use, Emory’s name,
the name of any of its inventors, or any 

  

 -29- 

 
adaptation thereof, or any Emory seal, logotype, trademark, or service mark, or the name, mark, or logotype of any Emory representative or organization in
any way without the prior written consent of Emory in it sole discretion. 
  
 ARTICLE 10 
  
 ADDITIONAL
PROVISIONS 
  
 10.1 No Agency. Nothing in this Agreement
shall be deemed to establish a relationship of principal and agent between Emory and Achillion or its Affiliates or Sublicensees, nor any of their agents or employees for any purpose whatsoever, nor shall this Agreement be construed as creating any
other form of legal association or arrangement which would impose liability upon one Party for the act or failure to act of the other Party. 
  
 10.2 No Assignment. This Agreement shall be binding upon and shall inure to the benefit of Achillion and its assigns and successors in interest,
and shall be binding upon and shall inure to the benefit of Emory and the successor to all or substantially all of its assets or business to which this Agreement relates. Achillion may assign its rights and obligations in this Agreement to an
Affiliate or in connection with the transfer of all, or substantially all of the business interests of Achillion to which this Agreement relates, provided that the assignee of Achillion’s rights agrees to abide by and fulfill the terms and
conditions of this Agreement as if the assignee were the original Party to this Agreement. Emory’s written consent, which shall not be unreasonably withheld or delayed, shall be required prior to any other assignment of Achillion’s rights
or obligations hereunder. Emory hereby consents to Achillion assigning this Agreement to any pharmaceutical company having a market capitalization greater than [**] U.S. dollars ($[**]). 
  
 10.3 No Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other
subsequent breach or condition, whether of like or different nature. 
  

 -30- 

 10.4 Notices. All notices, requests, consents and other communications hereunder shall be in
writing and shall be delivered in person or sent overnight delivery by Federal Express or by certified or registered mail, return receipt requested, or telexed in the case of non-U.S. residents, and shall be deemed to have been given when hand
delivered, one (l) day after mailing when mailed by overnight courier (e.g. Federal Express or Express Mail) or five (5) days after mailing by registered or certified mail, as follows (provided that notice of change of address shall
be deemed given only when received): 
  
 If to Emory: 
  
 Emory University 
 Office of Technology Transfer 
 2009 Ridgewood Drive 
 Atlanta, Georgia 30322 
 Attention: Director, Office of Technology Transfer 
  
 If to Achillion: 
  
 Kevin Eastwood 
 Senior Director Business
Development 
 Achillion Pharmaceuticals, Inc. 
 300 George Street

 New Haven, Connecticut 06511 
  
 With a required copy to: 
  
 David E. Redlick, Esq. 
 Hale and Dorr LLP 
 60 State Street 
 Boston, Massachusetts 02109 
  
 or to such other names or addresses as Achillion or Emory, as the case may be, shall designate by notice to each other person entitled to
receive notices in the manner specified in this Section 10.4. 
  

 -31- 

 10.5 Governing Law. This Agreement shall be construed and governed in accordance with the laws of
the State of New York, without giving effect to conflict of law provisions of any jurisdiction. 
  
 10.6 Compliance with Laws. Achillion, its Affiliates and Sublicensees shall comply with all prevailing laws, rules and regulations that apply to
its activities or obligations under this Agreement. Without limiting the foregoing, it is understood that this Agreement may be subject to United States laws and regulations controlling the export of technical data, computer software, laboratory
prototypes and other commodities, articles and information, including the Arms Export Control Act as amended in the Export Administration Act of 1979, and that the Parties’ obligations are contingent upon compliance with applicable United
States export laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of the United States Government and/or written assurances by Achillion, its Affiliates and/or Sublicensees
that Achillion shall not export data or commodities to certain foreign countries without prior approval of such agency. Emory neither represents that a license is not required nor that, if required, it will issue. 
  
 10.7 Binding Nature of Agreement. This Agreement shall be binding upon
and inure to the benefit of the Parties hereto and their respective heirs, personal representatives, successors and assigns, except that any assignment by Achillion must comply with Section 10.2 to be effective. 
  
 10.8 Counterparts, Headings and Exhibits. This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The headings used in this Agreement are for convenience only and are not to be considered in
construing or interpreting any term or provision of this Agreement. All attachments hereto are hereby incorporated in this Agreement and made a part hereof. 
  

 -32- 

 10.9 Integration and Amendment. This Agreement embodies the entire agreement and understanding
among the Parties and supersedes all prior agreements and understandings relating to the subject matter hereof. This Agreement may not be changed, modified, extended or terminated except by written amendment executed by an authorized representative
of each Party. 
  
 10.10 Severability. If any provision of
this Agreement shall be held to be illegal, invalid or unenforceable, then such illegality, invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other
provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein. 
  
 10.11 Force Majeure. No failure or omission by the Parties hereto in the performance of any obligation of this Agreement shall be deemed a breach
of this Agreement or create any liability if the same shall arise from any cause or causes beyond the control of the Parties, including, but not limited to, the following: acts of God; acts or omissions of any government; any rules, regulations or
orders issued by any governmental authority or by any officer, department, agency or instrumentality thereof; fire; storm; flood; earthquake; accident; war; rebellion; insurrection; riot; and invasion and provided that such failure or omission
resulting from one of the above causes is cured as soon as is practicable after the occurrence of one or more of the above-mentioned causes. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 -33- 

 IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Agreement to be executed
by their duly authorized representatives. 
  

									
	 EMORY UNIVERSITY
	 	 	 	 ACHILLION PHARMACEUTICALS, INC.

					
	 By: 
	 	 /s/ Mary L. Severson
	 	 	 	 By: 
	 	 /s/ Kevin Eastwood

	 Name: 
	 	 Mary L. Severson, J.D.
	 	 	 	 Name: 
	 	 Kevin Eastwood

	 Title: 
	 	 Asst. Vice President and Director,
 Office of Technology Transfer
	 	 	 	 Title: 
	 	 Senior Director Business Development

					
	 Date: 
	 	 July 19, 2002
	 	 	 	 Date: 
	 	 July 19, 2002

  

 -34- 

 ATTACHMENT 
  

List of Patents and Patent Applications 
  

													
	 DOCKET NO.
 (K&S/Emory)

	  	 COUNTRY

	  	 FILING
 DATE

	  	 SERIAL
 NUMBER

	  	 PATENT
 NUMBER

	  	 ISSUE
 DATE

	  	 STATUS

	 EMU 133 /
 95020
	  	US	  	1/27/95	  	09/379,276	  	5,703,058	  	12/30/97	  	Patented
							
	[**]	  	[**]	  	[**]	  	[**]	  	 	  	 	  	Pending
							
	 EMU 133PCT /
 95020
PCT
	  	PCT	  	1/29/96	  	PCT/US96/00965	  	WO96/22778	  	8/1/96	  	 Natl.
 Phase

							
	[**]	  	[**]	  	[**]	  	[**]	  	 	  	 	  	Pending
							
	[**]	  	[**]	  	[**]	  	[**]	  	 	  	 	  	Pending
							
	[**]	  	[**]	  	[**]	  	[**]	  	[**]	  	[**]	  	Pending
							
	[**]	  	[**]	  	[**]	  	[**]	  	 	  	 	  	Pending
							
	[**]	  	[**]	  	[**]	  	[**]	  	 	  	 	  	Pending

  

 -35-

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