Document:

2003 Employee Stock Purchase Plan

 Exhibit 10.31 
  
 XCYTE THERAPIES, INC. 
  
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 The following constitute the provisions of the 2003 Employee Stock Purchase Plan of Xcyte Therapies, Inc. 
  
 1. Purpose. The purpose of the Plan is to provide employees of
the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code. The
provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in the Plan and application of Plan rules in a manner consistent with the requirements of that section of the Code. 
  
 2. Definitions. 
  
 (a) “Board” means the Board of Directors of the
Company. 
  
 (b) “Code” means the Internal
Revenue Code of 1986, as amended. 
  
 (c) “Common
Stock” means the Common Stock of the Company. 
  
 (d)
“Company” means Xcyte Therapies, Inc., a Delaware corporation. 
  
 (e) “Compensation” means all earnings reported as wages on Form W-2, including straight time pay, payments for overtime, shift premiums, incentive compensation, incentive payments, bonuses,
commissions and other compensation, but excluding compensation recognized in connection with the exercise of options or stock purchase rights with respect to Common Stock. 
  
 (f) “Continuous Status as an Employee” means the absence of any interruption or termination of
service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period
of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) transfers between locations of the
Company, between the Company and its Subsidiaries or between the Company’s Subsidiaries. Continuous Status as an Employee shall be considered interrupted in the case of a reduction of an individual’s customary employment to fewer than
twenty (20) hours per week (other than on account of a leave specified in the preceding sentence). 
  
 (g) “Contributions” means all amounts credited to the account of a participant pursuant to the Plan. 
  
 (h) “Corporate Transaction” means (i) a sale of all
or substantially all of the Company’s assets, (ii) any merger, consolidation or other business combination transaction of the 
  

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Company with or into another corporation, entity or person, other than a transaction in which the holders of at least a majority of the shares of voting
capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the
total voting power represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, or (iii) the direct or indirect acquisition (including by way of a tender or exchange
offer) by any person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company. 

 
 (i) “Designated Subsidiaries” means the
Subsidiaries which have been designated by the Board from time to time in its sole discretion as eligible to participate in the Plan; provided, however, that the Board shall only have the discretion to designate Subsidiaries if the issuance of
options to such Subsidiary’s Employees pursuant to the Plan would not cause the Company to incur materially adverse accounting charges. 
  
 (j) “Employee” means any person, including an Officer, who is treated as an employee of the Company for payroll tax purposes and
who is customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year by the Company or one of its Designated Subsidiaries. 
  
 (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (l) “Fair Market Value” means, as of any date, the
value of Common Stock determined by the Board in its discretion provided that, to the extent the Common Stock is trading on the Nasdaq National Market, (i) the Fair Market Value as of an Offering Date shall be the closing sales price of the Common
Stock as reported by the Nasdaq National Market for the last trading day immediately preceding the Offering Date, and (ii) the Fair Market Value of the Common Stock as of a Purchase Date shall be the closing sales price of the Common Stock as
reported on the Nasdaq National Market for the Purchase Date or, if the Common Stock is not traded on such date, the last trading day immediately preceding the Purchase Date, in each case as reported in The Wall Street Journal. For purposes
of the Offering Date for the First Offering Period under the Plan, the Fair Market Value of a Share of the Common Stock of the Company shall be the “Price to Public” as set forth in the final prospectus filed with the Securities and
Exchange Commission pursuant to Rule 424 under the Securities Act of 1933, as amended. 
  
 (m) “First Offering Period” means the first Offering Period of the Plan which shall commence on the effective date of the Company’s Registration Statement on Form S-1 for the initial
public offering of the its Common Stock (the “IPO Date”). 
  
 (n) “Offering Date” means the first Trading Day of each Offering Period of the Plan, except that in the case of an individual who becomes an eligible Employee after the first Trading Day of an
Offering Period but prior to the first day of the fourth month of such Offering Period, the term “Offering Date” with respect to such individual means the first Trading Day of the fourth month of such Offering Period; provided, however,
that with respect to the First 
  

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Offering Period, in the case of an individual who becomes an eligible Employee after the first Trading Day of such Offering Period but prior to
August 1, 2004, the term “Offering Date” with respect to such individual means August 1, 2004 (rather than the first Trading Day of the fourth month of such Offering Period), or at such other fixed date as may
be determined by the Board of Directors. 
  
 (o)
“Offering Period” means a period of six (6) months, except for the First Offering Period as set forth in Section 3 of the Plan, and except for Offering Periods which are of shorter duration as a result of a participant’s
applicable Offering Date with respect to such Offering Period being an interim Offering Date pursuant to Section 2(n). The duration and timing of Offering Periods may be changed pursuant to Sections 3, 17 and 18 of the Plan, provided that no
Offering Period shall exceed a period of twenty-seven (27) months. 
  
 (p) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (q) “Plan” means this 2003 Employee Stock Purchase
Plan. 
  
 (r) “Purchase Date” means the
last Trading Day of each Offering Period of the Plan. 
  
 (s)
“Purchase Price” means with respect to a Purchase Period an amount equal to 85% of the Fair Market Value (as defined in Section 2(l) above) of a Share of Common Stock on the applicable Offering Date or on the Purchase Date,
whichever is lower; provided, however, that in the event (i) of any increase in the number of Shares available for issuance under the Plan as a result of a stockholder-approved amendment to the Plan, and (ii) all or a portion of such additional
Shares are to be issued with respect to one or more Offering Periods that are underway at the time of such increase (“Additional Shares”), and (iii) the Fair Market Value of a Share of Common Stock on the date of such increase (the
“Approval Date Fair Market Value”) is higher than the Fair Market Value on the Offering Date for any such Offering Period, then in such instance the Purchase Price with respect to Additional Shares shall be 85% of the Approval Date
Fair Market Value or the Fair Market Value of a Share of Common Stock on the Purchase Date, whichever is lower. 
  
 (t) “Share” means a share of Common Stock, as adjusted in accordance with Section 17 of the Plan. 
  
 (u) “Subsidiary” means a corporation, domestic or
foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  
 (v) “Trading Day” means a day on which the U.S.
national stock exchanges and the Nasdaq System are open for trading. 
  
 3. Offering Periods. The Plan shall be implemented by a series of Offering Periods of approximately six (6) months duration, with new Offering Periods commencing on or about 
  

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May 1 and November 1 of each year and ending, respectively, on the next following April 30 and October 31 (or at such other time or times as may be
determined by the Board of Directors). Notwithstanding the above, the First Offering Period shall begin on the IPO Date and continue until September 30, 2004 (or at such other fixed dates as may be determined by the Board of Directors) and no new
Offering Period shall begin until the First Offering Period has ended. Offering Periods shall occur on a continuing, successive basis until the Plan is terminated in accordance with Section 18 or 21 hereof. The last Trading Day of each Offering
Period shall be the “Purchase Date” for such Offering Period. The Board of Directors of the Company shall have the power to change the timing, duration and/or the frequency of Offering Periods with respect to future Offering Periods
if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected. 
  
 4. Eligibility. 
  
 (a) First Offering Period. With respect to the first Offering Date of the First Offering Period, each individual who is an Employee as of
the date immediately preceding the IPO Date shall be eligible to be automatically granted an option to participate in such First Offering Period and these individuals shall thereby be automatically enrolled in the First Offering Period (subject to
the requirements of Sections 5(a) and 6(a)(i) below). 
  
 (b)
Subsequent Offering Periods. With respect to Offering Dates occurring after the IPO Date, any individual who is an Employee as of an applicable Offering Date shall be eligible to participate in such Offering Period, subject to the
requirements of Section 5 and to the limitations imposed by the Plan and Code Section 423(b). 
  
 5. Participation; Subscription Agreement. 
  
 (a) First Offering Period. With respect to the First Offering Period, an Employee eligible under Section 4(a) above, shall be granted an
option under Section 6(a)(i) below, and shall be entitled to continue his or her participation in such Offering Period only if he or she submits to the Company’s payroll office (or its designee) a properly completed subscription agreement
authorizing payroll deductions in accordance with Section 5(c) below in the form of subscription agreement provided by the Board for such purpose (i) no earlier than the effective date of the filing of the Company’s Registration Statement on
Form S-8 with respect to the Shares issuable under the Plan and (ii) no later than thirty (30) days following the date on which the Form S-8 becomes effective (such period referred to as the “Enrollment Period”). A
participant’s failure to submit the subscription agreement during the Enrollment Period pursuant to this Section 5(a) shall result in the automatic termination of his or her participation in the First Offering Period in accordance with Section
10(a). Payroll deductions shall commence with respect to the First Offering Period as of the first payday following the expiration of the Enrollment Period or on such other payday as is specified by the Board. The Board will provide notice to
participants granted an option under Section 6(a)(i) above as to the expiration of the Enrollment Period. 
  
 (b) Subsequent Offering Periods. An Employee who is eligible to participate in the Plan under Section 4(b) above may become a participant by
(i) submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Board prior to 
  

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an applicable Offering Date, a properly completed subscription agreement authorizing payroll deductions in the form provided by the Board for such purpose,
or (ii) following an electronic or other enrollment procedure prescribed by the Board. 
  
 (c) Requirements as to Subscription Agreement and Participation. 
  
 (i) A participant’s subscription agreement shall set forth the percentage of the participant’s Compensation to be paid as Contributions
pursuant to the Plan, which percentage shall be a whole percentage and shall be not less than one percent (1%) and not more than fifteen percent (15%) (or such other maximum percentage as the Board may establish from time to time before an Offering
Period) of such participant’s Compensation on each payday during the Offering Period. 
  
 (ii) A participant’s subscription shall be effective for the Offering Period with respect to which it is filed, and also shall be automatically effective for each successive Offering Period that commences after
the end of the Offering Period for which it is filed, unless the participant changes his or her Contribution rate for the next Offering Period by following the procedures set forth in Section 5(c)(iii) below, withdraws from the Plan in accordance
with Section 10, or is otherwise ineligible to participate in the next Offering Period. 
  
 (iii) While a participant may not change his or her rate of Contributions during an ongoing Offering Period, a participant may discontinue his or her participation in the Plan as provided in Section 10 at any time
prior to a Purchase Date. In addition, subject to Section 5(b) above, a participant may change his or her rate of Contributions under the Plan with respect to the next Offering Period by filing a new subscription agreement with the Company on or
prior to the tenth (10th) business day prior to the first day of such next Offering Period (or by such other date as
is specified by the Board) or by following an electronic or other procedure designated by the Board, in each case specifying the new Contribution rate that shall apply with respect to such Offering Period. Such change in Contribution rate will be
effective as of the first payroll period following commencement of the next Offering Period. Notwithstanding the above, with respect to the First Offering Period, submission by a participant of a subscription agreement authorizing payroll deductions
at a rate that is less than the maximum rate at which they would be entitled to participate under the Plan shall be permitted. Payroll deductions for the First Offering Period shall commence on the first payday on or following the end of the
Enrollment Period (or on such other date as the Board may specify). 
  
 6. Grant of Option; Limitations. 
  
 (a) Grant of Option. 
  
 (i)
First Offering Period. With respect to the First Offering Period, each eligible Employee shall automatically be granted an option to purchase on the Purchase Date for the First Offering Period a number of Shares of the Company’s
Common Stock determined by dividing the maximum amount permitted under the Plan (which amount shall be a percentage of such Employee’s Compensation) with respect to such Offering Period, by the applicable Purchase Price, subject to the
limitations in subsections (c), (d) and (e) of this 
  

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 Section 6 (which limitations shall be applied in a manner that permits granting of an option of less than the maximum
amount specified in this Section 6(a)(i) in order to conform to the limitations of such subsections). 
  
 (ii) Subsequent Offering Periods. Except with respect to the First Offering Period, and subject to the limitations in subsections (c), (d)
and (e) of this Section 6 and Section 11(b), on the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on each Purchase Date within such Offering Period a number
of Shares of the Company’s Common Stock determined by dividing such Employee’s Contributions accumulated prior to such Purchase Date and retained in the participant’s account as of the Purchase Date by the applicable Purchase Price.

  
 (b) Acceptance of Option Grant. An Employee may
accept the grant of such option (i) with respect to the First Offering Period, by submitting a properly completed subscription agreement in accordance with the requirements of Section 5(a) above on or before the last day of the Enrollment Period,
and (ii) with respect to subsequent Offering Periods, by electing to participate in the Plan in accordance with the requirements of Section 5(b). Exercise of the option shall occur as provided in Section 8 below. 
  
 (c) Limit on Number of Shares Purchased. Notwithstanding the
above, the maximum number of Shares an Employee may purchase during each Offering Period (including the First Offering Period) shall be 2,500 Shares (before giving effect to a stock split effected in connection with the Company’s initial public
offering and subject to any further adjustment pursuant to Section 17 below), and provided further that such purchase shall be subject to the limitations set forth in Sections 11(b). In addition to the limits on an Employee’s participation in
the Plan set forth herein, the Board in its sole discretion may establish new or change existing limits on the number of Shares an Employee may elect to purchase with respect to any Offering Period if such limit is announced at least ten (10) days
prior to the scheduled beginning of the first Offering Period to be affected. 
  
 (d) Limit on Value of Shares Purchased. Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan if such option would permit his or her rights to
purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) of the Fair Market Value (as defined in
Section 2(l) above) of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 (e) 5% Owner Limit. Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan if,
immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any subsidiary of the Company. 
  

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 7. Method of Payment for Purchase of Shares. This Plan shall be operated as a payroll
deduction plan. All payroll deductions made by a participant shall be credited to his or her account under the Plan. A participant may not make any additional payments into such account other than through the payroll deduction feature of the Plan.

  
 (a) Limitation on Payroll Deductions.
Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and the limitations of Section 6, a participant’s payroll deductions may be decreased by the Company to zero percent (0%) at any time during
an Offering Period. Payroll deductions shall re-commence at the rate provided in such participant’s subscription agreement at the beginning of the next Offering Period or, in the case of the limitation of Section 6(d), the first Offering Period
which is scheduled to end in the following calendar year, unless the participant withdraws in accordance with Section 10, or is otherwise ineligible to participate in such Offering Period. 
  
 (b) Tax Withholding. At the time an option is exercised, in
whole or in part, or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any,
which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet
applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the participant. 
  
 (c) Interest. No interest shall accrue on the Contributions of
a participant in the Plan. 
  
 8. Exercise of
Option. 
  
 (a) During his or her lifetime, a
participant’s option to purchase Shares hereunder is exercisable only by him or her. 
  
 (b) Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares will be exercised automatically on the Purchase Date of an Offering Period, and unless otherwise
limited by Section 6 or Section 11(b), the maximum number of full Shares subject to the option will be purchased at the applicable Purchase Price with the accumulated Contributions in the participant’s account. 
  
 (c) No fractional Shares shall be purchased. Any payroll deductions
accumulated in a participant’s account which are not sufficient to purchase a full Share shall be retained in the participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the participant as provided in
Section 10 below. Any other amounts left over in a participant’s account after a Purchase Date shall be returned to the participant. 
  
 9. Delivery. The Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant as soon as
administratively practicable on or following the Purchase Date. As promptly as administratively practicable after each Purchase Date of each 
  

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 Offering Period, the Company shall arrange the delivery to each participant, as appropriate, a certificate representing
the Shares purchased upon exercise of his or her option. Notwithstanding the foregoing, the Board may require that all Shares purchased under the Plan be held in an account (the participant’s “ESPP Stock Account”) established
in the name of the participant (or in the name of the participant and his or her spouse, as designated by the participant on his or her subscription agreement), subject to such rules as determined by the Board and uniformly applied to all
participants, including designation of a brokerage or other financial services firm (an “ESPP Broker”) to hold such Shares for the participant’s ESPP Stock Account with registration of such Shares in the name of such ESPP
Broker for the benefit of the participant (or for the benefit of the participant and his or her spouse, as designated by the participant on his or her subscription agreement). 
  
 10. Withdrawal from Plan. 
  
 (a) Withdrawal not in connection with Interruption or Termination of Continuous Service Status.

  
 (i) A participant may withdraw all but not less than all the
Contributions credited to his or her account under the Plan at any time prior to a Purchase Date by giving written notice to the Company. All of the participant’s Contributions credited to his or her account will be paid to him or her promptly
after receipt of his or her notice of withdrawal and his or her option for the current period will be automatically terminated, and no further Contributions for the purchase of Shares will be made during the Offering Period. With respect to the
First Offering Period, a participant who fails to submit a subscription agreement prior to termination of the Enrollment Period, in accordance with Section 5(a) shall be deemed to have withdrawn from the Plan under this Section 10(a). 
  
 (ii) A participant’s withdrawal from an Offering Period will not have
any effect upon his or her eligibility to participate in a succeeding Offering Period or in any similar plan which may hereafter be adopted by the Company. 
  
 (b) Withdrawal in connection with Interruption or Termination of Continuous Service Status. In the event an Employee fails to remain in
Continuous Service Status during the Offering Period in which he or she is participating, he or she will be deemed to have elected to withdraw from the Plan and any option he or she holds to purchase Shares under the Plan terminated. Upon
termination of a participant’s Continuous Service Status prior to the Purchase Date of an Offering Period for any reason, including death or retirement, the Contributions credited to his or her account will be returned to him or her or, in the
case of his or her death, to the person or persons entitled thereto under Section 13. 
  
 11. Stock. 
  
 (a) Subject to adjustment as provided in Section 17, the maximum number of Shares which shall be made available for sale under the Plan shall be 600,000 Shares, plus an annual increase on the first day of each of the Company’s fiscal
years beginning in 2005 and ending in 2010 equal to the lesser of (i) 300,000 Shares, (ii) one percent (1%) of the Shares 
  

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 outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of Shares as is
determined by the Board. 
  
 (b) If the Board determines that, on
a given Purchase Date, the number of Shares with respect to which options are to be exercised may exceed (i) the number of Shares that were available for sale under the Plan on the Offering Date of the applicable Offering Period, or (ii) the number
of Shares available for sale under the Plan on such Purchase Date, the Board may in its sole discretion provide (x) that the Company shall make a pro rata allocation of the Shares available for purchase on such Offering Date or Purchase Date, as
applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Purchase Date, and continue all Offering Periods
then in effect, or (y) that the Company shall make a pro rata allocation of the Shares available for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase Common Stock on such Purchase Date, and terminate any or all Offering Periods then in effect pursuant to Section 18 below. The Company may make pro rata allocation of
the Shares available on the Offering Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company’s stockholders subsequent to such
Offering Date. 
  
 (c) The participant shall have no dividend,
voting or other shareholder rights in Shares covered by any option to acquire Shares under the Plan until such option has been exercised in accordance with Section 8. 
  
 (d) Shares to be delivered to a participant under the Plan will be registered in the name of the participant or in the name
of the participant and his or her spouse; provided that if the Board has determined that Shares shall be held in an ESPP Stock Account held by an ESPP Broker in accordance with Section 9, Shares shall be registered in the name of such ESPP Broker
for the benefit of the participant (or the participant and his or her spouse, as designated by the participant in his or her subscription agreement). 
  
 12. Administration. The Board, or one or more committees named by the Board, shall supervise and administer the Plan and shall have full
power to adopt, amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe and interpret the Plan, and to make all other determinations necessary or advisable for
the administration of the Plan. The Board may, in its sole discretion and on such terms and conditions as it may provide, delegate to one or more individuals all or any part of its authority and powers under the Plan. All determinations,
interpretations, constructions, findings and determinations made by the Board (or its committee or other designee) with respect to the Plan shall be binding on all parties. 
  
 13. Designation of Beneficiary. 
  
 (a) A participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the
participant’s account under the Plan in the event of 
  

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 such participant’s death subsequent to the end of a Purchase Period but prior to delivery to him or her of such
Shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to the Purchase Date of an
Offering Period. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective. Such designation of beneficiary shall be on such form and delivered in such manner
as determined by the Company, and shall be effective upon acknowledgement of receipt by the Company. 
  
 (b) A designation of beneficiary may be changed by the participant (and his or her spouse, if any) at any time by written notice. In the event of the
death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such Shares and/or cash to the executor or Board of the estate of the
participant, or if no such executor or Board has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or
if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 14. Transferability. Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an option
or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in this Section 14) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10. 
  
 15. Use of Funds. The Company may use all Contributions received or held by the Company under the Plan for any
corporate purpose, and the Company shall not be obligated to segregate such Contributions. 
  
 16. Reports. Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually, which statements will set forth the
amounts of Contributions, the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 
  
 17. Adjustments Upon Changes in Capitalization; Corporate Transactions. 
  
 (a) Adjustment. Subject to any required action by the
stockholders of the Company, the number of Shares covered by each option under the Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but have not yet been placed under option
(collectively, the “Reserves”), as well as the maximum number of Shares which may be purchased by a participant in an Offering Period, the number of Shares set forth in Section 11(a)(i) above, and the per Share Purchase Price
covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock (including any such 
  

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 change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company), or any
other increase or decrease in the number of Shares effected without receipt of consideration by the Company; provided however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without
receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an option. 
  
 (b) Corporate Transactions. 
  
 (i) In the event of a dissolution or liquidation of the Company, any
Offering Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise provided by the Board. In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an
equivalent option shall be substituted by the successor corporation or a parent or Subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute equivalent options for options outstanding under
the Plan, each Offering Period then in progress shall be shortened and a new Purchase Date shall be set (the “New Purchase Date”), as of which date any Offering Period then in progress will terminate. The New Purchase Date shall be
on or before the date of consummation of the Corporate Transaction and the Board shall notify each participant in writing, at least ten (10) days prior to the New Purchase Date, that the Purchase Date for his or her option has been changed to the
New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10. 
  
 (ii) For purposes of this Section 17, an option granted under the Plan shall
be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same
number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder
of the number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 17); provided however that if the consideration received
in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received upon
exercise of the option to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per share consideration received by holders of Common Stock in the transaction. 
  
 (c) Other Adjustments. The Board may, if it so determines in
the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of 
  

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 Shares of its outstanding Common Stock, and in the event of the Company’s being consolidated with or merged into any
other corporation. 
  
 18. Amendment or
Termination. 
  
 (a) The Board may at any time and
for any reason terminate or amend the Plan. Except as provided in Section 17 and this Section 18, no such termination of the Plan may affect options previously granted, provided that the Plan or an Offering Period may be terminated by the Board on a
Purchase Date or by the Board’s setting a new Purchase Date with respect to an Offering Period then in progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and its
stockholders, or if continuation of the Plan and/or the Offering Period would cause the Company to incur adverse accounting charges as a result of a change after the effective date of the Plan in the generally accepted accounting rules applicable to
the Plan. Except as provided in Section 17 and in this Section 18, no amendment to the Plan shall make any change in any option previously granted which adversely affects the rights of any participant. In addition, to the extent necessary to comply
with Rule 16b-3 under the Exchange Act, or under Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such a manner and to such
a degree as so required. 
  
 (b) Without stockholder consent and
without regard to whether any participant rights may be considered to have been adversely affected, the Board (or its committee) shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount of
Contributions withheld from a participant’s Compensation during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated
by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan. 
  
 19. Notices. All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the
Company at the location, or by the person, designated by the Company for the receipt thereof. 
  
 20. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall comply
with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, applicable state securities laws and the
requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  

 12 

 As a condition to the exercise of an option, the Company may require the person exercising such option to
represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation
is required by any of the aforementioned applicable provisions of law. 
  
 21. Term of Plan; Effective Date. The Plan shall become effective upon the IPO Date. It shall continue in effect for a term of twenty (20) years unless sooner terminated under Section 18. 
  

 13 

 XCYTE THERAPIES, INC. 
  
 2003 EMPLOYEE STOCK PURCHASE PLAN 
 SUBSCRIPTION AGREEMENT 
  
 New Election              
 Change of Election
             
  
 1. I,
                                        ,
hereby elect to participate in the Xcyte Therapies, Inc. 2003 Employee Stock Purchase Plan (the “Plan”) for the Offering Period commencing
                    ,          , and subscribe to purchase shares of the Company’s Common
Stock in accordance with this Subscription Agreement and the terms of the Plan. 
  
 2. I elect to have Contributions in the amount of         % of my Compensation, as those terms are defined in the Plan, applied to this purchase. I understand that this
amount must not be less than 1% and not more than 15% of my Compensation during the Offering Period. (Please note that no fractional percentages are permitted). 
  

3. I hereby authorize payroll deductions from each paycheck during the Offering Period at the rate stated in Item 2 of this Subscription Agreement. I
understand that all payroll deductions made by me shall be credited to my account under the Plan and that I may not make any additional payments into such account. I understand that all payments made by me shall be accumulated for the purchase of
shares of Common Stock at the applicable purchase price determined in accordance with the Plan, and that no interest shall accrue on such amounts at any time. I further understand that, except as otherwise set forth in the Plan, shares will be
purchased for me automatically on the Purchase Date of each Offering Period unless I become ineligible to continue participating in the Plan or I otherwise withdraw from the Plan by giving written notice to the Company for such purpose. 

 
 4. I understand that I may discontinue at any time prior to the Purchase
Date my participation in the Plan as provided in Section 10 of the Plan. I understand that I may change the rate of deductions for future Offering Periods by filing a new Subscription Agreement, and any such change will be effective as of the
beginning of the next Offering Period. In addition, I acknowledge that, unless I withdraw from the Plan as provided in Section 10 of the Plan or otherwise become ineligible to participate in the Plan, my election as set forth above will continue to
be effective for each successive Offering Period. 
  
 5. I have
received a copy of the Company’s most recent description of the Plan and a copy of the complete “Xcyte Therapies, Inc. 2003 Employee Stock Purchase Plan.” I understand that my participation in the Plan is in all respects subject to
the terms of the Plan. 
  
 6. Shares purchased for me under the
Plan should be issued in the name(s) of (name of employee or employee and spouse only): 

  

	

	  

  
 7. I
understand that this tax summary is only a summary and is subject to change. I further understand that I should consult a tax advisor concerning the tax implications of the purchase and sale of stock under the Plan. 
  
 Early Disposition (Prior to Expiration of Holding Periods): I
understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period during which I purchased such shares) or within 1 year after the Purchase Date, I will be
treated for federal income tax purposes as having received ordinary compensation income at the time of such disposition in an amount equal to the excess of the fair market value of the shares on the Purchase Date over the price which I paid for the
shares, regardless of whether I disposed of the shares at a price less than their fair market value at the Purchase Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss. 

 
 I hereby agree to notify the Company in writing within 30 days after
the date of any such disposition, and I will make adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company shall be entitled, to the extent required by
applicable law, to withhold from my Compensation any amount necessary to comply with applicable tax withholding requirements with respect to the purchase or sale of shares under the Plan. 
  
 Disposition After Holding Periods: If I dispose of such shares at any time after expiration of the 2-year and 1-year
holding periods, I understand that I will be treated for federal income tax purposes as having received compensation income only to the extent of an amount equal to the lesser of (a) the excess of the fair market value of the shares at the time of
such disposition over the purchase price which I paid for the shares under the option, or (b) 15% of the fair market value of the shares on the Offering Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated
as capital gain or loss. 
  
 8. I hereby agree to be bound by the
terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 
  
  

	 NAME (print):

	
	 SIGNATURE:

	
	 SOCIAL SECURITY #:

	
	 DATE:

  

 2 

 SPOUSE’S SIGNATURE (necessary 
 if beneficiary is not spouse): 
  

	  

	 (Signature)

	  
  

	 (Print name)

  

 3 

 XCYTE THERAPIES, INC. 
  
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 NOTICE OF WITHDRAWAL 
  

I,
                                        ,
hereby elect to withdraw my participation in the Xcyte Therapies, Inc. 2003 Employee Stock Purchase Plan (the “Plan”) for the Offering Period that began on
                     ,         . This withdrawal covers all Contributions credited to my
account and is effective on the date designated below. 
  
 I
understand that all Contributions credited to my account will be paid to me within ten (10) business days of receipt by the Company of this Notice of Withdrawal and that my option for such Offering Period will automatically terminate, and that no
further Contributions for the purchase of shares can be made by me during such Offering Period. 
  
 I further understand and agree that I shall be eligible to participate in succeeding offering periods only by delivering to the Company a new Subscription
agreement. 
  

	 Dated:                                
	  	  

	 	 	 	  	 Signature of Employee

			
	 	 	 	  	  

 Social Security Number

 XCYTE THERAPIES, INC. 
  
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 BENEFICIARY DESIGNATION 
  
 In the event of my death, I hereby designate the following as my beneficiary to receive all payments and shares due to me
under the Xcyte Therapies, Inc. 2003 Employee Stock Purchase Plan. I understand that my Beneficiary Designation will be effective upon acknowledgement of receipt by Xcyte Therapies, Inc. 
  
 BENEFICIARY: 
  

	 NAME: (Please print)
	 	 
	  
  

	 	 Relationship:

	 (First)                    (Middle)                
    (Last)
	 	 
	  

	 	 
	 (Address)
	 	 
	  

	 	 

  
  

	 SIGNATURE:

	  	 DATE:

		
	 Print Name:

	  	 
		
	 SOCIAL SECURITY #:

	  	 

  
 SPOUSE’S SIGNATURE (necessary if beneficiary is not Employee’s spouse): 
  

	  

	 (Signature)

	  

	 (Print name)

  
 MAIL OR DELIVER THIS FORM TO:

  
 ACKNOWLEDGEMENT OF RECEIPT BY XCYTE THERAPIES, INC.: 
  

		
	 By:

	 	 Dated:

	 Title:Collaboration Agreement with Fresenius Biotech GmbH, dated November 14, 2003

 Exhibit 10.48 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
  
 COLLABORATION AGREEMENT 
  
 This Agreement is entered into as of November 14, 2003, by and between: 
  
 ð    XCYTE THERAPIES, INC., a Delaware corporation, having its
principal place of business at 1124 Columbia Street, Suite 130, Seattle, WA 98104 (hereinafter referred to as “XCYTE”). 
  
 and: 
  
 ð    FRESENIUS BIOTECH GmbH, a company formed under the laws of Germany and a wholly-owned
subsidiary of FRESENIUS AG, having its principal place of business at Else-Kröner-Straße 1, 61352 Bad Homburg v. d. H., Germany (hereinafter referred to as “FRESENIUS”). 
  
 WITNESSETH 
  
 WHEREAS, XCYTE owns or controls intellectual property rights relating
to certain technology known as the XcellerateTM
Technology; 
  
 WHEREAS, FRESENIUS is currently conducting
research and development programs in the field of HIV retroviral gene therapy; 
  
 WHEREAS, FRESENIUS wishes to acquire from XCYTE rights to use the XcellerateTM Technology in the Field under XCYTE’s patent rights and know-how related to the XcellerateTM Technology in the Field; and 
  
 WHEREAS, XCYTE is willing to grant to FRESENIUS such rights, subject
to the terms of and conditioned upon this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth herein, the Parties hereto, intending to be legally bound, agree as follows: 
  
 ARTICLE I—DEFINITIONS AND INTERPRETATION 
  
 1.1. Definitions: For the purposes of this Agreement the following words and phrases shall have the following
meanings: 
  
 “Additional Pre-Pivotal Clinical
Trial” means any clinical trial in addition to the Phase I/II Clinical Trial, which is not a Pivotal Trial. 
  
 “Affiliate” means, with respect to a Party, any person, corporation or business entity that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, a Party. For the purpose of this definition, control of a 

 
corporation or of another business entity shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
or the policies of the entity, whether through the ownership of voting securities, by agreement or otherwise. 
  
 “Agreement” means this agreement, all amendments and supplements to this Agreement and all schedules to this Agreement, including the
following: 
  

					
	 Exhibit A
	  	—  	  	XCYTE Patents
	 Exhibit B
	  	—  	  	Clinical Endpoints
	 Exhibit C
	  	—  	  	XCYTE In-License Agreements
	 Exhibit D
	  	—  	  	Specifications

  
 “Calendar
Quarter” means any of the three-month periods beginning January 1, April 1, July 1 and October 1 in any year. 
  
 “Clinical Endpoints” means the endpoints described in Exhibit B by which the parties will measure success of the Phase I/II
Clinical Trial. Such Exhibit B shall be amended from time to time for any Additional Pre-Pivotal Clinical Trial and Pivotal Clinical Trial, as mutually agreed upon between the Parties. 
  
 “Clinical Trials” means Phase I/II Clinical Trial, any Additional Pre-Pivotal Clinical Trial, and a Pivotal
Clinical Trial. 
  
 “Completing” or
“Completion” means, with respect to the Clinical Trials, the date on which the last patient is evaluated and the resulting findings comply with the Clinical Endpoints. 
  
 “Confidential Information” has the meaning ascribed to it in Section 9.1. of this Agreement. 
  
 “Controlled” means with respect to any patent or other
intellectual property right, entitlement to assign, or grant a license, sublicense or other right to or under such patent or right as provided for herein without violating the terms of any agreement with any Third Party. 
  
 “Cost of Goods” shall mean with respect to XCYTETM Dynabeads® supplied to FRESENIUS (i) if by Third Parties the direct costs (including but not
limited to labor and overhead expenses) invoiced to XCYTE for the manufacture and supply of XCYTETM Dynabeads®; and (ii) if by XCYTE or its Affiliates, [*] of the direct cost (including but not limited to labor and overhead expenses) of providing such goods or services. 
  
 “Effective Date” means the date of this Agreement.

  
 “EUFETS” shall have the meaning set forth in
Section 2.1. 
  
 “Events of Force Majeure” shall
have the meaning set forth in Article 17. 
  

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

  

 -2- 

 “Exclusive License” has the meaning ascribed to it in Section 3.1.1. of this Agreement.

  
 “FDA” means the United States Food and Drug
Administration. 
  
 “Field” means any and all HIV
retroviral gene therapy applications for human or animal use; provided that use of the technology sublicensed under the XCYTE In-Licenses shall be further limited to the “Field” defined in the respective XCYTE In-Licenses, as applicable.

  
 “Final Phase I/II Report” means the final
report of the results of the first Phase I/II Clinical Trial, including whether the Clinical Endpoints were achieved, delivered by FRESENIUS to XCYTE after Completion of such Phase I/II Clinical Trial. 
  
 “First Commercial Sale” means, in each country of the
Territory, the first commercial sale, where sale means when delivered, billed out, or invoiced, whichever comes earlier, of a Product by FRESENIUS, its Affiliates or Sublicensees to a Third Party (other than a Sublicensee) following Regulatory
Approval, if required, in the country in which the sale is to be made. 
  
 “FRESENIUS Patents” shall have the meaning set forth in Section 10.2.3. 
  
 “cGMP” shall mean current good manufacturing practices, as they relate to that part of manufacturing and quality assurance, which ensures
that medicinal products are consistently produced and controlled to the quality standards appropriate to their intended use in each jurisdiction in the Territory in which Regulatory Approval has been obtained, including without limitation, the
principles and guidelines specified in Chapter II of European Commission Directive 91/356/EEC, and the regulations set forth in Title 21 of the Code of Federal Regulations, Parts 210-211, 600-680, and 820 and the requirements thereunder imposed by
the United States Food and Drug Administration (“FDA”). In case of conflict between the laws, the laws with the strictest interpretation shall control. 
  
 “Improvements” means all patentable or non-patentable inventions, discoveries, technology and information
of any type whatsoever, including compositions, chemical compounds, biological materials, methods, processes, technical information, knowledge, experience and know-how which (i) are developed solely by XCYTE or jointly by XCYTE and FRESENIUS, (ii)
utilize, incorporate, derive from, are based on or relate to the XcellerateTM Technology or enhance the processes for manufacturing or using the XcellerateTM Technology, and (iii) are useful in the Territory and in the Field. 
  
 “Initiates” or “Initiation” means, with respect to a human clinical trial, enrollment of the first patient into a trial
pursuant to a clinical protocol of the specified clinical trial. 
  
 “Net Sales” means the gross amount invoiced by FRESENIUS, its Affiliates and Sublicensees for the sale or other disposition of Products to Third Parties (other than 
  

 -3- 

 
Sublicensees), less the sum of the following deductions for amounts actually incurred related to said sale or other disposition: 
  
 (i) normal, customary trade discounts (including volume discounts), credits
and allowances and adjustments for rejections, recalls and returns; 
  
 (ii) cost of freight and insurance, sales, use, excise, value added and similar taxes, surcharges, duties and other governmental charges (other than income tax) imposed on the sale and included in the gross amount charged to customers; and

  
 (iii) normal, customary wholesaler chargebacks and rebates
(including rebates to government agencies and government mandates and managed healthcare negotiated rebates). 
  
 “Parties” means FRESENIUS and XCYTE, and “Party” means any one of them. 
  
 “Phase I/II Clinical Trial” has the meaning provided in
Section 2.1 hereof. 
  
 “Pivotal Trial” means a
series of controlled, multi-center clinical trials, involving patients with the disease or condition of interest to obtain sufficient efficacy and safety data to support regulatory submissions and labeling for marketing of a candidate drug or other
product. 
  
 “Product” means any and all products
where the manufacture, sale or use of such products would (i) in the absence of the licenses granted in this Agreement infringe at least one Valid Patent Claim of the XCYTE Patents in the Territory, or (2) use the XCYTE Know-How. 
  
 “Quality Standards” has the meaning provided in Section
4.2.1 hereof. 
  
 “Regulatory Approval” means
final regulatory approval in at least one country (including, where applicable, the first pricing approval in at least one country in the event that actual sales do not take place before such approval) required to market a Product for a disease or
condition in accordance with the applicable laws and regulations of a given country in the Territory. 
  
 “Research Program” means the research program conducted pursuant to Article 2. 
  
 “Research Program Term” shall mean the term of the Research
Program set forth in Section 2.3. 
  
 “Royalty
Term” means, on a country-by-country basis, the period of time commencing on the Effective Date and continuing until the later of (i) the last to expire Valid Patent Claim included in the XCYTE Patents, or (ii) fifteen years after
the First Commercial Sale in a respective country. If FRESENIUS agrees to license in any New Technology, the Royalty Term shall extend until the later of (i) the last to expire Valid Patent Claim covering such New 
  

 -4- 

 
Technology, or (ii) fifteen years after the First Commercial Sale of a Product derived from such New Technology in a respective country. 

 
 “Specifications” means the specifications for the
XcyteTM Dynabeads® described in Exhibit D. 
  
 “Sublicensees” means any person acting pursuant to a
sublicense granted to it by FRESENIUS or its Affiliates under the terms of this Agreement. 
  
 “Term” has the meaning ascribed to it in Article 14. 
  
 “Territory” means all member states of the European Union, applicant states for membership in the European Union, and member states of
the Commonwealth of Independent States, in each case as of March 24, 2003, Norway, Switzerland, and Iceland, and any other territory that may be later added pursuant to Section 3.4 hereof. 
  
 “Third Party” means any person other than FRESENIUS, XCYTE
and their respective Affiliates. 
  
 “Valid Patent
Claim” shall mean, on a country-by-country basis, either (a) a claim in any unexpired patent which has not been held invalid by a non-appealed or unappealable decision rendered by a court or other appropriate governmental body of competent
jurisdiction; or (b) a claim in any patent application, provided such claim has not been pending longer than the later of (i) [*] years from the date of filing of the originally filed parent application; or (ii) [*] years from the date
of request for examination in a country where such a request is necessary. 
  
 “Xcellerated T CellsTM” means the T cells that are produced by the use of the XcellerateTM Technology, including but not limited to the use of the XCYTETM Dynabeads®, XcellerateTM II Process or XcellerateTM III Process or derivatives thereof. 
  
 “XcellerateTM II Process”
means a static process configuration as it exists as of the Effective Date and is defined in Xcyte Therapies Master Production Records [*] and was originally defined in Amendment [*] submitted to FDA on [*]. 
  
 “XcellerateTM III Process” means the process configuration based on the WaveBioreactor as
it exists as of the Effective Date and is defined in Xcyte Therapies Master Production Records [*] submitted to the FDA as Amendment [*]. 
  
 “XcellerateTM Technology” means the XCYTE Patents and XCYTE Know-How. 
  
 “XCYTE In-Licenses” means the following agreements between (i) XCYTE and the indicated Third Parties: (A)
License and Supply Agreement dated October 15, 1999 by and between XCYTE and Diaclone S.A., as amended (the “Diaclone In-License”); (B) Non-Exclusive License Agreement dated October 20, 1999 by and between XCYTE and Fred 

 

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

  

 -5- 

 
Hutchinson Cancer Research Center, as amended (“FHCRC Agreement”); and (C) License Agreement dated July 8, 1998 by and between XCYTE and
Genetics Institute, L.L.C. (“GI”), as amended, and (ii) GI and the indicated Third Parties, which agreements are sublicensed to XCYTE under the GI Agreement: (A) License Agreement between GI and the Secretary of the Navy dated December 10,
1996, as amended, (B) License Agreement dated May 28, 1992 between GI and the University of Michigan, as amended, and (C) License Agreement dated July 20, 1993 between GI (as successor-in-interest to Repligen Corporation) and Dana Farber Cancer
Institute, as amended. 
  
 “XCYTETM Dynabeads®” means XR-CD3 and XR-CD28 antibodies produced at Lonza Biologics that are
conjugated to super-paramagnetic [*] particles at Dynal Biotech A.S.A., according to the Specifications attached hereto as Exhibit D according to the methods and controls described in Master File [*] filed with the FDA, such
production at Lonza Biologics and at Dynal Biotech A.S.A. taking place in all material respects under cGMP and all applicable laws and regulations. 
  
 “XCYTE Know-How” means any and all technical information, processes, formulae, data, engineering, inventions, chemical compounds,
know-how and trade secrets owned or Controlled by XCYTE, in each case that is Confidential Information according to Article 9.1, that relate to the Xcellerated T CellsTM, XcellerateTM II Process and the XcellerateTM III Process and any other proprietary information which has been reduced into writing and disclosed or transferred by XCYTE to FRESENIUS under this
Agreement, including Improvements to the extent granted by XCYTE to FRESENIUS pursuant to Section 3.3. 
  
 “XCYTE Patents” means, to the extent owned or Controlled by XCYTE, or owned or Controlled jointly by XCYTE and FRESENIUS: 
  
 (i) the existing patents and patent applications listed in Exhibit A
to this Agreement; 
  
 (ii) any patents and patent applications
covering Improvements to the extent granted by XCYTE to FRESENIUS pursuant to Section 3.3; 
  
 (iii) any future patents issued from any patent applications referred to above and any future patents issued from a patent application filed, which corresponds to a patent or patent application identified above; and

  
 (iv) any reissues, confirmations, renewals, extensions, all
foreign counterparts (including PCTs), divisions, continuations-in-part (subject to Section 3.3), continuations, patents of addition, reexaminations, or all Supplementary Protection Certificates issued, assigned or licensed to XCYTE relating to the
patents or patent applications identified above. 
  
 “XR-CD3” is the designation for XCYTE’s reagent-CD3, which is the [*], as used by XCYTE as of the Effective Date. 
  

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

  

 -6- 

 “XR-CD28” is the designation for XCYTE’s reagent-CD28, which is the [*], as
used by XCYTE as of the Effective Date. 
  
 1.2.    Certain Rules of Interpretation in this Agreement and the Schedules. 
  
 (a) Unless otherwise specified, all references to monetary amounts are to United States of America currency (U.S. Dollars); 
  
 (b) The descriptive headings of Articles and Sections are inserted solely for
convenience of reference and are not intended as complete or accurate descriptions of the content of such Articles or Sections; 
  
 (c) The use of words in the singular or plural, or with a particular gender, shall not limit the scope or exclude the application of any provision of this
Agreement to such person or persons or circumstances as the context otherwise permits; 
  
 (d) The words “include” and “including” have the inclusive meaning frequently identified with the phrases “without limitation” and “but not limited to”; 
  
 (e) Whenever a provision of this Agreement requires an approval or consent by
a Party to this Agreement and notification of such approval or consent is not delivered within the applicable time limit, then, unless otherwise specified, the Party whose approval or consent is required shall be conclusively deemed to have withheld
its approval or consent; 
  
 (f) Unless otherwise specified, time
periods within or following which any payment is to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the next business
day following if the last day of the period is not a business day in the jurisdiction of the Party to make such payment or do such act; and 
  
 (g) Whenever any payment is to be made or action to be taken under this Agreement is required to be made or taken on a day other than a business day, such
payment shall be made or action taken on the next business day following such day to make such payment or do such act. 
  
 ARTICLE 2—RESEARCH PROGRAM. 
  
 2.1. Objective. FRESENIUS intends to conduct a Research Program to evaluate the XcellerateTM Technology for commercial development under this Agreement. The Research Program will
consist of (i) the Phase I/II HIV retroviral gene therapy clinical study conducted pursuant to a clinical protocol prepared by FRESENIUS and reviewed by XCYTE (the “Phase I/II Clinical Trial”) and (ii) the manufacture of Xcellerated
T CellsTM solely for use in the Phase I/II Clinical
Trial and solely at FRESENIUS’ GMP manufacturing facility known as “EUFETS” and located in Idar-Oberstein, Germany. FRESENIUS will consider in good faith 
  

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

  

 -7- 

 and incorporate to the extent reasonable any comments received from XCYTE on the Phase I/II Clinical Trial protocol, but
FRESENIUS shall make the final decisions regarding the same. 
  
 2.2. Conduct of Research Program. FRESENIUS and XCYTE shall use all reasonable efforts to complete research works in accordance with the stated objective of the Research Program. Any research work performed by FRESENIUS
pursuant hereto shall be performed in a good scientific manner and using good clinical practices acceptable to the relevant regulatory authorities and in compliance with all applicable laws. FRESENIUS shall keep XCYTE reasonably informed of its
progress under the Research Program, including providing summary reports to XCYTE from time to time upon XCYTE’s request. Within [*] days of Completion of the Phase I/II Clinical Trial, FRESENIUS will promptly deliver to XCYTE the Final
Phase I/II Report. The preclinical and clinical data generated from the Research Program (the “Results”) shall be deemed “Confidential Information” as defined in Article 9 and treated as such. Notwithstanding the
foregoing, FRESENIUS shall disclose the Results to XCYTE and XCYTE shall be allowed to disclose the Results to Third Parties so long as FRESENIUS either consents in writing to the disclosure of Results to such Third Party or has previously consented
to XCYTE’s disclosure of such Results. FRESENIUS shall provide a response within [*] business days from receipt of XCYTE’s written request to FRESENIUS requesting consent to disclose such Results to a Third Party(ies), otherwise
FRESENIUS’ prior written consent will be deemed to be given to XCYTE. 
  
 2.3. Term of the Research Program. The term of the Research Program shall be for a period commencing the Effective Date and end on the date of delivery of the Final Phase I/II Report, but in no event
later than [*] (the “Research Program Term”), unless terminated earlier upon termination of this Agreement in accordance with Article 14 hereof. 
  
 2.4. XCYTE Transfer of Technology for Phase I/II Clinical Trial. At the request of FRESENIUS, XCYTE will use
reasonable commercial efforts to transfer the technology, documentation and associated controls that XCYTE deems necessary to enable FRESENIUS to use the XcellerateTM Technology to conduct the Research Program. In addition, XCYTE shall supply XCYTETM Dynabeads® based on orders received at least [*] days in advance of requested delivery from FRESENIUS. During the Research
Program, FRESENIUS will provide, on a monthly basis, good faith, non-binding 12 month rolling forecasts of its XCYTETM Dynabeads® requirements. In addition, FRESENIUS shall pay XCYTE within thirty (30) days of receipt of invoice(s) from XCYTE (i) to the extent not already paid by FRESENIUS to XCYTE before the
Effective Date, up to [*] to cover any and all direct costs (including but not limited to labor and overhead expenses) associated with the technology transfer as they are expended by XCYTE and (ii) [*]% of XCYTE’s Cost of Goods
for XCYTETM Dynabeads® delivered by XCYTE. FRESENIUS acknowledges that XCYTE relies on Third Parties
to provide components of the XCYTE Dynabeads® to
fulfill XCYTE’s obligations hereunder, and FRESENIUS and XCYTE agrees to cooperate in good faith to resolve any issues or delays that arise in connection with the supply of Xcyte Dynabeads® hereunder. 
  

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 2.5. Confidentiality. The Parties agree that all XcellerateTM Technology to be transferred to FRESENIUS, if any, pursuant to this Agreement
(“Transferred Technology, Know-How and Materials”) shall be deemed to be “Confidential Information” in accordance with Section 9.1. FRESENIUS will take reasonable and appropriate measures to ensure that the
confidentiality of all Transferred Technology, Know-How and Materials is preserved and that the Transferred Technology, Know-How and Materials are only used for the purposes authorized under the Agreement and in compliance with this Agreement.

  
 ARTICLE 3 – EXCLUSIVE LICENSE. 
 3.1. Exclusive License Grant to FRESENIUS. 
  
 3.1.1. Grant. XCYTE hereby grants to FRESENIUS, an exclusive (even as to XCYTE), transferable, royalty-bearing license under the XcellerateTM Technology, with the right to sublicense as permitted
in Section 3.1.2, to research, develop, make, have made, use, import, sell and offer for sale Products in the Field in the Territory (an “Exclusive License”). 
  
 3.1.2. Rights to Sublicense. 
  

    (a) FRESENIUS shall have the right to sublicense the rights granted to FRESENIUS in the Field in the Territory pursuant to this
Agreement to any Affiliate or any Third Party for any Product developed by FRESENIUS (i) subject to receiving the prior written consent of XCYTE (which will not be unreasonably withheld) and (ii) subject to the terms and conditions of the XCYTE
In-Licenses. XCYTE shall be primarily responsible for maintaining compliance of such sublicenses with the XCYTE In-Licenses, however, FRESENIUS acknowledges XCYTE may reasonably withhold consent to any FRESENIUS sublicense that does not comply with
the terms and conditions of the XCYTE In-Licenses that are applicable to FRESENIUS, its Affiliates and/or Sublicensees. If a Sublicensee breaches the terms and conditions of the sublicense agreement, FRESENIUS and Xcyte shall determine in good faith
whether termination of the sublicense agreement is required under this Agreement. 
  
     (b) FRESENIUS guarantees the making of all payments due to XCYTE by reason of completion of any milestones or Net Sales of any Products by any such Sublicensee or otherwise resulting from the
action or inaction of such Sublicensee. Any such Sublicensee shall agree in writing (i) to keep books and records and permit XCYTE to review the information concerning such books and records that Sublicensee has in its possession in accordance with
the terms of this Agreement and (ii) to comply with all other terms of this Agreement applicable to FRESENIUS (including all terms of this Agreement identified as applicable to a Sublicensee and all terms of the XCYTE In-Licenses disclosed to
FRESENIUS and applicable to Sublicensee). 
  
     (c) FRESENIUS shall reimburse XCYTE for any amounts XCYTE owes to Third Parties under any XCYTE In-License as a result of any sublicenses granted by FRESENIUS pursuant to this Section 3.1.2. If FRESENIUS shows to
XCYTE interest of a potential Sublicensee and upon FRESENIUS’ request, XCYTE shall inform FRESENIUS of such amounts XCYTE owes to Third Parties under any XCYTE-In-License in due time in order 
  
  

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 to enable FRESENIUS to factor such amounts into the negotiations with the potential sublicensee. 
  
 3.2. XCYTE Transfer of Technology for Additional Pre-pivotal Clinical
Trial and/or Pivotal Trial. At the request of FRESENIUS, XCYTE will use reasonable commercial efforts to assist FRESENIUS in developing a clinical trial development plan and regulatory strategy for any Additional Pre-pivotal Clinical Trial
or Pivotal Trial, as applicable, provided that, FRESENIUS shall be obligated to pay XCYTE, at minimum, the direct costs and expenses incurred by XCYTE (including but not limited to labor and overhead expenses) in connection with such services plus
an additional profit markup to be mutually agreed upon in good faith, within [*] days of receipt of invoice(s). 
  
 3.3. New Technologies. Subject to the bona fide rights of Third Parties that may exist now or hereafter, excluding licenses granted by XCYTE
in the Field and the Territory, and during the Term of the Agreement, XCYTE hereby grants to FRESENIUS the right to include in the Exclusive License as “XcellerateTM Technology” any Improvements (“New Technology”) in the Field and in the Territory, provided that
FRESENIUS will be obligated, at minimum, to pay XCYTE (a) for the direct costs and expenses incurred by XCYTE (including but not limited to labor and overhead expenses) in connection with transferring such New Technology to FRESENIUS plus an
additional profit markup to be mutually agreed upon in good faith, within [*] days of receipt of invoice(s), and (b) any milestones and royalties that accrue to Third Parties as a result of FRESENIUS’ development and commercialization of
a Product incorporating such New Technology, in addition to any milestones and royalties that are otherwise payable under this Agreement. Exhibit A shall be amended from time to time to add the patents and patent applications covering New
Technologies that FRESENIUS elects to include under this Agreement. XCYTE shall notify FRESENIUS of New Technology in writing and FRESENIUS shall execute its right under this 3.3 within four months after receipt of such notice. 
  
 Nothing herein shall be construed as a waiver of first-to-use, first to
invent defense by FRESENIUS. 
  
 3.4. Inclusion of North
America in the Territory. FRESENIUS shall have the right of first negotiation during the Term of this Agreement to include North America (consisting of Canada, Mexico and the United States, and their possessions and territories) in the
Territory under this Agreement as follows: 
  
     (a) During the Term of this Agreement, if XCYTE intends to either (a) begin good faith negotiations to reach a definitive agreement that would grant a Third Party a license in North America to intellectual property
owned or licensed by XCTYE that is necessary or useful to exploit the XcellerateTM Technology in the Field or (b)
file for regulatory approval in a country in North America relating to the use of the XcellerateTM Technology in the
Field, then XCYTE shall notify FRESENIUS in writing of XCYTE’s interest in negotiating and granting such license. FRESENIUS shall have up to [*] days, from the receipt of any notice from XCYTE 
  

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 under this Section 3.4(a), to notify XCTYE if FRESENIUS is interested in negotiating with XCTYE to include North America
in the Territory under this Agreement. 
  
     (b) If FRESENIUS sends a timely notice under Section 3.4(a) indicating its interest to negotiate with respect to North America, then the Parties agree to negotiate in good faith for [*] days from the receipt
of any notice from FRESENIUS under Section 3.4(a). If the Parties do not reach agreement on the material terms for including North America in the Territory under this Agreement by the close of business on the expiration date of the [*] day
negotiation period (or such other date the Parties may have mutually agreed to, the “Negotiation Deadline”), or if FRESENIUS does not exercise its right to negotiate under this Section 3.4 or fails to timely respond to the XCYTE notice
under Section 3.4(a), then after the end of the applicable period, XCYTE shall be free to enter into agreement(s) granting such license rights in North America to any Third Party or to file for regulatory approval relating to the use of the
XcellerateTM Technology in the Field in any country
in North America. 
  
     (c) The terms upon
which North America shall be included in the Territory shall be set forth in an amendment to this Agreement, and except as set forth in the amendment, shall be governed by the same terms and conditions set forth in this Agreement. 
  
 ARTICLE 4 – SUPPLY. 
 4.1. Supply of XCYTETM Dynabeads®. 
  
 4.1.1 Delivery of XCYTETM Dynabeads;
Orders and Forecasts. Following the completion of the Research Program and during the term of the Agreement, XCYTE shall supply XCYTETM Dynabeads® to FRESENIUS and fill all firm purchase orders received from FRESENIUS and FRESENIUS shall take delivery and pay XCYTE for such XCYTETM Dynabeads® ordered within [*] days of receipt of invoice(s) at a price equal to [*] of XCYTE’s Cost of Goods.
FRESENIUS shall place all firm purchase orders at least [*] days in advance. Furthermore, FRESENIUS shall provide, on a monthly basis, [*] month rolling forecasts of its XCYTETM Dynabeads® requirements. In no event shall XCYTE be required to fill any purchase order (or series of orders) for any month that
is (or are) in excess of [*] of the volumes specified for such month in FRESENIUS’ most recent forecasts. If a purchase order (or series of orders) for any month is less than [*] of the volumes specified for such month in
FRESENIUS’ most recent forecast, XCYTE shall have the right to charge FRESENIUS [*] of the volume forecasted for such period in lieu of the purchase order cost. XCYTE shall confirm each order within [*] days after receipt of the
order. 
  
 XCYTE will use reasonable commercial efforts to
maintain its supply relationships and will consider in good faith FRESENIUS’ supply needs and requirements in connection with negotiating agreements with its suppliers. If XCYTE fails to maintain its supply relationships and consequently
experiences supply constraint, section 4.4 shall apply. 
  

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 4.1.2 Delays. FRESENIUS shall not require a delivery date of earlier than [*] days after
the date of receipt by XCYTE of an order. XCYTE shall use its reasonable efforts to fill orders from FRESENIUS, which are in accordance with this Article 4 by the delivery date requested by FRESENIUS. XCYTE shall promptly notify FRESENIUS if at any
time XCYTE has reason to believe that XCYTE will not be able to supply any FRESENIUS order on time or as estimated or agreed. Notwithstanding anything contained herein, in no event shall XCYTE be liable for any delay or failure to deliver XCYTETM Dynabeads® for reasons beyond the control of XCYTE or its suppliers, provided, however, that XCYTE
shall notify FRESENIUS promptly of anticipated delays and shall use all commercially reasonable efforts to fills such orders as soon as possible. 
  
 4.2 XCYTETM Dynabeads® Quality. 
  
 4.2.1. The
XCYTETM Dynabeads® delivered to FRESENIUS shall have been manufactured in all material respects
according to the Specifications (as attached as Exhibit D), cGMP and all applicable laws and regulations (the “Quality Standards”). 
  
 4.2.2. Upon delivery, FRESENIUS shall inspect any delivery for identity and visual damage. FRESENIUS shall have [*] days from receipt of any
delivery of XCYTETM Dynabeads® to accept such delivery, or reject such delivery (or
part thereof) to the extent the XCYTETM
Dynabeads® do not conform to the Quality Standards.
FRESENIUS shall promptly return any rejected XCYTETM Dynabeads® to XCYTE
and FRESENIUS shall receive, at XCYTE’s sole option, a credit, refund or replacement for such rejected delivery, or part thereof, promptly. In the event that XCYTE decides to replace such rejected XCYTETM Dynabeads®, XCYTE shall use reasonable commercial efforts to do so within [*] days of such confirmation by XCYTE and XCYTE
shall bear the cost of delivery and risk of loss or damage to the replacement XCYTETM Dynabeads®
during delivery. Notwithstanding anything to the contrary contained in this Agreement, XCYTE shall not be responsible for any XCYTETM Dynabeads® if such XCYTETM Dynabeads® are
removed from their original vials prior to inspection by FRESENIUS or are modified in any manner, nor for any use or misuse or actions or inactions by any person or entity after delivery of the XCYTETM Dynabeads® to FRESENIUS’ carrier. 
  
 Within [*] months after the Effective Date, XCYTE shall use reasonable commercial efforts in order to renegotiate its commercial relationship with
the manufacturer of the XCYTETM Dynabeads® in order to achieve terms and conditions customary
within the pharmaceutical industry, in particular with regards to the manufacturer’s obligations towards quality of the XCYTETM Dynabeads® and delivery dates; provided, however that in no event shall XCYTE be required to pay additional consideration for such changes in its commercial relationship with such manufacturer.
XCYTE shall promptly notify FRESENIUS of the commencement of such negotiations with the manufacturer and shall keep FRESENIUS reasonably informed, to the extent that such negotiations are related to the quality and delivery dates of the XCYTETM Dynabeads®. XCYTE hereby grants to FRESENIUS to the extent permitted under its agreements for the
supply of XCYTETM Dynabeads®, the conditions of sale, including liability, and
delivery 
  

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 as beneficial, if any, as the conditions of sale, including liability, and delivery agreed upon with the manufacturer of
the XCYTETM Dynabeads®. The Parties agree to amend Exhibit D from time to time to reflect any changes
in the Specifications as a result of such negotiations with the manufacturer or as otherwise required by the manufacturer or mutual agreement of the Parties. 
  
 EXCEPT AS SET FORTH IN SECTION 13.1(h), THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, RELATED TO THE XCYTETM DYNABEADS® AND XCYTE EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF NON-INFRINGEMENT (SUBJECT TO ARTICLE 13.1 (e) OF THIS AGREEMENT), MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT AS SET FORTH IN SECTION 16, FRESENIUS’ EXCLUSIVE REMEDY FOR ANY FAILURE OF THE XCYTETM DYNABEADS® TO CONFORM TO THE QUALITY STANDARDS, OR ANY OTHER BREACH OF WARRANTY, SHALL, AT
XCYTE’S OPTION, BE CREDIT, REFUND OR REPLACEMENT AS SET FORTH IN THIS SECTION 4.2. EXCEPT AS SET FORTH IN SECTION 16, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES BASED UPON BREACH OF WARRANTY,
BREACH OF CONTRACT, NEGLIGENCE, STRICT TORT OR ANY OTHER LEGAL THEORY. FRESENIUS ACKNOWLEDGES THAT XCYTE RELIES ON A THIRD PARTY MANUFACTURER TO SUPPLY THE XCYTETM DYNABEADS® AND THEREFORE FRESENIUS’ RIGHTS ARE LIMITED TO THE EXTENT OF XCYTE’S RIGHTS WITH SUCH SUPPLIER. 
  
 4.3 Changes to Specification. In no event shall XCYTE make
changes to the Specifications that could adversely impact the T-cell activation or expansion capacity of the XCYTETM Dynabeads® without FRESENIUS’ prior written consent, such consent not to be unreasonably withheld. In the event of an intended or an actual change to the Specifications, Xcyte will inform
Fresenius in a prompt and timely manner and provide information on the rationale, reason and time line of such change. Notwithstanding anything to the contrary, if a proposed change to the Specifications of the XCYTETM Dynabeads® would require FRESENIUS to perform bridging or comparability studies pursuant to
applicable laws and regulations, then XCYTE shall use reasonable commercial efforts to (i) provide FRESENIUS with adequate advance notice of such change and (ii) cooperate with and assist Fresenius to complete such studies. 
  
 4.4 XCYTETM Dynabeads® Manufacturing. In the event and during the period that XCYTE fails to supply the forecasted volume of
XCYTETM Dynabeads® after reasonable advance written notice and a reasonable opportunity to cure,
XCYTE shall not prohibit FRESENIUS from, in addition to other rights and remedies available at law or equity (including but not limited to damages or specific performance), manufacturing the XCYTETM Dynabeads® on its own or from a Third Party and XCYTE hereby licenses to FRESENIUS or to the respective Third Party the Xcyte
Technology required for the manufacture of the XCYTETM Dynabeads® (to the
extent permitted under applicable agreements with Third Parties) and shall use reasonable efforts to otherwise cooperate with such efforts by FRESENIUS. At such time that XCYTE is 
  

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 able to recommence supply of the XCYTETM Dynabeads® at the forecasted volume to FRESENIUS, FRESENIUS’ rights to manufacture will terminate. 
  
 4.5 Audit. FRESENIUS (or its appointed representatives) shall
have the right, at reasonable times and with reasonable prior written notice, to inspect facilities and to review processes, procedures and documents that are used or maintained by XCYTE (or Affiliates or Sublicensees). XCYTE shall use reasonable
commercial efforts to provide an opportunity or right for FRESENIUS or any regulatory agency in the Territory to audit the manufacturing sites of the suppliers of XR-CD3, XR-CD28, and the XCYTETM Dynabeads® as reasonably required by FRESENIUS or the regulatory agencies. 
  
 FRESENIUS shall not enter into any agreements on its own with any suppliers
with respect to the XcellerateTM Technology without
the prior written consent of XCYTE. 
  
 4.6. Communication
Among Parties Each of FRESENIUS and XCYTE shall appoint a specific individual who shall be available and shall act as a liaison person to facilitate the day-to-day communications among the Parties. The names of the initial liaison persons
who shall act on behalf of each of the Parties shall be Dr. Wolfgang Höckh for FRESENIUS and Stewart Craig, Ph.D, Chief Operating Officer for XCYTE. Each of FRESENIUS and XCYTE agrees to notify the other in accordance with Section 21.1 of this
Agreement in the event of a change in liaison person. 
  
 ARTICLE
5—DEVELOPMENT AND COMMERCIALIZATION. 
  
 5.1
Development Efforts. FRESENIUS shall use its commercially reasonable efforts and diligence in developing and commercializing Product(s) in accordance with its business, legal, medical and scientific judgment, and in undertaking
investigations and actions required to obtain appropriate Regulatory Approval(s) necessary to market such Products in the Territory, such reasonable efforts and diligence to be in accordance with the efforts and resources FRESENIUS would use for
product(s) owned by it or to which it has rights, which is of similar market potential at a similar stage in development as the Products taking into account the competitiveness of the marketplace and the proprietary position of the Product(s). As
between the Parties, FRESENIUS shall be solely responsible for funding all costs of the development and commercialization of each Product FRESENIUS determines in its sole discretion to pursue. For the avoidance of doubt, FRESENIUS shall not be
required to file for regulatory approval in each and every jurisdiction in the Territory. 
  
 5.2 Development Reports. FRESENIUS shall keep XCYTE informed in a timely manner as to the progress of the development of Products FRESENIUS determines, from time to time, to pursue. Beginning on the
first day of the Calendar Quarter following the Effective Date and the first day of each Calendar Quarter thereafter, FRESENIUS shall provide XCYTE with a written report summarizing the activities of FRESENIUS, its Affiliates and Sublicensees
related to research and development of Products and status of clinical trials and government approvals necessary for marketing Products. 
  

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 5.3 Diligence Milestone. Without limiting the generality of the foregoing, FRESENIUS’
due diligence obligations regarding the development of Products shall include (i) Initiating a Phase I/II Clinical Trial by [*], (ii) Completing a Phase I/II Clinical Trial and providing XCYTE with a Final Phase I/II Report by [*],
(iii) Initiating either an Additional Pre-pivotal Clinical Trial or a Pivotal Trial relating to a Product by [*] and (iv) achieving a First Commercial Sale that results in Net Sales and payment of royalties to XCYTE pursuant to Section 6.1
for at least one Product on or before [*], provided that such date shall be delayed by six month increments until [*] so long as FRESENIUS either (A) is currently conducting and actively pursuing a Pivotal Trial relating to a Product
or (B) is experiencing delays in receiving its first regulatory approval of a Product required for First Commercial Sale and such delay was not directly caused by FRESENIUS nor within FRESENIUS’ control to cure. 
  
 5.4 Review of Clinical Trial Protocols. XCYTE shall have the
right to review all clinical protocols prior to the Initiation of each clinical trial to be conducted by FRESENIUS involving XcellerateTM Technology to assure compliance with applicable laws and regulations. Neither FRESENIUS, its Affiliates nor its Sublicensees shall Initiate any
clinical trial involving the XcellerateTM
Technology without the prior review of XCYTE. XCYTE shall review all clinical protocols within [*] days of receipt. FRESENIUS will consider in good faith and incorporate to the extent reasonable any comments received from XCYTE on the
clinical protocols, but FRESENIUS shall make all final decisions regarding the same. 
  
 5.5 Marketing Cooperation. FRESENIUS will cooperate with XCYTE to ensure that any references to the XcellerateTM Technology in the Territory in the Field by FRESENIUS, its Affiliates, Sublicensees or each of its respective agents is consistent with XCYTE’s U.S. marketing for the XcellerateTM Technology to maintain reasonable continuity of
promotion and global branding. FRESENIUS, its Affiliates, Sublicensees or each of its respective agents shall not use XCYTE’s name or any adaptation thereof without the prior written consent of XCYTE. 
  
 5.6 Quality Audits. FRESENIUS shall reasonably cooperate with
XCYTE in ensuring and maintaining that all Products meet cGMP and quality standards applicable in the Territory in all material respects. FRESENIUS shall perform quality control tests for any XcellerateTM Technology referenced in Products as required by all laws and regulations in the Territory. XCYTE (or its appointed representatives) shall have the right, at
reasonable times and with reasonable prior written notice, to inspect production facilities and to review processes, procedures and documents that are used or maintained by FRESENIUS (or Affiliates or Sublicensees) to confirm compliance with the
applicable cGMP and quality standards. If XCYTE observes a condition, which causes it to believe that the XcellerateTM Technology used in Product is not being manufactured in accordance with the applicable cGMP and quality standards, FRESENIUS shall reasonably determine if any additions or modifications reasonably requested by XCYTE to bring the
facilities, processes and/or procedures into compliance have to be made. For purposes of clarity, FRESENIUS is regulated by all applicable laws, regulations and governmental acts in the Territory regarding the manufacture of the Products.

  

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 ARTICLE 6 – ROYALTIES AND MILESTONES. 
  
 6.1 Royalties Payable by FRESENIUS. 
  
 6.1.1 In consideration for the Exclusive Licenses granted to FRESENIUS herein, during the Royalty Term, FRESENIUS shall pay
to XCYTE royalties on Net Sales of Products. Such royalties shall be established at the following rates, determined on a product-by-product basis: 
  
 (a) [*] of the first [*] in aggregate Net Sales of Products in each calendar year; and 
  
 (b) [*] of incremental aggregate Net Sales of Products in excess of
[*] in each calendar year. 
  
 (c) The aggregate Net Sales
amounts set forth in Sections 6.1.1(a)–(b) shall be adjusted on each [*] year anniversary of the Effective Date in accordance with increases in the Consumer Price Index (CPI) U.S. Cities’ Average – All Items for all urban
consumers (not seasonally adjusted), as published by the U.S. Department of Labor Statistics. For avoidance of doubt, the aggregate Net Sales amount shall be adjusted upwards every [*] years by a factor calculated by comparing the CPI for the
year in which the adjustment is occurring with the CPI for the year that is [*] years prior, as further described in the formula NNS = (1 + (NCPI – BCPI)/BCPI x 100) x BNS, wherein NNS is the new aggregate Net Sales amount, NCPI is the
new CPI, BCPI is the CPI for the base year 2003, and BNS is the base aggregate Net Sales amount for 2003. 
  
 6.1.2 The royalties payable under Section 6.1.1 shall each be reduced by [*] percent ([*]%) until the expiration of the Royalty Term upon
the last to expire Valid Patent Claim included in [*], or parallel patent to each of aforementioned PCT applications, applicable to the Territory. 
  
 6.1.3 In the event that the last Valid Patent Claim included in the XCYTE Patents has expired or in the event that the Product is manufactured, marketed,
and sold without the use of a Valid Patent Claim included in the XCYTE Patents, however, provided that FRESENIUS uses the XCYTE Know-How, any royalty rate payable by FRESENIUS to XCYTE shall be reduced to [*]% until the expiration of the
Royalty Term. 
  
 6.1.3 Right of Offset. In the
event that FRESENIUS and XCYTE reasonably and mutually determine that in any country in the Territory the use of the XCYTE Technology in the Field infringes upon the patent rights of a Third Party, and FRESENIUS obtains a license under such Third
Party rights, then, in lieu of any other right or remedy, FRESENIUS shall have the right to deduct from the royalties otherwise due and payable under Section 6.1 arising from the sale of Product in such country, [*], up to a maximum of
[*] percent ([*]%) of the royalties otherwise payable, that FRESENIUS is obliged to pay under the Third Party license in order to obtain rights from such Third Party in such country. 
  

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 6.2 Third Party Royalties. During the Royalty Term, XCYTE shall pay any Third Party
royalties owed on account of Net Sales of Products in the Territory due to use of the XcellerateTM Technology other than royalties payable for New Technologies. During the Royalty Term, in the case of New Technologies, and following expiration of the Royalty Term in the case of the
XcellerateTM Technology, FRESENIUS shall pay any
Third Party royalties owed on account of Net Sales of Products in the Territory. 
  
 6.3. Non-Royalty Sales. 
  
 No royalty shall be payable under this Article 6 with respect to sales of Products among FRESENIUS and its Affiliates or its Sublicensees or among Sublicensees and their Affiliates, but a royalty shall be due upon the subsequent sale of the
Product to a Third Party. 
  
 6.4. Milestone
Payments. 
  
 As additional consideration for the
licenses, rights and privileges granted to it hereunder, FRESENIUS shall pay to XCYTE the following milestone payments to XCYTE within [*] days of the first occurrence of each event set forth below with respect to each Product, whether such
events are achieved by FRESENIUS, its Affiliates or Sublicensees. 
  
 6.4.1 Upon Initiation of the Phase I/II Clinical Trial, FRESENIUS will pay to XCYTE the sum of [*]. 
  
 6.4.2 Upon Completion of the Phase I/II Clinical Trial, provided that either the Phase I/II Clinical Trial achieves the Clinical Endpoints or FRESENIUS
elects to initiate the first Pivotal Trial, FRESENIUS will pay to XCYTE the sum of [*]. 
  
 6.4.3 Upon Completion of the first Pivotal Trial that supports submission for Regulatory Approval, FRESENIUS will pay to XCYTE the sum of [*].

  
 6.4.4 The earlier of the first Regulatory Approval or First
Commercial Sale in any country, FRESENIUS will pay to XCYTE the greater of (i) [*] or (ii) five million four hundred thousand euros (€5,400,000), less any milestone payments previously paid by FRESENIUS to XCYTE pursuant to this Section
6.4. 
  
 6.4.5 All payments pursuant to this Section 6.4 shall be
made by wire transfer of immediately available funds, which payments shall be non-refundable and non-creditable. 
  
 ARTICLE 7—REPORTS AND ACCOUNTING, REPORTS AND COSTS. 
  
 7.1. Reports, Exchange Rates. 
  
 7.1.1. During the term of this Agreement following the first Calendar Quarter in which Net Sales occur and for the remainder of the Royalty Term,
FRESENIUS shall furnish to XCYTE, with respect to each Calendar Quarter, a written report showing on a consolidated basis 
  

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 in reasonably specific detail and on a Product-by-Product and country-by-country basis, (a) the gross sales of Products
sold by FRESENIUS, its Affiliates and its Sublicensees in the Territory during the corresponding Calendar Quarter and the calculation of Net Sales from such gross sales; (b) the royalties payable in U.S. dollars, if any, which shall have accrued
hereunder based upon Net Sales of Products; (c) the withholding taxes, if any, required by law to be deducted in respect of such royalties; (d) the dates of the first Net Sales of each Product in each country in the Territory if it has occurred
during the corresponding Calendar Quarter; and (e) the exchange rates (as determined pursuant to Section 7.1.4 herein) used in determining the royalty amount expressed in U.S. dollars (collectively, “Reports”). 
  
 7.1.2. FRESENIUS shall include in each permitted sublicense granted by it
pursuant to this Agreement a provision requiring its Sublicensees to make Reports to FRESENIUS within [*] days of the close of each Calendar Quarter, to keep and maintain records of sales made pursuant to such sublicense and to grant access
to such Reports by XCYTE’s independent accountant to the same extent required with respect to FRESENIUS’ Reports under this Agreement. 
  
 7.1.3. Reports shall be due on the [*] day following the close of each Calendar Quarter. FRESENIUS shall keep complete and accurate records in
sufficient detail to properly reflect all gross sales and Net Sales and to enable the royalties payable hereunder to be determined.  
  
 7.1.4. With respect to sales (if any) of Products invoiced in U.S. dollars, the gross sales, Net Sales, and royalties payable shall be expressed in U.S.
dollars. With respect to sales of Products invoiced in a currency other than U.S. dollars, the gross sales, Net Sales and royalties payable shall be expressed in the currency of the invoice issued by the Party making the sale together with the U.S.
dollars equivalent of the royalty payable, calculated using the exchange rate for such currency reported by the Bank of America N.A. on the last business day of the applicable Calendar Quarter. 
  
 7.2. Audits. 
  
 7.2.1. XCYTE Audit 
  
 (a) Upon the written request of XCYTE and not more than once in each
calendar year, FRESENIUS shall permit an independent certified public accounting firm of internationally recognized standing, selected by XCYTE and reasonably acceptable to FRESENIUS, at XCYTE’s expense, to have access during normal business
hours to such of the records of FRESENIUS and its Affiliates as may be reasonably necessary to verify the accuracy of the Reports hereunder for any year ending not more than thirty-six (36) months prior to the date of such request. The accounting
firm shall disclose to XCYTE only whether the records are correct or not and the specific details concerning any discrepancies. No other information shall be shared. 
  

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 (b) If such accounting firm concludes that additional royalties were owed during such period, FRESENIUS
shall pay the additional royalties within [*] days of the date XCYTE delivers to FRESENIUS such accounting firm’s written report so concluding. The fees charged by such accounting firm shall be paid by XCYTE; provided,
however, if the audit discloses that the royalties payable by FRESENIUS for the audited period are more than [*] percent ([*]%) of the royalties actually paid for such period, then FRESENIUS shall pay the reasonable fees and
expenses charged by such accounting firm. 
  
 (c) Upon the
expiration of thirty-six (36) months following the end of any calendar year, the calculation of royalties payable with respect to such year shall be binding and conclusive upon XCYTE, and FRESENIUS, its Affiliates and Sublicensees shall be released
from any liability or accountability with respect to royalties for such year. 
  
 7.2.2 FRESENIUS Audit 
  
 XCYTE shall keep and maintain all records relevant for the showing of the Cost of Goods. 
  
 (a) Upon the written request of FRESENIUS and not more than once in each calendar year, XCYTE shall permit an independent certified public accounting firm
of internationally recognized standing, selected by FRESENIUS and reasonably acceptable to XCYTE, at FRESENIUS’ expense, to have access during normal business hours to such of the records of XCYTE and its Affiliates as may be reasonably
necessary to verify the accuracy of the invoices for the Cost of Goods hereunder for any year ending not more than thirty-six (36) months prior to the date of such request. The accounting firm shall disclose to FRESENIUS only whether the records are
correct or not and the specific details concerning any discrepancies. No other information shall be shared. 
  
 (b) If such accounting firm concludes that excess Costs of Goods have been charged, XCYTE shall restitute FRESENIUS for such excess Costs of Goods within
thirty (30) days of the date FRESENIUS delivers to XCYTE such accounting firm’s written report so concluding. The fees charged by such accounting firm shall be paid by FRESENIUS; provided, however, if the audit discloses that the
refund payable by XCYTE for the audited period are more than five percent (5%) of the Cost of Goods actually paid for such period, then XCYTE shall pay the reasonable fees and expenses charged by such accounting firm. 
  
 (c) Upon the expiration of thirty-six (36) months following the end of any
calendar year, the calculation of Cost of Goods payable with respect to such year shall be binding and conclusive upon FRESENIUS, and XCYTE and its Affiliates shall be released from any liability or accountability with respect to Cost of Goods for
such year. 
  

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omitted portions. 

  

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 7.3. Confidential Financial Information. 
  
 Each Party shall treat all financial information subject to review under this
Article 7 as Confidential Information of the other Party, and shall cause its accounting firm to retain all such financial information in confidence. 
  
 ARTICLE 8—PAYMENTS. LATE PAYMENTS 
  
 8.1. Payment Terms. 
  
 Royalties shown to have accrued by each Report provided for under Article 7 of this Agreement shall be due on the date such Report is due. Payment of
royalties in whole or in part may be made in advance of such due date. Milestone payments shall be paid within [*] days of the first occurrence of each milestone event with respect to each Product, which payments shall be nonrefundable and
non-creditable. All other payments shall be due within [*] days of receipt of invoice(s) from XCYTE. 
  
 Past due payments shall accrue interest at a rate of [*] percent ([*]%) per annum, or the maximum applicable rate permitted by law, unless
occurring as a result of an event the Parties agree constitutes an Event of Force Majeure or as a result of a good faith dispute between the Parties regarding performance or breach of their obligations hereunder. 
  
 8.2. Payment Method. 
  
 All payments by FRESENIUS to XCYTE under this Agreement shall be made by bank
wire transfer in immediately available funds to the bank account designated by XCYTE in writing. 
  
 8.3. Exchange Control. 
  
 If at any time legal restrictions prevent the prompt remittance of part or all royalties or milestone payments with respect to any country in the
Territory where Product is sold, payment shall be made through such lawful means or method as the Parties reasonably shall determine. 
  
 8.4. Withholding Taxes. 
  
 Except as otherwise provided below, all amounts owing from FRESENIUS to XCYTE under this Agreement are gross amounts. FRESENIUS shall be entitled to
deduct the amount of any withholding taxes payable or required to be withheld by FRESENIUS, its Affiliates or Sublicensees, to the extent FRESENIUS, its Affiliates or Sublicensees pay to the appropriate governmental authority on behalf of XCYTE such
taxes. FRESENIUS shall use commercially reasonable efforts to minimize any such taxes, levies or charges required to be withheld on behalf of XCYTE by FRESENIUS, its Affiliates or Sublicensees. FRESENIUS shall promptly deliver to XCYTE proof of
payment of all such taxes, levies and other charges, together with copies of all communications from or with such governmental authority with respect thereto. 
  

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 ARTICLE 9 – CONFIDENTIALITY. 
 9.1. Non-Disclosure Obligations. 
  
 Except as otherwise provided in this Article 9, during the Term and for a period of five (5) years thereafter, each Party shall maintain in confidence,
and use only for purposes as expressly authorized and contemplated by this Agreement, all confidential or proprietary information, data, documents or other materials supplied by the other Party under this Agreement and marked or otherwise identified
as “Confidential.” For purposes of this Agreement, information and data described above including all the XcellerateTM Technology shall be hereinafter referred to as “Confidential Information.” Each Party shall use at least the same standard of care as
it uses to protect its own Confidential Information to ensure that its and its Affiliates’ employees, agents, consultants and clinical investigators only make use of Confidential Information for purposes as expressly authorized and contemplated
by this Agreement and do not disclose or make any unauthorized use of such Confidential Information.  
  
 9.2. Permitted Disclosures. 
  
 Notwithstanding the foregoing, the provisions of Section 9.1 hereof shall not apply to information, documents or materials that the disclosing Party can
conclusively establish: 
  
         (a) have become published or otherwise entered the public domain other than by acts of the disclosing Party or its Affiliates or Sublicensees in contravention of this Agreement; 
  
         (b) are permitted to be
disclosed by prior consent of the other Party; 
  
         (c) have become known to the disclosing Party by a Third Party, provided such Confidential Information was not obtained by such Third Party directly or indirectly from the other Party under
this Agreement on a confidential basis; 
  
         (d) prior to disclosure under the Agreement, was already in the possession of the disclosing Party, its Affiliates or Sublicensees, provided such Confidential Information was not obtained
directly or indirectly from the other Party under this Agreement; 
  
         (e) is disclosed in a press release agreed to by both Parties hereto, which agreement shall not be unreasonably withheld; or 
  
         (f) are required to be disclosed by the disclosing Party to comply with any
applicable law, regulation or court order, or are reasonably necessary to obtain patents, copyrights or authorizations to conduct clinical trials with, and to commercially market Product(s), provided that the disclosing Party shall provide prior
notice of such disclosure to the other Party and take reasonable and lawful actions to avoid or minimize the degree of disclosure. 
  

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 9.3. Terms of the Agreement. 
  
 FRESENIUS and XCYTE shall not disclose any terms or conditions of this Agreement to any Third Party without the prior
consent of the other Party, except as required by applicable laws, regulations or a court order (and in any such case the disclosing Party shall provide notice to the other Party and takes reasonable and lawful actions to avoid or minimize the
degree of such disclosures). 
  
 9.4. Press Releases and
Other Disclosures to Third Parties. 
  
 Neither XCYTE nor
FRESENIUS will, without the prior consent of the other, issue any press release or make any other public announcement or furnish any statement to any Person (other than either Parties’ respective Affiliates) concerning the existence of this
Agreement, its terms and the transactions contemplated thereby, except for (i) general statement referring to the existence of this Agreement, and identity of the Parties but no other details, (ii) disclosures made in compliance with Sections 9.2
and 9.3 hereof, (iii) attorneys, consultants, and accountants retained to represent them in connection with the transactions contemplated hereby and (iv) disclosure required by the U.S. Securities and Exchange Commission and other government
agencies; (v) occasional, brief comments by the respective officers of FRESENIUS and XCYTE consistent with such guidelines for public statements as may be mutually agreed by FRESENIUS and XCYTE made in connection with routine interviews with
analysts or members of the financial press. 
  
 9.5.
Publications Regarding Results of the Research Program. 
  
 No Party may publish, present or announce results of the Research Program either orally or in writing (the “Publication”) without obtaining the written consent of the other Party. The other Party shall have thirty (30) days
from receipt of the proposed Publication to provide comments and/or proposed changes to the disclosing Party. The disclosing Party shall take into account the comments and/or proposed changes made by the other Party on any Publication and shall
agree to have employees or others acting on behalf of the other Party be mentioned as co-authors on any Publication describing results to which such persons have contributed. If the other Party reasonably determines the Publication would amount to
the public disclosure of such Party’s Confidential Information and/or of a patentable invention upon which a patent application should be filed prior to any such disclosure, submission of the concerned Publication to Third Parties shall be
delayed for a sixty (60) day period from the date of said notice, or for such longer period which may appear necessary for appropriately deleting Confidential Information from the proposed Publication and/or drafting and filing a patent application
covering such invention. 
  
 ARTICLE 10—INVENTIONS AND PATENTS.

 10.1. Ownership of Inventions. 
  

        10.1.1. Inventorship. Subject to the terms of this Article 10, inventorship of any
inventions arising out of the Research Program or under this Agreement shall be determined 
  

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 according to U.S. law, subject to FRESENIUS’ obligations under the German Act governing employee inventions
(Arbeitnehmererfindungsgesetz). Any invention arising out of the Research Program or otherwise under this Agreement shall be promptly disclosed to the other Party. Any inventions or other intellectual property invented solely by one Party
shall be owned by that Party. For avoidance of any doubt, any inventions or other intellectual property made, or data derived, by XCYTE or its employees, consultants or agents, without any assistance from FRESENIUS other than the fact that
such invention or intellectual property was made on or using facilities or equipment owned or affiliated with FRESENIUS or EUFETS, shall be owned by XCYTE. Each Party shall cooperate with the other Party at such Party’s request and
expense to document and/or perfect the assignment of such inventions and intellectual property. 
  
         10.1.2. Ownership of XcellerateTM Technology and Jointly-Invented Inventions Related Thereto. All right, title
and interest to the XcellerateTM Technology shall
(subject to any licenses explicitly granted hereunder) at all times remain with and be vested in XCYTE. Any invention or other intellectual property made, and data derived, jointly by FRESENIUS or its respective employees, consultants or agents and
XCYTE or its respective employees, consultants or agents arising out of the Research Program or out of any technology transfer performed by XCYTE in accordance with Sections 3.2 or 3.3 that relates to the XcellerateTM Technology shall be owned by XCYTE. FRESENIUS shall promptly notify XCYTE of
any such invention or other intellectual property, and cooperate with XCYTE at XCYTE’s request and expense, in the preparation, filing, prosecution, and defense of patent applications and patents relating thereto. Subject to the terms of this
Article 10, at XCYTE’s request, FRESENIUS shall assign, and hereby assigns, to XCYTE, all right, title and interest to joint FRESENIUS and XCYTE inventions that relate to the XcellerateTM Technology, and shall in a reasonably timely manner execute those documents, as
requested by XCYTE, necessary to document and/or perfect the assignment of such inventions and intellectual property. If XCYTE decides to request assignment from FRESENIUS pursuant to this Section 10.1.2, XCYTE shall reimburse FRESENIUS for all
payments that may be due to FRESENIUS employees who are inventors based on the commercial use of such jointly-made invention pursuant to FRESENIUS’ obligations under the German Act governing employee inventions (Arbeitnehmererfindungsgesetz),
provided that XCYTE shall be entitled to a good faith estimate of such payments prior to its decision. 
  
         10.1.3. Grant-Back License to XCYTE. FRESENIUS hereby grants to XCYTE a perpetual,
irrevocable, non-exclusive, fully paid worldwide license, with the right to sublicense, inventions or other intellectual property invented solely by FRESENIUS or its respective employees, consultants or agents that directly relate to the
XcellerateTM Technology and which have been
conceived in the course of the collaboration under this Agreement to develop, make, have made, use, import, sell, and offer for sale products. Such license shall neither include the Field for subject matter nor the Territory for geographic purposes.
FRESENIUS shall in a reasonably timely manner execute any documents, as requested by XCYTE, necessary to further document such license. 
  
  

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 10.2. Patent Prosecution and Maintenance. 
  
         10.2.1. XCYTE shall be
responsible for and shall control the preparation, filing, prosecution, grant and maintenance of all XCYTE Patents, including patents covering joint inventions pursuant to Section 10.1.2. XCYTE shall prepare, file, prosecute and maintain such XCYTE
Patents in good faith consistent with its customary patent policy and its reasonable business judgment, and shall consider in good faith the interests of FRESENIUS in so doing. 
  
         10.2.2. XCYTE agrees to furnish to FRESENIUS copies of all relevant
documentation and any proposed filing in the Field in the Territory so that FRESENIUS may be currently and promptly informed of the continuing prosecution. XCYTE shall in good faith periodically consult with FRESENIUS with regards to FRESENIUS’
patent strategy in the Field and in the Territory. FRESENIUS shall bear its own costs relating to its monitoring of XCYTE’s patent activities. XCYTE will not withdraw, terminate, invalidate or otherwise modify all or any part of the XCYTE
Patents licensed to FRESENIUS under this Agreement or any claims thereof (including, without limitation, cause the XCYTE Patents or any part thereof to be reissued, reexamined, opposed or part of an interference, except as required by law), without
the prior written consent of FRESENIUS. [*] of all costs that XCYTE incurs after August 1, 2003 in filing, prosecuting and maintaining XCYTE Patents in the Territory shall be borne by XCYTE and shall be promptly reimbursed by FRESENIUS;
provided, however, that FRESENIUS shall have the right to determine which countries in the Territory it will reimburse the costs of filing, prosecuting and maintaining the XCYTE Patents. To the extent FRESENIUS does not reimburse the costs of
filing, prosecuting and maintaining XCYTE Patents in any country in the Territory within [*] days after FRESENIUS’ receipt of a written notice from XCYTE of FRESENIUS’ failure to timely pay such costs, then FRESENIUS’ right and
license to such XCYTE Patent under this Agreement shall terminate in such country. Should XCYTE elect to abandon or otherwise forfeit a pending patent application or granted patent right, each with regard to the Field and the Territory, it will (a)
provide FRESENIUS with written notice as soon as reasonably possible after making such election but in any event no later than [*] days before FRESENIUS would be faced with a possible loss of rights, (b) give FRESENIUS the right, at
FRESENIUS’ discretion and sole expense, to prepare and file the priority application(s) (but only to the extent that such are related to Product), and (c) offer reasonable assistance in connection with such preparation and filing at no cost to
FRESENIUS except for reimbursement of reasonable out-of-pocket expenses incurred by XCYTE in rendering such assistance. FRESENIUS, at its discretion and cost, will prosecute such application(s) and maintain any patents derived therefrom; provided,
however, that any such patents application or patents prosecuted or maintained by FRESENIUS will in no way be included, or be deemed to be included, in the XCYTE Patents. 
  
         10.2.3. All right, title and interest to inventions made in course of the
Research Program solely by FRESENIUS, FRESENIUS’ Affiliates, and/or Sublicensees (the “FRESENIUS Patents”) shall (subject to any licenses explicitly granted hereunder) at all times remain with and be vested in FRESENIUS.
FRESENIUS shall promptly disclose and provide a copy of all relevant documentation on FRESENIUS patents that relate to the XcellerateTM 
  

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 Technology to XCYTE. Subject to Section 10.2.1, FRESENIUS shall be responsible for and shall control the preparation,
filing, prosecution, grant and maintenance, of any patents and patent applications having as subject matter inventions owned solely by FRESENIUS. FRESENIUS shall have the right, but not the obligation, at its sole discretion and expense, prepare,
file, prosecute and maintain such patent rights in good faith consistent with its customary patent policy and its reasonable business judgment. Should FRESENIUS elect to abandon or otherwise forfeit a pending patent application or granted patent
right, each with regard to the Field and the Territory, it will (a) provide XCYTE with written notice as soon as reasonably possible after making such election but in any event no later than [*] days before XCYTE would be faced with a
possible loss of rights, (b) give XCYTE the right, at XCYTE’s discretion and sole expense, to prepare and file the priority application(s) (but only to the extent that such are related to Product), and (c) offer reasonable assistance in
connection with such preparation and filing at no cost to XCYTE except for reimbursement of reasonable out-of-pocket expenses incurred by FRESENIUS in rendering such assistance. XCYTE, at its discretion and cost, will prosecute such application(s)
and maintain any patents derived therefrom. Furthermore, XCYTE shall have the right to assume responsibility for prosecuting and maintaining any FRESENIUS Patent that relates to the XcellerateTM Technology that FRESENIUS intends to abandon or otherwise cause or allow to be
forfeited. FRESENIUS shall give XCYTE notice thereof within a reasonable period prior to allowing such patents or certain claims therein to become abandoned or otherwise forfeited. 
  
         10.2.4. The Parties shall at all times fully cooperate in order to
reasonably implement the foregoing provisions. 
  
 10.3.
Enforcement of XCYTE Technology. 
  
         10.3.1. In the event that a Party becomes aware that any of the XCYTE Patents or XcellerateTM Technology in the Field in the Territory is infringed or misappropriated by a Third Party, such Party will promptly notify the other Party in
writing. The notice shall set forth the facts of such infringement or misappropriation in reasonable detail. FRESENIUS will have the first right, but not the obligation, to institute, prosecute and control any action or proceeding with respect to
any claim of infringement of any Third Party patents (as provided above) or any of the XCYTE Patents and XcellerateTM Technology, however, solely in the Field in the Territory, using counsel of its choice and at its cost. For purposes of clarity, XCYTE shall have the
first right, but not the obligation, to institute, prosecute and control any action or proceeding with respect to any claim of infringement of any Third Party patents or any of the XCYTE Patents and XcellerateTM Technology in all other cases, including infringement of the XCYTE Patents or
XcellerateTM Technology where the Field and/or the
Territory is part of the scope of infringement alleged. If FRESENIUS does not institute, prosecute and control any action or proceeding within [*] days after giving or receiving notice (as set forth above), then XCYTE, after notifying
FRESENIUS in writing, will be entitled but will have no obligation to institute, prosecute and control any action or proceeding with respect to any claim of infringement of any Third Party patents or any of the XCYTE Patents and XcellerateTM Technology, or otherwise abate the offending activity
using counsel of its choice and at its cost. The latter sentence shall apply 
  

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omitted portions. 

  

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 mutatis mutandis where XCYTE has the first right to enforce the XcellerateTM Technology, but only to the extent that the claim of infringement directly and
materially affects FRESENIUS’ rights in the Field and/or the Territory pursuant to this Agreement. In any event, XCYTE and FRESENIUS will provide reasonable assistance to one another and will reasonably cooperate in any such litigation at the
other’s request without expense to the requesting Party. FRESENIUS shall consider in good faith all of XCYTE’s concerns with regards to actions of FRESENIUS in any enforcement activity that may risk the invalidity of the XCYTE Patents. No
settlement, consent judgment or other voluntary final disposition of a suit may be entered into without the consent of the other Party if such settlement would subject the other Party to an injunction or if such settlement or judgment would
materially diminish or limit the rights and activities of the other Party (which consent shall not be withheld unreasonably). XCYTE and FRESENIUS will recover their respective actual out-of-pocket expenses, or equitable proportions thereof,
associated with any litigation or settlement thereof from any recovery made by any Party but only to the extent that such recovery is associated with a claim of infringement that directly and materially affects FRESENIUS’ rights in the Field
and/or the Territory pursuant to this Agreement. Any excess amount attributable to infringement of any patent or patent application included within XCYTE Patents that directly and materially affects FRESENIUS’ rights in the Field and/or the
Territory pursuant to this Agreement, will be shared between XCYTE and FRESENIUS and distributed proportionately between XCYTE and FRESENIUS (calculated on the basis of the Parties’ respective financial interest in the sales of Product that
were the subject of the litigation had such sales been made by FRESENIUS, or its Affiliates or Sublicensees as provided in this Agreement), provided in no event will XCYTE’s share of the excess amount exceed the royalties which would otherwise
be due to XCYTE for the sales of Product that were the subject of the litigation had such sales been made by FRESENIUS or its Affiliates or Sublicensees. 
  
 10.3.2. FRESENIUS shall have the right, at its sole expense, to determine the appropriate course of action to enforce the FRESENIUS Patents or otherwise
abate the infringement thereof, to take (or refrain from taking) appropriate action to enforce the FRESENIUS Patents, to control any litigation or other enforcement action and to enter into, or permit, the settlement of any such litigation or other
enforcement action with respect to the FRESENIUS Patents. All monies recovered upon the final judgment or settlement of any such suit to enforce any FRESENIUS Patents shall be retained by FRESENIUS. XCYTE and FRESENIUS shall fully cooperate with
each other in any action to enforce the FRESENIUS Patents. If FRESENIUS fails to take any action to enforce any FRESENIUS Patent that relates to the XcellerateTM Technology or control any litigation with respect to such FRESENIUS Patents within a period of [*] days after
reasonable notice of the infringement of such FRESENIUS Patents, then XCYTE shall have the right to bring and control any such action by counsel of its own choice, and in such case, all monies recovered upon the final judgment or settlement of any
such suit to enforce such FRESENIUS Patents shall be retained by XCYTE. In such a case, FRESENIUS shall cooperate fully with XCYTE, at XCYTE’s expense, in its efforts to enforce the FRESENIUS Patents, including being joined as a party to such
action if necessary. 
  

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omitted portions. 

  

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 10.4. Prior Patent Rights. Notwithstanding anything to the contrary in this Agreement, with
respect to any XCYTE Patents that are subject to the XCYTE In-Licenses, the rights and obligations of the Parties under Section 10.2 and 10.3 shall be subject to XCYTE’s licensors’ rights to participate in and control prosecution,
maintenance and enforcement of such XCYTE Patents in accordance with the terms and conditions of the applicable XCYTE In-License. 
  
 ARTICLE 11—INFRINGEMENT ACTIONS BY THIRD PARTIES. 
 Subject to the obligations of each Party pursuant to Article 16, if FRESENIUS, XCYTE or their respective Affiliates, or FRESENIUS’ Sublicensees, is sued by a Third Party for infringement of a Third Party’s patent because of the
use of the XcellerateTM Technology in the Field in
the Territory, the Party which has been sued shall promptly notify the other Party in no event later than [*] days of the institution of such suit. The notice shall set forth the facts of such infringement and provide evidence of such
infringement that is within the notifying Party’s control. If FRESENIUS or its Sublicensees are sued, FRESENIUS shall have the right, in its sole discretion, to control the defense of such suit at its own expense, and XCYTE shall have the right
to be represented by advisory counsel of its own selection, at its own expense, and shall cooperate fully in the defense of such suit and furnish to XCYTE all evidence and assistance in its control. If FRESENIUS does not elect within [*] days
after receipt of such notice to so control the defense of such suit, XCYTE may undertake such control at its own expense, and FRESENIUS shall then have the right to be represented by advisory counsel of its own selection and at its own expense, and
FRESENIUS shall cooperate fully in the defense of such suit and furnish to XCYTE all evidence and assistance in FRESENIUS’ control. The Party controlling the suit shall keep the other Party reasonably informed of the status of the suit under
this Article 12. In no event may the Party controlling the suit settle or otherwise consent to an adverse judgment in such suit that diminishes the rights or interests of the non-controlling Party without the express written consent of the
non-controlling Party. Any judgments, awards, settlements or damages payable with respect to legal proceedings covered by this Article 12 shall be paid by or to the Party which controls the litigation; provided, however, that if the
other Party has elected to be represented by advisory counsel, the other Party shall receive the actual reasonable cost of its legal fees for such advisory counsel. 
  
 ARTICLE 12—REGULATORY ASSISTANCE. 
 Each Party will provide the other Party access to all of its regulatory filings (and underlying data), relating to the products using the XcellerateTM Technology, to the extent such filings and data (including raw data and relevant
analyzed data generated) are necessary to support comparable filings by such other Party with regulatory authorities in other jurisdictions, and such Party is legally and contractually able to provide such access. Each Party may cross-reference the
regulatory filings of the other Party, to the extent allowed under applicable laws. FRESENIUS shall keep XCYTE reasonably informed on any filings and procedures with local Regulatory Agencies relating to Products. For the avoidance of doubt,
FRESENIUS shall not file, or take any action related to filing, for Regulatory Approval in any country outside the Territory without the prior written consent of XCYTE, and XCYTE shall not file for Regulatory Approval 
  

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

  
  

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 in any country in North America relating to the use of the XcellerateTM Technology in the Field except in accordance with Section 3.4 hereof. 
  
 ARTICLE 13 – REPRESENTATIONS AND WARRANTIES. 
 13.1. Representations and Warranties. 
 (a) This Agreement has been duly executed and delivered by each Party and constitutes the valid and binding obligation of each Party, enforceable against such Party in accordance with its terms, except as enforceability may be limited by
bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or other laws relating to or affecting creditors’ rights generally and by general equitable principles. The execution, delivery and performance of this Agreement has been
duly authorized by all necessary action on the part of each Party, its officers and directors. 
  
 (b) The execution, delivery and performance of the Agreement by each Party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor
violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 
  
 (c) XCYTE has not, and during the term of the Agreement will not, grant any right to any Third Party relating to the XcellerateTM Technology, which would conflict with the rights
granted to FRESENIUS hereunder. 
  
 (d) XCYTE represents and
warrants that it has the right to grant the licenses granted herein. 
  
 (e) As of the Effective Date, XCYTE has no actual knowledge and no reason to believe that the use of XcellerateTM Technology as contemplated by this Agreement infringes any Third Party intellectual property rights. 
  
 (f) As of the Effective Date, XCYTE has no actual knowledge and no reason to
believe that any of the XCYTE Patents are invalid or unenforceable or the subject of an interference or cancellation proceeding (either actual or potentially by notification by a potential Third Party intending to file for such relief). 

 
 (g) XCYTE represents and warrants that XCYTE is not in material default,
without opportunity to cure, with the contractual partners of the XCYTE In-Licenses. 
  
 (h) XCYTE represents and warrants that the XCYTETM Dynabeads® are
manufactured with the Specifications and in all material respects in accordance with applicable cGMP. 
  
 (i) FRESENIUS represents and warrants that it will comply with all applicable laws and regulations (A) in conducting the Research Program, Phase I/II
Clinical Trial, any Additional Pre-pivotal Clinical Trials and Pivotal Trial, (B) in its use, directly or indirectly, of the XcellerateTM Technology and (C) in any action or inaction related to regulatory submissions involving a Product. 
  

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 13.2. Performance by Affiliates. 
 The Parties recognize that each may perform some or all of its obligations under this Agreement through Affiliates, provided, however, that
each Party shall remain responsible and be guarantor of the performance by its Affiliates and shall cause its Affiliates to comply with the provisions of this Agreement in connection with such performance. 
  
 ARTICLE 14 – TERM AND TERMINATION. 
 14.1. Term. 
  
 Unless earlier terminated pursuant to this Article 14, the term of this Agreement shall commence on the Effective Date and shall remain in full force and effect until the
expiration of the Royalty Term. If FRESENIUS agrees to license in any New Technology, the term of FRESENIUS’ obligation shall extend until the later of (i) the last to expire Valid Patent Claim covering such New Technology, or (ii)
fifteen years after the First Commercial Sale of a Product derived from such New Technology in a respective country 
  
 14.2. Termination by FRESENIUS. 
  
 If (i) FRESENIUS determines in good faith that it cannot develop a commercially viable Product or (ii) FRESENIUS is required, without a reasonable
alternative, by an applicable regulatory authority in the Territory to audit the manufacturing facility of the XcyteTM Dynabeads®, and such manufacturer does not allow FRESENIUS or the applicable regulatory authority to perform such audit during normal business hours, then so long as FRESENIUS had provided to such
manufacturer at least [*] days’ advance written notice of its request to audit the facility, then FRESENIUS shall have the right at any time to terminate this Agreement by providing not less than [*] days prior notice to XCYTE of
such termination. 
  
 14.3. Termination by XCYTE upon
Failure to Meet Milestone. 
  
 If FRESENIUS does not meet
the diligence obligations set forth in Section 5.3, then XCYTE may terminate this Agreement immediately without prior written notice. 
  
 14.4. Termination for Cause. 
  
 Either Party may terminate this Agreement for material breach by the other Party (the “Breaching Party”) of any material provision of the
Agreement, if the Breaching Party has not cured such breach within [*] days after notice thereof; provided, however, that neither Party shall be deemed to be in material breach of this Agreement for purposes of a termination
hereunder during any period in which a good faith dispute between the Parties exists regarding performance of breach of its obligations hereunder. For the avoidance of doubt, it shall be deemed a breach of this Agreement if XCYTE terminates the
XCYTE In-Licenses or if at least one of the licensors of the XCYTE In-Licenses effectively terminates the XCYTE In-Licenses. 
  

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

  

 -29- 

 14.5. Termination Upon Insolvency. 
  
 Either Party may terminate this Agreement if, at any time, the other Party
shall file in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of that
Party or of its assets, or if such other Party proposes a written agreement of composition or extension of its debts, or if such other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such
petition shall not be dismissed within [*] days after the filing thereof, or if such other Party shall propose or be a party to any dissolution or liquidation, or if such other Party shall make an assignment for the benefit of its creditors.

  
 14.6. Termination of XCYTE In-Licenses. XCYTE
shall not terminate or enter into modifications of the XCYTE In-Licenses if such modification would materially and adversely affect the rights of FRESENIUS hereunder without FRESENIUS’ prior written consent. All rights and obligations under an
XCYTE In-License sublicensed under this Agreement shall terminate upon [*] days prior written notice by XCYTE if FRESENIUS breaches any material provision of such XCYTE In-License Agreement and fails to cure such breach within such [*]
day period; provided, however such cure period may be extended by consent of the Parties. All rights and obligations under an XCYTE In-License sublicensed under this Agreement shall terminate upon termination of such XCYTE In-License; subject to
FRESENIUS’ right, if any, under such XCYTE In-License to enter into a direct license with licensor upon the terms and conditions set forth in such XCYTE In-License. 
  
 14.7. Effect of Expiration and Termination. 
  
 14.7.1. Except where explicitly provided within this Agreement, termination of this Agreement for any reason, or expiration
of this Agreement, with not affect any: (i) obligations, including payment of any royalties or other sums which have accrued as of the date of termination or expiration, and (ii) rights and obligations which, from the context thereof, are intended
to survive termination or expiration of this Agreement, including provisions of Articles 9, 10, 11, 12, 16 and 21, and Sections 6.2, 7.2, 7.3 and 14.7, which shall survive the expiration or termination of the Agreement. Notwithstanding the
foregoing, all licenses granted by XCYTE to FRESENIUS hereunder, including all Exclusive Licenses, will immediately terminate upon termination of this Agreement pursuant to Sections 14.2, 14.3, 14.4 or 14.5. 
  
 14.7.2 Upon termination of this Agreement, FRESENIUS shall cease to make,
have made, use, import, sell and offer for sale all Products; terminate all sublicenses, and cause all sublicensees to cease making, having made, using, importing, selling and offering for sale all Products; and pay all monies owed to XCYTE under
this Agreement. However, If FRESENIUS terminates this Agreement pursuant to Section 14.4 hereof because of a material breach of this Agreement by XCYTE, FRESENIUS shall have a period of [*] months to sell off its inventory of Product(s)
existing on the date of termination of this Agreement and shall pay royalties in 
  

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

  

 -30- 

 accordance with this Agreement to XCYTE with respect to such Product(s) within [*] days following the expiration
of such [*]-month period (“Sell Off Right”). 
  
 14.7.3 In the event this Agreement is terminated by FRESENIUS under Section 14.2, then, upon request of XCYTE, the Parties shall negotiate in good faith a commercially reasonable license to XCYTE under the FRESENIUS Patents, FRESENIUS
know-how and Regulatory Approvals or submissions, at royalty rates to be determined by good faith negotiations of the Parties at the time of such termination, taking into account factors including, but not limited to, the financial investment by
FRESENIUS during the term of the Agreement, the relative contributions of the Parties to the pre-clinical and clinical development of, and the regulatory efforts relating to, the product or products subject to royalties, the degree of protection
that the FRESENIUS Patents and FRESENIUS know-how afford against unlicensed competition, the potential market size for such product or products, and the then current “market rates” for royalties on licenses of similar scope for programs at
a similar stage of development; provided, however, that in no event shall the rate of such royalties be more than the rates set forth in Section 6.1. 
  
 14.7.3. Upon the expiration of the Royalty Term for each Product pursuant to Section 14.1, XCYTE hereby grants FRESENIUS a
royalty-free, perpetual, license in the Field within the Territory to use the XcellerateTM Technology for that Product. 
  
 ARTICLE 15 – XCYTE BANKRUPTCY 
 If FRESENIUS elects not to terminate this Agreement pursuant to Section 14.5 upon
XCYTE’s bankruptcy, XCYTE, subject to applicable bankruptcy laws and regulations, shall not prohibit FRESENIUS from entering into supply agreements with Dynal, Inc., and Dynal, A.S.A, and Lonza Biologics, in order to maintain the supply of
XCYTETM Dynabeads® for FRESENIUS. In addition to any payments required under this Agreement,
FRESENIUS shall pay to XCYTE a royalty of [*] percent ([*]%) upon the transfer price for such XCYTETM Dynabeads®. 
  
 ARTICLE
16—INDEMNITY. 
 16.1. Direct Indemnity. 
  
 16.1.1. Each Party shall indemnify and hold harmless, and hereby forever releases and discharges the other Party from and
against all claims, demands, liabilities, damages and expenses, including attorneys’ fees and costs (collectively, the “Liabilities”) arising out of (i) the breach of any material provision of this Agreement by the indemnifying
Party (or the inaccuracy of any representation or warranty made by such Party in this Agreement), except to the extent such Liabilities resulted from the gross negligence, recklessness or willful misconduct of the other Party; or (ii) the gross
negligence, recklessness or willful misconduct of the indemnifying Party. 
  

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

  

 -31- 

 16.1.2. FRESENIUS shall indemnify and hold harmless, and hereby forever releases and discharges XCYTE
from and against all Liabilities suffered or incurred arising out of any Third Party claims for personal injury, death or disability or any product recall to the extent caused by (a) the use, promotion, manufacture, sale, lease, consumption or
advertisement of any Product or other exercise of its rights under this Agreement including, without limitation, amounts paid in settlement of claims, proceedings, or investigations; except in each case to the extent such Liabilities resulted from
the gross negligence, recklessness or willful misconduct by XCYTE or the inaccuracy of any representation or warranty made by XCYTE in this Agreement, and agrees to bear all costs and expenses, including without limitation, reasonable
attorney’s fees incurred in connection with the defense or settlement of any such claim, proceeding or investigation as such costs and expenses are incurred in advance of judgment. 
  
 16.2. Procedure. 
  
 A Party (the “Indemnitee”) that intends to claim indemnification under this Article 16 shall promptly provide notice to the other Party
(the “Indemnitor”) of any Liability or action in respect of which the Indemnitee intends to claim such indemnification, which notice shall include a reasonable identification of the alleged facts giving rise to such Liability, and
the Indemnitor shall have the right to participate in, and, to the extent the Indemnitor so desires, jointly with any other Indemnitor similarly noticed, to assume the defense thereof with counsel selected by the Indemnitor; provided,
however, that the Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitor, if representation of such Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to
actual or potential differing interests between such Indemnitee and any other Party represented by such counsel in such proceedings. Any settlement of a Liability for which any Indemnitee seeks to be reimbursed, indemnified, defended or held
harmless under this Article 16 shall be subject to prior consent of such Indemnitee, such consent shall be withheld unreasonably. 
  
 ARTICLE 17- FORCE MAJEURE. 
 No Party (or any of
its Affiliates) shall be held liable or responsible to the other Party (or any of its Affiliates) nor be deemed to have defaulted under or breached the Agreement for failure or delay in fulfilling or performing any term of the Agreement when such
failure or delay is caused by or results from causes beyond the reasonable control of the affected Party (or any of its Affiliates) including fire, floods, embargoes, war, acts of war (whether war be declared or not), insurrections, riots, civil
commotions, acts of God or acts, or omissions or delays in acting by any governmental authority (collectively, “Events of Force Majeure”); provided, however, that the affected Party shall exert all reasonable efforts
to eliminate, cure or overcome any such Event of Force Majeure and to resume performance of its covenants with all possible speed. Notwithstanding the foregoing, to the extent that an Event of Force Majeure continues for a period in excess of six
(6) months, the affected Party shall promptly notify in writing the other Party of such Event of Force Majeure and within four (4) months of the other Party’s receipt of such notice, the Parties agree to negotiate in good faith either (i) to
resolve the Event of Force Majeure, if possible, (ii) to extend by mutual agreement the time period to resolve, eliminate, 
  

 -32- 

 cure or overcome such Event of Force Majeure, (iii) to amend this Agreement to the extent reasonably possible, or (iv) to
terminate this Agreement. 
  
 ARTICLE 18 – ASSIGNMENT.

 This Agreement may not be assigned or otherwise transferred, nor, except as expressly provided hereunder, may any right or obligations
hereunder be assigned or transferred to any Third Party by either Party without the consent of the other Party, such consent not to be unreasonably withheld; provided, however, that FRESENIUS may assign this Agreement to EUFETS, and
that either Party may, without such consent but with notification, assign this Agreement and its rights and obligations hereunder to any of its Affiliates or in connection with the transfer or sale of all or substantially all of its business, or in
the event of its merger or consolidation (such merger or consolidation shall be hereinafter referred to as a “Change in Control”). Any permitted assignee shall assume all rights and obligations of its assignor under this Agreement;
provided, however, that an acquiror of XCYTE in connection with a Change of Control shall not be obligated, but shall have the right, to disclose or offer to FRESENIUS pursuant to Section 3.3 any New Technologies owned or controlled by such acquiror
prior to the Change of Control, or any New Technologies owned or controlled by acquiror or XCYTE after a Change of Control. 
  
 ARTICLE 19 – SEVERABILITY. 
 Each Party
hereby agrees that it does not intend to violate any public policy, statutory or common laws, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or association of countries. Should
one or more provisions of this Agreement be or become invalid, the Parties hereto shall substitute, by mutual consent, valid provisions for such invalid provisions which valid provisions in their economic effect are sufficiently similar to the
invalid provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such provisions. 
  
 In case such provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall not affect the validity of this
Agreement as a whole, unless the invalid provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid provisions. 
  
 ARTICLE 20 – INSURANCE. 
 During the term of this Agreement and thereafter for the period of time required below, each Party shall maintain an ongoing basis comprehensive general
liability insurance in the minimum amount of $[*] per occurrence and $[*] annual aggregate combined single limit for bodily injury and property damage liability; and commencing not later than 30 days prior to the first use in humans of the first
potential Product and thereafter for the period of time required below, each Party shall obtain and maintain on an ongoing basis products liability insurance in the amount of at least $[*] per occurrence and annual aggregate combined single limit
for bodily injury and property damage liability. All of such insurance coverage shall be maintained with an insurance company or companies having an A.M. Best rating of “A-” or better and an aggregate deductible not to exceed $[*] per
occurrence. 
  

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

  

 -33- 

 Not later than the effective date of this Agreement with respect to the comprehensive general liability
coverage, and not later than 30 days prior to the first use in humans of the first potential Product with respect to the product liability coverage, each Party shall provide to the other a certificate(s) evidencing all such required coverage
hereunder. Thereafter the Parties shall maintain such insurance coverage without interruption during the term of this Agreement and for a period of at least five (5) years after the expiration or termination of the Agreement and shall provide
certificates evidencing such insurance coverage without interruption on an annual basis (by no later than the annual renewal date for such coverage) during the period of time for which such coverage must be maintained. 
  
 ARTICLE 21 – MISCELLANEOUS. 
 21.1. Notices. 
  
 Any consent, notice or report required or permitted to be given or made under this Agreement by one of the Parties hereto to the other shall be in
writing, delivered personally or by facsimile (and promptly confirmed by personal delivery, first class air mail or courier), first class air mail or courier, postage prepaid (where applicable), addressed to such other Party at its address indicated
below, or to such other address as the addressee shall have last furnished in writing to the address or in accordance with this Section 21.1 and (except as otherwise provided in this Agreement) shall be effective upon receipt by the addressee.

  
 If to Xcyte Therapies, Inc.: 
 1124 Columbia Street, Suite 130 
 Seattle, WA
98104 
 Attention: Chief Executive Officer & General Counsel 
  
 With copy to: 
 Venture Law Group 
 4750 Carillon Point 
 Kirkland, WA 98033 
 Attention: Sonya F. Erickson 
  
 If to FRESENIUS BIOTECH GMBH: 
 Else-Kröner-Straße 1 
 D-61352 Bad
Homburg v. d. H. 
 Attention: Chief Executive Officer 
  
 With copy to: 
 FRESENIUS AG 
 Else-Kröner-Straße 1 
 D-61352 Bad Homburg v. d. H. 
 Attention: General Counsel 
  

 -34- 

 21.2. Applicable Law. 
  
 The Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, U.S.A., without
regard to the conflict of law principles thereof. 
  
 21.3.
Dispute Resolution. 
  
 The Parties agree that if
any dispute or disagreement arises between FRESENIUS on the one hand and XCYTE on the other in respect of this Agreement, they shall follow the following procedure in an attempt to resolve the dispute or disagreement. 
  
 (a) The Party claiming that such a dispute exists shall give notice in
writing (“Notice of Dispute”) to the other Party of the nature of the dispute; 
  
 (b) Within fourteen (14) business days of receipt of a Notice of Dispute, a nominee or nominees of FRESENIUS and a nominee or nominees of XCYTE shall meet
in person and exchange written summaries reflecting, in reasonable detail, the nature and extent of the dispute, and at this meeting they shall use their reasonable endeavors to resolve the dispute; 
  
 (c) If, within a further period of fourteen (14) business days, the dispute
has not been resolved, the President of XCYTE and the President of FRESENIUS or their respective designees shall meet at a mutually agreed upon time and location for the purpose of resolving such dispute; 
  
 (d) If, within a further period of thirty (30) business days, the dispute has
not been resolved or if, for any reason, the required meeting has not been held, then the same shall be submitted by the Parties to expedited arbitration with the International Chamber of Commerce (“ICC”) in Paris, France, such
arbitration to be conducted in the English language in accordance with the then-current commercial arbitration rules of the ICC except as otherwise provided herein. Each Party shall choose one (1) arbitrator within twenty (20) days of receipt of
notice of the intent to arbitrate and the two (2) arbitrators so selected shall choose a third arbitrator by mutual agreement within twenty (20) days of the selection of the initial two (2) arbitrators; provided that if any of the arbitrators are
not selected within period of time stated herein or any extension of time that is mutually agreed upon, the ITI shall make such appointment within twenty (20) days of such failure. The costs of the arbitration shall be shared equally by the Parties;
provided that the judgment rendered by the arbitrator shall include reimbursement of the prevailing parties’ costs of arbitration, reasonable attorneys’ fees and reasonable costs for expert and other witnesses. Nothing in this Agreement
shall be deemed as preventing either Party from seeking injunctive relief (or any other provisional remedy). If the issues in dispute involve scientific, technical or commercial matters, any arbitrator chosen hereunder shall have educational
training and/or industry experience sufficient to demonstrate a reasonable level of relevant scientific, medical and industry knowledge. 
  
 (e) In the event of a dispute regarding any payments owing under this Agreement, all undisputed amounts shall be paid promptly when due and the balance,
if any, promptly after resolution of the dispute. 
  

 -35- 

 21.4. Entire Agreement. 
  
 This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof. All express or
implied agreements and understandings, either oral or written, heretofore made are expressly superseded by this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties hereto.

  
 21.5. Independent Contractors. 
  
 XCYTE and FRESENIUS each acknowledge that they shall be independent
contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency. Neither XCYTE nor FRESENIUS shall have the authority to make any statements, representations or commitments of any kind, or to
take any action, which shall be binding on the other Party, without the prior consent of the other Party to do so. 
  
 21.6. Affiliates. 
  
 Each Party shall cause its respective Affiliates to comply fully with the provisions of this Agreement to the extent such provisions specifically relate
to, or are intended to specifically relate to, such Affiliates, as though such Affiliates were expressly named as joint obligors hereunder. 
  
 21.7. Waiver. 
  
 The waiver by either Party hereto of any right hereunder or the failure to perform or of a breach by the other Party shall not be deemed a waiver of any
other right hereunder or of any other breach or failure by said other Party whether of a similar nature or otherwise. 
  
 21.8. Counterparts. 
  
 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument. 
  
 [Signature page follows]

  
  

 -36- 

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

  

			
	XCYTE THERAPIES, INC.
		
	 By:
	 	 /s/ Ronald Jay Berenson

	 Name:
	 	 Ronald Jay Berenson, MD

	 Title:
	 	 CEO and President

	
	FRESENIUS BIOTECHGmbH
		
	 By:
	 	 /s/ Thomas G. Gottwald

	 Name:
	 	 Thomas B. Gottwald, M.D., Ph.D.

	 Title:
	 	 President

		
	 By:
	 	 /s/ Wolfgang Hockh

	 Name:
	 	 Wolfgang Hockh, Ph.D.

	 Title:
	 	 Executive Vice President

  
 [SIGNATURE
PAGE TO COLLABORATION AGREEMENT] 

 EXHIBIT A 
  
 XCYTE PATENTS 
  
 I. Existing XcellerateTM Technology [including In-License Patents] 
  

					
	Patent No.	 	Description	 	Licensor
	

	 PCT/US89/05304 (EP445228B1)
	 	 	 	 
	

	 PCT/US94/06255 (EP0700430A1)
	 	 	 	 
	

	 PCT/US94/13782 (EP764203A1)
	 	 	 	 
	

	 PCT/US96/06200 (EP824594A1)
	 	 	 	 
	

	 6,352,694
	 	 	 	 
	

	 08/435,816
	 	 	 	 
	

	 08/592,711
	 	 	 	 
	

	 08/475,136
	 	 	 	 
	

	 5,858,358
	 	 	 	 
	

	 09/183,055
	 	 	 	 
	

	 09/350,202
	 	 	 	 
	

	 09/553,865
	 	 	 	 
	

	 09/349,915
	 	 	 	 
	

	 5,883,223
	 	 	 	 
	

	 09/794,230
	 	 	 	 
	

	 PCT/US01/06139
	 	 	 	 
	

	 09/960,264
	 	 	 	 
	

	 10/133,236
	 	 	 	 
	

	 10/187,467
	 	 	 	 
	

	 [*]
	 	 	 	 
	

	 PCT/US02/28161
	 	 	 	 
	

  
 II. New Technologies

  

							
	Patent No.	 	Description	 	Licensor	  	Applicable Third-
Party Royalty
Obligation
	

				
	 	 	 	 	 	  	 
	

				
	 	 	 	 	 	  	 
	

				
	 	 	 	 	 	  	 
	

  

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

 EXHIBIT B 
  
 CLINICAL ENDPOINTS 
  
 Patient Population 
  
 Male and female patients between 18 and 65 years of age who are infected with HIV-1 and have viral load over [*] copies/ml on [*] different occasions during HAART treatment for more than [*]
months. Patients who will participate must have experience with all 3 classes of antiretrovirals and have shown resistance and/or intolerabilities against at least one of the compounds of each class. [*] must be under [*] per μl
(>[*] per μl). Patients must not have any [*]. 
  
 1)
Manufacturing related endpoints 
  
 - feasibility of the manufacturing
process ([*] of > [*] + [*]) 
  
 - final cell product
sufficient to meet the requirements of the Paul Ehrlich Institute for clinical trials of somatic cell and gene therapy products 
  
 shall apply for [*] patients treated in the Phase I/II Clinical Trial who were selected from a clinically reasonable number of patients screened/evaluated for this
clinical trial. 
  
 2) Safety and toxicity endpoints 
  
 - no Grade IV (NCI Clinical Toxicity Criteria) treatment related toxicity (as measured by
physical examination, vital signs, laboratory safety tests, Karnofsky performance score) [*] weeks following infusion of gene modified T cells 
  
 shall apply for [*] patients treated in the Phase I/II Clinical Trial who were selected from a clinically reasonable number of patients screened/evaluated for this
clinical trial. 
  
 3) Efficacy endpoints 
  
 [*] to be quantified in [*]. In the case, that no [*] are available,
[*] are to be quantified in the peripheral blood. 
  
 Any one of the
following three endpoints: 
 - [*] fold enrichment of gene modified T cells [*] weeks after treatment [*], or 
  
 - proportion of [*] > [*], [*] weeks after treatment, or 

 
 - [*] of [*] over the course of the clinical trial. 
  
  

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

 In addition, the following endpoint must also be met: 
  
 -[*] from [*] following treatment. 
  
 Efficacy endpoints shall apply for at least [*] out of [*] patients treated in Phase I/II Clinical Trial. 
  
  

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

  

 EXHIBIT C 
  
 XCYTE IN-LICENSE AGREEMENTS 
  

(1) License and Supply Agreement dated October 15, 1999 by and between XCYTE and Diaclone S.A., as amended 
  
 (2) Non-Exclusive License Agreement dated October 20, 1999 by and between XCYTE and Fred
Hutchinson Cancer Research Center, as amended 
  
 (3) License Agreement dated July
8, 1998 by and between XCYTE and Genetics Institute, L.L.C. (“GI”), as amended, including the exhibits: 
  
 (A) License Agreement between GI and the Secretary of the Navy dated December 10, 1996, as amended, 
  
 (B) License Agreement dated May 28, 1992 between GI and the University of
Michigan, as amended, 
  
 (C) License Agreement dated July 20,
1993 between GI (as successor-in-interest to Repligen Corporation) and Dana Farber Cancer Institute, as amended. 
  

 EXHIBIT D 
  
 SPECIFICATIONS 
  
 XcyteTM Dynabeads®

			
	 Volume:
 Storage:
 Storage buffer:
	 	 10 ml
 Store at 2-8°C
 [*]

  

			
	QUALITY CONTROL SPECIFICATIONS:
		
	 Bacterial Endotoxins
 Test:
	  	 “Gel Cloth Method” (LAL)
 [*] Bacterial
Endotoxins Test,
 Criterion: Less than or equal to [*]

		
	 Sterility Test
	  	 “Direct Transfer Method”
 [*] Sterility
Tests
 Criterion: No growth

		
	 Antibody leakage
	  	 Conc. of antibody in buffer
 Criteria:
 IgG2a (XR-CD28): Report value, for info. only
 IgG2b (XR-CD3): Report value, for info. only

		
	 Antibody binding
	  	 Conc. of antibody on particle
 Criteria:
 IgG2a (XR-CD28): [*]
 IgG2b (XR-CD3):
[*]

		
	 Beads per ml
	  	 Counted by Coulter Counter Z2
 Criterion:
[*]

		
	 pH—measurement
	  	Criterion: pH [*]
		
	 Visual inspection
	  	Criterion: Clear suspension, brown particles
	 Xcyte;
	  	 
	 Functional assay
 (ELISA Spin down)
	  	 Criteria:
 IgG2a (XR-CD28): [*]
 IgG2b (XR-CD3): [*]

  
  

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

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