Document:

Termination Agreement

 Exhibit 10.11 
 TERMINATION AGREEMENT 
 This TERMINATION AGREEMENT (the “Termination Agreement”) is entered
this September 5, 2007 (the “Execution Date”) by QLT USA, Inc. (formerly Atrix Laboratories, Inc.) (“QLT USA”), a Delaware corporation, and Arius Pharmaceuticals, Inc. (“Arius”). 
 WHEREAS, Arius and QLT USA are parties to that certain License Agreement, dated May 27, 2004, as subsequently amended by that certain letter between
QLT USA and Arius, effective July 14, 2005, that certain Consent and Amendment Agreement between Arius, QLT USA, and CDC IV, LLC (“CDC”), as assignee of Clinical Development Capital LLC, dated July 14, 2005 (the “CDC
Consent”), and that certain Second Amendment Agreement between QLT USA, Arius, and CDC dated August 2, 2006 (such License Agreement, as amended, the “License”); 
 WHEREAS, Arius Two, Inc. (“Buyer”), an affiliate of Arius, intends to acquire all right, title, and interest to all BEMA-related assets owned
or controlled by QLT USA, as described in that certain Intellectual Property Assignment Agreement, entered into by Buyer and QLT USA as of September 5, 2007, and its related documents and exhibits (such acquisition, the “Acquisition”; such
agreement, the “Acquisition Agreement”); and 
 WHEREAS, it is a condition to the Acquisition, that Arius and QLT USA execute and
deliver this Termination Agreement. 
 NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Termination Agreement agree as follows: 
 1.
Definitions. Any capitalized terms not separately defined in this Termination Agreement shall have the meaning provided in the License. 
 2.
Termination of License. QLT USA, Arius, and CDC agree that the License, including the CDC Consent, shall terminate, including without limitation the provisions of Section 14.05(d) of the License, and neither such agreement nor any of its
provisions (regardless of, and notwithstanding, any stated survival pursuant to their terms) shall be of any further force and effect, upon the assignment of the Purchased Assets (as defined in the Acquisition Agreement) to Buyer as contemplated by
the Acquisition Agreement. For the avoidance of doubt and in consideration of the Purchased Assets, the payment therefor and the execution of, and consent to, this Agreement, each of Arius, CDC and QLT USA (each a “party” for purposes of
this Section 2), hereby releases, acquits and absolutely and forever discharges the other parties hereto, their affiliates, and its and their officers, directors, employees, agents, successors and assigns from any and all claims (including
royalty or indemnification claims), debts, liabilities, demands, damages, accounts, recordings, obligations, costs, attorneys’ fees, expenses, liens, actions and causes of action of every kind and nature, character and description, whether now
known or unknown, suspected or unsuspected, whether or not heretofore brought before any arbitrator, local, state or federal court, agency or other forum, arising out of or related to the License, whether occurring prior to or after the Execution
Date. The foregoing sentence shall not constitute a waiver or 

 
release of any party’s rights and obligations under (i) the Acquisition Agreement, (ii) that certain Intellectual Property Assignment
Agreement, dated August 2, 2006, between Arius Two and QLT USA, (iii) the New License Agreement (as defined in the Security Agreement attached as an exhibit to the Acquisition Agreement), (iv) the New License Agreement (as defined
under that certain Security Agreement dated August 2, 2006, between Arius Two and QLT USA), (v) any sublicense thereunder, (vi) that certain Clinical Development and Licensing Agreement between Arius, BioDelivery Sciences
International, Inc., and CDC, dated July 14, 2005, as amended, (vii) any consents, waivers, or amendments related to any of the foregoing (except to the extent they relate solely to the License), or (viii) any transactions
contemplated by any of the foregoing. 
 3. Effective Date of this Termination Agreement. This Termination Agreement shall not become effective until
CDC, in its capacity as a third-party beneficiary to certain terms and provisions contained in the License, has executed this Termination Agreement. 
 4.
Governing Law. This Termination Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Colorado. 
 5. Counterparts. This Termination Agreement may be executed in two or more counterparts, each of which shall be deemed and original, but all of which together shall constitute one and the same instrument. Signatures to the
Termination Agreement may be transmitted via facsimile and such signatures shall be deemed to be originals. 
 [Signature page to follow.]

  

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 IN WITNESS WHEREOF, the parties have executed and delivered this Termination Agreement as of the
Execution Date. 
  

			
	QLT USA, INC.
		
	By:	 	 /s/ Michael R. Duncan

	Name:	 	Michael R. Duncan
	Title:	 	President
	
	ARIUS PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Mark A. Sirgo

	Name:	 	Mark A. Sirgo
	Title:	 	President and CEO

 CDC IV, LLC, as a third party beneficiary of, and party to certain amendments and consents
(including the CDC Consent) with respect to, the License, hereby consents to the transactions contemplated by, and agrees to the provisions contained in, this Termination Agreement, including the termination of the License and the CDC Consent.

  

			
	CDC IV, LLC
		
	By:	 	 /s/ David Ramsey

	Name:	 	David Ramsey
	Title:	 	PartnerPatent and Trademark Security Agreement

 Exhibit 10.12 
 PATENT AND TRADEMARK SECURITY AGREEMENT 
 This PATENT AND TRADEMARK SECURITY AGREEMENT (this
“Agreement”), dated as of September 5, 2007, is entered into between Arius Two, Inc., a Delaware corporation (“Grantor”), which has a mailing address at 2501 Aerial Center Parkway, Suite 205, Morrisville, North Carolina
25760, and QLT USA, Inc., a Delaware corporation (“Lender”), having its principal executive office at 2579 Midpoint Drive, Fort Collins, Colorado 80525. 
 RECITALS 
 A. The Grantor, as borrower, and the Lender have entered into that certain Intellectual
Property Assignment Agreement dated as of September 5, 2007 (the “Transfer Agreement”) and Secured Promissory Note dated as of September 5, 2007 (the “Note”) (all capitalized terms used in this Agreement and not otherwise
defined herein having the meanings assigned to them in the Transfer Agreement); 
 B. Grantor is the owner of certain intellectual property,
identified below, in which Grantor is granting a security interest to Lender; 
 C. It is a condition precedent under the Transfer Agreement
that the Grantor enter into this Agreement and grant to the Lender the security interests hereinafter provided to secure the obligations of the Grantor described below 
 NOW THEREFORE, the parties hereto mutually agree as follows: 
 1. GRANT OF SECURITY INTEREST. 
 To secure the complete and timely payment and performance of all Obligations (as defined in the Security Agreement, dated as of September 5, 2007, between
the Grantor and the Lender (the “Security Agreement”)), and without limiting any other security interest Grantor has granted to Lender, Grantor hereby grants, assigns, and conveys to Lender a security interest in Grantor’s entire
right, title, and interest, whether now owned or hereafter acquired, in and to the following (the “Collateral”): 
 (i) All of
Grantor’s right to the Marks and trademark registrations related thereto, including but not limited to those listed on Exhibit A, as the same may be updated hereafter from time to time, and all trademark rights with respect thereto
throughout the Territory (as defined in the Transfer Agreement), including all proceeds thereof (including license royalties and proceeds of infringement suits), and rights to renew and extend such trademarks and trademark rights; 
 (ii) All of Grantor’s right, title, and interest, in and to BEMA Patent Rights, including but not limited to those listed on Exhibit B, as
the same may be updated hereafter from time to time, and all patent rights with respect thereto throughout the Territory, including all proceeds thereof (including license royalties and proceeds of infringement suits), foreign filing rights, and
rights to extend such patents and patent rights; 

 (iii) the entire goodwill of or associated with the businesses now or hereafter conducted by Grantor
connected with and symbolized by any of the aforementioned properties and assets; 
 (iv) all commercial tort claims associated with or
arising out of any of the aforementioned properties and assets; 
 (v) all accounts, all intangible intellectual or other similar property
and other general intangibles associated with or arising out of any of the aforementioned properties and assets and not otherwise described above, including all license payments and payments under insurance (whether or not the Lender is the loss
payee thereof) or any indemnity, warranty or guaranty payable by reason of loss or damage to or otherwise with respect to the foregoing Collateral; and 
 (vi) All products, proceeds and supporting obligations of or with respect to any and all of the foregoing Collateral. 
 2. AFTER-ACQUIRED PATENT OR TRADEMARK RIGHTS. 
 If Grantor shall obtain rights to any new trademarks, any new patentable
inventions or become entitled to the benefit of any patent application or patent for any reissue, division, or continuation, of any patent, in each case in the Territory and in connection with, derived from, or arising out of, the BEMA Technology,
the Marks or the Products, the provisions of this Agreement shall automatically apply thereto. Grantor shall give prompt notice in writing to Lender with respect to any such new trademarks or patents, or renewal or extension of any trademark
registration. Without limiting Grantor’s obligation under this Section 2, Grantor authorizes Lender to modify this Agreement by amending Exhibits A or B to include any such new patent or trademark rights. Notwithstanding the
foregoing, no failure to so modify this Agreement or amend Exhibits A or B shall in any way affect, invalidate or detract from Lender’s continuing security interest in all Collateral, whether or not listed on Exhibit A or B.

 3. GENERAL PROVISIONS. 
 3.1 Rights
Under Security Agreement. This Agreement has been granted in conjunction with the security interest granted to Lender under the Security Agreement. The rights and remedies of Lender with respect to the security interests granted herein are
without prejudice to, and are in addition to those set forth in the Security Agreement, all terms and provisions of which are incorporated herein by reference. 
 3.2 Successors. The benefits and burdens of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties; provided that Grantor may not
transfer any of the Collateral or any of its rights or obligations hereunder, without the prior written consent of Lender, except as specifically permitted by the Note or the Security Agreement. 
 3.3 Amendment; No Conflict. This Agreement is subject to modification only by a writing signed by the parties, except as provided in
Section 2 of this Agreement. To the extent that any provision of this Agreement conflicts with any provision of the Security Agreement, the 

  

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provision giving Lender greater rights or remedies shall govern, it being understood that the purpose of this Agreement is to add to, and not detract from,
the rights granted to Lender under the Security Agreement. 
 3.4 Governing Law. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of New York (as permitted by Section 5-1401 of the New York General Obligations Law), without giving effect to any choice of law rule that would cause the application of the laws of any
jurisdiction other than the internal laws of the State of New York to the rights and duties of the parties, except as required by mandatory provisions of law and to the extent the validity or perfection of the security interests hereunder, or the
remedies hereunder, in respect of any Collateral are governed by the law of a jurisdiction other than New York. 
 3.5 Waiver of Jury
Trial. THE GRANTOR AND, BY ITS ACCEPTANCE HEREOF, THE LENDER, HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT. 
 4. TERMINATION. Upon payment and performance in full of all Obligations (as defined in that certain Security Agreement between the parties of even date herewith),
the security interest created under this Agreement shall terminate and Lender shall promptly execute and deliver to Grantor such documents and instruments reasonably requested by Grantor as shall be necessary to evidence termination of all security
interests given by Grantor to Lender hereunder. 
 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written
above. 
  

							
	QLT USA, INC.	  	ARIUS TWO, INC.
				
	By:	 	 /s/ Michael R. Duncan
	  	By:	 	 /s/ Mark Sirgo

	Name:	 	Michael R. Duncan	  		 	Mark Sirgo, Chief Executive Officer
	Title:	 	President	  		 	

  

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 Exhibit A 
 MARKS 
 BEMA 
  

							
	 COUNTRY
	  	 APPLICATION NO./
 FILING DATE
	  	 REGISTRATION NO./
 REGISTRATION DATE
	  	 EXPIRATION/
 RENEWAL DATE

	United States	  	 78424675
 May 25, 2004
	  	Pending	  	

  

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 Exhibit B 
 PATENTS AND PATENT APPLICATIONS 
  

											
	 App. No./
 Patent No.
	  	 Filing Date/
 Issue Date
	  	 Country
	  	 Title
	  	 Status
	  	 Attorney
Docket No.

	 08/734,519
 5,800,832
	  	 18-Oct-1996
 01-Sep-1998
	  	US	  	Bioerodable Film For Delivery Of Pharmaceutical Compounds To Mucosal Surfaces	  	Granted	  	092
						
	 09/144,827
 6,159,498
	  	 01-Sep-1998
 12-Dec-2000
	  	US	  	Same As Above	  	Granted	  	092CN
						
	 PCT/US97/1
 8605
	  	16-Oct-1997	  	US	  	Pharmaceutical Carrier Device Suitable For Delivery Of Pharmaceutical Compounds To Mucosal Surfaces	  	Nationalized	  	092PC
						
	09/069,703	  	29-Apr-1998	  	US	  	Same As Above	  	Pending	  	092CPRCE
						
	09/684,682	  	04-Oct-2000	  	US	  	Same As Above	  	Abandoned	  	092CPDVRCE
						
	10/962,833	  	12-Oct-2004	  	US	  	Same As Above	  	Pending	  	092CPDVCN
						
	11/069,089	  	01-Mar-2005	  	US	  	Same As Above	  	Pending	  	092CPDVCN2
						
	 PCT/US99/0
 9378
	  	29-Apr-1999	  	PCT	  	Same As Above	  	Nationalized	  	093CPPC
						
	60/495,356	  	15-Aug-2003	  	US	  	Adhesive Bioerodible Transmucosal Drug Delivery System	  	Expired	  	093-1
						
	 PCT/US04/0
 26531
	  	16-Aug-2004	  	PCT	  	Same As Above	  	Nationalized	  	093PC
						
	11/355,312	  	15-Feb-2006	  	US	  	Same As Above	  	Pending	  	093CN
						
	11/645,091	  	22-Dec-2006	  	US	  	Same As Above	  	Pending	  	093CN2
						
	10/121,430	  	11-Apr-2002	  	US	  	Process For Loading A Drug Delivery Device	  	Abandoned	  	094
						
	 PCT/US03/1
 1313
	  	11-Apr-2003	  	PCT	  	Same As Above	  	Abandoned	  	094PC
						
	60/441,829	  	22-Jan-2003	  	US	  	Bioerodable Film For Delivery Of Pharmaceutical Compounds To Mucosal Surfaces	  	Expired	  	095-1
						
	10/763,063	  	22-Jan-2004	  	US	  	Same As Above	  	Unknown	  	095

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