Document:

Collaboration and License Agreement

 Exhibit 10.1 
  
 COLLABORATION AND LICENSE AGREEMENT 
  
 This Agreement is entered into as of September 27, 2004 among: 
  

	•	 	SEATTLE GENETICS, INC., a Delaware corporation, having its principal place of business at 21823 30th Drive S.E., Bothell, Washington 98021 (hereinafter referred to as
“Licensor”); and 

  

	•	 	BAYER PHARMACEUTICALS CORPORATION, a Delaware corporation, having its principal place of business at 400 Morgan Lane, West Haven, Connecticut, 06516-4175 (hereinafter
referred to as “Licensee”). 

  
 WITNESSETH 
  
 WHEREAS, Licensor
owns or Controls (as defined below) intellectual property rights relating to certain technology useful for linking certain proprietary [***] to other molecules, such as antibodies capable of directing such [***] to specific tissues and/or cells;

  
 WHEREAS, Licensee owns or Controls (as defined below)
intellectual property rights relating to antibodies to the Designated Antigen (as defined below), and is currently conducting research and development programs to incorporate such antibodies into pharmaceutical compounds that may have activity in
certain disease-related pathways, and to develop antibodies that bind to the Designated Antigen; 
  
 WHEREAS, Licensor and Licensee’s Affiliate (as defined below), [***] (the “Research Collaboration Agreement”), whereby
Licensor and Licensee’s Affiliate agreed to produce, purify and test certain antibodies conjugated to one or more [***]; 
  
 WHEREAS, Licensee now wishes to acquire from Licensor an exclusive worldwide license under Licensor’s patent rights and know-how related to
Licensor’s proprietary [***] for use in conjunction with Licensee’s development, commercialization, manufacture, marketing and sale of Licensee’s antibodies that bind to the Designated Antigen; and 
  
 WHEREAS, Licensor wishes to grant to Licensee an exclusive worldwide
license to Licensor’s [***] for use in conjunction with Licensee’s development, commercialization, manufacture, marketing and sale of Licensed Products (as defined below); 
  
 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 1 -
DEFINITIONS AND INTERPRETATION 
  
 1.1
Definitions: For the purposes of this Agreement the following words and phrases shall have the following meanings: 
  
 “ADC” or “Antibody-Drug Conjugate” means an Antibody [***] or [***] and that contains, uses or is made using Drug
Conjugation Technology. 
  

 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. 

 “ADC Access Fee” has the meaning set forth in Section 6.1.1. 
  
 “ADC Data” has the meaning set forth in Section 2.6.

  
 “Affiliate” of a Party means any corporation
or other business entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with a specified party. For such purposes (and for purposes of Article 16 hereof), “control,”
“controlled by” and “under common control with” shall mean the possession of the power to direct or cause the direction of the management and policies of a specified party, whether through the ownership of voting equity, voting
member or partnership interests, control of a majority of the board of directors or other similar body, by contract or otherwise. In the case of a corporation, the direct or indirect ownership of more than [***] of its outstanding voting shares or
the ability otherwise to elect a majority of the board of directors or other managing authority of the entity shall in any event be presumptively deemed to confer control, it being understood that the direct or indirect ownership of a lesser
percentage of such shares shall not necessarily preclude the existence of control. 
  
 “Agreement” means this agreement, all amendments and supplements to this Agreement and all schedules to this Agreement, including the following: 
  

			
	 Schedule A    -
	 	 Research Plan.

		
	 Schedule B    -
	 	 Licensor Patents.

		
	 Schedule C    -
	 	 Licensor In-Licenses.

		
	 Schedule D    -
	 	 Sample Royalty Reduction Calculation.

  
 “Antibody” or “Antibodies” means any antibody, or [***], that binds to an Antigen. 
  
 “Antigen” means any [***]. 
  
 “Applicable Laws” means all applicable laws, rules, and regulations, including, without limitation, any rules, regulations, guidelines or
other requirements of the Regulatory Authorities, that may be in effect from time to time in any portion of the Territory. 
  
 “ASU Acknowledgement” shall mean [***] to the [***]. 
  
 “BLA” means a Biologics License Application, as defined in the FD&C Act and the regulations promulgated
thereunder from time to time, and any corresponding foreign application, registration or certification, approval or grant of which by the relevant Regulatory Authorities is necessary or reasonably useful to market a Licensed Product in any portion
of the Territory, but not including pricing and reimbursement approvals. 
  
 “BMS Consent” shall mean the consent of BMS to the sublicense of rights under Section 4.2(a) of the BMS Agreement. 
  

	***	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. 

 “[***]” means the Licensor Technology licensed to Licensor under the BMS
Agreement (as defined in the definition of “Licensor In-Licenses”). 
  
 “Breaching Party” has the meaning set forth in Section 13.3. 
  
 “Calendar Quarter” means any of the three-month periods beginning January 1, April 1, July 1 and October 1 in any year. 
  
 “Change of Control” has the meaning set forth in Article 16.

  
 “Claims” has the meaning set forth in Section
14.1.1. 
  
 “CMC Data” means any and all
information contained in, as well as data supporting, the Chemistry, Manufacturing and Control and facilities sections (or sections corresponding thereto) of an application for Regulatory Approval. 
  
 “Combination Product” has the meaning set forth in Section
6.4.4. 
  
 “Commencement of Clinical Trials”
means the date of first visit of the first patient for a subject indication to a physician or equivalent licensed health care practitioner for a clinical trial. 
  

“Commercial Launch” means the first commercial sale of a Licensed Product to a Third Party following Regulatory Approval in a relevant
country in the Territory. 
  
 “Commercially
Reasonable Efforts” means with respect to the development of the Licensed Product, the level of efforts and resources commonly used in the pharmaceutical industry with respect to the development of a product of similar commercial potential
at a similar stage in its development or product life, taking into consideration its safety and efficacy, its cost to develop, manufacture and bring to market, the prevalence of the indication, the competitiveness of alternative products, the patent
and other proprietary position of such product, the likelihood of regulatory approval and its profitability. 
  
 “Confidential Disclosure Agreement” has the meaning set forth in Section 8.1. 
  
 “Confidential Information” has the meaning set forth in
Section 8.1. 
  
 “Control” means possession by a
Party of the right, whether by ownership, license, or otherwise, to grant the right to access or use, or to grant a license or a sublicense to, such information or intellectual property right as provided for herein, to the fullest extent authorized
by such ownership, license or otherwise. 
  
 “Cost of
Goods” shall mean, with respect to Drug Conjugation Materials supplied to Licensee, the Fully Burdened Cost of providing such materials. 
  
 “Designated Antigen” means the [***], having a GenBank accession number of [***]. 
  

	***	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. 

  

 3. 

 “Development Pipeline Approval” means the internal approvals required by Licensee for a
drug candidate to enter Licensee’s product development pipeline, or an equivalent approval by an Affiliate or Sublicensee, which in any event shall occur [***]; provided that Development Pipeline Approval must occur [***]. 
  
 “Drug Conjugation Materials” means the [***], and [***] and
[***] thereof, as well as compounds that are useful in attaching such compounds to [***], in each case to the extent included in or covered by the Licensor Technology. Drug Conjugation Materials shall also include Improvements to Drug Conjugation
Materials, to the extent set forth in Section 3.3.1, and any additional [***] compounds that are included in New Technologies and that the Parties agree to include under this Agreement pursuant to Section 3.3.2.  
  
 “Drug Conjugation Technology” means chemical compositions
and methods that are useful to attach [***] compounds to Antibodies, including without limitation the composition and methods of making and using [***] compounds such as [***] and [***] and [***] thereof, as well as compositions and methods useful
for attaching [***] or [***] to [***]. 
  
 “Effective
Date” means the date set forth in the first line of this Agreement. 
  
 “Events of Force Majeure” has the meaning set forth in Article 15. 
  
 “Exclusive License” has the meaning set forth in Section 3.1. 
  
 “Exclusive License Renewal Fee” has the meaning set forth in Section 6.2. 
  
 “Existing Third Party Royalties” has the meaning set forth
in Section 6.4.1. 
  
 “Exploit” means to make,
have made, import, use, sell, offer for sale, or otherwise dispose of, a product or process, including, without limitation, to discover, research, develop, register, modify, enhance, improve, manufacture, store, formulate, export, import, optimize,
transport, distribute, promote and engage in marketing activities related thereto. 
  
 “Exploitation” means the making, having made, importing, use, sale, offering for sale, or other disposition of, a product or process, including, without limitation, all discovery, research,
development, registration, modification, enhancement, improvement, manufacturing, storage, formulation, exportation, importation, optimization, transportation, distribution, promotion and marketing activities related thereto. 
  
 “FD&C Act” means the United States Food, Drug &
Cosmetic Act, as amended. 
  
 “FDA” means
the United States Food and Drug Administration, and any successor agency thereto. 
  
 “Field” means [***]. 
  
 “First Commercial Sale” means, in each country of the Territory, the first commercial sale of a Licensed Product by Licensee, its Affiliates or Sublicensees to a Third Party following, if required by law, Regulatory
Approval and, when Regulatory Approval is not required by law, the first commercial sale in that country, in each case for use or consumption of such Licensed Product in such country by the general public. 
  

	***	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. 

  

 4. 

 “FTE” shall mean a full-time equivalent year, consisting of a total of [***] of work by
one or more employees of Licensor on or directly related to and in support of the Research Plan. 
  
 “FTE Fees” has the meaning set forth in Section 6.1.2. 
  
 “Fully Burdened Cost” shall mean, as applicable to Licensor’s costs, the sum of the following costs
incurred by Licensor to the extent directly allocable to the manufacture and supply of Drug Conjugate Materials or ADCs, as applicable: [***], including without limitation [***]. Fully Burdened Cost shall be calculated in a [***], but shall
not include any of the foregoing costs if and to the extent such costs are (1) [***]; or (2) [***]. 
  
 “GAAP” means United States generally accepted accounting principles applied on a consistent basis. 
  
 “Generic Product” means, on a country-by-country basis, an
ADC using or incorporating Licensor Technology that binds specifically to the Designated Antigen: (i) the manufacture, use or sale of which is [***]; and (ii) that is [***] in such country in the most recent [***] consecutive [***]. 
  
 “Good Laboratory Practices” means the then current standards
for laboratory activities for pharmaceuticals, as set forth in the FD&C Act and applicable regulations and guidances promulgated thereunder, including without limitation the Code of Federal Regulations, as amended from time to time. 

 
 “ICC” has the meaning set forth in Section 19.3.4.

  
 “Improvements” means all patentable or
non-patentable inventions, discoveries, modifications, variations, revisions or other know-how Controlled by either party after the Effective Date that (a) utilize, incorporate, derive from, relate to, are made using or are based on the Licensor
Technology existing as of the Effective Date and/or during the Term or (b) are otherwise useful in the practice or use of the Drug Conjugation Technology; provided that Improvements shall not include [***] or [***] covered by Section [***].
 
  
 “IND” means (a) an Investigational
New Drug Application filed with the FDA (or its equivalent in any country outside the United States) where a regulatory filing is required or obtained to conduct a clinical trial; or (b) with respect to any country where a regulatory filing is not
required or obtained to conduct a clinical trial, the Commencement of Clinical Trials with respect to the first use of a Licensed Product in humans. 
  
 “Indemnitee” has the meaning set forth in Section 14.2. 
  
 “Indemnitor” has the meaning set forth in Section 14.2. 
  

	***	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. 

 “Initiation” means, with respect to a human clinical trial, the dosing of the first
patient with a Licensed Product pursuant to the clinical protocol for the specified clinical trial. 
  
 “Joint Patents” has the meaning set forth in Section 9.2.3. 
  
 “Liabilities” has the meaning set forth in Section 14.1.1. 
  
 “Licensed Product” means any and all products containing an
ADC comprised of an Antibody that binds specifically to the Designated Antigen and that is attached to a [***] agent included in the Drug Conjugation Materials, the manufacture, use, sale, offer for sale or import of which (a) [***]; or (b) [***].

  
 “Licensee” has the meaning set forth in the
preamble to this Agreement. 
  
 “Licensee ADC
Know-How” means all technical information, processes, formulae, data, inventions, methods, chemical compounds, biological or physical materials, know-how and trade secrets Controlled by Licensee, in each case that are not in the public
domain and are developed by Licensee using Licensor Technology, and that are necessary for identifying, developing, making, using or selling [***].  
  
 “Licensee ADC Patents” means all patent applications and patents that are Controlled by Licensee claiming inventions made using Licensor
Technology, and that claim inventions that are necessary for identifying, developing, making, using or selling [***]. 
  
 “Licensee Know-How” means all technical information, processes, formulae, data, inventions, methods, chemical compounds, biological or
physical materials, know-how and trade secrets that are Controlled by Licensee, in each case that are not in the public domain, that relate to (a) [***] or (b) [***].  
  
 “Licensee Patents” means all patent applications and patents Controlled by Licensee that claim (a) [***],
or (b) [***]. 
  
 “Licensor” has the meaning set
forth in the preamble to this Agreement. 
  
 “Licensor
In-Licenses” means the following agreements between Licensor and the indicated Third Parties: (a) [***]. 
  
 “Licensor Know-How” means any and all technical, scientific and other information, processes, formulae, data, inventions, methods,
chemical compounds, biological or physical materials Controlled by Licensor, in each case that are not in the public domain, and that relate to or are useful to practice the Drug Conjugation Technology. Licensor Know-How shall include Improvements
Controlled by Licensor but shall exclude [***] unless [***]. 
  
 “Licensor Patents” means: 
  
 (a) any existing patents and patent applications listed in Schedule B to this Agreement, which shall be amended from time to time to reflect any other patents and patent applications; 
  

	***	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. 

 (b) any patents and patent applications covering Improvements and, to the extent [***],[***], in
each case that are Controlled by Licensor; 
  
 (c) any
future patents issued from any patent applications referred to above and any future patents issued from any continuation, continuation-in part (to the extent Controlled by Licensor), or divisional of any of the foregoing patent applications or any
patent applications from which the foregoing patents issued, in each case to the extent Controlled by Licensor; and 
  
 (d) any reissues, reexaminations, confirmations, renewals, registrations, substitutions, extensions, or counterparts of any of the foregoing, in
each case to the extent Controlled by Licensor. 
  
 “Licensor Technology” means Licensor Patents and the Licensor Know-How, including Improvements and New Technology to the extent agreed pursuant to Section 3.3.2. 
  
 “Major Market” means each of the [***]. 
  
 “NDA” means a New Drug Application, as defined in the FD&C Act, as amended, and the regulations
promulgated thereunder from time to time, and any corresponding foreign application, registration or certification, approval or grant of which by the relevant Regulatory Authorities is necessary or reasonably useful to market and sell commercially a
Licensed Product in the Territory, but not including pricing and reimbursement approvals. 
  
 “Net Sales” means, as to each Calendar Quarter, the gross amount billed by Licensee, its Affiliates or Sublicensees to Third Parties (and not to Affiliates) throughout the Territory for sales of the
Licensed Product, [***]: (a) [***], (b) [***], (c) [***], (d) [***], and (e) [***], to the extent stated on the invoice as a separate item. All of the [***] from the gross amount billed of Licensed Products shall be determined in accordance with
GAAP. In the event that Licensee, its Affiliates or Sublicensees make any adjustments to [***] after the associated Net Sales have been reported pursuant to this Agreement, the adjustments shall be reported and reconciled with respect to the period
in which the adjustment is made and will be reflected in an appropriate adjustment to the payment of any royalties that were or will become due for that period. In addition, Net Sales by Licensee hereunder are subject to the following: 

 
 (a) In the case of [***];  
  
 (b) In the case of any sale or other disposal of a Licensed Product
by Licensee to an Affiliate, [***]; 
  
 (c) In the event
of [***] as to the Licensed Product, Net Sales will be calculated with respect to sales of the Licensed Product by the [***]; 
  
 (d) If Licensee or its Affiliates or Sublicensees make a sale or other disposal of a Licensed Product to a customer in a [***] or as [***], the
Net Sales of that Licensed Product shall be deemed to be [***]; and 
  
 (e) [***]. 
  

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omitted portions. 

  

 7. 

 “[***]” means any and all [***] or other [***], excluding Improvements, that either: (a) are
first developed by Licensor after the Effective Date and that are [***] or (b) are in-licensed by Licensor after the Effective Date, and that in each case either (x) [***], or (y) [***]. [***] shall include without limitation [***] or [***] other
than those included in the Drug Conjugation Materials as of the Effective Date that Licensor Controls during the Term. 
  
 “Notice of Dispute” has the meaning set forth in Section 19.3.1. 
  
 “Parties” means Licensee (collectively) and Licensor, and “Party” means either of them.

  
 “Phase II Clinical Trial” means a controlled
dose clinical trial required by the FDA, pursuant to regulations, guideline or otherwise, from time to time, prospectively designed to evaluate the efficacy and safety of a candidate drug in the targeted patient population and to define the optimal
dosing regimen to permit initiation of Phase III Clinical Trials, including, without limitation, the trials referred to in 21 C.F.R. § 312.21(b), as amended. 
  
 “Phase III Clinical Trial” means a controlled, and usually multi-center, clinical trial, involving patients
with the disease or condition of interest to obtain sufficient efficacy and safety data to support Regulatory Approval of a candidate drug, including, without limitation, all tests and studies that are required by the FDA from time to time, pursuant
to regulations, guidelines or otherwise, for a candidate drug, including, without limitation, the trials referred to in 21 C.F.R. § 312.21(c), as amended. 
  

“Program Inventions” has the meaning set forth in Section 9.1.1. 
  
 “Publication” has the meaning set forth in Section 8.5. 
  
 “Regulatory Approval” means final regulatory approval
(including, where applicable, pricing approval in the event that actual sales do not take place before such approval) required to market a Licensed Product for a disease or condition in accordance with the Applicable Laws and regulations of a given
country. In the United States, its territories and possessions, Regulatory Approval means approval of an NDA, BLA or an equivalent by the FDA. 
  
 “Regulatory Authority” means any applicable supra-national, federal, national, regional, state, provincial or local regulatory agencies,
departments, bureaus, commissions, councils or other government entities, including, without limitation, the FDA, regulating or otherwise exercising authority with respect to the development and commercialization of the Licensed Product in any
portion of the Territory. 
  
 “Reports” has the
meaning set forth in Section 7.1.1. 
  
 “Research
Collaboration Agreement” has the meaning set forth in the preamble to this Agreement. 
  
 “Research Fees” has the meaning set forth in Section 6.1.2. 
  

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omitted portions. 

  

 8. 

 “Research Fees Report” has the meaning set forth in Section 6.1.2. 
  
 “Research Plan” means the plan for the Research Program to
be definitively established by [***]. [***]. A preliminary draft of the Research Plan is attached hereto as Schedule A.  
  
 “Research Program” means the research program conducted pursuant to Article 2. 
  
 “Research Program Term” means the term of the Research
Program set forth in Section 2.2. 
  
 “Royalty
Term” means, on a Licensed Product-by-Licensed Product and country-by-country basis, the term commencing on the date of the First Commercial Sale until the later to occur of: (a) the fifteenth anniversary of the date of First Commercial
Sale of the Licensed Product in such country; or (b) the date on which there are no Valid Patent Claims covering the Licensed Product in such country. 
  
 “Second Anniversary Date” has the meaning set forth in Section 6.1.2. 
  
 “Sublicensees” means any person or entity that is granted a
sublicense under the Licensor Technology by Licensee or its Affiliates in accordance with the terms of this Agreement. 
  
 “Supply Fees” has the meaning set forth in Section 6.1.2. 
  
 “Term” has the meaning set forth in Section 13.1.  
  
 “Territory” means all countries in the world. 
  
 “Third Party” means any person or entity other than
Licensee, Licensor or an Affiliate of either of them. 
  
 “Tier 1 Sales” has the meaning set forth in Section 6.3(a) hereof. 
  
 “Tier 2 Sales” has the meaning set forth in Section 6.3(b) hereof. 
  
 “Triggering Event” means, if after the Effective Date, (i) a Party becomes aware of (whether by written notice of infringement or
otherwise) and in good faith believes that, as a result of the incorporation of Licensor Technology and/or Improvements into the Licensed Products, there exists a substantial risk of infringement involving one or more patents of Third Party(ies) in
a country or country(ies), (ii) such Party shall promptly notify the other Party of such fact, and (iii) the Parties shall meet and confer and, either: 
  
 (a) the Parties will agree that there is a substantial risk of infringement of one or more patents of Third Party(ies) in such country(ies) as a result
of the incorporation of Licensor Technology and/or Improvements into the Licensed Products, whereupon the Triggering Event is the agreement by authorized representatives of each Party, and the steps outlined in Article 10 should be taken; or

  

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omitted portions. 

  

 9. 

 (b) the Parties do not agree within [***] of (ii) that there is a substantial risk of infringement of
one or more patents of Third Party(ies) in such country(ies) as a result of the incorporation of Licensor Technology and/or Improvements into the Licensed Products, in which case the President of Licensor and the head of Bayer HealthCare LLC or his
designee shall meet at a [***] for the purpose of resolving such dispute. If, within [***] after such meeting occurs, the Parties have not reached agreement, then a Triggering Event shall occur and the steps outlined in Article 10 shall be taken.

  
 “UNCITRAL” has the meaning set forth in
Section 19.3.4. 
  
 “Valid Patent Claim” means
with respect to a particular Licensed Product and a particular country, (a) in the case of an issued and unexpired patent, a claim that (i) has not been revoked or held unenforceable or invalid by a decision of a court (or other competent legal
authority having proper jurisdiction over the matter in the subject country) from which no appeal can be taken or has been taken within the time allowed for appeal; and (ii) has not been abandoned, disclaimed, denied or admitted to be invalid or
unenforceable through reissue or disclaimer or otherwise in such country; and (b) in the case of a pending patent application, a pending claim that was filed not more than [***] prior to the relevant date of inquiry, that has been prosecuted in good
faith and has not been cancelled, withdrawn, abandoned or finally disallowed without the possibility of appeal or refiling. 
  
 1.2 Certain Rules of Interpretation in this Agreement and the Schedules. 
  
 1.2.1 Unless otherwise specified, all references to monetary amounts are to United States of America currency (U.S.
Dollars); 
  
 1.2.2 The preamble to this Agreement and 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 this Agreement or of such Articles or Sections; 
  
 1.2.3 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; 
  
 1.2.4 The words “include” and “including” have the inclusive meaning frequently identified with
the phrases “without limitation” and “but not limited to”; and 
  
 1.2.5 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 obligated to make such payment or do such act. 
  

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omitted portions. 

  

 10. 

 ARTICLE 2 - RESEARCH PROGRAM 
  
 2.1 Objective and Conduct of the Research Program. Licensee intends to conduct a Research Program, with
Licensor’s collaboration, assistance and support, to evaluate ADCs for preclinical, clinical and commercial development under this Agreement. Licensor and Licensee shall each use Commercially Reasonable Efforts to perform, or cause to be
performed, the activities to be designated for such Party in the Research Plan. Licensee acknowledges that, as part of the licenses to the Licensor Technology granted hereunder, the Licensor Know-How transferred to Licensee under this Agreement
contains valuable information that is critical to Licensee’s development of ADCs hereunder. All research work performed by Licensee and Licensor hereunder shall be performed in a good scientific manner and in compliance with all Applicable
Laws. 
  
 2.2 Term of the Research Program. The term
of the Research Program shall initially be for a period of [***] after the Effective Date (the “Research Program Term”), unless terminated earlier in accordance with Article 13. Licensee shall have the one-time right to extend the
Research Program Term for an additional [***] by providing written notice to Licensor and paying a fee of [***] to the expiration of the initial Research Program Term. 
  
 2.3 Delivery of Drug Conjugation Materials. In support of the Research Program, Licensor will use Commercially
Reasonable Efforts to deliver Drug Conjugation Materials to Licensee, at the times and in the quantities set forth in the Research Plan, to enable Licensee to attach such materials to Licensee’s Antibodies to create ADCs. At Licensee’s
request, Licensor will also provide Licensee with the [***] provided to the Licensee to [***]. All such Drug Conjugation Materials and other information provided by Licensor to Licensee hereunder (and all such Drug Conjugation Materials provided
under Section 4 of the Research Collaboration Agreement) will be deemed Confidential Information of Licensor pursuant to Article 8. 
  
 2.4 Licensor Preparation of ADCs. As directed by the Research Plan, Licensor will prepare the quantities of ADCs as set forth in the
Research Program using Antibodies supplied by Licensee to Licensor and the Drug Conjugation Materials, and shall deliver the resulting ADCs to Licensee. 
  
 2.5 Payment. Licensee shall pay Licensor the amounts set forth in Section 6.1.2 for any research efforts or other assistance provided by
Licensor at the request of Licensee in accordance with this Article 2; provided, however, [***] Licensor if and to the extent such amounts are (1) [***]; or (2) [***]. 
  
 2.6 Ownership of Data. Licensee shall own all right, title and interest in and to the data, research
and results related specifically to ADCs arising out of activities conducted pursuant to the Research Program (“ADC Data”). Licensor shall disclose to Licensee, and shall cause its Affiliates to disclose to Licensee, any ADC Data
that are developed, conceived, or otherwise made, solely or jointly, by or on behalf of Licensor and/or its Affiliates in the course of, as a result of, or in connection with the Research Program, promptly after the same is developed, conceived or
otherwise made. ADC Data [***], and all [***] related thereto, the ownership and control of which, and rights with respect to which, are separately provided for in [***]. Licensor hereby assigns to Licensee, and shall cause its Affiliates to assign
to Licensee, any and all right, title, and interest Licensor and its Affiliates may have in, to and under ADC Data; provided that Licensor may retain copies of, and use (subject to the requirements of Section 3.6 hereof), all ADC Data it
obtained, jointly or solely, [***]. 
  

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omitted portions. 

  

 11. 

 ARTICLE 3 - EXCLUSIVE LICENSE 
  
 3.1 Exclusive License Grant. Subject to the terms and conditions of this Agreement, Licensor hereby grants to
Licensee a worldwide, exclusive (even as to Licensor), royalty-bearing license under the Licensor Technology, with the right to sublicense as permitted in Section 3.2, to discover, develop, make, have made, import and export, use, offer for sale and
sell Licensed Products within the Field (the “Exclusive License”). 
  
 3.2 Rights to Sublicense.  
  
 3.2.1 Licensee shall have the right, in its sole and absolute discretion and subject only to notice to Licensor (under Section 3.2.3) and the terms and conditions of the Licensor In-Licenses listed on
Schedule C, to grant sublicenses of the rights granted to Licensee pursuant to this Agreement from time to time to any Affiliate or any Third Party. Licensee shall not have the right to sublicense the Licensor Technology outside the scope of
the license granted in Section 3.1, including to develop further Drug Conjugation Technology on a stand-alone basis or to create ADCs that include, or are based, upon any Antibodies that bind specifically to an Antigen other than the Designated
Antigen. Notwithstanding the foregoing, nothing contained in this Section 3.2.1 shall be construed as a requirement that Licensee enter into a sublicense agreement in order to permit its local Affiliates to market and sell Licensed Product under and
pursuant to this Agreement. 
  
 3.2.2 Licensee shall, if
and to the extent that Licensee will (subject to Licensor’s consent) no longer be directly responsible to Licensor for royalties and milestone payments under Article 6 hereof, contractually obligate any Sublicensee to make its pro rata portion
of all payments due to Licensor pursuant to this Agreement by reason of achievement of any milestones set forth in Section 6.5 or owed on Net Sales of any Licensed Products by any such Sublicensee pursuant to Section 6.3. In addition, Licensee shall
contractually obligate any Sublicensee to comply with all terms of this Agreement applicable to Licensee (including all terms of this Agreement identified as applicable to Sublicensee). Licensee shall require any such Sublicensee to agree in writing
to keep books and records and permit Licensor to review the information concerning such books and records in accordance with the terms of this Agreement. 
  
 3.2.3 Licensee shall notify Licensor of each sublicense granted to Affiliates or Third Parties and shall provide Licensor with the name and address
of each Sublicensee and a description of the rights granted and the territory covered by each Sublicensee. 
  
 3.3 Improvements and New Technologies. 
  
 3.3.1 Improvements. In the event that, during the Research Program Term, either Party conceives, develops or reduces to practice an
Improvement, such Party shall promptly notify the other Party of the discovery of such Improvement. Licensor shall own all Improvements and, to the extent that any Improvements shall have been conceived, developed or reduced to practice by Licensee,
Licensee hereby assigns all of its right, title and interest therein 
  

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 12. 

 to Licensor. Licensor’s interest in any such Improvements that it Controls shall be included in the Licensor
Technology and made available to Licensee via the Exclusive License provided in Section 3.1. 
  
 3.3.2 [***].  
  
 (a) Licensee shall have the right to practice any New Technologies pursuant to the Exclusive License granted under Article 3 as follows: Licensor
shall [***] of any [***] which it develops or to which it obtains rights (with the right to grant sublicenses thereunder) during the Term by providing to Licensee a [***] of the [***], including all [***] under which Licensee would be able to access
such [***]. Licensor shall provide to Licensee a copy of any relevant license agreements, patents and patent applications governing or pertaining to the [***] to enable Licensee to decide whether it desires to obtain a sublicense under such [***].

  
 (b) If Licensee is interested in practicing any [***]
which relate to the development of compounds incorporating ADCs based on Antibodies that bind specifically to the Designated Antigen in the Field, the Parties shall discuss in good faith modifications to this Agreement to reflect the terms governing
Licensee’s access to any [***] pursuant to this Agreement, which shall include without limitation Licensee’s agreement to [***]; provided that the [***] shall be deemed to include [***] and Licensor Patents (as applicable) relating
to or covering such [***] only after the Parties execute an amendment to this Agreement specifying such modified terms. 
  
 3.3.3 [***]. [***] shall be amended from time to time to [***] Controlled by Licensor [***] in accordance with Section 3.3.2.

  
 3.4 Compliance with the Licensor In-Licenses.

  
 3.4.1 Licensee, its Affiliates and Sublicensees shall
comply with all obligations, covenants and conditions of the Licensor In-Licenses listed in Schedule C, and any amendments thereto following written disclosure thereof to Licensee (and, if required, consent of Licensee in conformity with
Section 3.4.2), that apply under each of the Licensor In-Licenses. The Parties agree that in the event of a breach by Licensee of the terms of the BMS Agreement, BMS shall be deemed a third party beneficiary to this Agreement to the extent Licensor
Technology includes technology sublicensed under the BMS Agreement, and BMS shall be entitled to enforce its rights directly against Licensee and its Affiliates and Sublicensees. 
  
 3.4.2 Licensor will not [***] any [***] to a [***] that (a) [***], (b) [***] or (c) [***]. In addition, Licensor will
not enter into [***] to the [***] that [***] on Licensee with respect to Licensed Products [***]. 
  
 3.5 License to Licensor. Subject to the provisions and terms of this Agreement, Licensee hereby grants to Licensor a non-exclusive,
royalty-free, sublicenseable license under the Licensee Patents and Licensee Know-How in the Territory, solely to the extent necessary to enable Licensor to perform or have performed its responsibilities under this Agreement. 
  

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 13. 

 3.6 Strategic Commitment. Licensor agrees that during the Term and, in the event of any
termination of this Agreement by Licensee under [***] hereof, for a [***] after the effective date of any such termination, it [***] any of its Affiliates to, [***], in any country in the Territory, any [***]. The Parties acknowledge that all
restrictions contained in this Section are reasonable, valid and necessary for the adequate protection of the business associated with the Licensed Product. 
  
 ARTICLE 4 - TECHNOLOGY DISCLOSURE 
  
 4.1 Disclosure of Drug Conjugation Technology. During the Term, Licensor shall (a) disclose to Licensee such Licensor Know-How as is
reasonably useful to enable Licensee to use the Drug Conjugation Materials and Drug Conjugation Technology as provided in the Research Plan or to practice the Exclusive License on the terms, and subject to the conditions, of this Agreement and (b)
upon Licensee’s reasonable request and with adequate notice to Licensor, make available to Licensee at Licensor’s facilities, Licensor’s personnel to provide a reasonable amount of technical assistance and training to Licensee’s
personnel. Licensee shall pay to Licensor for such assistance an amount equal to the FTE Fees in accordance with Section 6.1.2 for Licensor employees providing such assistance. 
  
 ARTICLE 5 - DEVELOPMENT AND COMMERCIALIZATION; MANUFACTURING 
  
 5.1 Diligence Obligations of Licensee. Subject to Licensee’s termination rights under Sections 13.2.1 and
13.2.2, Licensee shall use Commercially Reasonable Efforts to develop, commercialize and market Licensed Products. Without limiting the foregoing, Licensee shall exercise Commercially Reasonable Efforts to (a) [***], (b)
[***], (c) [***] and (d) [***].  
  
 5.2 Diligence Obligations of Licensor. Licensor shall use Commercially Reasonable Efforts to perform all of the tasks and duties assigned to it under this Agreement and the Research Plan and shall cooperate and support
Licensee in Licensee’s performance of the tasks and duties assigned to it under this Agreement. Without limiting the generality of the foregoing, Licensor shall use Commercially Reasonable Efforts to (i) [***] to Licensee at the [***] by the
Parties and (ii) [***] using Antibodies supplied by Licensee, [***]. Licensor shall comply with all Applicable Laws (including good laboratory, clinical and manufacturing practices) in performance of its obligations hereunder. 
  
 5.3 Funding and Progress Reports. Except as expressly set forth
in this Agreement, as between Licensor and Licensee, [***]. Licensee shall keep Licensor reasonably informed in a timely manner as to the progress of the development of Licensed Products. Beginning on [***], and annually thereafter within [***]
following the [***], Licensee shall provide Licensor with a written report summarizing Licensee’s material activities related to research and development of Licensed Products and status of clinical trials and applications for Regulatory
Approval necessary for marketing Licensed Products. Such reports shall be deemed Licensee’s Confidential Information for the purposes of Article 8. 
  
 5.4 Manufacturing. Except as otherwise set forth in this Agreement, Licensee shall be responsible for all manufacturing and supply of the
Licensed Products. Notwithstanding the foregoing, Licensor shall [***]. In the event Licensor [***], the Parties shall [***], including [***] and other such terms as may be appropriate and customary in [***]. 
  

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 14. 

 ARTICLE 6 - FEES, ROYALTIES, AND PAYMENTS. 
  
 6.1 Research Fees. Licensee shall pay to Licensor the following amounts in consideration of the Research
Program: 
  
 6.1.1 Licensor acknowledges that Licensee has
paid to Licensor the sum of [***] by wire transfer of immediately available funds pursuant to [***] by and between Licensee and Licensor, for the purposes and on the terms and conditions described therein (the “ADC Access Fee”).

  
 6.1.2 Licensee shall pay Licensor at an annual rate of
[***] per FTE for research work as requested by Licensee and actually performed by Licensor pursuant to the Research Plan or as provided in this Agreement in each of the [***] of the Term (the “FTE Fees”). Commencing upon the [***]
of the Effective Date (the “[***]”) and upon every [***] thereafter, the rate applicable to calculating the FTE Fees will [***] by [***] per FTE. Licensee shall also pay Licensor for all Drug Conjugation Materials supplied by Licensor to
Licensee hereunder at the rate of [***] of Licensor’s Cost of Goods therefor (the “Supply Fees”); provided, however, that such Supply Fees for [***] shall not exceed [***] per milligram. The FTE Fees and the
Supply Fees are collectively referred to herein as the “Research Fees”. Within [***] after the end of each [***], Licensor shall submit a report to Licensee in form and substance satisfactory to Licensee and accompanied by such
documentation and verification as Licensee may reasonably request supporting the calculation of the Research Fees due for such [***] (a “Research Fees Report”). Licensee shall pay all Research Fees to Licensor within [***] of
receipt of each Research Fees Report. 
  
 6.2 License
Maintenance Fees. Until Licensee [***] in respect of the Licensed Product, Licensee shall be [***] to Licensor in the sum of [***] by wire transfer of immediately available funds (the “Exclusive License Renewal Fee”) on
[***] following the [***]; provided, however, that Licensee shall not be [***]. 
  
 6.3 Royalties Payable by Licensee. In consideration for the Exclusive License granted to Licensee herein, during the Royalty Term, and subject to Sections 6.4.2 through 6.4.4, Licensee shall pay to
Licensor incremental royalties on Net Sales of Licensed Products. Such incremental royalties shall be paid at the following rates, determined on a Licensed Product-by-Licensed Product basis as set forth below: 
  
 (a) For the first [***] of aggregate [***] of the [***] in any [***]
(“Tier 1 Sales”): 
  
 (i) [***] of
aggregate [***] of [***] in any country in the Territory during any period in which there is a [***] of the Licensed Product; and 
  
 (ii) [***] of aggregate [***] in any country in the Territory during any period in which there is [***] of the Licensed Product; 
  

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 15. 

 (b) For aggregate [***] of the [***] in any [***] in excess of [***] (“Tier 2
Sales”): 
  
 (i) [***] of aggregate [***] in any
country in the Territory during any period in which there is a [***] of the Licensed Product; and 
  
 (ii) [***] of aggregate [***] in any country in the Territory during any period in which there is [***] of the Licensed Product. 
  
 (c) The ratio of (1) aggregate [***] in the Territory with a [***] and
(2) aggregate [***] in the Territory with [***], will be applied to Tier 1 and Tier 2 Sales as shown in Schedule D. 
  
 (d) If and for so long as there is a [***], then [***] with respect to [***] of Licensed Products during the time period that such [***].

  
 (e) In establishing the royalty structure of this
Section 6.3, the Parties recognize, and Licensee acknowledges, the substantial value of the various actions and investments undertaken by Licensor prior to the Effective Date. Such value is significant and in addition to the value of Licensor’s
grant to Licensee of the Exclusive License pursuant to Section 3.1, as it enables the rapid and effective development and commercialization of the Licensed Products in the Territory. Therefore, the Parties agree that the royalty payments calculated
as a percentage of [***] (plus the license fee, milestone payments and other payment provided for elsewhere herein) provide fair compensation to Licensor for these additional benefits. 
  
 6.4 Third Party Royalties.  
  
 6.4.1 Licensee shall be solely responsible for paying all royalties owed to Third Parties by either Licensee or
Licensor on account of sales of Licensed Products, including royalties owed due to use of the Licensor Technology; [***]. Licensor represents and warrants [***]; provided, however, that the [***]. 
  
 6.4.2 If the sum of (a) the royalties payable by Licensee, its
Affiliates or Sublicensees to Licensor under [***] and (b) all other Third Party royalties payable by Licensee in order to permit Licensee, its Affiliates or Sublicensees to exploit the Drug Conjugation Technology in the manner licensed under this
Agreement [***] of [***] of a [***] in any [***], then (subject to the proviso set forth below in this Section 6.4.2) the royalties otherwise due and payable by Licensee under Section 6.3 shall be [***] of any royalties due by Licensee with respect
to [***] of a [***] in such year that [***] of such Net Sales; provided, however, that in no event shall the royalty payments due and payable to Licensor pursuant to Section 6.3 with respect to a Licensed Product in any calendar year
be [***] of the royalty payments that would otherwise be owed to Licensor [***]. A sample royalty reduction calculation is attached hereto as Schedule D. 
  

6.4.3 If by reason of an amendment negotiated by Licensor and [***] the Third Party Royalties payable to [***] by Licensee, its Affiliates or
Sublicensees are [***] of a [***] in any [***], then the royalties otherwise due and payable by Licensee under Section 6.3 [***] of the amount by which the royalties payable to [***]. 
  

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 16. 

 6.4.4 In the event that Licensee desires to formulate a Licensed Product in combination with one
or more additional therapeutically active ingredients (each, a “Combination Product”), the Parties shall negotiate in good faith one or more appropriate amendments to this Agreement to equitably adjust the relevant royalty rates
applicable to such Combination Products to [***]. If the Parties are able to agree to such adjustment, they shall enter into an appropriate amendment reflecting the adjustments to the applicable royalty rate(s). 
  
 6.5 Milestone Payments. As additional consideration for the
licenses, rights and privileges granted to it hereunder, Licensee shall pay to Licensor the following [***] of the first occurrence of each event set forth below with respect to the first [***], whether such events are achieved by Licensee, its
Affiliates or Sublicensees, as follows: 
  
 (a) Upon
[***]; 
  
 (b) Upon [***]; 
  
 (c) Upon [***]; 
  
 (d) Upon [***]; 
  
 (e) Upon [***]; 
  
 (f) Upon [***]; 
  
 (g) At the end of the [***] in which [***] of [***]; and 

 
 (h) At the end of the [***] in which [***] of [***]. 

 
 If any milestone described in (a) through (e) above is achieved before a
preceding milestone has been achieved and the associated milestone payment has become due, then the milestone payment associated with such preceding milestone shall be deemed to become due and payable following achievement of the next milestone.

  
 6.6 Payment Terms. Royalties shown to have
accrued in each Report provided for under Article 7 of this Agreement shall be due on the date such Report is due pursuant to Section 7.1.3. 
  
 6.7 Payment Method. All payments by Licensee to Licensor under this Agreement shall be paid in U.S. dollars, and all such payments shall be
made by bank wire transfer in immediately available funds to the bank account designated by Licensor in writing. 
  
 6.8 Exchange Control. If at any time legal restrictions prevent the prompt remittance of part or all royalties with respect to any country
in the Territory where Licensed Product is sold, payment shall be made through such lawful means or method as the Parties shall reasonably determine. 
  

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 17. 

 6.9 Withholding Taxes. Except as otherwise provided below, all amounts due from Licensee to
Licensor under this Agreement are gross amounts. Licensee shall be entitled to deduct the amount of any withholding taxes payable or required to be withheld by Licensee, its Affiliates or Sublicensees, to the extent Licensee, its Affiliates or
Sublicensees pay such withheld amounts to the appropriate governmental authority on behalf of Licensor. Licensee shall use Commercially Reasonable Efforts to minimize any such taxes, levies or charges required to be withheld on behalf of Licensor by
Licensee, its Affiliates or Sublicensees. Licensee promptly shall deliver to Licensor 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, and shall cooperate with Licensor in seeking any related tax credits that may be available to Licensor with respect thereto. 
  
 ARTICLE 7 - ROYALTY REPORTS AND ACCOUNTING 
  
 7.1 Reports, Exchange Rates. 
  
 7.1.1 During the Royalty Term, Licensee shall furnish to Licensor, with respect to each [***], a written report showing, on a consolidated basis in
reasonably specific detail and on a country-by-country basis, (a) the gross sales of Licensed Products sold by Licensee, its Affiliates and its Sublicensees in the Territory during the [***] 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 such Net Sales of Licensed Products; (c) the withholding taxes, if any, required by law to be deducted in respect of such royalties; (d) the dates of
the First Commercial Sale of each Licensed Product in each country in the Territory, if it has occurred during the corresponding [***]; 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 Licensee shall include in each permitted sublicense granted by it pursuant to this Agreement a provision requiring its Affiliates and Sublicensees to make Reports to Licensee after the close of each [***]
and to keep and maintain records of sales made pursuant to such sublicense as if such sales were by Licensee for the purpose of Section 7.1.1. 
  
 7.1.3 Reports shall be due on the [***] following the end of the [***] to which such Report relates. Licensee 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 of Licensed 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 Licensed Products invoiced in a currency other than U.S. dollars, the gross sales, Net Sales and royalties payable shall be converted into U.S. Dollars using the [***] for each of the [***] included in the
[***] in which such Net Sales were made. All such converted Net Sales and cost items shall be consolidated with U.S. Net Sales for each [***] and the applicable payments determined therefrom. 
  

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 18. 

 7.2 Audits. 
  
 7.2.1 Upon the written request of Licensor and with at least [***] prior written notice, but not more than [***] in
any [***] (and not more than once with respect to any [***]), Licensee shall permit an independent certified public accounting firm of internationally recognized standing, selected by Licensor and reasonably acceptable to Licensee, at [***], to have
access during normal business hours to such of the records of Licensee as required to be maintained under this Agreement to verify the accuracy of the Reports due hereunder. Such accountants may audit records relating to Reports made for any year
ending not more than [***] prior to the date of such request. The accounting firm shall disclose to Licensor only whether the Reports were correct or not, and the specific details concerning any discrepancies. No other information obtained by such
accountants shall be shared with Licensor. 
  
 7.2.2 If
such accounting firm concludes that any royalties were owed but not paid to Licensor, Licensee shall pay the additional royalties within [***] of the date Licensor delivers to Licensee such accounting firm’s written report so concluding. The
fees charged by such accounting firm shall be [***]; provided, however, if the audit discloses that the royalties payable by Licensee for the audited period [***] of the royalties actually paid for such period, then [***] charged by
such accounting firm. If such accounting firm concludes that the royalties paid were more than what was owed during such period, Licensor shall refund the overpayments within [***] of the date Licensor receives such accounting firm’s written
report so concluding. 
  
 7.2.3 The accounting firm’s
determinations under Section 7.2.1 and 7.2.2 shall be subject to the dispute resolution procedures established by Article 19 hereof. 
  
 7.3 Confidential Financial Information. Licensor shall treat all financial information subject to review under this Article 7 or under any
sublicense agreement as Confidential Information of Licensee as set forth in Article 8, and shall cause its accounting firm to retain all such financial information in confidence under terms substantially similar to those set forth in Article 8.

  
 ARTICLE 8 – CONFIDENTIALITY 
  
 8.1 Non-Disclosure Obligations. Except as otherwise provided
in this Article 8, during the Term and for a period of [***] thereafter, each Party shall maintain in confidence, and use only for purposes as expressly authorized and contemplated by this Agreement, all: (a) ADC Data, and (b) confidential or
proprietary information, data, documents or other materials supplied by the other Party under this Agreement and marked or otherwise identified as “Confidential,” including without limitation any such information previously provided by
either Party or Licensee’s Affiliate, [***], under and pursuant to Article 8 of the Research Collaboration Agreement or pursuant to the Confidential Disclosure Agreement between Bayer Corporation and Licensor dated [***] (the
“Confidential Disclosure Agreement”). Confidential Information of Licensor shall include Licensor Know-How, Drug Conjugation Technology that is Controlled by Licensor and disclosed to Licensee, Licensor’s interest in any
Improvements and [***]. Confidential Information of Licensee shall include ADC Data and Licensee ADC Know-How disclosed to Licensor that is Controlled by Licensee. Confidential Information of a Party may also include information relating to such
Party’s research programs, development, marketing and other business practices and finances. For purposes of this Agreement, information and data described above shall be hereinafter referred to as “Confidential Information.”
Each Party shall 
  

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 19. 

 ensure that its and its Affiliates’ employees, agents, consultants and clinical investigators only make use of the
other Party’s 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. 
  
 8.2 Permitted Disclosures. Notwithstanding the foregoing, but
subject to the last sentence of this Section 8.2, the provisions of Section 8.1 shall not apply to information, documents or materials that the receiving Party can conclusively establish: 
  
 (a) have become published or otherwise entered the public domain
other than by breach of this Agreement by the receiving Party or its Affiliates; 
  
 (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 receiving Party, its Affiliates or Sublicensees, provided such Confidential Information was not obtained directly or indirectly
from the other Party under this Agreement; 
  
 (e) are
required to be disclosed by the receiving 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,
Licensed Product(s), provided that the receiving 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; 
  
 (f) to the extent reasonably needed in a patent application claiming
Program Inventions made hereunder to be filed with the United States Patent and Trademark Office and/or any similar foreign agency, provided that the Party filing the patent 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; and 
  
 (g) to a Sublicensee as permitted hereunder, provided that such Sublicensee is then subject to obligations of confidentiality and limitations on use of such Confidential Information substantially similar to
those contained herein. 
  
 Notwithstanding the foregoing, as to disclosures
permitted under subsections (e)-(g), if the information, documents or materials covered by such subsection is otherwise protected by obligations of confidentiality, then the confidentiality obligations of Section 8.1 shall still apply. 

 
 8.3 Terms of the Agreement. Licensee and Licensor 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 or to comply with rules of a securities exchange, in which case
the disclosing Party shall provide notice to the other Party and take reasonable and lawful actions to avoid or minimize the degree of such disclosures. 
  

 20. 

 8.4 Press Releases and Other Disclosures to Third Parties. Neither Licensor nor Licensee
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 or entity (other than either Parties’ respective Affiliates) concerning the existence of this
Agreement, its terms and the transactions contemplated hereby, except for (i) an initial press release mutually agreed upon by the Parties, (ii) disclosures made in compliance with Sections 8.2 and 8.3 and (iii) attorneys, consultants, and
accountants retained to represent the Parties. 
  
 8.5
Publications Regarding Results of the Research Program. Neither Party may publish, present or announce results of the Research Program either orally or in writing, or use the other Party’s name or trademarks in any publication,
research report or study (each, a “Publication”) without complying with the provisions of this Section 8.5. Any Party wishing to make a Publication shall send notice to the other Party. No Publication shall contain any Confidential
Information of the other Party without the consent and approval of the other Party, which may be granted or withheld in the sole discretion of a Party. The other Party shall have [***] from receipt of a proposed Publication to provide comments
and/or proposed changes to the publishing Party. The publishing Party shall take into account the comments and/or proposed changes made by the other Party on any Publication and shall agree to designate employees or others acting on behalf of the
other Party as co-authors on any Publication describing results to which such persons have contributed in accordance with standards applicable to authorship of scientific publications. If the other Party reasonably determines that the Publication
would entail 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 [***] any such Confidential Information of the other Party (if the other Party has requested deletion thereof from the proposed Publication), and/or the drafting and filing of a patent application covering such invention,
provided such additional period shall not exceed [***] from the date the publishing Party first provided the proposed Publication to the other Party. In the event of any disagreement under this Section 8.5, any dispute shall be resolved in the
manner specified in Section 19.3. 
  
 8.6 Use of
Name. Neither Party shall mention or otherwise use the name, insignia, symbol, trademark, trade name or logotype of the other Party (or any abbreviation or adaptation thereof) in any publication, press release, promotional material or other
form of publicity without the prior written approval of such other Party in each instance. The restrictions imposed by this Section shall not prohibit either Party from making any disclosure identifying the other Party that is required by Applicable
Law. 
  
 8.7 Notification. Each Party shall notify
the other Party immediately, and cooperate with the other Party as the other Party may reasonably request, upon each Party’s discovery of any loss or compromise of the other Party’s Confidential Information. 
  
 8.8 Remedies. Each Party agrees that the unauthorized use or
disclosure of any material Confidential Information by the other Party in violation of this Agreement will cause severe and irreparable damage to each of the Parties, for which legal damages would not be a sufficient remedy. In the event of any
violation of this Article 8, each Party agrees that the other Party shall be authorized and entitled to obtain from any court of competent jurisdiction injunctive relief, whether preliminary or permanent, as well as any other relief permitted by
Applicable Law. 
  

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 21. 

 ARTICLE 9 - INVENTIONS AND PATENTS 
  
 9.1 Ownership of Inventions. 
  
 9.1.1 Disclosure of Inventions. Each Party shall promptly disclose to the other Party the conception and/or
discovery of any inventions directly arising out of activities conducted under this Agreement (“Program Inventions”). 
  
 9.1.2 Ownership of Program Inventions. All right, title and interest in all Program Inventions that are discovered or conceived pursuant to
Section 9.1.1 shall be owned as follows: 
  
 (a) [***]
shall own all Program Inventions that are invented solely or jointly by employees, agents or consultants of [***] and/or [***] and primarily relate to the [***]. To the extent that any such Program Inventions [***] shall have been invented by
[***],[***] hereby assigns all of its right, title and interest therein to [***]; 
  
 (b) [***] shall own all Program Inventions that are invented solely or jointly by employees, agents or consultants of [***] and/or [***] and primarily relate to the [***]. To the extent that any Program
Inventions relating primarily to [***] shall have been invented by [***],[***] hereby assigns all of its right, title and interest therein to [***]; and 
  

(c) [***] shall solely own all Program Inventions that (i) are invented solely by employees, agents or consultants of [***], (ii) are not
covered by Sections 9.1.2(a) or (b) and (iii) relate primarily to [***], including without limitation [***]. 
  
 (d) Except as set forth in Sections 9.1.2(a), (b) and (c), ownership of any Program Invention to the extent it falls outside of Sections 9.1.2
(a), (b) and (c) shall be determined according to applicable U.S. laws of inventorship. 
  
 9.2 Patent Prosecution and Maintenance. 
  
 9.2.1 Subject to Section 9.2.2, Licensor shall be responsible for and shall control the preparation, filing, prosecution, grant and maintenance of all Licensor Patents in all countries in the Territory as
Licensor may elect. Licensor shall, at its sole expense, prepare, file, prosecute and maintain such Licensor Patents in good faith consistent with its customary patent policy and its reasonable business judgment, and shall consider in good faith the
interests of Licensee in so doing. Upon request, Licensor shall consult with and keep Licensee reasonably informed as to the status and progress of filing, prosecution, grant and maintenance of Licensor Patents. 
  
 9.2.2 Each Party shall be responsible for and shall control the
preparation, filing, prosecution, grant and maintenance, of any patents and patent applications claiming Program Inventions owned [***] by it in accordance with [***] and shall, [***] in good faith consistent with [***]. If either Party decides not
to file or continue prosecuting such Party’s 
  

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 interest in or not to maintain any patent or a patent application claiming a Program Invention [***] owned by such Party
hereunder, then such Party shall promptly so notify the other Party (which notice shall be at least [***] before any relevant deadline for such patent application or patent). Thereafter, at the other Party’s discretion, the relevant patent
application or patent [***]. 
  
 9.2.3 Patents and patent
applications claiming Program Inventions owned [***] pursuant to [***] (“[***]”) shall be controlled, prepared, filed, prosecuted and maintained by [***]. 
  
 9.2.4 The Parties shall at all times fully cooperate in order to reasonably implement the foregoing provisions, such
cooperation may include the execution of necessary legal documents and the provision of the assistance of its relevant personnel. 
  
 9.3 Enforcement of Licensor Patents. 
  
 9.3.1 Licensor shall have the first right, at its sole expense, but not the obligation, to determine the appropriate course of action to enforce
the Licensor Patents or otherwise abate the infringement thereof, to take (or refrain from taking) appropriate action to enforce the Licensor 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 Licensor Patents. Licensor shall in good faith consider the interests of Licensee in conducting the foregoing activities. All monies recovered upon the final judgment or
settlement of any such suit to enforce any Licensor Patents with respect to the manufacture, use or sale by Third Parties of products competitive with Licensed Products or technologies competitive with Drug Conjugation Technology shall be [***]. In
the event Third Parties have rights in the Licensor Patents under other license agreements between Licensor and such Third Parties, such recoveries shall be [***]. Licensee shall fully cooperate with Licensor in any such action at Licensor’s
expense, to enforce the Licensor Patents, including being joined as a party to such action if necessary. 
  
 9.3.2 If Licensor fails to take any action to enforce the Licensor Patents or control any litigation with respect to the Licensor Patents with
respect to the manufacture, use or sale by Third Parties of products competitive with Licensed Products or technologies competitive with Drug Conjugation Technology within a period of [***] after the Parties receive reasonable notice of the
infringement of the Licensor Patents, then Licensee shall have the right to bring and control any such action by counsel of its own choice, [***]. Licensee shall consider in good faith the interest of Licensor in the conduct of the forgoing
activities. In such case, all monies recovered upon the final judgment or settlement of any such suit to enforce any Licensor Patents shall be [***]. In the event Third Parties have rights in the Licensor Patents under other license agreements
between Licensor and such Third Parties, such recoveries shall be [***]. In such a case, Licensor shall cooperate fully with Licensee, at [***], in its efforts to enforce the Licensor Patents, including being joined as a party to such action if
necessary. In no event may Licensee assert an argument or settle a suit in a manner which would render a claim in the Licensor Patents invalid or unenforceable without Licensor’s prior written consent. 
  
 9.3.3 Each Party shall have the right, [***], to determine the
appropriate course of action to enforce patents or patent applications claiming Program Inventions owned [***] in 
  

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 accordance with [***], or otherwise to abate the infringement thereof, to take (or refrain from taking) appropriate
action to enforce such patents or patent applications, 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 such patents or patent
applications. The party taking action shall consider in good faith the interests of the other Party in the conduct of such activities. All monies recovered upon the final judgment or settlement of any such suit to enforce any patents or patent
applications claiming Program Inventions owned [***] hereunder shall be retained [***] (and, in the event of any joint ownership of any Program Invention under Section 9.1.2(d) hereof, the net recoveries shall be [***]). Each Party shall fully
cooperate with the other Party, at the owning Party’s expense, in any action to enforce the patents or patent applications claiming Program Inventions owned solely by one Party hereunder. 
  
 9.3.4 In the event either Party becomes aware of infringement by a
Third Party of a Joint Patent(s), it shall promptly notify the other Party and the Parties shall determine a mutually agreeable course of action 
  
 9.3.5 In the event of any infringement by a Third Party of both a Licensor Patent(s) and a Joint Patent(s), which infringement is likely to affect
the exercise by Licensee of its rights with respect to Licensed Products, the Parties shall meet to discuss how to proceed with respect to such infringement. In the event that the Parties determine that one or the other of the Parties should bring
an infringement action against the Third Party, the Party not enforcing such patents shall provide reasonable assistance to the other Party, including, without limitation, providing access to relevant documents and other evidence, making its
employees available at reasonable business hours, and joining the action to the extent necessary to allow the enforcing party to maintain the action. The party taking action shall consider in good faith the interests of the other Party in the
conduct of such activities. The Party that files an infringement suit shall have the right to settle such suit in its discretion; provided, however, that such Party may not enter into any settlement that would result in injunctive or other relief
being imposed against the other Party or would have a material adverse effect on the other Party’s business without the prior written consent of such other Party. 
  
 9.4 Prior Patent Rights. Notwithstanding anything to the contrary in this Agreement, with respect to any
Licensor Patents that are subject to the Licensor In-Licenses, the rights and obligations of the Parties under Sections 9.2 and 9.3 shall be subject to Licensor’s rights to participate in and control prosecution, maintenance and enforcement of
such Licensor Patents, and to receive a share of damages recovered in such action, in accordance with the terms and conditions of the applicable Licensor In-License. 
  
 ARTICLE 10 - INFRINGEMENT OF THIRD PARTY RIGHTS 
  
 10.1 Third Party Licenses. Upon the occurrence of a Triggering Event, Licensor shall have the first right (but
not the obligation) to negotiate and obtain a license from the relevant Third Party(ies), as necessary for Licensee and its Affiliates and Sublicensees to Exploit the Licensed Product (as required in connection with the incorporation of Licensor
Technology therein) in the particular country or countries, as the case may be. In the event that Licensor elects not to obtain, or is unsuccessful in obtaining a license from such Third Party, then Licensee shall have the right (but not the
obligation) to negotiate and obtain a license from such 
  

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 Third Party as necessary for Licensee and its Affiliates and Sublicensees to Exploit the Licensed Product (as required in
connection with the incorporation of Licensor Technology therein) in such country or countries, as the case may be; provided that Licensee shall not have the right to commence or proceed with any such negotiations if Licensor reasonably
determines, [***]. Any such determination by Licensor shall be made not more than [***] following the Triggering Event or shall be deemed automatically made by Licensor in [***]. The expense of any lump sum payments pursuant to a Third Party license
negotiated hereunder shall be [***]; provided, however, that if any of [***], then such lump sum expenses incurred by Licensor in connection with such Third Party license shall be [***]. Licensor shall [***] of any associated royalty payments under
such Third Party license through [***] pursuant to [***]. If Licensor has determined, [***], as provided above, that a [***] after the earliest Triggering Event concerning any Third Party’s patents, then Licensee [***]; provided,
however, that Licensee may [***]. 
  
 ARTICLE 11 - REGULATORY
ASSISTANCE 
  
 Should Licensee desire to file an IND or
an application for Regulatory Approval, or equivalents of the foregoing, for a Licensed Product, Licensor will provide at Licensee’s request, technical information reasonably required for Licensee, including information relating to the [***],
as well as documents necessary to compile the CMC Data section of an application for Regulatory Approval, or to provide other toxicity and safety data for such filings, and any other relevant information as the Parties may mutually agree (to the
extent not provided to Licensee pursuant to Section 5.2). Licensee shall reimburse Licensor for any reasonable out-of-pocket costs incurred by Licensor in providing any such information plus an amount equal to Licensor’s then current FTE Fee
for Licensor’s personnel engaged in such activities, as set forth in Section 6.1.2; provided, however, that Licensee shall not be required to reimburse Licensor under this Section if and to the extent such costs are (1) [***]; or
(2) [***]. If Licensor has a drug master file with the FDA or equivalent that contains information useful to support an IND or application for Regulatory Approval, Licensor [***] Licensee a right of reference (with right to grant further rights of
reference) to such drug master file to the extent necessary for, and solely for the purposes of, preparing, filing or maintaining INDs, NDAs and other regulatory filings relating to the Licensed Product in the Territory. Licensor shall [***] with
Licensee relevant (and if deemed necessary in Licensor’s option, redacted) [***]. 
  
 ARTICLE 12 – REPRESENTATIONS AND WARRANTIES 
  
 12.1 Representations and Warranties. 
  
 12.1.1 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 principals. 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. 
  
 12.1.2 The execution, delivery and performance of the Agreement by each Party (i) does not conflict with or violate any requirement of Applicable
Law or regulation or any 
  

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 provision of the articles of incorporation, bylaws, limited partnership agreement or any similar instrument of such
Party, as applicable, and (ii) does not conflict with, violate, or breach or constitute a default or require any consent under any contractual obligation or court or administrative order by which such Party is bound. 
  
 12.1.3 Licensor represents and warrants that it has the right to grant
the licenses granted herein and that as of the Effective Date it has [***] of the Licensor Patents or other Licensor Technology in connection with activities to be conducted hereunder. Licensee represents and warrants that it has the right to grant
the licenses granted to Licensor herein and that as of the Effective Date it has [***] activities to be conducted by the Parties hereunder.  
  
 12.2 Additional Representations and Warranties of Licensee(s). Each Licensee hereby severally represents and warrants to Licensor, as of the
Effective Date, that such Licensee (i) is a corporation or an Aktiengesellschaft duly organized and in good standing under the laws of its jurisdiction of organization, and (ii) has full power and authority and the legal right to own and
operate its property and assets and to carry on its business as it is now being conducted and as it is contemplated to be conducted by this Agreement. 
  
 12.3 Additional Representations and Warranties of Licensor. Licensor hereby represents and warrants to Licensee, as of the Effective Date,
as set forth below: 
  
 12.3.1 Licensor is a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware, and has full power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted
and as is contemplated to be conducted by this Agreement. 
  
 12.3.2 To the knowledge of Licensor, the Licensor Patents existing as of the Effective Date are [***]. To the knowledge of Licensor, the conception, development and reduction to practice of the subject matter claimed and/or disclosed
in Licensor Patents and the information embodied in the Licensor Know-How existing as of the Effective Date have not [***] of any Third Party. There are no judgments or settlements against Licensor or amounts owed by Licensor (other than amounts
owed in the ordinary course of business and/or pursuant to the Licensor In-Licenses) with respect to the Licensor Patents or the Licensor Know-How. No litigation has been commenced or threatened, and Licensor is not aware of any claim, by any Third
Party or Regulatory Authority alleging that the Licensor Patents are invalid or unenforceable. 
  
 12.3.3 Except for the license grants in Section 3.1, neither Licensor nor any of its Affiliates has, directly or indirectly, expressly or by implication, by action or omission or otherwise (i) [***]; (ii)
[***], or (iii) [***].  
  
 12.3.4 To the knowledge
of Licensor, no Third Party has infringed or threatened in writing to infringe the Licensor Patents. 
  
 12.3.5 The Licensor In-Licenses are in full force and effect and, to the knowledge of Licensor, there is no basis upon which termination could
occur. Licensor has [***]. The copies of the Licensor In-Licenses provided to Licensee by Licensor are true, complete and 
  

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 correct. Licensor shall promptly provide Licensee with notice of any alleged, threatened, or actual breach of any
In-License Agreement. To the extent permitted by the In-License Agreements, Licensor agrees that Licensee [***] by Licensor under the [***]. 
  
 12.3.6 Neither Licensor nor any of its Affiliates has been debarred or is subject to debarment and neither Licensor nor any of its Affiliates will
knowingly use in any capacity, in connection with the services to be performed under this Agreement, any Third Party who has been debarred pursuant to Section 306 of the Federal Food, Drug, and Cosmetic Act, or who is the subject of a conviction
described in such section. Licensor agrees to inform Licensee in writing immediately if it or any Third Party who is performing services hereunder is debarred or is the subject of a conviction described in Section 306, or if any action, suit, claim,
investigation or legal or administrative proceeding is pending or, to the best of Licensor’ knowledge, is threatened, relating to the debarment or conviction of Licensor or any Third Party performing services hereunder. 
  
 12.4 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 a 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. 
  
 12.5 Disclaimer. EXCEPT AS MAY BE OTHERWISE PROVIDED IN THIS ARTICLE, NEITHER PARTY MAKES ANY REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE,
REGARDING THE LICENSED PRODUCT, THE DRUG CONJUGATION MATERIALS OR ANY ADCs PREPARED BY LICENSOR, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR USE OR PURPOSE. 
  
 ARTICLE 13 – TERM AND TERMINATION 
  
 13.1 Term. Unless earlier terminated pursuant to this Article
13, the term of this Agreement (the “Term”) shall commence on the Effective Date and shall remain in full force and effect until the expiration of the last to expire Royalty Term. 
  
 13.2 Termination by Licensee.  
  
 13.2.1 Licensee shall have the right, effective at any time after the
first anniversary of the Effective Date, to terminate this Agreement in its entirety by providing not less than [***] prior written notice to Licensor of such termination. 
  
 13.2.2 At any time prior to [***], Licensee shall have the right to terminate this Agreement on a country-by-country
basis, upon [***] prior written notice to Licensor, in the event that Licensee [***]. 
  

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 13.2.3 Licensee shall have the right in its sole discretion to terminate this Agreement at any
time on a country-by-country basis pursuant to Article 10 upon [***] prior written notice. 
  
 13.3 Termination for Cause. Either Party may terminate this Agreement for 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 [***] after notice thereof. Such [***] shall be extended in the case of a breach not capable of being remedied in such [***], so long as the Breaching Party uses diligent efforts to remedy such breach and is
pursuing a course of action that, if successful, will effect such a remedy. If such alleged breach is not remedied in the time period set forth above, the nonbreaching Party shall be entitled, without prejudice to any of its other rights conferred
on it by this Agreement, and in addition to any other remedies available to it by law or in equity, to terminate this Agreement in its entirety or selectively, at its option, on a country-by-country basis. In the event of a dispute regarding
royalties owing hereunder, all undisputed amounts shall be paid when due and the balance, if any, shall be paid promptly after settlement of the dispute including any accrued interest thereon. 
  
 13.4 Termination Upon Insolvency. A Party may terminate this
Agreement if, at any time, (a) 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, (b) such other Party proposes a written agreement of composition or extension of its debts, (c) 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 [***] after the filing thereof, (d) such other Party shall propose or be a party to any dissolution or liquidation, or (e) such other Party shall make an assignment for
the benefit of its creditors. 
  
 13.5 Termination of
Licensor In-Licenses.  
  
 13.5.1 All
rights and obligations under a Licensor In-License sublicensed under this Agreement shall terminate upon [***] prior written notice by Licensor if Licensee performs any action that would constitute a breach of any material provision of such Licensor
In-License Agreement and fails to cure such breach within such [***] period; provided, however, such cure period may be extended by mutual written consent of the Parties. Licensor covenants that it will (a) use Commercially Reasonable
Efforts to maintain all Licensor In-Licenses in good standing for the duration of this Agreement; and (b) promptly notify Licensee of any notice of alleged breach or default delivered to Licensor under the Licensor In-Licenses. Licensee shall have
the right to cure any monetary default or breach by Licensor under the Licensor In-Licenses and to offset any amounts paid to cure such default against amounts payable to Licensor hereunder. In the event, despite such efforts, any Licensor
In-License(s) terminates, (a) [***] and (b) [***]. 
  
 13.5.2
All rights sublicensed to Licensee and relevant obligations under the BMS Agreement shall automatically terminate if [***]. 
  

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 13.6 Effect of Expiration and Termination. 
  
 13.6.1 Except where explicitly provided within this Agreement,
termination of this Agreement for any reason, or expiration of this Agreement, will not affect any: (a) obligations, including payment of any royalties or other sums which have accrued as of the date of termination or expiration, and (b) rights and
obligations which, from the context thereof, are intended to survive termination or expiration of this Agreement, including provisions of Articles 1, 3, 8, 9, 10, 14 (as to actions arising during the Term or in the course of a Party practicing any
licenses retained by such Party thereafter), 18 and 19, Sections 7.2, 7.3 and 13.6 and any payment obligations pursuant to Section 6 incurred prior to termination. Notwithstanding the foregoing, all licenses granted by Licensor to Licensee
hereunder, including all Exclusive Licenses, and all sublicenses granted by Licensee hereunder, will immediately terminate upon termination of this Agreement pursuant to Sections 13.2.1, 13.2.2, 13.3 (pursuant to a breach by Licensee), 13.4 (subject
to Section 13.7) or 13.5; provided that upon any termination pursuant to Section 13.2.3, such licenses and sub-licenses shall terminate only with respect to the relevant country or countries.  
  
 13.6.2 License to Licensee. Upon (i) the expiration of the
Royalty Term or (ii) Licensee’s termination of this Agreement pursuant to Section 13.3 (pursuant to a breach by Licensor), Licensor shall grant, and shall by this provision be deemed to have granted, to Licensee a perpetual, worldwide,
nonexclusive license to use the Licensor Technology to make, use, sell, offer for sale and import Licensed Products that bind specifically to the Designated Antigen, with no further obligation to Licensor. Notwithstanding the foregoing, or any other
provision of this Agreement: (a) any of Licensee’s milestone, royalty and other payment and reimbursement obligations accruing under this Agreement prior to termination or expiration and during the Royalty Term shall not be affected by, and
shall survive, such termination or expiration; (b) any of Licensee’s milestone payment obligations and other payment and reimbursement obligations to Licensor (other than royalty payment obligations) not yet matured as of the date of
termination or expiration shall be eliminated; and (c) any of Licensee’s royalty payment obligations accruing under this Agreement either before or after the date of termination or expiration shall survive such termination or expiration [***].

  
 13.6.3 License to Licensor. Upon any termination
of the Exclusive License, except pursuant to Section 13.2.2 or 13.2.3 or pursuant to Licensee’s termination of this Agreement pursuant to Section 13.3 (pursuant to a breach by Licensor), Licensee shall be automatically deemed to grant to
Licensor a worldwide, nonexclusive, irrevocable, royalty-free, sublicensable license in the Territory under the Licensee ADC Know-How and Licensee ADC Patents to identify, develop and commercialize products that contain an ADC consisting of an
Antibody that binds specifically to the Designated Antigen. 
  
 13.7 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by Licensor or Licensee are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy
Code, licenses of right to “intellectual property” as defined under Section 101 of the United States Bankruptcy Code. The Parties agree that the Parties, as licensees of such rights under this Agreement, shall retain and may fully exercise
all of their rights and elections under the United States Bankruptcy Code. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against either Party under the United States Bankruptcy Code, the Party
hereto that is not a party to such proceeding shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such 
  

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 intellectual property and all embodiments of such intellectual property, which, if not already in the non-subject
Party’s possession, shall be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon the non-subject Party’s written request therefor, unless the Party subject to such proceeding elects to continue to
perform all of its obligations under this Agreement or (b) if not delivered under clause (a) above, following the rejection of this Agreement by or on behalf of the Party subject to such proceeding upon written request therefor by the non-subject
Party. 
  
 ARTICLE 14 - INDEMNITY 
  
 14.1 Direct Indemnity. 
  
 14.1.1 Each Party shall defend, indemnify and hold harmless the other
Party and its respective successors, assigns, directors, officers, employees and agents, from and against all liabilities, losses, damages, and expenses, including reasonable attorneys’ fees and court costs, (collectively, the
“Liabilities”) resulting from all Third Party claims, suits, actions, terminations or demands (collectively, the “Claims”) that are incurred, relate to or arise out of (a) 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), or (b) the gross negligence, recklessness or willful misconduct of the indemnifying Party in connection with the
performance of its obligations hereunder. In addition, Licensee hereby agrees to defend, indemnify and hold Licensor harmless from Liabilities resulting from the use, handling and/or storage of Drug Conjugation Materials and/or ADCs by Licensee
and/or from Licensee’s conduct of Research Plan B under the Research Collaboration Agreement, in each case prior to the Effective Date, except insofar as such Liabilities arise out of the gross negligence, recklessness or willful misconduct of
Licensor. Licensor hereby agrees to defend, indemnify and hold Licensee harmless from Liabilities resulting from the use, handling and/or storage of Antibodies provided by Licensee and/or ADCs by Licensor and/or from Licensor’s conduct of
Research Plan A under the Research Collaboration Agreement, in each case prior to the Effective Date, except insofar as such Liabilities arise out of the gross negligence, recklessness or willful misconduct of Licensee. 
  
 14.1.2 Licensee shall defend, indemnify and hold harmless Licensor and
its successors, assigns, directors, officers, employees and agents, from and against all Liabilities resulting from all Claims that are incurred, relate to or arise out of the development, manufacture or commercialization of Licensed Products by
Licensor for Licensee or by Licensee, its Affiliates or Sublicensees, including without limitation (a) any failure to test for or provide adequate warnings of adverse side effects, or any manufacturing defect in any Licensed Product and (b) any
failure by Licensee or its Affiliates to pay any Existing Third Party Royalties or royalties owed for Improvements or New Technologies with respect to any Licensed Product; except in each case to the extent such Liabilities resulted from the gross
negligence, recklessness or willful misconduct by Licensor or the inaccuracy of any representation or warranty made by Licensor in this Agreement or from any other action for which Licensor must indemnify Licensee under Section 14.1.3. 

 
 14.1.3 Licensor shall defend, indemnify and hold harmless Licensee
and its successors, assigns, directors, officers, employees and agents, from and against all Liabilities resulting from all Claims that are incurred, relate to or arise out of any claims of infringement of 
  

 30. 

 Third Party rights arising out of the use of Licensor Technology to make ADCs that bind specifically to the Designated
Antigen or to make a Licensed Product (but not any other technology, including the composition or methods of making or using Antibodies or technology not relating to Drug Conjugation Technology), except to the extent such Liabilities resulted from
the gross negligence, recklessness or willful misconduct by Licensee or the inaccuracy of any representation or warranty made by Licensee in this Agreement or any other action for which Licensee must indemnify Licensor hereunder. 
  
 14.2 Procedure. A Party (the “Indemnitee”)
that intends to claim indemnification under this Article 14 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. However, notwithstanding the foregoing, the Indemnitee shall have the right to retain its own counsel, with the reasonable fees and expenses thereof 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 indemnified, defended or held harmless under this Article 14 that could adversely affect the Indemnitee shall be subject to prior consent of such Indemnitee, provided
that such consent shall not be unreasonably withheld or delayed. 
  
 ARTICLE
15 - FORCE MAJEURE 
  
 No Party (or any of its
Affiliates) shall be held liable or responsible to the other Party (or any of its Affiliates), or be deemed to have defaulted under or breached the Agreement, for failure or delay by such Party 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, terrorist acts or threats of terrorist acts, earthquakes, 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 promptly. Notwithstanding the foregoing, to the extent that an Event
of Force Majeure continues for a period in excess of [***], the affected Party shall promptly notify in writing the other Party of such Event of Force Majeure and within [***] of the other Party’s receipt of such notice, the Parties shall
negotiate in good faith either (a) a resolution of the Event of Force Majeure, if possible, (b) an extension by mutual agreement of the time period to resolve, eliminate, cure or overcome such Event of Force Majeure, (c) an amendment of this
Agreement to the extent reasonably possible, or (d) an early termination of this Agreement. The Parties agree that a failure to commit sufficient resources, financial or otherwise, to the activities of such Party hereunder shall not be deemed an
Event of Force Majeure, unless such failure shall result from causes beyond the reasonable control of the non-performing Party. 
  

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 ARTICLE 16 - ASSIGNMENT 
  
 Except as expressly provided herein, neither Party may, without the prior written consent of the other Party, assign or
otherwise transfer any of its rights and interests or delegate any of its obligations hereunder; provided, however, that (a) the assignment of this Agreement by operation of law pursuant to a merger or consolidation of either Party
with or into any Third Party shall, regardless of the identity of the surviving entity to such merger or consolidation, not be deemed an assignment in violation of this Section 16, (b) either Party, without such consent, may assign its rights and
delegate its duties hereunder to an Affiliate thereof without obtaining such consent, provided that the assigning Party agrees to remain primarily (and not secondarily or derivatively) liable for the full and timely performance by such Affiliate of
all its obligations hereunder, and (c) either Party, without such consent, may assign its rights and delegate its duties hereunder to a successor entity or acquirer, provided that the assigning Party agrees to remain primarily (and not secondarily
or derivatively) liable for the full and timely performance by such assignee of all its obligations hereunder. Notwithstanding the foregoing, [***]. Any attempted assignment of this Agreement not in accordance with this Article 16 shall be void and
of no effect. A “Change of Control” means any of the following transaction or series of transactions: (a) any merger, consolidation, share exchange, business combination, issuance of securities, acquisition of securities, tender
offer, exchange offer or other similar transaction in which (i) a “person” or “group” (as defined in the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder) of persons directly or indirectly
acquires beneficial or record ownership or voting power of securities representing more than [***] of the outstanding voting securities of the Licensor or the receives the ability otherwise to elect a majority of the board of directors or other
managing authority of Licensor, which in any event shall be presumptively deemed to confer control over Licensor or (ii) Licensor issues securities representing more than [***] of the outstanding voting securities of Licensor or the ability
otherwise to elect a majority of the board of directors or other managing authority of Licensor, which in any event shall be presumptively deemed to confer control over Licensor; or (b) any sale, lease, exchange, transfer, license, acquisition or
disposition of any business or businesses or assets of the Licensor that constitute or account for [***] or more of the consolidated net revenues, net income or assets of the Licensor (including, without limitation, an exclusive license of all or
substantially all of the Licensor’s intellectual property rights).  
  
 ARTICLE 17 - 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, that 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 based on such valid provisions. In case such alternative 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. 
  

	***	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. 

  

 32. 

 ARTICLE 18 – INSURANCE 
  
 18.1 During the Term and for [***] thereafter, Licensee shall maintain, at its sole expense, clinical trial and
product liability insurance relating to the Licensed Product that is comparable in type and amount to the insurance customarily maintained by pharmaceutical companies with respect to similar prescription pharmaceutical products that are marketed,
distributed and sold in the Territory. 
  
 18.2 During the
Term and for [***] thereafter, Licensor shall maintain, at its sole expense, such types and amounts of insurance coverage as is appropriate and customary in the pharmaceutical industry in light of the nature of the activities to be performed by
Licensor hereunder, and which names Licensee as an insured party. 
  
 18.3 Licensee shall maintain (and shall require its Affiliates and Sublicensees to agree in writing to maintain) insurance or self-insurance that complies with the applicable requirements of Sections 4.2(b) and 11.5 of the BMS
Agreement; provided, however, that under the terms of the BMS Consent the following requirements of Section 11.5 of the BMS Agreement shall not apply to Licensee: (a) the aggregate deductible requirements of such policies, and (b) the
duration of the applicable coverage. 
  
 ARTICLE 19- MISCELLANEOUS

  
 19.1 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 19.1 and (except as otherwise provided in this Agreement) shall be effective upon receipt by the addressee. 
  
 If to Licensor: 
  
 Seattle Genetics, Inc. 
 21823 30th Drive S.E.

 Bothell, WA 98021 
 Attention:
General Counsel 
 Telephone: (425) 527-4000 
 Facsimile: (425) 527-4109 
  
 If to Licensee: 
  
 Bayer Pharmaceuticals
Corporation 
 400 Morgan Lane 
 West Haven, CT 06516 
 Attention: Senior Vice President, Global Licensing 
 Telephone: (203) 812-2000 
 Facsimile: (203)
812-6311 
  

	***	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. 

 With a copy to: 
  
 Bayer Pharmaceuticals Corporation 
 400 Morgan Lane 
 West Haven, CT 06516 
 Attention: Vice President and General Counsel 
 Telephone: (203) 812-6081 
 Facsimile: (203) 812-2795 
  
 19.2 Applicable Law. The Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without regard to the conflict of law principles thereof that may dictate application of the laws of any other state. 
  
 19.3 Dispute Resolution. The Parties agree that if any dispute or disagreement arises between Licensee on the one hand and Licensor on the
other in respect of this Agreement (including without limitation a dispute under Articles 6 or 7 hereof, but excluding any dispute arising under Section 13.3 hereof), they shall follow the following procedure in an attempt to resolve the dispute or
disagreement. 
  
 19.3.1 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; 
  
 19.3.2 Within [***] of receipt of a Notice of Dispute, a nominee or nominees of Licensee and a nominee or nominees of Licensor 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; 
  
 19.3.3 If, within a further period of [***], the dispute has not been
resolved, the President of Licensor and the President of Licensee shall meet at a mutually agreed upon time and location for the purpose of resolving such dispute; 
  
 19.3.4 If, within a further period of [***], the dispute has not been resolved or if, for any reason, the required
meeting has not been held, then upon either Party’s request the same shall be referred to compulsory arbitration in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (“UNCITRAL”)
as in effect on the Effective Date, except as provided in Sections 19.3.8 or 19.3.11. The Parties consent to a single, consolidated arbitration for all disputes for which arbitration is permitted. It is the intent of the Parties that the provisions
of this Section shall govern the arbitration of any dispute, notwithstanding anything to the contrary set out in the applicable rules. The arbitral body shall be composed of [***] neutral arbitrators selected by agreement of the Parties or, in the
absence of such agreement within [***] after either Party first proposes an arbitrator, by the International Chamber of Commerce (the “ICC”). The arbitration proceedings shall be conducted in the English language, and all documents
not in English submitted by any Party must be accompanied by an English translation. The arbitration shall be conducted in [***]. All discovery shall be completed within [***] after selection of the arbitrators. Each Party shall be permitted single
depositions of no more than [***] who have information directly relevant to the dispute and [***] requesting directly relevant documents. Any hearing that may be held shall be held in the presence of both Parties and shall take place within [***]
following completion of the discovery 
  

	***	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. 

  

 34. 

 period, and each of the Parties shall present its case, witnesses and evidence, if any, within not more than [***] for
each Party’s case. A written transcript of the proceedings shall be made, at the joint expense of the Parties, and furnished to the Parties. The arbitrators shall set limits on the length of the Parties’ written submissions based on the
nature of the dispute, which shall be delivered to the other Party simultaneously with their submission to the arbitrators. The arbitrators shall determine the dispute, within [***] after completion of the hearing, in accordance with the internal
laws of the State of New York and applicable U.S. federal law, without giving effect to any conflict of law rules or other rules that might render such law inapplicable or unavailable. All arbitration proceedings hereunder shall be governed by U.S.
Rules of Evidence. The arbitrators shall render a written statement to the Parties setting forth the basis of his/her determination. 
  
 19.3.5 The Parties irrevocably consent and agree to be bound by any award or order resulting from any arbitration conducted hereunder and further
agree that: this Agreement and the resulting obligations and relationships are commercial, and that the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards applies to this Agreement and to any award or order
resulting from any arbitration conducted hereunder. Any monetary award shall be payable in such currency and through such bank as the recipient of such award shall direct, free of any withholding tax or other deduction, together with interest
thereon at the [***], from the date the award is granted to the date it is paid in full. The Parties hereby agree that both factual findings and legal rulings in any award by the arbitrators shall be res judicata as to all Parties hereto. In the
context of an attempt by either Party to enforce an arbitral award or order, any defenses relating to the Parties’ capacity or the validity of this Agreement under any law are hereby waived. The Parties hereby acknowledge that set aside
proceedings may be available, but hereby expressly renounce any right to set aside any award issued by the arbitrators, except for the grounds set forth in the U.S. Federal Arbitration Act. Judgment on any award or order resulting from an
arbitration conducted under this Section may be entered and enforced in any court, in any country, having jurisdiction thereof or having jurisdiction over any of the Parties or any of their assets. 
  
 19.3.6 In addition to the authority otherwise conferred on the
arbitral body, it shall have the authority to make such orders for interim relief, including injunctive relief, as it may deem just and equitable. Upon appointment of the arbitrators following any grant of interim relief by a court, the arbitrators
may affirm or disaffirm such relief, and the Parties will seek modification or rescission of the court action as necessary to accord with the arbitrators’ decision. 
  
 19.3.7 Any fees and expenses (except for attorney’s fees and expenses) payable with respect to an arbitration
under this Section shall be borne by the Party losing the case. All arbitration rulings and awards shall be final and binding on the Parties. 
  
 19.3.8 Notwithstanding anything herein to the contrary, nothing in this Agreement, including, without limitation this Section, shall preclude
either Party from seeking interim or provisional relief, including a temporary restraining order, preliminary injunction or other interim equitable relief concerning a dispute with the other Party, either prior to or during the dispute resolution
procedures set forth herein, if necessary to protect the interests of such 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. 

  

 35. 

 19.3.9 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. 
  
 19.3.10 Notwithstanding the foregoing, any disputes relating to inventorship or the validity, enforceability or scope of any patent or trademark
rights shall be submitted for resolution by a court of competent jurisdiction. 
  
 19.3.11 No Party will commence or voluntarily participate in any court action or proceeding relating to any dispute concerning or arising under this Agreement, except (i) for enforcement of arbitral awards or
orders as contemplated herein, (ii) to restrict or vacate an arbitral decision based on the grounds set forth in the U.S. Federal Arbitration Act, (iii) in the case of any dispute arising under Section 13.3 hereof, or (iv) for interim relief. For
purposes of the foregoing or enforcement of any undisputed obligation, the Parties hereto submit to the non-exclusive jurisdiction of the appropriate state or federal court sitting in the Southern District of the State of New York.

  
 19.4 Entire Agreement. This Agreement, together
with all Schedules hereto, contains the entire understanding of the Parties with respect to the specific subject matter hereof. All express or implied agreements and understandings, either oral or written heretofore made, including but not limited
to the Research Collaboration Agreement, are expressly superceded by this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties hereto. 
  
 19.5 Independent Contractors. Licensor and Licensee each
acknowledge that they shall be independent contractors and that the relationship(s) among the Parties shall not constitute a partnership, joint venture, agency or any type of fiduciary relationship. Neither Licensor nor Licensee 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(ies), without the prior consent of the other Party(ies) to do so. 
  
 19.6 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. 
  
 19.7 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.

  
 19.8 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. 
  

 36. 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 
  

			
	SEATTLE GENETICS, INC.
		
	By:	 	 /s/ Clay B. Siegall

	Name:	 	Clay B. Siegall, Ph.D.
	Title:	 	President & CEO
	
	BAYER PHARMACEUTICALS CORPORATION
		
	By:	 	 /s/ Joseph J. Catino

	Name:	 	Joseph J. Catino
	Title:	 	Sr. V.P. Research

  

 37. 

 SCHEDULE A 
  
 RESEARCH PLAN 
  
 RESEARCH SUPPORT 
  
 Licensor will conjugate research quantities [***] of the lead [***] with several combinations of [***]. Licensor will conjugate up to [***]. 
  
 DEVELOPMENT SUPPORT BY LICENSOR 
  
 Assistance will be provided by Licensor in the form of technical summaries and quarterly
teleconferences. Requested data, reports, methods and materials will be provided on an as available basis and as information is updated. On-site meetings and technical transfer can be provided by Licensor as needed to advance development efforts.

  
 PRECLINICAL DEVELOPMENT ACTIVITIES OF LICENSOR 
 [***] 
  

	***	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. 

  

 SCHEDULE B 
  
 LICENSOR PATENTS 
  
 Existing Licensor Technology 
  
 [***] 
  

	***	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. 

  

 SCHEDULE C 
  
 LICENSOR IN-LICENSES 
  
 The following Licensor In-Licenses are attached: 
  
 [***] 
  

	***	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. 

  

 SCHEDULE D 
  
 [***] 
  

	***	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.Collaboration Agreement

 Exhibit 10.2 
  
 COLLABORATION AGREEMENT 
  
 by and between 
  
 SEATTLE GENETICS, INC. 
  
 and 
  
 APPLERA
CORPORATION 
  
 through its 
  
 CELERA GENOMICS GROUP 

 TABLE OF CONTENTS 
  

					
	 Article 1
	  	Definitions	  	1
			
	 Article 2
	  	Exclusivity	  	12
			
	 Article 3
	  	Collaboration Program Responsibilities	  	13
			
	 Article 4
	  	Governance	  	16
			
	 Article 5
	  	Regulatory Approval	  	18
			
	 Article 6
	  	Manufacturing	  	19
			
	 Article 7
	  	Sales and Marketing	  	20
			
	 Article 8
	  	Contributions, Cost Sharing and Consideration	  	20
			
	 Article 9
	  	Patent Rights and Technology Ownership and License	  	24
			
	 Article 10
	  	Patent Rights Maintenance and Enforcement	  	26
			
	 Article 11
	  	Confidentiality	  	28
			
	 Article 12
	  	Representations and Warranties	  	30
			
	 Article 13
	  	Indemnification	  	31
			
	 Article 14
	  	Term and Termination	  	32
			
	 Article 15
	  	Dispute Resolution	  	34
			
	 Article 16
	  	Miscellaneous	  	36

  

 i 

 COLLABORATION AGREEMENT 
  
 THIS COLLABORATION AGREEMENT (this “Agreement”), effective as of July 20, 2004 (the “Effective Date”), is by and between
APPLERA CORPORATION, a Delaware corporation, through its CELERA GENOMICS GROUP (“Celera”), having a place of business at 45 West Gude Drive, Rockville, Maryland 20850, and SEATTLE GENETICS, INC., a Delaware corporation
(“SGI”), having a place of business at 21823 30th Drive S.E., Bothell, WA 98021. 
  
 WHEREAS, SGI has expertise in the discovery, development and manufacture of therapeutic
products based on monoclonal antibodies and antibody-drug conjugates; 
  
 WHEREAS,
Celera has expertise and technology in genomics and proteomics research which are useful for the identification of proteins associated with human diseases and conditions; and 
  
 WHEREAS, SGI and Celera desire to engage in a collaborative program for the discovery, research, development and commercialization worldwide
of therapeutic products based on monoclonal antibodies and antibody-drug conjugates directed to proteins identified by Celera using its expertise and technology. 
  
 NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth below, the Parties (as defined below) agree as
follows: 
  
 Article 1 Definitions 
  
 1.1 “ADC Product” means a Designated Antibody that is linked to a cytotoxin
or cytostatic compound and that contains, uses, or is made using SGI ADC Technology during performance of the Collaboration Program. 
  
 1.2 “ADR” means alternate dispute resolution in accordance with the procedures set forth in Article 15. 
  
 1.3 “Affiliate(s)” means, with respect to any person or entity, any other
person or entity, which controls, is controlled by or is under common control with such person or entity. For purposes of this definition, a person or entity is in “control” of an entity if it owns or controls [***] or more of the equity
securities of the subject entity entitled to vote in the election of directors (or, in the case of an entity that is not a corporation, for the election of the corresponding managing authority), or otherwise has the power to control the management
and policies of such other entity. An entity only retains the rights and is subject to the obligations of an Affiliate for so long as such entity continues to satisfy the definition in this Section 1.3. 
  
 1.4 “Affirmative Notice” has the meaning defined in Section 3.4 hereof.

  
 1.5 “Allowable Expenses” means, with respect to a
Collaboration Product, the Internal Expenses and External Expenses incurred by a Party through the [***] for such Collaboration Product for [***] and calculated in accordance with the Collaboration Accounting Policy, consistently applied.

  
 1.6 “Antibody Royalties” has the meaning defined in Section
8.5 hereof. 
  
 1.7 “Annual Budget” has the meaning defined in
Section 3.19 hereof. 
  

 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. 
  

 1 

 1.8 “Backup Candidate” means any Designated Antibody or ADC Product that: (a) is not a Collaboration
Product and (b) binds specifically to a Designated Antigen [***]. 
  
 1.9
“Blind Review” means the determination by an independent Third Party whether a particular Validated Celera Antigen Target conflicts with any of the SGI Targets, which determination will be performed pursuant to Section 3.3, using
the methodology set forth in Exhibit 3.3 and in a manner that would not reveal the identity of such targets to SGI, its Affiliates or any other Third Party. 
  
 1.10 “BMS Agreement” means the License Agreement between SGI and Bristol-Myers Squibb Company dated March 30, 1998, as
amended on June 8, 1998, June 26, 1998, July 29, 1999, July 26, 2000 and March 22, 2002. 
  
 1.11 “Celera Antigen Target” means any [***] identified by Celera in Celera’s proteomics program from any [***]. 
  
 1.12 “Celera Collaboration Patent Rights” means Collaboration Patent Rights that: 
  

	 	(a)	claim inventions conceived solely or jointly by employees of either or both Parties in the course of performing under this Agreement, that are not SGI Collaboration Patent Rights
and that primarily relate to: [***];[***],[***]; or [***]; or  

  

	 	(b)	claim inventions conceived solely by employees or agents of Celera in the course of performing under this Agreement, that do not claim [***]. 

  
 1.13 “Celera Collaboration Technology” means Collaboration Technology that
is Derived: 
  

	 	(a)	solely or jointly by employees of either or both Parties in the course of performing under this Agreement, that is not SGI Collaboration Technology and that primarily relates to:
[***];[***]; or [***]; or 

  

	 	(b)	solely by employees or agents of Celera in the course of performing under this Agreement and that does not relate to [***]. 

  
 Celera Collaboration Technology will be Celera’s Confidential
Information 
  
 1.14 “Celera Exclusive Diagnostic Product” means
any Diagnostic Product (other than an SGI Exclusive Diagnostic Product) that uses or is Derived from any [***]. 
  
 1.15 “Celera Independent Patent Rights” means Patent Rights Controlled by Celera as of the Effective Date and Celera’s Post-Signature Patent Rights,
[***]. 
  
 1.16 “Celera Independent Technology” means Material
and Technology Controlled by Celera as of the Effective Date and Celera’s Post-Signature Technology, [***] Celera Independent Technology is Celera’s Confidential Information. 
  
 1.17 “Celera Validation” means a process of evaluating a Celera Antigen Target in accordance with the Research Plan.

  
 1.18 “Celera Validation Data” means all data with respect to
a Celera Antigen Target developed by Celera in performance of a Celera Validation of such Celera Antigen Target, which data shall meet the specifications and requirements set forth in the Research Plan. All Celera Validation Data will be Celera
Confidential Information. 
  

	***	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 

 1.19 “Coded Data” means the anonymized data delivered by Celera to SGI pursuant to Section 3.4, which
data shall meet the specifications and requirements set forth in the Research Plan. All Coded Data will be Celera Confidential Information. 
  
 1.20 “Collaboration Accounting Policies” means the accounting policies adopted by the JSC to be used in determining Profit and Loss will be, in all
material respects, consistent with Generally Accepted Accounting Principles (“GAAP”) and any applicable regulations in the United States. 
  
 1.21 “Collaboration Field” means the [***]. The Collaboration Field does not include [***] whether or not Derived from any Designated Antigen.

  
 1.22 “Collaboration Patent Rights” means Patent Rights that
claim any invention that is part of Collaboration Technology. 
  
 1.23
“Collaboration Product” means any Designated Antibody or ADC Product that is selected by the JSC at the Preclinical Decision Point in accordance with Section 3.8 for jointly funded research, development and Commercialization
pursuant to the terms of this Agreement. 
  
 1.24 “Collaboration
Program” means the collaborative research, development, manufacturing, Regulatory Approval and Commercialization activities in the Collaboration Field undertaken pursuant to the Research Plan, any Development and Commercialization Plan(s)
and otherwise under this Agreement. 
  
 1.25 “Collaboration
Technology” means Technology and Materials Derived by or for a Party during and pursuant to the performance of the Collaboration Program. 
  
 1.26 “Combination Product” has the meaning provided in Section 1.62(b). 
  
 1.27 “Commence Development” and cognates thereof mean initiation, pursuant to any Research Plan or Development and
Commercialization Plan, of development of [***] pursuant to this Agreement. 
  
 1.28 “Commercialize” and cognates thereof mean the sale, transfer or promotion of a product or service to a Third Party for cash or other consideration. 
  
 1.29 “Confidential Information” means non-public proprietary data, information, Materials or Technology (in any form),
which is disclosed by such Party (“Disclosing Party”) to the other Party (“Receiving Party”) pursuant to this Agreement or is otherwise expressly deemed to be Confidential Information in this Agreement. Confidential
Information will not include data, information, Materials, or Technology which, and only to the extent, a Receiving Party can establish by written documentation: 
  

	 	(a)	is part of the public domain prior to disclosure of such information by the Disclosing Party to the Receiving Party or becomes part of the public domain, without the fault of the
Receiving Party, subsequent to disclosure of such information by the Disclosing Party to the Receiving Party; 

  

	 	(b)	has been received by the Receiving Party at any time from a source, other than the Disclosing Party, rightfully having possession of and the right to disclose such information free
of confidentiality obligations; 

  

	***	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. 

  

 3 

	 	(c)	has been otherwise known by the Receiving Party free of confidentiality obligations prior to disclosure of such information by the Disclosing Party to the Receiving Party;

  

	 	(d)	has been independently developed by employees or others on behalf of the Receiving Party without use of such information disclosed by the Disclosing Party to the Receiving Party.

  
 Specific aspects or details of Confidential
Information will not be deemed to be within the public knowledge or in the prior possession of the Receiving Party merely because the aspects or details of the Confidential Information are embraced by general disclosures in the public domain or in
the prior possession of the Receiving Party. In addition, any combination of Confidential Information will not be considered in the public knowledge or in the prior possession of the Receiving Party merely because individual elements thereof are in
the public domain or in the prior possession of the Receiving Party, unless the combination are in the public knowledge or in the prior possession of the Receiving Party. 
  
 With respect to Confidential Information which is jointly created or Controlled by the Parties under this Agreement, [***]

  
 Further, for avoidance of doubt, Confidential Information
will include Confidential Information received by the Disclosing Party from a Third Party. Prior to disclosure of any Third Party Confidential Information to the Receiving Party, the Disclosing Party will determine whether it has the right to make
such disclosure and will advise the Receiving Party of any additional terms or conditions applicable to such Third Party Confidential Information. 
  
 1.30 “Continuing Party” means a Party that elects to continue development and Commercialization of a Discontinued Product Candidate pursuant to Section
3.10 or a Party that elects to continue funding of a Unilateral Product pursuant to Section 8.4 after the Discontinuing Party elects to discontinue funding. 
  
 1.31 “Control” and cognates thereof mean, with respect to Technology, Patent Rights, Materials, and/or Confidential Information, the possession of the
ability to grant licenses or sublicenses or to otherwise disclose, without violating the terms of any agreement or other arrangement with, or the rights of, any Third Party. 
  
 1.32 “Cost of Goods Sold” means, with respect to the Revenue derived from any Collaboration Product, the actual direct and
indirect costs incurred by the Designated Party identifiable to the Collaboration Program or any Collaboration Products in support of the [***]. Direct costs will include [***]. Indirect costs identifiable to the production effort will
include, but not be limited to, items treated as [***]. Notwithstanding anything to the contrary, Cost of Goods Sold will [***]. 
  
 1.33 “Derive” and cognates thereof mean to obtain, develop, acquire, make, invent, discover, create, synthesize, design, or result from, to be based upon
or to otherwise generate (whether directly or indirectly, or in whole or in part). 
  
 1.34 “Designated Antibody” means any monoclonal antibody or antibody fragment or a derivative thereof that: (a) binds specifically to a Designated Antigen; and (b) is generated by SGI during performance of the Collaboration
Program. 
  

	***	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. 

  

 4 

 1.35 “Designated Antigen” means a Validated Celera Antigen Target nominated by Celera pursuant to
Section 3.2 and selected by SGI for SGI Validation pursuant to Section 3.6. All Designated Antigens will be Celera Confidential Information. 
  
 1.36 “Designated Party” or “Designated Parties” means the Party(ies) or a Third Party designated, pursuant to Section 4.4(b), by the JSC
or by the Research Plan or the applicable Development and Commercialization Plan to perform specific functions provided in this Agreement or in the Research Plan or the applicable Development and Commercialization Plan. 
  
 1.37 “Development Costs” means, with respect to the Collaboration Program,
the actual direct and indirect costs incurred by a Party identifiable to the Collaboration Program in support of: [***]. The actual costs will include the direct and indirect costs of conducting research, development, and clinical activities
with respect to the Collaboration Program. Direct costs will include [***]. Indirect costs identifiable to the research and development effort will include, but not be limited to, items treated as [***] to the Collaboration
Program in support of the research and development process. 
  
 1.38
“Development and Commercialization Plan” means, for each Collaboration Product, a written description which sets forth in reasonably specific detail: the specifications of such Collaboration Product; the plans for preclinical and
clinical development, Regulatory Filings and Regulatory Approvals, manufacturing scale-up, forecasting and performance, and Commercialization and licensing activities, including use of any Third Party to perform material portions of such activities;
the timelines, plan budget, and expected distribution of responsibilities for such activities; and the expected return from the Commercialization of such Collaboration Product, in each case as established by the JSC pursuant to Section 3.11 and as
set forth in Exhibit 1.38. 
  
 1.39 “Diagnostic Product” means
any product used for [***]. 
  
 1.40 “Discontinued Product
Candidate” means any Designated Antibody or ADC Product that binds specifically to [***]. 
  
 1.41 “Discontinuing Party” means a Party that elects, pursuant to Section 3.10(a), not to continue research, development and Commercialization of a Discontinued Product Candidate or a Party that
elects, pursuant to Section 8.4, not to continue funding research, development and Commercialization of a Collaboration Product. 
  
 1.42 “Disputes” has the meaning defined in Section 15.1 hereof. 
  

1.43 “Exploit” and cognates thereof mean: (a) with respect to a Patent Right, making, having made, using, selling, offering for sale or importing an
invention claimed in such Patent Right, or granting license rights under such Patent Right to do any of the foregoing; and (b) with respect to Technology or Materials, using or transferring the Technology or Materials or part thereof in conjunction
with the making, having made, using, selling, offering for sale and importing of a product or method, or granting license rights under such Technology to do any of the foregoing. 
  
 1.44 “External Expense” means all actual costs (including taxes and duties) paid to a Third Party identifiable to a
Collaboration Product in support of each Development and Commercialization Plan. 
  
 1.45 “FDA” means: (a) with respect to the United States, the Food and Drug Administration or the successor thereto; or (b) with respect to any other country, the governing health authority of such country. 
  

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 1.46 “Full Time Equivalent” or “FTE” shall mean the equivalent of full-time work of a
person, carried out by one or more employees of the Parties, who devotes a portion of his or her time, consisting of [***], to the Collaboration Program in support of development of a Collaboration Product during any period of [***]. 
  
 1.47 “General and Administrative Expenses” or “G&A” means
[***], calculated in accordance with the Collaboration Accounting Policy. In no event, will G&A charged to a particular Collaboration Product [***]. 
  
 1.48 “IND” means an investigational new drug application filed with the FDA in the United States, or any corresponding filing or submission with the
Regulatory Authority in any country required to commence human clinical testing of any Collaboration Product or Unilateral Product. 
  
 1.49 “IND-Enabling GLP Toxicology Studies” means any one of, or combination of, genotoxicity, acute toxicology, safety pharmacology, and sub-chronic
toxicology studies in species that satisfy applicable regulatory requirements using applicable good laboratory practices which are designed to meet the standard necessary for submission as part of an IND filing with a Regulatory Authority and are
meant to enable the commencement of dosing of a Collaboration Product in human subjects. 
  
 1.50 “Internal Expenses” means all expenses associated with an FTE. The rate per FTE shall include, but shall not be limited to, direct labor (including fringe benefits), direct materials (including
taxes and duties), indirect labor (including fringe benefits), materials, occupancy costs, depreciation of property, plant and equipment, and G&A identifiable to the Annual Budget for a Collaboration Product in support of each Development and
Commercialization Plan. The Parties agree that for a period of [***] following the execution of this Agreement, the rate per FTE shall be [***] for each Party, and shall [***] by an amount to be determined by the JSC in the Annual
Budget thereafter. 
  
 1.51 “IP Costs” means all costs included
for intellectual property related activities described in Article 10. 
  
 1.52
“IP Review” means an internal review conducted by SGI legal, scientific and other necessary personnel and any outside legal counsel together with a discussion between the Parties’ legal counsel regarding the [***] and performed
pursuant to Section 3.5. 
  
 1.53 “IP Review Information” has the
meaning defined in Section 3.5 hereof 
  
 1.54 “Joint Collaboration Patent
Rights” means Collaboration Patent Rights that claim inventions, conceived or made jointly by employees or agents of both Parties in the course of performing under this Agreement and that are not Celera Collaboration Patent Rights or SGI
Collaboration Patent Rights. 
  
 1.55 “Joint Collaboration
Technology” means Collaboration Technology that is Derived jointly by employees or agents of both Parties in the course of performing under this Agreement and that is not Celera Collaboration Technology or SGI Collaboration Technology.

  
 1.56 “Joint Steering Committee” or “JSC”
means the committee formed and functioning pursuant to Article 4 hereof to manage research, development and Commercialization pursuant to the Research Plan and the Development and Commercialization Plans. 
  
 1.57 “License Revenue” means [***], but excluding any amounts
received solely as: [***] In the event consideration for license rights to make, use or sell any Unilateral Products is [***]. 
  

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 1.58 “Loss” means, solely for purposes of this Agreement and solely if the amount resulting from the
following calculation is a negative number, in connection with each Collaboration Product, [***]. Thereafter, solely for purposes of this Agreement and solely if the amount resulting from the following calculation is a negative number, in
connection with each Collaboration Product that progresses beyond [***], all allocated to such Collaboration Product and calculated in accordance with the Collaboration Accounting Policy, consistently applied. 
  
 1.59 “Major Market Countries” means the [***]. 
  
 1.60 “Marketing and Advertising Expenses” means, with respect to
Collaboration Products, the actual direct and indirect costs identifiable to the Development and Commercialization Plan in support of the marketing and advertising of a Collaboration Product, calculated in accordance with Collaboration Accounting
Policy, consistently applied. Direct internal costs will include, but not limited to, travel, salaries and related fringe benefits of marketing personnel directly involved with the advertising and promotion of a Collaboration Product. Direct
external costs will include, but not be limited to, the following: (a) advertisements appearing in journals, newspapers, magazines and other media (including direct mail and electronic media); (b) publication and medical information activities and
continuing medical education; (c) seminars, medical meetings and conventions; (d) promotional literature, visual aids and other selling and training materials; (e) market research; (f) symposia, advisory panels and opinion leader development
activities; (g) patient assistance program activities; (h) other Collaboration Product-related public relations and communication activities; (i) expenses of post-approval commitments; (j) reimbursement hotlines; and (k) expenses of
post-registration marketing oriented studies. Indirect internal costs identifiable to the marketing and advertising effort will include, but will not be limited to, indirect labor, fringe benefits and office related expenses, including occupancy
costs. 
  
 1.61 “Materials” means, individually and
collectively, formulations, nucleic acids including DNA, RNA and PNA, vectors, antigens, antibodies, microbiological cultures or strains, cell lines, tumor tissues, peptides, proteins, molecules, compounds, compositions, and combinations or
components thereof. 
  
 1.62 “Net Sales” means:

  

	 	(a)	the gross invoiced price of any Royalty Product sold to a Third Party by a Party, its Affiliate or sublicensee, [***] and consistently calculated in accordance with GAAP:

  

	 	(i)	[***]; 

  

	 	(ii)	[***]; 

  

	 	(iii)	[***]; 

  

	 	(iv)	[***]; and 

  

	 	(v)	[***]. 

  

	 	(b)	With respect to Combination Products, the [***] of such Combination Products billed to Third Parties by a Party, [***] If there is no established current gross selling
price for the Royalty Product A or for the other active ingredient(s) B, then for the purposes of calculating Net Sales, the Parties agree to discuss in good faith the relative values of Royalty Product A and the other active ingredient(s) B so as
to arrive at a fair gross invoiced price for Combination Products upon which to base the Net Sales thereof. For purposes of this Agreement, “Combination Product” means a therapeutic Royalty Product that contains or that is sold
together in combination with [***]. 

  

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omitted portions. 

  

 7 

	 	(c)	Sale or transfer of a Royalty Product by or for a Party to an Affiliate or Third Party collaborator of that Party for resale by such Affiliate or Third Party collaborator
[***]. Sale or transfer of a Royalty Product by or for a Party to an Affiliate of that Party for end-use by such Affiliate [***]. 

  

	 	(d)	Net Sales [***]. 

  

	 	(e)	In the event that a Party, its Affiliate or sublicensee make any adjustments to such deductions after the associated Net Sales have been reported pursuant to this Agreement, the
adjustments shall be reported and reconciled in the next report and payment of any royalties due. 

  
 1.63 “Opt Out Date” has the meaning defined in Section 8.4(a) hereof. 
  
 1.64 “Opt Out Option” has the meaning defined in Section 8.4(a) hereof. 
  
 1.65 “Opt Out Product Candidate” has the meaning defined in Section 8.4(b)
hereof. 
  
 1.66 “Party” means SGI or Celera, and
“Parties” means SGI and Celera. 
  
 1.67 “Patent
Rights” means rights conferred by: (a) patent applications filed in any country; (b) all patents including supplemental protection certificates that have issued or in the future issue from any of the foregoing, including, without
limitation, utility models, design patents and certificates of invention; and (c) all divisionals, continuations, continuations-in-part, reissues, re-examination certificates, renewals, extensions or additions to any such patents and patent
applications (as applicable). 
  
 1.68 “Phase IIA Clinical Trial”
means a human clinical trial in any country that is intended to initially evaluate the effectiveness of a Collaboration Product for a particular indication or indications in patients with the disease or indication under study or that would otherwise
satisfy requirements of 21 CFR §312.21(b), or its foreign equivalent. 
  
 1.69 “Phase IIB Clinical Trial” means a human clinical trial in any country that is intended to preliminarily assess the effectiveness of a Collaboration Product for a particular indication, the clinical doses of such
Collaboration Product for a Phase III Clinical Trial, and the safety profile of such Collaboration Product. 
  
 1.70 “Phase III Clinical Trial” means a controlled, and usually multi-center, human clinical trial in any country that involves patients with the disease
or condition of interest and that seeks to obtain sufficient efficacy and safety data to support Regulatory Approval of a Collaboration Product for a particular indication or indications. 
  
 1.71 “Post Phase IIA Opt Out Period” has the meaning defined in Section 8.4(a) hereof. 
  
 1.72 “Post-Signature Patent Rights” means Patent Rights [***]. 

 
 1.73 “Post-Signature Technology” means Technology and Materials [***].

  

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 1.74 “Preclinical Decision Point” means, with respect to any Designated Antibody or any ADC Product, the
point at which [***] set forth in the Research Plan. 
  
 1.75
“Profit” means, solely for purposes of this Agreement and solely if the amount resulting from the following calculation is not a negative number, in connection with each Collaboration Product, [***] Thereafter, solely for
purposes of this Agreement and solely if the amount resulting from the following calculation is not a negative number, in connection with each Collaboration Product that [***] and calculated in accordance with the Collaboration Accounting
Policy, consistently applied. 
  
 1.76 “Regulatory Approval”
means the technical, medical and scientific licenses, registrations, authorizations and approvals required for marketing or use of a product (including, without limitation, approvals of, biologic license applications, investigational new drug
applications, pre- and post- approvals, pricing and Third Party reimbursement approvals, and labeling approvals and any supplements and amendments to any of such approvals) of any national, supra-national, regional, state or local regulatory agency,
department, bureau, commission, council or other governmental entity, necessary for the development, manufacture, distribution, marketing, promotion, offer for sale, use, import, export or sale of Collaboration Products or Unilateral Products in a
regulatory jurisdiction. In the United States, its territories and possessions, Regulatory Approval means approval of a biologics license application, new drug application or equivalent by the FDA. 
  
 1.77 “Regulatory Authority” means the FDA and/or any national,
supra-national (e.g., the European Commission, the Council of the European Union, or the European Agency for the Evaluation of Medicinal Products), regional, state or local regulatory agency, department, bureau, commission, council or other
governmental entity in each country or supra-national territory of the world having jurisdiction over granting a Regulatory Approval for a Collaboration Product or Unilateral Product. 
  
 1.78 “Regulatory Filings” means a, biologics license application, new drug application and/or any other comparable filings
as may be required by Regulatory Authorities to obtain Regulatory Approvals for a product in the Collaboration Field. 
  
 1.79 “Rejected Target” means: [***]. 
  
 1.80 “Research Plan” means the research roles, responsibilities and deliverables of each Party and the timelines therefor as set forth in Exhibit 1.80.
The Research Plan will include, without limitation, general criteria and procedures for [***]. The Research Plan may be amended by the Parties pursuant to Section 16.17. 
  
 1.81 “Research Term” means the [***] and any extension thereto authorized by the Parties pursuant to Section 3.9.

  
 1.82 “Revenue(s)” means, with respect to each Collaboration
Product, the sum of the following, determined in accordance with Collaboration Accounting Policies, consistently applied: (a) [***], and (b) [***] in connection with a Collaboration Product approved by the JSC. 
  
 1.83 “Review Period” has the meaning defined in Section 3.4 hereof.

  
 1.84 “Royalty Product” means any Unilateral Product subject
to royalties pursuant to Section 8.4(a) and any Diagnostic Product subject to royalties pursuant to Section 8.9. 
  
 1.85 “Royalty Term” means [***]. 
  

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 9 

 1.86 “Sales Revenue” means: 
  

	 	(a)	the gross invoiced price of any Collaboration Product sold to a Third Party solely or jointly by the Parties, their respective Affiliates or sublicensees, [***] consistently
calculated in accordance with GAAP: 

  

	 	(i)	[***]; 

  

	 	(ii)	[***]; 

  

	 	(iii)	[***]; 

  

	 	(iv)	[***]; and 

  

	 	(v)	[***]. 

  

	 	(b)	Sale or transfer of a Collaboration Product by or for a Party to an Affiliate or Third Party Collaboration of that Party for resale by such Affiliate [***]. Sale or transfer
of a Collaboration Product by or for a Party to an Affiliate of that Party for end-use by such Affiliate [***]. 

  

	 	(c)	Net Sales [***]. 

  

	 	(d)	In the event that a Party, its Affiliate or sublicensee make any adjustments to such deductions after the associated Net Sales have been reported pursuant to this Agreement, the
adjustments shall be reported and reconciled in the next report and payment of any royalties due. 

  
 1.87 “Selling and Promotion Expenses” means, with respect to a Development and Commercialization Plan, the actual direct and indirect costs identifiable
to a Collaboration Product and necessary for the selling, promotion or support of a Collaboration Product, calculated in accordance with Collaboration Accounting Policy, consistently applied. Direct internal costs will include costs identifiable to
the Collaboration Product for the sales and/or promotion of a Collaboration Product including, but not limited to, salaries and related fringe benefits of the field-based sales organizations and professional services personnel and their related
transportation and travel expenses, training, sales meetings, call detail reporting, sales personnel monitoring and tracking, computer hardware and software (to the extent not capitalized as capital equipment), and expenses associated with selling
to the [***]. Indirect internal costs identifiable to the selling and promotion effort will include, but not be limited to, indirect labor, fringe benefits and office expenses, including occupancy. 
  
 1.88 “SGI ADC Technology” means Technology Controlled by SGI covering
chemical compositions and methods of attaching cytotoxins or cytostatic compounds to antibodies (or fragments thereof), including the compositions and methods of making and using cytotoxic or cytostatic compounds such as [***], as well as any
improvements or modifications to any of the foregoing. For clarity, SGI ADC Technology excludes SGI Collaboration Technology. 
  
 1.89 “SGI Collaboration Patent Rights” means Collaboration Patent Rights that: 
  

	 	(a)	claim inventions conceived solely or jointly by employees of either or both Parties in the course of performing under this Agreement, that are not Celera Collaboration Patent Rights
and that primarily relate to: (i) compositions of matter of [***]; (ii) methods of making [***]; and/or (iii) [***]; or 

  

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omitted portions. 

  

 10 

	 	(b)	claim inventions conceived solely by employees or agents of SGI in the course of performing under this Agreement and not relating to Designated Antigens or modifications thereof.

  
 1.90 “SGI Collaboration Technology” means
Collaboration Technology that is Derived: 
  

	 	(a)	solely or jointly by employees of either or both Parties in the course of performing under this Agreement, that is not Celera Collaboration Technology and that primarily relates to:
(i) [***]; and/or (iii) [***]; or  

  

	 	(b)	solely by employees or agents of SGI in the course of performing under this Agreement and not relating to Designated Antigens or modifications thereof. 

  
 SGI Collaboration Technology will be SGI Confidential Information.

  
 1.91 “SGI Exclusive Diagnostic Product” means any
Collaboration Product or Unilateral Product, or any Designated Antibody that [***]. 
  
 1.92 “SGI Independent Patent Rights” means Patent Rights Controlled by SGI as of the Effective Date and SGI’s Post-Signature Patent Rights [***]. 
  
 1.93 “SGI Independent Technology” means Material and Technology Controlled by SGI as of the Effective Date and SGI’s
Post-Signature Technology, [***]. SGI Independent Technology is SGI’s Confidential Information. 
  
 1.94 “SGI In-Licenses” means the following agreements, and all further amendments or modifications thereto: [***]. 
  
 1.95 “SGI Targets” means all protein targets that SGI provides to the independent Third Party for the Blind Review, which
targets SGI desires not to include in the Collaboration Program. 
  
 1.96
“SGI Validation” means a process of evaluating a Designated Antibody or ADC Product in accordance with the Research Plan. 
  
 1.97 “SGI Validation Data” means all data with respect to a Designated Antibody or an ADC Product developed by SGI in performance of a SGI Validation of
such Designated Antibody or ADC Product as set forth in the Research Plan. SGI Validation Data will be SGI’s Confidential Information. 
  
 1.98 “Technology” means conceptions, ideas, innovations, discoveries, inventions, processes, machines, formulae, equipment, improvements, enhancements,
modifications, technological developments, know-how, show-how, methods, techniques, systems, designs, production systems and plans, software, documentation, data, programs and information and works of authorship, whether or not patentable,
copyrightable, or susceptible to any other form of legal protection. 
  
 1.99
“Third Party” means an individual, corporation or other entity other than the Parties or their Affiliates. 
  

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 11 

 1.100 “Third Party Obligations” has the meaning defined in Section 3.12 hereof. 
  
 1.101 “Unilateral Product” means a product comprising or Derived from: [(a)
any Discontinued Product Candidate that a Party, pursuant to Section 3.10, elects to continue researching, developing and Commercializing after the other Party elects not to; or (b) any Collaboration Product for which a Party, pursuant to Section
8.4, elects to continue funding research, development and/or Commercialization activities after the other Party opts out]. 
  
 1.102 “Valid Claim” means: (a) any claim in any issued, active, unexpired patent which has not been withdrawn, cancelled, lapsed or disclaimed, or held
unpatentable, invalid or generally unenforceable by a non-appealed or nonappealable final decision by a court or other appropriate body of competent jurisdiction; [***]. 
  
 1.103 “Validated Celera Antigen Target” means any [***] determines, pursuant to a [***], as meeting the requirements set
forth in the Research Plan. 
  
 Article 2 Exclusivity

  
 2.1 Collaboration Exclusivity. Except as otherwise provided in this
Agreement, during the term of this Agreement, the Parties will work exclusively with each other with respect to each Designated Antigen in the Collaboration Field. 
  
 2.2 Other Party Activities. Except for the exclusive collaboration with respect to Designated Antigens described in Section 2.1,
nothing in this Agreement will restrict either Party or its respective Affiliates from any activities for any purpose. SGI will be free to Exploit SGI Independent Technology and SGI Independent Patent Rights, and Celera will be free to Exploit
Celera Independent Technology, including any Rejected Target and any Celera Antigen Target that is not a Designated Antigen, and Celera Independent Patent Rights for any purpose. Celera also may freely Exploit any Designated Antigen outside the
Collaboration Field for any indication for any purpose. 
  
 2.3 Diligence.
The Parties will diligently pursue their obligations as specified in this Agreement and in the Research Plan and any Development and Commercialization Plan(s) approved by the JSC. If (a) SGI has not commenced any [***], (b) a Designated
Antibody or an ADC Product has [***], or (c) the JSC has otherwise determined that [***], then, in each case, [***]. 
  
 2.4 Rejected Targets. A Rejected Target will not be subject to the Collaboration Program as of the date it becomes a Rejected Target, and Celera thereafter may
develop and Commercialize such Rejected Target for any purpose (both inside and outside of the Collaboration Field) according to the terms of this Agreement, directly or through Third Parties, without accounting to SGI. [***]. In addition, such
[***], provided, however, that (i) SGI notifies Celera of such [***]. All Celera Validation Data associated with a Rejected Target will remain Celera’s Confidential Information subject to Article 11. The Materials provided by Celera
relating specifically to any Rejected Target will be returned to Celera along with all associated Celera Validation Data and the IP Review Information. 
  
 2.5 Celera Exclusive Diagnostic Products. Subject to Section 2.6, Celera will have the sole and exclusive right to develop, Commercialize and otherwise Exploit any
Celera Exclusive Diagnostic Product. Celera will pay royalties to SGI as provided in Section 8.9 on Celera Exclusive Diagnostic Products. 
  

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 12 

 2.6 SGI Exclusive Diagnostic Products. If, at either [***] If Celera notifies SGI that it [***] in
accordance with the projected timelines for the relevant [***]. If Celera either notifies SGI that it [***], SGI may, by written notice to Celera, elect to [***] that binds specifically to the [***]. Subject to the
payment of royalties to Celera pursuant to Section 8.9, Celera will [***]. For clarity, Celera may develop and Commercialize a Diagnostic Product (other than an SGI Exclusive Diagnostic Product) that [***]. 
  
 Article 3 Collaboration Program Responsibilities 
  
 3.1 Research Plan. The Parties, on the Effective Date, have agreed on a Research Plan
and included the same in Exhibit 1.80 attached hereto. 
  
 3.2 Celera Antigen
Targets. At its discretion but in accordance with this Section 3.2, Celera will select Celera Antigen Targets for Celera Validation. Celera will present Validated Celera Antigen Targets for Blind Review as follows: (a) a [***], and (b) a [***].

  
 3.3 Blind Review. Promptly after the Effective Date, SGI will nominate
and the Parties will agree upon and jointly retain an independent, qualified expert to conduct a Blind Review. The Parties will enter into a three-party services agreement, substantially as provided in Exhibit 3.3 attached hereto, which, amongst
other things, will require the expert to retain in confidence the Validated Celera Antigen Targets and the SGI Targets disclosed to the expert. The cost of a Blind Review will be [***]. Celera shall provide SGI and the expert at least [***] prior
written notice of its intention to submit one or more Validated Celera Antigen Targets for Blind Review. SGI will submit by the end of such notice period an updated list of SGI Targets containing the information set forth in the three-party services
agreement. Upon the receipt of such updated list, the expert will promptly determine whether any specific Validated Celera Antigen Target is contained on such list of SGI Targets. The expert will [***]. The expert will [not disclose the amino acid
sequence or nucleotide sequence information] or any other information that would reveal the identity of any Validated Celera Antigen Target to SGI and will not disclose information regarding any SGI Target to Celera or any Celera Affiliate.

  
 3.4 Data Review. Within [***] of the expert’s disclosure of the
blinded identity of any Validated Celera Antigen Target pursuant to Section 3.3, Celera shall deliver to SGI the Coded Data for any Validated Celera Antigen Target that is not contained on the list of SGI Targets. Within [***] of the receipt of any
Coded Data, SGI will notify Celera whether Celera should deliver to SGI the Celera Validation Data for the corresponding target. Celera will have [***] from its receipt of an affirmative notice from SGI to deliver such Celera Validation Data to SGI
(the “Affirmative Notice”). Such Celera Validation Data shall contain the [***]. SGI shall complete the review of such Celera Validation Data within [***] of SGI’s receipt of the Coded Data (the “Review
Period”). 
  
 3.5 IP Review. Any Validated Celera Antigen Target
for which SGI has provided Celera an Affirmative Notice will be the subject of an IP Review. Within [***] of Celera’s receipt of the Affirmative Notice, Celera will disclose to designated SGI patent counsel and SGI patent search personnel [***]
(the “IP Review Information”). SGI shall complete an IP Review within the Review Period for the corresponding Validated Celera Antigen Target. 
  

3.6 Designated Antigen Selection. Prior to the end of the Review Period, SGI shall notify Celera in writing its selection or rejection of the Validated Celera
Antigen Target(s) under review. [Upon its selection by SGI, a Validated Celera Antigen Target becomes a Designated Antigen. Upon its rejection by SGI, a Validated Celera Antigen Target becomes a Rejected Target]. 
  

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 13 

 3.7 SGI Validation. SGI will Derive Designated Antibodies and ADC Products that bind specifically to each
Designated Antigen and will subject each such Designated Antibody and/or ADC Product to SGI Validation. For each Designated Antibody and/or ADC Product meeting the criteria in the Research Plan, SGI will disclose all SGI Validation Data to the JSC
within [***] of the selection of such Designated Antigen by SGI, subject to extension by the JSC. 
  
 3.8 Collaboration Products. From SGI Validation Data supplied by SGI, the JSC will determine which Designated Antibodies and/or ADC Products that reach a Preclinical Decision Point will be pursued as
Collaboration Products. 
  
 3.9 Research Term Extension. The Parties may
extend the Research Term after the [***] upon written agreement signed by both Parties not less than [***] before expiration of the [***] Research Term. 
  
 3.10 Discontinued Product Candidate. 
  

	 	(a)	Within [***] after a Designated Antibody or ADC Product becomes a Discontinued Product Candidate due to the Designated Antigen targeted by such Designated Antibody or ADC
Product becoming a Rejected Target under Section 1.79(b), the Parties will meet to decide which of the following will apply: 

  
 (i) if SGI wishes to continue research, development and Commercialization of the Discontinued Product Candidate, then Celera will grant to SGI [***] to
permit SGI, alone or with others, to Exploit, as a Unilateral Product, the Discontinued Product Candidate and its associated Rejected Target in the Collaboration Field; 
  
 (ii) if SGI does not wish to continue research, development and Commercialization of the Discontinued Product Candidate and
Celera does, then SGI will grant to Celera an [***] to permit Celera, alone or with others, to Exploit, as a Unilateral Product, the Discontinued Product Candidate and its associated Rejected Target for any purpose [***]; or 
  
 (iii) if neither Party wishes to continue research, development and
Commercialization of the Discontinued Product Candidate, then [***]. 
  

	 	(b)	Within [***] after a Designated Antibody or ADC Product becomes a Discontinued Product Candidate due to the Designated Antigen targeted by such Designated Antibody or ADC
Product becoming a Rejected Target under Section 1.79(c), the following will apply: 

  
 (i) if Celera notifies SGI in writing that it wishes to continue research, development and Commercialization of the Discontinued Product Candidate, then
SGI will grant to Celera an [***] to permit Celera, alone or with others, to Exploit, as a Unilateral Product, the Discontinued Product Candidate and its associated Rejected Target for any purpose [***]; or 
  
 (ii) if Celera notifies SGI in writing that it does not wish to continue
research, development and Commercialization of the Discontinued Product Candidate, [***]. 
  

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 14 

 3.11 Development and Commercialization Plan. The JSC will prepare a Development and Commercialization Plan for
each Collaboration Product which will be attached hereto as Exhibit 1.38. 
  
 3.12
Third Party Obligations. 
  

	 	(a)	Each Party will disclose to the JSC any and all monetary obligations to any Third Party (other than those obligations incurred pursuant to Section 4.6) payable by either Party, or
both Parties, for rights to develop or Commercialize any Designated Antibody, ADC Product, Collaboration Product or Unilateral Product (“Third Party Obligations”), promptly after becoming aware that a Third Party will be due payment
obligations with respect to such Collaboration Product. All Third Party Obligations due with respect to Collaboration Products shall be included as[***], as applicable. 

  

	 	(b)	A Party electing to proceed with a Unilateral Product pursuant to Section 3.10 will be solely responsible for all Third Party Obligations applicable thereto, subject to Section 8.7.

  
 3.13 Clinical Development. Subject to the terms of this
Agreement, the Designated Party will lead all preclinical and clinical development pursuant to the applicable Development and Commercialization Plan, and the other Party’s scientific personnel will participate as appropriate. The Designated
Party will keep the JSC fully informed of all activities conducted by the Designated Party with respect to any Collaboration Product. 
  
 3.14 Technical Assistance. Promptly following the designation of a Collaboration Product, each Party will provide to the other Party, pursuant to the applicable
Development and Commercialization Plan, and in accordance with the responsibilities of each Party, such Technology Controlled by such Party and licensed to the other Party under Sections 9.11 and 9.12 (as applicable), including Confidential
Information, as may be necessary to conduct the Development and Commercialization Plan. [***]. 
  
 3.15 Conduct of the Collaboration Program. During the term of the Agreement, each Party will conduct its obligations under the Collaboration Program in accordance with the relevant Research Plan and Development
and Commercialization Plan(s). Each Party will provide the personnel, Materials, equipment and other resources [***] to conduct its obligations under the Research Plan and Development and Commercialization Plan(s) for the Collaboration Program. Each
Party may employ Third Parties as contractors to perform its responsibilities under the Research Plan or, subject to the Parties’ written consent, a Development and Commercialization Plan; provided, however, if the Party proposes
to disclose the other Party’s Confidential Information to such Third Party, the Party must first obtain the other Party’s approval in accordance with Article 11 . Each Party will perform its obligations under the Collaboration Program
(whether itself, or with or through a contractor) in accordance with high scientific, clinical and professional standards, and in compliance in all material respects with the requirements of applicable laws, regulations, and any applicable current
good laboratory practices. 
  
 3.16 Records. Each Party will maintain
records, in sufficient detail and in a good scientific, professional and business-like manner, appropriate for patent, manufacturing, quality and Regulatory Approval purposes, which records must be complete and accurate and must fully and properly
reflect its work done, results achieved and costs and expenses incurred in the performance of each Development and Commercialization Plan. Non-financial records related to the performance of a Party’s obligations will be made available to the
other Party within [***] after any [***] written request by such other Party. Financial records related to Revenues received and Allowable Expenses or elements included in Profit or Loss (as applicable) incurred within the Collaboration Program
through the most recently completed 
  

	***	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. 

  

 15 

 calendar quarter will be made available pursuant to the provisions of Article 8. Each Party will maintain such records
and the information of the other Party contained therein in confidence in accordance with Article 11 . 
  
 3.17 Reports. Each Party will keep the other Party informed of the progress of its activities under each Development and Commercialization Plan. The JSC will determine the frequency and content of written
summary reports to be provided by each Party to the JSC describing the work done and results achieved in the performance of the Research Plan and each Development and Commercialization Plan. 
  
 3.18 Commercialization of Collaboration Products. Commercialization of a Collaboration
Product may not occur until the JSC agrees in writing that the Collaboration Product is ready for Commercialization. Furthermore, upon the commencement of the [***], whichever is occurs first, for any Collaboration Product, the Parties shall amend
the respective Development and Commercialization Plan for such Collaboration Product in good faith by adding a Commercialization addendum that shall: [***]. The JSC shall amend each Commercialization addendum to the respective Development and
Commercialization Plan at least [***], or more frequently if agreed to by the JSC. 
  
 3.19 Annual Budget. Within [***] (a) after the selection of each Collaboration Product by the JSC pursuant to Section 3.8 and (b) before the expiration of each [***] of such selection, the Parties shall jointly prepare and agree on a
budget that sets forth the estimated Profit (and the defined components of Profit in accordance with the Collaboration Accounting Policies) resulting from the research, development and/or Commercialization of such Collaboration Product for the [***]
following such selection [***], whichever is applicable (each, an “[***]”). 
  
 Article 4 Governance 
  
 4.1
Composition. The Joint Steering Committee (“JSC”) will comprise of [***] representatives of SGI and [***] representatives of Celera named on the Effective Date. Each Party will designate [***] of its representatives on the
JSC to serve [***]. The representatives of each Party should have expertise appropriate for the stage of research, development and Commercialization and the associated decision-making requirements. Each Party may change any of its representatives by
[***] advance written notice to the other Party and to the other representatives. The JSC may establish subcommittees to oversee particular projects or activities from time to time, and such subcommittees will be constituted as the JSC agrees.

  
 4.2 JSC Responsibilities. The JSC will be responsible for: 

 

	 	(a)	overseeing the implementation of the Research Plan; 

  

	 	(b)	considering the results of Celera Validation; 

  

	 	(c)	considering the results of SGI Validation and selecting Collaboration Products from Designated Antibodies and ADC Products; 

  

	 	(d)	allocating responsibility for Research Plan activities between the Parties, taking into consideration their relevant expertise and available resources; 

  

	 	(e)	monitoring and reviewing the progress of the Research Plan and the results thereof; 

  

	 	(f)	recommending to the Parties any modifications to the Research Plan; 

  

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	 	(g)	facilitating an effective exchange of information between the Parties regarding the Research Plan and any Development and Commercialization Plan(s); 

  

	 	(h)	determining whether a Designated Antigen will be a source of Collaboration Products; 

  

	 	(i)	approving the Annual Budget; 

  

	 	(j)	evaluating the impact of Third Party Obligations on the development and Commercialization of any Collaboration Product and rejecting or accepting such Collaboration Product in view
of such Third Party Obligations; 

  

	 	(k)	developing a [***]; 

  

	 	(l)	allocating responsibility for each [***]; 

  

	 	(m)	monitoring and reviewing the progress of the Development and Commercialization Plans and the results thereof; 

  

	 	(n)	recommending to the Parties any modifications to Development and Commercialization Plans; 

  

	 	(o)	approving the Collaboration Accounting Policies and any subsequent changes thereto; 

  

	 	(p)	approving termination of any Development and Commercialization Plan or abandonment of any Collaboration Product, and determining whether a particular Designated Antibody or ADC
Product will not be a Collaboration Product; 

  

	 	(q)	overseeing the Commercialization activities of the Collaboration Program; 

  

	 	(r)	recommending the [***]; 

  

	 	(s)	reviewing for approval or rejection a request by a Party to grant a license to a Third Party under any Collaboration Technology or Collaboration Patent Rights; and

  

	 	(t)	consistent with and subject to Article 9 and Article 10 of this Agreement, overseeing intellectual property matters arising under the Collaboration Program, including, without
limitation: (i) assigning responsibility for the preparation, filing, prosecution and maintenance of Joint Collaboration Patent Rights; (ii) reviewing all invention disclosures arising under or relating to the Collaboration Program for the purposes
of making patent application filing recommendations to the Parties and for determining proper inventorship and ownership of such inventions; (iii) establishing policies for the filing of foreign patent applications arising from the Collaboration
Program; (iv) creating and approving, as necessary, a budget for management of intellectual property related costs to be shared by the Parties pursuant to this Agreement; (v) determining which Collaboration Products should be marked with which
Patent Right numbers; and (vi) addressing any other intellectual property issues referred to the JSC pursuant to the terms of this Agreement. 

  
 4.3 Meetings. Unless otherwise mutually agreed to by the co-chairs, the JSC will meet [***] during the term of the Agreement, on such dates and at such times as
agreed to by the co-chairs of the JSC, alternating between sites of business operations of the Parties, or such other locations as the Parties 
  

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omitted portions. 

  

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 mutually agree. Upon the mutual agreement of the co-chairs, any such meeting may be conducted by telephone or
videoconference. At such meetings, the JSC will discuss the activities conducted under the Collaboration Program and the results thereof and any matters referred to it within the scope of its responsibilities as set forth in Section 4.2. Each Party
may permit such visitors to meetings of the JSC as the members thereof mutually agree, provided that such individuals are bound by confidentiality obligations and restrictions on use of information discussed at such meetings. Each Party will be
responsible for its own costs in connection with the meetings of the JSC. 
  
 4.4
Decisions. 
  

	 	(a)	The JSC will operate by [***] decision and will be deemed to have made a decision only following written agreement of the [***] pursuant to Section 4.5. Any dispute or
deadlock within the JSC will be finally resolved by ADR in the manner specified in Article 15 . To the extent [***] to any decision, the JSC may retain appropriate expert assistance, the costs of which will be shared equally by the Parties.

  

	 	(b)	At a meeting of the JSC, the JSC may designate, pursuant to Section 4.4(a), a Party or Third Party to serve as the “Designated Party” for the performance of particular
activities set forth in each Research Plan and/or the applicable Development and Commercialization Plan, or for the performance of specific functions provided in this Agreement or in the Research Plan or any Development and Commercialization Plan.
Each Party or Third Party shall remain the Designated Party for such function(s) until the completion of its respective activities or obligations, or until its status as the Designated Party is removed by the JSC pursuant to Section 4.4(a). The
Designated Party shall not have the authority to make any decisions or take any actions affecting the Parties [***], as applicable under this Agreement, unless expressly delegated by the JSC. If the JSC delegates a Third Party to act as the
Designated Party, then the Parties shall modify the terms of this Agreement accordingly. 

  
 4.5 Minutes. Within [***] following each JSC meeting, a representative to the JSC of the Party hosting such meeting (who was present at such meeting) will prepare and provide to each Party a draft copy of the
minutes of such meeting which will summarize the decisions of the JSC made in such meeting. Such minutes will become final and enforceable under this Agreement only after being edited (as necessary) and adopted by the written acceptance by the JSC
co-chairs. 
  
 4.6 In-License Decisions. In the event performance pursuant
to the Collaboration Program may require the Parties to obtain rights to intellectual property, Materials and/or Technology from a Third Party, [***]. 
  
 Article 5 Regulatory Approval 
  
 5.1 Regulatory Approvals. The Designated Party will be responsible for the preparation, filing, presentation and maintenance of all Regulatory Filings and for
obtaining Regulatory Approval for each Collaboration Product. Notwithstanding the foregoing, the Parties will consult with each other to develop a regulatory strategy for each Collaboration Product and the Designated Party will in good faith
consider recommendations of the other Party regarding regulatory strategy for such Collaboration Product. 
  
 5.2 Regulatory Communications. The Designated Party will provide the other Party with an opportunity, in advance of submission to a Regulatory Authority, to review and comment on all Regulatory Filings
(including written responses to any Regulatory Authority correspondence) regarding 
  

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 each Collaboration Product. The Designated Party will provide to the other Party copies of all material written
communications from the Designated Party to any applicable Regulatory Authorities (in advance of filing if possible), copies of all material written communications received by the Designated Party from such Regulatory Authorities promptly after
receipt, and any adverse finding or communication, oral or written, by such Regulatory Authority regarding each Collaboration Product. 
  
 5.3 Product Inserts and Labeling. The Designated Party will be responsible for the text and regulatory compliance of all package labels and product inserts used in
connection with the Commercialization of a Collaboration Product. The JSC will review and approve such labels and product inserts. 
  
 5.4 Inspection and Audit of Distributor. In the event a Regulatory Authority notifies the Designated Party of an impending audit and such audit involves any
Collaboration Product being distributed by or for it, the Designated Party will notify the other Party promptly after receipt of such notice. The other Party will have the right to participate in any such audit to the extent involving Collaboration
Products. The Designated Party also will notify the other Party in writing of the results of such inspection or audit promptly after such inspection or audit has occurred. The Designated Party will provide the other Party with copies of any
documentation of action resulting therefrom that relates to the Collaboration Product, and all correspondence relating thereto. 
  
 5.5 Reporting of Adverse Events. The Parties shall report, and take other actions in relation to, adverse events with respect to each Collaboration Product that
are reported or otherwise known to them in accordance with a reporting protocol that is established by the JSC for each Development and Commercialization Plan prior to the commencement of the first clinical trials of the applicable Collaboration
Product. 
  
 5.6 Recalls and Field Corrections. Prior to commencement of
the first clinical trials of any Collaboration Product, the JSC will agree on an equitable mechanism for handling recalls, field corrections and similar process with respect to the applicable Collaboration Product. 
  
 Article 6 Manufacturing 
  
 6.1 Manufacturer. The Designated Party(ies) for a particular Collaboration Product
will manufacture or have manufactured such Collaboration Product, unless otherwise agreed to in writing by the Parties. In accordance with the applicable Development and Commercialization Plan, the Designated Party(ies) will enter into clinical and
commercial supply agreements governing supply of such Collaboration Product for clinical trials and Commercialization purposes. The cost of manufacturing (or having manufactured) Collaboration Products will be included in [***] prior to the
completion of the [***] for such Collaboration Products and thereafter will be included in the [***]. 
  
 6.2 Manufacturing Standards. The Designated Party(ies) will manufacture (or have manufactured) each Collaboration Product in conformity with written specifications set forth in the applicable Development and
Commercialization Plan and in accordance with all applicable laws and regulations. 
  
 6.3 Manufacturing Records. Each Designated Party will provide the other Party with copies of, or access to, such Designated Party’s manufacturing information, including batch records, process flows, analytical performance data,
quality assurance documents and other documentation, requested by any Party regarding manufacture and quality control of Collaboration Products. Each Party will have a right of reference to the Designated Party’s drug master files for
Collaboration Products. The Party receiving such manufacturing information will treat all such information disclosed as the disclosing Party’s Confidential Information subject to the provisions of Article 11 . 
  

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omitted portions. 

  

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 6.4 Warranty. Each Designated Party will warrant to the other Party that all units of such Collaboration Product
supplied by such Designated Party under this Agreement for clinical purposes shall conform with the applicable specifications, be free from defects in material and workmanship and be manufactured in compliance with applicable laws and regulations.
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO ANY COLLABORATION PRODUCTS. EACH PARTY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS AND IMPLIED, INCLUDING, WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.. 
  
 Article 7 Sales and Marketing 
  
 7.1 Distributor. The Designated Party will be the worldwide distributor for all Collaboration Products. The Designated Party may designate an Affiliate of it or a
Third Party distributor to distribute Collaboration Products. 
  
 7.2 Selling
Price. [***]; provided, however, that the Designated Party will use [***] the [***]. 
  
 7.3 Marketing. Annually the Designated Party will prepare a marketing strategy for Collaboration Products. Prior to the introduction of each Collaboration Product, the Designated Party will provide the other
Party with a copy of a marketing plan for such Collaboration Product and with a [***] opportunity to comment on and approve the marketing plan before it becomes effective. The Designated Party will conduct the promotion, marketing and sales
activities for each Collaboration Product in accordance with the concepts outlined in the marketing strategy. [***]. 
  
 7.4 Diligence. The Designated Party will use [***] to promote, market, sell and support the sale of Collaboration Products, such [***]. If the Designated Party
wishes to discontinue promotion and sale of a Collaboration Product, the Designated Party will give the other Party [***] written notice thereof. The other Party, within such [***] may elect to distribute, directly or through a Third Party, such
Collaboration Product, in which event, the Designated Party will cooperate in a transition to the other Party designed to avoid adverse effects in the market for such Collaboration Product. If the other Party does not elect to distribute the
Collaboration Product, the Collaboration Product, at the end of the [***], will be considered an Opt Out Product Candidate subject to Section 8.4(b) hereof. 
  
 7.5 Co-Promotion. The Parties acknowledge and agree that a Collaboration Product may be co-promoted by the Parties. The terms and conditions of any such
co-promotion will be agreed to in writing by the Parties. 
  
 Article 8 Contributions, Cost Sharing and Consideration 
  
 8.1
Contributions. The Parties intend to share the risks, expenses and profit of the Collaboration Program. The Parties agree that the sum of the following contributions constitute an [equal sharing] by the Parties with respect to each Designated
Antibody and ADC Product prior to and including the Preclinical Decision Point therefor. 
  

	 	(a)	[***]. 

  

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 20 

	 	(b)	[***]. 

  

	 	(c)	[***]. 

  
 8.2 Profit or Loss Sharing. After the [***], as applicable, from the development and Commercialization of each Collaboration Product in accordance with Section 8.10 pursuant to the applicable Annual Budget and
Development and Commercialization Plan for each Collaboration Product. 
  
 8.3
Milestone Payments. For each Collaboration Product that is an ADC Product for which the following milestones are achieved, Celera will make a [***] to SGI in the amount indicated: 
  

	 	(a)	within [***] of the first [***], Celera will pay to SGI [***]; 

  

	 	(b)	within [***] of achieving for the [***] of [***], Celera will pay to SGI [***]; and 

  

	 	(c)	within [***] of achieving for the [***] of [***] Celera will pay to SGI [***]. 

  
 8.4 Opt Out Option. 
  

	 	(a)	Either Party may elect to discontinue funding development and Commercialization of each Collaboration Product [***] with respect to each such Collaboration Product (the
“Opt Out Option”): [***]; (ii) at least [***] prior to the JSC’s projected [***] ((i), (ii) and (iii) shall each be referred to as an [***]. For the purposes of Section 8.4(a)(iii), the completion of
a Phase IIA Clinical Trial occurs when all case reports are completed, all outstanding queries are cleared, the database for such Phase IIA Clinical Trial is closed and the draft clinical study report has been issued. Any election to discontinue
funding development and Commercialization of a Collaboration Product must be made in writing and delivered to the other Party within the applicable time period set forth in the preceding sentence. The Party exercising the Opt Out Option shall remain
responsible for [***]. Upon the exercise of the Opt Out Option by one Party, the Continuing Party will pay [***]. 

  

	 	(b)	If both Parties [***], then such Collaboration Product will be considered an [***] Within [***] then (i) [***]. 

  
 8.5 Antibody Royalties. A Continuing Party will pay royalties to the Discontinuing
Party for the Royalty Term at rates in accordance with the following table (“Antibody Royalties”) on Net Sales of any Unilateral Product sold by or for the Continuing Party or its Affiliates or sublicensees. Neither this provision
nor the following table applies to [***]. For the avoidance of doubt, royalties paid pursuant to this Section 8.4(a) will not be [***]. 
  
 [***] 
  
 8.6 Continuing Support. If neither Party exercises its Opt Out Option at a particular Opt Out Date, then both Parties will [***]. If neither Party exercises its Opt Out Option for a Collaboration Product during the [***], then
neither Party may make a subsequent Opt Out election for such Collaboration Product until completion of the [***] of such Collaboration Product, as applicable, and the Opting Out Party shall remain responsible for [***]. 
  

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 8.7 Royalty [***]. If a Discontinuing Party first elects to discontinue [***], the Continuing Party may [***],
provided: (a) the Continuing Party promptly advises the Discontinuing Party of the Continuing Party’s decision to [***]; (b) the Continuing Party enumerates the [***]; and (c) in no event will the [***]. For the avoidance of doubt, any
sublicense granted by an Opt Out Party shall be deemed a [***] for purposes of this Section 8.7. 
  
 8.8 License Revenue for Unilateral Products. In addition to [***]], the Continuing Party will [***] received by the Continuing Party from any licensee or sublicensee (as applicable) of any Unilateral Product:

  
 [***] 
  
 8.9 [***]. 
  

	 	(a)	Celera will pay to SGI for the Royalty Term [***]. Celera will pay to SGI for the Royalty Term [***]. For clarity, if Celera is the Continuing Party for a Unilateral Product, Celera
has no obligation to [***]. 

  

	 	(b)	SGI will pay to Celera for the Royalty Term [***]. 

  

	 	(c)	Celera is not obligated to [***]. 

  
 8.10 Cost and Revenue Statements. Within [***] after the end of each calendar quarter in which Profit or Loss is recognized for any Collaboration Product, each
Party shall provide the other Party with a statement describing its Profit or Loss for such Collaboration Product for such calendar quarter on a country-by-country basis and in United States dollars. Each such statement shall set forth in
[***]detail all Profit or Loss (as applicable) and the defined components of Profit or Loss generated for each such Collaboration Product by the respective Party, it Affiliates and permitted licensees. Notwithstanding anything to the contrary, the
actual costs and expenses set forth in any particular statement for any Collaboration Product may not exceed, or be projected to exceed, the costs and expenses allocated to such Collaboration Product in the applicable Annual Budget by more than
[***]. Within [***] after the end of each calendar quarter, the Parties shall pay each other any reconciling amounts so that each Party shall share or bear [***], as applicable, for each Collaboration Product during each such calendar quarter.

  
 8.11 Royalty and License Revenue Statements. With respect to any
Royalty Product subject to royalty payments pursuant to Section 8.4(a) or 8.9, or any Unilateral Product subject to payments pursuant to Section 8.8, the paying Party will provide the receiving Party with a written report within [***] after end of
each calendar quarter during the term of this Agreement that provides, in [***] specific detail, stated in United States dollars, (a) the Net Sales of such Royalty Product during the preceding calendar quarter and a detailed calculation of the
royalty due, and (b) the License Revenue of such Unilateral Product during the preceding calendar quarter and a detailed calculation of the percentage due. Each such statement will be accompanied by payment of any royalty and/or percentage of
License Revenue due. 
  
 8.12 Modifying Terms. Upon the request of either
Party, the JSC will consider the definitions of Allowable Expenses, Revenue, Profit and Loss, and the components thereof, and, if approved by the JSC, the JSC will modify the definitions and provide each Party with written notice of the modified
definitions and the date on which such modified definitions will become effective, provided that any such modifications must result in the effect that each Party [***], as applicable, of Collaboration Products. 
  

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 8.13 Payment Terms. 
  

	 	(a)	All payments hereunder will be in United States dollars in immediately available funds and will be made by wire transfer from a United States bank located in the United States to
such bank account as payee may designate in writing from time to time. 

  

	 	(b)	All amounts accruing in a currency other than United States dollars will be converted to United States dollars using the buy conversion rate as reported in the [***] for which
payments are being made. The conversation calculations will be provided in any statement reporting converted amounts. 

  

	 	(c)	Any payments or portions thereof due hereunder which are not paid on the date such payments are due under this Agreement will bear interest at a rate equal to the lesser of (i) the
prime rate [***]. 

  

	 	(d)	If at any time legal restrictions prevent the prompt remittance of any monies owed with respect to Revenues or Net Sales in any jurisdiction, the remitting Party will notify the
receiving Party and make such payments by depositing the amount thereof in local currency in a bank account or other depository in such country in the name of the receiving Party or its designee, and the remitting Party will have no further
obligations under this Agreement with respect thereto. 

  
 8.14
Record Keeping. In accordance with GAAP consistently applied, each Party and its Affiliates will maintain, and will use [***] to cause its permitted sublicensees, contractors and agents to maintain, books of account and accurate records
relating to Net Sales, Revenues, Allowable Expenses, Loss and Profit with respect to the Collaboration Program and each Collaboration Product and Royalty Product and all amounts payable or receivable under this Agreement, in sufficient detail to
permit the other Party to confirm the correctness of such items. All books of account and records will be maintained for a period not less than relevant time permitted for audit of such accounts and records pursuant to Section 8.15 and for any
applicable tax period. 
  
 8.15 Audits. 
  

	 	(a)	Upon the written request of a Party (the “Requesting Party”) and not more than [***], the other Party (the “Responding Party”) will permit an
independent certified public accounting firm of nationally recognized standing, selected by the Requesting Party and [***] to the Responding Party, at the Requesting Party’s expense, to have access during normal business hours to the records of
the Responding Party as may be[***] to verify (i) compliance with the terms of this Agreement and all associated definitions in Article 1, and (ii) the accuracy of the reports provided under this Agreement, for any year ending not more than
[***] prior to the date of such request. [***]. All other information will be Confidential Information of the Responding Party and may not be shared with the Requesting Party. 

  

	 	(b)	If such accounting firm concludes that additional amounts were owed during the audited period, the Party owing such amounts will pay such additional amounts within [***] of the date
the Requesting Party delivers to the Responding Party such accounting firm’s written report so concluding. The fees charged by such accounting firm will be paid by the Requesting Party; provided, however, (i) if the audit discloses that the
actual payments due to the Requesting Party are more than [***] of the amounts paid to such Requesting Party for such period, then the Responding Party will pay the [***] fees and expenses charged by such accounting firm, but the total of such fees
and expenses payable by the Responding Party will not be more than [***]. 

  

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 8.16 Tax Matters. Except as otherwise provided below, all amounts due from any paying Party to any receiving Party
under this Agreement are gross amounts. The paying Party shall be entitled to deduct the amount of any withholding taxes payable or required to be withheld by it, its Affiliates, licensees, or sublicensees (as applicable) to the extent such paying
Party, its Affiliates, licensees, or sublicensees (as applicable) actually pay such withheld amounts to the appropriate governmental authority on behalf of the receiving Party. The paying Party shall use [***] to minimize any such taxes, levies or
charges required to be withheld on behalf of the receiving Party. The paying Party promptly shall deliver to the receiving Party 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, and shall cooperate with the receiving Party in seeking any related tax credits that may be available to the receiving Party with respect thereto. 
  
 Article 9 Patent Rights and Technology Ownership and License

  
 9.1 SGI Independent Rights. Nothing in this Agreement is intended
to change SGI’s Control of SGI Independent Technology or SGI Independent Patent Rights. Subject to Sections 2.1 and 3.10, SGI and its Affiliates may Exploit all SGI Independent Technology and SGI Independent Patent Rights in any field and
territory without restriction. 
  
 9.2 Celera Independent Rights. Nothing
in this Agreement is intended to change Celera’s Control of Celera Independent Technology or Celera Independent Patent Rights. Subject to Sections 2.1 and 3.10, Celera and its Affiliates may Exploit all Celera Independent Technology and Celera
Independent Patent Rights in any field and territory without restriction. 
  
 9.3
SGI Collaboration Technology and Collaboration Patent Rights. SGI will own all right, title and interest in and to all SGI Collaboration Technology and all SGI Collaboration Patent Rights and, subject to the terms and conditions of this
Agreement, may Exploit all SGI Collaboration Technology and SGI Collaboration Patent Rights inside and outside of the Collaboration Field. 
  
 9.4 Celera Collaboration Technology and Collaboration Patent Rights. Celera will own all right, title and interest in and to all Celera Collaboration Technology
and all Celera Collaboration Patent Rights and, subject to the terms and conditions of this Agreement, may Exploit all Celera Collaboration Technology and Celera Collaboration Patent Rights inside and outside of the Collaboration Field. 

 
 9.5 Joint Collaboration Technology and Joint Collaboration Patent Rights. Celera
and SGI will jointly own all right, title and interest in and to all Joint Collaboration Patent Rights and Joint Collaboration Technology and, subject to the terms and conditions of this Agreement, during the term of this Agreement, neither Party
nor its Affiliates will have the right to Exploit any Joint Collaboration Patent Rights and Joint Collaboration Technology without accounting to, or consent from, the other Party. 
  
 9.6 Employee Assignment and Disclosure. To the extent permissible under applicable law, each Party will cause each employee and
contractor conducting work on such Party’s behalf under this Agreement to be subject to a contract that (a) compels prompt disclosure to the Party of all Technology Derived by such employee or contractor during any performance under the
Collaboration Program and (b) automatically assigns to the Party all right, title and interest in and to all such Technology and all related Patent Rights. Each Party will require each employee and contractor conducting work on such Party’s
behalf under this Agreement to maintain records in sufficient detail and in a good scientific manner appropriate for patent purposes to properly reflect all work done. 
  

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 9.7 Assignment of Collaboration Patent Rights. Each Party shall and hereby does assign to the other Party all
right, title and interest in Collaboration Technology and Collaboration Patent Rights necessary to effect the express intent of the ownership provisions described in Sections 9.3, 9.4, and 9.5. Additionally, each Party will execute any documents,
and take any other actions, necessary for the other Party to obtain such ownership and apply for, secure and maintain protection of its rights in such Collaboration Technology and Collaboration Patent Rights. Other than the rights assigned pursuant
to this Section 9.7, ownership of all inventions in Collaboration Technology will be determined in accordance with the laws of inventorship of the United States and the employment of the inventors at the time of conception. 
  
 9.8 Transfer of Celera Technology. Celera will use [***] to make available to SGI all
Celera Independent Technology and Celera Collaboration Technology that [***] for SGI to perform its obligations under this Agreement or is required to be provided pursuant to the Research Plan and/or any Development and Commercialization Plan.
Without the prior written consent of Celera, neither SGI nor its Affiliates may use any Celera Independent Technology or Celera Collaboration Technology that is Celera Confidential Information for any purpose not expressly authorized by the terms of
this Agreement. 
  
 9.9 Transfer of SGI Technology. SGI will use [***] to
make available to Celera all SGI Independent Technology and SGI Collaboration Technology that [***] for Celera to perform its obligations under this Agreement or is required to be provided pursuant to the Research Plan and/or any Development and
Commercialization Plan. Without the prior written consent of SGI, neither Celera nor its Affiliates may use any SGI Independent Technology or SGI Collaboration Technology that is SGI Confidential Information for any purpose not expressly authorized
by the terms of this Agreement. 
  
 9.10 No Title Transfer. The transfer to
a Party of any physical item that embodies any Independent Technology or Collaboration Technology owned by the transferring Party will not be, and will not be construed to be: (a) a sale, lease, offer to sell or lease or other transfer of title or
ownership to the receiving Party of such Independent Technology or Collaboration Technology; or (b) a license to the receiving Party (except as expressly provided in this Agreement) under such Independent Technology or Collaboration Technology.

  
 9.11 Celera License Grant to SGI in the Collaboration Field. Subject to
the terms and conditions of this Agreement, 
  

	 	(a)	Celera hereby grants to SGI and its Affiliates a [***]: (i) to perform its obligations as expressly set forth in this Agreement; and (ii) to make, have made, use, have used, sell,
have sold, offer for sale, import and have imported Collaboration Products in the Collaboration Field during the term of this Agreement. 

  

	 	(b)	The licenses granted in Section 9.11(a) will be [***]. 

  
 9.12 SGI License Grant to Celera in the Collaboration Field. Subject to the terms and conditions of this Agreement, 
  

	 	(a)	SGI hereby grants to Celera and its Affiliates a [***]: (i) to perform its obligations as expressly set forth in this Agreement; and (ii) to make, have made, use, have used, sell,
have sold, offer for sale, import and have imported Collaboration Products in the Collaboration Field during the term of this Agreement. 

  

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	 	(b)	The license granted in Section 9.12(a) will be [***]. 

  
 9.13 License For Unilateral Products. Subject to the terms and conditions of this Agreement, each Discontinuing Party grants to the Continuing Party an [***]
solely as set forth below in this Section 9.13, subject to the terms and conditions of this Agreement, [***] consistent with the terms of this Agreement. For purposes of clarification and notwithstanding anything to the contrary set forth herein,
Celera shall [***]. Each Party may grant sublicenses of the licenses granted in this Section 9.13 [***]. 
  
 9.14 SGI Sublicenses. As of the Effective Date, Celera shall [***], provided, however, that such additional terms will apply only with respect to the specific Unilateral Product or Collaboration Product
and will be in effect only from [***]. [***]. None of the provisions set forth in Exhibit 9.14 apply to this Agreement except in the limited circumstances set forth above. 
  
 Article 10 Patent Rights Maintenance and Enforcement 
  
 10.1 Independent Patent Rights. Each Party will have the exclusive right, but not the obligation, [***], to prepare, file, prosecute,
maintain and abandon all of its Independent Patent Rights. Expenses associated with preparation, filing, prosecution and maintenance of Independent Patent Rights will not be [***]. 
  
 10.2 Collaboration Patent Rights. Each Party will have the exclusive right, but not the obligation, [***], to prepare, file,
prosecute and maintain all of its Collaboration Patent Rights. All [***] costs and fees incurred by a Party in connection with preparation, filing, prosecution and maintenance of Collaboration Patent Rights in a [***]. To the extent any
Collaboration Patent Right is or becomes [***] to performance by either Party of any aspect of the Collaboration Program or [***] to manufacture or Commercialization of a Collaboration Product or Royalty Product, the Party owning such Collaboration
Patent Right will exercise [***] consistent with good faith business practices to maintain Control of such Collaboration Patent Rights. 
  

	 	(a)	To the extent a Party elects not to file for a Collaboration Patent Right in a Major Market Country or elects to abandon any Collaboration Patent Right already filed in any country,
that Party will notify the other Party in writing not less than [***] prior to the date such election is irrevocable without additional cost, and will offer the other Party the opportunity to assume, [***], the right to file for, prosecute
and maintain such Collaboration Patent Right in such country. If the other Party accepts the offer by written notice to the first Party, the first Party will assign such Collaboration Patent Right to the other Party and will [***] assist the other
Party in assuming the filing, prosecution and maintenance of such Collaboration Patent Right in such country. Such Collaboration Patent Right thereafter will be the other Party’s Independent Patent Rights. 

  

	 	(b)	With respect to each United States patent application that is a Collaboration Patent Right, not less than [***] before filing any application for corresponding patent
protection in foreign countries, the Party owning the Collaboration Patent Right will give to JSC a copy of the priority application and written notice of the foreign countries selected for filing. The JSC, in writing within [***] after such
notice, may reject any selected country [***] and may request filing of applications in additional foreign countries. The Party will file in such additional countries and may file in the rejected countries. All [***] costs associated with filing,
prosecution and maintenance of applications in [***]. 

  

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	 	(c)	Pursuant to schedules determined by the JSC, each Party will provide to the other Party a written report of the status of each pending and issued Collaboration Patent Right.

  
 10.3 Joint Collaboration Patent Rights. 
  

	 	(a)	The JSC will select mutually-acceptable outside counsel to conduct the preparation, filing, prosecution and maintenance of each Joint Collaboration Patent Right under the joint
control of both Parties. The outside counsel will prepare, file, prosecute and maintain all Joint Collaboration Patent Rights in each of the Major Market Countries and such other countries as the JSC approves, [***]. 

  

	 	(b)	If a Party elects not to share the cost of a Joint Collaboration Patent Right in any country (other than a Major Market Country or such other countries as the JSC approves) or
elects to discontinue sharing expenses for any Joint Collaboration Patent Right already filed in any country, such Party will notify the other Party in writing of such election and will offer the other Party the opportunity to assume, at the other
[***], the right to file for, prosecute and maintain such Joint Collaboration Patent Right in such country. If the other Party accepts the offer by written notice to the one Party within [***] after the notice, [***] and will [***] assist the other
Party in assuming the filing, prosecution and maintenance of such Joint Collaboration Patent Right in such country. [***]. 

  

	 	(c)	With respect to filing, prosecution and maintenance of each Joint Collaboration Patent Right, the outside counsel will provide to each Party: (i) a copy of the patent application
sufficiently prior to filing to permit each Party [***] opportunity to review and make [***] comments thereon; (ii) a copy of the patent application promptly after such filing; (iii) copies of all substantive communications received from patent
office(s) with respect to such filings; and (iv) copies of all substantive communications to be sent to the patent office(s) with respect to such filings sufficiently before a due date to permit each Party to review and make [***] comments thereon.

  

	 	(d)	Each Party, when requested by the outside counsel, will use [***] to assist the counsel in preparing, filing or maintaining the patent applications and patents within the Joint
Collaboration Patent Rights. [***]. 

  
 10.4 Collaboration
Patent Rights Enforcement Outside Collaboration Field. A Party will have the exclusive right, but not the obligation, [***], to enforce outside the Collaboration Field all Collaboration Patent Rights it Controls. Any recovery realized as a
result of such suit, claim or action or related settlement will first be applied to [***].  
  
 10.5 Collaboration Patent Rights Enforcement in the Collaboration Field. Each Party will promptly notify the other Party in writing if it learns of any actual, alleged or threatened infringement of any
Collaboration Patent Right by a Third Party in the Collaboration Field. The Party Controlling the affected Collaboration Patent Right will have the first right, but not the obligation, [***], to bring suit (or take other appropriate legal action)
against any actual, alleged or threatened infringement of the Collaboration Patent Right by a Third Party in the Collaboration Field, including the defense and settlement, to the extent such infringement is in the Collaboration Field. If the
Controlling Party does not initiate an infringement action or otherwise take affirmative measures to abate any such actual, alleged or threatened Third Party infringement of the Collaboration Patent Right within [***] of the later of: (a) receiving
notification from the other Party under this Section 10.5 of such infringement; (b) sending notice to the 
  

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 other Party under this Section 10.5 of such infringement; or (c) receiving a written request from the other Party to take
action with respect to such infringement, then the other Party will have the right, but not the obligation, [***], to bring suit (or take other appropriate legal action) against any such actual, alleged or threatened infringement of the
Collaboration Patent Right by a Third Party in the Collaboration Field, including the defense and settlement thereof. In the event either Party brings an infringement action in accordance with this Section 10.5, such Party will notify the other
Party in writing [***] prior to filing such action and the other Party will provide [***] assistance and authority to file and bring the action, including, if required to bring such action, being joined as a party plaintiff; provided, however, that
neither Party will be required to transfer any right, title or interest in or to any of its Collaboration Patent Rights to the other Party or a Third Party to confer standing on a Party hereunder. In addition, if either Party brings an infringement
action hereunder, the other Party will have the right to be represented separately in such action by counsel of its own choice, [***]. Any recovery realized as a result of such suit, claim or action or related settlement will [***]. 
  
 10.6 Joint Collaboration Patent Rights Enforcement. 
  

	 	(a)	Each Party, [***], will have the right, but not the obligation, to initiate an action to enforce a Joint Collaboration Patent Right against accused infringer(s) outside the
Collaboration Field. The Party initiating the action will notify the other Party and identify the accused infringer(s). The other Party will cooperate in any such action by [***]. No Party will settle the action without the other Party’s prior
written consent, which consent [***], if the terms of settlement would deprive the other Party of its rights in the asserted Joint Collaboration Patent Rights. Any recovery realized as a result of such suit, claim or action or related settlement
will [***].  

  

	 	(b)	A Party wishing to enforce a Joint Collaboration Patent Right against infringement in the Collaboration Field will notify the JSC in writing and identify the accused infringer(s).
If the [***]. In either case, the other Party will cooperate in any such action by [***]. Neither Party will settle the action without the other Party’s prior written consent, which consent [***], if the terms of settlement would deprive the
other Party of its rights in the asserted Joint Collaboration Patent Rights. 

  
 10.7 Defense of Third Party Infringement Actions. Each Party will promptly notify the other Party in the event of a claim or suit by a Third Party alleging infringement of a Third Party patent based on
manufacture, use, sale, offer for sale or import of a Collaboration Product by a Party or customer. Promptly after such notice, the Parties will confer. The Party against whom the action is filed will defend and control the defense, and the other
Party will cooperate with the defending Party. All [***] costs associated with the defense of the action will be [***]. Any settlement that requires payment to the Third Party for the prospective right to [***]. 
  
 Article 11 Confidentiality 
  
 11.1 Confidentiality. Subject to this Article 11 each Party will: (a) maintain in
confidence the Confidential Information of the other Party; (b) have the right to use the Confidential Information of the other Party solely for the purpose of performing its obligations and exercising its rights under this Agreement; (c) not use or
grant to others the use of the Confidential Information of the other Party except as expressly permitted hereby; and (d) not disclose the Confidential Information of the other Party except on a need-to-know basis to such Party’s directors,
officers, employees, agents, consultants and contractors, to the extent such disclosure is [***] in connection with such Party’s activities as expressly authorized by this Agreement. Each Party will ensure that any of its directors, officers,
employees, 
  

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 agents, consultants and contractors having access to the other Party’s Confidential Information is under a
contractual obligation to the Party to hold in confidence and not use such Confidential Information, except as permitted under this Agreement. To the extent that disclosure to any Third Party is authorized by this Agreement, prior to disclosure, a
Party will obtain written agreement of such person to hold in confidence and not disclose, use or grant the use of the Confidential Information of the other Party except as expressly permitted under this Agreement. Each Party will notify the other
Party promptly upon discovery of any unauthorized use or disclosure of the other Party’s Confidential Information. In performance of its obligation under this Section 11.1, each Party will exercise the same degree of care as it exercises with
respect to its own proprietary information, but in no event less than ordinary care. 
  
 11.2 Terms of Agreement. No Party may disclose any terms or conditions of this Agreement to any Third Party without the prior consent of the other Party; provided, however, that a Party may disclose, under terms of
confidentiality equivalent to those in this Article 11 the terms or conditions of this Agreement: (a) on a need-to-know basis to its legal and financial advisors to the extent such disclosure is [***]; and (b) to a Third Party in connection with
either (i) a merger, consolidation or similar transaction by such Party; (ii) the sale or other transfer of all or substantially all of such Party’s assets to which this Agreement pertains; or (iii) a financing transaction by such Party.

  
 11.3 Permitted Disclosures. The confidentiality obligations under this
Article 11 will not apply to the extent that a Party is required to disclose information (a) by applicable law, regulation or order of a governmental agency or a court of competent jurisdiction, or (b) pursuant to the rules and regulations of any
exchange or market on which a Party’s securities are traded or listed; provided, however, that: (i) in the case of any such disclosure being required under legal, regulatory or judicial process, such Party will: (A) provide
written notice thereof to the other Party; (B) consult with the other Party with respect to such disclosure and use all [***] to provide the other Party with sufficient opportunity to object to any such disclosure or to request confidential
treatment thereof; and (C) disclose only that portion of Confidential Information or other information disclosed of which is restricted hereunder that it determines (based on advice of its legal counsel) is legally required to be disclosed, and will
exercise its [***] to obtain reliable assurance that confidential treatment required hereby will be accorded such information; and (ii) in the case any Party determines (based on advice of its legal counsel) that it is required to make a disclosure
permitted under this Section 11.3, other than as a result of legal, regulatory or judicial process, such Party will use all [***] to provide the other Party with sufficient opportunity to object to any such disclosure or request confidential
treatment thereof. 
  
 11.4 Disclosure to Investors and Rating Agencies.
Notwithstanding Sections 11.2 and 11.3, each Party may disclose the financial results of the Collaboration Program to its current and potential investors (including securities analysts) and rating agencies. The scope of such disclosure will be of
the type ordinarily disclosed by corporations in the healthcare field to investors and rating agencies. The Parties will review and provide prior written consent of the content of such disclosures, which consent [***]. 
  
 11.5 Term of Obligations. The obligations of Sections 11.1 and 11.3 will expire [***]
after termination or expiration of this Agreement. Within such [***] period, either Party may notify, in writing, the other Party of Confidential Information considered to be a trade secret of the notifying Party, in which event, the other Party
will comply with the terms of Sections 11.1 and 11.3 with respect to such identified trade secret so long as it retains the characteristics of Confidential Information. 
  
 11.6 Publication. No Party may publish any article, present any poster or make any speech containing any Confidential Information
belonging to the other Party or containing any Collaboration Technology without the prior written consent of the other Party. Each Party will provide to the other Party a true copy of any such article, poster or speech text, and any illustrations or
graphs associated therewith, not less than [***] before submitting the same to any publisher, editor or committee or before presenting the same to any group and will comply with the reviewing Party’s request [***]. 
  

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 Article 12 Representations and Warranties 
  
 12.1 Representations. Each Party represents and warrants to the other Party as of the
Effective Date as follows: 
  

	 	(a)	except as otherwise identified in writing and delivered to the other Party prior to the Effective Date, the execution, delivery to the other Party and performance by it of this
Agreement and its compliance with the terms and provisions of this Agreement do not and will not conflict, in any material respect, with, or result in a material breach of: (i) any other contractual obligations of such Party; (ii) the provisions of
its charter, operating documents or bylaws; or (iii) any order, writ, injunction or decree of any court or governmental authority entered against it or by which it or any of its property is bound except where such breach or conflict would not
materially impact the Party’s ability to meet its obligations hereunder; 

  

	 	(b)	this Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance with its terms except as (i) enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights and (ii) equitable principles of general applicability; 

  

	 	(c)	such Party is a corporation duly organized, validly existing and in good standing under the laws of the state or other jurisdiction of incorporation or formation and has full
corporate power and authority to enter into this Agreement and to carry out the provisions hereof except where failure to be in good standing would not materially impact the Party’s ability to meet its obligations hereunder;

  

	 	(d)	such Party is duly authorized, by all requisite corporate action, to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by such Party
does not require any shareholder action or approval, and the person executing this Agreement on behalf of such Party is duly authorized to do so by all requisite corporate action; and 

  

	 	(e)	no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is
required on the part of such Party in connection with the valid execution, delivery and performance of this Agreement, except for any filings under any applicable securities, trade, or competition laws and except where the failure to obtain any of
the foregoing would not have a material adverse impact on the ability of such Party to meet its obligations hereunder. 

  
 12.2 Represented by Counsel. Each Party represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has
participated in the drafting hereof. In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption will apply against the Party which drafted such terms and provisions. 
  
 12.3 Debarment. Each Party represents and warrants to the other Party that neither it,
nor any of its Affiliates, has been debarred or is subject to debarment. Each Party covenants to the other Party that 
  

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 neither such Party nor any of its Affiliates will use in any capacity, in connection with the services to be performed
under this Agreement, any Party who has been debarred pursuant to Section 306 of the Federal Food, Drug, and Cosmetic Act, as amended, or who is the subject of a conviction described in such section. Each Party will inform the other Party in writing
immediately if it or any Third Party who is performing services under this Agreement is debarred or is the subject of a conviction described in Section 306, or if any action, suit, claim, investigation or legal or administrative proceeding is
pending or, to such Party’s knowledge, is threatened, relating to the debarment or conviction of such Party or any Third Party performing services hereunder. 
  
 12.4 Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS [***], NEITHER PARTY MAKES ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO ANY COLLABORATION PRODUCTS, COLLABORATION TECHNOLOGY, COLLABORATION PATENT RIGHTS, OR ANY OF ITS
INDEPENDENT TECHNOLOGY OR INDEPENDENT PATENT RIGHTS. ADDITIONALLY, EXCEPT AS EXPRESSLY SET FORTH IN [***], EACH PARTY EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT THE MANUFACTURE, USE, SALE, OFFER FOR SALE,
IMPORT, COPYING OR DISTRIBUTION OF ANY COLLABORATION PRODUCT OR OTHER PRODUCT OR METHOD SUBJECT TO THIS AGREEMENT WILL NOT [***]. EXCEPT AS EXPRESSLY SET FORTH IN [***], ALL TECHNOLOGY PROVIDED BY ONE PARTY TO THE OTHER PARTY PURSUANT TO THIS
AGREEMENT IS PROVIDED “AS IS.” 
  
 Article 13
Indemnification 
  
 13.1 Collaboration Products. 
  

	 	(a)	Each Party hereby agrees to indemnify, defend, and hold harmless the other Party, its Affiliates and their respective directors, officers, employees and agents (collectively, the
“Indemnitees”) from and against any and all losses, liabilities, damages and expenses, including [***] attorneys’ fees and costs (collectively, “Liabilities”), incurred as a result of any claims, demands,
actions or other proceedings by any Third Party (collectively, “Claims”) relating to [***]. For purposes of this Article 13, the term “Indemnitee” may refer to either or both the Celera Indemnitees and the SGI
Indemnitees, as the context may indicate. 

  

	 	(b)	Except for those Claims subject to Section 13.1(a), the Parties shall [***]. 

  

	 	(c)	If either Party receives notice of a Claim with respect to any Collaboration Product, such Party shall inform the other Party in writing as soon as [***] practicable. The Parties
shall confer through the JSC how to respond to the Claim and how to handle the Claim in an efficient manner. In the absence of such an agreement, each Party shall have the right to take such action as it deems appropriate, subject to Section 13.3.

  

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 13.2 Unilateral Products. 
  

	 	(a)	By SGI. For each Unilateral Product that is researched, developed and/or Commercialized by SGI in accordance with this Agreement, SGI will indemnify, defend, and hold
harmless Celera, its Affiliates and their respective directors, officers, employees and agents (“Celera Indemnitees”) from and against all Liabilities incurred as a result of any Claims relating to such Unilateral Product, but only
to the extent such Claims result from [***]. The obligation to indemnify pursuant to Section 13.2(a)(i) will [***] of this Agreement. The indemnity obligations pursuant to Sections 13.2(a)(ii) through (iv) will [***].

  

	 	(b)	By Celera. For each Unilateral Product that is researched, developed and/or Commercialized by Celera in accordance with this Agreement, Celera will indemnify, defend, and
hold harmless SGI, its Affiliates and their respective directors, officers, employees and agents (“SGI Indemnitees”) from and against all Liabilities incurred as a result of any Claims relating to such Unilateral Product, but only
to the extent such Claims result from [***]. The obligation to indemnify pursuant to Section 13.2(b)(i) will [***] of this Agreement. The indemnity obligations pursuant to Section 13.2(b)(ii) through (iv) will [***]. 

 
 13.3 Procedure. If a Party (the “Indemnified Party”) intends to
claim indemnification under this Article 13 it will promptly notify the other Party (the “Indemnitor”) in writing of any claim, demand, action or other proceeding for which the Indemnified Party intends to claim such
indemnification, and the Indemnitor may participate in, and, to the extent the Indemnitor so desires, assume the defense of such claim, demand, action or proceeding with counsel mutually satisfactory to the Parties; provided, however, that an
Indemnified Party will have the right to retain its own counsel, [***]. The obligations of this Article 13 will not apply to amounts paid in settlement of any claim, demand, action or other proceeding if such settlement is effected without the
consent of the Indemnitor, which consent [***]. The failure to deliver written notice to the Indemnitor within a [***] time after the commencement of any such action, if prejudicial to its ability to defend such action, will relieve the Indemnitor
of any obligation to the Indemnitee under this Article 13 . The Indemnified Party will [***] cooperate with the Indemnitor and its legal representatives in the investigation of any claim, demand, action or other proceeding covered by this Article 13
.. 
  
 13.4 General Insurance Requirements. During the term of this
Agreement and for so long as Collaboration Products are being developed, sold or used, each Party will maintain comprehensive general liability, property damage, and product liability insurance, through insurance carriers with an [***]. Such
insurance coverage will be maintained with policy limits [***]. Each Party will, at the [***] request of the other Party, provide the other Party with evidence of such insurance coverage. Notwithstanding the foregoing, and only upon written notice
to the other Party of its agreement to provide protection of the scope contemplated by this Section 13.4, [***]. 
  
 Article 14 Term and Termination 
  
 14.1 Expiration. This Agreement will commence on the Effective Date and, unless earlier terminated pursuant to this Article 14 will continue in effect until [***]. 
  
 14.2 Termination by Mutual Agreement. The Parties may agree to terminate the Agreement
at any time on mutually agreed upon terms. 
  
 14.3 Material Breach. If one
Party believes that the other Party has committed a material breach of its material obligations under this Agreement, such Party may [***] and render a ruling that specifies the 
  

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 remedies imposed on the breaching Party. [***]; provided that, in determining such remedies, [***]
In rendering such ruling, the [***] shall consider the Parties’ express intent to remedy any breach of this Agreement through the [***] to establish appropriate terms and conditions to enable continued research, development
and Commercialization of the [***]. 
  
 14.4 Termination for Force
Majeure. In the event performance by a Party is excused pursuant to Section 16.10 for a continuous period of [***], the other Party will have the option of terminating this Agreement upon written notice to the excused Party. 
  
 14.5 Termination for Insolvency. 
  
 (a) If either Party: (i) makes a general assignment for the benefit of its
creditors or becomes insolvent; (ii) files an insolvency petition in bankruptcy; (iii) petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve its business or any substantial part of its
assets; (iv) commences under the laws of any jurisdiction any proceeding involving its insolvency, bankruptcy, reorganization, adjustment of debt, dissolution, liquidation or any other similar proceeding for the release of financially distressed
debtors; or (v) becomes a party to any proceeding or action of the type described above in (iii) or (iv) and such proceeding or action remains undismissed or unstayed for a period of more than [***], then the other Party may by written notice
terminate this Agreement. 
  
 (b) All rights and licenses granted
under or pursuant to this Agreement by Celera or SGI are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101
of the United States Bankruptcy Code. The Parties agree that each Party, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the United States Bankruptcy Code; provided,
however, nothing herein shall be deemed to constitute a present exercise of such rights and elections. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against a Party under the United States
Bankruptcy Code, the Party hereto that is not a Party to such proceeding shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, which, if
not already in the non-subject Party’s possession, shall be promptly delivered to it: (i) upon any such commencement of a bankruptcy proceeding upon the non-subject Party’s written request therefor, unless the Party subject to such
proceeding continues to perform all of its obligations under this Agreement; or (ii) if not delivered under clause (i) above, following the rejection of this Agreement by or on behalf of the Party subject to such proceeding upon written request
therefor by the non-subject Party. 
  
 14.6 Return Material. Each Party
will promptly return to the other Party (unless otherwise mutually agreed in writing by the Parties and except for one copy for archival purposes only) all physical embodiments of any of the other Party’s Independent Technology and Confidential
Information, that were provided by such other Party under this Agreement upon the termination of this Agreement. 
  
 14.7 Liabilities. Termination of this Agreement will not release either Party from any obligation or liability which may have accrued at the time of termination,
or preclude either Party from pursuing all rights at law and in equity with respect to any default under this Agreement. 
  
 14.8 Post-Termination Activities. Each Party will render a post-termination report as required by Sections 3.17, 8.10, and 8.11 within the period specified in such
provisions after the date of termination or expiration of this Agreement. Each Party will be entitled to conduct [***] in accordance with Section 8.15 within [***] after the date of termination or expiration. 
  

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 14.9 Survival. Termination or expiration of this Agreement will be without prejudice to any rights that may have
accrued to the benefit of a Party prior to such expiration or termination. Without limiting the foregoing, [***] will survive any expiration or termination of this Agreement to the extent necessary to effect the purposes thereof. In the event that
the Parties agree to, or ADR or a court decision results in, the continued Exploitation of any Collaboration Product or Unilateral Product after termination of this Agreement, [***] will survive such termination to the extent of any consideration
payable pursuant to the terms of this Agreement on such Collaboration Product or Unilateral Product. 
  
 Article 15 Dispute Resolution 
  
 15.1 Disputes. 
  

	 	(a)	Subject to Section 15.1(b), any dispute, controversy or claim initiated by either Party arising out of, resulting from, or relating to this Agreement, or the performance by either
Party of its obligations under this Agreement, other than bona fide Third Party actions or proceedings filed or instituted in an action or proceeding by a Third Party against a Party to this Agreement, (collectively, “Disputes”)
whether before or after termination of this Agreement, unless resolved pursuant to Section 15.2, will be finally resolved by binding alternative dispute resolution (“ADR”) in accordance with this Article 15 .

  

	 	(b)	Notwithstanding anything to the contrary, any Disputes relating to breach of a Party’s confidentiality obligations under Article 11, or relating to inventorship or the
validity, enforceability or scope of any patent or trademark rights, shall in each case be submitted for resolution by a court of competent jurisdiction. 

  
 15.2 Executive Officer Resolution. If the JSC is unable to resolve such a Dispute within [***] after the first presentation of such
Dispute to the JSC or if the Dispute arises by failure of the JSC to reach a decision as provided in Section 4.4, the Parties will send written notice of the Dispute to their respective presidents (or their executive officer designees) of the
affected subsidiaries, divisions, or business units. The respective officers will attempt to resolve such Dispute by good faith negotiations within [***] after receipt of such notice. If the Parties fail to resolve the Dispute or their
representatives fail to meet or speak directly within [***] of the notice of the Dispute, then either Party may refer the matter to ADR proceeding as provided herein. 
  
 15.3 Notice of ADR. To begin any such ADR, a Party will provide written notice to the other Party of the issues to be resolved by
such ADR. Within [***] after receipt of such notice, the other Party may, by written notice to the Party initiating the ADR, add additional issues to be resolved within the same ADR. 
  
 15.4 Designation of Neutral. Within [***] following receipt of the notice required by Section 15.3, the Parties will select a
mutually acceptable neutral to preside in the resolution of any Dispute in such ADR proceeding. If the Parties are unable to agree on a mutually acceptable neutral within such period, either Party may request the President of JAMS to select a
neutral at the San Francisco Resolution Center (located at Two Embarcadero Center, Suite 1100, San Francisco, CA 94111) pursuant to the following procedures: 
  

	 	(a)	JAMS will submit to the Parties a list of not less than [***] candidates within [***] after receipt of the request, along with a Curriculum Vita for each
candidate. No candidate will be a current or past employee, director, or shareholder of either Party. 

  

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	 	(b)	Such list will include a statement of disclosure by each candidate of any circumstance likely to affect his or her impartiality. 

  

	 	(c)	Each Party will number the candidates in order of preference (with the number one (1) signifying the greatest preference) and will deliver the list to JAMS within [***]
following receipt of the list of candidates. If a Party believes a conflict of interest exists regarding any of the candidates, the Party will provide a written explanation of the conflict to JAMS along with its list showing its order of preference
for the candidates. Any Party failing to return a list of preferences on time will be deemed to have no order of preference. 

  

	 	(d)	If the Parties collectively have identified [***]. 

  
 15.5 ADR Rules. Any such ADR will be conducted under the then current JAMS Comprehensive Rules for arbitration by a single neutral, and the Parties agree that
there will be discovery allowed by each Party to the extent deemed necessary by the neutral. Any such ADR will be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16. Any arbitration will be held in San Francisco, California.

  
 15.6 Hearing. No earlier than [***] after the selection, the neutral
will hold a hearing to resolve each of the issues identified by the Parties. 
  
 15.7 Evidence for Hearing. At least [***] prior to the hearing, each Party will submit the following to the other Party and the neutral: 
  
 (a) [***]; 
  
 (b) [***]; 
  
 (c) [***]; and 
  
 (d) [***]. 
  
 15.8 Hearing Procedure. The hearing governed by the following rules: 
  

	 	(a)	Each Party will be entitled to up to [***] of hearing time to present its case. The neutral will determine whether each Party has had the [***] to which it is
entitled. 

  

	 	(b)	Each Party will be entitled, but not required, to make an opening statement, to present regular and rebuttal testimony, documents or other evidence, to cross-examine witnesses, and
to make a closing argument. Cross-examination of witnesses will occur immediately after their direct testimony, and cross-examination time will be charged against the Party conducting the cross-examination. 

  

	 	(c)	The Party initiating the ADR will begin the hearing and, if it chooses to make an opening statement, will address not only issues it raised but also any issues raised by the
responding Party. The responding Party, if it chooses to make an opening statement, also 

  

	***	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. 

  

 35 

 will address all issues raised in the ADR. Thereafter, the presentation of regular and rebuttal testimony
and documents, other evidence, and closing arguments will proceed in the same sequence. 
  

	 	(d)	Except when testifying, witnesses will be excluded from the hearing until closing arguments. 

  

	 	(e)	Settlement negotiations, including any statements made therein, will not be admissible under any circumstances. Affidavits prepared for purposes of the ADR hearing also will not be
admissible. As to all other matters, the neutral will have sole discretion regarding the admissibility of any evidence. 

  
 15.9 Ruling by Neutral. The neutral will rule on each disputed issue and set forth the applicable remedies within [***] following completion of the hearing.

  
 15.10 Allocation of Expenses. The neutral will be paid a [***] fee plus
expenses. These fees and expenses, [***], the fees and expenses of a court reporter, and any expenses for a hearing room, will be paid as follows: 
  

	 	(a)	If the neutral rules in favor of [***]. 

  

	 	(b)	If the neutral rules in favor of [***]. 

  
 15.11 Binding Result. The rulings of the neutral and the allocation of fees and expenses will be binding, and may be entered as a final judgment in any court
having jurisdiction. All submissions to the ADR will be Confidential Information of the submitting Party and the results of the ADR will be Confidential Information of each Party. 
  
 15.12 Statute of Limitations. In no event will a demand for ADR be made after the date when institution of a legal or equitable
proceeding based upon such Dispute would be barred by the applicable statute of limitations. 
  
 15.13 Scientific and Technical Issues. Notwithstanding the foregoing, the JSC may modify any of the time periods or other provisions of this Article 15 in its discretion solely for handling time-sensitive
scientific or technical issues. If the JSC cannot unanimously agree on any shortening of such time periods, then all such time periods shall default to those set forth in this Article 15.  
  
 Article 16 Miscellaneous 
  
 16.1 Governing Law. This Agreement will be governed by, interpreted and construed in
accordance with the laws of Delaware, without regard to the conflict of laws principles thereof. 
  
 16.2 Publicity. The text of an initial press release announcing the Collaboration Program is set forth in Exhibit 16.2 attached hereto. Each Party may distribute the initial press release. Other press releases
or other similar public communication by either Party relating to this Agreement, will be subject to Article 11 and must be approved in advance by the other Party, [***], except for those communications required by applicable law (which will be
provided to the other Party as soon as practicable after the release or communication thereof). Neither disclosures of information for which consent has previously been obtained, nor information of a similar nature to that which has been previously
disclosed publicly with respect to this Agreement, will require advance 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. 

  

 36 

 16.3 Trademarks. Neither Party nor any of its Affiliates has any right or license to use any trademark, service
mark, trade name or name of the other Party or any of its Affiliates without the prior written consent of the other Party. 
  
 16.4 No Implied Licenses. Except to the extent and only to the extent necessary to enable a Party to conduct its obligations under this Agreement, only licenses
and rights granted expressly herein will be of legal force and effect and no license or other right will be created hereunder by implication, estoppel or otherwise. 
  
 16.5 Waiver. No waiver by a Party hereto of any breach or default of any of the covenants or agreements herein set forth will be
deemed a waiver as to any subsequent and/or similar breach unless the waiver is in a writing signed by authorized representatives of both Parties. 
  
 16.6 Assignment. Neither Party may assign any right or delegate any obligation hereunder, except as otherwise expressly provided in this Agreement without the
prior written consent of the other Party, [***] (any refusal to provide consent on this basis must be in writing and must include a [***] detailed explanation of the basis for the refusal). Notwithstanding the preceding sentence, each Party may
assign this Agreement to an Affiliate or to a successor in connection with the sale or transfer of all or substantially all of the assets of such Party associated with performance of this Agreement, or in the event of its merger, consolidation or
change of control, in each case the affected Party shall provide prompt written notice of the assignment to the other Party. Any permitted assignee will assume all obligations of its assignor under this Agreement. Any purported assignment in
violation of this Section 16.6 will be void. The terms and conditions of this Agreement will be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. 
  
 16.7 Independent Contractors. The relationship of the Parties hereto is that of
independent contractors. The Parties hereto are not deemed to be agents, partners or joint ventures of the others for any purpose as a result of this Agreement or the transactions contemplated thereby. 
  
 16.8 Further Actions. Each Party agrees to: [***]. 
  
 16.9 Notices. All requests and notices required or permitted to be given to the
Parties hereto will be given in writing, will expressly reference the section(s) of this Agreement to which they pertain, and will be delivered to the other Party, effective on receipt, at the appropriate address as set forth below or to such other
addresses as may be designated in writing by the Parties from time to time during the term of this Agreement. 
  

	
	If to Celera:
	
	Celera Genomics
	180 Kimball Way
	
	South San Francisco, California 94080
	Attn: Chief Business Officer
	
	with a copy to:
	
	Applera Corporation
	301 Merritt 7

  

	***	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. 

  

 37 

	
	Norwalk, Connecticut 06851
	Attn: Senior Vice President and General Counsel
	
	If to SGI:
	
	Seattle Genetics, Inc.
	21823 30th Drive S.E.
	Bothell, WA 98021
	Attn: Chief Executive Officer
	
	with a copy to: General Counsel

  
 16.10 Force Majeure.
Nonperformance of a Party (other than for the payment of money) will be excused to the extent that performance is rendered impossible by strike, fire, earthquake, flood, acts of terrorism, governmental acts or orders or restrictions, failure of
suppliers, or any other reason where failure to perform is beyond the [reasonable] control and not caused by the negligence, intentional conduct or misconduct of the nonperforming Party; provided, however, that the nonperforming Party will use [***]
to resume performance as soon as [***] practicable. 
  
 16.11 No Consequential
Damages. IN NO EVENT WILL A PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING, WITHOUT LIMITATION, LOST PROFITS ARISING FROM OR
RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. [***]. 
  
 16.12 Third Party Rights. Notwithstanding anything to the contrary in this Agreement, the grant of rights by each Party under this Agreement will be subject to and limited in all respects by the terms of
agreements with Third Parties by which such Party acquired any Control of intellectual property rights, and all rights granted under this Agreement will be limited to the extent of such Party’s Control. 
  
 16.13 Complete Agreement. This Agreement, together with its Exhibits, constitutes the
entire agreement between the Parties regarding the subject matter hereof, and all prior representations, understandings and agreements regarding the subject matter hereof, either written or oral, express or implied, are superseded and will be and
are of no effect. 
  
 16.14 Counterparts. This Agreement may be executed in
counterparts, each of which will be deemed to be an original and together will be deemed to be one (1) and the same agreement. 
  
 16.15 Headings. The captions to the several articles and sections hereof are not a part of this Agreement, but are included merely for convenience of reference
only and are not intended to affect its meaning or interpretation. 
  
 16.16
Severability. Should any part or provision of this Agreement be held unenforceable or in conflict with the law of any jurisdiction, the validity of the remaining parts or provisions will not be affected by such holding. In the event a part or
provision of this Agreement held unenforceable or in conflict with law affects consideration to either Party, the Parties agree to negotiate in good faith amendment of such part or provision in a manner consistent with the intention of the Parties
as expressed in this Agreement. 
  
 16.17 Amendment. This Agreement and its
Exhibits may be amended or modified only by a written document signed by authorized representatives of both Parties. 
  

	***	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. 

  

 38 

 16.18 Controlling Document. In the event there is a conflict between the terms or conditions of this Agreement and
the terms and conditions of any Exhibits, the terms and conditions of this Agreement will control. 
  
 [Signature page follows] 
  

 39 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized officers as
of the Effective Date. 
  

							
	 APPLERA CORPORATION
 through CELERA
GENOMICS GROUP
	 	SEATTLE GENETICS, INC.
				
	By:	 	 /s/ Kathy Ordoňez

	 	By:	 	 /s/ Clay B. Siegall

	 	 	(Signature)	 	 	 	(Signature)
		
	 	 	 Clay B. Siegall

	(Printed Name) Kathy Ordoňez	 	(Printed Name)
		
	 	 	 President & CEO

	(Title) Senior Vice President	 	(Title)
		
	             July 20, 2004

	 	 July 20, 2004

	Date	 	Date

  

 40

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