Document:

EX-10.1

 Exhibit 10.1 
 EXECUTION VERSION 
 ERICKSON AIR-CRANE INCORPORATED 

$400,000,000 
 8.25% Second Priority Senior Secured Notes due 2020 
 PURCHASE AGREEMENT

 April 25, 2013 
 DEUTSCHE BANK SECURITIES INC. 
     as Representative of the Initial Purchasers

     named on Schedule 1 hereto, 
 60 Wall Street 
 New York, New York 10005 
 Ladies and Gentlemen: 
 Erickson Air-Crane Incorporated, a Delaware corporation
(the “Company”), and the Company’s subsidiary identified as guarantor set forth on the signature pages hereto (the “EAC Guarantor”) and, upon the Closing Date (as defined below), Evergreen Helicopters, Inc., an
Oregon corporation (“Evergreen”), its wholly owned domestic subsidiaries (together with Evergreen, the “EHI Guarantors” and, together with the EAC Guarantor, the “Guarantors”) hereby confirm its
agreement with Deutsche Bank Securities Inc. in its capacity as representative (the “Representative”) of the several parties listed on Schedule 1 hereto (the “Initial Purchasers”), as set forth below. 

The Company will use the net proceeds from the offering of the Notes (as defined below), together with cash on hand, the proceeds of the
Company’s new senior subordinated notes pursuant to the Evergreen Acquisition Agreement (as defined below) in the initial aggregate principal amount of $17.5 million, the issuance of the Company’s new series of preferred stock and the
issuance of promissory notes pursuant to the Evergreen Acquisition Agreement, if certain financial milestones are met, in an aggregate principal amount (excluding any accreted or payment-in-kind amounts) of up to $26.25 million, to (i) finance
the acquisition of Evergreen and its subsidiaries (the “Evergreen Acquisition”) and of Air Amazonia Serviços Aéreos Ltda., a Brazilian company (“Air Amazonia”) (the “Air Amazonia
Acquisition” and together with the Evergreen Acquisition, the “Acquisitions”), (ii) refinance the Company’s existing unsecured subordinated promissory notes due 2015, (iii) refinance the Company’s
existing unsecured subordinated promissory notes due 2016, (iv) refinance the Company’s existing term loan facility, dated as of June 24, 2010, as amended, (v) refinance the Company’s existing senior secured asset-based
revolving credit facility, dated as of June 24, 2010, as amended, with the Company’s new senior secured asset-based revolving credit facility (the “ABL Revolver”), to be dated as of the Closing Date (the “ABL
Refinancing”), and (vi) pay related fees and expenses. The Evergreen Acquisition will be effected pursuant to that certain stock purchase agreement, dated as of March 18, 2013 (the “Evergreen Acquisition
Agreement”). The Air Amazonia Acquisition will 

 
be effected pursuant to that certain binding term sheet, dated as of March 7, 2013, and the definitive documents to be entered into in connection therewith by the applicable parties thereto.
Upon consummation of the Acquisitions, Evergreen, Air Amazonia and their respective wholly owned direct and indirect subsidiaries will become wholly owned direct and indirect subsidiaries of the Company, as applicable. 

On the Closing Date, the EHI Guarantors shall become party to this Agreement pursuant to a joinder agreement (the “Joinder
Agreement”), substantially in the form attached hereto as Exhibit A. The representations, warranties, covenants and agreements of the EHI Guarantors under this Agreement shall not become effective until the Closing Date upon
consummation of the Evergreen Acquisition, at which time such representations, warranties, covenants and agreements shall become effective pursuant to the terms of the Joinder Agreement. 

The Company will, at the Time of Execution, (x) enter into an escrow agreement by and among the Company, Wilmington Trust, National
Association, as escrow agent (the “Escrow Agent”) and the Trustee (as defined below) and (y) deposit into an account (the “Escrow Account”) held by the Escrow Agent $45.0 million of the proceeds of this
offering and an additional amount in cash or specified cash equivalents (the “Escrow Property”), sufficient to redeem $45.0 million in principal amount of the Notes (as defined below) in cash at a redemption price equal to 100% of
the principal amount of such Notes, plus accrued and unpaid interest on the Notes to, but excluding August 5, 2013 (the “Escrow Redemption Amount”), as described in the Escrow Agreement. As set forth in the Escrow Agreement,
the Escrow Property will be released to the Company if the conditions set forth in the Escrow Agreement are satisfied, all of which will be provided for in the Escrow Agreement, on or prior to the dates specified in the Escrow Agreement. The Escrow
Property will be held in the Escrow Account in accordance with the terms and provisions set forth in the Escrow Agreement, and released in accordance with the conditions set forth therein. 

Section 1. The Securities. Subject to the terms and conditions herein contained, the Company proposes to issue and sell to
the Initial Purchasers $400,000,000 aggregate principal amount of the Company’s Second Priority Senior Secured Notes due 2020 (the “Notes”). The Notes are to be issued under an indenture (the “Indenture”) to be
dated as of May 2, 2013, by and among the Company, the Guarantors and Wilmington Trust, National Association, as Trustee (the “Trustee”). 
 The payment of principal, premium and interest on the Notes will be fully and unconditionally guaranteed (the “Guarantees”) on a senior secured second priority basis, jointly and
severally by the Guarantors. 
 The Notes will be secured on a second priority basis, subject to certain Permitted Liens (as
defined in the Indenture), by liens on the assets (the “Collateral”) of the Company and the Guarantors that have been pledged on a senior secured first priority basis as collateral securing the ABL Revolver, as more particularly
described in the Pricing Disclosure Package (as defined below) and documented by a security agreement dated as of the Closing Date (the “Security Agreement”), and other instruments evidencing or creating a security interest
(collectively, with the Intercreditor Agreement (as defined below), the “Security Documents”) in favor of Wilmington Trust, National Association, as collateral agent (in such capacity, the “Collateral Agent”), for
its benefit and the benefit of the Trustee and the holders of the Notes. 

  
 -2-

 The liens on the Collateral securing the Notes will be subject to an Intercreditor
Agreement, dated as of the Closing Date (the “Intercreditor Agreement”), by and between the Collateral Agent and Wells Fargo Bank, N.A., as administrative agent and collateral agent under the ABL Revolver, and acknowledged by the
Company and the Guarantors. 
 The Notes will be offered and sold to the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “Act”), in reliance on exemptions therefrom. 
 In connection with the
sale of the Notes, the Company has prepared a preliminary offering memorandum dated April 17, 2013, (the “Preliminary Memorandum”) setting forth or including a description of the terms of the Notes, the terms of the offering of
the Notes, a description of the Company and any material developments relating to the Company after the date of the most recent historical financial statements included therein. As used herein, “Pricing Disclosure Package” shall
mean the Preliminary Memorandum, as supplemented or amended by the written communications listed on Annex A hereto in the most recent form that has been prepared and delivered by the Company to the Initial Purchasers in connection with their
solicitation of offers to purchase Notes prior to the time when sales of the Notes were first made (the “Time of Execution”). Promptly after the Time of Execution and in any event no later than the second Business Day following the
Time of Execution, the Company will prepare and deliver to each Initial Purchaser a final offering memorandum (the “Final Memorandum”), which will consist of the Preliminary Memorandum with such changes therein as are required to
reflect the information contained in the amendments or supplements listed on Annex A hereto. The Company hereby confirms that it has authorized the use of the Pricing Disclosure Package, the Final Memorandum and the Recorded Road Show (defined
below) in connection with the offer and sale of the Notes by the Initial Purchasers. 
 The Initial Purchasers and their direct
and indirect transferees of the Notes will be entitled to the benefits of the Registration Rights Agreement (the “Registration Rights Agreement”), pursuant to which the Company and the Guarantors have agreed, among other things, to
file a registration statement (the “Registration Statement”) with the Securities and Exchange Commission (the “Commission”) registering the Notes or the Exchange Notes (as defined in the Registration Rights
Agreement) under the Act. 
 This Agreement, the Notes, the Indenture, the Security Documents and the Registration Rights
Agreement are hereinafter referred to collectively as the “Transaction Documents.” 

  
 -3-

 Section 2. Representations and Warranties. As of the Time of Execution, the
Company and the EAC Guarantor, jointly and severally, and at the Closing Date, upon execution and delivery of the Joinder Agreement, the Company and the Guarantors, represent and warrant to and agree with each of the Initial Purchasers as follows
(references in this Section 2 to the “Offering Memorandum” are to (i) the Pricing Disclosure Package in the case of representations and warranties made as of the Time of Execution and (ii) both the Pricing Disclosure
Package and the Final Memorandum in the case of representations and warranties made at the Closing Date): 
 (a) The Preliminary
Memorandum, on the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. At
the Time of Execution, the Pricing Disclosure Package does not, and on the Closing Date (as defined in Section 3 below), will not, and the Final Memorandum as of its date and on the Closing Date will not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no representation or
warranty as to the information contained in or omitted from the Pricing Disclosure Package and Final Memorandum, in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of the Initial Purchasers
through the Representative specifically for inclusion therein. The Company has not distributed or referred to and will not distribute or refer to any written communications (as defined in Rule 405 of the Act) that constitutes an offer to sell or
solicitation of an offer to buy the Notes (each such communication by the Company or its agents and representatives (other than the Pricing Disclosure Package and Final Memorandum), an “Issuer Written Communication”) other than the
Pricing Disclosure Package, the Final Memorandum and the recorded electronic road show made available to investors (the “Recorded Road Show”). Any information in an Issuer Written Communication that is not otherwise included in the
Pricing Disclosure Package and the Final Memorandum does not conflict with the Pricing Disclosure Package or the Final Memorandum and, each Issuer Written Communication, when taken together with the Pricing Disclosure Package does not at the Time of
Execution and when taken together with the Final Memorandum at the Closing Date will not, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. 
 (b) As of the Closing Date, the Company will have the authorized,
issued and outstanding capitalization set forth in the Offering Memorandum under the heading “Capitalization”; as of the date hereof, all of the subsidiaries of the Company are listed in Schedule 2 attached hereto (each, a
“Subsidiary” and collectively, the “Subsidiaries”; provided that, from and after the respective consummations of the Evergreen Acquisition and the Air Amazonia Acquisition, Evergreen and its subsidiaries and Air
Amazonia and its subsidiaries, respectively, shall be deemed to be Subsidiaries); all of the outstanding shares of capital stock of the Company and the Subsidiaries have been, and as of the Closing Date will be, duly authorized and validly issued,
are fully paid and nonassessable and were not issued in violation of any preemptive or similar rights; as of the Closing Date, all of the outstanding shares of capital stock of the Company and of each of the Subsidiaries will be free and clear of
all liens, encumbrances, equities and claims or restrictions on transferability (other than those imposed by the Act and the securities or “Blue Sky” laws of certain jurisdictions) or voting. Except as set forth in the Offering Memorandum,
there are no (i) options, warrants or other rights to purchase, (ii) agreements or other obligations to issue or (iii) other rights to convert any obligation into, or exchange any securities for, shares of capital stock of or
ownership interests in the Company, the EAC Guarantor or any of the Subsidiaries outstanding. Except for the Subsidiaries or as disclosed in the Offering Memorandum, the Company does not own, directly or indirectly, any shares of capital stock or
any other equity or long-term debt securities or have any equity interest in any firm, partnership, joint venture or other entity. 

  
 -4-

 (c) Each of the Company and the Subsidiaries is duly incorporated, validly existing and in
good standing under the laws of its respective jurisdiction of incorporation and has all requisite corporate power and authority to own its properties and conduct its business as now conducted and as described in the Offering Memorandum; each of the
Company and the Subsidiaries is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions where the ownership or leasing of its properties or the conduct of its business requires such qualification, except
where the failure to be so qualified would not, individually or in the aggregate, have a material adverse effect on the general affairs, management, business, condition (financial or otherwise), prospects or results of operations of the Company and
the Subsidiaries, taken as a whole (any such event, a “Material Adverse Effect”). 
 (d) The Company has all
requisite corporate power and authority to execute, deliver and perform each of its obligations under the Notes, the Exchange Notes and the Private Exchange Notes (as defined in the Registration Rights Agreement). The Notes, when issued, will be in
the form contemplated by the Indenture. The Notes, the Exchange Notes and the Private Exchange Notes have each been duly and validly authorized by the Company and, when executed by the Company and authenticated by the Trustee in accordance with the
provisions of the Indenture and, in the case of the Notes, when delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement, will constitute valid and legally binding obligations of the Company, entitled to the
benefits of the Indenture, and enforceable against the Company in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors’ rights generally, and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought (collectively, the “Enforceability Exceptions”).

 (e) Each Guarantor has all requisite corporate power and authority to execute, deliver and perform its obligations under the
Guarantees. The Guarantees, when issued, will be in the form contemplated by the Indenture. Prior to the Closing Date, the Guarantees will have been duly and validly authorized by each Guarantor, and when the Notes are authenticated by the Trustee
in accordance with the provisions of the Indenture, will have been duly executed, issued and delivered and will constitute valid and legally binding obligations of each Guarantor in accordance with its terms, subject to the Enforceability
Exceptions. 
 (f) The Company and each Guarantor has all requisite corporate power and authority to execute, deliver and
perform its obligations under the Indenture. The Indenture meets the requirements for qualification under the Trust Indenture Act of 1939, as amended (the “TIA”). On the Closing Date, the Indenture will have been duly and validly
authorized by the Company and each Existing Guarantor (and, upon the Closing Date, will have been duly and validly authorized by each EHI Guarantor), when executed and delivered by the Company and each Guarantor (assuming the due authorization,
execution and delivery by the Trustee), will constitute a valid and legally binding agreement of the Company and each Guarantor, enforceable against the Company and each Guarantor in accordance with its terms, except that the enforcement thereof may
be subject to the Enforceability Exceptions. 

  
 -5-

 (g) The Company and each Guarantor has all requisite corporate power and authority to
execute, deliver and perform its obligations under the Registration Rights Agreement. On the Closing Date, the Registration Rights Agreement will have been duly and validly authorized by the Company and the EAC Guarantor (and, upon the Closing Date,
will have been duly and validly authorized by each EHI Guarantor), and, when executed and delivered by the Company and each Guarantor (assuming the due authorization, execution and delivery by the Representatives), will constitute a valid and
legally binding agreement of the Company and each Guarantor, enforceable against the Company and each Guarantor in accordance with its terms, except that (A) the enforcement thereof may be subject to the Enforceability Exceptions and
(B) any rights to indemnity or contribution thereunder may be limited by federal and state securities laws and public policy considerations. 
 (h) The Company and each Guarantor has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated
hereby. This Agreement and the consummation by the Company and the Guarantors of the transactions contemplated hereby have been duly and validly authorized by the Company and the EAC Guarantor and, upon the Closing Date, will have been duly and
validly authorized by each EHI Guarantor. This Agreement has been duly executed and delivered by the Company and the EAC Guarantor. 
 (i) The Company and each Guarantor has all requisite corporate power and authority to execute, deliver and perform its obligations under each Security Document to which it is a party. Each Security
Document has been duly and validly authorized by the Company and the EAC Guarantor (and, upon the Closing Date, each EHI Guarantor) party thereto enforceable against each of them in accordance with its terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights generally and equitable principals of general applicability and except as to rights to indemnification under any Security Document may be limited under applicable law. Upon execution and
delivery thereof by the Company and each Guarantor party thereto in connection with the sale of the Notes, the Security Documents will create in favor of the Collateral Agent for the benefit of itself, the Trustee and the holders of the Notes, valid
and enforceable security interests in and liens on the Collateral and, upon the filing of appropriate Uniform Commercial Code financing statements and mortgages and the taking of the other actions, in each case as further described in the Security
Documents, the security interests in and liens on the rights of the Company and the Guarantors in such Collateral will be perfected security interests and liens, superior to and prior to the liens of all third persons other than Permitted Liens and
except as otherwise provided for in such Security Documents. 
 (i) On the Closing Date, each of the EHI Guarantors will have
all requisite corporate power and authority to execute, deliver and perform their obligations under the Joinder Agreement. 

(j) The Escrow Agreement, which will be substantially in the form previously delivered to the Representative, has been duly authorized by
the Company and, assuming the execution and delivery thereof by the other parties thereto, as of the Time of Execution will have been duly executed and delivered, and will constitute a valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to the Enforceability Limitations; and the Escrow Agreement will conform in all material respects to the descriptions thereof in the Pricing Disclosure Package and the Offering Memorandum.

  
 -6-

 (k) No consent, approval, authorization or order of any court or governmental agency or
body, or third party is required for the issuance and sale by the Company of the Notes to the Initial Purchasers or the consummation by the Company and the EAC Guarantor (or, upon the Closing Date, the EHI Guarantors) of the other transactions
contemplated hereby, except such as have been obtained and such as may be required under state securities or “Blue Sky” laws in connection with the purchase and resale of the Notes by the Initial Purchasers. None of the Company or the
Subsidiaries is (i) in violation of its certificate of incorporation or bylaws (or similar organizational document), (ii) in breach or violation of any statute, judgment, decree, order, rule or regulation applicable to any of them or any
of their respective properties or assets, except for any such breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect, or (iii) in breach of or default under (nor has any event occurred that, with
notice or passage of time or both, would constitute a default under) or in violation of any of the terms or provisions of any indenture, mortgage, deed of trust, loan agreement, note, lease, license, franchise agreement, permit, certificate,
contract or other agreement or instrument to which any of them is a party or to which any of them or their respective properties or assets is subject (collectively, “Contracts”), except for any such breach, default, violation or
event that would not, individually or in the aggregate, have a Material Adverse Effect. 
 (l) The execution, delivery and
performance by the Company and the EAC Guarantor (and, upon the Closing Date, each EHI Guarantor) of the Transaction Documents and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the issuance and sale of the Notes to the Initial Purchasers) will not conflict with or constitute or result in a breach of or a default under (or an event that with notice or passage of time or both would constitute a default under) or violation of
any of (i) the terms or provisions of any Contract (including, without limitation, the ABL Revolver), except for any such conflict, breach, violation, default or event that would not, individually or in the aggregate, have a Material Adverse
Effect, (ii) the certificate of incorporation or bylaws (or similar organizational document) of the Company or any of the Subsidiaries or (iii) (assuming compliance with all applicable state securities or “Blue Sky” laws and
assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 9 hereof) any statute, judgment, decree, order, rule or regulation applicable to the Company or any of the Subsidiaries or any of their respective
properties or assets, except for any such conflict, breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect. 
 (m) The audited consolidated financial statements of (i) the Company and the Subsidiaries included in the Offering Memorandum present fairly in all material respects the financial position, results
of operations and cash flows of the Company and the Subsidiaries at the dates and for the periods to which they relate and (ii) Evergreen and its subsidiaries included in the Offering Memorandum present fairly in all material respects the
financial position, results of operations and cash flows of Evergreen and its subsidiaries at the dates and for the periods to which they relate. Such financial statements of the Company and Evergreen have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis, except as otherwise stated therein. The summary and selected financial and statistical data in the Offering Memorandum present fairly in all material respects the information shown
therein and have 

  
 -7-

 
been prepared and compiled on a basis consistent with the audited financial statements included therein, except as otherwise stated therein. Grant Thornton LLP is an independent public accounting
firm with respect to the Company, Crowe Horwath LLP is an independent public accounting firm with respect to Evergreen and GHP Horwath, P.C. is an independent public accounting firm with respect to Evergreen, within the meaning of the Act and the
rules and regulations promulgated thereunder. This representation, insofar as it relates to Evergreen and its subsidiaries, Crowe Horwath LLP and GHP Horwath, P.C. as of the date hereof, but not as of the Closing Date, is to the Company’s
knowledge. 
 (n) The pro forma financial statements (including the notes thereto) and the other pro forma financial information
included in the Offering Memorandum (i) comply as to form in all material respects with the applicable requirements of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
(ii) have been prepared in accordance with the Commission’s rules and guidelines with respect to pro forma financial statements and (iii) have been properly computed on the bases described therein; the assumptions used in the
preparation of the pro forma financial data and other pro forma financial information included in the Offering Memorandum are reasonable and the adjustments used therein are appropriate to give effect to the transactions or circumstances referred to
therein. 
 (o) There is not pending or, to the knowledge of the Company, threatened any action, suit, proceeding, inquiry or
investigation to which the Company or any of the Subsidiaries is a party, or to which the property or assets of the Company or any of the Subsidiaries are subject, before or brought by any court, arbitrator or governmental agency or body that, if
determined adversely to the Company or any of the Subsidiaries, would, individually or in the aggregate, have a Material Adverse Effect or that seeks to restrain, enjoin, prevent the consummation of or otherwise challenge the issuance or sale of the
Notes to be sold hereunder or the consummation of the other transactions described in the Offering Memorandum. 
 (p) Each of
the Company and the Subsidiaries possesses all licenses, permits, certificates, consents, orders, approvals and other authorizations from, and has made all declarations and filings with, all federal, state, local and other governmental authorities,
all self-regulatory organizations and all courts and other tribunals, presently required or necessary to own or lease, as the case may be, and to operate its respective properties and to carry on its respective businesses as now or proposed to be
conducted as set forth in the Offering Memorandum (“Permits”), except where the failure to obtain such Permits would not, individually or in the aggregate, have a Material Adverse Effect; each of the Company and the Subsidiaries has
fulfilled and performed all of its obligations with respect to such Permits and no event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or results in any other material impairment of the
rights of the holder of any such Permit; and none of the Company or the Subsidiaries has received any notice of any proceeding relating to revocation or modification of any such Permit, except as described in the Offering Memorandum and except where
such revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect. 
 (q) Since the
date of the most recent financial statements appearing in the Offering Memorandum, except as described therein, (i) none of the Company or the Subsidiaries has incurred any liabilities or obligations, direct or contingent, or entered into or
agreed to enter 

  
 -8-

 
into any transactions or contracts (written or oral) not in the ordinary course of business, which liabilities, obligations, transactions or contracts would, individually or in the aggregate, be
material to the general affairs, management, business, condition (financial or otherwise), prospects or results of operations of the Companies and the Subsidiaries, taken as a whole, (ii) none of the Company or the Subsidiaries has purchased
any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind on its capital stock (other than with respect to any of such Subsidiaries, the purchase of, or dividend or distribution on, capital
stock owned by the Company) and (iii) there shall not have been any material change in the capital stock or long-term indebtedness of the Company or the Subsidiaries. 
 (r) Each of the Company and the Subsidiaries has filed all necessary federal, state and foreign income and franchise tax returns, except where the failure to so file such returns would not, individually
or in the aggregate, have a Material Adverse Effect, and has paid all taxes shown as due thereon; and other than tax deficiencies that the Company or any Subsidiary is contesting in good faith and for which the Company or such Subsidiary has
provided adequate reserves, there is no tax deficiency that has been asserted against the Company or any of the Subsidiaries that would have, individually or in the aggregate, a Material Adverse Effect. 

(s) The statistical and market-related data included in the Offering Memorandum are based on or derived from sources that the Company and
the Subsidiaries believe to be reliable and accurate in all material respects. 
 (t) None of the Company, the Subsidiaries or
any agent acting on their behalf has taken or will take any action that might cause this Agreement or the sale of the Notes to violate Regulation T, U or X of the Board of Governors of the Federal Reserve System, in each case as in effect, or
as the same may hereafter be in effect, on the Closing Date. 
 (u) Each of the Company and the Subsidiaries has good and
marketable title to all real property and good title to all personal property described in the Offering Memorandum as being owned by it and good and marketable title to a leasehold estate in the real and personal property described in the Offering
Memorandum as being leased by it free and clear of all liens, charges, encumbrances or restrictions, except as described in the Offering Memorandum or to the extent the failure to have such title or the existence of such liens, charges, encumbrances
or restrictions would not, individually or in the aggregate, have a Material Adverse Effect. All leases, contracts and agreements to which the Company or any of the Subsidiaries is a party or by which any of them is bound are valid and enforceable
against the Company or such Subsidiary, and are valid and enforceable against the other party or parties thereto and are in full force and effect with only such exceptions as would not, individually or in the aggregate, have a Material Adverse
Effect. The Company and the Subsidiaries own or possess adequate licenses or other rights to use all patents, trademarks, service marks, trade names, copyrights and know-how necessary to conduct the businesses now or proposed to be operated by them
as described in the Offering Memorandum, and none of the Company or the Subsidiaries has received any notice of infringement of or conflict with (or knows of any such infringement of or conflict with) asserted rights of others with respect to any
patents, trademarks, service marks, trade names, copyrights or know-how that, if such assertion of infringement or conflict were sustained, would have a Material Adverse Effect. 

  
 -9-

 (v) There are no legal or governmental proceedings involving or affecting the Company or any
Subsidiary or any of their respective properties or assets that would be required to be described in a prospectus pursuant to the Act that are not described in the Offering Memorandum, nor are there any material contracts or other documents that
would be required to be described in a prospectus pursuant to the Act that are not described in the Offering Memorandum. 
 (w)
Except as would not, individually or in the aggregate, have a Material Adverse Effect (A) each of the Company and the Subsidiaries is in compliance with and not subject to liability under applicable Environmental Laws (as defined below),
(B) each of the Company and the Subsidiaries has made all filings and provided all notices required under any applicable Environmental Law, and has and is in compliance with all Permits required under any applicable Environmental Laws and each
of them is in full force and effect, (C) there is no civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation, investigation, proceeding, notice or demand letter or request for information pending or, to the
knowledge of the Company or any of the Subsidiaries, threatened against the Company or any of the Subsidiaries under any Environmental Law, (D) no lien, charge, encumbrance or restriction has been recorded under any Environmental Law with
respect to any assets, facility or property owned, operated, leased or controlled by the Company or any of the Subsidiaries, (E) none of the Company or the Subsidiaries has received notice that it has been identified as a potentially
responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or any comparable state law and (F) no property or facility of the Company or any of the
Subsidiaries is (i) listed or proposed for listing on the National Priorities List under CERCLA or is (ii) listed in the Comprehensive Environmental Response, Compensation, Liability Information System List promulgated pursuant to CERCLA,
or on any comparable list maintained by any state or local governmental authority. 
 For purposes of this
Agreement, “Environmental Laws” means the common law and all applicable federal, state and local laws or regulations, codes, orders, decrees, judgments or injunctions issued, promulgated, approved or entered thereunder, relating to
pollution or protection of public or employee health and safety or the environment, including, without limitation, laws relating to (i) emissions, discharges, releases or threatened releases of hazardous materials into the environment
(including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata), (ii) the manufacture, processing, distribution, use, generation, treatment, storage, disposal, transport or handling of hazardous
materials, and (iii) underground and above ground storage tanks and related piping, and emissions, discharges, releases or threatened releases therefrom. 
 (x) Except as would not, individually or in the aggregate, have a Material Adverse Effect, there is no strike, labor dispute, slowdown or work stoppage by or with the employees of the Company or any of
the Subsidiaries that is pending or, to the knowledge of the Company or any of the Subsidiaries, threatened. 
 (y) Except as
would not, individually or in the aggregate, have a Material Adverse Effect, each of the Company and the Subsidiaries carries insurance in such amounts and covering such risks as is adequate for the conduct of its business and the value of its
properties. 

  
 -10-

 (z) None of the Company or the Subsidiaries has any liability for any prohibited transaction
or funding deficiency or any complete or partial withdrawal liability with respect to any pension, profit sharing or other plan that is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), to which
the Company or any of the Subsidiaries makes or ever has made a contribution and in which any employee of the Company or of any Subsidiary is or has ever been a participant. With respect to such plans, the Company and each Subsidiary is in
compliance in all material respects with all applicable provisions of ERISA. 
 (aa) Each of the Company and the Subsidiaries
(i) makes and keeps accurate books and records and (ii) maintains internal accounting controls that provide reasonable assurance that (A) transactions are executed in accordance with management’s authorization,
(B) transactions are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its assets, (C) access to its assets is permitted only in accordance with management’s authorization and
(D) the reported accountability for its assets is compared with existing assets at reasonable intervals. The Company and the Subsidiaries maintain systems of “internal control over financial reporting” (as defined in
Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, management to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. 

(bb) The Company and the Subsidiaries maintain an effective system of “disclosure controls and procedures” (as defined in
Rule 13a-15(e) of the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the Commission’s rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions
regarding required disclosure. The Company and the Subsidiaries have carried out evaluations, with the participation of management, of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.

 (cc) None of the Company or the Subsidiaries is an “investment company” or “promoter” or “principal
underwriter” for an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended, and the rules and regulations thereunder. 
 (dd) Each of the Transaction Documents will conform in all material respects to the descriptions thereof in the Offering Memorandum. 

(ee) No holder of securities of the Company or any Subsidiary will be entitled to have such securities registered under the registration
statements required to be filed by the Company pursuant to the Registration Rights Agreement other than as expressly permitted thereby. 
 (ff) Immediately after the consummation of the transactions contemplated by this Agreement, the fair value and present fair saleable value of the assets of each of the Company and the Subsidiaries (each
on a consolidated basis) will exceed the sum of its stated liabilities 

  
 -11-

 
and identified contingent liabilities; none of the Company or the Subsidiaries (each on a consolidated basis) is, nor will any of the Company or the Subsidiaries (each on a consolidated basis)
be, after giving effect to the execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby, (a) left with unreasonably small capital with which to carry on its business as it is proposed
to be conducted, (b) unable to pay its debts (contingent or otherwise) as they mature or (c) otherwise insolvent. 

(gg) None of the Company, the Subsidiaries or any of their respective Affiliates (as defined in Rule 501(b) of Regulation D under
the Act) has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Act) that is or could be integrated with the sale of the Notes
in a manner that would require the registration under the Act of the Notes or (ii) engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Act) in connection with the offering of the
Notes or in any manner involving a public offering within the meaning of Section 4(2) of the Act. Assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 9 hereof, it is not necessary in connection
with the offer, sale and delivery of the Notes to the Initial Purchasers in the manner contemplated by this Agreement to register any of the Notes under the Act or to qualify the Indenture under the TIA. 

(hh) No securities of the Company or any Subsidiary are of the same class (within the meaning of Rule 144A under the Act) as the
Notes and listed on a national securities exchange registered under Section 6 of the Exchange Act, or quoted in a U.S. automated inter-dealer quotation system. 
 (ii) None of the Company or the Subsidiaries has taken, nor will any of them take, directly or indirectly, any action designed to, or that might be reasonably expected to, cause or result in stabilization
or manipulation of the price of the Notes. 
 (jj) None of the Company, the Subsidiaries, any of their respective Affiliates or
any person acting on its or their behalf (other than the Initial Purchasers) has engaged in any directed selling efforts (as that term is defined in Regulation S under the Act (“Regulation S”)) with respect to the Notes; the
Company, the Subsidiaries and their respective Affiliates and any person acting on its or their behalf (other than the Initial Purchasers) have complied with the offering restrictions requirement of Regulation S. 

(kk) Neither the Company nor any of the Subsidiaries nor, to the best knowledge of the Company and each of the Guarantors, any director,
officer, agent, employee, Affiliate or other person associated with or acting on behalf of the Company or any of the Subsidiaries has: (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977 (the “FCPA”); or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. To the knowledge of the Company, its Affiliates have conducted their businesses on behalf of the
Company in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. 

  
 -12-

 (ll) The operations of the Company and the Subsidiaries are and have been conducted at all
times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator involving the Company or any of the Subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened. 

(mm) Neither the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or
Affiliate of the Company or any of the Subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or
indirectly use the proceeds of the offering contemplated hereby, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by OFAC. 
 Any certificate signed by any officer of the Company or
any Subsidiary and delivered to any Initial Purchaser or to counsel for the Initial Purchasers shall be deemed a joint and several representation and warranty by the Company and each of the Subsidiaries to each Initial Purchaser as to the matters
covered thereby. 
 Section 3. Purchase, Sale and Delivery of the Notes. On the basis of the representations,
warranties, agreements and covenants herein contained and subject to the terms and conditions herein set forth, the Company agrees to issue and sell to the Initial Purchasers, and the Initial Purchasers, acting severally and not jointly, agree to
purchase the Notes in the respective amounts set forth on Schedule 1 hereto from the Company at 97.75% of their principal amount. One or more certificates in definitive form for the Notes that the Initial Purchasers have agreed to
purchase hereunder, and in such denomination or denominations and registered in such name or names as the Initial Purchasers request upon notice to the Company at least 36 hours prior to the Closing Date, shall be delivered by or on behalf of the
Company to the Initial Purchasers, against payment by or on behalf of the Initial Purchasers of the purchase price therefor by wire transfer (same day funds) (a portion of which, as determined by the Escrow Agreement, will be made to the account(s)
and amount(s) specified in the Escrow Agreement or otherwise by the Escrow Agent), to such account or accounts as the Company shall specify prior to the Closing Date, or by such means as the parties hereto shall agree prior to the Closing Date. Such
delivery of and payment for the Notes shall be made at the offices of Cahill Gordon & Reindel LLP, 80 Pine Street, New York, New York at 10:00 A.M., New York time, on May 2, 2013, or at such other place, time or date as
the Initial Purchasers, on the one hand, and the Company, on the other hand, may agree upon, such time and date of delivery against payment being herein referred to as the “Closing Date.” The Company will make such certificate or
certificates for the Notes available for checking and packaging by the Initial Purchasers at the offices of Deutsche Bank Securities Inc. in New York, New York, or at such other place as Deutsche Bank Securities Inc. may reasonably designate, at
least 24 hours prior to the Closing Date. 

  
 -13-

 Section 4. Offering by the Initial Purchasers. The Initial Purchasers propose to
make an offering of the Notes at the price and upon the terms set forth in the Pricing Disclosure Package and the Final Memorandum as soon as practicable after this Agreement is entered into and as in the judgment of the Initial Purchasers is
advisable. 
 Section 5. Covenants of the Company and the Guarantors. The Company and the EAC Guarantor (and, upon
the Closing Date, the EHI Guarantors) covenant and agree with each of the Initial Purchasers as follows: 
 (a) Until the later
of (i) the completion of the distribution of the Notes by the Initial Purchasers and (ii) the Closing Date, the Company will not amend or supplement the Pricing Disclosure Package and the Final Memorandum or otherwise distribute or refer
to any written communication (as defined under Rule 405 of the Act) that constitutes an offer to sell or a solicitation of an offer to buy the Notes (other than the Pricing Disclosure Package, the Recorded Road Show and the Final Memorandum) or file
any report with the Commission under the Exchange Act unless the Initial Purchasers shall previously have been advised and furnished a copy for a reasonable period of time prior to the proposed amendment, supplement or report and as to which the
Initial Purchasers shall have given their consent. The Company will promptly, upon the reasonable request of the Initial Purchasers or counsel for the Initial Purchasers, make any amendments or supplements to the Pricing Disclosure Package and the
Final Memorandum that may be necessary or advisable in connection with the resale of the Notes by the Initial Purchasers. 
 (b)
The Company and the EAC Guarantor (and, upon the Closing Date, the EHI Guarantors) will cooperate with the Initial Purchasers in arranging for the qualification of the Notes for offering and sale under the securities or “Blue Sky” laws of
which jurisdictions as the Initial Purchasers may designate and will continue such qualifications in effect for as long as may be necessary to complete the resale of the Notes; provided, however, that in connection therewith, the
Company shall not be required to qualify as a foreign corporation or to execute a general consent to service of process in any jurisdiction or subject itself to taxation in excess of a nominal dollar amount in any such jurisdiction where it is not
then so subject. 
 (c) (1) If, at any time prior to the completion of the sale by the Initial Purchasers of the Notes or the
Private Exchange Notes, any event occurs or information becomes known as a result of which the Pricing Disclosure Package and the Final Memorandum as then amended or supplemented would include any untrue statement of a material fact, or omit to
state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if for any other reason it is necessary at any time to amend or supplement the Pricing Disclosure
Package and the Final Memorandum to comply with applicable law, the Company will promptly notify the Initial Purchasers through the Representative thereof and will prepare, at the expense of the Company, an amendment or supplement to the Pricing
Disclosure Package and the Final Memorandum that corrects such statement or omission or effects such compliance and (2) if at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of which any of
the Pricing Disclosure Package as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading or any Issuer Written Communication 

  
 -14-

 
would conflict with the Pricing Disclosure Package as then amended or supplemented, or (ii) it is necessary to amend or supplement any of the Pricing Disclosure Package so that any of the
Pricing Disclosure Package or any Issuer Written Communication will comply with law, the Company will immediately notify the Initial Purchasers through the Representative thereof and forthwith prepare and, subject to paragraph (a) above,
furnish to the Initial Purchasers through the Representative such amendments or supplements to any of the Pricing Disclosure Package or any Issuer Written Communication (it being understood that any such amendments or supplements may take the form
of an amended or supplemented Final Memorandum) as may be necessary so that the statements in any of the Pricing Disclosure Package as so amended or supplemented will not, in light of the circumstances under which they were made, be misleading or so
that any Issuer Written Communication will not conflict with the Pricing Disclosure Package or so that the Pricing Disclosure Package or any Issuer Written Communication as so amended or supplemented will comply with law. 

(d) The Company will, without charge, provide to the Initial Purchasers and to counsel for the Initial Purchasers as many copies of the
Pricing Disclosure Package, any Issuer Written Communication and the Final Memorandum or any amendment or supplement thereto as the Initial Purchasers may reasonably request. 
 (e) The Company will apply the net proceeds from the sale of the Notes as set forth under “Use of Proceeds” in the Pricing Disclosure Package and the Final Memorandum. 

(f) For so long as any of the Notes remain outstanding (unless the following information is publicly available via EDGAR or any successor
platform thereof), the Company will furnish to the Initial Purchasers copies of all reports and other communications (financial or otherwise) furnished by the Company to the Trustee or to the holders of the Notes and, as soon as available (unless
the following information is publicly available via EDGAR or any successor platform thereof), copies of any reports or financial statements furnished to or filed by the Company with the Commission or any national securities exchange on which any
class of securities of the Company may be listed. 
 (g) Prior to the Closing Date, the Company will furnish to the Initial
Purchasers, as soon as they have been prepared, a copy of any unaudited interim financial statements of the Company for any period subsequent to the period covered by the most recent financial statements appearing in the Pricing Disclosure Package
and the Final Memorandum. 
 (h) None of the Company, the EAC Guarantor (or, upon the Closing Date, any EHI Guarantor) or any of
its Affiliates will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the Act) that could be integrated with the sale of the Notes in a manner which would require the
registration under the Act of the Notes. 
 (i) The Company and the EAC Guarantor (and, upon the Closing Date, the EHI
Guarantors) will not, and will not permit any of the Subsidiaries or their respective Affiliates or persons acting on their behalf to, engage in any form of general solicitation or general advertising (as those terms are used in Regulation D under
the Act) in connection with the offering of the Notes or in any manner involving a public offering within the meaning of Section 4(2) of the Act. 

  
 -15-

 (j) For a period of two years following the Closing Date, the Company will make available at
its expense, upon request, to any holder of such Notes and any prospective purchasers thereof the information specified in Rule 144A(d)(4) under the Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act.

 (k) The Company will use its best efforts to permit the Notes to be eligible for clearance and settlement through The
Depository Trust Company. 
 (l) During the period beginning on the date hereof and continuing to the date that is 90 days after
the Closing Date, without the prior written consent of Deutsche Bank Securities Inc., the Company will not offer, sell, contract to sell or otherwise dispose of, except as provided hereunder, any securities of the Company (or guaranteed by the
Company) that are substantially similar to the Notes. 
 (m) In connection with Notes offered and sold in an off shore
transaction (as defined in Regulation S) the Company will not register any transfer of such Notes not made in accordance with the provisions of Regulation S and will not, except in accordance with the provisions of Regulation S, if applicable, issue
any such Notes in the form of definitive securities. 
 (n) None of the Company, the EAC Guarantor (or, upon the Closing Date,
EHI Guarantors) or any of their respective Affiliates will engage in any directed selling efforts (as that term is defined in Regulation S) with respect to the Notes. 
 (o) The Company and each Guarantor will not, and will not permit any of their respective affiliates (as defined in Rule 144 under the Securities Act) to, resell any of the Notes that have been acquired by
them, except for Notes purchased by the Company, any Guarantor or any of their respective affiliates and resold in a transaction registered under the Securities Act. 
 (p) In accordance with the terms of the Indenture, the Initial Purchasers and the Trustee shall have received each of the following which shall be reasonably satisfactory in form and substance to the
Initial Purchasers, the Collateral Agent, the Trustee and each of their respective counsel with respect to the Collateral, as appropriate: 
 (i) policies or certificates of insurance as required by the Security Documents, or Indenture, which policies or certificates shall reflect the Collateral Agent for its benefit and the benefit of the
Trustee and the holders of the Notes, as additional insured and loss payee and shall otherwise bear endorsements of the character required pursuant to the Security Documents; 

(ii) Uniform Commercial Code, judgment, tax lien and intellectual property searches confirming that the personal property
comprising a part of each mortgaged property or the Collateral is subject to no liens other than Permitted Liens; and 
 (iii) executed copies of the Transaction Documents, in form and substance reasonably satisfactory to the Initial Purchasers and all actions required by the Transaction Documents to perfect the liens
granted thereunder shall have been taken. 

  
 -16-

 (q) The Company and the Guarantors shall cause the Notes and the Guarantees to be secured by
a lien on the Collateral to the extent and in the manner provided for in the Indenture and the Security Documents and as described in the Pricing Disclosure Package and the Final Offering Memorandum. 

(r) On the Closing Date, the EHI Guarantors will execute the Joinder Agreement. 

Section 6. Expenses. The Company and the Existing Guarantors (or, upon the Closing Date, the EHI Guarantors) agree to pay all
reasonable and documented out-of-pocket costs and expenses incident to the performance of its obligations under this Agreement, whether or not the transactions contemplated herein are consummated or this Agreement is terminated pursuant to
Section 12 hereof, including all reasonable and documented out-of-pocket costs and expenses incident to (i) the printing, word processing or other production of documents with respect to the transactions contemplated hereby, including any
costs of printing the Pricing Disclosure Package and the Final Memorandum and any amendment or supplement thereto, and any “Blue Sky” memoranda, (ii) all arrangements relating to the delivery to the Initial Purchasers of copies of the
foregoing documents, (iii) the fees and disbursements of the counsel (including local and special counsel), the accountants and any other experts or advisors retained by the Company, (iv) preparation (including printing), authentication,
issuance and delivery to the Initial Purchasers of the Notes, (v) the qualification of the Notes under state securities and “Blue Sky” laws, including filing fees and fees and disbursements of counsel for the Initial Purchasers
relating thereto and in connection with the preparation of any “Blue Sky” memoranda and any supplements thereto, (vi) all filing costs and expenses relating to the perfection of the security interest in the Collateral (including fees,
disbursements and charges of Cahill Gordon & Reindel LLP, counsel for the Initial Purchasers, to the extent related thereto), as set forth in the Security Documents, (vii) expenses in connection with the
“roadshow” and any other meetings with prospective investors in the Notes, (viii) fees and expenses of the Trustee, the transfer agent, the Collateral Agent, the Escrow Agent, registrar or depositary, including fees and expenses of
counsel, (ix) any fees charged by investment rating agencies for the rating of the Notes, (x) any stamp or transfer taxes in connection with the original issuance and sale of the Notes and (xi) all other costs and expenses incident to
the performance by the Company of its obligations hereunder. If the sale of the Notes provided for herein is not consummated because any condition to the obligations of the Initial Purchasers set forth in Section 7 hereof is not satisfied,
because this Agreement is terminated or because of any failure, refusal or inability on the part of the Company or the Guarantors to perform all obligations and satisfy all conditions on their part to be performed or satisfied hereunder (other than
solely by reason of a default by the Initial Purchasers of their obligations hereunder after all conditions hereunder have been satisfied in accordance herewith), the Company and the EAC Guarantor agree to promptly reimburse the Initial Purchasers
upon demand for all reasonable and documented out-of-pocket expenses (including reasonable and documented fees, disbursements and charges of Cahill Gordon & Reindel LLP, counsel for the Initial Purchasers) that shall have
been incurred by the Initial Purchasers in connection with the proposed purchase and sale of the Notes. 

  
 -17-

 Section 7. Conditions of the Initial Purchasers’ Obligations. The
obligation of the Initial Purchasers to purchase and pay for the Notes shall, in their sole discretion, be subject to the satisfaction or waiver of the following conditions on or prior to the Closing Date: 

(a) On the Closing Date, the Initial Purchasers shall have received the opinion, dated as of the Closing Date and addressed to the
Initial Purchasers, of DLA Piper LLP (US), counsel for the Company, substantially in the form of Exhibit A hereto. 
 The opinion and advice of DLA Piper LLP (US) described in this Section shall be rendered to the Initial Purchasers at the request of the Company and shall so state therein. 

(b) On the Closing Date, the Initial Purchasers shall have received the opinion, in form and substance satisfactory to the Initial
Purchasers, dated as of the Closing Date and addressed to the Initial Purchasers, of (i) Daugherty, Fowler, Peregrin, Haught & Jenson, P.C., FAA counsel for the Company, (ii) Schwabe, Williamson and Wyatt, Oregon counsel for the
Company, (iii) K&L Gates LLP, Alaska counsel for the Company, and (iv) Holland & Hart LLP, Nevada counsel for the Company, in each case with respect to certain legal matters relating to this Agreement and such other related
matters as the Initial Purchasers may reasonably require. In rendering such opinion, such counsel shall have received and may rely upon such certificates and other documents and information as it may reasonably request to pass upon such matters.

 (c) On the Closing Date, the Initial Purchasers shall have received the opinion, in form and substance satisfactory to the
Initial Purchasers, dated as of the Closing Date and addressed to the Initial Purchasers, of Cahill Gordon & Reindel LLP, counsel for the Initial Purchasers, with respect to certain legal matters relating to this Agreement
and such other related matters as the Initial Purchasers may reasonably require. In rendering such opinion, Cahill Gordon & Reindel LLP shall have received and may rely upon such certificates and other documents and
information as it may reasonably request to pass upon such matters. 
 (d) On the date hereof, the Initial Purchasers shall have
received (i) from Grant Thornton LLP, a comfort letter dated the date hereof, in form and substance satisfactory to counsel for the Initial Purchasers with respect to the audited and any unaudited or pro forma financial information in
the Pricing Disclosure Package with respect to the Company, (ii) from Crowe Horwatch LLP, a comfort letter dated the date hereof, in form and substance satisfactory to counsel for the Initial Purchasers with respect to certain audited and
unaudited financial information in the Pricing Disclosure Package with respect to Evergreen and (iii) from GHP Horwath, P.C., a comfort letter dated the date hereof in form and substance satisfactory to counsel for the Initial Purchasers with
respect to certain audited financial information in the Pricing Disclosure Package with respect to Evergreen. On the Closing Date, the Initial Purchasers shall have received (i) from Grant Thornton LLP a comfort letter dated the Closing Date,
(ii) from Crowe Horwath LLP a comfort letter dated the Closing Date, each case in form and substance satisfactory to counsel for the Initial Purchasers, which shall refer to the applicable comfort letter dated the date hereof and reaffirm or
update as of a more recent date, the information stated in the comfort letter dated the date hereof and similarly address the audited and any unaudited or pro forma financial information in the Final Memorandum and (iii) from GHP
Horwath, P.C., a comfort letter dated the Closing Date in form and substance satisfactory to counsel for the Initial Purchasers with respect to certain audited financial information in the Pricing Disclosure Package with respect to Evergreen.

  
 -18-

 (e) The representations and warranties of the Company and the EAC Guarantor (and, upon the
Closing Date, the EHI Guarantors) contained in this Agreement shall be true and correct on and as of the Time of Execution and on and as of the Closing Date as if made on and as of the Closing Date; the statements of the Company’s and the EAC
Guarantor’s (and, upon the Closing Date, the EHI Guarantors’) officers made pursuant to any certificate delivered in accordance with the provisions hereof shall be true and correct on and as of the date made and on and as of the Closing
Date; the Company and the EAC Guarantor (and, upon the Closing Date, the EHI Guarantors) shall have performed all covenants and agreements and satisfied all conditions on their part to be performed or satisfied hereunder at or prior to the Closing
Date; and, except as described in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), subsequent to the date of the most recent financial statements in such Pricing
Disclosure Package and the Final Memorandum, there shall have been no event or development, and no information shall have become known, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect.

 (f) The sale of the Notes hereunder shall not be enjoined (temporarily or permanently) on the Closing Date. 

(g) Subsequent to the date of the most recent financial statements in the Pricing Disclosure Package and the Final Memorandum (exclusive
of any amendment or supplement thereto after the date hereof), none of the Company or any of the Subsidiaries shall have sustained any loss or interference with respect to its business or properties from fire, flood, hurricane, accident or other
calamity, whether or not covered by insurance, or from any strike, labor dispute, slow down or work stoppage or from any legal or governmental proceeding, order or decree, which loss or interference, individually or in the aggregate, has or would be
reasonably likely to have a Material Adverse Effect. 
 (h) The Initial Purchasers shall have received a certificate of the
Company, dated the Closing Date, signed on behalf of the Company by its Chairman of the Board, President or any Senior Vice President and the Chief Financial Officer, to the effect that: 

(i) the representations and warranties of the Company and the EAC Guarantor (and, upon the Closing Date, the EHI
Guarantors) contained in this Agreement are true and correct on and as of the Time of Execution and on and as of the Closing Date, and the Company and the EAC Guarantor (and, upon the Closing Date, the EHI Guarantors) have performed all covenants
and agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date; 
 (ii) at the Closing Date, since the date hereof or since the date of the most recent financial statements in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or
supplement thereto after the date hereof), no event or development has occurred, and no information has become known, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect; and 

  
 -19-

 (iii) the sale of the Notes hereunder has not been enjoined (temporarily or
permanently). 
 (i) On the Closing Date, the Initial Purchasers shall have received the Registration Rights Agreement executed
by the Company and the Guarantors and such agreement shall be in full force and effect at all times from and after the Closing Date. 
 (j) On the Closing Date, the Initial Purchasers, the Trustee and the Collateral Agent shall have received the Security Documents (other than the Mortgages (as hereinafter defined)) executed by the Company
and the Guarantors and such agreements shall be in full force and effect at all times from and after the Closing Date. 
 (k) On
the Closing Date, except as otherwise provided for in the Security Documents, the Indenture or the other documents entered into pursuant to the Transactions, the Initial Purchasers, Trustee and the Collateral Agent shall have received all
certificates, agreements or instruments necessary to perfect the Collateral Agent’s security interest in all of the Collateral including but not limited to, any applicable control agreements, Uniform Commercial Code financing statements in
appropriate form for filing and filings with the United States Patent and Trademark Office in appropriate form for filing; each such document executed by the Company and/or each other party thereto, and each such document shall be in full force and
effect; and evidence that all of the liens (other than certain Permitted Liens) on the Collateral have been released. The Initial Purchasers shall also have received a perfection certificate (the “Perfection Certificate”) and
certified copies of Uniform Commercial Code, United States Patent and Trademark Office and United States Copyright Office, tax and judgment lien searches, each of a recent date, listing all effective financing statements, lien notices or comparable
documents that name the Company or any Guarantor as debtor and that are filed in those state jurisdictions in which the Company or any Guarantor is organized and such other searches that the Initial Purchasers reasonably deems necessary or
appropriate, none of which encumber the Collateral covered or intended to be covered by the Security Documents (other than certain Permitted Liens). 
 (l) On the Closing Date, the Initial Purchasers, the Trustee and the Collateral Agent shall have received policies or certificates of insurance covering the property and assets of the Company and the
Guarantors, which policies or certificates shall be in form and substance reasonably acceptable to the Initial Purchasers and reflect the Collateral Agent for its benefit and the benefit of the Trustee and the holders of the Notes, as additional
insured and loss payee and shall otherwise bear endorsements of the character reasonably acceptable to the Initial Purchasers. 

(m) The Company, the Escrow Agent and the Trustee shall have executed and delivered the Escrow Agreement and the Company shall have
deposited, or at the Time of Execution will concurrently deposit the Escrow Property with the Escrow Agent in accordance with the Escrow Agreement. 

  
 -20-

 (n) The Evergreen Acquisition shall be consummated in a manner consistent in all material
respects with the description thereof contained in the Offering Memorandum substantially concurrently with the purchase of the Notes by the Initial Purchasers. 
 (o) The ABL Refinancing shall be consummated and the ABL Revolver shall be in full force and effect, in each case in a manner consistent in all material respects with the description thereof contained in
the Offering Memorandum, substantially concurrently with the purchase of the Notes by the Initial Purchasers. 
 On or before
the Closing Date, the Initial Purchasers and counsel for the Initial Purchasers shall have received such further documents, opinions, certificates, letters and schedules or instruments relating to the business, corporate, legal and financial affairs
of the Company and the Subsidiaries as they shall have heretofore reasonably requested from the Company. 
 All such documents,
opinions, certificates, letters, schedules or instruments delivered pursuant to this Agreement will comply with the provisions hereof only if they are reasonably satisfactory in all material respects to the Initial Purchasers and counsel for the
Initial Purchasers. The Company shall furnish to the Initial Purchasers such conformed copies of such documents, opinions, certificates, letters, schedules and instruments in such quantities as the Initial Purchasers shall reasonably request.

 Section 8. Post-Closing Matters. Within a period of time to be agreed between the Issuer and the administrative
agent (the “ABL Agent”) under the ABL Revolver (which period may be extended by the ABL Agent in its sole discretion), the Initial Purchasers, the Trustee and the Collateral Agent shall have received the mortgages (with respect to
the applicable real property designated as “Mortgaged Property” on Schedule 3(a) of the Perfection Certificate), landlord lien waiver and access agreements (with respect to real property designated on Schedule 3(a) to the Perfection
Certificate as receiving the same and solely to the extent such landloard lien waiver and access agreements can be obtained after using commercially reasonable efforts) and the related documents and deliverables (other than any deliverables to be
received by the ABL Agent related to compliance with flood insurance regulations) as may be agreed between the Issuer and the ABL Agent (which shall be reasonably satisfactory in form and substance to the Representative (including counsel to the
Initial Purchasers), the Trustee and the Collateral Agent), each of which shall be in form and substance and pursuant to arrangements reasonably satisfactory to the Representative (including counsel to the Initial Purchasers), the Trustee and the
Collateral Agent, as appropriate. 
 Section 9. Offering of Notes; Restrictions on Transfer. 

(a) Each of the Initial Purchasers agrees with the Company (as to itself only) that (i) it is either a QIB or an “accredited
investor” within the meaning of Rule 501(a) under Regulation D under the Act, in either case with such knowledge and experience in financial and business matters as are necessary in order to evaluate the merits and risks of an investment in the
Notes, (ii) it is purchasing the Notes pursuant to a private sale exempt from registration under the Act, (iii) it has not and will not solicit offers for, or offer or sell, the Notes by any form of general solicitation or general
advertising (as those terms are used in Regulation D under the Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Act; and (iv) it 

  
 -21-

 
has and will solicit offers for the Notes only from, and will offer the Notes only to (A) in the case of offers inside the United States, persons whom the Initial Purchasers reasonably
believe to be QIBs or, if any such person is buying for one or more institutional accounts for which such person is acting as fiduciary or agent, only when such person has represented to the Initial Purchasers that each such account is a QIB, to
whom notice has been given that such sale or delivery is being made in reliance on Rule 144A, and, in each case, in transactions under Rule 144A and (B) in the case of offers outside the United States, to persons other than U.S.
persons (“non-U.S. purchasers,” which term shall include dealers or other professional fiduciaries in the United States acting on a discretionary basis for non-U.S. beneficial owners (other than an estate or trust));
provided, however, that, in the case of this clause (B), in purchasing such Notes such persons are deemed to have represented and agreed as provided under the caption “Transfer Restrictions” contained in the Pricing
Disclosure Package and the Final Memorandum. 
 (b) Each of the Initial Purchasers represents and warrants (as to itself only)
with respect to offers and sales outside the United States that (i) the Notes have not been and will not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with Regulation S
under the Act or pursuant to an exemption from the registration requirements of the Act; and (ii) it has offered the Notes and will offer and sell the Notes (A) as part of its distribution at any time and (B) otherwise until 40 days
after the later of the commencement of the offering and the Closing Date, only in accordance with Rule 903 of Regulation S and, accordingly, neither it nor any persons acting on its behalf have engaged or will engage in any directed selling
efforts (within the meaning of Regulation S) with respect to the Notes, and any such persons have complied and will comply with the offering restrictions requirement of Regulation S. 

(c) In relation to each Member State of the European Economic Area which has implented the Prospectus Directive (each, a “Relevant
Member State”), each of the Initial Purchasers hereby represents, warrants and agrees (as to itself only) that, with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the
“Relevant Implementation Date”), it has not made and will not make an offer of the Notes to the public in that Relevant Member State other than: 
 (i) to any legal entity which is a qualified investor as defined in the Prospectus Directive, 
 (ii) to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive, 150, natural or legal persons (other than qualified investors as defined
in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the relevant dealer or dealers nominated by the Company for any such offer, or 

(iii) in any other circumstances falling within Aricle 3(2) of the Prospectus Directive, provided that no such offer of
Notes shall require the Company or any Initial Purchaser to publish a prospectus pursuant to Article 3 of the Prospectus Directive. 

  
 -22-

 For purposes of this clause (c), “offer of the Notes to the public” in relation to any Notes in
any Relevant Member State, means the communication of any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe the Notes, as the same may
be varied in that Member State by any measure implementing the Prospectus Directive in that Member State; “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent
implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU. 

Each of the Initial Purchasers understands that the Company and, for purposes of the opinion to be delivered to the Initial Purchasers
pursuant to Section 7(a) hereof, counsel to the Company, will rely upon the accuracy and truth of the foregoing representations, warranties and agreements and each of the Initial Purchasers hereby consents to such reliance. 

Terms used in this Section 9 and not defined in this Agreement have the meanings given to them in Regulation S. 

Section 10. Indemnification and Contribution. 
 (a) Each of the Company and the Guarantors jointly and severally agree to indemnify and hold harmless each Initial Purchaser, the directors, officers, employees, Affiliates and agents of each Initial
Purchaser and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities, joint or several, to which they or any
of them may become subject under the Act, the Exchange Act or other U.S. federal or state statutory law or regulation, at common law or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon the following: 
 (i) any untrue statement or alleged untrue statement of any material fact
contained in the Pricing Disclosure Package, any Issuer Written Communication or Final Memorandum or any amendment or supplement thereto; or 
 (ii) the omission or alleged omission to state, in the Pricing Disclosure Package, any Issuer Written Communication or the Final Memorandum or any amendment or supplement thereto, a material fact required
to be stated therein or necessary to make the statements therein not misleading; 
 and will reimburse, as incurred, the Initial Purchasers and
each such controlling person for any legal or other expenses incurred by the Initial Purchasers or such controlling person in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss,
claim, damage, liability or action; provided, however, the Company and the Guarantors will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in the Pricing Disclosure Package or Final Memorandum or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Initial Purchasers
furnished to the Company by the Initial Purchasers through the 

  
 -23-

 
Representatives specifically for use therein, it being understood and agreed that the only such information furnished by or on behalf of any Initial Purchaser consists of the information
described as such in Section 13 hereof. The indemnity provided for in this Section 10 will be in addition to any liability that the Company and the Guarantors may otherwise have to the indemnified parties. The Company and the Guarantors
shall not be liable under this Section 10 for any settlement of any claim or action effected without its prior written consent, which shall not be unreasonably withheld, conditioned or delayed. 

(b) Each Initial Purchaser, severally and not jointly, agrees to indemnify and hold harmless the Company, each of the Guarantors and
their respective directors, its officers and each person, if any, who controls the Company or any of the Guarantors within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities to which the Company, any of the Guarantors or any such director, officer or controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in the Pricing Disclosure Package or Final Memorandum or any amendment or supplement thereto, or (ii) the
omission or the alleged omission to state therein a material fact required to be stated in the Pricing Disclosure Package or Final Memorandum or any amendment or supplement thereto, or necessary to make the statements therein not misleading, in each
case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information concerning such Initial Purchaser, furnished to
the Company by the Initial Purchasers through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by or on behalf of any Initial Purchaser consists of the information described as
such in Section 13 hereof; and subject to the limitation set forth immediately preceding this clause, will reimburse, as incurred, any legal or other expenses incurred by the Company, any of the Guarantors or any such director, officer or
controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or action in respect thereof. The indemnity provided for in this
Section 10 will be in addition to any liability that the Initial Purchasers may otherwise have to the indemnified parties. The Initial Purchasers shall not be liable under this Section 10 for any settlement of any claim or action effected
without their consent, which shall not be unreasonably withheld. 
 (c) Promptly after receipt by an indemnified party under
this Section 10 of notice of the commencement of any action for which such indemnified party is entitled to indemnification under this Section 10, such indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 10, notify the indemnifying party of the commencement thereof in writing; but the omission to so notify the indemnifying party (i) will not relieve it from any liability under paragraph (a) or
(b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the indemnification obligation provided in paragraphs (a) or (b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party
of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel (including

  
 -24-

 
local counsel) satisfactory to such indemnified party; provided, however, that if (i) the use of counsel (including local counsel) chosen by the indemnifying party to represent
the indemnified party would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, or (iv) the indemnifying
party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying party, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of
such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel (including local counsel) to defend such action on behalf of such indemnified party or parties. After notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party will not be liable to such indemnified party
under this Section 10 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof, unless the indemnified party shall have employed
separate counsel in accordance with the proviso to the immediately preceding sentence (it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel
(in addition to local counsel) in any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or circumstances, designated by the Initial Purchasers in the case of
paragraph (a) of this Section 10 or the Company and the Guarantors in the case of paragraph (b) of this Section 10, representing the indemnified parties under such paragraph (a) or paragraph (b), as the case may be, who
are parties to such action or actions). All fees and expenses reimbursed pursuant to this paragraph (c) shall be reimbursed as they are incurred. After such notice from the indemnifying party to such indemnified party, the indemnifying party
will not be liable for the costs and expenses of any settlement of such action effected by such indemnified party without the prior written consent of the indemnifying party (which consent shall not be unreasonably withheld, conditioned or delayed),
unless such indemnified party waived in writing its rights under this Section 10, in which case the indemnified party may effect such a settlement without such consent. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement or compromise of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party, or indemnity could have been sought hereunder by any indemnified party, unless
such settlement (A) includes an unconditional written release of the indemnified party, in form and substance reasonably satisfactory to the indemnified party, from all liability on claims that are the subject matter of such proceeding and
(B) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of any indemnified party. 
 (d) In circumstances in which the indemnity agreement provided for in the preceding paragraphs of this Section 10 is unavailable to, or insufficient to hold harmless, an indemnified party in respect
of any losses, claims, damages or liabilities (or actions in respect thereof), each indemnifying party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party as a result of
such losses, claims, 

  
 -25-

 
damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the indemnifying party or parties on the one hand
and the indemnified party on the other from the offering of the Notes or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the
indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in
respect thereof). The relative benefits received by the Company and the Guarantors on the one hand and any Initial Purchaser on the other shall be deemed to be in the same proportion as the total proceeds from the offering (before deducting
expenses) received by the Company and the Guarantors bear to the total discounts and commissions received by such Initial Purchaser. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors on the one hand, or such Initial Purchaser on the other, the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Company, each of the
Guarantors and the Initial Purchasers agree that it would not be equitable if the amount of such contribution were determined by pro rata or per capita allocation or by any other method of allocation that does not take into account the equitable
considerations referred to in the first sentence of this paragraph (d). Notwithstanding any other provision of this paragraph (d), no Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the
total discounts, commissions and other compensation received by such Initial Purchaser under this Agreement, less the aggregate amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of the untrue or alleged
untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls an Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the
same rights to contribution as the Initial Purchasers, and each director of the Company and the Guarantors, each officer of the Company and the Guarantors and each person, if any, who controls the Company or any of the Guarantors within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company and the Guarantors. 
 Section 11. Survival Clause. The respective representations, warranties, agreements, covenants, indemnities and other statements of the Company, the Guarantors, their respective officers and
the Initial Purchasers set forth in this Agreement or made by or on behalf of them pursuant to this Agreement shall remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Company, the Guarantors, any of
their respective officers or directors, the Initial Purchasers or any controlling person referred to in Section 10 hereof and (ii) delivery of and payment for the Notes. The respective agreements, covenants, indemnities and other
statements set forth in Sections 6, 10, 11 and 16 hereof shall remain in full force and effect, regardless of any termination or cancellation of this Agreement. 

  
 -26-

 Section 12. Termination. 

(a) This Agreement may be terminated in the sole discretion of the Initial Purchasers by notice to the Company given prior to the Closing
Date in the event that the Company shall have failed, refused or been unable to perform all obligations and satisfy all conditions on its part to be performed or satisfied hereunder at or prior thereto or, if at or prior to the Closing Date,

 (i) any of the Company or the Subsidiaries shall have sustained any loss or interference with respect to its
businesses or properties from fire, flood, hurricane, accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute, slow down or work stoppage or any legal or governmental proceeding, which loss or interference,
in the sole judgment of the Initial Purchasers, has had or has a Material Adverse Effect, or there shall have been, in the sole judgment of the Initial Purchasers, any event or development that, individually or in the aggregate, has or could be
reasonably likely to have a Material Adverse Effect (including without limitation a change in control of the Company or the Subsidiaries), except in each case as described in the Pricing Disclosure Package and the Final Memorandum (exclusive of any
amendment or supplement thereto); 
 (ii) trading in securities of the Company or in securities generally on the
New York Stock Exchange, American Stock Exchange or the NASDAQ Global Market shall have been suspended or materially limited or minimum or maximum prices shall have been established on any such exchange or market; 

(iii) a banking moratorium shall have been declared by New York or United States authorities or a material disruption in
commercial banking or securities settlement or clearance services in the United States; 
 (iv) there shall have
been (A) an outbreak or escalation of hostilities between the United States and any foreign power (other than as in existence on the date hereof), or (B) an outbreak or escalation of any other insurrection or armed conflict involving the
United States or any other national or international calamity or emergency, or (C) any material change in the financial markets of the United States which, in the case of (A), (B) or (C) above and in the sole judgment of the Initial
Purchasers, makes it impracticable or inadvisable to proceed with the offering or the delivery of the Notes as contemplated by the Pricing Disclosure Package and the Final Memorandum; or 

(v) any securities of the Company shall have been downgraded by any nationally recognized statistical rating organization
or any such organization shall have publicly announced that it has under surveillance or review, or has changed its outlook with respect to, its ratings of any securities of the Company (other than an announcement with positive implications of a
possible upgrading). 
 (b) Termination of this Agreement pursuant to this Section 12 shall be without liability of any
party to any other party except as provided in Section 11 hereof. 

  
 -27-

 Section 13. Information Supplied by the Initial Purchasers. The statements set
forth in the last paragraph on the front cover page (as such paragraph is supplemented by the first item on Annex A) and in the eighth paragraph under the heading “Private Placement” in the Preliminary Memorandum and the Final
Memorandum (to the extent such statements relate to the Initial Purchasers) constitute the only information furnished by the Initial Purchasers to the Company for the purposes of Sections 2(a) and 10 hereof. 

Section 14. Notices. All communications hereunder shall be in writing and, if sent to the Initial
Purchasers, shall be mailed or delivered to Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attention: Leveraged Debt Capital Markets, Second Floor (fax: (212) 797-4877), with a copy to the attention of the General
Counsel, 36th Floor (fax: (212) 797-4561); if sent to
the Company, shall be mailed or delivered to the Company at 5550 SW Macadam Avenue, Suite 200, Portland, Oregon 97239, Attention: Chief Executive Officer; Chief Financial Officer; with a copy to (which shall not constitute notice) DLA Piper LLP
(US), 500 8th Street, NW, Washington, DC 20004, Attention: Michael P. Reed, Esq. (fax: (202) 799-5229). 
 All such notices
and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five business days after being deposited in the mail, postage prepaid, if mailed; and one business day after being timely delivered to a
next-day air courier. 
 Section 15. Successors. This Agreement shall inure to the benefit of and be binding upon
the Initial Purchasers, the Company and the Guarantors and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable
right, remedy or claim under or in respect of this Agreement, or any provisions herein contained; this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such persons and for the
benefit of no other person except that (i) the indemnities of the Company and the Guarantors contained in Section 10 of this Agreement shall also be for the benefit of any person or persons who control the Initial Purchasers within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act and (ii) the indemnities of the Initial Purchasers contained in Section 10 of this Agreement shall also be for the benefit of the directors of the Company, the
Guarantors, their respective officers and any person or persons who control the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act. No purchaser of Notes from the Initial Purchasers will be deemed a
successor because of such purchase. 
 Section 16. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS
AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT GIVING EFFECT TO ANY PROVISIONS
THEREOF RELATING TO CONFLICTS OF LAW. 
 Section 17. No Advisory or Fiduciary Responsibility. The Company and the
Guarantors acknowledge and agree that (i) the purchase and sale of the Notes pursuant to this Agreement is an arm’s-length commercial transaction between the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the
other, (ii) in connection therewith and with the 

  
 -28-

 
process leading to such transaction each Initial Purchaser is acting solely as a principal and not the agent or fiduciary of the Company or any Guarantor, (iii) no Initial Purchaser has
assumed an advisory or fiduciary responsibility in favor of the Company or any Guarantor with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser has advised or is currently
advising the Company or any Guarantor on other matters) or any other obligation to the Company or any Guarantor except the obligations expressly set forth in this Agreement and (iv) the Company and the Guarantors have consulted their own legal
and financial advisors to the extent it deemed appropriate. Each of the Company and the Guarantors agrees that it will not claim that any Initial Purchaser has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty
to the Company and the Guarantors, in connection with such transaction or the process leading thereto. 
 Section 18.
Counterparts. 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. 

  
 -29-

 If the foregoing correctly sets forth our understanding, please indicate your acceptance
thereof in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Initial Purchasers. 

 

			
	Very truly yours,
	
	ERICKSON AIR-CRANE INCORPORATED
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	EAC ACQUISITION CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 -30-

			
	 The foregoing Agreement is hereby confirmed
 and accepted as of the date first above written.

	
	DEUTSCHE BANK SECURITIES INC.
	 on behalf of itself and as Representative of
 the several Initial Purchasers

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 -31-

 SCHEDULE 1 

 

					
	 Initial Purchaser
	  	Principal Amount of Notes	 
	 Deutsche Bank Securities Inc.
	  	$	220,000,000	  
	 Wells Fargo Securities, LLC
	  	$	120,000,000	  
	 Stifel, Nicolaus & Company, Incorporated
	  	$	40,000,000	  
	 Imperial Capital, LLC
	  	$	20,000,000	  
		  	  
	  
	 
	 Total
	  	$	400,000,000	  
		  	  
	  
	 

 SCHEDULE 2 
 Subsidiaries of the Company 
  

					
	 Name
	  	Jurisdiction of Incorporation	 
	 CAC Development Canada, Inc.
	  	 	Canada	  
	 EAC Acquisition Corporation
	  	 	Delaware	  
	 EAC Do Brasil Participações LTDA.
	  	 	Brazil	  
	 Erickson Air-Crane (Malaysia) Sdn. Bhd.
	  	 	Malaysia	  
	 Canadian Air-Crane Ltd.
	  	 	Canada	  

 EXHIBIT A 
 Form of Joinder Agreement 

[            ], 2013 

WHEREAS, the Issuer, the EAC Guarantor and the Initial Purchasers named therein (the “Initial Purchasers”) heretofore
executed and delivered a Purchase Agreement, dated April 25, 2013 (the “Purchase Agreement”), providing for the issuance and sale of the Notes pursuant to the Purchase Agreement; and 

WHEREAS, as a condition to the consummation of the offering of the Notes pursuant to the Purchase Agreement, each EHI Guarantor, which
was originally not a party thereto, has agreed to join in the Purchase Agreement on the Closing Date. 
 Capitalized terms used
herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement. 
 NOW,
THEREFORE, each EHI Guarantor party hereto hereby agrees for the benefit of the Initial Purchasers, as follows: 
 1.
Joinder. Each of the undersigned hereby acknowledges that it has received and reviewed a copy of the Purchase Agreement and all other documents it deems fit to enter into this Joinder Agreement (the “Joinder Agreement”), and
acknowledges and agrees to (i) join and become a party to the Purchase Agreement as indicated by its signature below; (ii) be bound by all covenants, agreements, representations, warranties and acknowledgments attributable to a Guarantor
or an EHI Guarantor in the Purchase Agreement as if made by, and with respect to, each EHI Guarantor signatory hereto; and (iii) perform all obligations and duties required of a Guarantor or an EHI Guarantor pursuant to the Purchase Agreement.

 2. Representations and Warranties and Agreements. Each of the undersigned EHI Guarantors hereby represents and
warrants to and agrees with the Initial Purchasers that it has all the requisite corporate or organizational power and authority to execute, deliver and perform its obligations under this Joinder Agreement and to consummate the transactions
contemplated hereby, that this Joinder Agreement has been duly and validly authorized and that when this Joinder Agreement is executed and delivered, it will constitute a valid and legally binding agreement enforceable against each of the
undersigned in accordance with its terms (subject to the Enforceability Exceptions). 
 3. Counterparts. This Joinder
Agreement may be signed in one or more counterparts (which may be delivered in original form, facsimile or “pdf” file thereof), each of which shall constitute an original when so executed and all of which together shall constitute one and
the same agreement. 

 4. Amendments. No amendment or waiver of any provision of this Joinder Agreement, nor
any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties thereto. 
 5. Headings. The section headings used herein are for convenience only and shall not affect the construction hereof. 
 6. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS JOINDER AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT GIVING EFFECT TO ANY PROVISIONS THEREOF RELATING TO CONFLICTS OF LAW. 

  
 -2-

 IN WITNESS WHEREOF, each of the undersigned has executed this agreement as of the date first
written above. 
  

			
	EVERGREEN HELICOPTERS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	EVERGREEN UNMANNED SYSTEMS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	EVERGREEN EQUITY, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 EVERGREEN HELICOPTERS
INTERNATIONAL, INC.

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	EVERGREEN HELICOPTERS OF ALASKA, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

			
	The foregoing Joinder Agreement is hereby
	 confirmed and accepted as of the
 date first above written.

	
	 DEUTSCHE BANK SECURITIES INC.

on behalf of itself and as Representative of the several Initial Purchasers

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 -2-

 ANNEX A 
 Pricing Supplement, dated as of April 25, 2013 

 EXHIBIT A 
 Form of DLA Piper LLP (US) opinion and 10b-5 letter 
 See attached.f8k042713ex10i_soligenix.htm

EXHIBIT 10.1

 

REDACTED COPY

CONFIDENTIAL

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

 

Exclusive Channel Collaboration Agreement

 

This Exclusive Channel Collaboration Agreement (the “Agreement”) is made and entered into effective as of April 27, 2013 (the “Effective Date”) by and between Intrexon Corporation, a Virginia corporation with offices at 20358 Seneca Meadows Parkway, Germantown, MD 20876 (“Intrexon”), and Soligenix, Inc., a Delaware corporation having a place of business at 29 Emmons Drive, Suite C-10, Princeton, NJ 08540 (“Soligenix”).  Intrexon and Soligenix may be referred to herein individually as a “Party”, and collectively as the “Parties.”

 

Recitals

 

Whereas, Intrexon has expertise in and owns or controls proprietary technology relating to the identification, design and production of genetically modified cells and DNA vectors, and the control of peptide expression; and

 

Whereas, Soligenix now desires to become Intrexon’s exclusive channel collaborator with respect to such technology for the purpose of developing the Melioidosis Program (as defined herein), and Intrexon is willing to appoint Soligenix as a channel collaborator in the Field (as defined herein, and subject to amendments to the definition as permitted herein) under the terms and conditions of this Agreement.

 

Now Therefore, in consideration of the foregoing and the covenants and promises contained herein, the Parties agree as follows:

 

ARTICLE 1

 

Definitions

 

As used in this Agreement, the following capitalized terms shall have the following meanings:

 

1.1             “Affiliate” means, with respect to a particular Party, any other person or entity that directly or indirectly controls, is controlled by, or is in common control with such Party.  As used in this Section 1.1, the term “controls” (with correlative meanings for the terms “controlled by” and “under common control with”) means the ownership, directly or indirectly, of more than fifty percent (50%) of the voting securities or other ownership interest of an entity, or the possession, directly or indirectly, of the power to direct the management or policies of an entity, whether through the ownership of voting securities, by contract, or otherwise.  Notwithstanding the foregoing, Third Security shall be deemed not to be an Affiliate of Intrexon, and neither Party shall be deemed to be an Affiliate of the other Party.  In addition, any other person, corporation, partnership, or other entity that would be an Affiliate of Intrexon solely because it and Intrexon are under common control by Randal J. Kirk or by investment funds managed by Third Security or an affiliate of Third Security shall also be deemed not to be an Affiliate of Intrexon.

 

  

  

  

 

REDACTED COPY

CONFIDENTIAL

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

 

1.2             “Applicable Laws” has the meaning set forth in Section 8.2(e)(xii).

 

1.3             “Authorizations” has the meaning set forth in Section 8.2(e)(xii).

 

1.4             “Biodefense” means procedures involved in taking defensive measures against attacks using biological agents, which includes without limitation emerging pathogen threats.

 

1.5             “Biodefense Sector” means government agencies including but not limited to the Department of Defense (“DoD”), Department of Health and Human Services (“DHHS”), Department of Homeland Security (“DHS”), Biomedical Advanced Research and Development Authroity (“BARDA”), and the Centers for Disease Control and Prevention (“CDC”).

 

1.6             “CC” has the meaning set forth in Section 2.2(b).

 

1.7             “Channel-Related Program IP” has the meaning set forth in Section 6.1(c).

 

1.8             “Claims” has the meaning set forth in Section 9.1.

 

1.9             “CMCC” has the meaning set forth in Section 2.2(b).

 

1.10           “Committees” has the meaning set forth in Section 2.2(a).

 

1.11           “Commercialize” or “Commercialization” means any activities directed to marketing, promoting, distributing, importing for sale, offering to sell and/or selling Soligenix Products.

 

1.12           “Commercial Sale” means for a given product and country the sale for value of that product by a Party (or, as the case may be, by an Affiliate or permitted sublicensee of a Party), to a Third Party after regulatory approval (if necessary) has been obtained for such product in such country.

 

1.13           “Complementary In-Licensed Third Party IP” has the meaning set forth in Section 3.8(a).

 

1.14           “Confidential Information” means each Party’s confidential Information disclosed pursuant to this Agreement or any other confidentiality agreement between the Parties, regardless of whether in oral, written, graphic or electronic form.

 

1.15           “Control” means, with respect to Information, a Patent or other intellectual property right, that a Party owns or has a license from a Third Party to such right and has the ability to grant a license or sublicense as provided for in this Agreement under such right without violating the terms of any agreement or other arrangement with any Third Party.

 

1.16           “Diligent Efforts” means, with respect to a Party’s obligation under this Agreement, the level of efforts and resources reasonably required to diligently develop, manufacture, and/or Commercialize (as applicable) each Soligenix Product in a sustained manner, consistent with the efforts and resources a similarly situated company working in the Field would typically devote to a product of similar market potential, profit potential, strategic value and/or proprietary protection, based on market conditions then prevailing.  With respect to a particular task or obligation, Diligent Efforts requires that the applicable Party promptly assign responsibility for such task and consistently make and implement decisions and allocate resources designed to advance progress with respect to such task or obligation.

 

  

2

  

 

REDACTED COPY

CONFIDENTIAL

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

 

1.17             “Emergency Use Authorization” or “EUA” means an authorization by the FDA under section 564 of the Federal Food, Drug and Cosmetic Act (FD&C Act) (21 U.S.C. 360bbb-3) whereby certain unapproved medical products or unapproved uses of approved medical products may nonetheless be used in an emergency to diagnose, treat, or prevent serious or life-threatening diseases or conditions caused by biologic, chemical, or nuclear agents when there are no adequate approved and available alternatives.

 

1.18             “Equity Agreement” has the meaning set forth in Section 5.1.

 

1.19             “Excess Product Liability Costs” has the meaning set forth in Section 9.3.

 

1.20             “Executive Officer” means : (a) the Chief Executive Officer of the applicable Party, or (b) another senior executive officer of such Party who has been duly appointed by the Chief Executive Officer to act as the representative of the Party to resolve, as the case may be, (i) a Committee dispute, provided that such appointed officer is not a member of the applicable Committee and occupies a position senior to the positions occupied by the applicable Party’s members of the applicable Committee, or (ii) a dispute described in Section 11.1.

 

1.21             “FDA” has the meaning set forth in Section 8.2(e)(xii).

 

1.22             “Field” means exogenously produced human recombinant monoclonal antibodies, and mixes of such antibodies, for use in the prevention or treatment of Melioidosis in humans.

 

1.23             “Field Infringement” has the meaning set forth in Section 6.3(b).

 

1.24             “Fully Loaded Cost” means the direct cost of the applicable good, product or service plus indirect charges and overheads reasonably allocable to the provision of such good, product or service in accordance with US GAAP.  Subject to the approval of a project and its associated budget by the JSC and the terms of Sections 4.6 and 4.7 (as appropriate), Intrexon will bill for its internal direct costs incurred through the use of annualized standard full-time equivalents; such rate shall be based upon the actual fully loaded costs of those personnel directly involved in the provision of such good, product or service.  Intrexon may, from time to time, adjust such full-time equivalent rate based on changes to its actual fully loaded costs and will review the accuracy of its full-time equivalent rate at least quarterly.  Intrexon shall provide Soligenix with reasonable documentation indicating the basis for any direct and indirect charges, any allocable overhead, and any such adjustment in full-time equivalent rate.

 

  

3

  

 

REDACTED COPY

CONFIDENTIAL

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

 

1.25             “Government Funding” means use of grants, contracts or other mechanisms from government agencies, including but not limited to the DHHS, BARDA, and DoD to fund development activities in the Field.

 

1.26             “In-Licensed Program IP” has the meaning set forth in Section 3.8(a).

 

1.27             “Information” means information, results and data of any type whatsoever, in any tangible or intangible form whatsoever, including without limitation, business information and plans (such as marketing, financial, and personnel), manufacturing information and data, technical information, databases, inventions, practices, methods, techniques, specifications, formulations, formulae, knowledge, know-how, skill, experience, test data including pharmacological, biological, chemical, biochemical, toxicological and regulatory test data, analytical and quality control data, stability data, studies and procedures, and patent and other legal information or descriptions.

 

1.28             “Infringement” has the meaning set forth in Section 6.3(a).

 

1.29             “Intrexon Channel Technology” means Intrexon’s current and future technology directed towards the design, identification, culturing, and/or production of genetically modified cells, including without limitation the technology embodied in the Intrexon Materials and the Intrexon IP, and specifically including without limitation the following of Intrexon’s platform areas and capabilities: (1) UltraVector®, (2) LEAPTM, (3) DNA and RNA MOD engineering, (4) protein engineering, (5) transcription control chemistry, (6) genome engineering, and (7) cell system engineering.

 

1.30             “Intrexon Indemnitees” has the meaning set forth in Section 9.2.

 

1.31             “Intrexon IP” means the Intrexon Patents and Intrexon Know-How.

 

1.32             “Intrexon Know-How” means all Information (other than Intrexon Patents) that (a) is Controlled by Intrexon as of the Effective Date or during the Term and (b) is reasonably required or useful for Soligenix to conduct the Melioidosis Program.  For the avoidance of doubt, the Intrexon Know-How shall include any Information (other than Intrexon Patents) in the Channel-Related Program IP.

 

1.33             “Intrexon Materials” means the genetic code and associated amino acids and gene constructs, in each case that are Controlled by Intrexon, used alone or in combination and such other proprietary reagents and biological materials including but not limited to plasmid vectors, virus stocks, cells and cell lines, antibodies, and ligand-related chemistry, in each case that are provided to Soligenix by or on behalf of Intrexon to conduct the Melioidosis Program.

 

1.34             “Intrexon Patents” means all Patents that (a) are Controlled by Intrexon as of the Effective Date or during the Term; and (b) are reasonably required or useful for Soligenix to conduct the Melioidosis Program.  For the avoidance of doubt, the Intrexon Patents shall include any Patent in the Channel-Related Program IP.

 

  

4

  

 

REDACTED COPY

CONFIDENTIAL

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

 

1.35             “Intrexon Trademarks” means those trademarks related to the Intrexon Channel Technology that are established from time to time by Intrexon for use across its channel partnerships or collaborations.

 

1.36             “Inventions” has the meaning set forth in Section 6.1(b).

 

1.37             “IPC” has the meaning set forth in Section 2.2(b).

 

1.38             “JSC” has the meaning set forth in Section 2.2(b).

 

1.39             “Losses” has the meaning set forth in Section 9.1.

 

1.40             “Melioidosis” means a potentially fatal infection caused by the Gram-negative bacilli, Burkholderia pseudomallei and the closely-related B. mallei.

 

1.41             “Melioidosis Program” has the meaning set forth in Section 2.1(a).

 

1.42             “Net Sales” means, with respect to any Soligenix Product, the net sales of such Soligenix Product by Soligenix, an Affiliate of Soligenix, or a Product Sublicensee, as determined in accordance with US GAAP as the gross amount invoiced on account of sales of Soligenix Product less the usual and customary credits, discounts and the like as determined in accordance with US GAAP.  In the case of any sale for value, such as barter or counter-trade other than in an arm’s length transaction exclusively for cash, Net Sales shall be deemed to be the net sales at which substantially similar quantities of the product are sold for cash in an arm’s length transaction in the relevant country.  If Soligenix Product is sold by Soligenix, its Product Sublicense, or Affiliates thereof to any Third Party together with other products or services, the price of such product, solely for purposes of the calculation of Net Sales, shall be deemed to be no less than the price at which such product would be sold in a similar transaction to a Third Party not also purchasing the other products or services.

 

1.43             “Patents” means (a) all patents and patent applications (including provisional applications), (b) any substitutions, divisions, continuations, continuations-in-part, reissues, renewals, registrations, requests for continued examination, confirmations, re-examinations, extensions, supplementary protection certificates and the like of the foregoing, and (c) any foreign or international equivalents of any of the foregoing.

 

1.44             “Product-Specific Program Patent” means any issued Intrexon Patent where all the claims are directed to Inventions that relate solely and specifically to Soligenix Products or their use in the Field.  In the event of a disagreement between the Parties as to whether a particular Intrexon Patent is or is not a Product-Specific Program Patent, the Parties shall seek to resolve the issue through discussions at the IPC, provided that if the Parties are unable to resolve the disagreement, the issue shall be submitted to arbitration pursuant to Section 11.2.  Any Intrexon Patent that is subject to such a dispute shall be deemed not to be a Product-Specific Program Patent unless and until (a) Intrexon agrees in writing that such Patent is a Product-Specific Program Patent or (b) an arbitrator or arbitration panel determines, pursuant to Article 11, that such Intrexon Patent is a Product-Specific Program Patent.

 

  

5

  

 

REDACTED COPY

CONFIDENTIAL

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

 

1.45             “Product Sublicense” has the meaning set forth in Section 3.2(c).

 

1.46             “Product Sublicensee” has the meaning set forth in Section 3.2(c).

 

1.47             “Proposed Terms” has the meaning set forth in Section 11.2.

 

1.48             “Prosecuting Party” has the meaning set forth in Section 6.2(c).

 

1.49             “RC” has the meaning set forth in Section 2.2(b).

 

1.50             “Recovery” has the meaning set forth in Section 6.3(f).

 

1.51             “Regulatory Trial” means any clinical or preclinical studies or trials done to produce data intended for or useful for any requisite government approvals for the sale, use, or manufacture of a relevant product.

 

1.52             “Retained Product” has the meaning set forth in Section 10.4(a).

 

1.53             “Reverted Product” has the meaning set forth in Section 10.4(c).

 

1.54             “SEC” means the United States Securities and Exchange Commission.

 

1.55             “Soligenix Indemnitees” has the meaning set forth in Section 9.1.

 

1.56             “Soligenix Independent IP” has the meaning set forth in Section 6.1(f).

 

1.57             “Soligenix Product” means any product in the Field that is created, produced, developed, or identified in whole or in part, directly or indirectly, by or on behalf of Soligenix (including without limitation by Intrexon under the Melioidosis Program), its Product Sublicensee(s), or Affliliates thereof during the Term through use or practice of Intrexon Channel Technology, Intrexon IP, or the Intrexon Materials.

 

1.58             “Soligenix Program Patent” has the meaning set forth in Section 6.2(b).

 

1.59             “Soligenix Termination IP” means all Patents, regulatory data rights, or other intellectual property that Soligenix or any of its Affiliates Controls as of the Effective Date or during the Term that cover, or is otherwise necessary or useful for, the development, manufacture or Commercialization of a Reverted Product or necessary or useful for Intrexon to operate in the Field. Notwithstanding the foregoing, Soligenix Termination IP shall not include Soligenix Independent IP.

 

  

6

  

 

REDACTED COPY

CONFIDENTIAL

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

 

1.60             “Sublicensing Revenue” means any cash consideration, or the cash equivalent value of non-cash consideration, regardless of whether in the form of upfront payments, milestones, or royalties, actually received by Soligenix or its Affiliate from a Third Party in consideration for a grant of a sublicense under the Intrexon IP or any rights to develop or Commercialize Soligenix Products, but excluding: (a) any amounts paid as bona fide reimbursement for research and development costs to the extent incurred following such grant; (b) bona fide loans or any payments in consideration for a grant of equity of Soligenix to the extent that such consideration is equal to or less than fair market value (i.e. any amounts in excess of fair market value shall be Sublicensing Revenue); (c) any amounts received from sublicensees in respect of any Soligenix Product sales that are included in the calculation of revenue sharing payments made to Intrexon under Section 5.4(a); (d) any amounts paid by Soligenix to a Third Party for the right to operate under or utilize Third Party owned intellectual property that is used to make or use a Soligenix Product underlying the Sublicensing Revenue; and (e) subject to the waiver provisions of Section 5.2, any payments received by Soligenix from Product Sublicensees for the attainment of a milestone event that is the same as (or substantially similar to) a milestone event for which Intrexon is entitled to receive a milestone payment under Section 5.2. 

 

1.61             “Superior Therapy” means a therapy in the Field and licensed to Soligenix under this Agreement that, based on the data then available, (a) demonstrably appears to offer either superior efficacy or safety or significantly lower cost of therapy, as compared with both (i) those therapies that are marketed (either by Soligenix or others) at such time for the indication and (ii) those therapies that are being actively developed by Soligenix for such indication; (b) demonstrably appears to represent a substantial improvement over such existing therapies; and (c) has intellectual property protection and a regulatory approval pathway that, in each case, would not present a significant barrier to commercial development.

 

1.62             “Supplemental In-Licensed Third Party IP” has the meaning set forth in Section 3.8(a).

 

1.63             “Support Memorandum” has the meaning set forth in Section 11.2.

 

1.64             “Technology Access Fee” for the purposes of this Agreement has the meaning as set forth in Section 5.1.

 

1.65             “Term” has the meaning set forth in Section 10.1.

 

1.66             “Territory” means the world.

 

1.67             “Third Party” means any individual or entity other than the Parties or their respective Affiliates.

 

1.68             “Third Security” means Third Security, LLC.

 

1.69              “US GAAP” means generally accepted accounting principles in the United States.

 

  

7

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 2

 

Scope of Channel Collaboration; Management

 

2.1          Scope.

 

(a)           Generally.  The general purpose of the channel collaboration described in this Agreement will be to use the Intrexon Channel Technology to research, develop and Commercialize products for use in the Field (collectively, the “Melioidosis Program”).  As provided below, the JSC shall establish, monitor, and govern projects for the Melioidosis Program.  Either Party may propose potential projects in the Field for review and consideration by the JSC. Intrexon recognizes that Soligenix’s intention is for the Melioidosis Program to be supported predominantly by Government Funding through the Biodefense Sector and/or by non-profit agencies as an emerging infectious disease.  Therefore, the JSC shall prioritize and account for such funding mechanisms in progressing the Melioidiosis Program consistent with the rights and obligations of the Parties as set forth herein.

 

2.2          Committees.

 

(a)           Generally.  The Parties desire to establish several committees (collectively, “Committees”) to oversee the Melioidosis Program and to facilitate communications between the Parties with respect thereto.  Each of such Committees shall have the responsibilities and authority allocated to it in this Article 2.  Each of the Committees shall have the obligation to exercise its authority consistent with the respective purpose for such Committee as stated herein and any such decisions shall be made in good faith.

 

(b)           Formation and Purpose.  Promptly following the Effective Date, the Parties shall confer and then create the JSC and the IPC, and, optionally, create one or more of the other Committees listed in the chart below.  Each Committee shall have the purpose indicated in the chart.  To the extent that after conferring both Parties agree to not create a Committee (other than the JSC and the IPC), the creation of such Committee shall be deferred until one Party informs the other Party of its then desire to create the so-deferred Committee, at which point the Parties will thereafter promptly create the so-deferred Committee.

 

	
Committee

	
Purpose

	
Joint Steering Committee (“JSC”)

	
Establish projects for the Melioidosis Program and establish the priorities, as well as approve budgets for such projects.  Approve all subcommittee projects and plans (except for decisions of the IPC). The JSC shall establish budgets not less than on a quarterly basis.

 

	
Chemistry, Manufacturing and Controls Committee (“CMCC”)

	
Establish project plans and review and approve activities and budgets for chemistry, manufacturing, and controls under the Melioidosis Program.

 

	
Regulatory Committee (“RC”)

	
Review and approve all research and development plans and projects, including but not limited to clinical projects, associated with any necessary regulatory approvals, all associated publications, and all regulatory filings and correspondence relating to gaining regulatory approval for new Soligenix Products under the Melioidosis Program; and review and approve itemized budgets with respect to the foregoing.

 

	
Commercialization Committee (“CC”)

	
Establish project plans and review and approve activities and budgets for Commercialization activities under the Melioidosis Program.

 

	
Intellectual Property Committee (“IPC”)

	
Evaluate all intellectual property issues in connection with the Melioidosis Program; review and approve itemized budgets with respect to the foregoing.

 

  

8

  

 

REDACTED COPY

CONFIDENTIAL

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

 

2.3          General Committee Membership and Procedure.

 

(a)           Membership.  For each Committee, each Party shall designate an equal number of representatives (not to exceed three (3) for each Party) with appropriate expertise to serve as members of such Committee.  For the JSC, the representatives must all be employees of such Party or an Affiliate of such Party.  For Committees other than the JSC, the representatives must all be employees of such Party or an Affiliate of such Party, with the caveat that each Party may designate for each such other Committee up to one (1) representative who is not an employee if : (i) such non-employee representative agrees in writing to be bound to the terms of this Agreement for the treatment and ownership of Confidential Information and Inventions of the Parties, and (ii) the other Party consents to the designation of such non-employee representative, which consent shall not be unreasonably withheld.  For purposes of this Section 2.3, employees of Third Security may, at Intrexon’s election, serve as members of a Committee as if they were employees of Intrexon; provided that they meet the requirement of clause (i) above.  Each representative as qualified above may serve on more than one (1) Committee as appropriate in view of the individual’s expertise.  Each Party may replace its Committee representatives at any time upon written notice to the other Party.  Each Committee shall have a chairperson; the chairperson of each committee shall serve for a two-year term and the right to designate which representative to the Committee will act as chairperson shall alternate between the Parties, with Soligenix selecting the chairperson first for the JSC, RC and CC, and Intrexon selecting the chairperson first for the CMCC and IPC. The chairperson of each Committee shall be responsible for calling meetings, preparing and circulating an agenda in advance of each meeting of such Committee, and preparing and issuing minutes of each meeting within fifteen (15) days thereafter.

 

(b)           Meetings.  The JSC shall be constituted and the first meeting of the JSC shall be held promptly following the Effective Date, with the JSC considering finalization and approval of workplans prepared by the Parties for inclusion and commencement under the Melioidosis Program.  Otherwise, each Committee shall hold meetings at such times as it elects to do so, but in no event shall such meetings be held less frequently than once every six (6) months, with the caveat that both Parties may agree to suspend activities of a given Committee other than the JSC until such time as one Party informs the other Party of its then desire to reactivate the so-suspended Committee, at which point the Parties will thereafter schedule and hold the next meeting for the reactivated Committee within one (1) month. Meetings of any Committee may be held in person or by means of telecommunication (telephone, video, or web conferences).  To the extent that a Committee holds any meetings in person, the Parties will alternate in designating the location for such in-person meetings, with Soligenix selecting the first meeting location for each Committee.  A reasonable number of additional representatives of a Party may attend meetings of a Committee in a non-voting capacity.  Each Party shall be responsible for all of its own expenses of participating in any Committee excepting that an Intrexon employee or agent serving on a Committee shall not prevent Intrexon from recouping the Fully Loaded Costs otherwise derived from the labor of that employee or agent in the course of providing manufacturing or support services as set forth in Sections 4.6 and 4.7 below.

 

(c)           Meeting Agendas.  Each Party will disclose to the other proposed agenda items along with appropriate information at least three (3) business days in advance of each meeting of the applicable Committee; provided, that a Party may provide its agenda items to the other Party within a lesser period of time in advance of the meeting, or may propose that there not be a specific agenda for a particular meeting, so long as such other Party consents to such later addition of such agenda items or the absence of a specific agenda for such Committee meeting.

 

(d)           Limitations of Committee Powers.  Each Committee shall have only such powers as are specifically delegated to it hereunder or from time to time as agreed to in writing by the mutual consent of the Parties and shall not be a substitute for the rights of the Parties.  Without limiting the generality of the foregoing, no Committee shall have any power to amend this Agreement.  Any amendment to the terms and conditions of this Agreement shall be implemented pursuant to Section 12.7 below.

 

  

9

  

 

REDACTED COPY

CONFIDENTIAL

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

 

2.4          Committee Decision-Making.  If a Committee is unable to reach unanimous consent on a particular matter within thirty (30) days of its initial consideration of such matter, then either Party may provide written notice of such dispute to the Executive Officer of the other Party.  The Executive Officers of each of the Parties will meet at least once in person or by means of telecommunication (telephone, video, or web conferences) to discuss the dispute and use their good faith efforts to resolve the dispute within thirty (30) days after submission of such dispute to the Executive Officers.  If any such dispute is not resolved by the Executive Officers within thirty (30) days after submission of such dispute to such Executive Officers, then the Executive Officer of the Party specified in the applicable subsection below shall have the authority to finally resolve such dispute acting in good faith.

 

(a)           Casting Vote at JSC.  If a dispute at the JSC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Soligenix shall have the authority to finally resolve such dispute.

 

(b)           Casting Vote at CMCC.  If a dispute at the CMCC is not resolved pursuant to Section 2.4 above, then (i) in the case of any disputes relating to the Intrexon Materials, the manufacture of a Soligenix Product through the use of Intrexon Channel Technology or Intrexon IP, or the manufacturing of other components of Soligenix Products contracted for or manufactured by Intrexon or reasonable controls regarding the dissemination of Intrexon Technology, Intrexon IP or Intrexon Materials, the Executive Officer of Intrexon shall have the authority to finally resolve such dispute; and (ii) in the case of any other disputes, the Executive Officer of Soligenix shall have the authority to finally resolve such dispute.

 

(c)           Casting Vote at RC.  If a dispute at the RC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Soligenix shall have the authority to finally resolve such dispute.

 

(d)           Casting Vote at CC.  If a dispute at the CC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Soligenix shall have the authority to finally resolve such dispute.

 

(e)           Casting Vote at IPC.  If a dispute at the IPC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Intrexon shall have the authority to finally resolve such dispute, provided that such authority shall be shared by the Parties with respect to Product-Specific Program Patents (i.e., neither Party shall have the casting vote on such matters, and any such disputes shall be resolved pursuant to Article 11).

 

(f)           Other Committees.  If any additional Committee or subcommittee other than those set forth in Section 2.2(b) is formed, then the Parties shall, at the time of such formation, agree on which Party shall have the authority to finally resolve a dispute that is not resolved pursuant to Section 2.4 above.

 

(g)           Restrictions.  Neither Party shall exercise its right to finally resolve a dispute at a Committee in accordance with this Section 2.4 in a manner that (i) excuses such Party from any of its obligations specifically enumerated under this Agreement; (ii) expands the obligations of the other Party under this Agreement; (iii) negates any consent rights or other rights specifically allocated to the other Party under this Agreement; (iv) purports to resolve any dispute involving the breach or alleged breach of this Agreement; (v) resolves a matter if the provisions of this Agreement specify that mutual agreement is required for such matter; or (vi) would require the other Party to perform any act that is inconsistent with applicable law.

 

  

10

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 3

 

License Grants

 

3.1          Licenses to Soligenix.

 

(a)           Subject to the terms and conditions of this Agreement, Intrexon hereby grants to Soligenix a license under the Intrexon IP to research, develop, use, make, have made, sell, offer for sale, import and export Soligenix Products in the Field in the Territory.  Such license shall be exclusive (even as to Intrexon) with respect to any development, selling, offering for sale or other Commercialization of Soligenix Products in the Field, and shall be otherwise non-exclusive.

 

(b)           Subject to the terms and conditions of this Agreement, Intrexon hereby grants to Soligenix a non-exclusive, royalty-free license to use and display the Intrexon Trademarks, solely in connection with the Commercialization of Soligenix Products in the promotional materials, packaging, and labeling for Soligenix Products, as provided under and in accordance with Section 4.9.

 

3.2          Sublicensing.  Except as provided in this Section 3.2, Soligenix shall not sublicense the rights granted under Section 3.1 to any Third Party, or transfer the Intrexon Materials to any Third Party, or otherwise grant any Third Party the right to research, develop, use, or Commercialize Soligenix Products or use or display the Intrexon Trademarks, in each case except with Intrexon’s written consent, which written consent may be withheld in Intrexon’s sole discretion.  Notwithstanding the foregoing, Soligenix (and its Product Sublicensees only to the extent explicitly set forth in Section 3.2(a) beow) shall have a limited right to sublicense under the circumstances described in Sections 3.2(a) through 3.2(c).

 

(a)           Soligenix may transfer, to the extent reasonably necessary, Intrexon Materials that are or express Soligenix Products to a Third Party contractor performing contract manufacturing, fill, and/or finish responsibilities for Soligenix Products, and may in connection therewith grant limited sublicenses necessary to enable such Third Party to perform such activities.  If Soligenix transfers any Intrexon Materials under this Section 3.2(a), Soligenix will remain obligated to ensure that the rights of Intrexon in and to the Intrexon Materials and Intrexon IP and under the provisions of Articles 6 and 7 of this Agreement are not violated by any such Third Party contractor.  A Product Sublicensee of Soligenix may transfer, to the extent reasonably necessary and upon the consent of Intrexon, which consent shall not be unreasonably withheld, Intrexon Materials that are or express active pharmaceutical ingredients to a Third Party contractor performing fill/finish responsibilities for Soligenix Products duly sublicensed to that Product Sublicensee, and may in connection therewith grant limited sublicenses to the extent necessary to enable such Third Party to perform such activities.  Soligenix will require and ensure that if any Product Sublicensee transfers any Intrexon Materials under this Section 3.2(a), that such Product Sublicensee, after obtaining Intrexon’s consent, and Soligenix will be responsible for ensuring that the rights of Intrexon in and to the Intrexon Materials and Intrexon IP and under the provisions of Articles 6 and 7 of this Agreement are not violated by any such Third Party contractor.

 

  

11

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(b)           Soligenix may, with Intrexon’s written consent, which consent shall not be unreasonably withheld, sublicense the rights granted under Section 3.1 to an Affiliate, or transfer the Intrexon Materials to an Affiliate, or grant an Affiliate the right to display the Intrexon Trademarks.  In the event that Intrexon consents to any such grant or transfer to an Affiliate, Soligenix shall remain responsible for, and be guarantor of, the performance by any such Affiliate and shall cause such Affiliate to comply with the provisions of this Agreement in connection with such performance (as though such Affiliate were Soligenix), including any payment obligations owed to Intrexon hereunder.

 

(c)           Soligenix may, with Intrexon’s written consent, which consent may not be unreasonably withheld, grant a sublicense of the rights granted under Section 3.1 to a Third Party licensee of any Soligenix Product (a “Product Sublicensee”) to the extent necessary to permit such Third Party to research, develop, use, import, export, make, sell, and offer for sale that Soligenix Product (a “Product Sublicense”), provided, that (i) the Soligenix Product in question has completed a Phase I clinical trial, (ii) such Product Sublicense is expressly limited to the appropriate Soligenix Product, (ii) such Product Sublicense does not grant the Product Sublicensee any rights to Intrexon IP other than that incorporated into the Soligenix Product at the time of the Product Sublicense, (iii) such Product Sublicense does not purport to relieve Soligenix of any of its obligations under this Agreement, (iv) the Product Sublicensee agrees in writing, in a document in form reasonably acceptable to Intrexon and to which Intrexon is an express third party beneficiary, to abide by the following provisions of this Agreement: Sections 3.1, 3.2(a), 3.3-3.6, 3.8, 3.10, 3.11, and 4.6 and Articles 6, 7, and 10, and (v) the Product Sublicense is presented in full to the JSC and IPC by Soligenix before execution by Soligenix and the prospective Product Sublicensee and as soon as is reasonably practical during negotiations thereof for the purpose of allowing the JSC and IPC to review and comment upon the terms and scope of the Product Sublicense agreement.

 

3.3           Limitation on Sublicensees.  None of the enforcement rights under the Intrexon Patents that are granted to Soligenix pursuant to Section 6.3 shall be transferred to, or exercised by, a sublicensee except with Intrexon’s prior written consent, which may be withheld in Intrexon’s sole discretion.

 

3.4           No Non-Permitted Use.  Soligenix hereby covenants that it shall not, nor shall it permit any Affiliate or, if applicable, (sub)licensee, to use or practice, directly or indirectly, any Intrexon IP, Intrexon Channel Technology, or Intrexon Materials for any purposes other than those expressly permitted by this Agreement.

 

  

12

  

 

REDACTED COPY

CONFIDENTIAL

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

 

3.5           Exclusivity.  Intrexon and Soligenix mutually agree that, under the channel collaboration established by this Agreement, it is intended that the Parties will be exclusive to each other in the Field as set forth in this Section 3.5. Neither Intrexon nor its Affiliates shall make the Intrexon Channel Technology or Intrexon Materials available to any Third Party for the purpose of developing or Commercializing products in the Field (except as set forth in Section 3.2), and neither Intrexon nor any Affiliate shall pursue (either by itself or with a Third Party or Affiliate) the research, development or Commercialization of any product for purpose of commercial use or sale in the Field, outside of the Melioidosis Program. Further, neither Soligenix nor its Affiliates shall pursue (either by itself or with a Third Party or Affiliate) outside of the Melioidosis Program the research, development or Commercialization of any product for purpose of commercial use or sale in the Field where such products would compete with Soligenix Products.

 

3.6          Off Label Use. For purpose of clarity, (a) following first Commercial Sale of a Soligenix Product, the use by direct or indirect purchasers or other users of Soligenix Products outside the Field (i.e. “off label use”) shall not constitute a breach by Soligenix of the terms of Section 3.4 or 3.5, provided that neither Soligenix nor its Affiliate (nor any Third Party under contract with either of them) marketed or promoted Soligenix Products for such off-label use; and (b) following first Commercial Sale of a product by Intrexon, an Intrexon Affiliate, or a Third Party sublicensee, collaborator, or partner of Intrexon, the use by direct or indirect purchasers or other users of such products in the Field (i.e. “off label use”) shall not constitute a breach by Intrexon of the terms of Section 3.5, provided that neither Intrexon nor its Affiliate (nor any Third Party under contract with either of them) marketed or promoted such products for such off-label use.

 

3.7           No Prohibition on Intrexon.  Except as explicitly set forth in Sections 3.1 and 3.5, nothing in this Agreement shall prevent Intrexon from practicing or using the Intrexon Materials, Intrexon Channel Technology, and Intrexon IP for any purpose, and to grant to Third Parties the right to do the same.  Without limiting the generality of the foregoing, Soligenix acknowledges that Intrexon has all rights, in Intrexon’s sole discretion, to use or make the Intrexon Materials, Intrexon Channel Technology (including any genetic materials used in a Soligenix Product), and Intrexon IP available to Third Party channel partners or collaborators for use in fields outside the Field.

 

3.8           Rights to Regulatory Data.

 

(a)           Soligenix shall own and control all Regulatory Trial data and regulatory filings relating to Commercialization of Soligenix Products (except to the extent such become Reverted Products).

 

  

13

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(b)           Soligenix shall provide to Intrexon at Intrexon’s request full copies of all Regulatory Trial data and reports, regulatory filings, and communications from regulatory authorities that relate specifically and solely to Soligenix Products.  To the extent that there exist any Regulatory Trial data and reports, regulatory filings, and communications from regulatory authorities owned by Soligenix or a Product Sublicensee that relate both to Soligenix Products and other products produced by Soligenix or a Product Sublicensee outside the Field or outside the Melioidosis Program, upon Intrexon’s request Soligenix shall provide (or require that the Product Sublicensee provide) to Intrexon copies of the portions of such data, reports, filings, and communications that relate to Soligenix Products.  Subject to its ongoing obligations of exclusivity under Section 3.5, Intrexon shall be permitted, directly or in conjunction with or through partners or other channel collaborators, to reference these data, reports, filings, and communications relating to Soligenix Products in regulatory filings made to obtain regulatory approval for products for use in fields outside the Field. Intrexon shall have the right to use any such information in developing and Commercializing products outside the Field and to license any Third Parties to do so.  Notwithstanding the provisions of this Section 3.8, Intrexon shall not, outside of the Melioidosis Program, utilize any Soligenix or Product Sublicensee data, reports, filings or communications for any reason in the Field.

 

(c)           Intrexon shall provide to Soligenix at Soligenix’s request full copies of all Regulatory Trial data and reports, regulatory filings, and communications from regulatory authorities that relate specifically and solely to Intrexon Materials incorporated in a Soligenix Product or products incorporating such Intrexon Materials.  To the extent that there exist any Regulatory Trial data and reports, regulatory filings, and communications from regulatory authorities owned by Intexon or partners or other channel collaborators that relate both to such Intrexon Materials or products and other products produced by Intrexon or a partner or other channel collaborator, upon Soligenix’s request Intrexon shall provide (or use reasonable efforts to cause Intrexon’s partner or other channel collaborator provide) to Soligenix copies of the portions of such data, reports, filings, and communications that relate to such Intrexon Materials or products.  Subject to its ongoing obligations of exclusivity under Section 3.5, Soligenix shall be permitted, directly or in conjunction with Product Sublicensees, to reference these data, reports, filings, and communications relating to such Intrexon Materials or Products in regulatory filings made to obtain regulatory approval for Soligenix Products in the Field. Soligenix shall have the right to use any such information in developing and Commercializing Soligenix Products in the Field and, subject to Section 3.2 to license any Product Sublicensees to do so.  Notwithstanding the provisions of this Section 3.8, Soligenix shall not utilize any data, reports, filings or communications obtained under this Section 3.8(c) for any reason other than for development and Commercialization of Soligenix Products.

 

  

14

  

 

REDACTED COPY

CONFIDENTIAL

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

 

3.9           Third Party Licenses.

 

(a)           [*****] shall obtain [*****] any licenses from Third Parties that are required in order to practice the Intrexon Channel Technology in the Field where the licensed intellectual property is reasonably necessary for Intrexon to conduct genetic and cell engineering and related analytic activities under JSC established plans for the Melioidosis Program (but specifically excluding intellectual property directed to any specific antibodies, methods of treatment or therapy, cell lines, active pharmaceutical ingredients, delivery or packaging methods or apparatuses, or processes or methods for commercially manufacturing Soligenix Products) (“Supplemental In-Licensed Third Party IP”).  Other than with respect to Supplemental In-Licensed Third Party IP, [*****] shall be solely responsible for obtaining [*****] any licenses from Third Parties that [*****] determines, in its sole discretion, are required in order to lawfully make, use, sell, offer for sale, or import Soligenix Products (“Complementary In-Licensed Third Party IP”).  Supplemental In-Licensed Third Party IP and Complementary In-Licensed Third Party IP are collectively referred to as “In-Licensed Program IP”.

 

(b)           In the event that either Party desires to license from a Third Party any Supplemental In-Licensed Third Party IP or Complementary In-Licensed Third Party IP, such Party shall so notify the other Party, and the IPC shall discuss such In-Licensed Program IP and its applicability to the Soligenix Products and to the Field.  As provided above in Section 3.8(a), [*****] shall have the sole right and responsibility to pursue a license under Supplemental In-Licensed Third Party IP, and [*****] hereby covenants that it shall not itself directly license such Supplemental In-Licensed Third Party IP at any time, provided that [*****] may (but shall not be obligated to) obtain such a license directly if the Third Party owner or licensee of such Supplemental In-Licensed Third Party IP brings an infringement action against [*****] or its Affiliates or threatens to bring such action (to the extent such threats would reasonably be considered to subject the Third Party owner or licensee to declaratory judgment jurisdiction) and, after written notice to [*****] of such action, [*****] fails to obtain a license to such Supplemental In-Licensed Third Party IP using Diligent Efforts within ninety (90) days after such notice.  Following the IPC’s discussion of any Complementary In-Licensed Third Party IP, subject to Section 3.8(c), [*****] shall have the right to pursue a license under Complementary In-Licensed Third Party IP [*****].  For the avoidance of doubt, [*****] may at any time obtain a license under Complementary In-Licensed Third Party IP outside the Field [*****] provided that if [*****] decides to seek to obtain such a license, it shall use reasonable efforts to coordinate its licensing activities in this regard with [*****].

 

(c)           [*****] shall provide the proposed terms of any license under Complementary In-Licensed Third Party IP and the final version of the definitive license agreement for any Complementary In-Licensed Third Party IP to the IPC for review and discussion prior to signing, and shall consider [*****] comments thereto in good faith.  To the extent that [*****] obtains a license under Supplemental In-Licensed Third Party IP, [*****] shall provide the final version of the definitive license agreement for such Supplemental In-Licensed Third Party IP to the IPC. If [*****] acquires rights under any In-Licensed Program IP outside the Field, it will do so on a non-exclusive basis unless it obtains the prior written consent of [*****] for such license outside the Field to be exclusive.  Any Party that is pursuing a license to any In-Licensed Program IP with respect to the Field under this Section 3.8 shall keep the other Party reasonably informed of the status of any negotiations relating thereto. For purposes of clarity, (i) any costs incurred by [*****] in obtaining and maintaining licenses to Supplemental In-Licensed Third Party IP shall be borne solely by [*****], and (ii) any costs incurred by [*****] in obtaining and maintaining licenses to Complementary In-Licensed Third Party IP (and, to the limited extent provided in subsection (b), Supplemental In-Licensed Third Party IP) shall be borne solely by [*****].

 

  

15

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(d)           For any Third Party license under which Soligenix or its Affiliates obtain a license under Patents claiming inventions or know-how specific to or used or incorporated into the development, manufacture, and/or Commercialization of Soligenix Products, Soligenix shall use commercially reasonable efforts to ensure that Soligenix will have the ability, pursuant to Section 10.4(h), to assign such agreement to Intrexon or grant a sublicense to Intrexon thereunder (having the scope set forth in Section 10.4(h)).

 

(e)           The licenses granted to Soligenix under Section 3.1 may include sublicenses under Intrexon IP that has been licensed to Intrexon by one or more Third Parties.  All such sublicenses are subject to the terms and conditions set forth in the applicable upstream license agreement, subject to the cost allocation set forth in Section 3.8(c), provided that Intrexon shall either provide unredacted copies of such upstream license agreements to Soligenix or shall disclose in writing to Soligenix all of such terms and conditions that are applicable to Soligenix.  Soligenix shall not be responsible for complying with any provisions of such upstream license agreements unless, and to the extent that, such provisions have been disclosed to Soligenix as provided in the preceding sentence.

 

(f)           If either Party receives notice from a Third Party concerning activities of a Party taken in conjunction with performance of obligations under this Agreement, which notice alleges infringement by a Party of, or offers license under, Patents or other intellectual property rights owned or controlled by that Third Party, the receiving Party shall inform the other party thereof within five (5) business days.

 

3.10        Licenses to Intrexon.  Subject to the terms and conditions of this Agreement, Soligenix hereby grants to Intrexon a non-exclusive, worldwide, fully-paid, royalty-free license, under any applicable Patents or other intellectual property Controlled by Soligenix or its Affiliates, solely to the extent necessary for Intrexon to conduct those responsibilities assigned to it under this Agreement, which license shall be sublicensable solely to Intrexon’s Affiliates or to any Intrexon subcontractors as permitted in accord with Section 4.6 or as otherwise permitted to be used by Intrexon in conjunction with support services under Section 4.7 (subject to JSC research plan approval).

 

3.11        Restrictions Relating to Intrexon Materials.  Soligenix and its permitted sublicensees shall use the Intrexon Materials solely for purposes of the Melioidosis Program and not for any other purpose without the prior written consent of Intrexon.  With respect to the Intrexon Materials comprising Intrexon’s vector assembly technology, Soligenix shall not, and shall ensure that Soligenix personnel and permitted sublicensees do not, except as otherwise permitted in this Agreement (a) distribute, sell, lend or otherwise transfer such Intrexon Materials to any Third Party; (b) co-mingle such Intrexon Materials with any other proprietary biological or chemical materials without Intrexon’s written consent; or (c) analyze such Intrexon Materials or in any way attempt to reverse engineer or sequence such Intrexon Materials.

 

  

16

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 4

 

Other Rights and Obligations

 

4.1           Development and Commercialization. Subject to Sections 4.6 and 4.7, Soligenix shall be solely responsible for the development and Commercialization of Soligenix Products.  Soligenix shall be responsible for all costs incurred in connection with the Melioidosis Program except that Intrexon shall be responsible for the following:  (a) costs of establishing manufacturing capabilities and facilities in connection with Intrexon’s manufacturing obligation under Section 4.6 (provided, however, that Intrexon may include an allocable portion of such costs, through depreciation and amortization, when calculating the Fully Loaded Cost of manufacturing a Soligenix Product, to the extent such allocation, depreciation, and amortization is permitted by US GAAP, it being recognized that the majority of non-facilities scale-up costs cannot be capitalized and amortized under US GAAP); (b) costs of basic research with respect to the Intrexon Channel Technology and Intrexon Materials (i.e., platform improvements) but, for clarity, excluding research described in Section 4.7 or research requested by the JSC for the development of a Soligenix Product (which research costs shall be reimbursed by Soligenix); (c) [*****]; and (d) costs of filing, prosecution and maintenance of Intrexon Patents.  The costs encompassed within clause (a) of the previous sentence shall include without limitation the scale-up of Intrexon Materials for generating data for manufacturing-related regulatory approval submissions and Commercialization of Soligenix Products undertaken pursuant to Section 4.6, which shall be at Intrexon’s cost whether it elects to conduct such efforts internally or through Third Party contractors retained by either Intrexon or Soligenix (with Intrexon’s consent).

 

4.2           Transfer of Technology and Information.  The JSC shall develop a plan and protocol for each project and timing for the transfer of relevant data and materials between the Parties.

 

4.3           Information and Reporting.  Soligenix will keep Intrexon informed about Soligenix’s efforts to develop and Commercialize Soligenix Products, including reasonable and accurate summaries of Soligenix’s (and its Affiliates’ and, if applicable, (sub)licensees’) development plans (as updated), including regulatory plans, marketing plans (as updated), progress towards meeting the goals and milestones in such plans and explanations of any material deviations, significant developments in the development and/or Commercialization of the Soligenix Products, including initiation or completion of a Regulatory Trial, submission of a United States or international regulatory filing, receipt of a response to such United States or international regulatory filing, Soligenix Product adverse safety events, receipt of Regulatory Approval, or commercial launch.  As set forth in Section 3.7 above, Soligenix shall also provide to Intrexon copies of all final Regulatory Trial protocols and reports, and regulatory correspondence and filings generated by Soligenix as soon as practical after they become available.  Intrexon will keep Soligenix informed about Intrexon’s efforts (a) to establish manufacturing capabilities and facilities for Soligenix Products (and Intrexon Materials relevant thereto) and otherwise perform its manufacturing responsibilities under Section 4.6 and (b) to undertake discovery-stage research for the Melioidosis Program with respect to the Intrexon Channel Technology and Intrexon Materials.  Unless otherwise provided herein or directed by the JSC in accord with Section 4.2 above, such disclosures by Soligenix and Intrexon will be coordinated by the JSC and made in connection with JSC meetings at least once every six (6) months while Soligenix Products are being developed or Commercialized anywhere in the world, and shall be reflected in the minutes of such meetings.

 

  

17

  

 

REDACTED COPY

CONFIDENTIAL

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

 

4.4          Regulatory Matters.  At all times after the Effective Date, Soligenix shall own and maintain, at its own cost, all regulatory filings and regulatory approvals for Soligenix Products that Soligenix is developing or Commercializing pursuant to this Agreement.  As such, Soligenix shall be responsible for reporting all adverse events related to such Soligenix Products to the appropriate regulatory authorities in the relevant countries, in accordance with the applicable laws and regulations of such countries.  To the extent that Intrexon will itself develop, or in collaboration with other third parties develop, Intrexon Materials outside of the Field, either Party may request that Soligenix and Intrexon establish and execute a separate safety data exchange agreement, which agreement will address and govern the timely exchange of safety information generated by Soligenix, Intrexon, and relevant third parties with respect to specific Intrexon Materials.

 

4.5          Diligence.

 

(a)           Soligenix shall use, and shall require its sublicensees to use, Diligent Efforts to develop and Commercialize Soligenix Products.  Activities and success of Soligenix relating to ongoing active pursuit of Government Funding to develop or Commercialize Soligenix Products shall be considered in determining whether Soligenix is using Diligent Efforts in accord with this Section 4.5(a).

 

(b)           Without limiting the generality of the foregoing, Intrexon may, from time to time, notify Soligenix that it believes it has identified a Superior Therapy, and in such case Intrexon shall provide to Soligenix its then-available information about such therapy and reasonable written support for its conclusion that the therapy constitutes a Superior Therapy.  Soligenix shall have the following obligations with respect to such proposed Superior Therapy:  (i) within ninety (90) days after such notification, Soligenix shall prepare and deliver to the JSC for review and approval a development plan detailing how Soligenix will pursue the Superior Therapy (including a proposed budget) along with a comparative analysis outlining the economic impact to both Intrexon and Soligenix to developing the Superior Therapy compared to the existing product; (ii) assuming the JSC approves development of the Superior Therapy, Soligenix shall revise the development plan as directed by the JSC; and (iii) following approval of the development plan by the JSC, Soligenix shall use Diligent Efforts to pursue the development of the Superior Therapy under the Melioidosis Program in accordance with such development plan.  If Soligenix fails to comply with the foregoing obligations, or if Soligenix unreasonably exercises its casting vote at the JSC to either (x) prevent the approval of a development plan for a Superior Therapy; (y) delay such approval more than sixty (60) days after delivery of the development plan to the JSC; or (z) approve a development plan that is insufficient in view of the nature and magnitude of the opportunity presented by the Superior Therapy, then Intrexon shall have the termination right set forth in Section 10.2(c) (subject to the limitation set forth therein).  For clarity, any dispute arising under this 4.5, including any dispute as to whether a proposed project constitutes a Superior Therapy (as with any other dispute under this Agreement) shall be subject to dispute resolution in accordance with Article 11.

 

  

18

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(c)           The activities of Soligenix’s Affiliates and any sublicensees of Soligenix permitted in accord with Section 3.2 shall be attributed to Soligenix for the purposes of evaluating Soligenix’s fulfillment of the obligations set forth in this Section 4.5.

 

4.6           Manufacturing.  Intrexon shall have the option and, in the event it so elects, shall use Diligent Efforts, to perform any manufacturing activities in connection with the Melioidosis Program of the Intrexon Materials, including through the use of a suitable Third Party contract manufacturer.  To the extent that Intrexon so elects, either Party may request that Soligenix and Intrexon establish and execute a separate manufacturing and supply agreement, which agreement will establish and govern the production, quality assurance, and regulatory activities associated with manufacture of Intrexon Materials.  Except as provided in Section 4.1, any manufacturing undertaken by Intrexon pursuant to the preceding sentence shall be performed in exchange for cash payments equal to Intrexon’s Fully Loaded Cost in connection with such manufacturing, on terms to be negotiated by the Parties in good faith.  In the event that Intrexon does not manufacture Intrexon Materials or bulk quantities of other components of Soligenix Products, then Intrexon shall provide to Soligenix or a contract manufacturer selected by Soligenix and approved by Intrexon all Information Controlled by Intrexon that is (a) related to the manufacturing of such Intrexon Materials or bulk quantities of other components of Soligenix Products for use in the Field and (b) reasonably necessary to enable Soligenix or such contract manufacturer (as appropriate) for the sole purpose of manufacturing such Intrexon Materials or bulk quantities of other components of Soligenix Products.  The costs and expenses incurred by Intrexon in carrying out such transfer shall be borne by Intrexon.  Any manufacturing Information transferred hereunder to Soligenix or its contract manufacturer shall not be further transferred to any Third Party, including any sublicensee of Soligenix, or any Soligenix Affiliate without the prior written consent of Intrexon; provided, however, that Intrexon shall not unreasonably withhold such consent if necessary to permit Soligenix to switch manufacturers.

 

4.7           Support Services.    The JSC will meet promptly following the Effective Date and establish a plan under which Intrexon will provide support services to Soligenix for the research and development of Soligenix Products under the Melioidosis Program, which initial plan may be amended from time to time by the JSC.  Wherever commercially reasonable, such plan shall take into account and prioritize pursuit of Government Funding to support development activities and a strategy to secure funding.  In conjunction with Government Funding and/or in addition as is reasonable for development of the Melioidosis Program, Soligenix will compensate Intrexon for such support services with cash payments equal to Intrexon’s Fully Loaded Cost in connection with such services.  Additionally, from time to time, on an ongoing basis, Soligenix shall request, or Intrexon may propose, that Intrexon perform certain additional support services with respect to researching and developing new Soligenix Products or improving the manufacturing or processing methods for any existing Soligenix Products.  To the extent that the Parties mutually agree that Intrexon should perform such additional services, the Parties shall negotiate in good faith the terms under which services would be performed, it being understood that Intrexon would be compensated for such services by cash payments equal to Intrexon’s Fully Loaded Cost in connection with such services.

 

  

19

  

 

REDACTED COPY

CONFIDENTIAL

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

 

4.8           Compliance with Law.  Each Party shall comply, and shall ensure that its Affiliates, (sub)licensees and Third Party contractors comply, with all applicable laws, regulations, and guidelines applicable to the Melioidosis Program, including without limitation those relating to the transport, storage, and handling of Intrexon Materials and Soligenix Products.

 

4.9           Trademarks and Patent Marking.  To the extent permitted by applicable law and regulations, Soligenix shall ensure that the packaging, promotional materials, and labeling for Soligenix Products, as appropriate, shall carry, in a conspicuous location, the applicable Intrexon Trademark(s), subject to Soligenix’s reasonable approval of the size, position, and location thereof.  Consistent with the U.S. patent laws, Soligenix shall ensure that Soligenix Products, or their respective packaging or accompanying literature as appropriate, bear applicable and appropriate patent markings for Intrexon Patent numbers.  Soligenix shall provide Intrexon with copies of any materials containing the Intrexon Trademarks or patent markings prior to using or disseminating such materials, in order to obtain Intrexon’s approval thereof.  Soligenix’s use of the Intrexon Trademarks and patent markings shall be subject to prior review and approval of the IPC.  Soligenix acknowledges Intrexon’s sole ownership of the Intrexon Trademarks and agrees not to take any action inconsistent with such ownership.  Soligenix covenants that it shall not use any trademark confusingly similar to any Intrexon Trademarks in connection with any products (including any Soligenix Product).  From time to time during the Term, Intrexon shall have the right to obtain from Soligenix samples of Soligenix Product sold by Soligenix or its Affiliates or sublicensees, or other items which reflect public uses of the Intrexon Trademarks or patent markings, for the purpose of inspecting the quality of such Soligenix Products, the use of the Intrexon Trademarks, or the accuracy of the patent markings.  In the event that Intrexon inspects under this Section 4.9, Intrexon shall notify the result of such inspection to Soligenix in writing thereafter.  Soligenix shall comply with reasonable policies provided by Intrexon from time-to-time to maintain the goodwill and value of the Intrexon Trademarks.

 

  

20

  

 

REDACTED COPY

CONFIDENTIAL

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

 

4.10        Reporting Compliance.  During the Term, in the event that Intrexon notifies Soligenix that Intrexon has reasonably concluded, after consultation with its outside advisors, that Intrexon will have to consolidate Soligenix’s financial statements with its own, for so long as Intrexon reasonably believes that such consolidation is necessary, Soligenix shall used best efforts to comply with the following additional obligations:

 

(a)           Soligenix shall maintain at its principal place of business or, upon notice to Intrexon, at such other place as Soligenix shall determine:

 

(i)           a copy of Soligenix’s certificate of incorporation or organizational document and all amendments thereto, together with executed copies of any powers of attorney pursuant to which any amendment has been executed;

 

(ii)          a copy of this Agreement;

 

(iii)         a copy of Soligenix’s federal, state, and local income tax returns and reports, if any; and

 

(iv)         minutes of meetings of Soligenix’s board of directors and shareholders or actions by written consent in lieu thereof, redacted as necessary by Soligenix to exclude any sensitive or confidential information that Intrexon, by operation of law or contractual stipulation, is not permitted to receive.

 

(b)           Soligenix shall keep its books and records consistent with US GAAP.

 

(c)           Intrexon at its own expense and upon reasonable notice, may examine any information it may reasonably request (including, to the extent Soligenix has the right to provide such, the work papers of Soligenix’s internal and independent auditors) and make copies of and abstracts from the financial and operating records and books of account of Soligenix, and discuss the affairs, finances and accounts of Soligenix with Soligenix and independent auditors of Soligenix, all at such reasonable times and as often as Intrexon or any agents or representatives of Intrexon may reasonably request. The rights granted pursuant to this Section 4.10(c) are expressly subject to compliance by Intrexon with the safety, security and confidentiality procedures and guidelines of Soligenix, as such procedures and guidelines may be established from time to time.

 

(d)           As soon as available but no later than ninety (90) days after the end of each fiscal year, Soligenix shall cause to be prepared and Intrexon to be furnished with an audited balance sheet as of the last day of such fiscal year and an audited income statement, a statement of stockholders’ equity and statement of cash flows for Soligenix for such fiscal year and notes associated with each, in each case prepared in accordance with US GAAP, together with a report of Soligenix’s independent auditor that such statements have been prepared in accordance with US GAAP and present fairly, in all material respects, the financial position, results of operations and cash flows of Soligenix.

 

(e)           As soon as available but no later than forty five (45) days after the end of each calendar quarter, Soligenix shall furnish the following to Intrexon an unaudited balance sheet as of the last day of such period, and an unaudited income statement, a statement of cash flows and a statement of stockholders’ equity for Soligenix for such period, in each case prepared in accordance with US GAAP.

 

  

21

  

REDACTED COPY

CONFIDENTIAL

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

 

(f)           As requested by Intrexon on no more than a quarterly basis, a certificate, executed by the Executive Officer of Soligenix, certifying on behalf of Soligenix the following:

 

(i)           Soligenix maintains accurate books and records reflecting its assets and liabilities and maintains proper and adequate internal accounting controls that provide assurance that (1) transactions are executed with management’s authorization; (2) transactions are recorded as necessary to permit preparation of the consolidated financial statements of Soligenix and to maintain accountability for Soligenix’s consolidated assets; (3) access to the assets of Soligenix is permitted only in accordance with management’s authorization; (4) the reporting of assets of Soligenix is compared with existing assets at regular intervals; and (5) accounts, notes and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the collection of accounts, notes and other receivables on a current and timely basis.

 

(ii)           under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder; any such controls and procedures are effective to ensure that all material information concerning (ii) Soligenix is made known on a timely basis to those individuals responsible for the preparation of any filings that may be required to be made by Intrexon with the SEC and other public disclosure documents.

 

(g)         Soligenix shall promptly prepare and furnish to Intrexon any information, whether written or oral, requested by Intrexon that is reasonably necessary for purposes of Intrexon’s ongoing compliance with applicable law.

 

4.11        Modification of Deadlines.  The parties agree that the delivery deadlines in Section 4.10 will be modified to the extent necessary to ensure that such deliverables are provided by Soligenix no less than thirty (30) days prior (inclusive of any cure period set forth in Section 10.2(a)) to the date necessary for Intrexon to meet any disclosure obligation under rules or regulations to which Intrexon may be or become subject from time to time. Intrexon will provide Soligenix with notice as promptly as practicable regarding any changes in Intrexon’s disclosure obligations that would require a change in delivery deadlines or cure periods under this Section 4.11.

 

4.12        Grant Activities.  While the Parties anticipate that the Melioidosis Program will be supported predominantly by Government Funding, Soligenix will not apply for or obtain grants, whether government or private, to fund activities under the Melioidosis Program, or use funds from any such grant to support activities under the Melioidosis Progam, without obtaining approval in accord with this Section 4.12.  The provisions and obligations of any prospective grant shall be presented in full by Soligenix to the JSC and IPC before any grant application submission and before any grant acceptance by Soligenix as soon as is reasonably practical for the purpose of allowing the JSC and IPC to review the terms and scope of grant, to determine, within each such Committee’s respective authority, whether such grant (or related funds) would comply with the relevant terms and obligations of this Agreement, and to approve or reject such application for or acceptance of such grant (or use of such grant funds).  Intrexon shall not unreasonably use its casting vote at the IPC to withhold its approval of relevant Government Funding grants or contracts to the extent that such grants or contracts do not (i) unreasonably restrict Intrexon’s rights to own or use any Inventions developed in the course of the Melioidosis Program consistent with Article 6 of this Agreement, or (ii) impose unreasonable restrictions upon Intrexon’s business or platform technology programs.

 

  

22

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 5

 

Compensation

 

5.1           Technology Access Fee.  In partial consideration for Soligenix’s appointment as an exclusive channel collaborator in the Field and the other rights granted to Soligenix hereunder, Soligenix shall issue to Intrexon, as an access fee for commercial license rights to the Intrexon IP granted under Section 3.1, certain equity interests in Soligenix (the “Technology Access Fee”) in accordance with the terms and conditions of the Stock Issuance Agreement of even date herewith (the “Equity Agreement”).  As set forth in the Equity Agreement, the Technology Access Fee will be either (i) one and one-half million dollars ($1,500,000) in cash, or (ii) that number of shares of Soligenix common stock having a value equaling one and one-half million dollars ($1,500,000) (the number of shares to be calculated according to, or stipulated by, the terms of the Equity Agreement).  Full payment of the Technology Access Fee, will occur within the timeframes set forth in the Equity Agreement.  Provided that all closing conditions for the Technology Access Fee Shares (as defined in the Equity Agreement) that are within the reasonable control of Intrexon have been satisfied or waived, the payment of the Technology Access fee to Intrexon, including issuance of any Technology Access Fee Shares (as set forth in the Equity Agreement) to Intrexon, is a condition subsequent to the effectiveness of this Agreement. 

 

5.2           Milestones.  Upon the attainment of certain milestone events by a Soligenix Product (whether such attainment is achieved by Soligenix, an Affiliate of Soligenix, or sublicensee of Soligenix), Soligenix has agreed to make certain milestone payments to Intrexon as generally set forth below in Sections 5.2(a) and 5.2(b), which payments (subject to the terms and conditions of the Equity Agreement) shall be either in cash or in an equivalent value of Soligenix common stock at Soligenix’s sole discretion.

 

(a)           IND Milestone.  Within thirty (30) days of the achievement of an IND Milestone Event (as defined in the Equity Agreement), Soligenix will pay to Intrexon, according to the timelines and procedures set forth in the Equity Agreement, one of the following: (i) [*****] in cash, or (ii) the IND Milestone Shares (as defined in the Equity Agreement).

 

(b)           Regulatory Approval Milestone.  Within thirty (30) days of the achievement of an Approval Milestone Event (as defined in the Equity Agreement), Soligenix will pay to Intrexon, according to the timelines and procedures set forth in the Equity Agreement, one of the following: (i) [*****] in cash, or (ii) the Approval Milestone Shares (as defined in the Equity Agreement).

 

  

23

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(c)           If (A) a milestone event occurs that gives rise to a right for Intrexon to receive a milestone payment from Soligenix under this Section 5.2, (B) that milestone event is achieved by a Soligenix Product licensed to a Product Sublicensee under a respective Product Sublicense, and (C) Soligenix is due to receive a milestone payment from the Product Sublicensee for achievement of that same (or substantially similar) milestone event by the sublicensed Soligenix Product under the respective Product Sublicense, then Intrexon may elect at its own discretion to waive that particular milestone payment from Soligenix for that particular milestone event and instead designate the amount of the payment due to Soligenix from the Product Sublicensee for that same (or substantially similar) milestone event as Sublicensing Revenue for which Intrexon will be entitled to receive revenue sharing under Section 5.4(b). If it so elects under this Section 5.2(c), Intrexon must notify Soligenix in writing of its waiver of the milestone and election to share the milestone payment due from the Product Sublicensee as Sublicensing Revenue at least five (5) business days prior to the deadline for Soligenix to issue shares or otherwise make a payment for the waived milestone payment. The actual receipt by Intrexon of its full share of such a Product Sublicensee milestone payment as Sublicensing Revenue will be a condition subsequent to making final any waiver of Intrexon’s rights to receive the particular milestone payment otherwise due from Soligenix under this Section 5.2. Soligenix will pay Intrexon any amount due under this Section 5.2 within the later of (i) thirty (30) days from underlying milestone event, or (ii) ten (10) days following the date stipulated in the underlying Product Sublicense for Soligenix to receive the milestone payment.

 

5.3          Equity Agreement Controls.  All issuances of equity interests to Intrexon shall be in accordance with the terms and conditions of the Equity Agreement, which Equity Agreement shall control to the extent they may conflict with Sections 5.1 or 5.2 of this Agreement.

 

5.4           Revenue Sharing.

 

(a)           No later than thirty (30) days after each calendar quarter in which there are positive Net Sales arising from the sale of any Soligenix Product in the Field in the Territory, Soligenix shall pay to Intrexon on a Soligenix Product-by-Soligenix Product basis (i) a six percent (6%) royalty on the first one hundred million dollars ($100M) of annual Net Sales (cumulative worldwide for all Soligenix Products), (ii) an eight percent (8%) royalty on the portion of annual Net Sales exceeding one hundred million dollars ($100M) up to and including two hundred million dollars ($200M) of annual Net Sales (cumulative worldwide for all Soligenix Products), (iii) a ten percent (10%) royalty on the portion of annual Net Sales exceeding two hundred million dollars ($200M) up to and including three hundred million dollars ($300M) of annual Net Sales (cumulative worldwide for all Soligenix Products), and (iv) a twelve percent (12%) royalty on the portion of annual Net Sales exceeding three hundred million dollars ($300M) (cumulative worldwide for all Soligenix Products).  Commencing with the Effective Date, in the event there are negative Net Sales for a particular Soligenix Product in any calendar quarter, neither Soligenix nor Intrexon shall owe any payments hereunder with respect to such Soligenix Product.  To the extent that a portion of Net Sales for any calendar quarter is derived from the sale of Soligenix Products by a Product Sublicensee, the royalty payment due to Intrexon for that portion of Net Sales derived from the Product Sublicensee shall in no event be greater than fifty percent (50%) of the royalty payment due to Soligenix from the Product Sublicensee under the relevant Product Sublicense.

 

  

24

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(b)             No later than thirty (30) days after each calendar quarter in which Soligenix or any Soligenix Affiliate receives Sublicensing Revenue, Soligenix shall pay to Intrexon fifty percent (50%) of such Sublicensing Revenue.

 

5.5           Method of Payment.  Cash payments due to Intrexon under this Agreement shall be paid in United States dollars by wire transfer to a bank in the United States designated in writing by Intrexon.  All references to “dollars” or “$” herein shall refer to United States dollars.

 

5.6           Payment Reports and Records Retention.  Within thirty (30) days after the end of each calendar quarter during which Net Sales have been generated, during which Sublicensing Revenue has been received, or during which a negative Net Sales has occurred, Soligenix shall deliver to Intrexon a written report that shall contain at a minimum for the applicable calendar quarter:

 

(a)           gross sales of each Soligenix Product on a country-by-country basis;

 

(b)           itemized calculation of Net Sales on a Soligenix Product-by-Soligenix Product and country-by-country basis (showing conversion to dollars for any Net Sales derived in a currency other than dollars), showing all applicable deductions;

 

(c)           the amount of any negative Net Sales for the applicable calendar quarter;

 

(d)           the amount of the payment (if any) due to Intrexon pursuant to Section 5.4(a) and 5.4(b);

 

(e)           the amount of taxes, if any, withheld from each of the payments set forth in Sections 5.8(d) and 5.8(e) to comply with any applicable law; and

 

(f)           the exchange rates used in any of the foregoing calculations.

 

For three (3) years after each sale or other commercial use of Soligenix Product, or after incurring any component item Soligenix incorporated into its calculation of Net Sales or otherwise impacting Soligenix’s calculations with regard to payments made to Intrexon in accord with Sections 5.4(a) or 5.4(b), Soligenix shall keep (and shall ensure that its Affiliates and, if applicable, (sub)licensees shall keep) complete and accurate records of such sales and other relevant information in sufficient detail to confirm the accuracy of the payment calculations hereunder.

 

  

25

  

 

REDACTED COPY

CONFIDENTIAL

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

 

5.7           Audits.

 

(a)           Upon the written request of a Party, the other Party shall permit an independent certified public accounting firm of internationally recognized standing selected by the requesting Party, and reasonably acceptable to the other Party, to have access to and to review, during normal business hours and upon no less than thirty (30) days prior written notice, the applicable records of the other Party and its Affiliates to verify, as applicable, the accuracy and timeliness of the reports and payments made by Soligenix under this Agreement or the amounts charged by Intrexon to Soligenix under this Agreement as its Fully Loaded Cost.  Such review may cover the records for sales made in any calendar year with respect to an audit of Soligenix, and for Fully Loaded Costs with respect to an audit of Intrexon, in each case ending not more than three (3) years prior to the date of such request.  The accounting firm shall disclose to both Parties whether the royalty reports or Fully Loaded Costs charges, as applicable, conform to the provisions of this Agreement and/or US GAAP, as applicable, and the specific details concerning any discrepancies.  Such audit may not be conducted more than once in any calendar year.

 

(b)           If such accounting firm concludes that additional amounts were owed to Intrexon or over-charged by Intrexon during such period, as appliacble, Soligenix or Intrexon, respectively, shall pay additional amounts, with interest from the date originally due with respect to royalty payments by Soligenix as set forth in Section 5.9, within thirty (30) days of receipt of the accounting firm’s written report.  If the amount of the underpayment or over-charging, as applicable, is greater than five percent (5%) of the total amount actually owed or charged for the period audited, then the other Party shall in addition reimburse the auditing Party for all costs related to such audit; otherwise, the auditing Party shall pay all costs of the audit.  In the event of overpayment of royalties by Soligenix, any amount of such overpayment shall be fully creditable against amounts payable for the immediately succeeding calendar quarter(s); provided, however, that if such overpayment is reasonably expected to exceed the amount projected to be payable to Intrexon by Soligenix over next three (3) quarters, Intrexon will promptly repay to Soligenix any amount exceeding that projected amount.

 

(c)           The auditing Party shall (i) treat all information that it receives under this Section 5.7 in accordance with the confidentiality provisions of Article 7 and (ii) cause its accounting firm to enter into an acceptable confidentiality agreement with the other Party obligating such firm to retain all such financial information in confidence pursuant to such confidentiality agreement, in each case except to the extent necessary for Intrexon to enforce its rights under this Agreement.

 

5.8          Taxes.  The Parties will cooperate in good faith to obtain the benefit of any relevant tax treaties to minimize as far as reasonably possible any taxes which may be levied on any amounts payable hereunder.  Soligenix shall deduct or withhold from any payments any taxes that it is required by applicable law to deduct or withhold.  Notwithstanding the foregoing, if Intrexon is entitled under any applicable tax treaty to a reduction of the rate of, or the elimination of, applicable withholding tax, it may deliver to Soligenix or the appropriate governmental authority (with the assistance of Soligenix to the extent that this is reasonably required and is expressly requested in writing) the prescribed forms necessary to reduce the applicable rate of withholding or to relieve Soligenix of its obligation to withhold tax, and Soligenix shall apply the reduced rate of withholding tax, or dispense with withholding tax, as the case may be, provided that Soligenix has received evidence of Intrexon’s delivery of all applicable forms (and, if necessary, its receipt of appropriate governmental authorization) at least fifteen (15) days prior to the time that the payment is due.  If, in accordance with the foregoing, Soligenix withholds any amount, it shall make timely payment to the proper taxing authority of the withheld amount, and send to Intrexon proof of such payment within forty-five (45) days following that latter payment.

 

  

26

  

 

REDACTED COPY

CONFIDENTIAL

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

 

5.9          Late Payments.  Any amount owed by Soligenix to Intrexon under this Agreement that is not paid within the applicable time period set forth herein shall accrue interest at the lower of (a) two percent (2%) per month, compounded, or (b) the highest rate permitted under applicable law.

 

ARTICLE 6

 

Intellectual Property

 

6.1           Ownership.

 

(a)           Subject to the license granted under Section 3.1, all rights in the Intrexon IP shall remain with Intrexon.

 

(b)           Soligenix and/or Intrexon may solely or jointly conceive, reduce to practice or develop discoveries, inventions, processes, techniques, and other technology, whether or not patentable, in the course of performing the Melioidosis Program (collectively “Inventions”).  Each Party shall promptly provide the other Party with a detailed written description of any such Inventions that relate to the Field.  Inventorship shall be determined in accordance with United States patent laws.

 

(c)           Intrexon shall solely own all right, title and interest in all Inventions made with, using, or otherwise incorporating Intrexon Channel Technology, together with all Patent rights and other intellectual property rights therein (the “Channel-Related Program IP”).  Soligenix hereby assigns all of its right, title and interest in and to the Channel-Related Program IP to Intrexon.  Soligenix agrees to execute such documents and perform such other acts as Intrexon may reasonably request to obtain, perfect and enforce its rights to the Channel-Related Program IP and the assignment thereof.

 

(d)           Notwithstanding anything to the contrary in this Agreement, any discovery, invention, process, technique, or other technology, whether or not patentable, that is conceived, reduced to practice or developed by Soligenix solely or jointly through the use of the Intrexon Channel Technology, Intrexon IP, or Intrexon Materials in breach of the terms and conditions of this Agreement, together with all patent rights and other intellectual property rights therein, shall be solely owned by Intrexon and shall be included in the Channel-Related Program IP.

 

  

27

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(e)           All Information regarding Channel-Related Program IP shall be Confidential Information of Intrexon.  Soligenix shall be under appropriate written agreements with each of its employees, contractors, or agents working on the Melioidosis Program, pursuant to which such person shall grant all rights in the Inventions to Soligenix (so that Soligenix may convey certain of such rights to Intrexon, as provided herein) and agree to protect all Confidential Information relating to the Melioidosis Program.

 

(f)           All rights, technology, and intellectual property (A) owned by Soligenix or licensed from a Third Party by Soligenix as of the Effective Date, or (B) thereafter developed by Soligenix independent of the Melioidosis Program, Intrexon Channel Technology, Intrexon IP or Intrexon Materials, shall be owned by and remain the property of Soligenix (the “Soligenix Independent IP”).

 

6.2           Patent Prosecution.

 

(a)           Intrexon shall have the sole right, but not the obligation, at Intrexon’s expense, to (i) conduct and control the filing, prosecution and maintenance of the Intrexon Patents, and (ii) conduct and control the filing, prosecution, and maintenance of any applications for patent term extension and/or supplementary protection certificates for the Intrexon Patents that may be available as a result of the regulatory approval of any Soligenix Product.  At the reasonable request of Intrexon, Soligenix shall cooperate with Intrexon in connection with such filing, prosecution, and maintenance, at Intrexon’s expense.  Except as otherwise set forth in this Section 6.2(a), under no circumstances shall Soligenix (A) file, attempt to file, or assist anyone else in filing, or attempting to file, any Patent application, either in the United States or elsewhere, that claims or uses or purports to claim or use or relies for support upon an Invention owned by Intrexon, (B) use, attempt to use, or assist anyone else in using or attempting to use, the Intrexon Know-How, Intrexon Materials, or any Confidential Information of Intrexon to support the filing of a Patent application, either in the United States or elsewhere, that contains claims directed to the Intrexon IP, Intrexon Materials, or the Intrexon Channel Technology, or (C) without prior approval of the IPC, file, attempt to file, or assist anyone else in filing, or attempting to file, any application for patent term extension or supplementary protection certificate for the Intrexon Patents, either in the United States or elsewhere, that relies upon the regulatory approval of a Soligenix Product.

 

(b)           Soligenix shall have the sole right, but not the obligation, to conduct and control the filing, prosecution and maintenance of any Patents claiming Inventions that are owned by Soligenix or its Affiliates and not assigned to Intrexon under Section 6.1(c) (“Soligenix Program Patents”).  At the reasonable request of Soligenix, Intrexon shall cooperate with Soligenix in connection with such filing, prosecution, and maintenance, at Soligenix’s expense.  Under no circumstances shall Intrexon (A) file, attempt to file, or assist anyone else in filing, or attempting to file, any Patent application, either in the United States or elsewhere, that claims or uses or purports to claim or use or relies for support upon an Invention owned by Soligenix, (B) use, attempt to use, or assist anyone else in using or attempting to use, the Soligenix Independent IP, any Inventions that are owned by Soligenix or its Affiliates and not assigned to Intrexon under Section 6.1(c) or any Confidential Information of Soligenix to support the filing of a Patent application, either in the United States or elsewhere, that contains claims directed to the Soligenix Independent IP or Inventions that are owned by Soligenix or its Affiliates and not assigned to Intrexon under Section 6.1(c).

 

  

28

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(c)           As used in this Section, “Prosecuting Party” means Intrexon in the case of Intrexon Patents and Soligenix in the case of Soligenix Program Patents.  The Prosecuting Party shall be entitled to use patent counsel selected by it and reasonably acceptable to the non-Prosecuting Party (including in-house patent counsel as well as outside patent counsel) for the prosecution of the Intrexon Patents and Soligenix Program Patents, as applicable.  The Prosecuting Party shall:

 

(i)           regularly provide the other Party in advance with reasonable information relating to the Prosecuting Party’s prosecution of Patents hereunder, including by providing copies of substantive communications, notices and actions submitted to or received from the relevant patent authorities and copies of drafts of filings and correspondence that the Prosecuting Party proposes to submit to such patent authorities (it being understood that, to the extent that any such information is readily accessible to the public, the Prosecuting Party may, in lieu of directly providing copies of such information to such other Party, provide such other Party with sufficient information that will permit such other Party to access such information itself directly);

 

(ii)          consider in good faith and consult with the non-Prosecuting Party regarding its timely comments with respect to the same; provided, however, that if, within fifteen (15) days after providing any documents to the non-Prosecuting Party for comment, the Prosecuting Party does not receive any written communication from the non-Prosecuting Party indicating that it has or may have comments on such document, the Prosecuting Party shall be entitled to assume that the non-Prosecuting Party has no comments thereon;

 

(iii)         consult with the non-Prosecuting Party before taking any action that would reasonably be expected to have a material adverse impact on the scope of claims within the Intrexon Patents and Soligenix Program Patents, as applicable.

 

  

29

  

 

REDACTED COPY

CONFIDENTIAL

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

 

6.3           Infringement of Patents by Third Parties.

 

(a)           Except as expressly provided in the remainder of this Section 6.3, Intrexon shall have the sole right to take appropriate action against any person or entity directly or indirectly infringing any Intrexon Patent (or asserting that an Intrexon Patent is invalid or unenforceable) (collectively, “Infringement”), either by settlement or lawsuit or other appropriate action.

 

(b)           Notwithstanding the foregoing, Soligenix shall have the first right, but not the obligation, to take appropriate action to enforce Product-Specific Program Patents against any Infringement that involves a commercially material amount of allegedly infringing activities in the Field (“Field Infringement”), either by settlement or lawsuit or other appropriate action.  If Soligenix exercises the foregoing right, Intrexon agrees to be named in any such action if required. If Soligenix fails to take the appropriate steps to enforce Product-Specific Program Patents against any Field Infringement within one hundred eighty (180) days of the date one Party has provided notice to the other Party pursuant to Section 6.3(g) of such Field Infringement, then Intrexon shall have the right (but not the obligation), at its own expense, to enforce Product-Specific Program Patents against such Field Infringement, either by settlement or lawsuit or other appropriate action.

 

(c)           With respect to any Field Infringement that cannot reasonably be abated through the enforcement of Product-Specific Program Patents pursuant to Section 6.3(b) but can reasonably be abated through the enforcement of Intrexon Patent(s) (other than the Product-Specific Program Patents), Intrexon shall be obligated to choose one of the following courses of action: (i) enforce one or more of the applicable Intrexon Patent(s) in a commercially reasonable manner against such Field Infringement, or (ii) [*****]. The determination of which Intrexon Patent(s) to assert shall be made by Intrexon in its sole discretion; provided, however, that Intrexon shall consult in good faith with Soligenix on such determination.  For the avoidance of doubt, Intrexon has no obligations under this Agreement to enforce any Intrexon Patents against, or otherwise abate, any Infringement that is not a Field Infringement.

 

(d)           In the event a Party pursues an action under this Section 6.3, the other Party shall reasonably cooperate with the enforcing Party with respect to the investigation and prosecution of any alleged, threatened, or actual Infringement, at the enforcing Party’s expense (except with respect to an action under Section 6.3(c), where all costs and expenses will be shared equally in accordance with terms thereof).

 

(e)           Soligenix shall not settle or otherwise compromise any action under this Section 6.3 in a way that diminishes the rights or interests of Intrexon outside the Field or adversely affects any Intrexon Patent without Intrexon’s prior written consent, which consent shall not be unreasonably withheld.  Intrexon shall not settle or otherwise compromise any action under this Section 6.3 in a way that diminishes the rights or interests of Soligenix in the Field or adversely affects any Intrexon Patent with respect to the Field without Soligenix’s prior written consent, which consent shall not be unreasonably withheld.

 

  

30

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(f)           Except as otherwise agreed to by the Parties in writing, any settlements, damages or other monetary awards recovered pursuant to a suit, proceeding, or action brought pursuant to Section 6.3 will be allocated first to the costs and expenses of the Party controlling such action, and second, to the costs and expenses (if any) of the other Party (to the extent not otherwise reimbursed), and any remaining amounts (the “Recovery”) will be shared by the Parties as follows:  In any action initiated by Intrexon pursuant to Section 6.3(a) that does not involve Field Infringement, or in any action initiated by Intrexon pursuant to Section 6.3(b), Intrexon shall retain one hundred percent (100%) of any Recovery.  In any action initiated by Soligenix pursuant to Section 6.3(b), Soligenix shall retain one hundred percent (100%) of any Recovery, but such Recovery shall be shared with Intrexon as “Net Sales” under Section 5.4(a).  In any action initiated by Intrexon or Soligenix pursuant to Section 6.3(c), the Parties shall share the Recovery equally, the Parties shall bear the costs and expenses of such enforcement equally, and such Recovery shall not be deemed to constitute “Net Sales” per the preceding sentence.

 

(g)           Soligenix shall promptly notify Intrexon in writing of any suspected, alleged, threatened, or actual Infringement of which it becomes aware, and Intrexon shall promptly notify Soligenix in writing of any suspected, alleged, threatened, or actual Field Infringement of which it becomes aware.

 

ARTICLE 7

 

Confidentiality

 

7.1           Confidentiality.  Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, each Party agrees that it shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement any Confidential Information disclosed to it by the other Party pursuant to this Agreement, except to the extent that the receiving Party can demonstrate by competent evidence that specific Confidential Information:

 

(a)           was already known to the receiving Party and can be demonstrated by written records, other than under an obligation of confidentiality, at the time of disclosure by the other Party;

 

(b)           was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party;

 

(c)           became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement;

 

(d)           was disclosed to the receiving Party, other than under an obligation of confidentiality to a Third Party, by a Third Party who had no obligation to the disclosing Party not to disclose such information to others; or

 

  

31

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(e)           was independently discovered or developed by the receiving Party without the use of Confidential Information belonging to the disclosing Party, as documented by the receiving Party’s written records.

 

The foregoing non-use and non-disclosure obligation shall continue (i) indefinitely, for all Confidential Information that qualifies as a trade secret under applicable law; or (ii) for the Term of this Agreement and for seven (7) years thereafter, in all other cases.

 

7.2           Authorized Disclosure.  Notwithstanding the limitations in this Article 7, either Party may disclose the Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the following instances:

 

(a)           complying with applicable laws or regulations or valid court orders, provided that the Party making such disclosure provides the other Party with reasonable prior written notice of such requirement, request or demand for disclosure and makes a reasonable effort to obtain, or to assist the other Party in obtaining, a protective order preventing or limiting the disclosure and/or requiring that the terms and conditions of this Agreement be used only for the purposes for which the law or regulation required, or for which the order was issued;

 

(b)           to regulatory authorities in order to seek or obtain approval to conduct Regulatory Trials, or to gain regulatory approval, of Soligenix Products or any products being developed by Intrexon or its other licensees and/or channel partners or collaborators, provided that the Party making such disclosure (i) provides the other Party with reasonable opportunity to review any such disclosure in advance and to suggest redactions or other means of limiting the disclosure of such other Party’s Confidential Information and (ii) does not unreasonably reject any such suggestions;

 

(c)           disclosure to investors and potential investors, acquirers, or merger candidates who agree to maintain the confidentiality of such information, provided that such disclosure is used solely for the purpose of evaluating such investment, acquisition, or merger (as the case may be);

 

(d)           disclosure on a need-to-know basis to Affiliates, licensees, sublicensees, employees, consultants or agents (such as CROs or clinical investigators) who agree to be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Article 7; and

 

(e)           disclosure of the terms of this Agreement by Intrexon to collaborators and other channel partners or collaborators who agree to be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Article 7.

 

  

32

  

 

REDACTED COPY

CONFIDENTIAL

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

 

7.3           Publicity; Publications.  The Parties agree that the public announcement of the execution of this Agreement and the Equity Agreement shall be substantially in the form of a press release and/or the filing of a Form 8-K by Soligenix, which shall be mutually agreed to by the Parties.  Each Party will provide the other Party with the opportunity to review and comment, prior to submission or presentation, on external reports, publications and presentations (e.g., press releases, reports to government agencies, abstracts, posters, manuscripts and oral presentations) that refer to the Melioidosis Program or programs that are approved by the JSC.  For such reports, publications, and presentations, the disclosing Party will provide the other Party at least fifteen (15) calendar days for review of the proposed submission or presentation.  In the case of a Form 8-K filing, such shall be provided to Intrexon by Soligenix as soon as practicable prior to filing.  For reports and manuscripts, the disclosing Party will provide the other Party at least thirty (30) days for review of the report or manuscript.  The presenting Party will act in good faith to incorporate the comments of the other Party and shall, in any event, redact any Confidential Information of the other Party and cooperate with the other Party to postpone such submissions or presentations if necessary to provide the other Party with sufficient time to prepare and file any related Patent applications before the submission or presentation occurs, as appropriate.

 

7.4           Terms of the Agreement.  Each Party shall treat the terms of this Agreement as the Confidential Information of other Party, subject to the exceptions set forth in Section 7.2.  Notwithstanding the foregoing, each Party acknowledges that the other Party may be obligated to file a copy of this Agreement with the SEC, either as of the Effective Date or at some point during the Term.  Each Party shall be entitled to make such a required filing, provided that it requests confidential treatment of certain commercial terms and sensitive technical terms hereof to the extent such confidential treatment is reasonably available to it.  In the event of any such filing, the filing Party shall provide the other Party with a copy of the Agreement marked to show provisions for which the filing Party intends to seek confidential treatment and shall reasonably consider and incorporate the other Party’s comments thereon to the extent consistent with the legal requirements governing redaction of information from material agreements that must be publicly filed.  The other Party shall promptly provide any such comments.

 

7.5           Proprietary Information and Operational Audits.

 

(a)           For the purpose of confirming compliance with the Field-limited licenses granted in Article 3, the diligence obligations of Article 4, and the confidentiality obligations under Article 7, Soligenix acknowledges that Intrexon’s authorized representative(s), during regular business hours may (i) examine and inspect Soligenix’s facilities and (ii) inspect all data and work products relating to this Agreement, subject to restrictions imposed by applicable laws.  Any examination or inspection hereunder shall require five (5) business days written notice from Intrexon to Soligenix.  Soligenix will make itself and the pertinent employees and/or agents available, on a reasonable basis, to Intrexon for the aforementioned compliance review.

 

(b)           For the purpose of confirming compliance with the diligence obligations of Section 4.5, and the confidentiality obligations under Article 7, Intrexon acknowledges that Soligenix authorized representative(s), during regular business hours may (i) examine and inspect Intrexon’s facilities and (ii) inspect all data and work products relating to this Agreement.  Any examination or inspection hereunder shall require five (5) business days written notice from Soligenix to Intrexon.  Intrexon will make itself and the pertinent employees and/or agents available, on a reasonable basis, to Soligenix for the aforementioned compliance review.

 

  

33

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(c)           In view of the Intrexon Confidential Information, Intrexon Know-How, and Intrexon Materials transferred to Soligenix hereunder, Intrexon from time-to-time, but no more than quarterly, may request that Soligenix confirm the status of the Intrexon Materials at Soligenix (i.e. how much used, how much shipped, to whom and any unused amounts destroyed (by whom, when) as well as any amounts returned to Intrexon or destroyed).  Within ten (10) business days of Soligenix’s receipt of any such written request, Soligenix shall provide the written report to Intrexon.

 

7.6           Intrexon Commitment.  Intrexon shall use reasonable efforts to obtain an agreement with its other licensees and channel partners or collaborators to enable Soligenix to disclose confidential information of such licensees and channel partners or collaborators to regulatory authorities in order to seek or obtain approval to conduct Regulatory Trials, or to gain regulatory approval of, Soligenix Products, in a manner consistent with the provisions of Section 7.2(b).

 

ARTICLE 8

 

Representations And Warranties

 

8.1           Representations and Warranties of Soligenix.  Soligenix hereby represents and warrants to Intrexon that, as of the Effective Date:

 

(a)           Corporate Power.  Soligenix is duly organized and validly existing under the laws of Delaware and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof.

 

(b)           Due Authorization.  Soligenix is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person executing this Agreement on Soligenix’s behalf has been duly authorized to do so by all requisite corporate action.

 

(c)           Binding Agreement.  This Agreement is a legal and valid obligation binding upon Soligenix and enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting creditors’ rights, and subject to general equity principles and to limitations on availability of equitable relief, including specific performance.  The execution, delivery and performance of this Agreement by Soligenix does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound.  Soligenix is aware of no action, suit or inquiry or investigation instituted by any governmental agency which questions or threatens the validity of this Agreement.

 

  

34

  

 

REDACTED COPY

CONFIDENTIAL

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

 

8.2           Representations and Warranties of Intrexon.  Intrexon hereby represents and warrants to Soligenix that, as of the Effective Date:

 

(a)           Corporate Power.  Intrexon is duly organized and validly existing under the laws of Virginia and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof.

 

(b)           Due Authorization.  Intrexon is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person executing this Agreement on Intrexon’s behalf has been duly authorized to do so by all requisite corporate action.

 

(c)           Binding Agreement.  This Agreement is a legal and valid obligation binding upon Intrexon and enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting creditors’ rights, and subject to general equity principles and to limitations on availability of equitable relief, including specific performance.  The execution, delivery and performance of this Agreement by Intrexon does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound.  Intrexon is aware of no action, suit or inquiry or investigation instituted by any governmental agency which questions or threatens the validity of this Agreement

 

(d)           Third Party Licenses.  Except as previously disclosed by Intrexon to Soligenix, as of the Effective Date there are no material terms and conditions under any relevant sublicenses requiring disclosure to Soligenix under Section 3.9(e).

 

(e)           Additional Intellectual Property Representations.

 

(i)           Intrexon possesses sufficient rights to enable Intrexon to grant all rights and licenses it purports to grant to Soligenix with respect to the Intrexon Patents under this Agreement;

 

(ii)          The Intrexon Patents existing as of the Effective Date constitute all of the Patents Controlled by Intrexon as of such date that are necessary for the development, manufacture and Commercialization of Soligenix Products;

 

(iii)         Intrexon has not granted, and during the Term Intrexon will not grant, any right or license, to any Third Party under the Intrexon IP that conflicts with the rights or licenses granted or to be granted to Soligenix hereunder;

 

(iv)         There is no pending litigation, and Intrexon has not received any written notice of any claims or litigation, seeking to invalidate or otherwise challenge the Intrexon Patents or Intrexon’s rights therein;

 

  

35

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(v)          None of the Intrexon Patents is subject to any pending re-examination, opposition, interference or litigation proceedings;

 

(vi)         All of the Intrexon Patents have been filed and prosecuted in accordance with all applicable laws and have been maintained, with all applicable fees with respect thereto (to the extent such fees have come due) having been paid;

 

(vii)        Intrexon has entered into agreements with each of its current and former officers, employees and consultants involved in research and development work, including development of Intrexon’s products and technology providing Intrexon, to the extent permitted by law, with title and ownership to patents, patent applications, trade secrets and inventions conceived, developed, reduced to practice by such person, solely or jointly with other of such persons, during the period of employment or contract by Intrexon (except where the failure to have entered into such an agreement would not have a material adverse effect on the rights granted to Soligenix herein), and Intrexon is not aware that any of its employees or consultants is in material violation thereof;

 

(viii)       To Intrexon’s knowledge, there is no infringement, misappropriation or violation by third parties of any Intrexon Channel Technology or Intrexon IP in the Field;

 

(ix)          There is no pending or, to Intrexon’s knowledge, threatened action, suit, proceeding or claim by others against Intrexon that Intrexon infringes, misappropriates or otherwise violates any intellectual property or other proprietary rights of others in connection with the use of the Intrexon Channel Technology or Intrexon IP, and Intrexon has not received any written notice of such claim;

 

(x)          To Intrexon’s knowledge, no employee of Intrexon is the subject of any claim or proceeding involving a violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, non-disclosure agreement or any restrictive covenant to or with a former employer (A) where the basis of such violation relates to such employee’s employment with Intrexon or actions undertaken by the employee while employed with Intrexon and (B) where such violation is relevant to the use of the Intrexon Channel Technology in the Field;

 

(xi)          None of the Intrexon Patents owned by Intrexon or its Affiliates, and, to Intrexon’s knowledge, the Intrexon Patents licensed to Intrexon or its Affiliates, have been adjudged invalid or unenforceable by a court of competent jurisdiction or applicable government agency, in whole or in part, and there is no pending or, to Intrexon’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intrexon Patents; and

 

  

36

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(xii)         Except as otherwise disclosed in writing to Soligenix, Intrexon:  (A) is in material compliance with all statutes, rules or regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product that is under development, manufactured or distributed by Intrexon in the Field (“Applicable Laws”); (B) has not received any FDA Form 483, notice of adverse finding, warning letter, untitled letter or other correspondence or notice from the United States Food and Drug Administration (the “FDA”) or any other federal, state, local or foreign governmental or regulatory authority alleging or asserting material noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”), which would, individually or in the aggregate, result in a material adverse effect; (C) possesses all material Authorizations necessary for the operation of its business as described in the Field and such Authorizations are valid and in full force and effect and Intrexon is not in material violation of any term of any such Authorizations; and (D) since January 1, 2011, (1) has not received notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from the FDA or any other federal, state, local or foreign governmental or regulatory authority or third party alleging that any product operation or activity is in material violation of any Applicable Laws or Authorizations and has no knowledge that the FDA or any other federal, state, local or foreign governmental or regulatory authority or third party is considering any such claim, litigation, arbitration, action, suit investigation or proceeding; (2) has not received notice that the FDA or any other federal, state, local or foreign governmental or regulatory authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any material Authorizations and has no knowledge that the FDA or any other federal, state, local or foreign governmental or regulatory authority is considering such action; (3) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were materially complete and correct on the date filed (or were corrected or supplemented by a subsequent submission); and (4) has not, either voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert, post sale warning, letters to customers, or other notice or action relating to the alleged lack of safety or efficacy of any product or any alleged product defect or violation and, to Intrexon’s knowledge, no third party has initiated, conducted or intends to initiate any such notice or action.

 

except, in each of (ix) through (xii), for any instances which would not, individually or in the aggregate, result in a material adverse effect on the rights granted to Soligenix hereunder or Intrexon’s ability to perform its obligations hereunder.

 

8.3           Warranty Disclaimer.  EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS ARTICLE 8 OR IN THE EQUITY AGREEMENT, EACH PARTY HEREBY DISCLAIMS ANY AND ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

  

37

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 9

 

Indemnification

 

9.1           Indemnification by Intrexon.  Intrexon agrees to indemnify, hold harmless, and defend Soligenix and its Affiliates and their respective directors, officers, employees, and agents (collectively, the “Soligenix Indemnitees”) from and against any and all liabilities, damages, costs, expenses, or losses (including reasonable legal expenses and attorneys’ fees) (collectively, “Losses”) resulting from any claims, suits, actions, demands, or other proceedings brought by a Third Party (collectively, “Claims”) to the extent arising from (a) the negligence or willful misconduct of Intrexon or any of its Affiliates, or their respective employees or agents, (b) the use, handling, storage or transport of Intrexon Materials by or on behalf of Intrexon or its Affiliates, licensees (other than Soligenix) or sublicensees; or (c) breach by Intrexon of any representation, warranty or covenant in this Agreement.  Notwithstanding the foregoing, Intrexon shall not have any obligation to indemnify the Soligenix Indemnitees to the extent that a Claim arises from (i) the negligence or willful misconduct of Soligenix or any of its Affiliates, licensees, or sublicensees, or their respective employees or agents; or (ii) a breach by Soligenix of a representation, warranty, or covenant of this Agreement.

 

9.2           Indemnification by Soligenix.  Soligenix agrees to indemnify, hold harmless, and defend Intrexon, its Affiliates and Third Security, and their respective directors, officers, employees, and agents (and any Third Parties which have licensed to Intrexon intellectual property rights within Intrexon IP on or prior to the Effective Date, to the extent required by the relevant upstream license agreement) (collectively, the “Intrexon Indemnitees”) from and against any Losses resulting from Claims, to the extent arising from any of the following:  (a) the negligence or willful misconduct of Soligenix or any of its Affiliates or their respective employees or agents; (b) the use, handling, storage, or transport of Intrexon Materials by or on behalf of Soligenix or its Affiliates, licensees, or sublicensees; (c) breach by Soligenix of any material representation, warranty or covenant in this Agreement; or (d) the design, development, manufacture, regulatory approval, handling, storage, transport, distribution, sale or other disposition of any Soligenix Product by or on behalf of Soligenix or its Affiliates, licensees, or sublicensees.  Notwithstanding the foregoing, Soligenix shall not have any obligation to indemnify the Intrexon Indemnitees to the extent that a Claim arises from (i) the negligence or willful misconduct of Intrexon or any of its Affiliates, or their respective employees or agents; or (ii) a breach by Intrexon of a representation, warranty, or covenant of this Agreement.

 

9.3           Product Liability Claims.  Notwithstanding the provisions of Section 9.2, any Losses arising out of any Third Party claim, suit, action, proceeding, liability or obligation involving any actual or alleged death or bodily injury arising out of or resulting from the development, manufacture or Commercialization of any Soligenix Products for use or sale in the Field, to the extent that such Losses exceed the amount (if any) covered by the applicable Party’s product liability insurance (“Excess Product Liability Costs”), shall be paid by [*****], except to the extent such Losses arise out of any Third-Party Claim based on the gross negligence or willful misconduct of a Party, its Affiliates, or its Affiliates’ sublicensees, or any of the respective officers, directors, employees and agents of each of the foregoing entities, in the performance of obligations or exercise of rights under this Agreement.

 

  

38

  

 

REDACTED COPY

CONFIDENTIAL

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

 

9.4           Control of Defense.  As a condition precedent to any indemnification obligations hereunder, any entity entitled to indemnification under this Article 9 shall give written notice to the indemnifying Party of any Claims that may be subject to indemnification, promptly after learning of such Claim.  If such Claim falls within the scope of the indemnification obligations of this Article 9, then the indemnifying Party shall assume the defense of such Claim with counsel reasonably satisfactory to the indemnified Party.  The indemnified Party shall cooperate with the indemnifying Party in such defense.  The indemnified Party may, at its option and expense, be represented by counsel of its choice in any action or proceeding with respect to such Claim.  The indemnifying Party shall not be liable for any litigation costs or expenses incurred by the indemnified Party without the indemnifying Party’s written consent, such consent not to be unreasonably withheld.  The indemnifying Party shall not settle any such Claim if such settlement (a) does not fully and unconditionally release the indemnified Party from all liability relating thereto or (b) adversely impacts the exercise of the rights granted to the indemnified Party under this Agreement, unless the indemnified Party otherwise agrees in writing.

 

9.5           Insurance.  Immediately prior to, and during marketing of Soligenix Products, Soligenix shall maintain in effect and good standing a product liability insurance policy issued by a reputable insurance company in amounts considered standard for the industry.  Immediately prior to, and during the conduct of any clinical trials, Soligenix shall maintain in effect and good standing a clinical trials liability insurance policy issued by a reputable insurance company in amounts considered standard for the industry.  At Intrexon’s reasonable request, Soligenix shall provide Intrexon with all details regarding such policies, including without limitation copies of the applicable liability insurance contracts.  Soligenix shall use reasonable efforts to include Intrexon as an additional insured on any such policies.

 

ARTICLE 10

 

Term; Termination

 

10.1        Term.  The term of this Agreement shall commence upon the Effective Date and shall continue until terminated pursuant to Section 10.2 or 10.3 (the “Term”).

 

10.2        Termination for Material Breach; Termination Under Section 4.5(b)

 

(a)           Either Party shall have the right to terminate this Agreement upon written notice to the other Party if the other Party commits any material breach of this Agreement that such breaching Party fails to cure within sixty (60) days following written notice from the nonbreaching Party specifying such breach; provided, however, that if Soligenix commits any breach of the provisions of Section 4.10 of this Agreement, Intrexon shall have the right to terminate this Agreement if Soligenix fails after notice from Intrexon to cure such breach within thirty (30) days following written notice thereof.

 

  

39

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(b)           Intrexon shall have the right to terminate this Agreement, at its sole discretion, if any necessary shareholder, member, exchange, and/or board of director approvals of Soligenix have not been obtained, and the Technology Access Fee Shares (as defined in the Equity Agreement) have not been issued, within the time frames set forth in the Equity Agreement.

 

(c)           Intrexon shall have the right to terminate this Agreement under the circumstances set forth in Section 4.5(b) upon written notice to Soligenix, such termination to become effective sixty (60) days following such written notice unless Soligenix remedies the circumstances giving rise to such termination within such sixty (60) day period.

 

(d)            Intrexon shall have the right to terminate this Agreement should Soligenix execute any purported assignment of this Agreement contrary to the prohibitions in Section 12.8, such termination occurring upon Intrexon providing written notice to Soligenix and becoming effective immediately upon such written notice.

 

(e)           In recognition of the need for Soligenix to raise capital necessary to carry out its obligations under this Agreement, notwithstanding the foregoing, during the twelve (12) month period commencing on the Effective Date, neither Party shall have the right to terminate this Agreement under Section 10.2(a) based on the failure of the other Party to use Diligent Efforts or to comply with any other diligence obligations hereunder (including without limitation Section 4.5), nor shall Intrexon have the right to terminate this Agreement under Section 10.2(c).

 

10.3        Termination by Soligenix.  Soligenix shall have the right to voluntarily terminate this Agreement in its entirety upon ninety (90) days written notice to Intrexon at any time.

 

10.4        Effect of Termination.  In the event of termination of this Agreement pursuant to Section 10.2 or Section 10.3, the following shall apply:

 

(a)           Retained Products.  Soligenix shall be permitted to continue the development and Commercialization in the Field of any product resulting from the Melioidosis Program that, at the time of termination, satisfies at least one of the following criteria (a “Retained Product”):

 

(i)           the particular product is a Soligenix Product that is being sold or has been sold within the past six (6) months by Soligenix (or, as may be permitted under this Agreement, its Affiliates and, if applicable, (sub)licensees) triggering revenue sharing payments therefor under Section 5.4(a) of this Agreement,

 

  

40

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(ii)          the particular product is a Soligenix Product that has received regulatory approval,

 

(iii)         the particular product is a Soligenix Product that has received a government procurement contract under an Emergency Use Authorization by the FDA or similar designation,

 

(iv)         the particular product is a Soligenix Product that is the subject of an application for regulatory approval in the Field that is pending before the applicable regulatory authority,

 

(v)          the particular product is a Soligenix Product that is the subject of an ongoing or completed Phase II clinical trial, or

 

(vi)         the particular product is a Soligenix Product that is the subject of a successful and completed animal efficacy study or an ongoing animal efficacy study, which study (if successful) would be sufficient under relevant government laws or regulations and absent human efficacy trials to permit sale of the particular product under an Emergency Use Authorization or other relevant statutory or regulatory exemptions that permit commercial sale absent a showing to the FDA of safety and effectiveness of the subject product through the conventional route of human clinical trials.

 

Such right to continue development and Commercialization shall be subject to Soligenix’s full compliance with the payment provisions in Article 5, a continuing obligation for Soligenix to use in accord with Sections 4.5(a) and 4.5(c) Diligent Efforts to develop and Commercialize any Retained Products, and all other provisions of this Agreement that survive termination.

 

(b)           Termination of Licenses.  Except as necessary for Soligenix to continue to obtain regulatory approval for, develop, use, manufacture and Commercialize the Retained Products in the Field as permitted by Section 10.4(a), all rights and licenses granted by Intrexon to Soligenix under this Agreement shall terminate and shall revert to Intrexon without further action by either Intrexon or Soligenix.  Soligenix’s license with respect to Retained Products shall be exclusive or non-exclusive, as the case may be, on the same terms as set forth in Section 3.1.

 

(c)           Reverted Products.  All Soligenix Products other than the Retained Products shall be referred to herein as the “Reverted Products.”  Soligenix shall immediately cease, and shall cause its Affiliates and, if applicable, (sub)licensees to immediately cease, all development and Commercialization of the Reverted Products, and Soligenix shall not use or practice, nor shall it cause or permit any of its Affiliates or, if applicable, (sub)licensees to use or practice, directly or indirectly, any Intrexon IP with respect to the Reverted Products.  Soligenix shall immediately discontinue making any representation regarding its status as a licensee or channel collaborator of Intrexon with respect to the Reverted Products.

 

  

41

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(d)           Intrexon Materials.  Soligenix shall promptly return, or at Intrexon’s request, destroy, any Intrexon Materials in Soligenix’s possession or control at the time of termination other than any Intrexon Materials necessary for the continued development, regulatory approval, use, manufacture and Commercialization of the Retained Products in the Field.

 

(e)           Licenses to Intrexon.  Soligenix is automatically deemed to grant to Intrexon a worldwide, fully paid, royalty-free, exclusive (even as to Soligenix and its Affiliates), irrevocable, license (with full rights to sublicense) under the Soligenix Termination IP, to make, have made, import, use, offer for sale and sell Reverted Products and to use the Intrexon Channel Technology, the Intrexon Materials, and/or the Intrexon IP in the Field, subject to any exclusive rights held by Soligenix in Reverted Products pursuant to Section 10.4(c).  The Parties shall also take such actions and execute such other instruments and documents as may be reasonably necessary to document such license to Intrexon.

 

(f)           Regulatory Filings.  Soligenix shall promptly assign to Intrexon, and will provide full copies of, all regulatory approvals and regulatory filings that relate specifically and solely to Reverted Products.  Soligenix shall also take such actions and execute such other instruments, assignments and documents as may be necessary to effect the transfer of rights thereunder to Intrexon.  To the extent that there exist any regulatory approvals and regulatory filings that relate both to Reverted Products and other products, Soligenix shall provide copies of the portions of such regulatory filings that relate to Reverted Products and shall reasonably cooperate to assist Intrexon in obtaining the benefits of such regulatory approvals with respect to the Reverted Products.

 

(g)           Data Disclosure.  Soligenix shall provide to Intrexon copies of the relevant portions of all material reports and data, including Regulatory Trial data and reports, obtained or generated by or on behalf of Soligenix or its Affiliates to the extent that they relate to Reverted Products, within sixty (60) days of such termination unless otherwise agreed, and Intrexon shall have the right to use any such Information in developing and Commercializing Reverted Products and to license any Third Parties to do so.

 

(h)           Third Party Licenses.  At Intrexon’s request, Soligenix shall promptly provide to Intrexon copies of all Third Party agreements under which Soligenix or its Affiliates obtained a license under Patents claiming inventions or know-how specific to or used or incorporated into the development, manufacture and/or Commercialization of the Reverted Products.  At Intrexon’s request such that Intrexon may Commercialize the Reverted Products, Soligenix shall promptly work with Intrexon to either, as appropriate (i) assign to Intrexon the Third Party agreement(s), or (ii) grant a sublicense (with an appropriate scope) to Intrexon under the Third Party agreement(s).  Thereafter Intrexon shall be fully responsible for all obligations due for its actions under the sublicensed or assigned Third Party agreements.  Notwithstanding the above, if Intrexon does not wish to assume any financial or other obligations associated with a particular Third Party agreement identified to Intrexon under this Section 10.4(h), then Intrexon shall so notify Soligenix and Soligenix shall not make such assignment or grant such sublicense (or cause it to be made or granted).

 

  

42

  

 

REDACTED COPY

CONFIDENTIAL

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

 

(i)           Remaining Materials.  At the request of Intrexon, Soligenix shall transfer to Intrexon all quantities of Reverted Product (including final products or work-in-process) in the possession of Soligenix or its Affiliates.  Soligenix shall transfer to Intrexon all such quantities of Reverted Products without charge, except that Intrexon shall pay the reasonable costs of shipping.

 

(j)           Third Party Vendors.  At Intrexon’s request, Soligenix shall promptly provide to Intrexon copies of all agreements between Soligenix or its Affiliates and Third Party suppliers, vendors, or distributors that relate to the supply, sale, or distribution of Reverted Products in the Territory.  At Intrexon’s request, Soligenix shall promptly:  (i) with respect to such Third Party agreements relating solely to the applicable Reverted Products and permitting assignment, immediately assign (or cause to be assigned), such agreements to Intrexon, and (ii) with respect to all other such Third Party agreements, Soligenix shall reasonably cooperate to assist Intrexon in obtaining the benefits of such agreements.  Soligenix shall be liable for any costs associated with assigning a Third Party agreement to Intrexon or otherwise obtaining the benefits of such agreement for Intrexon, to the extent such costs are directly related to Soligenix’s breach.  For the avoidance of doubt, Intrexon shall have no obligation to assume any of Soligenix’s obligations under any Third Party agreement.

 

(k)          Commercialization.  Intrexon shall have the right to develop and Commercialize the Reverted Products itself or with one or more Third Parties, and shall have the right, without obligation to Soligenix, to take any such actions in connection with such activities as Intrexon (or its designee), at its discretion, deems appropriate.

 

(l)           Confidential Information.  Each Party shall promptly return, or at the other Party’s request destroy, any Confidential Information of the other Party in such Party’s possession or control at the time of termination; provided, however, that each Party shall be permitted to retain (i) a single copy of each item of Confidential Information of the other Party in its confidential legal files for the sole purpose of monitoring and enforcing its compliance with Article 7, (ii) Confidential Information of the other Party that is maintained as archive copies on the recipient Party’s disaster recovery and/or information technology backup systems, or (iii) Confidential Information of the other Party necessary to exercise such Party’s rights in Retained Products (in the case of Soligenix) or Reverted Products (in the case of Intrexon). The recipient of Confidential Information shall continue to be bound by the terms and conditions of this Agreement with respect to any such Confidential Information retained in accordance with this Section 10.4(l).

 

10.5        Surviving Obligations.  Termination or expiration of this Agreement shall not affect any rights of either Party arising out of any event or occurrence prior to termination, including, without limitation, any obligation of Soligenix to pay any amount which became due and payable under the terms and conditions of this Agreement prior to expiration or such termination.  The following portions of this Agreement shall survive termination or expiration of this Agreement:  Sections 3.1 (as applicable with respect to 10.4(b)), 3.6, 4.10, 4.11, 5.6 through 5.9, 6.1, 6.2 (with subsection (c) surviving only to the extent relating to Intrexon Patents that are relevant to Retained Products that, to Intrexon’s knowledge, are being developed or Commercialized at such time, if any), 6.3 (as applicable with respect to Intrexon Patents relevant to Retained Products), 7.1, 7.2, 7.4, 7.5, 10.4, and 10.5; Articles 9, 11, and 12; and any relevant definitions in Article 1.  Further, Article 7 and Sections 4.5(a), 4.5(c), 4.12, 5.2 through 5.9, and 9.5 will survive termination of this Agreement to the extent there are applicable Retained Products.

 

  

43

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 11

 

Dispute Resolution

 

11.1        Disputes.  It is the objective of the Parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to litigation.  In the event of any disputes, controversies or differences which may arise between the Parties out of or in relation to or in connection with this Agreement, including, without limitation, any alleged failure to perform, or breach, of this Agreement (other than with regard to any issue wholly within the authority of a Committee as granted by this Agreement being finally resolved via casting vote at such Committee) , or any issue relating to the interpretation or application of this Agreement, then upon the request of either Party by written notice, the Parties agree to meet and discuss in good faith a possible resolution thereof, which good faith efforts shall include at least one in-person meeting between the Executive Officers of each Party.  If the matter is not resolved within thirty (30) days following the written request for discussions, either Party may then invoke the provisions of Section 11.2.

 

11.2        Arbitration.  Any dispute, controversy, difference or claim which may arise between the Parties, out of or in relation to or in connection with this Agreement (including, without limitation, arising out of or relating to the validity, construction, interpretation, enforceability, breach, performance, application or termination of this Agreement) that is not resolved pursuant to Section 11.1 shall, subject to Section 11.10, be settled by binding “baseball arbitration” as follows.  Either Party, following the end of the thirty (30) day period referenced in Section 11.1, may refer such issue to arbitration by submitting a written notice of such request to the other Party, with the arbitration to be held in the state where the other Party’s principal office is located (or some other place as may be mutually agreed by the Parties).  Promptly following receipt of such notice, the Parties shall meet and discuss in good faith and seek to agree on an arbitrator to resolve the issue, which arbitrator shall be neutral and independent of both Parties and all of their respective Affiliates, shall have significant experience and expertise in licensing and partnering agreements in the pharmaceutical and biotechnology industries, and shall have some experience in mediating or arbitrating issues relating to such agreements.  If the Parties cannot agree on a single arbitrator within fifteen (15) days of request by a Party for arbitration, then each Party shall select an arbitrator meeting the foregoing criteria and the two (2) arbitrators so selected shall select within ten (10) days of their appointment a third arbitrator meeting the foregoing criteria.  Within fifteen (15) days after an arbitrator(s) is selected (in the case of the three-person panel, when the third arbitrator is selected), each Party will deliver to both the arbitrator(s) and the other Party a detailed written proposal setting forth its proposed terms for the resolution for the matter at issue (the “Proposed Terms” of the Party) and a memorandum (the “Support Memorandum”) in support thereof.  The Parties will also provide the arbitrator(s) a copy of this Agreement, as it may be amended at such time.  Within fifteen (15) days after receipt of the other Party’s Proposed Terms and Support Memorandum, each Party may submit to the arbitrator(s) (with a copy to the other Party) a response to the other Party’s Support Memorandum.  Neither Party may have any other communications (either written or oral) with the arbitrator(s) other than for the sole purpose of engaging the arbitrator or as expressly permitted in this Section 11.2; provided that, the arbitrator(s) may convene a hearing if the arbitrator(s) so chooses to ask questions of the Parties and hear oral argument and discussion regarding each Party’s Proposed Terms.  Within sixty (60) days after the arbitrator’s appointment, the arbitrator(s) will select one of the two Proposed Terms (without modification) provided by the Parties that he or she believes is most consistent with the intention underlying and agreed principles set forth in this Agreement.  The decision of the arbitrator(s) shall be final, binding, and unappealable.  For clarity, the arbitrator(s) must select as the only method to resolve the matter at issue one of the two sets of Proposed Terms, and may not combine elements of both Proposed Terms or award any other relief or take any other action.

 

  

44

  

 

REDACTED COPY

CONFIDENTIAL

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

 

11.3        Governing Law.  This Agreement shall be governed by and construed under the substantive laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

 

11.4        Award.  Any award to be paid by one Party to the other Party as determined by the arbitrator(s) as set forth above under Section 11.2 shall be promptly paid in United States dollars free of any tax, deduction or offset; and any costs, fees or taxes incident to enforcing the award shall, to the maximum extent permitted by law, be charged against the losing Party.  Each Party agrees to abide by the award rendered in any arbitration conducted pursuant to this Article 11, and agrees that, subject to the United States Federal Arbitration Act, 9 U.S.C. §§ 1-16, judgment may be entered upon the final award in any United States District Court located in New York and that other courts may award full faith and credit to such judgment in order to enforce such award.  The award shall include interest from the date of any damages incurred for breach of the Agreement, and from the date of the award until paid in full, at a rate fixed by the arbitrator(s).  With respect to money damages, nothing contained herein shall be construed to permit the arbitrator(s) or any court or any other forum to award consequential, incidental, special, punitive or exemplary damages.  By entering into this agreement to arbitrate, the Parties expressly waive any claim for consequential, incidental, special, punitive or exemplary damages.  The only damages recoverable under this Agreement are direct compensatory damages.

 

11.5        Costs.  Each Party shall bear its own legal fees.  The arbitrator(s) shall assess his or her costs, fees and expenses against the Party losing the arbitration.

 

  

45

  

 

REDACTED COPY

CONFIDENTIAL

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

 

11.6        Injunctive Relief.  Nothing in this Article 11 will preclude either Party from seeking equitable relief or interim or provisional relief from a court of competent jurisdiction, including a temporary restraining order, preliminary injunction or other interim equitable relief, concerning a dispute either prior to or during any arbitration if necessary to protect the interests of such Party or to preserve the status quo pending the arbitration proceeding.  Specifically, the Parties agree that a material breach by either Party of its obligations in Section 3.5 or Article 7 of this Agreement may cause irreparable harm to the other Party, for which damages may not be an adequate remedy.  Therefore, in addition to its rights and remedies otherwise available at law, including, without limitation, the recovery of damages for breach of this Agreement, upon an adequate showing of material breach of such Section 3.5 or Article 7, and without further proof of irreparable harm other than this acknowledgement, such non-breaching Party shall be entitled to seek (a) immediate equitable relief, specifically including, but not limited to, both interim and permanent restraining orders and injunctions, without bond, and (b) such other and further equitable relief as the court may deem proper under the circumstances.  For the avoidance of doubt, nothing in this Section 11.6 shall otherwise limit a breaching Party’s opportunity to cure a material breach as permitted in accordance with Section 10.2.

 

11.7        Confidentiality.  The arbitration proceeding shall be confidential and the arbitrator(s) shall issue appropriate protective orders to safeguard each Party’s Confidential Information.  Except as required by law, no Party shall make (or instruct the arbitrator(s) to make) any public announcement with respect to the proceedings or decision of the arbitrator(s) without prior written consent of the other Party.  The existence of any dispute submitted to arbitration, and the award, shall be kept in confidence by the Parties and the arbitrator(s), except as required in connection with the enforcement of such award or as otherwise required by applicable law.

 

11.8        Survivability.  Any duty to arbitrate under this Agreement shall remain in effect and be enforceable after termination of this Agreement for any reason.

 

11.9        Jurisdiction.  For the purposes of this Article 11, the Parties acknowledge their diversity and agree to accept the jurisdiction of any United States District Court located in New York for the purposes of enforcing or appealing any awards entered pursuant to this Article 11 and for enforcing the agreements reflected in this Article 11 and agree not to commence any action, suit or proceeding related thereto except in such courts.

 

11.10     Patent Disputes.  Notwithstanding any other provisions of this Article 11, and subject to the provisions of Section 6.2, any dispute, controversy or claim relating to the scope, validity, enforceability or infringement of any Intrexon Patents shall be submitted to a court of competent jurisdiction in the country in which such Patent was filed or granted.

 

  

46

  

 

REDACTED COPY

CONFIDENTIAL

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

 

ARTICLE 12

 

General Provisions

 

12.1        Use of Name.  No right, express or implied, is granted by this Agreement to either Party to use in any manner the name of the other or any other trade name or trademark of the other in connection with the performance of this Agreement, except that (a) either Party may use the name of the other Party as required by regulations and in press releases accompanying quarterly and annual earnings reports approved by the issuer’s Audit Committee of the Board of Directors, and (b) Soligenix may use the Intrexon Trademarks in accord with licenses and restrictions set forth herein.

 

12.2        LIMITATION OF LIABILITY.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES.  NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS PARAGRAPH IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER ARTICLE 9, OR DAMAGES AVAILABLE FOR BREACHES OF THE OBLIGATIONS SET FORTH IN ARTICLE 7.

 

12.3        Independent Parties.  The Parties are not employees or legal representatives of the other Party for any purpose.  Neither Party shall have the authority to enter into any contracts in the name of or on behalf of the other Party.  This Agreement shall not constitute, create, or in any way be interpreted as a joint venture, partnership, or business organization of any kind.

 

12.4        Notice.  All notices, including notices of address change, required or permitted to be given under this Agreement shall be in writing and deemed to have been given when delivered if personally delivered or sent by facsimile (provided that the party providing such notice promptly confirms receipt of such transmission with the other party by telephone), on the business day after dispatch if sent by a nationally-recognized overnight courier and on the third business day following the date of mailing if sent by certified mail, postage prepaid, return receipt requested. All such communications shall be sent to the address or facsimile number set forth below (or any updated addresses or facsimile number communicated to the other Party in writing):

 

	
If to Intrexon:

 

 

 

	
Intrexon Corporation

20358 Seneca Meadows Parkway

Germantown, MD  20876

Attention: Chief Executive Officer

Fax:  (301) 556-9901

	 	 
	
with a copy to:

	Intrexon Corporation 

20358 Seneca Meadows Parkway

Germantown, MD  20876

Attention:  Legal Department

Fax:  (301) 556-9902

 

  

47

  

 

REDACTED COPY

CONFIDENTIAL

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

 

	
If to Soligenix:

 

	
Soligenix, Inc.

29 Emmons Drive, Suite C-10

Princeton, NJ  08540

Attention:  Chief Executive Officer

Fax:  (609) 452-6467

 

12.5        Severability.  In the event any provision of this Agreement is held to be invalid or unenforceable, the valid or enforceable portion thereof and the remaining provisions of this Agreement will remain in full force and effect.

 

12.6        Waiver.  Any waiver (express or implied) by either Party of any breach of this Agreement shall not constitute a waiver of any other or subsequent breach.

 

12.7        Entire Agreement; Amendment.  This Agreement, including any exhibits attached hereto, constitute the entire, final, complete and exclusive agreement between the Parties and supersede all previous agreements or representations, written or oral, with respect to the subject matter of this Agreement (including any prior confidentiality agreement between the Parties).  All information of Intrexon or Soligenix to be kept confidential by the other Party under any prior confidentiality agreement, as of the Effective Date, shall be maintained as Confidential Information by such other Party under the obligations set forth in Article 7 of this Agreement.  This Agreement may not be modified or amended except in a writing signed by a duly authorized representative of each Party.

 

12.8        Non-assignability; Binding on Successors.  Any attempted assignment of the rights or delegation of the obligations under this Agreement shall be void without the prior written consent of the non-assigning or non-delegating Party; provided, however, that either Party may assign its rights or delegate its obligations under this Agreement without such consent (a) to an Affiliate of such Party or (b) to its successor in interest in connection with any merger, acquisition, consolidation, corporate reorganization, or similar transaction, or sale of all or substantially all of its assets, provided that such assignee agrees in writing to assume and be bound by the assignor’s obligations under this Agreement.  This Agreement shall be binding upon, and inure to the benefit of, the successors, executors, heirs, representatives, administrators and permitted assigns of the Parties.  Notwithstanding the foregoing, in the event that either Party assigns this Agreement to its successor in interest by way of merger, acquisition, consolidation, corporate reorganization, or similar transaction, or sale of all or substantially all of its assets (whether this Agreement is actually assigned or is assumed by such successor in interest or its affiliate by operation of law (e.g., in the context of a reverse triangular merger)), the intellectual property rights of such successor in interest or any of its Affiliates other than those licensed in this Agreement shall be automatically excluded from the rights licensed to the other Party under this Agreement.

 

  

48

  

 

REDACTED COPY

CONFIDENTIAL

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

 

12.9        Force Majeure.  Neither Party shall be liable to the other for its failure to perform any of its obligations under this Agreement, except for payment obligations, during any period in which such performance is delayed because rendered impracticable or impossible due to circumstances beyond its reasonable control, including without limitation earthquakes, governmental regulation, fire, flood, labor difficulties, civil disorder, acts of terrorism and acts of God, provided that the Party experiencing the delay promptly notifies the other Party of the delay.

 

12.10      No Other Licenses.  Neither Party grants to the other Party any rights or licenses in or to any intellectual property, whether by implication, estoppel, or otherwise, except to the extent expressly provided for under this Agreement.

 

12.11      Non-Solicitation. During the Term and for a period of one (1) year following the end of the Term, neither Soligenix nor Intrexon may directly or indirectly solicit in order to offer to employ, engage in any discussion regarding employment with, or hire any employee of the other Party or an individual who was employed by the other party within one (1) year prior to such solicitation, discussion, or hire, without the prior approval of such other Party.  General employment solicitations or advertisements shall not be considered direct or indirect solicitations, and are not prohibited under this Agreement.

 

12.12      Legal Compliance.  The Parties shall review in good faith and cooperate in taking such actions to ensure compliance of this Agreement with all applicable laws.

 

12.13      Counterparts.  This Agreement may be executed in any number of counterparts (including by facsimile, PDF, or other means of electronic communication), each of which taken together will constitute one and the same instrument, and any of the Parties hereto may execute this Agreement by signing any such counterpart.

 

[Remainder of page intentionally left blank.]

 

  

49

  

 

REDACTED COPY

CONFIDENTIAL

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

 

In Witness Whereof, the Parties hereto have duly executed this Exclusive Channel Collaboration Agreement.

 

	
Intrexon Corporation

 

By: /s/ Donald P. Lehr                                                                

 

Name: Donald P. Lehr

 

Title:   Chief Legal Officer

 

	
Soligenix, Inc.

 

By: /s/ Christopher J. Schaber                                                                 

 

Name: Christopher J. Schaber, Ph.D.

 

Title:   President and Chief Executive Officer

SIGNATURE PAGE FOR EXCLUSIVE CHANNEL COLLABORATION AGREEMENT

 

 

50

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]