Document:

Second Amended and Restated Executive Employment Agreement

 EXHIBIT 10.1 
 SECOND AMENDED AND RESTATED 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This SECOND AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of March 14, 2006 (the
“Effective Date”), by and between POZEN Inc. (the “Company”), with offices located at 1414 Raleigh Road, Suite 400, Chapel Hill, North Carolina, and John R. Plachetka (“Executive”), whose address is 321 Silver Creek
Trail, Chapel Hill, North Carolina 27514, and amends and restates in its entirety the Original Agreement (as defined below). 
 WITNESSETH:

 WHEREAS, the Company has employed and wishes to continue to employ Executive in the position of Chairman, President and Chief Executive
Officer, and Executive desires to continue in the employment of the Company; and 
 WHEREAS, the Company and Executive previously entered
into an Executive Employment Agreement dated April 1, 1999, as amended and restated on July 25, 2001 (collectively, the “Original Agreement”), and now desire to enter into this Agreement, which replaces and supersedes in its
entirety the Original Agreement. 
 NOW, THEREFORE, in consideration of the foregoing and the provisions and mutual promises herein contained
and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows: 
 1. EMPLOYMENT. The Company hereby agrees to continue to employ Executive, and Executive hereby agrees to remain in the employ of the Company as Chairman, President and Chief Executive Officer, and to fulfill such duties and responsibilities
as are customarily related to such positions in accordance with the standards of the industry and any additional duties as may be reasonably assigned to Executive from time to time by the Board of Directors of the Company (the “Board”).

 2. TERM. The term of Executive’s employment hereunder shall commence on the Effective Date and, subject to earlier termination as
provided for herein, shall continue for a period of three (3) years from the Effective Date (the “Initial Term”); provided that this Agreement shall be automatically extended on the third anniversary of the Effective Date and on each
subsequent anniversary of the Effective Date (each such anniversary, a “Renewal Date”) for one additional year (the Initial Term and each such renewal term being hereinafter referred to as the “Term”), unless not later than the
date that is six (6) months prior to such Renewal Date, the Company or Executive shall have given written notice of such other party’s intention not to extend this Agreement. 
 3. EXCLUSIVE SERVICE. Executive agrees to devote Executive’s full time and attention to the performance of Executive’s duties and
responsibilities on behalf of the Company and to comply with all policies, standards, rules and regulations of the Company, and all 

 applicable government laws, rules and regulations that are now or hereafter in effect; provided, however,
that upon advance written approval from the Board, Executive shall be permitted to serve on the boards of directors of other for-profit or not-for-profit entities so long as Executive’s ability to devote the required time, energies, skills and
attention to perform his duties hereunder is not impaired. 
 4. COMPENSATION. During the Term of this Agreement, Executive’s
compensation shall be determined and paid as follows (all subject to any applicable withholdings): 
 (a) Base Salary.
Executive shall receive an annual base salary of no less than $462,000.00, payable in accordance with the Company’s standard payroll practices. Executive shall be eligible for annual increases, based upon performance, which increases, if any,
shall be made in the sole discretion of the Board of Directors or the Compensation Committee of the Board of Directors (each or collectively, the “Committee”), such increases to be effective as of January 1 of each year during the
Term. 
 (b) Bonus. Executive shall be eligible to receive an annual cash incentive bonus (the “Annual
Bonus”) based on performance. Executive’s annual target bonus shall be sixty-five percent (65%) of Executive’s annual base salary with the amount of the actual Annual Bonus anticipated to range between thirty-two and one-half
percent (32.5%) and one hundred percent (100%) of Executive’s then-current annual base salary. Executive’s entitlement to such Annual Bonus shall be based in part upon Executive’s achievement of certain performance goals to
be mutually agreed upon by the Executive and the Board annually (the “Performance Goals”). The determination of the actual Annual Bonus earned, if any, shall be determined in the discretion of the Committee and shall be based on the
Committee’s assessment of Executive’s performance, the achievement of the Performance Goals and other relevant factors as determined by the Committee. Nothing in this Section 4(b) shall be construed as granting or guaranteeing
Executive a bonus in any amount. The Annual Bonus will be payable in the year following the year in which it is earned within thirty (30) calendar days after determination of financial or other results relevant to calculating the amount of the
Annual Bonus. 
 (c) Long-Term Incentive Compensation. Each year during the Term, Executive shall be eligible to
participate in and to receive annual awards (the “Incentive Award”) under a long-term incentive program with a target value of One Million Seven Hundred Thousand Dollars $1,700,000 for the first year of the Term, subject to annual review
by the Committee. The determination of the actual Incentive Award earned, if any, shall be determined in the discretion of the Committee and shall be based on the Committee’s assessment of Executive’s overall performance, the achievement
of the Performance Goals and other relevant factors as determined by the Committee. Nothing in this Section 4(c) shall be construed as granting or guaranteeing Executive an Incentive Award in any amount. 
  

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 (d) Benefits. Executive shall be eligible to participate in the Company’s
employee benefit plans and fringe benefits as may be provided by the Company from time to time to other senior executives of the Company on the same basis as other senior executives of the Company are eligible, subject to appropriate premium
contributions, benefit elections and provided that Executive meets the eligibility requirements thereof. Executive shall be entitled to such supplemental benefits as may be required to provide Executive with the equivalent benefits paid to such
other executives to the extent that any such programs are limited by the maximum amount of compensation that may be taken into account in determining benefits under such programs. All such benefits are subject to amendment or termination from time
to time by the Company without the consent of the Executive. In addition, Executive shall be entitled to six (6) weeks of paid vacation. 
 (e) Life Insurance. During the Term, the Company will use its reasonable best efforts to obtain and pay insurance premiums on the life of Executive, in an amount equal to two times Executive’s then-current
annual base salary, through the Company’s group insurance program or otherwise, as the Company shall in its discretion determine, payable to such persons as Executive may, from time to time, designate in writing, or if Executive fails to
designate a beneficiary, to the legal representative of Executive’s estate; provided that the Company shall only be obligated to pay the most favorable rate for such coverage. Executive agrees to submit to any physical examination required by
any prospective insurer, and will otherwise cooperate with the Company in obtaining and maintaining such life insurance coverage. If the rate charged to the Company for such insurance coverage exceeds the applicable insurance company’s
then-current most favorable rate for a person of Executive’s age and gender, Executive shall have the option to pay to the Company the excess premium above the most favorable rate. If Executive does not elect to pay such excess premium, the
Company shall only be obligated to purchase an amount of insurance coverage that equals the most favorable rate multiplied by two times Executive’s then-current annual base salary. In the event that Executive does not qualify for any such life
insurance, the Company shall pay directly to Executive an amount equal to such premiums that the Company would have paid to any insurance company to obtain such life insurance on an annual basis. 
 (f) Business Expenses. The Company shall pay or reimburse Executive for all of his out-of-pocket expenses reasonably incurred in
the performance of his duties hereunder on behalf of the Company, including, but not limited to, overnight delivery charges, long distance telephone and facsimile charges and travel expenses (including airfare, hotels, car rental expenses and
meals), all in accordance with the Company’s expense reimbursement policy. Payment shall be due after the Company’s receipt of Executive’s invoice or expense report therefor in accordance with the Company’s expense reimbursement
policies. 
 (g) Adequate Office Space. The Company shall provide to Executive adequate office space, facilities and
administrative support appropriate to Executive’s position. 
  

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 (h) Disability. The Company will pay Executive as additional compensation an
amount equal to the premium costs of an individual long term disability insurance plan. The plan shall provide for a benefit indemnity payment schedule equal to 70% of Executive’s annual Base Salary. The Company shall also pay Executive as
additional salary for such long term disability plan an amount sufficient to cover the additional income taxes owed on such compensation payments. 
 (i) Estate Planning and Similar Costs. During the term of this Agreement, the Company will reimburse Executive for legal fees and expenses incurred by Executive in connection with (A) estate and tax
planning, and other legal expenses incurred by Executive, specifically including those associated with this Agreement, up to a maximum of $30,000 per calendar year, and (B) the establishment and administration of a Rule 10b5-1 securities
selling program, up to a maximum of $15,000 per calendar year. 
 With respect to each of the items of benefit listed in this Section 4
and any vesting or other criteria for eligibility applicable thereto, Executive shall be credited with length of service beginning as of the initial date of his employment by the Company, except as otherwise required by law. 
 5. TERMINATION. 
 (a) For
Cause by the Company. During the Term, the Company may terminate Executive’s employment under this Agreement at any time for “Cause,” and Executive shall thereafter be entitled to no compensation or benefits under this Agreement
or otherwise, except as provided in Section 6(a) hereof. For purposes of this Agreement, “Cause” shall be determined by the Board and shall mean: 
 (i) Executive’s conviction of, or plea of no contest to, any crime (whether or not involving the Company) that constitutes a felony
in the jurisdiction in which Executive is charged, other than unintentional motor vehicle felonies or routine traffic citations; 
 (ii) Any act of theft, fraud or embezzlement, or any other willful misconduct or willfully dishonest behavior by Executive, that is materially detrimental to the reputation, business and/or operations of the Company; 
 (iii) Executive’s repeated failure or refusal to perform his reasonably-assigned duties (consistent with past practice of the
Company) under this Agreement (other than due to his incapacity due to illness or injury), provided that such repeated failure or refusal is not corrected as promptly as practicable, and in any event within thirty (30) calendar days after
Executive shall have received written notice from the Company stating the nature of such failure or refusal; 
 (iv)
Executive’s failure to comply with the Company’s policies or the directives of the Board; and/or 
  

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 (v) Executive’s violation of any of his obligations under this Agreement or
contained in the Nondisclosure, Inventions and Non-Competition Agreement described in Section 8 below and attached as Exhibit A hereto. 
 (b) Termination Without Cause by the Company. During the Term, the Company may terminate Executive’s employment under this Agreement at any time and for any reason without Cause by giving Executive written
notice no less than ninety (90) calendar days in advance of the effective date of such termination. If the Company terminates Executive’s employment pursuant to the provisions of this Section 5(b), Executive shall receive the
compensation and benefits described in Sections 6(a) and 6(b) hereof. 
 (c) Termination Without Good Reason by
Executive. During the Term, Executive may voluntarily terminate his employment by giving the Company written notice no less than ninety (90) calendar days in advance of the effective date of such termination. If Executive voluntarily
terminates his employment pursuant to the provisions of this Section 5(c), Executive shall thereafter be entitled to no further compensation or benefits under this Agreement or otherwise, except as provided in Section 6(a) hereof.

 (d) Termination for Good Reason by Executive. During the Term, Executive may terminate his employment under this
Agreement at any time for “Good Reason.” For purposes of this Agreement, “Good Reason” means: 
 (i) Any materially adverse change or diminution in the office, title, duties, powers, authority or responsibilities of Executive, provided such change or diminution continues uncorrected for a period of thirty (30) calendar days after
the Company shall have received written notice from Executive stating the nature of such change or diminution; 
 (ii) The
occurrence of a Change of Control (as defined below), subject to the limitations set forth in Section 6(b), and provided that within sixty (60) calendar days after such occurrence or the date Executive is notified thereof, whichever is
later, Executive gives the Company written notice of Executive’s intention to terminate his employment on an effective termination date that is no less than ninety (90) calendar days after the date of such notice; 
 (iii) A failure of the Company to pay or provide Executive with any of the following compensation or benefits that have become due and
payable to Executive: (A) Base Salary, (B) Annual Bonus, if awarded by the Committee, (C) other compensation (including restricted stock and/or stock option awards), if awarded by the Committee, (D) benefits or
(E) reimbursements (unless there is a good faith dispute over reimbursement of expenses), where any such compensation or benefits are not paid or provided to Executive within thirty (30) calendar days after Executive has given the Company
written notice of demand therefor (provided such amounts are then due and payable); 
  

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 (iv) A reduction in Executive’s then Base Salary or a material reduction of any
material employee benefit or perquisite enjoyed by him (other than as consented to by Executive or as part of an across-the-board change or reduction applicable to all senior executives of the Company); 
 (v) Failure of the Company to obtain the assumption in writing of its obligation to perform this Agreement by any purchaser of all or
substantially all of the assets of the Company within fifteen (15) calendar days after a sale or transfer of such assets; 
 (vi) Failure of Executive to be elected as a director of the Company during the Term of this Agreement or his removal from such position during such Term unless such removal or failure to elect occurs following a Change of Control (as
defined below); and/or 
 (vii) A relocation of Executive’s office location, as assigned to him by the Company, to a
location more than fifty (50) miles from the current location of the Company in Chapel Hill, North Carolina. In the event that Executive elects not to terminate his employment under this Subsection 5(d)(vii), the Company shall promptly
reimburse Executive for the reasonable expenses he incurs in relocating from his then-current location to the location of his new office, including, without limitation, all moving expenses, reasonable legal expenses and commissions associated with
selling his primary residence and all closing costs relating to his acquisition of a residence in the area of his new office. 
 In the event
Executive terminates employment with the Company pursuant to the provisions of this Section 5(d), Executive shall receive the compensation and benefits described in Sections 6(a) and 6(b) hereof. 
 (e) Termination for Disability or Death. During the Term, Executive’s employment may be terminated by either party in the
event Executive suffers a physical or mental disability (as defined below), as determined in the reasonable opinion of a medical doctor selected by the agreement of the Company and Executive. In the event that the parties cannot agree on a medical
doctor, each party shall select a medical doctor and the two doctors shall select a third who shall be the approved medical doctor for this purpose. To the extent that the expenses associated with any such medical determination are not covered by
medical insurance, the Company shall bear all such costs. Executive will be deemed to suffer a disability if Executive is unable, due to a physical or mental disability, to perform the essential functions of his job, with or without a reasonable
accommodation, for a period of ninety (90) consecutive calendar days or one hundred eighty (180) nonconsecutive calendar days during any three hundred sixty (360) calendar day period. If Executive is terminated because of a disability
under this Section 5(e), he shall be entitled to such benefits as are generally available under the Company’s disability insurance policies, if any, and any additional coverage required pursuant to Section 4(h). If Executive dies or
is terminated due to a disability under this Section 5(e), Executive or his estate shall be entitled to only the compensation and benefits described in Section 6(a) and 6(e) hereof. 
  

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 (f) Termination Upon Non-Renewal of Agreement. This Agreement may also be
terminated by either party at the end of a Term as provided under Section 2 hereof. If Executive’s employment is terminated pursuant to the terms of this Section 5(f), then Executive shall be entitled to the compensation and benefits
set forth in Section 6(f). 
 (g) Change of Control. For purposes of this Agreement, a “Change of
Control” shall be deemed to have occurred as of the first day any one or more of the following shall have occurred: 
 (i) If any person (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the Company or any trustee or fiduciary holding securities under an employee
benefit plan of the Company) becomes a beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the voting power of the then outstanding securities of the
Company; provided that a Change of Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction,
will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors (without consideration of
the rights of any class of stock to elect directors by a separate class vote); or 
 (ii) Upon the consummation of (A) a
merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such
stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote),
(B) a sale or other disposition of all or substantially all of the assets of the Company, or (C) a liquidation or dissolution of the Company. 
 6. PAYMENT OBLIGATIONS UPON TERMINATION. 
 (a) Accrued Compensation and Benefits. Upon
termination of Executive’s employment by either party for any reason, Executive (or his heirs, successors, personal representatives or assigns) will receive from the Company: (i) payment for any accrued, unpaid Base Salary through the
termination date; (ii) payment for any accrued, unpaid vacation time through the termination date; (iii) reimbursement for any unreimbursed expenses in accordance with the Company’s policies; and (iv) participation in any Company
benefit plans or programs through the termination date. 
  

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 (b) Termination by the Company Without Cause or by Executive for Good Reason. In
addition to the compensation and benefits described in Section 6(a) hereof, if the Company terminates Executive’s employment without Cause during the Term (other than due to Executive’s death or disability) or if Executive terminates
his employment for Good Reason (except pursuant to Section 5(d)(ii)), and provided that Executive executes and does not revoke a general release in a form acceptable to the Company (the “Release”), the Company will provide the
following severance benefits to Executive: 
 (i) The Company will make a lump sum payment equal to two (2) times the
average of the Annual Bonuses actually awarded to Executive over the previous two years, less any required taxes and withholdings, payable within sixty (60) calendar days of the termination date; 
 (ii) The Company will continue paying Executive his annual Base Salary at the rate in effect on the termination date, less any required
taxes and withholdings, for a period of twenty-four (24) months after the termination date. Such Base Salary shall be paid, subject to Section 6(g), on the fifth business day of each month commencing on the month immediately following the
eighth day after Executive executes and does not revoke the Release; 
 (iii) The Company will continue Executive’s
participation in the Company’s health benefits at the same level as in effect on the termination date for a period of eighteen (18) months after the termination date or until Executive is eligible for equivalent health benefits from
another employer, whichever is sooner. If the Company’s health benefit plans or programs do not allow for Executive’s continued participation in such plans or programs after termination of employment, the Company agrees to reimburse
Executive for continuing coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”); provided, however, that such reimbursement will be conditioned upon Executive’s timely election of continued
coverage under COBRA; and 
 (iv) Executive will be entitled to twelve (12) months acceleration of the vesting of all
shares subject to any stock option, such that all options will be exercisable and vested on Executive’s termination date as if Executive’s termination date were twelve (12) months later. After giving effect to the acceleration
provided for in the preceding sentence, any unvested shares will be forfeited as of the termination date. 
 Notwithstanding the foregoing, if
Executive terminates his employment for Good Reason pursuant to Section 5(d)(ii), then Executive shall be entitled to the compensation and benefits described in Section 6(a) hereof and, provided that Executive executes and does not revoke
the Release, all of the benefits specified in Section 6(b) except that (i) he shall only be entitled to a lump sum payment 
  

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 equal to one (1) times the average of the Annual Bonus actually awarded to Executive over the
previous two years and (ii) the Company shall continue paying his annual Base Salary at the rate in effect on the termination date (less any required taxes and withholdings) for a period of twelve (12) months after the termination date,
such Base Salary to be paid, subject to Section 6(g), on the fifth business day of each month commencing on the month immediately following the eighth day after Executive executes and does not revoke the Release. 
 (c) Termination by the Company for Cause. If the Company terminates Executive’s employment for Cause, Executive will be
entitled to only the compensation and benefits described in Section 6(a) hereof and no further compensation or benefits. All then unvested options to purchase the Company’s stock and any restricted stock or other awards that remain
unvested will be forfeited immediately. 
 (d) Termination by Executive Without Good Reason. If Executive terminates
employment with the Company without Good Reason during the Term, Executive will be entitled to the compensation and benefits described in Section 6(a) hereof. All then unvested options to purchase the Company’s stock and any restricted
stock or other awards that remain unvested will be forfeited immediately. 
 (e) Termination Due to Death or
Disability. If Executive’s employment is terminated due to death or disability during the Term, Executive will be entitled to the compensation and benefits described in Section 6(a) hereof, and provided Executive or his heirs execute
the Release, Executive will be entitled to receive a pro-rata share of the average of the Annual Bonuses paid to Executive during the two immediately preceding years. All then unvested options to purchase the Company’s stock and any restricted
stock or other awards that remain unvested will be forfeited immediately. 
 (f) Termination Due to Non-Renewal. If
Executive’s employment is terminated by either party at the end of a Term not following a Change of Control pursuant to Section 5(f) hereof, then Executive shall only be entitled to the compensation and benefits described in
Section 6(a) hereof. All then unvested options to purchase the Company’s stock and any restricted stock or other awards that remain unvested will be forfeited immediately. Notwithstanding the foregoing, if within twenty-four
(24) months following a Change of Control, Executive’s employment is terminated by the Company at the end of a Term pursuant to Section 5(f), and provided that Executive executes and does not revoke the Release, Executive shall be
entitled to the compensation and benefits described in Sections 6(a) and 6(b) hereof. 
 (g) Excise Tax.
Notwithstanding the foregoing provisions of this Section 6, if and to the extent required in order to avoid the imposition on Executive of any excise tax under Section 409A (“Code Section 409A”) of the Internal Revenue Code
of 1986, as amended (the “Code”), the payment of any severance or other payments under this Section 5 shall not commence until, and shall be made on, the first business day after the date that is six (6) months following the date
of Executive’s termination of employment, and in such event the initial payment shall include a catch-up amount covering amounts that would otherwise have been paid during the six-month period following Executive’s termination date.

  

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 (h) No Mitigation or Offset. In the event of any termination of employment under
Section 5, Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may
obtain or other service that he may provide, except as provided in Subsection 6(b)(iii) hereof. 
 7. EXCISE TAX GROSS-UP. 
 (a) Definitions. For purposes of this Section 7, the following terms shall have the meanings set forth below: 

(i) “Excise Tax” shall mean the Excise Tax imposed by Section 4999 of the Code, together with any interest or penalties
imposed with the respect to such Excise Tax. 
 (ii) “Parachute Value” of a Payment shall mean the present
value as of the date of the Change of Control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2), as determined by the Accounting Firm (as
defined below) for purposes of determining whether and to what extent the Excise Tax will apply to such Payment. 
 (iii) A “Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of Executive, whether paid or payable pursuant to this
Agreement or otherwise. 
 (iv) The “Safe Harbor Amount” means 2.99 times Executive’s “base
amount,” within the meaning of Section 280G(b)(3) of the Code. 
 (v) “Value” of a Payment shall mean the
economic present value of a Payment as of the date of the Change of Control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code. 
 (b) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined
that any Payment would be subject to the Excise Tax, then Executive shall be entitled to receive an additional payment (“Gross-Up Payment”) in an amount such that, after payment by Executive of all taxes (and any interest or penalty
imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments; provided, however, that if the aggregate Parachute Value of all Payments does not exceed 115% of the Safe Harbor Amount, then no Gross-Up Payment shall be made to the Executive and the amounts

  

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 payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the
aggregate, equals the Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the Payments which are cash and thereafter the noncash Payments, unless Executive shall elect another method of
reduction by written notice to the Company prior to the Change of Control 
 (c) Subject to the provisions of
Section 7(e), all determinations required to be made under this Section 7, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by a nationally recognized accounting firm designated by the Company immediately prior to the Change of Control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company
and Executive within fifteen (15) business days of the receipt of notice from Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as
the Accounting Firm hereunder). Any determination by the Accounting Firm shall be binding upon the Company and Executive. All fees and expenses of the Accounting Firm shall be borne solely by the Company. 
 (d) Any Gross-Up Payment, as determined pursuant to this Section 7, shall be paid by the Company to Executive as and when the Excise
Tax is incurred on a Payment. The Gross-Up Payment shall be paid in accordance with Code Section 409A, to the extent applicable. If required in order to comply with Code Section 409A, (i) the Gross-Up Payment attributable to Payments
other than severance compensation and benefits described in Section 5 shall be paid in a lump sum payment upon the closing of the Change of Control, and (ii) the Gross-Up Payment attributable to severance compensation and benefits shall be
paid in a lump sum payment on the first day on which severance compensation is paid pursuant to Section 5. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the
Company exhausts its remedies pursuant to Section 7(e) and Executive thereafter is required to make a Payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment
shall be promptly paid by the Company to or for the benefit of Executive. 
 (e) Executive shall notify the Company in
writing of any claim by the Internal Revenue Service that, if successful, would require the Payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after
Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which Executive gives such notice to the Company (or 
  

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 such shorter period ending on the date that any Payment of taxes with respect to such claim is due). If
the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall: 
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company, 
 (iii) cooperate with the Company in good faith in order to
effectively contest such claim, and 
 (iv) permit the Company to participate in any proceedings relating to such claim;

 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income or other tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 7(e), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego
any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that
if the Company directs Executive to pay such claim and sue for a refund, the Company shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax or income or other tax (including interest or penalties with respect
thereto) imposed with respect to such payment; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Executive shall be entitled to settle or contest, as
the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (f) Notwithstanding any other provision of this Section 7, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of Executive, all
or any portion of any Gross-Up Payment, and Executive hereby consents to such withholding. 
  

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 8. NON-DISCLOSURE, INVENTIONS AND NON-COMPETITION. Executive shall continue to be bound by the terms of
the Nondisclosure, Inventions and Non-competition Agreement dated July 25, 2001 attached hereto as Exhibit A and incorporated herein by reference. 
 9. INDEMNIFICATION. 
 (a) General Indemnification Provisions. The Company
agrees that if Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a
director, officer or employee of the Company or is or was serving at the request of the Company as a director, officer, member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding is Executive’s alleged action in an official capacity while serving as a director, officer, member, employee or agent, Executive shall be indemnified and held
harmless by the Company to the fullest extent legally permitted or authorized by the Company’s certificate of incorporation or bylaws or resolutions of the Board, or if greater, by the laws of the State of Delaware, against all costs, expenses,
liabilities and losses (including, without limitation, attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by Executive in connection therewith, and
such indemnification shall continue as to Executive even if he has ceased to be a director, officer, member, employee or agent of the Company or other entity and shall inure to the benefit of Executive’s heirs, successors, personal
representatives, assigns, executors and administrators. The Company shall advance to Executive all reasonable costs and expenses incurred by him in connection with a Proceeding within twenty (20) calendar days after receipt by the Company of a
written request for such advance. Such request shall include an undertaking by Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses. 

(b) Insurance Coverage. The Company agrees to continue and maintain a directors and officers’ liability insurance policy
covering Executive to the extent the Company provides such coverage for its other directors and executive officers. 
 10. NOTICES. Any
notice required to be given shall be in writing personally delivered by certified mail or registered mail or by facsimile (receipt confirmed) to the address last shown in the Company’s records. 
 11. SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision (or part thereof)
of this Agreement shall in no way affect the validity or enforceability of any other provision (or remaining part thereof). 
  

 13 

 12. GOVERNING LAW. This Agreement shall be governed by and construed according to the laws of the State
of North Carolina, without reference to the choice of law provisions of such laws. 
 13. ENTIRE AGREEMENT. This Agreement, together with the
Nondisclosure, Inventions and Non-Competition Agreement described in Section 8 above (the “Nondisclosure Agreement”), contains the entire agreement of the parties relating to the subject matter hereof and supersedes all previous
agreements between the parties with respect to the subject matter hereof, including without limitation the Original Agreement (but excluding the Nondisclosure Agreement, which shall remain in full force and effect), and the parties hereto have made
no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth herein. No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto. 
 14. BENEFIT. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any
corporation or other entity with which or into which the Company may be merged or which may succeed to its assets or business; provided, however, that the obligations of Executive are personal and shall not be assigned by Executive. 
 15. INJUNCTIVE RELIEF. Executive understands and agrees that the Company will suffer irreparable harm in the event that Executive breaches any of
Executive’s obligations under this Agreement and that monetary damages will be inadequate to compensate the Company for such breach. Accordingly, Executive agrees that, in the event of a breach or threatened breach by Executive of any of the
provisions of this Agreement, the Company, in addition to and not in limitation of any other rights, remedies, or damages available to the Company at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain
any such breach by Executive, or by Executive’s partners, agents, representatives, servants, employers, employees and/or any and all persons directly or indirectly acting for or with Executive; provided such injunction shall not affect
Executive’s ownership rights in the Company or compensation earned or due Executive. 
 [Reminder of this page intentionally left blank]

  

 14 

 IN WITNESS WHEREOF, the parties hereto have executed this Executive Employment Agreement and affixed
their seals as of the day and year first above written. 
  

			
	EMPLOYER:
	
	POZEN INC.
		
	By:	 	 /s/ Ted G. Wood

	Name:	 	Ted G. Wood
	Title:	 	Chairman of the Compensation Committee of the Board of Directors
	
	EXECUTIVE:
	
	 /s/ John R. Plachetka

	John R. Plachetka

  

 15 

 EXHIBIT A 
 NON-DISCLOSURE, INVENTION AND NON-COMPETITION AGREEMENT 
 THIS NON-DISCLOSURE, INVENTION AND
NON-COMPETITION AGREEMENT (the “Agreement”) is effective for all purposes and in all respects, by and between POZEN Inc., a Delaware corporation (hereinafter referred to as “Employer”), and John R. Plachetka, Pharm.D.
(hereinafter referred to as “Employee”). 
 WHEREAS, Employer is about to employ Employee in a position of trust and confidence to
aid Employer in its business; and 
 WHEREAS, Employer desires to receive from Employee a covenant not to disclose certain information
relating to Employer’s business and certain other covenants; and 
 WHEREAS, as a material inducement to Employer to employ Employee and
to pay to Employee compensation for such services, Employee has agreed to such covenants; and 
 WHEREAS, Employer and Employee desire to set
forth in writing the terms and conditions of their agreements and understandings. 
 NOW, THEREFORE, in consideration of the foregoing, of
the mutual promises herein contained, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows: 
 1. Disclosure of Information. Employee acknowledges that, in and as a result of his employment by Employer, he will be making use of, acquiring
and/or adding to confidential information of a special and unique nature and value, including, without limitation, Employer’s trade secrets, products, systems, programs, procedures, manuals, guides (as periodically updated or supplemented),
confidential reports and communications (including, without limitation, customer site information, technical information on the performance and reliability of Employer’s products and the development or acquisition of future products or product
enhancements by Employer) and lists of customers, as well as the nature and type of the services rendered by Employer and the fees paid by Employer’s customers. Employee further acknowledges that any information and materials received by
Employer from third parties in confidence (or subject to non-disclosure covenants) shall be deemed to be and shall be confidential information within the meaning of this Section 1. As a material inducement to Employer to employ Employee and to
pay to Employee compensation for such services to be rendered to Employer by Employee (it being understood and agreed by the parties hereto that such compensation shall also be paid and received in consideration hereof), Employee covenants and
agrees that he shall not, except with the prior written consent of the Board of Directors of Employer, at any time during or following the term of his employment with Employer, directly or indirectly, divulge, reveal, report, publish, transfer or
disclose, for any purpose whatsoever, any of such confidential information which has been obtained by or disclosed to him as a result of his employment with Employer, including, without limitation, any Proprietary Information, as 
  

 16 

 defined in Section 2 hereof; Employee agrees further that upon termination of his employment with Employer for any
reason, he shall sign the Employee Termination Statement, a form of which is attached hereto. The aforementioned obligation of confidentiality and non-disclosure shall not apply when: 
 (a) Public Domain. The information disclosed to Employee was in the public domain at the time of disclosure, or at any time after disclosure has
become a part of the public domain by publication or otherwise through sources other than Employee, directly or indirectly, and without fault on the part of Employee in failing to keep such information confidential; or 
 (b) Requirement of Law or Order. Disclosure is required by law or court order, provided Employee gives Employer prior written notice of any such
disclosure; or 
 (c) Agreement. Disclosure is made with the prior written agreement of the Board of Directors of Employer; or

 (d) Prior Information. The information is encompassed by the ideas and inventions listed on Schedule A hereto or was in
Employee’s possession at the time of disclosure, as shown by written records in existence prior to such time, and such information has not been transferred to Employer, and was not acquired, directly or indirectly, from the Employer; or

 (e) Third Party Disclosure. The information is lawfully disclosed to Employee after the termination of his employment by a third
party who is under no obligation of confidentiality to Employer with respect to such information; or 
 (f) Independently Developed.
Such information is independently developed by Employee subsequent to the termination of his active participation in the business of Employer, as demonstrated by written records of Employee which are contemporaneously maintained. 
 2. Definition of Proprietary Information. For purposes of this Agreement, the term “Proprietary Information” shall mean all of the
following materials and information (whether or not reduced to writing and whether or not patentable or protectable by copyright) which Employee receives, receives access to, conceives of or develops, in whole or in part, as a direct or indirect
result of his employment with Employer, in the course of his employment with Employer (in any capacity, whether executive, managerial, planning, technical, sales, research, development, manufacturing, engineering or otherwise) or through the use of
any of Employer’s facilities or resources: 
 (i) Manufactured products, assembled or unassembled, and any related goods or systems and
any and all future products, software or systems developed or derived therefrom; 
 (ii) With respect to the items described in
Section 2(i) above, all hardware and software relating to design or manufacture; all source and object codes to such hardware and software; all specifications, design concepts, documents and manuals; all security systems relating to the product
or procedures, including, without limitation, software security systems; 
  

 17 

 (iii) Trade secrets, production processes, marketing techniques, mailing lists, purchasing information,
price lists, pricing policies, quoting procedures, financial information, customer and prospect names and requirements, customer data, customer site information and other materials or information relating to the manner in which Employer does
business; 
 (iv) Discoveries, concepts and ideas, whether or not patentable or protectable by copyright, including, without limitation, the
nature and results of research and development activities, technical information on product or program performance and reliability, processes, formulas, techniques, “know-how”, source codes, object codes, designs, drawings and
specifications; 
 (v) Any other material or information related to the business or activities of Employer which is not generally known to
others engaged in similar businesses or activities; 
 (vi) Any other material or information that has been created, discovered or
developed, or otherwise becomes known to Employer which has commercial value in the business in which Employer is engaged; and 
 (vii) All
ideas which are derived from or relate to Employee’s access to or knowledge of any of the above-enumerated materials and information. 
 Failure to mark any of the Proprietary Information as confidential shall not affect its status as part of the Proprietary Information under the terms of this Agreement. 
 3. Ownership of Information. 
 (i)
Employee hereby assigns to Employer all of Employee’s right, title and interest in any idea (whether or not patentable or protectable by copyright), product, invention, discovery, computer software program or other computer-related equipment or
technology, conceived or developed in whole or in part, or in which Employee may have aided in its development, while employed by Employer, including, without limitation, any Proprietary Information. If any one or more of the aforementioned are
deemed in any way to fall within the definition of “work made for hire”, as such term is defined in 17 U.S.C. § 101, such work shall be considered “work made for hire”, the copyright of which shall be owned solely,
completely and exclusively by Employer. If any of the aforementioned are considered to be work not included in the categories of work covered by the “work made for hire” definition contained in 17 U.S.C. § 101, such work shall be
owned solely by, or assigned or transferred completely and exclusively to, Employer. Employee agrees to execute any instruments and to do all other things reasonably requested by Employer (both during and after Employee’s employment with
Employer) in order to more fully vest in Employer all ownership rights in those items thereby transferred by Employee to Employer. Employee further agrees to disclose immediately to 
  

 18 

 Employer all Proprietary Information conceived of or developed in whole or in part by him during the term of his
employment with Employer and to assign to Employer any right, title or interest he may have in such Proprietary Information. 
 (ii) Employee
hereby represents and warrants that Employee has fully disclosed to Employer on Schedule A hereto any idea, invention, product, improvement, computer software program or other equipment or technology related to therapeutic pharmaceuticals (an
“Invention”) not covered in Section 3(i) above which, prior to his employment with Employer, Employee conceived of or developed, wholly or in part, and in which Employee has any right, title or proprietary interest and which directly
relate to Employer’s business, but which has not been published or filed with the United States Patent or Copyright Offices or assigned or transferred to Employer. If there is no such list of Schedule A, Employee represents that Employee
has made no such Inventions at the time of signing this Agreement or Employee hereby assigns such Inventions to Employer. 
 (iii)
Notwithstanding anything in this Agreement to the contrary, the obligation of Employee to assign or offer to assign his rights in an Invention to Employer shall not extend or apply to an Invention that Employee developed entirely on his own time
without using Employer’s equipment, supplies, facility or trade secret information unless such Invention (a) relates to Employer’s business or actual or demonstrably anticipated research or development, or (b) results from any
work performed by Employee for Employer. Employee shall bear the burden of proof in establishing that his Invention qualifies for exclusion under this Section 3(iii). With respect to Section 3(iii), it is agreed and acknowledged that
during Employee’s employment, Employer may enter other lines of business, which are related or unrelated to its current lines of business, in which case this Agreement would be expanded to cover such new lines of business. 
 4. Injunctive Relief. Employee understands and agrees that Employer will suffer irreparable harm in the event that Employee breaches any of his
obligations under this Agreement and that monetary damages will be inadequate to compensate Employer for such breach. Accordingly, Employee agrees that, in the event of a breach or threatened breach by Employee of any of the provisions of this
Agreement, Employer, in addition to and not in limitation of any other rights, remedies or damages available to Employer at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by Employee,
or any of employee’s partners, agents, representatives, servants, employers, employees and/or any and all persons directly or indirectly acting for or with him. 
 5. Records. All notes, data, tapes, reference materials, sketches, drawings, memoranda, models and records in any way relating to any of the information referred to in Sections 1, 2 and 3 hereof (including,
without limitation, any Proprietary Information) or to Employer’s business shall belong exclusively to Employer, and Employee agrees to turn over to Employer all such materials and all copies of such materials in his possession or then under
his control at the request of Employer or, in the absence of such a request, upon the termination of Employee’s employment with Employer. 
  

 19 

 6. Accounting for Profits. Employee covenants and agrees that, if he shall violate any of his
covenants or agreements under this Agreement, Employer shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or benefits which Employee directly or indirectly has realized and/or may realize as a
result of, growing out of or in connection with any such violation; such remedy shall be in addition to and not in limitation of any injunctive relief or other rights or remedies to which Employer is or may be entitled at law, in equity or under
this Agreement. 
 7. Covenant Not to Compete. It is recognized and understood by the parties hereto that Employee, through
Employee’s association with Employer as an employee, shall acquire a considerable amount of knowledge and goodwill with respect to the business of Employer, which knowledge and goodwill are extremely valuable to Employer and which would be
extremely detrimental to Employer if used by Employee to compete with Employer. It is, therefore, understood and agreed by the parties hereto that, because of the nature of the business of Employer, it is necessary to afford fair protection to
Employer from such competition by Employee. Consequently, as a material inducement to employ Employee in the aforementioned positions, Employee covenants and agrees to the following: 
 (a) Except as otherwise approved in writing by Employer, Employee agrees: 
 (i) that Employee will not, directly or indirectly, with or through any family member or former director, officer or employee of Employer, or acting along or as a member of a partnership or as an officer, holder of or
investor in as much as 5% of any security of any class, director, employee, consultant or representative of any corporation or other business entity: 
 (1) at any time while engaged as an employee of Employer and for a period of two (2) years following termination as an employee, interfere with, or seek to interfere with, the relationship between Employer or any
affiliate of Employer and the following: (a) any of the employees of such entities; (b) any of the customers of such entities then existing or existing at any time within three (3) years prior to termination of Employee’s
employment by Employer; or (c) any of the suppliers of such entities then existing or existing at any time within three (3) years prior to termination of Employee’s employment by Employer. 
 (b) The parties hereto agree that in the event that either the length of time or the geographic area set forth in paragraph (a) is deemed too
restrictive in any court proceeding, that the court may reduce such restrictions to those which it deems reasonable under the circumstances. 
 (c) Employee agrees and acknowledges that Employer does not have any adequate remedy at law for the breach or threatened breach by him of this covenant and agrees that Employer may in addition to the other remedies which may be available to
it under this Agreement, file a suit in equity to enjoin Employee from such breach or threatened breach. 
  

 20 

 8. Reasonableness of Restrictions. 
 (a) Employee has carefully read and considered the provisions of Sections 1 through 7 hereof and, having done so, agrees that the restrictions set forth
therein are fair and reasonable and are reasonably required for the protection of the interests of Employer, its officers, directors, stockholders and employees. 
 (b) In the event that, notwithstanding the foregoing, any part of the covenants set forth in Sections 1 through 7 hereof shall be held to be invalid and unenforceable, the court so deciding may reduce or limit the
terms of such provision to allow such provision to be enforced. 
 9. Burden and Benefit. This Agreement shall be binding upon, and
shall inure to the benefit of, Employer and Employee, and their respective heirs, personal and legal representatives, and, in the case of Employer, its successors and assigns. 
 10. Governing Law. In view of the fact that the principal office of Employer is located in the State of North Carolina, it is understood and
agreed that the construction and interpretation of this Agreement shall at all times and in all respects be governed by the laws of the State of North Carolina. 
 11. Severability. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability
of the other provisions hereof. 
 12. Employer. As used herein, the term “Employer” shall also include any corporation
which is at any time the parent or a subsidiary of Employer, or any corporation or entity which is an affiliate of Employer by virtue of common (although not identical) ownership, and for which Employee is providing services in any form during his
employment with Employer or any such other corporation or entity. 
 13. Notices. Any notice required to be given hereunder shall be
sufficient if in writing, and sent by certified or registered mail, return receipt requested, first-class postage prepaid, in the case of Employee, to his address as shown on Employer’s records, and in the case of Employer, to its principal
office in the State of North Carolina. 
 14. Entire Agreement. This Agreement contains the entire agreement and understandings by and
between Employer and Employee with respect to the covenants herein described, and no representations, promises, agreements or understandings, written or oral, not herein contained shall be of any force or effect. Nothing contained in this Agreement
shall be deemed or construed to constitute an agreement by Employer to employ or continue to employ Employee. No change or modification hereof shall be valid or binding unless the same is in writing and signed by the parties hereto. No waiver of any
provision of this Agreement shall be valid unless the same is in writing and signed by the party against whom such waiver is sought to be enforced; moreover, no valid waiver of any provision of this Agreement at any time shall be deemed a waiver of
any other provision of this Agreement at such time nor will it be deemed a valid waiver of such provision at any other time. 
  

 21 

 15. Headings. The headings and other captions in this Agreement are for convenience and reference
only and shall not be used in interpreting, construing or enforcing any of the provisions of this Agreement. 
 16. Effective Date.
This Agreement shall be effective as of the date July 25, 2001. 
 IN WITNESS WHEREOF, Employer and Employee have duly executed this
Agreement as of the day and year first above written. 
  

			
	EMPLOYER:
	
	POZEN Inc.
	
	 /s/ John E. Barnhardt

	Name:	 	John E. Barnhardt
	Title:	 	Vice President, Finance and Administration
	
	EMPLOYEE:
	
	 /s/ John R. Plachetka, Pharm.D.

  

 22 

 SCHEDULE A 
 Inventions, Ideas, Products, Etc. Not Covered in Section 3(i) of the Agreement 
 [Note: If Employee has no such
items to disclose, write “NONE” on this line:     NONE            .] 
  

 23 

 EMPLOYEE TERMINATION STATEMENT 
 1. I am cognizant of my legal obligations, as stated in that certain Non-Disclosure, Invention and Non-Competition Agreement, dated
                ,         , which I signed at the commencement of my employment with respect to confidential
information of POZEN Inc. (the “Company”), and hereby specifically reaffirm all of the provisions stated therein. 
 2. I
understand that my obligation not to use or disclose Company confidential information remains in effect after the termination of my employment with the Company and that if, at any time in the future, I wish to utilize, disclose or publish any
Company confidential information, or if I should be in doubt as to whether any such information may be confidential to the Company, I will, prior to such use or disclosure, obtain the written consent of the Company to do so. I further understand
that such consent may be refused where Company confidential information is involved. 
 3. I understand that, to the extent permitted by law,
any idea, invention, discovery, computer software program or other computer-related equipment or technology, conceived or developed by me in whole or in part, or in which I may have aided in its development during my employment with the Company,
belongs exclusively to the Company. I hereby certify that I have made full disclosure in writing to the Company or have discussed with my supervisor at the Company all of such ideas, inventions, discoveries, computer programs and computer-related
equipment or technology. I further understand that I still have an obligation subsequent to termination of my employment with the Company to execute such papers as the Company may reasonably request to more fully vest in the Company all ownership
rights in the items referenced in this paragraph. 
 4. I hereby certify that all materials related directly or indirectly to my employment
with the Company and all copies thereof, have been returned to my supervisor at the Company. I further certify that no computer listings, programs, object codes, source codes, product development guides, flow-charts or other documents owned by the
Company or provided to or used by me in connection with my employment at the Company, whether in machine-readable form or otherwise, have been retained by me or given to any other third person or entity in anticipation of my employment termination
or for any other reason, and further certify that none of the aforementioned will be removed from the Company’s premises by me. 
  

							
	 ACCEPTED:
	 		 	
			
	 POZEN Inc.
	 		 	
			
	 By:
	 	  
	 	  

		
	  
	 	  

	 Date
	 	Date

  

 24Distribution Agreement

 Exhibit 10.57 
 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 

Confidential Treatment Requested 
 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 240.24b-2. 
 DISTRIBUTION AGREEMENT 
 This DISTRIBUTION AGREEMENT (the “Agreement”) is made
and entered into this 1st day of January, 2005 (the “Effective Date”), by and between DIVERSA CORPORATION, a Delaware corporation with a place of business at 4955 Directors Place, San Diego, California 92121 USA (hereinafter
referred to as “Diversa”), and VALLEY RESEARCH, a corporation with a place of business at 3502 North Olive Road, South Bend, Indiana 46628 USA (hereinafter referred to as “VRi”). Diversa and VRi shall be referred to
individually as a “Party” and collectively as “Parties”. 
 RECITALS 
 WHEREAS, Diversa is a biotechnology company engaged in the production, manufacture, and sale of, among other things, enzymes that have
applications in agricultural, chemical, pharmaceutical, and a wide range of specialty and industrial processes. 
 WHEREAS, VRi is a
company engaged in the business of marketing, selling and supplying, among other things, enzymes and other specialty compounds, for use in various commercial applications. 
 WHEREAS, Diversa desires to license and appoint VRi as a distributor of certain of Diversa’s enzyme products and VRi desires to accept such
appointment on the terms and conditions set forth in this Agreement. 
 NOW THEREFORE, in consideration of the mutual covenants,
representations and warranties hereinafter set forth, Diversa and VRi agree as follows: 
 ARTICLE 1 – DEFINITIONS 
 1.1 “Additional Distributor” has the meaning set forth in Section 4.2. 
 1.2 “Additional Term” means any extension of the term of this Agreement beyond the end of the Initial Term. 
 1.3 “Affiliate” means any corporation, firm, partnership or other entity that directly or indirectly owns or is owned by, or is under
common ownership with a Party to this Agreement or a Third Party, as applicable. For purposes of the preceding definition, “owns,” “owned” and “ownership” shall mean beneficial ownership of more than fifty percent
(50%) of the outstanding voting shares or securities or the ability otherwise to elect a majority of the board of directors or other managing authority. 
  

 Page 1 

 1.4 “Approved Customer” means a customer or segment of customers for a Diversa Enzyme in
the applicable Field within the applicable Territory, as set forth in the Minimum Sales Requirement, as amended from time to time during the term of this Agreement. 
 1.5 “Certificate of Analysis” has the meaning set forth in Section 11.1. 
 1.6
“Confidential Information” means all information disclosed by a Party to the other pursuant to this Agreement, including, without limitation, manufacturing, marketing, financial, personnel, scientific and other business information and
plans, and the material terms of this Agreement, whether in oral, written, graphic or electronic form. 
 1.7 “Current VRi
Technology” has the meaning set forth in Section 14.3. 
 1.8 “Disclosing Party” has the meaning set forth in
Section 13.1. 
 1.9 “VRi Profit” has the meaning set forth in Section 16.3.3. 
 1.10 “Diversa Enzyme Related Technology” has the meaning set forth in Section 14.3. 
 1.11 “Diversa Enzyme” means each enzyme more particularly described on Addendum A attached hereto, under whatever name, mark, or
description Diversa shall hereafter elect to manufacture and sell such enzyme, as amended from time to time pursuant to Article 3. 
 1.12 “Diversa Patent Rights” means any patent or patent application in the Territory owned by or licensed to Diversa (with the right to further license or sublicense) during the term of this Agreement claiming the use,
sale, offer for sale or import of the Diversa Enzymes, either generally or in the applicable Field. 
 1.13 “Diversa
Trademarks” means the trademarks set forth on Addendum E and any worldwide counterpart registered, applied for or in use, as such Addendum E may be amended from time to time by Diversa. 
 1.14 “Exclusive Approved Customer” means each Approved Customer identified as exclusive in the Minimum Sales Requirement. 
 1.15 “Field” means the application area of the applicable Diversa Enzyme described in Addendum B. 
 1.16 “Initial Term” has the meaning set forth in Section 16.1. 
 1.17 “Losses” has the meaning set forth in Section 12.1. 
 1.18 “Minimum Purchase Requirement” means the amount of each Diversa Enzyme set forth in Addendum C that VRi agrees to purchase from
Diversa during the specified time period. 
 1.19 “Minimum Sales Requirement” means the rolling 4-calendar-quarter minimum
requirement for sales of Diversa Enzyme to each Approved Customer, as set forth in Addendum B, as amended each calendar quarter during the term of this Agreement. 
 1.20 “New Enzyme Notice” has the meaning set forth in Section 3.1. 
  

 Page 2 

 1.21 “Product Shipment Date” has the meaning set forth in Section 5.3. 

1.22 “Projected Volume” has the meaning set forth in Section 5.2. 
 1.23 “Purchase Order” has the meaning set forth in Section 5.3. 
 1.24 “Receiving Party” has the meaning set forth in Section 13.1. 
 1.25 “Reformulated Enzyme” has the meaning set forth in Section 10.1. 
 1.26 “Specifications” means the regulatory, manufacturing, quality control and quality assurance procedures, processes, practices,
standards, instructions and any other attributes that are otherwise required in connection with the manufacture of each Diversa Enzyme, as set forth in Addendum D, as amended from time to time by Diversa. Separate Specifications shall be required
for each distinct Diversa Enzyme and shall be added to Addendum D. 
 1.27 “Territory” means such regions and/or countries,
as set forth in the Minimum Sales Requirement, as amended from time to time during the term of this Agreement. 
 1.28 “Third
Party” means anyone other than Diversa or VRi, or their respective Affiliates. 
 ARTICLE 2 – GRANT OF NON-EXCLUSIVE
DISTRIBUTORSHIP 
 2.1 Subject to the terms and conditions of this Agreement, Diversa hereby 
 2.1.1 Grants to VRi a non-exclusive, royalty-free license, without the right to sublicense, (i) under the Diversa Patent Rights solely to
sell and offer for sale Diversa Enzymes and Reformulated Enzymes to Approved Customers for use by such Approved Customers solely in the applicable Field and applicable Territory and (ii) subject to Article 15, to use the Diversa Trademarks
solely on packaging and marketing materials for Diversa Enzymes (but not any Reformulated Enzymes unless required by or expressly agreed upon by Diversa in writing) that are supplied or approved by Diversa solely in connection with the sale and
offer for sale of Diversa Enzymes to Approved Customers; and 
 2.1.2 Appoints VRi, on a non-exclusive basis (except as specifically
set forth herein), as a distributor of Diversa Enzymes to Approved Customers in the applicable Field and applicable Territory. Diversa hereby permits and grants VRi the right to utilize Third Parties approved in writing by Diversa as subcontractors
of VRi with respect to the rights provided in this Section 2.1; provided that VRi will remain responsible for complying with this Agreement and for any such subcontractor’s performance of any of VRi’s responsibilities under
this Agreement. 
 ARTICLE 3 – PRODUCT LISTS 
 3.1 From time to time during the term of this Agreement, Diversa may notify VRi, in writing, of any new, different or additional enzymes which Diversa wishes to add to Addendum A or substitute for a Diversa
Enzyme listed on Addendum A at the time of such notice (a “New Enzyme Notice”). Each such New Enzyme Notice shall include the price(s) and other material terms upon which Diversa proposes to include such enzyme under the terms of this
Agreement. Upon VRi’s request, Diversa shall provide to VRi enzyme characterization and application 

  

 Page 3 

 
information and a reasonable quantity of such enzyme for lab-scale testing in conjunction with providing such New Enzyme Notice. Within thirty (30) days
of its receipt of a New Enzyme Notice (or such longer period, not to exceed an additional sixty (60) days, as VRi shall request in writing for the purpose of field testing and examining such enzyme), VRi shall advise Diversa, in writing,
whether it consents to the addition or substitution of such enzyme onto Addendum A. VRi’s failure to respond within seven (7) days to a New Enzyme Notice shall be deemed an election by VRi not to accept the addition or substitution of such
enzyme. 
 3.2 Upon one hundred twenty (120) days written notice to VRi, Diversa may withdraw or delete an enzyme from the list
of Diversa Enzymes covered by this Agreement in the event (i) Diversa elects to discontinue the manufacture and/or the sale of such Diversa Enzyme in the applicable Field or applicable Territory and/or (ii) Diversa wishes to substitute an
alternative formulation of such Diversa Enzyme to be sold in the applicable Territory. 
 3.3 At Diversa’s request, VRi shall
test the effectiveness of any new enzyme developed by Diversa for use by Approved Customers. VRi shall recommend any potential improvements identified by VRi to the enzymes covered by this Agreement. At Diversa’s sole discretion, enzymes
developed by Diversa and tested by VRi offering increased benefits in pursuing the objective of this Agreement shall be added to or substituted for a Diversa Enzyme listed on Addendum A as specified in Section 3.1. 
 ARTICLE 4 – MINIMUM SALES REQUIREMENT; PRODUCT INQUIRIES 
 4.1 The initial Minimum Sales Requirement as of the Effective Date is attached hereto as Addendum B. Following the Effective Date, VRi shall update the Minimum Sales Requirement before the end of each
subsequent calendar quarter, maintaining a 4-calendar-quarter rolling forecast, subject to the following conditions: 
 4.1.1 VRi shall
be permitted to add new Approved Customers for a Diversa Enzyme in a Field within a Territory to the Minimum Sales Requirement only with the written approval of Diversa; 
 4.1.2 VRi shall be permitted at any time to eliminate one or more Approved Customers for a Diversa Enzyme and the corresponding minimum sales requirement from the Minimum Sales Requirement; 
 4.1.3 Approved Customers and the corresponding minimum sales requirement shall automatically be removed from the Minimum Sales Requirement if
(i) no customer trial occurs within six (6) months from the date such Approved Customer was added to the Minimum Sales Requirement or (ii) no sales are achieved within twelve (12) months from the date such Approved Customer was
added to the Minimum Sales Requirement; 
 4.1.4 Except as provided for in Sections 4.1.2 and 4.1.3, VRi shall not reduce the total
minimum sales requirement for any Diversa Enzyme within any calendar quarter in the Minimum Sales Requirement without the written approval of Diversa. Further, the total minimum sales requirement for each Diversa Enzyme (excluding reductions
as provided for in Sections 4.1.2 and 4.1.3) within any new calendar quarter being forecasted shall not be less than [...***...] percent ([...***...]%) of the average of actual quarterly sales of such Diversa Enzyme based on the actual Purchase
Orders of such Diversa Enzyme from the preceding two calendar quarters without the written approval of Diversa; and 

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 4.1.5 In the event that VRi fails to update the Minimum Sales Requirement within the time period
specified herein, Diversa shall have the right to update the Minimum Sales Requirement without the consent of VRi subject to the guidelines in this Section 4.1. 
 4.2 For each Exclusive Approved Customer in the Minimum Sales Requirement, Diversa shall not, and shall not appoint or license any Third Party as Diversa’s agent, representative, dealer or distributor (an
“Additional Distributor”) to, sell or distribute the applicable Diversa Enzyme to such Exclusive Approved Customer prior to the end of the Initial Term; provided however, that, with respect to each Diversa Enzyme, Diversa shall have
the right, at its sole option, either to sell or distribute itself, or appoint an Additional Distributor to sell or distribute, the applicable Diversa Enzyme in the applicable Territory and/or to Approved Customers and/or restrict in whole or in
part the applicable Territory and/or Approved Customers for the applicable Diversa Enzyme under this Agreement in the event that VRi fails to reach the total Minimum Sales Requirement for the applicable Diversa Enzyme during any two
consecutive calendar quarters. Diversa shall forward or refer to VRi as soon as practical for processing and/or response all inquiries regarding Diversa Enzymes received by Diversa from the corresponding Exclusive Approved Customers. In the event
that an Exclusive Approved Customer states that it desires to purchase such Diversa Enzymes from a supplier other than VRi, Diversa and VRi together shall, in good faith, determine the specific customer issues and how best to respond to the
situation. 
 4.3 Diversa shall have the right to pursue commercial activities, itself and through any Affiliate or Third Party, with
any Approved Customer that is not an Exclusive Approved Customer for the applicable Diversa Enzyme in the Field within the Territory, as set forth in the most recent Minimum Sales Requirement. 
 4.4 Neither VRi nor its Affiliates shall solicit or accept orders for Diversa Enzymes or Reformulated Enzymes from any prospective purchaser for
use outside the applicable Field and/or outside the applicable Territory or deliver or tender (or cause to be delivered or tendered) Diversa Enzymes or Reformulated Enzymes to any purchaser for use (or where VRi knows or has reason to believe that
such purchaser intends to use such Diversa Enzymes or Reformulated Enzymes) outside the applicable Field and/or outside the applicable Territory, except with Diversa’s prior written approval. If VRi receives any order for Diversa Enzymes or
Reformulated Enzymes from a prospective purchaser for use outside the applicable Field and/or outside the applicable Territory, VRi shall immediately notify Diversa hereunder of the details of such order. While Diversa shall have the final decision
on how best to proceed with the order, after discussion with VRi, Diversa shall in good faith consider whether the addition of said customer as an Approved Customer within the applicable Territory is in both Parties’ interest. 
 4.5 VRi shall forward or refer to Diversa as soon as practical all inquiries regarding Diversa Enzymes received by VRi from customers other than
the corresponding Approved Customers. Diversa shall consider how best to handle such inquiries. It is understood by VRi that Diversa has no obligation to have VRi handle such potential business and that any price quote, sale, offer or distribution
of a Diversa Enzyme by VRi to a customer other than a Approved Customer shall constitute a material breach of this Agreement. 
 ARTICLE 5
– PROCESSING OF ORDERS 
 5.1 VRi shall submit Purchase Orders for the purchase of Diversa Enzymes by mail, facsimile or
electronic mail to the following Diversa contact, which may be changed upon written notice by Diversa to VRi: 
  

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 Diversa Customer Service 
 4955 Directors Place 
 San Diego, California 92121-1609 
 telephone: (858) 526-5323 
 fax: (858) 526-5823 
 e-mail: customerservice@diversa.com 
 5.2 Volume Projection. No later than the date
that is two (2) months prior to the first Product Shipment Date with respect to a Diversa Enzyme, and no later than the first day of each calendar quarter thereafter, VRi shall provide Diversa with quarterly estimates of the volume of each
Diversa Enzyme that VRi anticipates that it will require each quarter during the subsequent twenty-four (24) months (the “Projected Volume”). The Projected Volume will constitute VRi’s good faith estimate of volumes for the
applicable period and will not constitute a commitment to buy by VRi or a commitment to sell by Diversa. 
 5.3 Purchase
Orders. VRi shall provide Diversa with written purchase orders for each Diversa Enzyme (each a “Purchase Order”), which Diversa shall either confirm or reject in writing or via electronic mail within five (5) business days after
receipt thereof, and VRi shall specify the scheduled shipment date in such purchase orders (each such date, a “Product Shipment Date”), provided that the Product Shipment Date is no less than one (1) month after the date of
such Purchase Order; provided further, that VRi may request a shorter lead time, and, if the related Purchase Order is accepted by Diversa, Diversa shall use its commercially reasonable efforts to attempt to meet such earlier date but shall
not be in breach of this Agreement or be liable to VRi or to any Third Party for failure to do so. Each Purchase Order shall include the quantity of Diversa Enzyme to be made available for shipping, Scheduled Shipment Date, and shipping
instructions. Each Purchase Order provided to Diversa hereunder shall constitute a binding commitment by VRi to purchase Diversa Enzyme as specified in the Purchase Order on the terms and conditions herein. Diversa shall use commercially reasonable
efforts to maintain sufficient levels of inventory of the applicable Diversa Enzyme in order to comply with Purchase Orders. If any term of any Purchase Order conflicts with any term of this Agreement, the applicable term set forth in this Agreement
shall prevail. 
 ARTICLE 6 – SHIPPING AND DELIVERY; RISK OF LOSS 
 6.1 Diversa shall use its commercially reasonable efforts to timely ship all Diversa Enzymes ordered by VRi in accordance with VRi’s
instructions in the applicable Purchase Order, subject to Section 6.2. Diversa shall not be liable to VRi or to Third Parties who purchase Diversa Enzymes from VRi for any loss or damage occasioned by its failure to make delivery or for any
delay in making delivery when such failure or delay results from causes or events beyond Diversa’s reasonable control, including, but not limited to, fires, floods, accidents or other acts of God, strikes, labor disputes or difficulties, acts
or requirements of government or civil authority, riot, war, terrorism, embargo, truck or car shortage or other transportation delay or difficulty or inability to obtain or scarcity of labor, component parts or raw materials. In the event of any
such occurrence or event precluding shipment in accordance with the applicable Purchase Order, Diversa reserves the right to apportion available supplies of Diversa Enzymes among its customers, including VRi, in any manner that Diversa, in its sole
judgment, shall deem fair and reasonable. In the event of delay caused by any such occurrence or event, the shipment date(s) shall be postponed for a period of time equal to the time required to remedy, correct or alleviate such cause or event and
the Minimum Sales Requirement timeline shall be similarly adjusted. 
  

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 6.2 Shipping of Product. Diversa shall package all Diversa Enzymes in accordance with the
Specifications and make available for shipping to VRi all Diversa Enzymes purchased by VRi hereunder in accordance with the Specifications and the applicable Purchase Order FCA at the site of Diversa’s manufacture of the applicable Diversa
Enzyme (Free Carrier, as defined by Incoterms 2000). If VRi requests and Diversa agrees, Diversa will arrange the shipment and insurance of Diversa Enzymes purchased by VRi, using carriers approved by VRi, and VRi shall reimburse Diversa the cost of
such shipment and insurance as reflected on the invoice provided in connection with the applicable shipment provided however, that in all cases the risk of loss associated with the Diversa Enzymes shall pass from Diversa to VRi FCA at the
site of Diversa’s manufacture of the applicable Diversa Enzyme. Diversa shall retain, label, date and store samples of each shipment of Diversa Enzymes in accordance with the Specifications sufficient for Third Party testing of such samples
that may be required subsequent to Diversa Enzyme delivery in accordance with Section 6.3 below. Diversa shall give prompt notice to VRi as soon as Diversa becomes aware of any anticipated delay in the shipment of any Diversa Enzyme, and shall
state in such notice the date on which Diversa can make such Diversa Enzyme available to be shipped. 
 6.3 Non-Conforming Shipment.
VRi shall be entitled to test and evaluate all Diversa Enzymes for their conformity to the Specifications upon the arrival of the Diversa Enzymes at the location specified in the applicable Purchase Order. All claims for non-conforming shipments
shall be made in writing to Diversa within fifteen (15) days upon the arrival of the Diversa Enzymes at the location specified in the applicable Purchase Order. Any claims not made within such period shall be deemed waived and released. Upon
receipt of a written claim for a non-conforming Diversa Enzyme shipment, the Parties shall first work collaboratively in good faith to resolve the claim. In the event the Parties can not resolve the claim within fifteen (15) days, Diversa shall
submit a retained sample of the applicable Diversa Enzyme shipment to a mutually acceptable Third Party laboratory. Such Third Party laboratory shall determine whether such Diversa Enzyme conforms to the Specifications, and the Parties agree that
such laboratory’s determination shall be final and determinative. The Party against whom the Third Party tester rules shall bear all costs of the Third Party testing. VRi’s exclusive remedy against Diversa for non-conforming Diversa
Enzymes shall be the return and replacement, at Diversa’s expense, of all Diversa Enzymes determined by the Third Party laboratory to be non-conforming (including return and outbound freight of the new shipment, and if no new product is
shipped, then reimbursement of prior freight paid by VRi). DIVERSA SHALL NOT, IN ANY EVENT, BE LIABLE TO DISTRIBUTOR FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES INCURRED UNDER ANY LEGAL OR EQUITABLE THEORY WITH RESPECT TO THE
MANUFACTURE, PROMOTION, USE, SALE AND/OR DISTRIBUTION OF THE DIVERSA ENZYMES OR REFORMULATED ENZYMES. 
 ARTICLE 7 – PRODUCT PRICING,
INVOICING AND PAYMENT 
 7.1 During the term of this Agreement, Diversa shall sell Diversa Enzymes to VRi at those prices
specified on Addendum A attached hereto, as such prices are amended pursuant to this Article 7. Other applicable fees, costs, or expenses associated with the marketing and sale of Diversa Enzymes hereunder, including, without limitation, those
for storage, handling, shipping, insurance, and/or taxes, are not included in such prices and are provided for separately herein. 
  

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 7.2 Diversa shall have and hereby reserves the absolute right to increase the prices at which
Diversa Enzymes will be sold to VRi after the end of the Initial Term; provided however, that (i) VRi shall be given sixty (60) days’ prior written notice of any such price increase, (ii) no increase in prices shall be
effective as to any quantity of Diversa Enzyme subject to any Purchase Order accepted by Diversa prior to such notice and (iii) the price shall not increase by more than [...***...] percent ([...***...]%) in any twelve (12) month period.
Each such price increase shall be reflected on an updated Addendum A delivered to VRi by Diversa. 
 7.3 Diversa shall prepare and
deliver to VRi commercial invoices for all Diversa Enzymes sold to VRi hereunder on a shipment-by-shipment basis. Payment for each shipment shall be made within forty-five (45) days of the later of (a) the date the applicable quantity of
Diversa Enzyme is made available for shipping to VRi and (b) the receipt by VRi of Diversa’s invoice for such shipment. In the event that any payment due hereunder is not made when due, the payment shall bear interest at the rate of
eighteen percent (18%) per year or the maximum rate permitted by law if such rate is lower than the rate of eighteen percent (18%) per year, compounded continuously, until VRi pays such amount with all accrued interest. The payment of such
interest shall not preclude a Party from exercising any other rights it may have as a consequence of the lateness of any payment. 
 ARTICLE 8 – DUTIES AND RESPONSIBILITIES OF DIVERSA 
 8.1 In addition to the obligations of Diversa set forth
elsewhere herein, it shall be the duty and responsibility of Diversa to provide, and Diversa hereby warrants and covenants that it will provide to VRi, via telephone, such technical assistance and advice with regard to the Diversa Enzymes and, at
Diversa’s sole discretion, the evaluation and testing of such Diversa Enzymes, as may be reasonably requested, from time to time, by VRi. 
 ARTICLE 9 – DUTIES AND RESPONSIBILITIES OF DISTRIBUTOR 
 9.1 VRi shall use its best efforts to promote and
maximize the sales of Diversa Enzymes to the corresponding Approved Customers. Further, VRi shall not develop, promote, recommend, use, sell, offer for sale or distribute to Approved Customers for use in the applicable Field any product manufactured
by any other commercial entity which might compete, directly or indirectly, with a Diversa Enzyme in the applicable Field during the Term and for a period of one (1) year thereafter; provided however, that in the event Diversa notifies
VRi hereunder that it plans to withdraw or delete a Diversa Enzyme and Diversa does not provide either (i) a New Enzyme Notice as provided for in Section 3.1 to replace the applicable Diversa Enzyme or (ii) an alternative formulation
of such Diversa Enzyme as provided for in Section 3.2, then, upon thirty (30) days’ written notification to Diversa, VRi shall be released from the restrictions set forth in this Section 9.1 with respect to the applicable Diversa
Enzyme. 
 9.2 In addition to the obligations of VRi set forth elsewhere herein, it shall be the duty and responsibility of VRi to,
and VRi hereby warrants and covenants that it will: 
 9.2.1 provide Diversa with a marketing plan with respect to the Diversa Enzymes
by May 1, 2005. Such marketing plan shall include: (a) product positioning information for the Diversa Enzymes and Reformulated Enzymes in the applicable Territory; (b) internal and/or external test results for the Diversa Enzymes and
Reformulated Enzymes; (c) a description of all promotional efforts planned to achieve sales targets; and (d) a comparison of market positioning of the Diversa Enzymes, Reformulated Enzymes and competing products. All information and data
in such marketing plan shall be considered the Confidential Information of VRi under this Agreement; 

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 9.2.2 at all times during the term of this Agreement maintain a facility with the proper storage
conditions for storage of the Diversa Enzymes according to their respective Specifications and, at Diversa’s request, provide Diversa with certification of the foregoing; 
 9.2.3 use reasonable commercial efforts to promote the use of the Diversa Enzymes in the applicable Field within the applicable Territory;

 9.2.4 advise and consult with Diversa with respect to any modification(s) or other improvement(s) which VRi believes (a) are
necessary to comply with statutes, laws or regulations applicable to the Diversa Enzymes or (b) would improve the usefulness or utility of the Diversa Enzymes for the applicable Field; 
 9.2.5 advise Diversa promptly of any suit, claim or proceeding known to VRi wherein it is claimed or alleged that any Diversa Enzyme has been the
cause, directly or indirectly, of any personal injury, death or damage to property; 
 9.2.6 conduct its business in accordance with
standard, accepted business practices within the applicable Territory; and 
 9.2.7 pay and discharge, at VRi’s own cost and
expense, any and all expenses, charges, fees and taxes that may arise from or be levied or imposed upon or by reason of VRi’s business within the applicable Territory. 
 ARTICLE 10 – DISTRIBUTOR’S REFORMULATION RIGHTS 
 10.1 For each
Diversa Enzyme identified in Addendum A by Diversa as acceptable to be diluted, blended and/or reformulated (a “Reformulated Enzyme”), VRi shall be free to dilute, blend, and/or reformulate the applicable Diversa Enzyme as required for
distribution in the applicable Field (or as any Approved Customer may require), and, subject to any applicable terms hereof, shall be required to re-label such Reformulated Enzyme; provided however, that VRi shall in no way attempt to reverse
engineer any Diversa Enzyme or Reformulated Enzyme. 
 10.2 VRi will be required to inform Diversa in writing about all private labels
used in connection with a Reformulated Enzyme. Upon request by Diversa, VRi shall include information approved in writing by Diversa on the label of the Reformulated Enzyme identifying that a Diversa product is utilized in the Reformulated Enzyme.
VRi will also be required to send Diversa a copy of all technical bulletins and/or other product literature which contains information on Diversa Enzymes or Reformulated Enzymes. All information provided to Diversa by VRi with respect to its private
labeling of Diversa Enzymes and/or Reformulated Enzymes shall be considered the Confidential Information of VRi under this Agreement. 
 ARTICLE 11 – REPRESENTATIONS AND WARRANTIES; DISCLAIMERS 
 11.1 Diversa warrants that each lot of Diversa
Enzymes made available for shipping hereunder shall, at such time, meet the Specifications, and each shipment shall be accompanied by a Certificate of Analysis (“Certificate of Analysis”) attesting that the lot of Diversa Enzymes meets the
Specifications. 
  

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 11.2 Diversa warrants to VRi that all Diversa Enzymes made available for shipping hereunder will
be free and clear of any Third Party lien or encumbrance, and that Diversa has good title thereto and all necessary authority to ship such Diversa Enzymes. Diversa further warrants to VRi that the instructions for handling and use of the Diversa
Enzymes provided by Diversa to VRi hereunder as part of the Specifications shall be appropriate for allowing the safe and proper handling and use of the Diversa Enzymes. 
 11.3 EXCEPT AS EXPRESSLY SET FORTH HEREIN, DIVERSA MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY AS TO THE MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR NON-INFRINGEMENT WITH RESPECT TO THE DIVERSA ENZYMES, REFORMULATED ENZYMES, DIVERSA PATENT RIGHTS AND DIVERSA TRADEMARKS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, DIVERSA EXPRESSLY DISCLAIMS ANY REPRESENTATION OR
WARRANTY THAT THE DISTRIBUTION, MARKETING OR SALE OF ANY DIVERSA ENZYME OR REFORMULATED ENZYME BY VRI, OR THE USE OF ANY DIVERSA ENZYME OR REFORMULATED ENZYME BY ANY CUSTOMER OF VRI, WILL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY.

 11.4 Except as expressly provided in Section 2.1, nothing in this Agreement shall be construed as conferring on VRi any
express or implied license or option to license the Diversa Enzymes, the Diversa Patent Rights, the Diversa Trademarks, or any other intellectual property owned or controlled by Diversa, 
 11.5 As of the Effective Date, Diversa has not received any written notice alleging that the manufacture, use or sale of the Diversa Enzymes
infringes the patent rights of any Third Party. During the term of this Agreement, Diversa shall provide VRi with written notice within five (5) business days of its receipt of any such written notice. 
 11.6 In reselling Diversa Enzymes, VRi shall not make, extend, or provide to any user thereof any warranty or representation (express or implied)
with respect thereto. 
 ARTICLE 12 – INDEMNIFICATION 
 12.1 VRi covenants and agrees to indemnify, defend and hold harmless Diversa, its Affiliates and their respective officers, directors, employees
and agents from and against any and all losses, liabilities, costs or expenses (including attorney’s fees and other costs of defense) (collectively “Losses”) incurred by any such party as a result of any Third Party claims, actions or
demands based on injury, sickness, disease or death sustained by any person or for any damage, loss of use, or destruction of any property (whether of VRi’s or any Third Party) arising out of or relating in any way to: (a) VRi’s
reformulation of any Diversa Enzyme; (b) VRi’s distribution, use, storage, transportation, handling or sale of any Diversa Enzyme or Reformulated Enzyme; (c) the breach by VRi of any representation, warranty, covenant or other
provision of this Agreement, or (d) the actual or alleged negligence or other act or omission of VRi, provided however, that such indemnification right shall not apply to any Losses to the extent directly attributable to the negligence
or intentional misconduct of a party seeking indemnification under this Section 12.1. 
 12.2 VRi shall indemnify and hold
harmless Diversa from and against any and all Losses arising out of or resulting from unauthorized warranties or representations made by VRi. 
  

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 12.3 Diversa shall indemnify, defend and hold harmless VRi, its Affiliates and their respective
officers, directors, employees and agents from and against any and all Losses incurred by any such party as a result of Third Party claims arising from any breach of the warranties contained in Section 11.2. 
 12.4 Any party seeking indemnification under this Article 12 shall promptly notify the indemnifying Party of any claim in respect of which
such party seeks indemnification, and the indemnifying Party shall assume the defense thereof. An indemnified party shall have the right to retain its own counsel at its own expense. The indemnification obligations under this Article 12 shall
not apply to amounts paid in settlement of any claim or action if such settlement is effected without the consent of the indemnifying Party. The failure to deliver notice to the indemnifying Party within a reasonable time after the commencement of
any such claim or action shall not relieve the indemnifying Party of any liability to the indemnified party under this Article 12, except to the extent the indemnifying Party has been prejudiced by such failure to give notice. 
 ARTICLE 13 – CONFIDENTIALITY 
 13.1 Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, the Parties agree that, during the Initial Term plus any Additional Terms of this Agreement and for the five
(5) year period immediately following the term of this Agreement, each Party (the “Receiving Party”) shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose any Confidential Information
furnished to it by, or otherwise belonging to, the other Party (the “Disclosing Party”) pursuant to this Agreement. Each Party may use Confidential Information of the other Party only to the extent required to accomplish the purposes of
this Agreement. The Receiving Party will use at least the same standard of care (but at least reasonable care) as it uses to protect proprietary or confidential information of its own to ensure that its employees, agents, consultants and other
representatives do not disclose or make any unauthorized use of such proprietary or confidential information. The Receiving Party will promptly notify the other upon discovery of any unauthorized use or disclosure of the Disclosing Party’s
Confidential Information. 
 13.2 The obligations of confidentiality and non-use contained in Section 13.1 will not apply to the
extent it can be established by the Receiving Party by competent written proof that such Confidential Information: 
 13.2.1 is now, or
hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or available; 
 13.2.2 is
known by the Receiving Party at the time of receiving such information, other than under confidentiality, as evidenced by its records; 
 13.2.3 is independently developed by the Receiving Party without use of the Disclosing Party’s Confidential Information; 
 13.2.4 is hereafter furnished to the Receiving Party by a Third Party, as a matter of right and without restriction on disclosure; or 
 13.2.5 is the subject of a written permission to disclose provided by the Disclosing Party. 
  

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 13.3 The Parties agree that this Agreement and the terms hereof will be considered Confidential
Information of both Parties. Notwithstanding the foregoing, either Party may disclose such terms as are required to be disclosed under strictures of confidentiality in connection with fund raising or financing efforts and merger and acquisition
activities to investors, lenders and acquirors and potential investors, lenders and acquirors or as otherwise required pursuant to applicable law (including, without limitation, securities laws). The Parties will consult with each other on the
provisions of this Agreement to be redacted in any filings made by the Parties with the Securities and Exchange Commission or as otherwise required by law. 
 13.4 Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the following instances: 
 13.4.1 to fulfill such Party’s obligations under this Agreement; 
 13.4.2 regulatory filings; 
 13.4.3 prosecuting or defending litigation; 
 13.4.4 complying with applicable court orders or governmental
regulations; or 
 13.4.5 disclosure to Affiliates, employees, consultants, agents or other Third Parties in connection with due
diligence or similar investigations by such Third Parties, in each case who agree to be bound by similar terms of confidentiality and non-use at least equivalent in scope to those set forth in this Article 13. 
 Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to
Sections 13.4.3 or 13.4.4, it will seek to secure confidential treatment of such information at least as diligently as such Party would use to protect its own Confidential Information. 
 ARTICLE 14 – INTELLECTUAL PROPERTY RIGHTS 
 14.1 VRi shall not
perform any act or omit to perform any act which might result in any infringement of any of the Diversa Patent Rights or the Diversa Trademarks. VRi agrees to notify Diversa of any known or suspected infringement by a Third Party of the Diversa
Patent Rights or the Diversa Trademarks in respect of the Diversa Enzymes that comes to VRi’s attention. 
 14.2 Diversa is the
sole owner of all right, title and interest in and to the Diversa Patent Rights and Diversa Trademarks. VRi shall assist Diversa in complying with any formalities to protect the Diversa Patent Rights and the Diversa Trademarks including execution of
any documents reasonably requested by Diversa. VRi shall also cooperate with Diversa in obtaining any required registrations or making any filings in any country to protect the Diversa Patent Rights and the Diversa Trademarks from unlawful use. The
costs for complying with this provision shall be borne by Diversa. 
 14.3 Diversa recognizes that in the process of diluting,
blending and/or reformulating a Diversa Enzyme to create a Reformulated Enzyme, as more fully described in Section 10.2, VRi may utilize inventions, processes, techniques, know-how, trade secrets and other intellectual properties which have
been independently developed by VRi and which relate to VRi’s current 

  

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dilution, blending and/or reformulation processes (the “Current VRi Technology”). With respect to any improvements to the Current VRi Technology
made solely by VRi in connection with the diluting, blending and/or reformulating of a Diversa Enzyme pursuant to Section 10.2, which improvements are applicable specifically to the Diversa Enzymes (“Diversa Enzyme Related
Technology”), VRi shall, and it hereby does, grant to Diversa a fully-paid, perpetual, irrevocable, sub-licensable, non-exclusive license to such Diversa Enzyme Related Technology for all uses. With respect to any VRi patent rights anywhere in
the world that claim the manufacture, use or sale of any formulation of a Diversa Enzyme, VRi shall, and it hereby does, grant to Diversa a fully-paid, perpetual, irrevocable, sub-licensable, non-exclusive license to such patent rights for all uses,
subject to the license granted to VRi hereunder. 
 ARTICLE 15 – QUALITY CONTROL OF TRADEMARKS 
 15.1 VRi agrees that VRi’s use of the Diversa Trademarks will inure solely to the benefit of Diversa and does not give VRi any right, title
or interest for VRi in the Diversa Trademarks other than the license granted under this Agreement. 
 15.2 The use of Diversa
Trademarks on Diversa Enzymes offered for sale or sold by VRi and related packaging and marketing materials shall conform to quality standards and specifications for packaging and quality control of the Diversa Enzymes as provided in Diversa
trademark usage policies, as in effect from time to time. All uses by VRi of the Diversa Trademarks shall be provided to Diversa for approval prior to their first dissemination and shall not be disseminated without Diversa’s prior approval in
writing or via electronic mail, which approval shall not be unreasonably withheld or delayed. 
 15.3 VRi agrees that it will not
contest, oppose or challenge Diversa’s ownership of the Diversa Trademarks. VRi agrees that it will do nothing to impair Diversa’s ownership or rights in the Diversa Trademarks. In particular, VRi will not register or attempt to register
the Diversa Trademarks in any jurisdiction and will not oppose Diversa’s registration of the Diversa Trademarks, alone or with other words or designs, in any jurisdiction. 
 ARTICLE 16 – TERM AND TERMINATION 
 16.1 This Agreement shall
commence on the Effective Date and shall continue in effect, subject to termination as hereinafter provided, until December 31, 2007 (the “Initial Term”). 
 16.2 Diversa and VRi agree that they will meet at least one hundred eighty (180) days prior to the end of the Initial Term or any Additional Term to discuss, in good faith, a potential extension of this
Agreement. 
 16.3 This Agreement is subject to termination under the following circumstance(s) and in the following manner(s):

 16.3.1 Should a Party believe the other Party to be in material default of any material term of this Agreement, it shall give the
defaulting Party specific, written notice of the default. If the defaulting Party fails to cure such default within sixty (60) days (or, in case of any failure to make payment when due, thirty (30) days) of its receipt of notice of default
(or fails within such period to initiate efforts reasonably calculated promptly to lead to the cure thereof), the non-defaulting Party shall have the right and option immediately to terminate this Agreement effective immediately upon written notice
to the defaulting Party. 
  

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 16.3.2 Upon the bankruptcy, insolvency or dissolution of a Party, this Agreement shall be subject
to immediate termination by the other Party upon written notice. 
 16.3.3 At any time during the Additional Term (if the Agreement is
renewed for an Additional Term in accordance with Section 16.2), Diversa may terminate this Agreement at its option and upon sixty (60) days’ prior written notice to VRi; provided however, that (a) for each Approved
Customer whose Minimum Sales Requirement has been achieved by VRi during the 4-calendar-quarter period prior to such notice of termination by Diversa, Diversa shall make a one-time payment to VRi equal to [...***...]% of VRi’s profit from sales
of Diversa Enzymes made to such Approved Customers by VRi during the preceding 4-calendar-quarter period (“VRi Profit”) and (b) for each Approved Customer whose Minimum Sales Requirement has not been achieved by VRi during the
4-calendar-quarter period prior to such notice of termination by Diversa, Diversa shall make a one-time payment to VRi equal to [...***...]% of the VRi Profit. VRi Profit shall be calculated as the revenue received from the applicable Approved
Customers for sales of Diversa Enzymes minus all costs of VRi associated with or allocable to the Diversa Enzymes and support for the applicable Approved Customer, including, but not limited to, cost of goods, sales, general and administration costs
of the Diversa Enzymes. In the event of termination pursuant to this Section 16.3.3, the license granted to VRi pursuant to Section 2.1 shall be extended for six (6) months from the date of such termination in order to allow VRi the
opportunity to sell any remaining inventory of Diversa Enzymes or Reformulated Enzymes. 
 16.3.4 Diversa may terminate this
Agreement, immediately upon written notice to VRi, should VRi fail to purchase the minimum amount of Diversa Enzyme during the applicable time period, as specified in the Minimum Purchase Requirement (set forth in Addendum C). 
 16.3.5 Diversa may terminate this Agreement, upon ninety (90) days’ written notice to VRi, should Diversa elect to discontinue entirely
its activities for the Diversa Enzymes within the applicable Field. 
 16.3.6 VRi may terminate this Agreement, upon ninety
(90) days’ written notice to Diversa; provided however, that Diversa shall have the right, at its option and without any compensation to VRi, immediately to appoint an Additional VRi and/or restrict in whole or in part the
applicable Territory and Approved Customers for the Diversa Enzymes. 
 16.4 Upon termination of this Agreement (or at the end of the
six (6) month period specified in Section 16.3.3 in the event of termination thereunder), VRi shall return or dispose of any Diversa Enzymes in accordance with the instructions of Diversa and shall destroy all Reformulated Enzymes in
accordance with applicable law, and, at Diversa’s request, shall present Diversa with certification with regard to such destruction. If Diversa terminates this Agreement under Section 16.3.3 or 16.3.5 and instructs VRi to return any
Diversa Enzymes pursuant to this Section 16.4, Diversa shall (a) refund to VRi the purchase price of such quantity of returned Diversa Enzymes and (b) reimburse VRi for all reasonable and documented shipping costs (both original and
return shipping) actually paid by VRi with respect to such quantity of returned Diversa Enzymes. In the event of termination or expiration of this Agreement, the Parties shall return or destroy all forms of Confidential Information provided to them
under this Agreement by the other Party, within thirty (30) days after such termination or expiration, provided, however, that each Party may retain one copy of such Confidential Information for the sole purpose of use in any litigation
resulting from this Agreement or the activities undertaken pursuant to this Agreement. 

	***	Confidential Treatment Requested 

  

 Page 14 

 16.5 Expiration or termination of this Agreement shall not affect any rights or obligations of
either Party accruing prior to such expiration or termination. Upon expiration or termination of this Agreement, all rights and obligations of the Parties under this Agreement shall terminate, except that the terms of this Article 16 (including
the provisions referenced in this Section 16.5) and Articles 1, 12, 13 and 17 and Sections 6.3 (last sentence only), 11.3, 11.4 and 14.3 of this Agreement shall survive expiration or termination of this Agreement. 
 ARTICLE 17 – GENERAL 
 17.1
Neither Party may assign or transfer to any Third Party their rights, benefits, duties or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided
however, that each Party may assign this Agreement and its rights and obligations hereunder without the other Party’s consent in connection with the transfer or sale of all or substantially all of the business of the Party to which this
Agreement relates, whether by merger, sale of stock, sale of assets or otherwise; provided however, that VRi shall not be permitted to assign this Agreement to any Third Party that Diversa deems in good faith to be a competitor of Diversa.
Should either Party wish to make an assignment or transfer under the terms of this Article 21, such Party shall so notify the other Party. The failure of the Party of whom consent is requested to respond to such request in writing and, in the
case of a refusal of consent, to state the reasons therefor, within thirty (30) days of its receipt of such request, shall be construed as an unconditional consent to the request. Nothing herein contained to the contrary, the rights, benefits,
duties and obligations of the Parties hereto shall bind and inure to the benefit of the Parties and their permitted successors and assigns. 
 17.2 This Agreement sets forth the entire understanding of the Parties with respect to the subject matter hereof and supersedes any and all prior agreements, arrangements and understandings relating to the subject matter hereof.

 17.3 This Agreement shall be construed in accordance with the laws of the State of California without regard to its conflict of
laws principles. 
 17.4 In any dispute arising from or related to this Agreement, the prevailing Party shall be entitled to its
reasonable attorneys’ fees and other costs and expenses, including, without limitation, reasonable expert witness fees and costs, incurred as the result of such dispute. 
 17.5 VRi shall at all times be considered an independent contractor of Diversa. Nothing contained in this Agreement shall be construed to
constitute or create a partnership or joint venture between Diversa and VRi. VRi agrees that it will not represent itself as acting on Diversa’s behalf, whether as agent, joint venturer, or otherwise. Neither VRi nor Diversa shall assume or
purport to assume any obligations or incur any commitment on the other Party’s behalf. 
 17.6 The failure of a Party to insist
upon strict performance by the other of the terms and conditions of this Agreement, or its failure or delay to exercise any right or remedy granted it hereunder, shall not release the other Party of its obligation(s) to observe the covenants,
responsibilities, and duties imposed upon it by the terms of this Agreement and shall not constitute a waiver of the rights and remedies granted it hereunder or preclude it from requiring the other Party to perform in strict accordance with the
terms hereof. 
  

 Page 15 

 17.7 Any notice given under this Agreement to either Party shall be given in writing. Any such
notice shall be deemed to be given when sent via confirmed facsimile or mailed to the Party by registered or certified mail, postage prepaid, addressed to that Party at the facsimile number or address set forth for that Party below, or at such other
facsimile number or address as the Party may hereafter designate (by written notice provided in accordance with this Article 17) as its facsimile number or address for purposes of notice hereunder. Notices shall be delivered: 
  

					
	If to Diversa:	    	Diversa Corporation	 	
		    	 4955 Directors Place

		    	 San Diego, California 92121

		    	 Attention:
	 	Carolyn Erickson
		    	 Telephone:
	 	(858) 526-5104
		    	 Facsimile:
	 	(858) 526-5604
			
	With a copy to:	    		 	
			
		    	Diversa Corporation	 	
		    	 4955 Directors Place

		    	 San Diego, California 92121 USA

		    	 Attention:
	 	Patrick McCroskey
		    	 Telephone:
	 	(858) 526-5179
		    	 Facsimile:
	 	(858) 526-5679
			
	If to VRi:	    	Valley Research	 	
		    	 3502 North Olive Road

		    	 South Bend, Indiana 46628 USA

		    	 Attention:
	 	Art Sears
		    	 Telephone:
	 	(574) 232-5000
			
		    	 Facsimile:
	 	(574) 232-2468

 17.8 Other than with regard to the addendums to this Agreement, which may be amended as
described herein, this Agreement shall not be modified, amended, changed or altered except by a writing signed by the Parties or their duly authorized agents. This Agreement may not be modified or supplemented by any purchase order, change order,
acknowledgment, order acceptance, standard terms of sale, invoice or the like. 
 17.9 Each and every covenant and agreement contained
in this Agreement is, and shall be construed to be, a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to any Party or circumstances shall to any extent be declared invalid and/or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement, or the application of such term or provision to Parties or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby.

 17.10 VRi agrees not to export, directly or indirectly, any U.S. source technical data acquired from Diversa or any products
utilizing such data to countries outside the United States of America, which export may be in violation of the United States of America’s export laws or regulations. 
  

 Page 16 

 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 Page 17 

 IN WITNESS WHEREOF, Diversa and VRi have executed this Agreement in multiple counterparts, each of
which shall be considered an original, but all of which shall constitute but one and the same agreement, as of the day and year first set forth above. 
  

			
	DIVERSA CORPORATION
		
	 By:
	 	 /s/ William H. Baum

	 Name:
	 	 William H. Baum

	 Title:
	 	 Executive Vice President

	
	VALLEY RESEARCH
		
	 By:
	 	 /s/ Arthur E. Sears

	 Name:
	 	 Arthur E. Sears

	 Title:
	 	 President & CEO

  

 Page 18 

 ADDENDUM A 
 DIVERSA ENZYMES 
  

									
	Effective Date:	  	January 1, 2005	 	 	  	 	  	 
	 Diversa Enzyme
	  	Reformulation
Acceptable	 	Container Description	  	Minimum Order
(Units)	  	Base Price (US$/Unit)1
	 [...***...]
	  	[...***...]	 	1 ton tote	  	1	  	$[...***...]
	 [...***...]
	  	[...***...]	 	1 ton tote	  	1	  	$[...***...]
	 [...***...]
	  	[...***...]	 	1 ton tote	  	1	  	$[...***...]

	1	FCA at Fermic S.A. de C.V., Mexico City, Mexico (Free Carrier, as defined by Incoterms 2000)

	***	Confidential Treatment Requested 

  

 A-1 

 ADDENDUM B 
 MINIMUM SALES REQUIREMENT 
  

																			
	Effective Date:	  	January 1, 2005	 	 	 	 	 	 	 	 	  	Minimum Sales Requirement (US Dollars)
	 Diversa Enzyme
	  	Field	 	Territory	 	Approved
Customer	 	Status	 	 	  	Q1 2005	 	Q2 2005	 	Q3 2005	 	Q4 2005
	 [...***...]
	  	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]	 		  	—  	 	—  	 	—  	 	—  
		  		 		 		 		 		  	 	 	 	 	 	 	 
		  		 		 		 		 	TOTAL:	  	—  	 	—  	 	—  	 	—  
		  		 		 		 		 		  	 	 	 	 	 	 	 
										
	 [...***...]
	  	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]	 		  	—  	 	—  	 	—  	 	—  
		  	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]	 		  	—  	 	—  	 	—  	 	—  
		  		 		 		 		 		  	 	 	 	 	 	 	 
		  		 		 		 		 	TOTAL:	  	—  	 	—  	 	—  	 	—  
		  		 		 		 		 		  	 	 	 	 	 	 	 
										
	 [...***...]
	  	[...***...]	 	[...***...]	 	...***...	 	[...***...]	 		  	$[...***...]	 	$[...***...]	 	$[...***...]	 	$[...***...]
		  	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]	 		  	$[...***...]	 	$[...***...]	 	$[...***...]	 	$[...***...]
		  	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]	 		  	$[...***...]	 	$[...***...]	 	$[...***...]	 	$[...***...]
		  		 		 		 		 		  	 	 	 	 	 	 	 
		  		 		 		 		 	TOTAL:	  	$[...***...]	 	$[...***...]	 	$[...***...]	 	$[...***...]
		  		 		 		 		 		  	 	 	 	 	 	 	 
		  		 		 		 		 		  		 		 		 	

	*	[...***...] and [...***...] Minimum Sales Requirement will be set no later than May 1, 2005. No sales are required prior to May 1, 2005. 

	**	[...***...] Minimum Sales Requirement is based on Diversa obtaining regulatory approval and having inventory available by May 1, 2005. Any delay in regulatory approval or
inventory availability beyond May 1, 2005 will automatically delay the Minimum Sales Requirement by an equivalent period of time. 

	***	Confidential Treatment Requested 

  

 B-1 

 ADDENDUM C 
 MINIMUM PURCHASE REQUIREMENT 
  

					
	 Diversa Enzyme
	  	 Time Period
	  	 Minimum Purchase
 Requirement
 (US
Dollars)

	 [...***...]
	  	 1 Jan 2005 - 31 Dec 2005
	  	TBD
		  	 1 Jan 2006 - 31 Dec 2006
	  	TBD
		  	 1 Jan 2007 - 31 Dec 2007
	  	TBD
			
	 [...***...]
	  	 1 Jan 2005 - 31 Dec 2005
	  	TBD
		  	 1 Jan 2006 - 31 Dec 2006
	  	TBD
		  	 1 Jan 2007 - 31 Dec 2007
	  	TBD
			
	 [...***...]
	  	 1 Jan 2005 - 31 Dec 2005
	  	$[...***...]
		  	 1 Jan 2006 - 31 Dec 2006
	  	$[...***...]
		  	 1 Jan 2007 - 31 Dec 2007
	  	$[...***...]

	*	[...***...] and [...***...] Minimum Purchase Requirement will be set no later than May 1, 2005. 

	**	[...***...] Minimum Purchase Requirement is based on Diversa obtaining regulatory approval and having inventory available by May 1, 2005. Any delay in regulatory approval or
inventory availability beyond May 1, 2005 will automatically delay the Minimum Purchase Requirement by an equivalent period of time. 

	***	Confidential Treatment Requested 

  

 C-1 

 ADDENDUM D 
 DIVERSA ENZYME SPECIFICATIONS 
  

 D-1 

 ADDENDUM E 
 DIVERSA TRADEMARKS 
  

											
	 Mark
	 	Country	  	Application
No.	  	Application
Date	  	Registration
No.	  	Registration
Date
	 DIVERSA
	 	U.S.	  	—  	  	—  	  	2,289,794	  	11/02/99
						
	

	 	U.S.	  	—  	  	—  	  	2,481,144	  	08/28/01

  

 E-1

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