Document:

EX-10.12

 Exhibit 10.12 
 ***Text Omitted and Filed Separately 
 with the Securities and Exchange
Commission. 
 Confidential Treatment Requested 
 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 240.24b-2. 

EXCLUSIVE LICENSE AGREEMENT 
 This Exclusive License Agreement (the “Agreement”; JHU Agreement Ref. No.: Al2062) is 
 BETWEEN: 
 UNIVERSITY OF VICTORIA INNOVATION AND DEVELOPMENT CORPORATION

 a corporation owned by the University of Victoria and having its principle office at R-Hut, 

McKenzie Ave, Victoria, BC, Canada, V8W 3W2 
 (hereinafter referred to as “IDC”) 
 AND 

THE JOHNS HOPKINS UNIVERSITY 
 a non-profit corporation duly incorporated under the laws of Maryland and having an office at 
 3400 N. Charles Street, Baltimore, Maryland 21218 USA 
 (hereinafter referred to as
“JHU”) 
 (and where IDC and JHU are hereinafter collectively referred to as the “Licensor”)

 OF THE FIRST PART 
 AND 
 PROTOX THERAPEUTICS INC 

a corporation having its principal office at 1210-885 West Georgia Street, 

Vancouver, BC, Canada, V6C 3E8 
 (hereinafter referred to as the “Licensee”) 
 OF THE SECOND PART

 (and where all three parties are hereinafter collectively together referred to as the “Parties”) 

 INDEX 

 

							
	 	 	 	  	Page	 
			
	 RECITALS
	 		  	 	3	  
			
	 ARTICLE I
	 	 – DEFINITIONS AND SCHEDULES
	  	 	3	  
			
	 ARTICLE II
	 	 – GRANT OF LICENSE
	  	 	5	  
			
	 ARTICLE III
	 	 – LICENSE FEES, ROYALTIES AND OTHER CONSIDERATION
	  	 	7	  
			
	 ARTICLE IV
	 	 – LICENSEE’S PERFORMANCE
	  	 	10	  
			
	 ARTICLE V
	 	 – AUDIT AND INSPECTION OF RECORDS
	  	 	10	  
			
	 ARTICLE VI
	 	 – CONFIDENTIAL INFORMATION
	  	 	11	  
			
	 ARTICLE VII
	 	 – WARRANTIES
	  	 	12	  
			
	 ARTICLE VIII
	 	 – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE
	  	 	13	  
			
	 ARTICLE IX
	 	 – ASSIGNMENT/CHANGE OF OWNERSHIP
	  	 	14	  
			
	 ARTICLE X
	 	 – TERMINATION AND EXPIRATION
	  	 	15	  
			
	 ARTICLE XI
	 	 – PATENT PROSECUTION AND LICENSEE COVENANTS
	  	 	16	  
			
	 ARTICLE XII
	 	 – GENERAL TERMS AND CONDITIONS
	  	 	17	  
		
	 SCHEDULE A – PATENT RIGHTS
	  	 	20	  
		
	 SCHEDULE B – PERFORMANCE REQUIREMENTS
	  	 	21	  
		
	 SCHEDULE C – LICENSEE PATENTS
	  			

  
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 RECITALS 
 WHEREAS, IDC is the University of Victoria’s (UVic’s) corporation for commercialization of intellectual property and discoveries; and 

WHEREAS, as a center for research and education, JHU is engaged in a wide variety of research and development activities related to new drug
technologies, but is without capacity to commercially develop, manufacture, and distribute any products or processes based on such technologies; and 
 WHEREAS, the Licensee is a British Columbia company engaged in the commercialization of drug related technologies; and 
 WHEREAS, IDC (and UVic), through its faculty member Dr. J. Thomas Buckley, and JHU, through its faculty members Drs. Samuel Denmeade and John Isaacs (Drs. Buckley, Denmeade and Isaacs shall be
collectively referred to as the “Inventors”), have engaged in research during the course of which they have developed a valuable invention entitled “Use of Proaerolysin Toxins Modified to Contain Tissue Specific Protease Activation
Sequences as Targeted Therapy for Cancer” (JHU-Ref. No.: 3887) (the “Technology”) and related know-how (the “Know-How”) which may be useful for the treatment, prevention and/or diagnosis of Benign Prostate
Hyperplasia and other non-cancer diseases and conditions of the prostate, and 
 WHEREAS, IDC and JHU have entered into an
Inter-Institutional Agreement, dated April 16, 2002 (the “Inter-Institutional Agreement”), pursuant to which IDC, on behalf of IDC and JHU, has responsibility to administer the filing and prosecution of patent applications for
the Technology and take the lead to identify a licensee and negotiate a license agreement on behalf of the Licensors (and where the agreement states JHU shall be made party to any license agreement, and that such a license shall only be by mutual
agreement of the Licensors); and 
 WHEREAS, the Licensee has previously licensed from the Licensor the right to use the Technology in
connection with the development of prostate cancer therapeutics, all in accordance with the terms of a License Agreement dated for reference as of the 30 day of September 2004, as amended on December 8, 2004 (the “Prostate Cancer
License Agreement”) attached as Schedule D to this Agreement; and 
 WHEREAS, the Licensee is desirous of obtaining an exclusive
license for the Technology for the development of therapeutics for Benign Prostate Hyperplasia and other non-cancer diseases and conditions of the prostate and wishes to make, have made, use, sell and have sold products and services based upon or
embodying said Technology; and 
 WHEREAS the Recitals form a part of this Agreement. 

NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants hereinafter set forth, the Parties hereby agree as follows:

 ARTICLE I – DEFINITIONS AND SCHEDULES 

 

	1.1	As used in this Agreement, the following terms shall have the definitions respectively assigned to them hereunder unless specified elsewhere in the Agreement or where
the subject matter or context otherwise requires: 

  

	 	(a)	“Accounting” means an accounting statement setting out in detail how the amount of Gross Revenue was determined. 

  
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	 	(b)	“Agreement” means this entire document and all Schedules attached hereto, which shall be read with and form a part of this Agreement including any
amendments made as described in Article 12.5 hereof. 

  

	 	(c)	“Inter-Institutional Agreement” means the agreement dated April 16, 2002 between IDC and JHU, pursuant to which IDC, on behalf of IDC and JHU, has
responsibility to administer the filing and prosecution of patent applications for the Technology as relates to the treatment of prostate cancer and, also, take the lead to identify a licensee and negotiate a license agreement on behalf of the
Licensors. 

  

	 	(d)	“Licensor” means IDC, JHU and any Affiliates of IDC and JHU. 

 

	 	(e)	“Licensee” means Protox Therapeutics Inc and any Affiliates. 

 

	 	(f)	“Confidential Information” means information of a confidential or proprietary nature provided by disclosing Party to recipient Party that has been
clearly identified by the disclosing Party as being confidential or proprietary at the time of disclosure by way of a marking, or if disclosed verbally, was reduced to writing by providing Party and marked confidential within thirty (30) days
of disclosure. 

  

	 	(g)	“Effective Date” means the date the last Party hereto has executed this Agreement 

 

	 	(h)	“herein”, “hereby”, “hereof”, “hereunder”, and similar expressions, when used in any Article, shall
be understood to relate to this Agreement as a whole and not merely to the Article in which they appear. 

  

	 	(i)	“Royalty and Other Consideration Payment Due Dates” means the last working day of March, June, September and December of each year during the term of
this Agreement. 

  

	 	(j)	“Patent Rights” means the patent applications listed in Schedule A based on U.S. Provisional # 60/314,613, filed on August 24, 2001, and
assigned to IDC and JHU and licensed to Licensee under the Prostate Cancer License Agreement, entitled “Use of Proaerolysin Toxins Modified to Contain Tissue Specific Protease Activation Sequences as Targeted Therapy for
Cancer” and the invention disclosed and claimed therein (“Invention”), and all continuations, continuations in part (as they claim the Invention), divisions and reissues based thereof, and any corresponding US,
Canadian or foreign patent applications, and any patents, or other equivalent foreign patent rights issuing, granted or registered thereon. 

  

	 	(k)	“Licensed Applications” means the use of the Patent Rights within the field of Benign Prostate Hyperplasia, Prostatitis, and other non-cancerous
prostate diseases or conditions of the prostate. 

  

	 	(l)	“Licensed Processes” means any processes claimed in the Patent Rights. 

 

	 	(m)	“Licensed Products” means any material, compositions, drug, gene therapy preparation or other product the manufacture, import, use or sale of which
would constitute, but for the license granted to Licensee pursuant to this Agreement, an infringement of a valid claim of the Patent Rights. 

  

	 	(n)	“Licensed Services” means the performance on behalf of a third party of any method or the manufacture of any product or the use of any product or
composition which would constitute, but for the license granted to Licensee pursuant to this Agreement, an infringement of a valid claim of the Patent Rights. 

 

	 	(o)	“Affiliate” of a Party means any corporation, company, partnership, joint venture or other entity, which controls, is controlled by or is under common
control with such Party. For purposes hereof, “control” shall mean the direct or indirect ownership of at least 50%. 

  

	 	(p)	“Sublicensee” shall mean any person or entity other than an Affiliate to which the Licensee has granted a sublicense under the terms of this Agreement.

  

	 	(q)	 “Gross Sales” shall mean all sales, revenues, receipts, monies, and the fair market value of any shares or other securities and all
other consideration directly or indirectly collected or received by way of cash, credit or other value received by the Licensee, any Sublicensee of the Licensee or an Affiliate derived from marketing, selling, distributing any Licensed
Products, Licensed Processes and/or Licensed Services, less sales taxes and custom duties applied to the sales of Licensed Product, Licensed Processes and/or Licensed Services. In the event Licensee manufactures Licensed Products and sells them
to a Sublicensee who makes the commercial sales of the Licensed Products, Gross Sales on Licensed Product sold 

  
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to the Sublicensee shall exclude Licensee’s actual costs of manufacturing the Licensed Products. Where any Gross Sales or revenues from an Affiliate or Sublicensee are derived from a country
other than Canada it shall be converted to the equivalent in Canadian dollars on the date the Licensee is deemed to have received such Gross Sales or revenues pursuant to the terms hereof at the rate of exchange set by the Bank of Montreal for
buying such currency. The amount of Canadian dollars pursuant to such conversion shall be included in Gross Sales. 

  

	 	(r)	“Other Consideration” shall mean any revenues or other consideration, excluding Gross Sales, received by the Licensee from any Sublicensee, from any
transaction, disposition or other dealing involving all or part of the Patent Rights or Licensed Products, Licensed Processes or Licensed Services, and where such revenues or other consideration may include, but are not limited to license signing or
other fees, milestone or bonus payments, consideration for equity, etc. Other Consideration also excludes monies and grants the Licensee receives from third parties to specifically conduct research and development (R&D) activities to advance the
Technology and to which the Licensee can demonstrate were directly expended for this reason. Where any Other Consideration or revenues from an Affiliate or Sublicensee are derived from a country other than Canada it shall be converted to the
equivalent in Canadian dollars on the date the Licensee is deemed to have received such Other Consideration or revenues pursuant to the terms hereof at the rate of exchange set by the Bank of Montreal for buying such currency. The amount of Canadian
dollars pursuant to such conversion shall be included in Other Consideration. 

  

	 	(s)	“Party” means the Licensee or Licensor as the context requires, and the “Parties” means the Licensee and Licensor. 

 

	 	(t)	“Major Market Country or Region” means the United States, Japan, European Union, France, Germany, United Kingdom, Italy or Spain.

  

	1.2	For the purposes of this Agreement, any reference to the “sale” of Licensed Products, Licensed Services, and/or Licensed Processes shall be interpreted to
include the “lease” of Licensed Products, Licensed Services, and/or Licensed Processes. 

  

	1.3	The following are the Schedules to this Agreement and are incorporated into and deemed to be a part of this Agreement. 

 

					
	Schedule A	    	-	  	Patent Rights
			
	Schedule B	    	-	  	Performance Requirements
			
	Schedule C	    	-	  	Prostate Cancer License Agreement

 ARTICLE II – GRANT OF LICENSE 

 

	2.1	 The Licensor hereby grants to the Licensee: (i) an exclusive right and license to use the Patent Rights, Technology and a non-exclusive right to
use the Know-How with the right to sublicense in accordance with Article 2, subject to the rights retained by the U.S. government, if any, (see 35 U.S.C. § 200 et seq. including regulations pertaining thereto, 37 CFR Part 401, and
federal policies governing the transfer of research materials), for the purposes of developing, making, having made, using, having used, selling, having sold, offering for sale, importing and exporting Licensed Products, Licensed Processes and
Licensed Services world-wide in the area of the Licensed Application; and (ii) a non-exclusive license to conduct research on the Technology covered under the Patent Rights and to use Know-How for both (i) and (ii) for the term and in
accordance with the terms and conditions of this Agreement, and further subject to the retained right of Licensor to make, have made, provide and use for its and the Johns Hopkins Health Systems’ purposes Licensed Products, Licensed Processes
and Licensed Services, including 

  
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the ability to distribute any biological material disclosed and/or claimed in Patent Rights for non-profit academic research to non-commercial entities as is customary in the scientific
community. 

  

	2.2	Failure by the Licensee to make use of the Patent Rights in accordance with the terms and conditions of this Agreement, specifically the commercialization of the
Technology, may result in termination of this Agreement. 

  

	2.3	The Licensee acknowledges and agrees that the Licensor retains all rights, title and interest in the Technology and Patent Rights, including all intellectual
property and intellectual property rights, such as any patents, pending patents, industrial design, trademarks, trade secrets, copyright, integrated circuit topography, plant breeder rights and further agrees that this Agreement does not
give the Licensee any rights to or interest in such Technology or Patent Rights except the right to use such Technology and Patent Rights in accordance with the terms of this Agreement. 

 

	2.4	The Licensor may register a financing statement regarding this Agreement under the Personal Property Security Act of British Columbia and/or under similar
legislation in those jurisdictions in which the Licensee carries on business and/or has its chief place of business. The Licensee will pay for all costs associated with such registrations. The Licensee shall give notice to the Licensor if it is
carrying on business and/or locates its chief place of business in a jurisdiction outside of British Columbia. If the Licensor has registered a financing statement, the Licensee shall, upon the request of the Licensor, file within 15 days of
any change in jurisdiction, the appropriate documents in the Personal Property Registries or similar registries outside of British Columbia to document the change in jurisdiction and shall provide the Licensor a copy of the verification statement
regarding such filing 15 days after receiving the verification statement. The Licensee shall pay for all costs associated with such registrations. 

  

	2.5	The Licensee agrees that during the term of this Agreement and thereafter, it will not dispute or contest, directly or indirectly, the validity of the Licensor’s
rights to the Patent Rights nor counsel or assist any other party to do the same, unless compelled by due process of law. 

  

	2.6	The term of this Agreement shall commence on the Effective Date of the Agreement and continue, in each country, until the date of expiration of the last patent or
patent claim included within Patent Rights in that country or, if no patents issue, then for a term of twenty (20) years from the Effective Date of the Agreement. 

 

	2.7	In the event that the Licensee sublicenses its rights to the Patent Rights in whole or in part, the Licensee shall provide to the Licensor a copy of each sublicense
granted within 30 days of it being signed by all parties to the sublicense. As a condition of its validity and enforceability, each sublicense agreement shall (a) incorporate by reference the terms and conditions of this Agreement,
(b) be consistent with the terms and conditions and limitations of this Agreement, (c) prohibit Sublicensee’s further sublicense of the rights delivered hereunder except to a distributor, (d) name Licensor as an intended third
party beneficiary of the obligations of Sublicensee without imposition of obligation or liability on the part of Licensor or Inventors to the Sublicensee, (e) specifically incorporate Articles Representation by Licensor, Indemnification, Use of
Name, Product Liability into the body of the sublicense agreement, and cause the terms therein to have the same meaning as in the this Agreement. To the extent that any terms, conditions or limitations of any sublicense agreement are
inconsistent with this Agreement, those terms, conditions and limitations are null and void against Licensor. 

  

	2.8	All rights not expressly granted by the Licensor to the Licensee under this Agreement are retained by the Licensor. This license granted under this Agreement is
granted only to the Licensee. 

  
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 ARTICLE III – LICENSE FEES, ROYALTIES AND OTHER CONSIDERATION 

 

	3.1	In consideration of the grant of license under this Agreement, the Licensee shall pay an initial license fee of forty five thousand dollars (CAN $45,000) to the
Licensor within thirty (30) days of the Effective Date 

  

	3.2	 The Licensee shall pay to the Licensor an annual maintenance fee of [*...***...](CAN $[...***...]) on each anniversary date of the Effective Date of this Agreement.

  

	3.3	The Licensee shall pay the Licensor during the term of this Agreement, in the manner designated herein, milestone royalty payments for the development of each Licensed
Product or Licensed Service for use in the Licensed Applications by the Licensee as follows: 

  

	 	i.	For Benign Prostatic Hyperplasia 

  

	 	(a)	A milestone payment of [...***...] dollars (CAN $[...***...]) upon completion of [...***...]. 

 

	 	(b)	A milestone payment of [...***...] dollars (CAN $[...***...]) upon completion of [...***...]. 

 

	 	(c)	A milestone payment of [...***...] dollars (CAN $[...***...]) upon completion of [...***...]. 

 

	 	(d)	A one-time milestone payment of [...***...] dollars (CAN $[...***...]) upon [...***...]. 

 

	 	ii.	For each of a second and third therapeutic indication selected by the Licensee from the Licensed Applications 

 

	 	(a)	A milestone payment of [...***...] dollars (CAN $[...***...]) upon [...***...]. 

 

	 	(b)	A milestone payment of [...***...] dollars (CAN $[...***...]) upon [...***...]. 

 

	 	(c)	A one-time milestone payment of [...***...] dollars (CAN $[...***...]) upon [...***...]. 

 

	 	iii.	No milestone payments will be due for fourth or subsequent therapeutic indications. 

 Milestone payments shall not be credited against royalties on sales of Licensed Products, Licensed Processes or Licensed Services and shall be due to Licensor within thirty (30) days of
the occurrence of each milestone, except that the milestone in Section 3.3 (a) for [...***...] 
  

 
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 [...***...] shall be due to Licensor within [*
...***...]. 
 For clarification, completion of [...***...]. 
 For further clarification,
only one milestone payment shall be payable with respect to each [...***...], even if [...***...], and only one milestone payment shall be payable with respect to [...***...], even if [...***...]. 

The Licensee shall pay to the Licensor a running royalty of [...***...] percent ([...***...]%) of Gross Sales made by the
Licensee, an Affiliate, and/or Sublicensees for each Licensed Product(s) or Licensed Process(es) sold, and for each Licensed Service(s) provided by the Licensee, an Affiliate, and/or Sublicensee during the term of this Agreement. 

 

	3.4	The payment of all running royalties are due and payable to Licensor within 45 days of each respective Royalty and Other Consideration Payment Due Date and are to be
calculated with respect to the Gross Sales in the three month period immediately preceding the applicable Royalty and Other Consideration Payment Due Date. 

 

	3.5	Any transaction, disposition or other dealing involving all or part of the Patent Rights or Licensed Products, Licensed Processes or Licensed Services or sublicensing,
between the Licensee and another person that is not made at fair market value is deemed to have been made at fair market value, and the fair market value of the transaction, disposition, or other dealing will be added to and deemed part of the
Gross Sales as the case may be and will be included in the calculation of royalties under this Agreement. 

  

	3.6	In addition to the running royalties payable with respect to Gross Sales under Article 3.4, the Licensee shall pay to the Licensor [...***...] percent
([...***...]%) of any Other Consideration received by the Licensee from a Sublicensee or an Affiliate. 

  

	3.7	Other Consideration does not include revenues or consideration associated with Gross Sales (as identified in Article 3.4). Similar to Article 3.5, the payment of any
Other Consideration is due and payable to the Licensor within 45 days of each respective Royalty and Other Consideration Payment Due Date, and is to be calculated with respect to the three month period immediately preceding the applicable Royalty
and Other Consideration Payment Due Date. 

  

	3.8	Licensed Products, Licensed Processes and/or Licensed Services are deemed to have been sold or provided by the Licensee and included in Gross Sales when paid for. The
Licensee is deemed to have received Gross Sales or Other Consideration from Affiliates or Sublicensees when the Gross Sales or Other Consideration is received by the Licensee from an Affiliate or a Sublicensee. 

 

	3.9	License signing, maintenance, and other fees, running royalties, milestone payments, equity, or Other Consideration received by the Licensor from the Licensee are not
refundable, in whole or in part, under any circumstances. 

  

 
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	3.10	In the event that Licensee enters into a sublicense agreement that encompasses both rights under this Agreement and rights under the Prostate Cancer License
Agreement (the “Composite Sublicense Agreement”), the following shall govern the payments of Other Consideration by the Licensee to the Licensor: 

 

	 	i.	If the Composite Sublicense Agreement divides or apportions the consideration payable by the Sublicensee into an amount or percentage for Licensed Applications under
this Agreement and an amount or percentage for Licensed Applications under the Prostate Cancer License Agreement, then the Licensee shall pay the Licensor according to the following formula: 

(Amount of Other Consideration apportioned for Licensed Applications under this Agreement X [*
...***...]% + (Amount of Other Consideration apportioned for Licensed Applications under the Prostate Cancer
License Agreement X [...***...]%) 
  

	 	ii.	For example, if a Composite Sublicense Agreement provides for an upfront payment of $[...***...] received from a Sublicensee that is apportioned
$[...***...] or [...***...]% for BPH (a Licensed Application under this Agreement) and $[...***...] or [...***...]% for prostate Cancer (a Licensed Application under the Prostate Cancer License Agreement, then the amount
payable by the Licensee to the Licensor is: 

 ($[...***...] X [...***...]%) + ($[...***...] X
[...***...]%) = $[...***...] 
  

	 	iii.	If the Composite Sublicense Agreement does not divide or apportion the consideration payable by the Sublicensee into an amount or a percentage for Licensed Applications
under this Agreement and an amount or percentage for Licensed Applications under the Prostate Cancer License Agreement, then the parties shall negotiate in good faith to agree upon a composite rate for such Other Consideration, which composite
rate shall be no higher than [...***...] percent ([...***...]%) of the amount of Other Consideration received from the Sublicensee (the rate for Other Consideration in the Prostate Cancer License Agreement). 

 

	3.11	In the event that the Licensee or an Affiliate or Sublicensee is required to integrate other products or processes (for which it has to pay royalties to a bona fide
arms length third party) with the Licensed Products, Licensed Processes or Licensed Services in order to market, distribute, sell or resell Licensed Products, Licensed Processes or Licensed Services, the Licensor agrees, on a case by case basis, as
applicable, to negotiate with the Licensee, in good faith, for an adjustment to the running royalty rate and to any Other Consideration where the other products and processes so integrated form a substantial part of the Licensed Products,
Licensed Processes or Licensed Services. 

  

	3.12	The Licensee shall provide an Accounting to the Licensor within forty-five (45) days after each Royalty and Other Consideration Payment Due Date during the term of
this Agreement. All such statements shall include a calculation of the amount due to the Licensor for the running royalties, if any, payable under this Agreement (as described in Article 3.4), a calculation of the amount of any Other
Consideration (as described in Article 3.8), if any, to be paid to the Licensor and a remittance to the Licensor of the amounts shown to be payable. All such statements shall also include an Accounting setting out in detail how the amount of all
Gross Sales and of all Other Consideration were determined and identifying each Sublicensee and Affiliate and the location of the business of each Sublicensee and Affiliate. 

 

	3.13	The calculation of all Gross Sales and Other Consideration due to the Licensor will be carried out in accordance with generally accepted Canadian accounting principles
(“GAAP”), or the standards 

  

 
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and principles adopted by the US Financial Accounting Standards Board (“FASB”) applied on a consistent basis. 

 

	3.14	All payments and statements to be submitted by the Licensee to the Licensor shall be sent to IDC and IDC shall apportion and distribute all payments received from the
Licensee between IDC and JHU in accordance with the terms and conditions of the Inter-Institutional Agreement. 

  

	3.15	All amounts payable to the Licensor in accordance with the terms of this Agreement shall be calculated and paid in Canadian dollars. 

 

	3.16	All overdue accounts shall bear an interest of 1.0% compounded for each thirty day period the account is overdue. 

ARTICLE IV – LICENSEE’S PERFORMANCE 
  

	4.1	The Licensee agrees to meet the performance development milestones attached as Schedule B hereto for a first indication selected from the Licensed Applications. The
Licensee further agrees to use reasonable commercial efforts to monitor on a worldwide basis patent infringement regarding any Patent Rights licensed under this Agreement; 

 

	4.2	The Licensee agrees that the Technology shall not be used to promote the sales of other products, processes or services in a manner that reduces or eliminates the
benefit to the Licensor, without the express written consent of the Licensor. 

  

	4.3	The Licensee represents and warrants to the Licensor that with respect to the Licensed Applications it has or shall acquire the infrastructure, expertise and resources
to: 

  

	 	(a)	develop and commercialize the Technology; 

  

	 	(b)	track and monitor on an ongoing basis performance under the terms of each sublicense entered into by the Licensee; 

 

	 	(c)	handle the Technology, Licensed Products, Licensed Processes and Licensed Services with care and without danger to the Licensee, its employees, agents or the
public and in accordance with all applicable laws and regulations 

  

	4.4	The Licensee represents and warrants to the Licensor that it will, throughout the term of this Agreement: 

 

	 	(a)	with respect to at least one Licensed Application, allocate to the development and commercialization of the Technology covered under the Patent Rights at least the same
degree of diligence, expertise, infrastructure, and resources as the Licensee is allocating to other products being developed and marketed by the Licensee; 

 

	 	(b)	use reasonable commercial efforts to develop and exploit the Technology covered under Patent Rights and promote, market and sell Licensed Products, Licensed Processes,
and Licensed Services to meet market demand for the Technology, Licensed Products, Licensed Processes and Licensed Services including without limitation putting in place an effective financing plan for commercialization and develop a business
plan that sets out the commercialization and marketing plans for the Technology, Licensed Products, Licensed Processes and Licensed Services. 

 ARTICLE V – AUDIT AND INSPECTION OF RECORDS 
  

	5.1	 The Licensee shall keep proper and detailed records and accounts including invoices, receipts, and vouchers showing all information necessary for
the accurate determination of license and 

  
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royalty payments hereunder and where such records and accounts shall be in sufficient detail and form acceptable to the Licensor. The Licensee shall cause its Sublicensees and Affiliates to keep
similar accounts and records. 

  

	5.2	During reasonable business hours, the Licensee shall make available such accounts and records and permit the Licensor or its authorized representatives to audit and
inspect such records, to take extracts therefrom and make copies thereof. Furthermore, the Licensee shall afford reasonable facilities for such audits and inspections and furnish the Licensor or its authorized representatives with all
information requisite to the understanding of the records. If an inspection of the Licensee’s records by the Licensor shows an under-reporting or underpayment by the Licensee of any amount to the Licensor, by more than 3% for any 12 month
period, then the Licensee agrees to reimburse the Licensor for the cost of the inspection as well as pay to the Licensor any amount found due including any interest within 30 days notice by the Licensor to the Licensee. 

 

	5.3	The Licensee shall keep and preserve the accounts and records referred to in this Article, relative to each year of the term of this Agreement, for a period of five
years thereafter. 

 ARTICLE VI – CONFIDENTIAL INFORMATION 

 

	6.1	A Party receiving Confidential Information pursuant to this Agreement (hereinafter referred to as the “Receiving Party”) shall respect the confidential nature
of the Confidential Information as defined in this Agreement. A Receiving Party shall use a reasonable standard of care in protecting the Confidential Information and at least the same precautions to protect the Confidential Information which it
uses to protect its own proprietary or confidential information. 

 A Receiving Party shall not, without the prior
written consent of the other Party, disclose or permit disclosure of such Confidential Information to any person, firm, corporation or other entity, other than business associates who have agreed in writing to keep Confidential Information
confidential or to employees, agents or other representatives of the Receiving Party on a need to know basis in order to carry out the purposes of this Agreement. The Receiving Party shall use reasonable efforts to ensure that such business
associates employees, agents or representatives are covered by the terms of these confidentiality provisions and do not further disclose such Confidential Information in violation of this Article. The obligations of this Paragraph shall also apply
to Sublicensees(s) and Affiliates provided such information by the Licensee. IDC’s, JHU’s, Licensee’s, Affiliates’, and Sublicensees’ obligations under this Paragraph shall extend until three (3) years after the
termination of this Agreement. 
 Exceptions: the Receiving Party’s obligations under Paragraph 6.1 shall not extend to any
part of the information: 
  

	 	a.	that can be demonstrated to have been in the public domain or publicly known and readily available to the trade or the public prior to the date of the disclosure; or

  

	 	b.	that can be demonstrated, from written records to have been in the recipient’s possession or readily available to the recipient from another source not under
obligation of secrecy to the disclosing party prior to the disclosure; or 

  

	 	c.	that becomes part of the public domain or publicly known by publication or otherwise, not due to any unauthorized act by the recipient; or 

 

	 	d.	that is demonstrated from written records to have been developed by or for the receiving party without reference to the Confidential Information disclosed by the
disclosing party; or 

  
 Page 11 of 21

	 	e.	that is required to be disclosed by law, government regulation or court order. 

 

	6.2	A Receiving Party shall not use or permit use of such Confidential Information in any manner not specified or permitted under the terms of this Agreement.

  

	6.3	Any copy or reproduction of the Confidential Information shall be identified with the same marking as is found on the original and shall be subject to the same
restrictions as to disclosure and use as apply to the original thereof. 

 ARTICLE VII – WARRANTIES

  

	7.1	IDC (and the University of Victoria) and JHU are not commercial organizations. They are institutions of research and education. Therefore, the Licensor has no ability
to evaluate the commercial potential of any Patent Rights, the Technology, Licensed Products, Licensed Processes and Licensed Services or the license or rights granted in this Agreement. It is therefore incumbent upon the Licensee to evaluate the
rights and products in question, to examine the materials and information provided by JHU or IDC, and to determine for itself the validity of any Patent Rights, its freedom to operate, and the value of the Technology any Licensed Products, Licensed
Processes, Licensed Services or other rights granted. 

  

	7.2	The Licensor warrants that it has good and marketable title to its interest in the inventions claimed under the Patent Rights, with the exception of certain retained
rights of the United States Government which may apply if any part of the JHU research was funded in whole or in part by the United States Government. 

  

	7.3	Nothing in this Agreement shall be construed as a representation, warranty or covenant by or on behalf of the Licensor: 

 

	 	(a)	of the validity of any pending patent applications or issued patents for the Technology; 

 

	 	(b)	that any Licensed Product or Licensed Processes which are manufactured, used or sold or any Licensed Service which are provided pursuant to the license granted
under this Agreement, is, or will be, free from infringement of any copyright, patent, industrial design, or trademark, or is not, or will not be, in breach of a trade secret; 

 

	 	(c)	to bring or prosecute any action or suit of any nature against any third party with respect to such third party’s infringement or alleged infringement of the
Technology, subject to Article 7.6; or 

  

	 	(d)	to defend any action or suit of any nature brought by any third party in which it is alleged that use of the Technology has infringed or will infringe such third
party’s rights. 

  

	7.4	 EXCEPT AS EXPRESSLY SET FORTH IN ARTICLE 7.2, THE LICENSEE, AFFILIATED COMPANIES AND SUBLICENSEE(S) AGREE THAT THE TECHNOLOGY IS PROVIDED “AS
IS”, AND THAT THE LICENSOR MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE PERFORMANCE OF THE TECHNOLOGY, LICENSED PRODUCT(S), LICESENSED PROCESS(ES), AND LICENSED SERVICE(S) INCLUDING THEIR SAFETY, EFFECTIVENESS, OR COMMERCIAL
VIABILITY. EXCEPT AS EXPRESSLY SET FORTH IN ARTICLE 7.2 THE LICENSOR DISCLAIMS ALL WARRANTIES WITH REGARD TO THE TECHNOLOGY, LICENSED PRODUCT(S), LICENSED PROCESS(ES) AND LICENSED SERVICE(S) LICENSED UNDER THIS AGREEMENT, INCLUDING, BUT NOT LIMITED
TO, ALL WARRANTIES, EXPRESSED OR IMPLIED, OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, THE LICENSOR ADDITIONALLY DISCLAIMS ALL OBLIGATIONS AND LIABILITIES ON THE PART OF LICENSOR
AND INVENTORS, FOR DAMAGES, INCLUDING, BUT NOT LIMITED TO, DIRECT, INDIRECT, SPECIAL, AND CONSEQUENTIAL DAMAGES, ATTORNEYS’ AND EXPERTS’ FEES, AND COURT COSTS (EVEN IF LICENSOR HAS BEEN

  
 Page 12 of 21

	 	
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, FEES OR COSTS), ARISING OUT OF OR IN CONNECTION WITH THE MANUFACTURE, USE, OR SALE OF THE LICENSED PRODUCT(S), LICENSED PROCESS(ES) AND LICENSED
SERVICE(S) LICENSED UNDER THIS AGREEMENT. THE LICENSEE, AFFILIATED COMPANIES AND SUBLICENSEE(S) ASSUME ALL RESPONSIBILITY AND LIABILITY FOR LOSS OR DAMAGE CAUSED BY A PRODUCT AND/OR SERVICE MANUFACTURED, USED, OR SOLD BY LICENSEE, ITS SUBLICENSEE(S)
AND AFFILIATED COMPANIES WHICH IS A LICENSED PRODUCT(S), LICENSED PROCESS(ES) OR LICENSED SERVICE(S) AS DEFINED IN THIS AGREEMENT. 

  

	7.5	(a) The Licensor shall have no obligation whatsoever to reimburse the Licensee for any expenses or costs incurred by the Licensee in the performance of this Agreement,
even if incurred as the Licensor’s suggestion. The Licensee’s incurring of costs or expenses under this Agreement is at the Licensee’s sole risk and upon the Licensee’s independent business judgment that such costs and expenses
are justifiable. 

 (b) In the event that there is a lawsuit, claim, demand or other action brought (collectively
and individually a “Claim”) at all from or out of the use or as a consequence of the practice of the Patent Rights, Technology, Licensed Products, Licensed Processes and Licensed Services licensed under this Agreement by the Licensee,
an Affiliate, or its Sublicensees, customers or end-users , the Licensor agrees, on a case by case basis, as applicable, to negotiate appropriate adjustments to the running royalty rate and to the any Other Consideration until such time as the Claim
is settled. 
  

	7.6	Notwithstanding Article 7.3 (c) and (d) above, if there is an alleged infringement of the Patent Rights, the Licensee may, on receiving the prior written
consent of the Licensor, prosecute litigation designed to enjoin infringers of the Patent Rights. Provided it has first granted its prior written consent, the Licensor agrees to reasonably cooperate to the extent of signing all
necessary documents and to vest the Licensee with the right to institute litigation, provided that all direct and indirect costs and expenses of bringing and conducting the litigation or settlement are paid by the Licensee and in this case all
recoveries are for the benefit of the Licensee. 

  

	7.7	If any complaint alleging infringement of any patent or other proprietary rights is made against the Licensee, and Affiliate, or a Sublicensee of the Licensee regarding
the use of the Patent Rights or the manufacture, use or sale of the Licensed Products, Licensed Processes or Licensed Services, the following procedure shall be followed: 

 

	 	(a)	the Licensee will promptly notify the Licensor on receipt of the complaint and will keep the Licensor fully informed of the actions and positions taken by the
complainant and taken or proposed to be taken by the Licensee on behalf of itself, an Affiliate, or a Sublicensee. 

  

	 	(b)	Except as provided in Article 7.7(d), all costs and expenses incurred by the Licensee, an Affiliate, or any Sublicensee of the Licensee in investigating, resisting,
litigating and settling the complaint, including the payment of any award of damages and/or costs to any third party, will be paid by the Licensee, the Affiliate, or the Sublicensee as the case may be. 

 

	 	(c)	No decision or action concerning or governing any final disposition of the complaint will be taken without full consultation with the Licensor.

  

	 	(d)	The Licensor may elect to participate as a party in any litigation involving the complaint to the extent that the court may permit, but any additional expenses
generated by such participation will be paid by the Licensor subject to the possibility of recovery of some or all of the additional expenses from the complainant. 

ARTICLE VIII – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE 

 

	8.1	 The Licensee indemnifies, holds harmless and defends with counsel reasonably acceptable to Licensor, the Licensor, the Inventors, the University of
Victoria’s and IDC’s Boards, officers, 

  
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employees, faculty, students, agents and JHU’s present and former trustees, officers, faculty and students against any and all claims or judgments, including all associated legal fees,
expenses and disbursements actually incurred, arising out of the exercise of any rights under this Agreement, including without limitation any damages, losses, consequential or otherwise, arising in any manner (including arising from
or incidental to any product liability or other lawsuit, claim, demand or other action brought) at all from or out of the use or as a consequence of the practice of the Patent Rights, Technology, Licensed Products, Licensed Processes and
Licensed Services licensed under this Agreement by the Licensee, an Affiliate, or its Sublicensees, customers or end-users whether or not Licensor or said Inventors, either jointly or severally, is named as a party defendant in any such lawsuit and
whether or not Licensor or the Inventors are alleged to be negligent or otherwise responsible for any injuries to persons or property. The obligation of the Licensee to defend and indemnify as set out in this Article shall survive the termination of
this Agreement, shall continue even after assignment of rights and responsibilities to an Affiliate or Sublicensee, and shall not be limited by any other limitation of liability elsewhere in this Agreement. 

 

	8.2	The Licensor shall not be liable for any breach or breaches of this Agreement or loss, whether direct, consequential, incidental or special, which the Licensee,
Affiliates, Sublicenses or other third parties suffer arising from any defect, error or fault of the Patent Rights, Technology, Licensed Products, Licensed Processes or Licensed Services, or their failure to perform, even if the Licensor
has been advised of the possibility of the defect, error, fault or failure. The Licensee acknowledges that it has been advised by the Licensor to undertake its own due diligence regarding the Patent Rights, Technology, Licensed Products, Licensed
Processes and Licensed Services. 

  

	8.3	Prior to initial human testing or first commercial sale of any Licensed Product(s), Licensed Process(es), or Licensed Service(s) as the case may be in any particular
country, Licensee shall establish and maintain, in each country in which Licensee, an Affiliate or Sublicensee(s) shall test or sell Licensed Product(s), Licensed Process(es), and Licensed Service(s), product liability or other appropriate insurance
coverage in the minimum amount of five million dollars ($5,000,000) per claim and will annually present evidence to Licensor that such coverage is being maintained. 

 

	8.4	Upon Licensor’s request, Licensee will furnish Licensor with a Certificate of Insurance of each product liability insurance policy obtained. Licensor shall be
listed as an additional insured party in Licensee’s said insurance policies. If such Product Liability insurance is underwritten on a ‘claims made’ basis, Licensee agrees that any change in underwriters during the term of this
Agreement will require the purchase of ‘prior acts’ coverage to ensure that coverage will be continuous throughout the term of this Agreement. 

  

	8.5	Upon request, the Licensee will provide to the Licensor the terms and amount of the insurance in place including any certificates of insurance evidencing coverage and
the Licensee agrees: 

  

	 	(a)	not to use the Technology, Licensed Products, Licensed Processes or Licensed Services before insurance is in effect; 

 

	 	(b)	not to sell any Licensed Products, Licensed Processes or Licensed Services at any time unless insurance is in effect. 

ARTICLE IX – ASSIGNMENT/CHANGE OF OWNERSHIP 
  

	9.1	Except to an Affiliate, the Licensee will not assign, transfer, mortgage, pledge, financially encumber, grant a security interest, permit a lien to be created, change
or otherwise dispose of any or all of the rights granted to it under this Agreement without the prior written consent of the Licensor, subject to the right of the Licensee to execute sublicenses (as defined in Article 2.1).

  
 Page 14 of 21

	9.2	Successors and Assigns. Neither this Agreement nor any of the rights or obligations created herein, except for the right to receive any remuneration hereunder, may be
assigned by either party, in whole or in part, without the prior written consent of the other party, except that either party shall be free to assign this Agreement in connection with any sale of substantially all of its assets without the
consent of the other. Such assignment shall be subject to Licensor approval, which approval shall not be unreasonably withheld. This Agreement shall bind and inure to the benefit of the successors and permitted assigns of the parties hereto.

 ARTICLE X – TERMINATION AND EXPIRATION 

 

	10.1	This Agreement automatically and immediately terminates without notice to the Licensee if any proceeding under the Bankruptcy and Insolvency Act of Canada, or any other
statute or similar purpose, is started by or against the Licensee. 

  

	10.2	The Licensor shall be entitled to terminate this Agreement immediately with notice upon the occurrence of any of the following events: 

 

	 	(a)	the Licensee becomes insolvent or makes an assignment for the benefit of creditors or passes a resolution for winding up and the orderly payment of debts, unless a
trustee or other representative of the Licensee is willing and able to complete the Licensee’s obligations under this Agreement; or 

  

	 	(b)	the Licensee ceases or threatens to cease carrying out business; 

  

	 	(c)	the Technology becomes the subject to any security interest, charge or encumbrance of any third party claiming through the Licensee; or 

 

	 	(d)	the Licensee is in breach of any of its obligations under this Agreement and fails to remedy such breach within sixty (60) days after written notice of such
failure has been given to the Licensee by the Licensor, or, the necessary period where such breach would take more than sixty (60) days to remedy, to commence and proceed diligently to remedy such breach provided such period is not greater
than ninety (90) days or as otherwise agreed in writing by the Parties.; 

  

	10.3	Termination pursuant to Article 10.2 shall be effected by a thirty (30) day written notice which shall, as of the date stated therein, terminate the license
granted hereunder, together with all rights of the Licensee under this Agreement, without prejudice to the right of the Licensor to sue for and recover any damages or benefit due to the Licensor, and without prejudice to the remedy that
either Party may have in respect of any previous breach of this Agreement. 

  

	10.4	Upon termination for whatever reason or expiry of this Agreement the Licensee shall pay all license fees and royalties due and owing as of the date of termination
or expiry and shall provide a final Accounting of all royalties due and owing up to the date of termination within 30 days of the date of termination or expiry. 

 

	10.5	In the event of termination of the Agreement in accordance with Articles 10.1 and 10.2: 

 

	 	(a)	all rights to the Patent Rights shall revert to the Licensor and the Licensee thereafter shall cease to use the Patent Rights or the Technology in any manner or for any
purpose whatsoever; and 

  

	 	(b)	the Licensee shall deliver up to the Licensor all Technology in its possession and control and the Licensee shall have no further right of any nature at all in the
Patent Rights or the Technology; and 

  

	 	(c)	 the Licensee may sell all stocks of the Licensed Products and Licensed Processes which remain unsold at the date of termination, and may complete all
Licensed Services which are in the course of being provided at the date of termination, provided that within thirty (30) days after the date of such sale of Licensed Products or Licensed Processes, or the

  
 Page 15 of 21

	 	
completion of such Licensed Services, the Licensee submits royalties to the Licensor with respect thereto, computed in accordance with royalty provisions of the Agreement hereof; and

  

	 	(d)	in the event that any stock of Licensed Products and Licensed Processes remain unsold or any Licensed Services remain uncompleted within six months of the date of
termination, the Licensee shall at the sole discretion of the Licensor require all unsold Licensed Products and Licensed Processes to remain unsold or be destroyed and the Licensed Services remain uncompleted; and 

 

	 	(e)	the Licensor and any of its assignees or licensees shall have the right, without payment of any compensation, fee, indemnity, or other remuneration, to sell
Licensed Products or Licensed Processes and to provide Licensed Services to any of the Licensee’s customers. 

ARTICLE XI – PATENT PROSECUTION AND LICENSEE COVENANTS 

 

	11.1	Licensor, at the Licensee’s expense, shall file, prosecute and maintain all patents and patent applications specified under Patent Rights and, subject to the terms
and conditions of this Agreement, all such patents and patent applications shall be licensed to the Licensee hereunder. Title to all such patents and patent applications shall reside in Licensor. Licensor shall have full and complete control over
all patent matters in connection therewith under the Patent Rights, provided however, that Licensor shall (a) cause its patent counsel to timely copy Licensee on all official actions and written correspondence with any patent office, and
(b) allow Licensee an opportunity to comment and advise Licensor. Licensor shall consider and reasonably incorporate all comments and advice. By concurrent written notification to Licensor and its patent counsel at least thirty (30) days
in advance (or later at Licensor’s discretion) of any filing or response deadline, or fee due date, Licensee may elect not to have a patent application filed in any particular country or not to pay expenses associated with prosecuting or
maintaining any patent application or patent, provided that Licensee pays for all costs incurred up to Licensor’s receipt of such notification. Failure to provide such notification can be considered by Licensor to be Licensee’s
authorization to proceed at Licensee’s expense. Upon such notification, Licensor may file, prosecute, and/or maintain such patent applications or patent at its own expense and for its own benefit, and any rights or license granted hereunder
held by Licensee, Affiliates or Sublicensee(s) relating to the Patent Rights which comprise the subject of such patent applications or patent and/or apply to the particular country, shall terminate. The Licensee shall reimburse the Licensor within
thirty (30) days of the receipt of an invoice from the Licensor, for all costs associated with the preparation, filing, maintenance and prosecution of the Patent Rights as described in Article 11.1. 

 

	11.2	Subject only to the rights of JHU to use Licensed Products, Licensed Processes and Licensed Services, including the ability to distribute any biological material
disclosed and/or claimed in Patent Rights for non-profit academic research to non-commercial entities as is customary in the scientific community (the “Non-commercial Uses”) which are granted to JHU under Section 2.1, JHU agrees that
it will not use the Patent Rights, Licensed Products, Licensed Processes and Licensed Services, including the ability to distribute any biological material disclosed and/or claimed in Patent Rights for any use other than the Non-commercial Uses. JHU
at its discretion may inform Protox in confidence of any improvements made by JHU and its affiliated researchers to the Technology which are disclosed to the Office of Licensing and Technology Development and assigned to JHU.

  

	11.3	The Licensee represents and warrants to the Licensor that is a corporation duly organized, existing and in good standing under the laws of the Province of British
Columbia and has the power, authority and capacity to enter into this Agreement and to carry out the transactions contemplated by this Agreement, all which have been duly and validly authorized the all the requisite corporate proceedings.

  
 Page 16 of 21

	11.4	The Licensee will comply with all laws, regulations and ordinances, whether Federal, State, Provincial, County or Municipal or otherwise, with respect to the rights
granted herein. 

  

	11.5	The Licensee will pay all taxes and any related interest and penalty designated in any manner at all and imposed as a result of the existence or operation of this
Agreement, including without limitation tax which the Licensee is required to withhold or deduct from payments to the Licensor. The Licensee will provide upon request evidence as may be required by Canadian or US tax authorities to establish
that tax has been paid. The royalties specified in this Agreement are exclusive of taxes. If the Licensor is required to collect a tax to be paid by the Licensee, an Affiliate, or its Sublicensees, the Licensee will pay the tax to the Licensor on
demand. 

 ARTICLE XII – GENERAL TERMS AND CONDITIONS 

 

	12.1	Time shall be of essence in this Agreement. 

  

	12.2	The failure of a Party to enforce, at any time, any of the provisions of this Agreement or any of its rights hereunder, or to insist upon strict adherence to any
conditions of this Agreement shall not be considered to be a waiver of such provision or right or condition, nor shall it deprive that Party of the right thereafter to enforce any such provision or right or insist upon such strict
adherence. Where a party waives any of its rights under this Agreement, such waiver will be valid only where it is expressed in writing and only where it is signed by the Party for whose benefit such right was granted. 

 

	12.3	Formal notices required or permitted by this Agreement shall be in writing and shall be delivered by hand, by facsimile, or by double registered mail as follows:

 To the Licensor: 
 IDC 
 Innovation and Development Corporation 

PO Box 3075, STN CSC 
 R-Hut, McKenzie Ave 
 Victoria, BC, Canada, V8W 3W2 

Attention: Brent Sternig, President & CEO 
 Phone: (250) 721-6500 
 Fax: (250) 721-6497 

A copy of all official correspondence shall be sent at the same time to: 

Johns Hopkins Technology Transfer 
 The Johns Hopkins University 
 100 North Charles Street,
5th Floor 

Baltimore, MD 21201 
 Tel: (410) 516-8300 
 Fax: (410) 516-4411 

Attention: Director 
 Ref. No.: Al2062 
 To the Licensee: 

ProtoxTherapeutics Inc. 
 1210-885 West Georgia Street 
 Vancouver, BC, Canada, V6C 3E8 

Phone: (604) 688-0199 
 Fax: (604) 688-0173 

  
 Page 17 of 21

 
Attention: President or CEO 
  

	12.4	The Parties hereto agree that the exclusive jurisdiction and venue for any claim or law suit under this Agreement if brought by Licensee shall be the state, province
and federal courts sitting in JHU’s state or IDC’s province, as appropriate, and if brought by Licensor shall be the province and federal courts sitting in Licensee’s province, and each of the Parties hereby agrees and submits
itself to the exclusive jurisdiction and venue of such courts for such purpose. 

  

	12.5	This Agreement constitutes the entire agreement between the Parties relating to the subject matter herein for the Licensed Applications and supercedes any and all
prior written or oral agreements, negotiations, representations and understandings between the parties; and this Agreement may not be amended except in writing signed by all Parties. 

 

	12.6	No party shall be liable to another party for any failure to comply with or any delay in the performance of the terms of this Agreement where such failure or delay,
directly or indirectly or in whole or in part, arises from: 

  

	 	(a)	accident, fire, flood, earthquake, or explosion as defined in the business insurance documentation of the Licensee; 

 

	 	(b)	hostile or warlike action in time of peace or war as defined in the business insurance documentation of the Licensee; 

 

	 	(c)	insurrection, rebellion, revolution, civil war, acts of terrorism, sabotage, civil disobedience, usurped power, or action taken by governmental authority in
hindering, combating or defending against such occurrence as defined in the business insurance documentation of the Licensee; 

  

	 	(d)	strikes, slowdowns, lockouts or other labour or employee interruptions or disturbances initiated and as defined in accordance with labour laws of the jurisdiction
in which the Technology is being manufactured, whether involving employees of that party or of any other person over which that party has no reasonable control; or 

 

	 	(e)	acts, regulations or directives of governmental authority of competent jurisdiction. 

Any party seeking to rely on these provisions may only do so if notice in writing identifying the event relied on and the date of its
occurrence is given to the other party within ten (10) days of the occurrence of the event. 
  

	12.7	If any provision hereof is held or declared invalid, illegal or unenforceable by a court of competent jurisdiction, this Agreement shall continue in full force and
effect with respect to the remaining provisions, and all rights and remedies accrued under the enforceable provisions shall survive such a declaration. 

 

	12.8	The provisions of this Agreement relating to ownership of the Patent Rights, Technology, Confidential Information, Warranties, and Indemnification and Limitation of
Liabilities and Insurance, shall survive the early termination or expiration of this Agreement. 

  

	12.9	Licensee, Affiliates and Sublicensee(s) shall not use the name of Licensor, The University of Victoria, the University of Victoria Innovation and Development
Corporation, The Johns Hopkins University or The Johns Hopkins Health System or any of its constituent parts, such as the Johns Hopkins Hospital or any contraction thereof or the name of Inventors in any advertising, promotional, sales literature or
fundraising documents without prior written consent from an authorized representative of Licensor. Licensee, Affiliates and Sublicensee(s) shall allow at least seven (7) business days notice of any proposed public disclosure for Licensor’s
review and comment or to provide written consent. 

  
 Page 18 of 21

	12.10	Subject to the terms and conditions of this Agreement, this Agreement is binding on the Parties and their respective successors and permitted assigns.

  

	12.11	Headings in this Agreement are for reference only and do not form part of this Agreement and are not to be used in the interpretation of this Agreement.

  

	12.12	This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed in triplicate by their duly authorized
officers. 
  

									
	 UNIVERSITY OF VICTORIA
 INNOVATION AND DEVELOPMENT
 CORPORATION
	 		 	WITNESS
	PER:	 		 		 		 	
			
	 /s/ Brent Sternig
	 		 	 /s/ Kathy Veldhoen

	Print Name:	 	 Brent Sternig
 President and
CEO
	 		 	Print Name:	 	Kathy Veldhoen
					
	Date:	 	 10/3/2009
	 		 		 	
			
	THE JOHNS HOPKINS UNIVERSITY	 		 	WITNESS
	PER:	 		 		 		 	
			
	 /s/ Wesley D. Blakeslee
	 		 	 /s/ Jacqueline M. Flood

	Print Name:	 	 Wesley D. Blakeslee
 Executive
Director
	 		 	 Print Name:
	 	Jacqueline M. Flood
					
	Date:	 	 10/16/2009
	 		 		 	
			
	PROTOX THERAPEUTICS INC.	 		 	WITNESS
	PER:	 		 		 		 	
			
	 /s/ Fahar Merchant
	 		 	 /s/ Tu Diep

	Print Name:	 	 Fahar Merchant
 President and
CEO
	 		 	Print Name:	 	Tu Diep
					
	Date:	 	 9/26/2009
	 		 		 	

  
 Page 19 of 21

 SCHEDULE A – PATENT RIGHTS 

The Patent Rights are the subject of US Provisional Application # 60/314,613, filed on August 24, 2001, which was subsequently converted to
PCT Patent Application No. PCT/US02/27061, filed on August 23, 2002, entitled “Proaerolysin Containing Protease Activation Sequences and Methods of Use for Treatment of Prostate Cancer”. 

The Patent Rights are currently the subject of multiple national patent applications, as outlined below for the indicated jurisdictions: 

United States Patent No. 7,282,476 filed 2/18/2004, issued October 16, 2007 titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION
SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 United States Patent Application No. 11/856/543 (divisional), filed
on September 17, 2007 titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 

South African Patent No. 2004/2319 filed 8/23/2002, issued November 30, 2005 titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION
SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 Canadian Patent Application No. 2457903, filed 8/23/2002, titled:
PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 Japanese Patent Application
No. 2003-523270, filed February 24, 2004; issued April 12, 2009, titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 

Chinese Patent Application No. 02816622.1 filed 8/23/2002; issued February 13, 2009, titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION
SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 European Union Patent Application No. 02768702.9 filed 8/23/2002,
titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 Australian Patent
No. 2002331720 filed 8/23/2002 and issued January 24, 2008, titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 Indian Patent Application No. 217468 (divisional) filed March 22, 2004, and issued on March 26, 2008 as Indian Patent titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES
AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 
 Indian Patent Application No. 2389/KOLNP/2007 filed February 22, 2004
titled: PROAEROLYSIN CONTAINING PROTEASE ACTIVATION SEQUENCES AND METHODS OF USE FOR TREATMENT OF PROSTATE CANCER 

  
 Page 20 of 21

 SCHEDULE B – PERFORMANCE REQUIREMENTS 

 

	1.	Provide company annual report to shareholders and press releases evidencing current status of technology and state of commercialization. Post sales, company must
provide quarterly reports that allow Licensor to track royalty payment compliance. 

  
 Page 21 of 21EX-10.13

 Exhibit 10.13 
 ***Text Omitted and Filed Separately 
 with the Securities and Exchange
Commission. 
 Confidential Treatment Requested 
 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 240.24b-2. 

Exclusive License Agreement 
 Made this 28th day of April, 2010 (the “Effective Date”) by and between Protox Therapeutics Inc., a corporation duly organized and existing under the laws of British Columbia and having its
registered office at 1210 - 885 West Georgia Street, Vancouver, BC, Canada (hereinafter called “Protox”) and Kissei Pharmaceutical Co., Ltd., a corporation duly organized and existing under the laws of Japan and having its registered
office at 19-48, Yoshino, Matsumoto, Nagano Prefecture, Japan (hereinafter called “Kissei”). 
 WITNESSETH THAT:

 WHEREAS, Protox has developed and is still developing in certain countries including the USA and Canada a certain
pharmaceutically active modified protein having its development code number of PRX302 for treatment of benign prostatic hyperplasia (“BPH”), prostate cancer, prostatitis and other prostate diseases and is the owner or licensee of certain
patents, patent applications and technical information relating to such modified protein; 
 WHEREAS, Kissei desires to obtain
from Protox an exclusive license with respect to such modified protein under such patents, patent applications and technical information of Protox for the formulation, development, marketing, distribution and sales of the pharmaceutical preparations
containing such modified protein as an active ingredient in Japan for the treatment of BPH, prostate cancer, prostatitis and other diseases of the prostate in Japan; and 
 WHEREAS, Protox is willing to grant such exclusive license to Kissei, under the terms and conditions hereinafter appearing. 
 NOW, THEREFORE, in consideration of the covenants and obligations expressed herein, and intending to be legally bound, and otherwise to be bound by proper and reasonable conduct, the parties hereby agree
as follows: 

  
 1 

	Article 1.	Definitions 

 1.01
“1st Indication” shall mean use of the Product
for the treatment of Lower Urinary Tract Symptoms caused by BPH. 
 1.02 “2nd Indication” shall mean use of the Product for the treatment of
prostate cancer. 
 1.03 “3rd Indication” shall mean use of the Product for the treatment of prostatitis or other prostate diseases.

 1.04 “Affiliate” shall mean any corporation, firm, partnership or other entity which, whether de jure or de facto,
directly or indirectly owns, is owned by or is under common ownership with, a party to this Agreement to the extent of at least fifty percent (50%) of the equity (or such lesser percentage which is the maximum allowed to be owned by a foreign
corporation in a particular jurisdiction) having the power to vote on or direct the affairs of the entity and any person, firm, partnership, corporation or other entity actually controlled by controlling or under common control with a party to this
Agreement. 
 1.05 “Authorized Sublicensee” shall mean a sublicensee of Kissei for which all required consents and
approvals have been obtained from Protox in accordance with paragraph 2.03. 
 1.06 “Bulk Product” shall mean bulk
Modified Protein and any Excipient. 
 1.07 “Business Day” means any day other than (i) a Saturday, Sunday, or
commercial holiday in either Vancouver, British Columbia or Tokyo, Japan and (ii) corporate-wide holidays of Protox or Kissei. 
 1.08 “Combination Product” shall mean a Product containing the Modified Protein and another therapeutically active ingredient (i) where the other therapeutically active ingredient is not an
Excipient, (ii) where the Modified Protein and other therapeutically active ingredient are co-administered at the same time, and (iii) where such co-administration has been approved by all required regulatory authorities. 

1.09 “Control” or “Controlled” shall mean, with respect to any Patent, Technical Information or other intellectual
property right, that a party owns a transferable interest or has a license to practice such Patent, Technical Information or other intellectual property right and has the ability to grant the other party access, a license or a sublicense (as

  
 2 

 
applicable) to practice such Patent, Technical Information or other intellectual property right without violating the rights of any Third Party. 

1.10 “Data Exclusivity” shall mean a period of exclusivity granted by a regulatory authority during which no Third Party may
sell a generic product that competes with a Product. 
 1.11 “EMEA” shall mean the European Medicines Agency.

 1.12 “[*...***...]” shall mean [...***...].

 1.13 “Excipient” shall mean a substance that is used as a diluent or vehicle for the Modified Protein and is
part of the Bulk Product to formulate the Product, including, but not limited to albumin. 
 1.14 “FDA” shall mean the
United States Food and Drug Administration. 
 1.15 “Field” shall mean any and all pharmaceutical uses in human beings
for the treatment, palliation or prevention of BPH, prostate cancer, prostatitis and other prostate diseases. 
 1.16
“Kissei” shall mean Kissei Pharmaceutical Co., Ltd. 
 1.17 “Improvement” shall mean any and all Technical
Information, patentable or non-patentable, owned, owned jointly or Controlled by either party or its Affiliates which cover any improvement, invention or discovery concerning the Modified Protein, Bulk Product or the Product including, without
limitation, new or improved methods of manufacture, formulas, uses, indications, methods of delivery and dosage forms thereof. 

1.18 “Major Territory” shall mean the United States, Canada, Germany, Spain, Italy, France or the United Kingdom. 

1.19 “Modified Protein” shall mean a modified protein activatable by the prostate-specific antigen (the “PSA”) and
covered by the claims in the Patents listed on Schedule 1, including, but not limited to, modified proteins having a development code number at 

 
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 3 

 
Protox as PRX302 and follow-on proteins and peptides of PRX-302 activatable by the PSA. 
 1.20 “Net Sales” in any royalty reporting period in the Territory shall mean the proceeds of sales by Kissei or its Affiliates or its Authorized Sublicensees to any Third Parties of the Product
less [*...***...]. With respect to sales of a
Combination Product, the Net Sales of the Product shall be calculated by multiplying the [...***...]. For greater certainty, [...***...]. For the purposes of calculating Net Sales in this paragraph 1.20, “Product” means
[...***...]. 
 1.21 “Orphan Drug Designation” shall mean the designation of a Product as an Orphan Medicinal
Product by regulatory authorities in the Territory. 
 1.22 “Patent” or “Patents” shall mean the patents and
patent applications relating to the Modified Protein or the Bulk Product or the Product or the manufacture or use thereof, which are owned or Controlled, as of the Effective Date or thereafter by Protox, as listed in Schedule 1 attached hereto.
Schedule 1 shall be updated with mutual consent of Protox and Kissei from time to time during the term of this Agreement. Included within this definition of “Patents” are any patents matured into issued patents from the patent applications
listed in the Schedule 1 and any continuations, continuations-in-part, divisions, patents of addition, reissues, renewals or extensions of such patents and patent applications. For greater certainty, Patents shall include all patents and patent
applications owned or Controlled by Protox during the term of this Agreement having at least one Valid Claim that would, but for the license granted to Kissei under this Agreement, be infringed by the manufacture, use or sale of Modified Protein,
Bulk Product or Products in the Territory. 

  
  

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 4 

 1.23 “Product” shall mean any and all pharmaceutical preparations which contain
the Modified Protein, including Excipient, for use in the Field in finished dosage package forms ready for sales to the Third Parties, including, without limitation, Combination Products. 

1.24 “Protox” shall mean Protox Therapeutics Inc. 
 1.25 “Registration” shall mean all technical approvals by any governmental authorities which are required by Kissei or its Authorized Sublicensee to sell the Product in the Territory.

 1.26 “Royalty Rate” has the meaning given in paragraph 5.01. 

1.27 “Royalty Period” has the meaning given in paragraph 5.01. 

1.28 “Technical Information” shall mean all present and future technical information relating to the Modified Protein, the Bulk
Product or the Product, including, all biological, toxicological, chemical information, pre-clinical, clinical, pharmacological, pharmacokinetic data, physico-chemical properties, assay, quality control and manufacturing method and data,
specifications, and any other information relating thereto and which are owned or Controlled by the party hereto. 
 1.29
“Territory” shall mean Japan. 
 1.30 “Third Parties” shall mean any party other than a party to this
Agreement and its Affiliates, licensees and any Authorized Sublicensees. 
 1.31 “Trademark” shall mean the trademark
which is selected by Kissei for use in the promotion, marketing, sales and distribution of the Product in the Territory. 
 1.32
“University Agreements” shall mean the Exclusive License Agreement among UVIDC, The Johns Hopkins University and Protox dated September 30, 2004, and the Exclusive License Agreement among UVIDC, The Johns Hopkins University and Protox
dated October 16, 2009. 
 1.33 “UVIDC” shall mean the University of Victoria Innovation and Development
Corporation. 

  
 5 

 1.34 “Valid Claim” shall mean any claim which is contained in any issued and
unexpired Patent which has not been held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency or competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been
admitted to be invalid or unenforceable through abandonment, reissue, disclaimer or otherwise. 
  

	Article 2.	Grant 

 2.01 Protox hereby
grants to Kissei, and Kissei hereby shall have, a sole and exclusive license, with the right to grant multiple tier sublicenses to Authorized Sublicensees, under the Patents to use and develop the Modified Protein, to use and import the Bulk Product
and to use, develop, repack, promote, market, distribute, sell, offer to sell and have sold the Product in the Field in the Territory. 
 2.02 Protox further grants to Kissei, and Kissei hereby shall have, a sole and exclusive license, with the right to grant multiple tier sublicenses to Authorized Sublicensees, to use, practice and exploit
the Technical Information of Protox and its Affiliates to use and develop the Modified Protein, to use and import the Bulk Product and to use, develop, repack, promote, market, distribute, sell, offer to sell and have sold the Product in the Field
in the Territory. 
 2.03 Kissei may grant a sublicense of any of its rights under this Agreement to any
Third Party provided that such sublicense shall be made only after Protox has obtained such right from UVIDC and The Johns Hopkins University and with the prior written consent of Protox, which shall not be unreasonably withheld or delayed by
Protox. Any sublicense granted by Kissei shall be subject to the terms and conditions of this Agreement. Kissei shall provide Protox with a copy of each sublicense agreement within thirty (30) days of entering into it, provided that Kissei may
redact key financial terms from such copy. Protox shall obtain the sublicense right for Kissei from UVIDC and The Johns Hopkins University by the completion of the following: [*...***...]. If Protox fails to obtain such consent
by such deadline, then Protox shall [...***...]. 

  
  

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 2.04 After the Effective Date hereof, Protox shall file an exclusive license right
registration, including a provisional registration, for the Patent subject to the Japanese Patent law. 
  

	Article 3.	Disclosure of Technical Information 

 3.01 Within thirty (30) days after the Effective Date of this Agreement and from time to time thereafter during the term of this Agreement, Protox shall disclose to Kissei all the relevant Technical
Information which Protox or its Affiliates have heretofore developed or acquired or may hereafter develop or acquire during the term of this Agreement, provided that all new material Technical Information shall be disclosed without unreasonable
delay. To the extent that Protox grants licenses under the Patents in the Field outside the Territory, Protox shall make commercially reasonable efforts to have its licensees under any such licenses agree to allow Protox to disclose the Technical
Information of such licensees to Kissei for use by Kissei and its Authorized Sublicensees at no additional cost and in furtherance of the licenses granted hereunder, provided that Kissei shall reciprocate by allowing Protox to disclose the Technical
Information of Kissei to any licensees who so agree for use by such licensee at no additional cost and in furtherance of the licenses granted by Protox to such licensees and their respective sublicensees. 

3.02 Kissei shall reimburse Protox for any costs and expenses incurred by Protox traveling to Kissei in accordance with Kissei’s
request. Kissei and Protox shall mutually agree upon any costs and expenses for such traveling in advance. 
 3.03 Kissei shall
have the right to use and disclose the Technical Information received from Protox to its Affiliates for the purpose of this Agreement. Furthermore, Kissei shall have the right to disclose the Technical Information received from Protox to its
Authorized Sublicensees for the purpose of this Agreement pursuant to paragraph 3.01 hereof. 
 3.04 From time to time during
the term of this Agreement, Kissei shall disclose to Protox all the relevant Technical Information which Kissei, its Affiliates or Authorized Sublicensees have heretofore developed or acquired or may hereafter develop or acquire during the term of
this Agreement, provided that all new material Technical Information shall be disclosed without unreasonable delay. 

  
 7 

 3.05 Protox shall have the right to use and disclose the Technical Information received from
Kissei to its Affiliates. Furthermore, Protox shall have the right to disclose the Technical Information received from Kissei to its licensees pursuant to paragraph 3.01 hereof. 

 

	Article 4.	Milestone Payments 

 4.01
In consideration of the rights and licenses granted to Kissei by Protox hereunder, Kissei shall pay to Protox the following non-refundable milestone payments upon occurrence of the following milestones: 

 

							
	 	  	 Milestone
	  	Payment
(US Dollars)	 
			
		  	 1.       Execution of this Agreement.
	  	$	3,000,000	* 
		  	 2.       [*...***...].
	  	$	5,000,000	  
	  
 Subtotal
	  		  	$	8,000,000	  
			
	 1st Indication
	  	 3.       Completion of the following:
	  	$	[...***...]	  
	 (Lower Urinary Tract Symptoms caused by BPH)
	  	 [...***...]
  

[...***...].
	  			
		  	  

4.       [...***...].
	  	$	[...***...]	  
		  	  

5.       [...***...].
	  	$	[...***...]	  
	  
 Subtotal
	  		  	$	[...***...]	  
	 2nd Indication

(Prostate Cancer)
	  	 6.       [...***...]
	  	$	[...***...]	  

  
  

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 8 

							
		  	 [*...***...]
	  			
		  	  

7.       [...***...].
	  	$	[...***...]	  
		  	  

8.       [...***...].
	  	$	[...***...]	  
	 Subtotal
	  		  	$	[...***...]	  
	 3rd Indication

(Prostatitis or other diseases of the prostate)
	  	 9.       [...***...].
	  	$	[...***...]	  
		  	  

10.     [...***...].
	  	$	[...***...]	  
		  	 11.     [...***...].
	  	$	[...***...]	  
	 Subtotal
	  		  	$	[...***...]	  
	 Achievement sales milestones
	  	 12.     [...***...]

13.     [...***...]
	  	$
 $
	[...***...]

[...***...]
	  
   

	  
 Subtotal
	  		  	$	[...***...]	  
		  		  	  
	  
	 
	  
 TOTAL
PAYMENTS
	  	$	75,000,000	  
		  		  	  
	  
	 

  

	*	 Protox and Kissei acknowledge and agree that the initial $3,000,000 milestone payment noted above is in consideration of the rights granted by Protox
to Kissei in respect of the 1st Indication.

 4.02 The payments specified in paragraph 4.01 shall be made only one time within thirty (30) days of
the first occurrence of the event described in paragraph 4.01, regardless 

  
  

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of how many times such event may be achieved with regard to the Products covered by this Agreement. 
 4.03 Kissei will decide whether it will pursue each of the 2nd Indication and 3rd Indication at Kissei’s sole discretion and shall promptly notify Protox of any decision not to pursue either or both of the 2nd Indication and 3rd Indication. 
 4.04 In the event that Kissei discontinues its efforts in respect of a Product for the 1st Indication prior to the launch therefor in the Territory and, instead, starts to work on a Product for the 2nd Indication, any payment made for the abandoned Product for the 1St
Indication (except milestone payments 1 and 2) shall be fully creditable towards milestone payments payable for Product for the 2nd Indication. Similarly, if Kissei discontinues its efforts in respect of the Product for the 1st Indication or for the 2” Indication prior to the launch
therefor in the Territory and starts to work on a Product for the 3rd Indication, any payment made for the abandoned Product for the 1st Indication or the abandoned Product for the 2nd Indication (except milestone payments 1 and 2) shall be fully creditable towards milestone payments payable for a
Product for the 3rd Indication. For greater certainty, payments will not be creditable if Kissei does not abandon the Product for the 1st Indication and/or the Product for the 2nd Indication, as the case may be. 
 4.05 Kissei shall pay interest to Protox on the aggregate amount of any payments that are not paid on or before the date such payments are due under this Agreement, and that are not disputed amounts, at a
rate per annum equal to the lesser of the United States of America prime rate of interest plus two percent (2%), as reported by The Wall Street Journal, or the highest rate permitted by applicable law, compounded annually, and calculated on the
number of days such payments are paid after the date such payments are due. For greater certainty, no interest shall be payable on disputed amounts payable hereunder until such dispute has been resolved and the amount is confirmed to be payable.

  

	Article 5.	Royalty 

 5.01 In consideration of the rights and licenses granted to Kissei validly hereunder, Kissei shall, in addition to the payments as per paragraph 4.01 hereof, pay to Protox, commencing with the first
commercial launch of the Product in the Territory, a royalty of [*...***...] percent ([...***...]%) of Net Sales in the Territory (the “Royalty Rate”) until the last to expire
of all of the Valid Claims in the Territory or for a period of ten (10) years 

  
  

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following the first commercial launch of the Product in the Territory, whichever is longer (the “Royalty Period”). Both parties agree that the Royalty Rate includes any and all
royalties which Protox shall pay to Third Parties, UVIDC and The Johns Hopkins University for any rights licensed to Kissei hereunder. For the avoidance of doubt and subject to paragraph 5.05, in no event shall Kissei be obligated or required to pay
any royalties, in addition to the Royalty Rate, to Third Parties, UVIDC and the Johns Hopkins University. The Royalty Rate shall be reduced upon occurrence of certain events as follows: 

 

	 	(i)	 After expiration of the Royalty Period and provided that there is no further extension granted by virtue of Data Exclusivity for the Product or
Combination Product(s) or Orphan Drug Designation in the Territory or generic product for the Product has been launched in the Territory, the Royalty Rate which Kissei owes to Protox at the time shall be reduced to [*...***...]
 percent ([...***...]%) of Net Sales in the Territory. For greater certainty and for the purposes of this paragraph 5.01, “generic product” shall mean a product which is chemically identical to the Product but is marketed using the
chemical makeup of the product or under a trademark other than the Trademark for such Product. 

  

	 	(ii)	 After any generic product for the Product launches in the Territory and achieves a [...***...]% or greater share of the Product market in
[...***...], the Royalty Rate which Kissei owes to Protox shall be reduced to [...***...] percent ([...***...]%) of Net Sales in the Territory at such time and thereafter. For the purposes of this Agreement, “market
share” shall be determined by reference to written evidence of a reliable source. 

 Protox and Kissei
acknowledge that the Royalty Rate in this section was determined considering that Protox shall pay certain royalties to UVIDC and the Johns Hopkins University. Consequently and provided that the Royalty Rate has not been reduced pursuant to
paragraph 5.05, in the case that Protox is no longer required to pay the royalties to UVIDC and the Johns Hopkins University, the Royalty Rate shall be reduced by the amount equal to what Protox would have been obliged to pay UVIDC and the Johns
Hopkins University, but for the expiry of such royalty obligations. 

  
  

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 5.02 Kissei shall keep, and shall cause its Affiliates and its Authorized Sublicensees to
keep, true and correct accounting books relating to the royalty payable to Protox hereunder and shall deliver to Protox the royalty statements within thirty-five (35) days following the close of each calendar quarter during the term of this
Agreement for said calendar quarter and shall at the same time pay to Protox the amount of such royalty shown to be due. Such amount shall be paid by US dollars, calculated from the exchange rate posted in The Wall Street Journal published on the
last day of such calendar quarter. 
 5.03 Any income or other tax which Kissei is required to pay or withhold on behalf of
Protox with respect to any payments payable to Protox hereunder shall be deducted from the amount of such payments otherwise due, provided, however, that in regard to any such deduction, Kissei shall give Protox such assistance as may reasonably be
necessary to enable or assist Protox to claim exemption therefrom and shall, upon request, give Protox proper evidence from time to time as to the payment of the tax. 
 5.04 Protox shall have the right to have a public and neutral accounting firm of its own selection, except one to whom Kissei may have reasonable objection, and at its own expense, examine the relevant
books and records of account of Kissei and its Authorized Sublicensees during reasonable business hours upon reasonable prior written notice to Kissei and not more often than once each calendar year, for not more than five (5) previous years,
to determine whether appropriate accounting and payment have been made to Protox hereunder. Protox may exercise such right until the end of one (1) year after termination by Protox or expiration of this Agreement. Said public accounting firm
shall treat as confidential, and shall not disclose to Protox, any information other than information which shall be given to Protox pursuant to any provision of this Agreement. 

5.05 If [*...***...]; and [...***...]; and
[...***...], then [...***...] 

  
  

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 [*...***...] 
 [...***...] 
 [...***...] 

[...***...] 
 [...***...] 
 [...***...] 

[...***...] 

[...***...] 
 Kissei and Protox will cooperate and both participate in the negotiation of any license for which Kissei seeks the application of this paragraph 5.05. Neither party shall enter into any such license
without the prior written consent of the other, acting reasonably. 
  

	Article 6.	Development 

 6.01 Within
[...***...] after receipt by Kissei of the Technical Information from Protox pursuant to paragraph 3.01 hereof, Kissei shall provide Protox with its development plan for the Product. The development plan shall comprise the general timetable of
the development studies and investigations proposed by Kissei or any of its Affiliates or Authorized Sublicensees to carry out with respect to the Product and also the timetable for the submission of NDA of such Product in the Territory. Such
studies and investigations 

  
  

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shall be directed toward Registration of such Product in the Territory. Within [*...***...] after receipt by Kissei of the Technical
Information from Protox pursuant to paragraph 3.01 hereof, both parties will meet or have a video-conference or telephone conference to review the development plan for the Product by Kissei. Protox may give Kissei comments for such development plan
and Kissei shall take into account such comments as far as is scientifically and objectively appropriate and reasonable. Such development plan may be modified from time to time by Kissei if such modification is appropriate to the needs of the
development but in such event Kissei shall submit such modified development plan to Protox for its review as aforesaid. For the avoidance of doubt, Kissei shall develop the Product in the Territory with its own responsibility with its sole and final
discretion. 
 6.02 Kissei shall provide Protox with an annual development status report on development activities of
Kissei and any of its Affiliates and Authorized Licensees for the Product during the immediately preceding twelve (12) month period. 
 6.03 In the event that Kissei conducts non-clinical studies under GLP or clinical studies under GCP, Kissei shall provide Protox with a draft study protocol or its summary and draft study report or its
summary for Protox’s review, and Protox may give Kissei comments thereon within thirty (30) days from the receipt thereof and Kissei shall always take into account such comments from Protox as far as it is scientifically and objectively
appropriate and reasonable. 
 6.04 Kissei shall use its commercially reasonable efforts at its own responsibility and expense
to diligently pursue the development of the Product for obtaining the Registration of the Product in the Territory, with the same priority and the same standard of efforts used for its own major products. 

6.05 Kissei shall submit to Protox the estimated quantities of the Modified Protein and the Bulk Product necessary for the development of
the Product by Kissei, its Affiliates or its Authorized Sublicensees in the Territory. Protox shall supply Kissei with all quantities of the Modified Protein and the Bulk Product at [...***...], in such form acceptable to both parties which
Kissei requires for conducting any development work for obtaining the Registration of the Product in the Territory and for any other purposes to fulfill the purpose of this Agreement. Both parties will discuss terms and conditions for supply of the
Modified Protein and Bulk 

  
  

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Product for development use in good faith and execute certain supply agreement separately. 
 6.06 During the development of the Product by Kissei, both parties will meet or have a video-conference or telephone conference as often as reasonably necessary to exchange information on their respective
Product development activities, but, in any event, not less than once every twelve (12) months. 

6.07 The parties shall, from time to time during the term of this Agreement, discuss progress and development of
Products for the 2nd Indication and 3rd Indication. If Protox or its licensee successfully completes Phase
III registration trials for a Product for the 2nd Indication or 3rd Indication in a Major Territory, then Protox shall provide written notice of such completion to Kissei. Within 3 months of the date of such notification, Kissei shall notify Protox in writing whether or
not it will pursue the development and sale of a Product for such 2nd Indication or 3rd Indication, as the case may be, in the Territory. If Kissei or its Authorized Sublicensee decides not pursue development and sales of such Product, then Protox shall have the right, in its sole
discretion, to terminate the licenses granted to Kissei under paragraphs 2.01 and 2.02 with respect to such indication and Protox or its Affiliates or other licensees shall have the right to pursue the development and sale of a Product for such
indication in the Territory. Prior to any such termination, Protox shall use commercially reasonable efforts to assist Kissei to find an Authorized Sublicensee to pursue the development and sale of a Product for such 2nd Indication or 3rd Indication in the Territory. If Kissei or its Authorized Sublicensee
decides to pursue the development and sale of such Product, Kissei will provide Protox with a copy of its development plan for such Product, the process set out above in this Article 6 shall apply and Kissei or its Authorized Sublicensee shall use
commercially reasonable efforts to implement such development plan. 
 6.08 Protox shall not use and develop the Modified
Protein, nor use and import the Bulk Product, nor use, develop, repack, promote, market, distribute, sell, offer to sell have sold the Product outside the Field in the Territory by itself or through its Affiliates or other licensees than Kissei
without Kissei’s prior written consent, acting reasonably. 

  
 15 

	Article 7.	Marketing and Sales 

 7.01
After receipt by Kissei of the Registration in the Territory, Kissei will start the marketing and sales of the Product in the Territory and use its commercially reasonable efforts at its own expense, consistent with accepted pharmaceutical business
practice and legal requirements, to promote, market, distribute and sell the Product with the same standard of efforts used by Kissei in the marketing of its own major products in order to obtain the appropriate sales for the Product. 

7.02 The Product shall be sold under the Trademark to be selected by Kissei. Kissei, during the term of this Agreement, shall own and
maintain the Trademark as a valid and effective trademark registration within the Territory. 
 7.03 The design of the package
of the Product may be decided by Kissei, provided that Kissei shall provide final package design of the Product as is to Protox beforehand for its review. 
  

	Article 8.	Commercial Supply 

 8.01 Protox shall supply Kissei with, and Kissei shall purchase exclusively from Protox, all of the quantities of the Bulk Product that Kissei and its Affiliates and its Authorized Sublicensees require on
a commercial basis for the repacking, marketing, distribution, promotion and sales of the Product in the Territory. The Bulk Product to be supplied shall have quality completely conformed with specifications in the current Registration. On delivery,
the Bulk Product shall have at least [*...***...] percent ([...***...]%) of its shelf life. 
 8.02 The
supply price of the Bulk Product for commercial use in the Territory to be delivered by Protox to Kissei as per paragraph 8.01 hereof shall be [...***...] percent ([...***...]%) of [...***...]. 

8.03 The details of the supply, manner of payment of the supply price, allocations of risk and all other terms typically contained in a
commercial supply agreement will be set out in a commercial supply agreement, which shall be entered into between the parties hereto. 

  
  

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 8.04 Protox shall deliver the Bulk Product together with the certificate of analysis FOB
(the airport to be agreed by the parties) and ICC Incoterms 2000 in accordance with the instructions indicated on the order form therefor submitted by Kissei to Protox as per paragraph 8.08 hereof. 

8.05 Protox warrants that all of the Bulk Product to be supplied by Protox pursuant to paragraph 8.01 hereof shall conform, upon
delivery, with the specifications and quality as set out in the Registration in the Territory or as thereafter modified, taking into account the requirements by the relevant health authorities in the Territory with respect to the Bulk Product.

 8.06 In the event that Protox is unable to supply Kissei with the quantity of Bulk Product requested by
Kissei for a calendar quarter, in whole or part, as provided in this Agreement, for more than ninety (90) days, Kissei shall have the right to manufacture or engage a Third Party to manufacture such quantities of Bulk Product that Protox is
unable to supply. To enable Kissei to manufacture or engage a Third Party to manufacture the Bulk Product, Protox, upon Kissei’s request, shall disclose the information required to manufacture and grant Kissei any and all licenses necessary for
Kissei to manufacture the Bulk Product to Kissei, its Affiliate, its Authorized Sublicensee or any Third Party appointed by Kissei with any cost for such disclosure and licenses being borne by Protox, provided that any recipients of such information
shall first agree to obligations of confidentiality in respect of such information. In the case that the Modified Protein or Bulk Product is manufactured by contract manufacturers, Protox shall give reasonable assistance to Kissei [*...***...].
 For greater certainty, any failure by Protox to supply Bulk Product or Modified Protein under this Agreement shall not give Kissei the right to terminate this Agreement and Kissei shall not be obligated to pay Protox for any such undelivered Bulk
Product. 
 8.07 In the event that any quantity of the Bulk Product supplied by Protox to Kissei hereunder does not
comply with such specifications and quality referred to in paragraph 10.02(iii) hereof, Kissei shall have the right to request the replacement thereof by the quantity of the Modified Protein and the Bulk Product specified in the specifications and
return to Protox such defective quantity of the Modified Protein and the Bulk Product in question at Protox’s expense. 

  
  

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 In the event that the quality control testing conducted by the parties of any supply of the
Bulk Product leads to significant differences of results between Protox and Kissei as to quality, and Kissei decides not to accept such lot of the Bulk Product supplied by Protox, the parties shall endeavor to settle such matter amicably and
constructively between themselves. In the event that the parties fail to settle such dispute, the parties shall agree to refer such defective quantity of the Bulk Product to an independent laboratory as agreed upon between the parties for analysis.
The results of the independent laboratory shall be final and binding upon the parties. All expenses incurred on such analysis will be borne by the party whose quality control results do not conform to the results of the independent laboratory. In
the event that the independent laboratory upholds the results of Kissei relating to the quantity of the Bulk Product being defective, then Protox shall replace at its cost and expense the entire quantity of the Bulk Product as soon as possible.

 8.08 At least one hundred and eighty (180) days prior to the beginning of each calendar quarter
(January 1, April 1, July 1 and October 1), Kissei shall submit to Protox a written estimate of its requirements for Bulk Product for each of the consecutive four (4) calendar quarters commencing from such calendar
quarter. At least ninety (90) days prior to the beginning of each calendar quarter, Kissei shall provide Protox with a firm order for the quantity of Bulk Product that Kissei wishes Protox to ship to Kissei during such calendar quarter. In the
event that the quantity of the Bulk Product ordered by Kissei in any calendar quarter exceeds [*...***...] percent ([...***...]%) of the quantity of the Bulk Product in the preceding estimate submitted by Kissei to Protox for
such calendar quarter, Protox shall not be obliged, but shall use its commercially reasonable efforts, to supply Kissei with such quantities of the Bulk Product which exceed [...***...] percent ([...***...]%). 

 

	Article 9.	Quality Control 

 9.01
Protox shall at all times during the term of this Agreement comply with the regulations concerning the manufacture of the Modified Protein and the Bulk Product, including but not limited to, GLP, ICH guidelines and cGMP, as may be required by the
relevant authorities in the Territory. Kissei shall promptly inform Protox of such requirements and changes in such requirements. In compliance with the regulations, Protox acknowledges that its manufacturing facilities for the Modified Protein and
the Bulk Product may be inspected by representatives of Kissei, the health (or other relevant) authorities in the Territory or, not more than once in every two (2) calendar years (except 

  
  

* ***Confidential Treatment Requested 

  
 18 

 
in the case of major deficiencies by its manufacturer), at the request of Kissei by an independent inspector acceptable to both parties and Protox shall afford such representatives or inspector
rights of inspection upon reasonable prior written notice and at reasonable business hours. Any expenses required for the inspection in this section that are not borne by the manufacturer shall be borne by Protox and Kissei equally, provided that
Protox shall bear all such costs in the case of major deficiencies by its manufacturer. 
 9.02 The parties hereto shall enter
into a separate agreement with regard to quality control of the Bulk Product and Modified Protein before beginning the commercial supply of the Bulk Product and Modified Protein. 

 

	Article 10.	Representations and Warranties 

 10.01 Protox does not warrant that Kissei can successfully develop, obtain the Registration on, market or sell the Product in the Territory by using and relying upon the Patents and the Technical
Information supplied by Protox hereunder. 
 10.02 Protox represents and warrants that as of the Effective Date: 

 

	 	(i)	 It has full right and authority to use the Patents and any Third Party patents as contemplated under this Agreement. 

 

	 	(ii)	 It has full right and authority to enter into this Agreement and to grant the license to Kissei as herein described during the term of this
Agreement, and this Agreement has been duly authorized and when executed and delivered will become a valid and binding contract of Protox enforceable against Protox during the term of this Agreement. 

 

	 	(iii)	 Protox shall make, develop and manufacture the Modified Protein and Bulk Product complying with related laws and regulations including but not
limited to [*...***...]. 

  

	 	(iv)	 Attached hereto as Schedule 1 is a complete and accurate list of all patents and patent applications included within the Patents and Technical
Information as of the Effective Date. 

  

	 	(v)	 Protox has not granted, transferred or reverted as of the Effective Date, and will not grant, transfer or revert during the term of this Agreement
any right, title or 

  
  

* ***Confidential Treatment Requested 

  
 19 

	 	 
status to any Third Party in the Territory relating to the Patents or Technical Information which would conflict with the rights granted to Kissei hereunder. 

 

	 	(vi)	 to the best of its knowledge, there are no patents or patent rights, trade secrets or other intellectual property rights other than the rights
granted herein that are necessary for Kissei to develop, use, offer to sell, sell, have sold and import the Modified Protein, the Bulk Product or the Product under this Agreement. To the best of Protox’s knowledge, the rights granted by Protox
hereunder do not infringe any Third Party right in the Territory. 

 10.03 Kissei represents and warrants that
as of the Effective Date: 
  

	 	(i)	 It has full right and authority to enter into this Agreement and to accept the license granted as herein described. 

 

	 	(ii)	 This Agreement has been duly authorized and when executed and delivered will become a valid and binding contract of Kissei enforceable against
Kissei during the term of this Agreement. 

  

	 	(iii)	 It has the skills, expertise and resources (financial and otherwise) required to develop, market, sell and commercialize the Product in the
Territory. 

  

	Article 11.	Intellectual Property 

11.01 Ownership of Intellectual Property 
  

	 	(i)	 Subject to the terms and conditions set forth in this Agreement, any Improvement made by employees of Kissei or any Affiliates of Kissei and any and
all patents and patent applications covering such Improvement shall be owned by Kissei or such Affiliate, and Kissei or its Affiliate shall have the sole right to take any and all steps necessary, consistent with applicable laws, to obtain the
entire right, title and interest in, to and under such Improvement and such patents and patent applications worldwide. 

  

	 	(ii)	 Subject to the terms and conditions set forth in this Agreement, any Improvement made by employees of Protox or its Affiliates and any and all
patents and patent applications covering such Improvement shall be owned by Protox or such Affiliate, and Protox or its Affiliate shall have the sole right to take any and all steps necessary, consistent with applicable laws, to obtain the entire
right, title and interest in, to and under such Improvement and such patents and patent applications worldwide. 

  
 20 

	 	(iii)	 Subject to the terms and conditions set forth in this Agreement, any Improvement made by employees of Kissei and by employees of Protox jointly and
any and all patents and patent applications covering such Improvement shall be owned by Kissei and Protox jointly, and Kissei and Protox shall take all steps necessary, consistent with applicable laws, to obtain joint ownership of the entire right,
title and interest in, to and under such Improvement and such patents and patent applications worldwide. 

11.02 Kissei acknowledges and agrees that it shall have no right, title or interest in or to Protox’s intellectual property except
for the licenses expressly set forth in this Agreement. Protox acknowledges and agrees that it shall have no right, title or interest in or to Kissei’s intellectual property except for the licenses expressly set forth in this Agreement. Nothing
in this Agreement shall be construed to grant to either party any rights or licenses to any intellectual property of the other party other than the licenses expressly set forth in this Agreement. 

11.03 Each party shall grant to the other party an exclusive, fully paid, perpetual license to Improvements owned by that party, with the
right to grant sublicenses, for use in the Field. In respect of the exclusive license to Kissei, such license shall be limited to the Territory; and in respect of the exclusive license to Protox, such license shall be limited to outside of the
Territory. To the extent that Protox grants licenses under the Patents in the Field outside the Territory, Protox shall make commercially reasonable efforts to have its licensees under any such licenses agree to allow Protox to disclose Improvements
of such licensees to Kissei for use by Kissei and its Authorized Sublicensees at no additional cost and in furtherance of the licenses granted hereunder, provided that Kissei shall reciprocate by allowing Protox to disclose the Improvements of
Kissei to any licensees who so agree for use by such licensee at no additional cost and in furtherance of the licenses granted by Protox to such licensees and their respective sublicensees. 

 

	Article 12.	Patent Prosecution and Enforcement 

 12.01 Protox shall have full responsibility, including financial responsibility, for filing, prosecuting and maintaining all the Patents in the Territory during the term of this Agreement. If Protox
elects to abandon any part of the Patents in the Territory, Protox shall provide written notice of such election to Kissei, and Kissei shall have the right, at its sole discretion, and exercisable within thirty (30) days of its receipt of such
notice from 

  
 21 

 
Protox to have such part of the Patents assigned to it and/or assume responsibility, including financial responsibility, for such part of the Patents. Protox shall give reasonable assistance to
Kissei to support prosecution and defense of such Patents (excluding financial assistance) should Kissei elect to continue prosecution. 
 12.02 In the event that a Third Party would attack the validity of any particular Patent in the Territory, then Protox shall at its own discretion promptly take such legal action as is required to defend
the validity of such particular Patent and Kissei shall give reasonable assistance (excluding financial assistance) to Protox. Kissei may be represented by counsel of its own selection at its own expense in any such legal action but Protox shall
have the right to control the suit and proceeding. 
 12.03 Kissei shall cooperate with Protox in obtaining any extension of the
term of the Patents or any other similar period of exclusivity, which may be available under the laws and regulations in the Territory. 
 12.04 Each party shall promptly notify the other party of any infringement known to it of any of the Patents or the Technical Information by a Third Party in the Territory and shall provide the other
party with any available evidence of such infringement. 
 Upon reasonable notice of infringement, Protox shall have the
opportunity to bring any suit or action for such infringement. If Protox is successful in abating the infringement, then any amount recovered from the infringer, whether by judgment, award, decree or settlement, shall first be applied to reimbursing
Protox for the expenses incurred by Protox in bringing such suit or action and the remainder shall be divided proportionately between Protox and Kissei with reference to the relative monetary injury suffered by each by reason of the past
infringement. Kissei shall, if requested by Protox and at Protox’s expense, actively assist Protox in the prosecution of such suit or action. In the event that Protox fails or is unwilling for any reason to take action with respect to such
infringement within a period of three (3) months following Kissei’s notice thereof, Kissei shall have the right to bring any appropriate suit or action against infringer at the expense of Kissei. If Kissei finds it necessary or desirable
for Protox to join as a party plaintiff, Protox shall execute all papers necessary or perform such other acts as may reasonably be required by Kissei. If Kissei is successful in abating the infringement, then any amount recovered from the infringer,
whether by judgment, award, decree or settlement, shall first be applied to reimbursing Kissei the amount incurred by Kissei in bringing such suit or action and the 

  
 22 

 
remainder, if any, shall be divided proportionately between Kissei and Protox, with reference to the relative monetary injury suffered by each by reason of the past infringement. Protox shall, if
requested by Kissei and at the expense of Kissei, actively assist Kissei in the prosecution of such suit or action, including execution of all papers reasonably necessary and performance of such other action as may be reasonably required by Kissei.

 12.05 If any complaint alleging infringement of any patent or other proprietary right is made against Kissei or its
Authorized Sublicensees, or against Protox, in the Territory, regarding the use of the Patent or Technical Information, the following procedure will be adopted: 
  

	 	(i)	 The parties will promptly notify each other on receipt of the complaint and will keep each other fully informed of the actions and positions taken
by the complainant; and 

  

	 	(ii)	 The parties will confer and agree on a mutually acceptable plan for the conduct of such litigation, provided that: 

 

	 	a.	Protox shall litigate or settle the complaint with its own expense; and 

  

	 	b.	No decision or action concerning or governing any final disposition of the complaint will be taken without full consultation with, and approval by, Kissei, not to be
unreasonably withheld. 

  

	Article 13.	Confidentiality 

 13.01
Subject to any other provisions of this Agreement, each party, for itself, its Affiliates, its licensees and its Authorized Sublicensees agrees that it shall, during the term of this Agreement and for a period of five (5) years thereafter or
ten (10) years from the Effective Date, whichever is longer, hold in confidence the Technical Information defined as “Confidential Information” hereunder and shall not disclose such Confidential Information to any Third Party nor use
such Confidential Information for any purpose other than for the purpose of this Agreement, without first obtaining the other party’s written consent. Confidential Information means any and all Technical Information, except as follows:

  

	 	(i)	 such Technical Information is a part of the public domain prior to the disclosure by the disclosing party to the other party hereunder; or

  
 23 

	 	(ii)	 such Technical Information becomes a part of the public domain after the disclosure by the disclosing party to the other party hereunder without any
breach of this Agreement; or 

  

	 	(iii)	 such Technical Information can be demonstrated to have been independently developed by the receiving party without the use of the disclosing
party’s Confidential Information; or 

  

	 	(iv)	 such Technical Information is disclosed to the receiving party by a Third Party who has the right to make such disclosure.

 Nothing contained herein shall prevent Kissei or Protox, or their respective Affiliates, licensees,
sublicensees and Authorized Sublicensees from disclosing such Confidential Information to the extent that (a) such Confidential Information is disclosed in connection with the securing of the necessary governmental authorizations for the
marketing of the Product, or (b) such Confidential Information is required to be disclosed by law or for the purpose of complying with governmental regulations, or (c) such Confidential Information is disclosed under an appropriate
confidentiality agreement to outside research institutions performing non-clinical studies, clinical studies or other studies on the Modified Protein or the Bulk Product or the Product on behalf of the receiving party, or (d) such Confidential
Information is disclosed under an appropriate confidentiality agreement to potential licensees, sublicensees or Authorized Sublicensees or (e) such Confidential Information is disclosed for due performance of this Agreement under an appropriate
confidentiality agreement. 
 In the event that either party wishes to publish any results of clinical, pre-clinical or other
studies conducted on the Modified Protein or the Bulk Product or the Product by or on behalf of such party, the party agrees to submit to the other party for its review and written approval sixty (60) days prior to the publication, manuscript
or presentation; provided that the other party shall respond with comments within sixty (60) days and provided that such approval is not unreasonably withheld. If the other party does not respond within sixty (60) days of receipt of the
publication, manuscript or presentation, such party will be deemed to have given approval for such publication. 
 13.02 The
Confidential Disclosure Agreement between the parties dated September 19, 2009, is hereby terminated and all Confidential Information disclosed by a party thereunder shall be protected by the confidentiality provisions of this Agreement,
including, without limitation, this Article 13. 

  
 24 

	Article 14.	Safety Information 

 14.01
Prior to the commencement of any clinical trials for any Bulk Product, the parties hereto shall enter into an agreement with regard to the responsibilities of each party to ensure the timely and proper exchange of safety information as to the
Modified Protein and the Bulk Product and the Product between the parties hereto. 
  

	Article 15.	Term and Termination 

15.01 This Agreement shall become effective on the Effective Date and shall, unless sooner terminated by any other provision of this
Agreement, remain in full force and effect for as long as Kissei, or its Affiliates or its Authorized Sublicensees, continues to sell or have sold the Product in the Territory. 

15.02 Notwithstanding the stipulation in paragraph 15.01 hereof, this Agreement shall terminate upon the occurrence of any of the
following itemized events: 
  

	 	(i)	 Either party commits a material default or breach of any material term in this Agreement, and the other party gives notice to the party specifying
the term or condition which is alleged as the basis of the default. If the defaulting party fails to correct or cure the default within sixty (60) days after receipt of said notice, this Agreement may be terminated by the non-defaulting party
by the giving of a final notice of termination to the defaulting party. The parties may mutually agree to extend the time period for the defaulting party to correct or cure the default; or 

 

	 	(ii)	 Either party files in any court or agency pursuant to any statute or regulation pertaining to bankruptcy, insolvency, or payment of debts, of any
state or country, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of the party or of its assets, or if either party proposes a written agreement of composition or
extension of its debts, or if either party shall be served with an involuntary petition against it, filed in any insolvency proceeding and such petition shall not be dismissed within sixty (60) days after the filing thereof, or if either party
shall propose or be a party to any dissolution or liquidation, or if either party shall make an assignment for the benefit of creditors; or 

  
 25 

	 	(iii)	 Kissei decides, at its sole discretion, to cease development or marketing of the Modified Protein and the Product in the Territory and provides
written notice to Protox thereof, provided that if such termination is after commercial launch of the Product, Kissei shall provide six (6) months prior written notice of such decision to terminate this Agreement to allow Protox to find a new
partner in the Territory. 

 15.03 Upon the termination of this Agreement for the reason of the fact of
default or breach by Kissei under paragraph 15.02(i), for the reason of any event described in paragraph 15.02(ii) occurring in relation to Kissei, or if Kissei terminates the Agreement pursuant to paragraph 15.02(iii), Kissei shall return to Protox
any documents that embody the Technical Information of Protox, without delay, including copies, excerpts and the like as disclosed by Protox under this Agreement. Further, Kissei shall assign to Protox the Trademark registration for the Product
stipulated in paragraph 7.02. 
 15.04 Upon the termination of this Agreement for the reason of the fact of default or breach by
Kissei under paragraph 15.02(i), for the reason of any event described in paragraph 15.02(ii) occurring in relation to Kissei, or if Kissei terminates the Agreement pursuant to paragraph 15.02(iii), Kissei shall notify Protox as to the amount of the
Bulk Product and the Product Kissei and its Affiliates and Authorized Sublicenses then have on hand, the sale of which would, but for the termination, be subject to royalty, and, if they so wish, Kissei, its Affiliates and its Authorized
Sublicensees shall thereupon be permitted to sell that amount of the Bulk Product and the Product, provided that Kissei shall pay the royalty due thereon to Protox. 
 15.05 Termination of this Agreement for any reason shall be without prejudice to: 
  

	 	(i)	 the obligations of confidentiality provided for in Article 13 hereof; 

 

	 	(ii)	 Protox’s right to receive all payments of the royalties accrued under Article 5 hereof (except in the event of a Protox default or breach);

  

	 	(iii)	 Protox’s right of inspecting books and account of Kissei, its Affiliates and its Authorized Sublicensees relative to the calculation of royalty
payments for the Royalty Period and thereafter occurring prior to the date of termination; provided, however, that in the event of a Protox default or breach, the right to inspect Kissei’s books and account shall only exist for one
(1) year after the date of termination, and in such case all audit rights under this Agreement shall expire on the date which is one (1) year after the date of termination; 

  
 26 

	 	(iv)	 the obligations of indemnification provided for in paragraph 21.01 and 21.02; 

 

	 	(v)	 the obligations of Kissei to provide Protox as per paragraph 3.04 hereof with the Technical Information of Kissei obtained before the termination of
this Agreement; and 

  

	 	(vi)	 any other remedies which either party may then or thereafter have hereunder or otherwise (except in the event of a Protox default or breach).

 15.06 Upon the termination of this Agreement for the reason of the fact of default or breach by Kissei
under paragraph 15.02(i), for the reason of any event described in paragraph 15.02(ii) occurring in relation to Kissei, or if Kissei terminates the Agreement pursuant to paragraph 15.02(iii), Kissei shall, and shall cause its Affiliates and its
Authorized Sublicensees to provide Protox and/or its Affiliates and/or any Third Party appointed by Protox (hereinafter referred to as the “Transferee”) with reasonable assistance, excluding financial assistance, in the transfer, to the
extent permissible under the laws or regulations of the Territory, to the Transferee of the marketing approvals and Registration or any other authorization, approval or license which Kissei, its Affiliates or its Authorized Sublicensees have with
respect to the Product in the Territory. Such assistance shall include, among others, an authorization by Kissei or its Affiliate or its Authorized Sublicensees given to the Transferee to access the marketing approvals and Registration filed by
Kissei or its Affiliates or its Authorized Sublicensees with the competent health authorities with respect to the Product in the Territory, the provision by Kissei, if necessary, to the Transferee of the Technical Information of Kissei and such
other acts which the Transferee may reasonably request Kissei in order to transfer the marketing approvals and Registration with respect to the Product in the Territory. In addition, in the event of any such termination described above, Kissei will
transfer to Protox all material, documents and the Technical Information of Kissei related to the Product, and Kissei hereby grants to Protox a paid-up, perpetual, exclusive, world-wide license to use such Technical Information and Improvements of
Kissei to make, use, sell, offer for sale, commercialize and develop the Products. 
 15.07 Upon the termination of this
Agreement for the reason of the fact of default or breach by Protox under paragraph 15.02(i), or for the reason of any event described in paragraph 15.02(ii) occurring in relation to Protox, Protox shall return to Kissei any documents that embody
the Technical Information of Kissei, without delay, including copies, excerpts and the like as disclosed by Kissei under this Agreement. 

  
 27 

 15.08 If (a) Protox commits a material default or breach of any
material term in this Agreement, (b) Kissei gives notice to Protox specifying the term or condition which is alleged as the basis of the default, (c) Protox fails to correct or cure the default within sixty (60) days after receipt of
said notice, (d) Kissei obtains an award of damages against Protox arising from such default pursuant to Article 18 (the “Award”), (e) Kissei elects not to terminate this Agreement under paragraph 15.02(i) pursuant to such
default, and (f) Protox does not pay such damages within ninety (90) days of the date of the Award, then Kissei may, in its sole discretion and for so long as the Award remains unpaid reduce the Royalty Rate to [*...***...]. In such case Protox shall disclose to Kissei the
[...***...]. The amounts withheld from Protox by Kissei under this paragraph 15.08 shall be credited to the Award until the Award has been so paid in full. Upon full payment of the Award, the foregoing Royalty Rate reduction shall end and
Kissei shall resume full royalty payments to Protox under this Agreement. 
 15.09 Upon the termination of this Agreement for
the reason of any event described in paragraph 15.02(ii) occurring in relation to Protox, Protox shall assist Kissei to obtain a direct license with Third Parties that own Third Party patents and any Patents in order for Kissei to make, develop,
use, manufacture, have manufactured, import, market, sell, offer for sale the Modified Protein, the Bulk Product and the Product in the Territory. In addition, Protox shall transfer to Kissei copies of all material, documented Technical Information
of Protox related to the Modified Proteins and the Bulk Product and trademark registered by Protox and Protox hereby grants to Kissei a paid-up, perpetual, exclusive license to use such Technical Information of Protox and trademark registered by
Protox to make, develop, use, manufacture, have manufactured, import, market, sell, offer for sale the Modified Proteins, the Bulk Product and the Product in the Territory. 

 

	Article 16.	Announcement 

 16.01 No
public announcement or other disclosure to Third Parties concerning the existence of or terms of this Agreement shall be made, either directly or indirectly, by any party to this Agreement, except as may be legally required or as may be required for
recording purposes, without first obtaining the written approval of the other party, which approval shall not be unreasonably withheld, and agreement upon the nature and text of 

  
  

* ***Confidential Treatment Requested 

  
 28 

 
such announcement or disclosure. The party desiring to make any such public announcement or other disclosure shall inform the other party of the proposed announcement or disclosure in reasonably
sufficient time prior to public release, and shall provide the other party with a written copy thereof, in order to allow such other party to comment upon such announcement or disclosure. 

 

	Article 17.	Governing Law 

 17.01 This
Agreement shall be governed by and construed in accordance with the laws of the State of New York, the United States of America, excluding its choice of law rules and excluding all and any provisions of the United Nations Convention on Contracts for
the International Sale of Goods. 
  

	Article 18.	Dispute Resolution 

 18.01
Within seven (7) Business Days of either party becoming aware of any dispute relating in any manner to this Agreement or the terms hereof, it shall prepare and submit to the Chief Executive Officer or such other senior manager as may be
nominated from time to time for such purpose (“CEOs”) of each of the parties a memorandum or statement setting out its position in respect of the matter in dispute and its reasons for adopting that position. The other party shall within
seven (7) Business Days of receipt of the memorandum or statement prepare and submit to CEOs a memorandum or statement setting out like particulars on its own behalf and the CEOs shall consider the dispute in the light of those statements.

 18.02 If the CEOs agree upon the resolution of the dispute they shall issue a joint statement setting out the agreed terms
and shall exercise powers available to them to procure that the agreed terms are fully and promptly carried into effect. If the dispute is not resolved or disposed of in accordance with this Article 18, within thirty (30) days of compliance
with the above-mentioned agreed terms, or if either party shall fail to comply with the terms of paragraph 18.2, either party may proceed by notice in writing request arbitration in accordance with the provisions of paragraph 18.03. 

18.03 Any dispute arising out of or in connection with this Agreement that is not resolved in accordance with paragraphs 18.01 and 18.02,
including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration 

  
 29 

 
in the States of New York, the United States of America, in accordance with the Arbitration Rules of the American Arbitration Association (“AAA Rules”) for the time being in force,
which rules are deemed to be incorporated by reference in this paragraph 18.03. The Tribunal shall consist of three (3) arbitrators to be appointed by the Chairman of the AAA. The language of the arbitration shall be English. The foregoing
arbitration provision shall not prevent either party from seeking injunctive relief in respect of matters arising under Article 13 of this Agreement. 
  

	Article 19.	Notices 

 19.01 Any notice
required to be given under this Agreement shall be given in the English language by sending such notices by postage-prepaid airmail or cable or telex or e-mail addressed to the other party at the address listed below: 

 

			
	 For Protox:
	  	 President or CEO

		  	 Protox Therapeutics Inc.

		  	 1210-885 West Georgia Street

		  	 Vancouver, BC, Canada

		  	 Tel: +1 604 689-0194

		  	 Fax: +1 604 688-0173

		
	 For Kissei:
	  	 Senior Director, Business Development and Licensing

		  	 Kissei Pharmaceutical Co., Ltd.

		  	 1-8-9, Nihonbashi-muromachi,

		  	 Tyuo-ku, Tokyo, Japan

		  	 Tel: +81 3 3279 2307

		  	 Fax: +81 3 3279 2541

 Either party may notify the other party of a different address to receive the other party’s notices.

  

	Article 20.	Force Majeure 

 20.01
Neither party shall be liable for any failure to perform as required by this Agreement by reason of Force Majeure, to the extent such failure to perform is due to circumstances reasonably beyond the control of such party, such as requisition or
interference by any government, state or local authorities, war, strikes or other labor 

  
 30 

 
disputes, accidents, failure to secure required governmental approval, civil disorders or acts of aggression, acts of God, energy or other conservation shortages, diseases, or other such
occurrences. 
 20.02 If and when any party is hindered in its performance of its obligations under this Agreement by reason of
Force Majeure, the performance shall be suspended during, but not longer than, the continuance of such circumstances. 
 20.03
Either party hereto whose performance of obligations has been hindered by reason of Force Majeure shall, to the extent possible, inform the other party immediately, and shall use its commercially reasonable efforts to overcome the effect of the
Force Majeure. 
  

	Article 21.	Indemnification and Insurance 

 21.01 Protox shall defend, indemnify and hold Kissei, its Affiliate and Authorized Sublicensees and all the officers, directors, trustees, students, agents and employees, thereof (the “Kissei
Indemnified Parties”) harmless against all liabilities, damages, losses, costs, or expenses (including but not limited to all associated legal fees and expenses actually incurred) resulting from any Third Party claim made or suit brought
against the Kissei Indemnified Parties, to the extent the same is arising from the exercise of Kissei’s rights and obligations under this Agreement, including without limitation any damages, losses, consequential or otherwise, arising in any
manner from: 
  

	 	(i)	 breach of its representations and warranties stipulated in paragraph 10.02 and other material breach of any term of this Agreement on the part of
Protox or its Affiliates or licensees or any of its or their officers, directors, or employees (including without limitation any express representation or warranty made herein), 

 

	 	(ii)	 the negligence, recklessness, or willful misconduct or fraud on the part of Protox or its Affiliates or licensees or any of its or their officers,
directors, or employees in the performance of this Agreement, 

  

	 	(iii)	 any product liability claim related to the Modified Protein and the Bulk Product and attributable to the conduct of Protox, its Affiliates or
licensees, which is made prior to the Effective Date or during the term of this Agreement in and outside the Territory, 

  
 31 

	 	(iv)	 any product liability claim related to the Product developed, distributed or sold by Kissei during the term of this Agreement in the Territory,
which is resulting from the Modified Protein and the Bulk Product provided by Protox hereunder, or 

  

	 	(v)	 any clinical studies and marketing activities conducted by or on behalf of Protox or its Affiliates or its licensees prior to the Effective Date and
during the term of this Agreement in or outside the Territory. 

 However, Protox shall not be required to
indemnify the Kissei Indemnified Parties to the extent that any such claims arose out of or resulting from the breach, negligence, recklessness or willful misconduct or fraud of the Kissei Indemnified Parties. 

21.02 Kissei shall defend, indemnify and hold Protox and its Affiliates, and their respective licensors and all the officers, directors,
trustees, students, agents and employees thereof (the “Protox Indemnified Parties”) harmless against all liabilities, damages, losses, costs, or expenses (including but not limited to all associated legal fees and expenses actually
incurred) resulting from any Third Party claim made or suit brought against the Protox Indemnified Parties, to the extent the same is arising from the exercise of Protox’s rights and obligations under this Agreement, including without
limitation any damages, losses, consequential or otherwise, arising in any manner from: 
  

	 	(i)	 breach of its representations and warranties stipulated in paragraph 10.03 and other material breach of any term of this Agreement on the part of
Kissei or its Affiliates or its Authorized Sublicensees or any of its or their officers, directors, or employees (including without limitation any express representation or warranty made herein), 

 

	 	(ii)	 the negligence, recklessness, or willful misconduct or fraud on the part of Kissei or its Affiliates or its Authorized Sublicensees or any of its or
their officers, directors, or employees in the performance of this Agreement, 

  

	 	(iii)	 any product liability claim related to the Product developed, distributed and sold by Kissei during the term of this Agreement in the Territory,
which claim is not resulting from the Modified Protein and the Bulk Product provided by Protox hereunder, or 

  

	 	(iv)	 any clinical studies and marketing activities conducted by or on behalf of Kissei or its Affiliates or its Authorized Sublicensees during the term
of this Agreement in the Territory. 

  
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 However, Kissei shall not be required to indemnify the Protox Indemnified Parties to the
extent that any such claims arose out of or resulting from the breach, negligence, recklessness or willful misconduct or fraud of the Protox Indemnified Parties. 
 21.03 Both parties will procure and maintain adequate insurance in order to be able to cover claims under this Agreement in the Territory, including, without limitation, product liability insurance in the
minimum amount of five million dollars ($5,000,000) per claim. Upon request, each Party shall provide proof of adequate coverage to the other party. 
  

	Article 22.	Limitation of Liability and Disclaimer of Warranty. 

 22.01 IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES BASED UPON BREACH OF WARRANTY OR CONDITION, BREACH OF CONTRACT, NEGLIGENCE, STRICT TORT OR ANY OTHER
LEGAL THEORY. SUCH EXCLUDED DAMAGES INCLUDE BUT ARE NOT LIMITED TO LOSS OF PROFITS AND LOSS OF SAVING OR REVENUE. 
 22.02
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH PARTY EXPRESSLY DISCLAIMS, WAIVES, RELEASES, AND RENOUNCES ANY WARRANTY, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY WARRANTY OF MERCHANTABILITY, DURABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, AND WARRANTIES ARISING FROM USAGE OF TRADE OR COURSE OF DEALING, RELATING TO PRODUCT OR OTHER PRODUCT OR SERVICE PROVIDED BY EITHER PARTY TO THE OTHER HEREUNDER. 

 

	Article 23.	The University Agreements 

23.01 The parties understand that the terms and conditions of the University Agreements are incorporated by reference into this Agreement
on the Effective Date. Protox shall not amend, in any manner, any terms and conditions of the University Agreements in a manner that adversely affects Kissei without the prior written consent of Kissei, which shall not be unreasonably withheld or
delayed by Kissei. 
 23.02 The parties understand that UVIDC and The Johns Hopkins University and their Affiliates and the
inventors named in the University Agreements shall be third party 

  
 33 

 
beneficiaries to this Agreement (but, for greater certainty, shall not be parties to this Agreement), and shall indirectly have or acquire any rights resulting from the performance of the
obligations of Kissei herein, with no reciprocal obligation on UVIDC, The John Hopkins University, their Affiliates or the inventors named in the University Agreements to Kissei and its Affiliates or Authorized Sublicensees. 

23.03 Kissei shall not use the name of UVIDC, The University of Victoria, The Johns Hopkins University or The Johns Hopkins Health System
or any of its constitutive parts, such as the Johns Hopkins Hospital or any contraction thereof or the name of the inventors named in the University Agreements in any advertising, promotional, sales literature or fundraising documents without the
prior written consent from an authorized representative of such third parties. 
  

	Article 24.	Non-assignability 

 24.01
This Agreement is personal to the parties hereto and shall not be assignable to any Third Party by either party without the prior written consent of the other party except that this Agreement shall be assignable without consent in the event of a
sale of all or substantially all of the assets to which this Agreement relates. 
  

	Article 25.	Currency 

 25.01 All
references to currency, dollar or $ are deemed to mean lawful money of the United States. 
  

	Article 26.	Original Text 

 26.01 This
text of this Agreement in the English language shall be the original text, and any text in another language, even if such a text is made by translation of the text in English language or prepared by any of the parties hereto for the purpose of its
own convenience, shall have no meaning for any purpose between the parties hereto. 
  

	Article 27.	Entire Agreement 

 27.01
This Agreement, including the Schedules attached hereto, shall constitute the entire agreement between the parties hereto concerning the subject matter hereof and shall supersede and replace any other agreements, whether oral or written, express or
implied, 

  
 34 

 
and may not be changed or modified or revised except as specifically agreed upon by the parties in writing. 
  

	Article 28.	Reparability and Applicable Laws 

 28.01 In the event any portion of this Agreement shall be held illegal, void or ineffective, the remaining portions hereof shall remain in full force and effect. 

28.02 If any of the terms or provisions of this Agreement are in conflict with any applicable statute or rule or law, then such terms or
provisions shall be deemed inoperative to the extent that they may conflict therewith and shall be deemed to be modified to conform to such statute or rule or law. 
 28.03 Each of the parties shall comply with all applicable laws, rules and regulations in exercising their rights and discharging their duties under this Agreement. 

 

	Article 29.	Counterparts 

 29.01 This
Agreement may be executed by the parties hereto in separate counterparts and by facsimile transmission, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same
instrument. 

  
 35 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in
duplicate counterparts by their duly authorized officers, each fully executed copy hereof to be deemed as original, as of the date and year first above written. 

 

			
	Protox Therapeutics Inc.
		
	 By:
	 	 /s/ Fahar Merchant

		 	 Fahar Merchant

		 	 President and Chief Executive Officer

		
	 By:
	 	 /s/ Frank Holler

		 	 Frank Holler

		 	 Chairman, Board of Directors

	
	Kissei Pharmaceutical Co., Ltd.
		
	 By:
	 	 /s/ Mutsuo Kanzawa

		 	 Mutsuo Kanzawa

		 	 President and Chief Executive Officer

  
 36 

 Schedule 1 
 The Patents 
  

	1.	 “Method of treating or preventing benign prostatic hyperplasia using modified pore-forming proteins” (BPH) 

 

			
	 US Provisional Application No. 60/690,269
	  	 Filed June 14, 2005

	 PCT/CA2006/000971
	  	 Filed June 14, 2006

	 WO 2006/133553
	  	 Published Dec. 21, 2006

 In Japan; Patent / Application No. 2008-516088 (Pending) 

 

	2.	 “Proaerolysin containing protease activation sequences and methods of use for treatment of prostate cancer” (Prostate Cancer)

  

			
	 US Provisional Application No. 60/314,613
	  	 Filed Aug. 24, 2001

	 PCT/US02/27061
	  	 Filed Aug. 23, 2002

	 WO 03/018611
	  	 Published Mar. 6, 2003

 In Japan; Patent No. 4319908 

 

	3.	 “Method and composition for treating prostatitis” (Prostatitis) 

 

			
	 US Provisional Application No. 61/122,709
	  	 Filed Dec. 15, 2008

	 PCT — not yet assigned
	  	 Filed Dec. 15, 2009

 As of the Effective Date, this patent has not entered national phase. 

 

	4.	 Patent application to cover [*...***...]. 

  
  

* ***Confidential Treatment Requested 

  
 37

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