Document:

Non-Exclusive License Agreement

 Exhibit 10.16 

 
 CONFIDENTIAL TREATMENT REQUESTED 

NON-EXCLUSIVE LICENSE AGREEMENT 
 THIS NON-EXCLUSIVE LICENSE AGREEMENT (the “Agreement”), effective as of October 15, 2010 (the “Effective Date”), is entered into by and between BioWa, Inc., a
Delaware corporation, with a principal place of business at 212 Carnegie Center, Suite 101, Princeton, New Jersey 08540, USA (“BioWa”), Lonza Sales AG, a Swiss corporation, with a principal place of business at Munchensteinerstrasse
38, Basel, CH-4002 Switzerland (“Lonza) (together “the Licensor”) and Kalobios Pharmaceuticals, Inc., of 260 E. Grand Ave., South San Francisco, CA 94080, USA (“Licensee”). Lonza, BioWa, Licensor or Licensee may
hereafter be referred to individually as a “Party” and collectively as the “Parties.” 
 BACKGROUND

 WHEREAS, BioWa and Licensee entered into a Non-Exclusive License Agreement, effective as of
September 2, 2008, whereby BioWa granted to Licensee a license for the use of certain technology owned or controlled by BioWa (“Potelligent® Technology”) in the development of products (“2008 License”); and 

WHEREAS, BioWa, Lonza and Licensee entered into a letter agreement dated as of December 11, 2008
(“2008 Letter Agreement”), whereby Lonza received a limited license to the Potelligent® Technology
to perform certain services for Licensee and Licensee paid to BioWa the Access Fee (as defined therein) in connection therewith; and 
 WHEREAS, Lonza and Licensee entered into a Research Evaluation Agreement dated as of May 6, 2008 (“Lonza License”), whereby Licensee received a limited non-exclusive license to Lonza’s
GS System (as defined in the Lonza License) and Transfection Medium System (as defined in the Lonza License) for research purposes; and 
 WHEREAS, Lonza and BioWa have combined Lonza’s GS System and BioWa’s Potelligent® Technology and their related intellectual property to jointly create Potelligent® CHOK1SV for use in combination with the Vectors (all as herein defined, and referred to as the “Technology,” as more fully defined in Section 1.62);
and 
 WHEREAS, Licensee wishes to acquire certain nonexclusive rights to the Technology to research and
develop monoclonal antibodies capable of specifically binding to targets which shall be identified and mutually agreed upon as specified in this Agreement; and 
 WHEREAS, Licensor is willing to grant such license to the Technology and the Licensee desires to take such license, subject to the terms and conditions in this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties, intending
to be legally bound, agree as follows: 

  
 [***]CONFIDENTIAL PORTIONS OF
THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -1-

 ARTICLE 1 
      DEFINITIONS 
 Words or
phrases having their initial letter capitalized shall, except as clearly provided otherwise in this Agreement or in the context in which they are used, have the respective meanings set forth below. A cross-reference below to a defined term in this
Agreement is for the convenience of the reader of this document, and this Article 1 may not contain an exhaustive list of all words or phrases defined elsewhere in this Agreement. 

1.1        “Activities” means the Research, development,
manufacturing and commercialization activities performed by Licensee and any permitted Sublicensee under this Agreement. 
 1.2        “ADCC” means Antibody Dependent Cellular Cytotoxicity. 

1.3        “Affiliate” means any corporation, company,
partnership, joint venture, firm or other business entity which controls, is controlled by, or is under common control with a Party. For purposes of this definition, “control” shall be presumed to exist if one of the following conditions
is met: (a) in the case of corporate entities, direct or indirect ownership of at least fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (b) in the case of non-corporate entities,
direct or indirect ownership of at least fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. The Parties acknowledge that in the case of certain entities organized
under the laws of certain countries, the maximum percentage ownership permitted by law for a foreign investor may be less than fifty percent (50%), and that in such case such lower percentage shall be substituted in the preceding sentence, provided
that such foreign investor has the power to direct the management and policies of such entities. 

1.4        “Antibody” means a monoclonal antibody, antibody
fragment or any composition of matter derived therefrom, made through use of the Technology [***]. For purposes of this Agreement, “derived” shall mean obtained, developed, created, synthesized, designed, derived or resulting from, based
upon or otherwise generated (whether directly or indirectly, or in whole or in part). For purpose of clarity, the foregoing shall include any monoclonal antibody, any CDR (complementarity determining region), variable or constant region, any single
chain antibody, any partially or fully humanized antibody, any peptides identified through antibody phage display, and any peptide derived from one or more antibodies based on the sequence and structure information of the antibodies, e.g. binding
site information of the antibodies. 

1.5        “Approval” means, with respect to a Product in
a particular jurisdiction, the technical, medical and scientific licenses, registrations, authorizations and approvals (including, without limitation, approval of a BLA, and pricing and Third Party reimbursement approvals, and labeling approvals
with respect thereto) of any national, supra-national, regional, state or local regulatory agency, necessary for the commercial manufacture, distribution, marketing, promotion, offer for sale, use, import, export and sale of a Product. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -2-

 1.6        “Bankruptcy
Code” means Title 11 of the United States Code. 

1.7        “Biologics License Application” or “BLA”
means a Biologics License Application and amendments thereto filed pursuant to the requirements of the FDA, as defined in 21 C.F.R. Section 600 et seq., for FDA approval of a Product and “sBLA” means a supplemental BLA, and any
equivalent or a New Drug Application, as defined in the U.S. Federal Food, Drug and Cosmetic Act, as amended, and the regulations promulgated thereunder, and any corresponding non-U.S. marketing authorization application, registration or
certification, necessary to market a Product in any country outside the U.S., but not including applications for pricing and reimbursement approvals. 
 1.8        “BioWa Research License Fee” has the meaning set forth in Section 6.2.1. 

1.9        “BioWa Royalties” has the meaning set forth in
Section 6.5.1. 
 1.10      “Blank Rome LLP” means the law
firm of Blank Rome LLP, a limited liability partnership having a principal place of business at One Logan Square, 130 North 18th Street, Philadelphia, PA 19103. 

1.11      “Business Day” means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York, New York, United States are required or authorized by law to be closed. 
 1.12      “Calendar Quarter” means each three-month period commencing on January 1, April 1, July 1 or October 1 of each year
during the Term. 
 1.13      “CHOK1SV Cell Line” means
Lonza’s suspension variant host Chinese Hamster Ovary (CHO) cell line. 

1.14      “Claims” has the meaning set forth in Section 11.1.

 1.15      “Commencement” means, with respect to a Phase I,
Phase II or Phase III Clinical Trial, the date upon which the first patient is dosed in such Clinical Trial. 

1.16      “Commercial License” has the meaning set forth in
Section 2.1.2. 
 1.17      “Commercial License Fee” has the
meaning set forth in Section 6.3. 
 1.18      “Commercial
License Notification” has the meaning set forth in Section 2.2. 

1.19      “Commercial Target” means a Research Target that has been
confirmed as available by the Third Party Reviewer under Section 4.3.3 and for which Licensee has requested a Commercial License under Section 2.2. For purposes of clarity, Licensee shall be entitled to designate [***] Commercial Targets
in total between this Agreement and the 2008 License. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -3-

 1.20      “Competing Contract
Manufacturer” means any Third Party who undertakes or performs more than fifty percent (50%) of their business as a manufacturer of monoclonal antibodies and/or therapeutic proteins or any product of a similar nature to that to which this
Agreement relates. 
 1.21      “Confidential Information” means
all confidential or other proprietary information of a Party that is provided to another Party, whether written, oral or otherwise, and including, but not limited to, Know-How or other information, whether or not patentable, regarding a Party’s
technology, products, business information or objectives that is designated as confidential, or which under the circumstances surrounding disclosure or given the nature of the information would reasonably be believed to be confidential.
Notwithstanding anything to the contrary, Progress Reports shall be deemed to be Confidential Information of Licensee. 
 1.22      “Control” or “Controlled” means, with respect to a Know-How or Patent right, that a Party has the ability to grant a license or a
sublicense to such intellectual property without violating the terms of any agreement with a Third Party. 

1.23      “Effective Date” has the meaning set forth in the preamble to
this Agreement. 
 1.24      “Enforcement Action” has the meaning
set forth in Section 8.3. 
 1.25      “FDA” means the U.S.
Food and Drug Administration and any successors thereto and its foreign counterparts throughout the world. 

1.26      [***]“Field” means the prevention, diagnosis and
treatment of human diseases. 
 1.27      “First Commercial Sale”
means, with respect to any Product, the first bona fide commercial sale by Licensee or its Sublicensee of such Product following an Approval in any country. 
 1.28      “GS System” means Lonza’s glutamine synthetase gene expression system consisting of the CHOK1SV Cell Line, the Transfection Supplements
System, the Vectors, and the related Know-How and Patents Controlled by Lonza, whether used individually, or in combination with each other. For the avoidance of doubt, any gene proprietary to Licensee inserted into the GS System for the purposes of
producing Product does not form part of the GS System. 

1.29      “Improvements” means any inventions or other intellectual
property (including all Patent, Know-How and other intellectual property rights therein) made by or under authority of the Licensee during the Term in conducting the Activities contemplated by this Agreement. 

1.30      “IND” means an Investigational New Drug application, as defined
in the U.S. Federal Food, Drug and Cosmetic Act, as amended, and the regulations promulgated thereunder, or any corresponding non-U.S. application, registration or certification necessary 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -4-

 
to transport or distribute investigational new drugs for clinical testing in any country outside the U.S. 
 1.31      “Indemnitee” and “Indemnitor” have the respective meanings set forth in Section 11.3. 

1.32      “IP” means intellectual property. 

1.33      “Know-How” means any proprietary technical or other information
whether patentable or not and whether in written or verbal form, which is confidential and may include technology, experience, formulae, concepts, discoveries, trade secrets, inventions, modifications, improvements, data (including all chemical,
preclinical, pharmacological, clinical, pharmacokinetic, toxicological, analytical and quality control data), results, designs, ideas, analyses, methods, techniques, assays, research plans, procedures, tests, processes (including manufacturing
processes, specifications and techniques), laboratory records, reports, summaries, and information contained in submissions to, and information from, regulatory authorities. 

1.34      “Licensor IP Rights” means the Licensor Know-How and the
Licensor Patent Rights. 
 1.35      “Licensor Know-How” means
Know-How owned or Controlled by Licensor that relates directly to the Technology and is provided to Licensee hereunder. 
 1.36      “Licensor Patent Rights” means the Patents set out in Exhibit 1 hereto, solely to the extent that such Patents relate to the Technology and are
necessary or useful for researching, developing, commercializing, making, having made, using, importing, having imported, exporting, having exported, having sold, offering for sale, selling or otherwise disposing of a Product pursuant to this
Agreement. For the purpose of clarity, the Licensor Patents Rights shall include all Patents covering an Improvement of the Technology owned or Controlled by Licensor.  

1.37      “Lonza Research License Fee” has the meaning set forth in
Section 6.2.2. 
 1.38      “Lonza Royalties” has the
meaning set forth in Section 6.5.2. 
 1.39      “Losses”
has the meaning set forth in Section 11.1. 

1.40      “Management Representatives” has the meaning set forth in
Section 12.1. 
 1.41      “Milestone Payments” means the
payments set forth in Section 6.4. 
 1.42      “Net Sales”
means the gross amounts actually received by Licensee or its Sublicensees for sales of a Product to Third Parties in the Territory (“Gross Sales”), less the following (to the extent applicable): (i) normal and customary trade, cash
and quantity discounts on the Product actually allowed and taken directly by the customer with respect to the sales of the Product (other than price discounts granted at the time of invoicing and which are

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -5-

 
already included in the determination of Gross Sales), (ii) credits, deductions and allowances given or made for rejection or return of, and for uncollectible amounts on, a previously sold
Product, (iii) taxes, duties or other governmental charges levied on or measured by the billing amount for the Product (excluding income and franchise taxes), to the extent included in the invoice price and not reimbursed by a Third Party, and
(iv) charges for packing, handling, transportation, freight and insurance directly related to the distribution of a Product, to the extent included in Gross Sales. 

Sales between Licensee and any of its Sublicensees shall be excluded from the computation of Net Sales
if such sales are not intended for end use, but Net Sales shall include the subsequent final sales to Third Parties by any such Sublicensees. If a sale, transfer or other disposition with respect to the Product involves consideration other than cash
or is not at arm’s length, then the Net Sales from such sale, transfer or other disposition shall be the fair market value, which shall mean the selling party’s average sales price for the calendar quarter in the country where such sale,
transfer or other disposition took place (“Average Sales Price”). 
 In the event
Licensee or any of its Sublicensees sells or transfers units of a Product in conjunction with any other product and in so doing sells or transfers such units for an amount less than the sum of the weighted average selling price for such units of the
Product sold separately, for the purposes of determining Net Sales from such sales or transfers, Net Sales shall be based upon the Net Sales price to a similar-sized customer ordering a similar volume of units of the Product under similar terms and
conditions but sold separately. 
 In the event a Product is sold in any country in the form of
a combination product containing one or more therapeutically active components other than Antibodies which active ingredients are not attached or linked to such Antibodies alone, Gross Sales shall be determined by multiplying the actual Gross Sales
of such combination product by the fraction A/(A + B), where A is the invoice price of the Product containing an Antibody or a set of Antibodies alone, if sold separately, and B is the invoice price of any other active component or components in the
combination, if sold separately, in each case in the same country and in the same dosage as the combination product. If, on a country-by-country basis, the other active component or components in the combination are not sold separately in such
country, Gross Sales shall be calculated by multiplying the actual Gross Sales of such combination product by the fraction A/C where A is the invoice price of the Product containing an Antibody or a set of Antibodies alone if sold separately, and C
is the invoice price of the combination product, in each case in the same country and in the same dosage as in the combination product. If, on a country-by-country basis, the component of the Product containing an Antibody or a set of Antibodies
alone of the combination product is not sold separately in such country, but the other active component or components are sold separately, Gross Sales shall be calculated by multiplying actual Gross Sales of such combination product by the fraction
(C-B)/C where B is the invoice price of the other active component or components, if sold separately, and C is the invoice price of the combination product, in each case in the same country and in the same dosage as the combination product. If, on a
country-by-country basis, neither the Product containing an Antibody or a set of Antibodies alone nor the other active component or components of the combination product are sold 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -6-

 
separately in such country, Gross Sales, for such combination product shall be determined by the Parties in good faith. 

1.43      “Patents” means all patents and patent applications existing as
of the Effective Date and all patent applications thereafter filed, including any continuation, continuation-in-part, division, provisional or any substitute applications, and any patent issued with respect to any such patent applications, any
reissue, reexamination, renewal or extension (including any supplemental patent certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent, and all foreign counterparts of any
of the foregoing. 
 1.44      “Phase I Clinical Trial” means a
human clinical trial in any country that is intended to collect data on safety of a Product for a particular indication or indications in patients with the disease or indication under study or that would otherwise satisfy the requirements of 21 Code
of Federal Regulations (“CFR”) §312.21(a) (U.S.) or its non-U.S. equivalent. 

1.45      “Phase II Clinical Trial” means a human clinical trial in any
country that is intended to collect data on dosage and evaluate the safety and the effectiveness of a Product for a particular indication or indications in patients with the disease or indication under study or that would otherwise satisfy the
requirements of 21 Code of Federal Regulations (“CFR”) §312.21(b) (U.S.) or its non-U.S. equivalent. 
 1.46      “Phase III Clinical Trial” means a human clinical trial in any country that is intended to be a pivotal trial the result of which would be used to
establish safety and efficacy of a Product as a basis for a BLA or that would otherwise satisfy the requirements of 21 CFR 312.21(c) or its non-U.S. equivalent. 

1.47      “Potelligent® CHOK1SV” means the FUT8 (-/-) knock-out CHOK1SV Cell Line jointly created by Lonza’s Affiliate, Lonza Biologics plc, and BioWa’s Affiliate, Kyowa Hakko
Kirin Co., Ltd., by combining the CHOK1SV Cell Line and the Potelligent® Technology. 

1.48      “Potelligent® Technology” means BioWa’s proprietary technology directly relating to the use of Potelligent® Cells (as such term is defined in the 2008 License) to produce Antibodies with enhanced ADCC activity by reducing the amount of fucose linked to the carbohydrate
chain, including (i) Potelligent® Cells; (ii) [***]; (iii) protein expression, production or
purification methods, therapeutic compositions, formulations or uses of, and other modifications to, [***]; and (iv) [***] 
 1.49      “Product” means any composition or formulation in the Field containing or comprising an Antibody owned by Licensee or licensed by Licensee from a
Third Party, alone or in combination with other active or inactive ingredients, components or materials. 

1.50      “Progress Report” has the meaning set forth in Article 5.

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -7-

 1.51      “Proposed Target”
has the meaning set forth in Section 4.3.1. 

1.52      “Prosecution and Maintenance” has the meaning set forth in
Section 8.2. 
 1.53      “Research” means research and
non-clinical development activities performed up to the date of the Commencement of Phase I Clinical Trial for any Product, including the manufacture and use of any Product for research and non-clinical development only (but including batch
manufacturing for Phase I Clinical Trials), but does not include human clinical studies or other commercialization activities, such as the manufacture, use, marketing and sale of any Product or any product containing or derived from a Product.

 1.54      “Research License” has the meaning set forth in
Section 2.1.1. 
 1.55      “Research Licensee Fee” has the
meaning set forth in Section 6.2. 
 1.56      “Research
Period” has the meaning set forth in Section 2.1.1. 

1.57      “Research Target” means a Target proposed by Licensee and
confirmed as available by the Third Party Reviewer for which Licensee may request a Commercial License as provided in Section 2.2 
 1.58      “Strategic Partner” means a Third Party with whom Licensee has entered into a contractual relationship (i) to collaborate in the performance
of research or development, and/or commercialization of Product, (ii) under which such Third Party has a material interest in the commercial success of Product, and (iii) is not only intended to provide for the provision of services by
such Third Party to Licensee. In no event may any entity that is primarily a Competing Contract Manufacturer be deemed a Strategic Partner for the purposes of this Agreement. 

1.59      “Sublicensee” means any Third Party or an Affiliate of Licensee,
to whom Licensee has granted any of its rights under Section 2.1. 

1.60      “Target” means a polypeptide, a carbohydrate chain, or any other
molecule to which an Antibody binds and/or which an Antibody modulates. A polypeptide Target shall be identified using the amino acid sequence coded by a single mRNA as identified by a UniGene number. A carbohydrate chain Target shall be identified
according to the nomenclature of the Journal of Biological Chemistry. 

1.61      “Technology” means Antibody expression and ADCC enhancing
technology using Potelligent® CHOK1SV in combination with the Transfection Supplements System, the Vectors and
related Know-How and Patents, including but not limited to (i) Potelligent® CHOK1SV; (ii) methods for
selection of transfected cells; (iii) protein expression, production or purification methods [***]; (iv) therapeutic compositions, formulations or uses of, and other modifications to antibodies which are specific to antibodies with
enhanced ADCC activity produced by transfected cells; and (v) [***] 

1.62      “Term” has the meaning set forth in Section 7.1.

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -8-

 1.63      “Territory” means
all countries and territories in the world. 
 1.64      “Third
Party” means any entity other than Licensee, Licensor and their respective Affiliates. 

1.65      “Third Party Reviewer” has the meaning set forth in
Section 4.2. 
 1.66      “Third Party Reviewer Agreement”
has the meaning set forth in Section 4.2. 

1.67      “Transfected Cells” means Potelligent® CHOK1SV cells transfected by Licensee with recombinant DNA encoding a monoclonal antibody. 

1.68      “Transfection Supplements” means the supplement solution set out
in Exhibit 4. 
 1.69      “Transfection Supplements Know-How”
means any Know-How owned or Controlled by Licensor specifically relating to the Transfection Supplements and which is provided to Licensee hereunder. 
 1.70      “Transfection Supplements System” means the Transfection Supplements and Transfection Supplements Know-How used either in combination or
individually. 
 1.71      “U.S.” means the United States of
America, including all commonwealths, territories, and possessions of the United States. 

1.72      “Valid Claim” means an issued and unexpired claim of a Licensor
Patent Right that has not been canceled, withdrawn, or rejected and has not lapsed or become abandoned or been declared invalid or unenforceable or been revoked by a court or agency of competent jurisdiction from which no appeal can be or has been
taken. 
 1.73      “Vectors” means Lonza’s vectors
identified in Section 3.1(a) below. 
 ARTICLE 2 

LICENSE GRANTS AND COVENANTS 
 2.1        License Grants to Licensee.    Subject to the terms and conditions of this Agreement and Section 2.8 below, Licensor
hereby grants to Licensee the following: 
 2.1.1      Research
License.  A non-exclusive, fee-bearing license in and to the Licensor IP Rights, without the right to sublicense, to conduct Research for the purpose of identifying Antibodies suitable for commercialization (but not including
commercialization) as Products in the Field in the Territory with respect to any Target (the “Research License”). Such Research License shall commence on the Effective Date and continue for a period of [***] years or until otherwise
terminated in accordance with Section 7 hereof, whichever is the earlier (“Research Period”), provided that the Research Period may be extended by mutual agreement of the Parties; and 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -9-

 2.1.2      Commercial License. Upon
Licensor’s receipt from Licensee of the Commercial License Notification and payment of the Commercial License Fee, a fee- and royalty-bearing, non-exclusive license in and to the Licensor IP Rights, with the limited right to sublicense in
accordance with Section 2.3, to develop, commercialize, make, have made, use, import, have imported, export, have exported, sell, have sold, offer for sale and otherwise dispose of any and all Products in the Field in the Territory with respect
to [***] Commercial Targets (each, a “Commercial License”). 

2.2        Commercial License
Notification.      As of the Effective Date of this Agreement, Licensee shall be deemed to have given notice that it desires to obtain a Commercial License for the first Research Target designated under the
2008 License, for which an IND was filed on July 27, 2010. [***] 

2.3        Sublicense. Licensee may sublicense its rights under
Section 2.1.2 to Third Parties, provided that such sublicenses shall be granted pursuant to the terms and conditions set forth in Sections 2.3.1 to 2.3.4 below. 

[***] 

2.3.3 In each sublicense agreement, Licensee shall require the Sublicensee to comply with the applicable
terms and conditions of this Agreement and shall include a provision that expressly assigns or grants to Licensee such of its right, title and interest in Improvements as are necessary in order for Licensee to comply with the requirements of
Section 8.1 hereof. 
 2.3.4 In the event that Licensee fails to make payments pursuant to
this Agreement, all payments due to Licensee from its Sublicensees under the sublicense agreements shall, upon notice from Licensor to the Sublicensees, become payable directly to Licensor for the account of Licensee. 

[***] 
 2.4        Performance by Sublicensees [***].  Licensee’s execution of a sublicense [***] agreement shall not relieve Licensee of any of its
obligations under this Agreement. Licensee shall remain jointly and severally liable to Licensor for any performance or non-performance of a Sublicensee [***] that would be a breach of this Agreement if performed or omitted by Licensee, and Licensee
shall be deemed to be in breach of this Agreement as a result of such Sublicensee [***] performance or non-performance. 
 2.5        Licensor’s Rights.    Except for the rights granted to Licensee under this Agreement, all right, title and interest in
and to the Technology shall at all times remain with and be vested in Licensor. Neither Licensee (including its Affiliates) nor its Sublicensees [***] shall use the Technology for any purpose other than as expressly granted to Licensee under this
Agreement. 
 2.6        Third Party Rights and
Licenses.  Except for Licensor IP Rights, rights in and to Technology, and unless otherwise provided herein, Licensee shall be responsible for 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -10-

 
obtaining all rights from Third Parties or Licensor’s Affiliates that are necessary to research, develop and commercialize the Products in the Field. 

2.7        Permitted Uses of the Technology; Prohibition on Modifications or
Adaptations.  Licensee’s use of the Technology is limited to inserting gene(s) coding for Licensee’s proprietary antibodies into the Vectors and then into Potelligent® CHOK1SV for the purpose of generating Antibodies and exercising the licenses set forth herein. Licensee hereby undertakes not to make any modifications or adaptations
to the [***] during the Term of this Agreement except as explicitly provided under this Section 2.8 hereto. Licensee is specifically prohibited from performing any analysis, test, experiment or reverse-engineering of [***]. 

2.8        Applicability of 2008 License.  The 2008 License
shall remain valid, absent termination by either BioWa or Licensee, in accordance with its terms and shall govern Licensee’s Research, development and commercialization of Products utilizing or incorporating only BioWa’s Potelligent
Technology. This Agreement shall govern Licensee’s Research, development and commercialization of Products utilizing or incorporating the Technology. [***] 

2.9        Applicability of Lonza License.  The Lonza License
shall remain valid, absent termination by either Lonza or Licensee, in accordance with its terms, and shall govern Licensee’s research, development and commercialization of Products utilizing or incorporating only Lonza’s GS System and
Transfection Medium System, as those terms are defined in the Lonza License. Notwithstanding anything to the contrary, it is understood and agreed that, on an annual basis, Licensee shall pay to Lonza the fee set forth in Section 6.3 of the
Lonza License for Licensee’s research, development and commercialization of Products utilizing or incorporating only Lonza’s GS System and Transfection Medium System and the Research License Fee set forth in Section 6.2.2 herein for
Licensee’s research, development and commercialization of Products utilizing or incorporating the Technology. 
 ARTICLE
3 
 MATERIAL TRANSFER AND OBLIGATIONS 

3.1        Provision of Materials.  Following the signature of
this Agreement by all Parties, and only upon Licensee’s written request therefor, Lonza shall supply to the Licensee (ex-works Lonza’s Affiliate’s premises, Slough, Berkshire, Incoterms 2000) the following in accordance with the
procedures and terms agreed by Lonza and Licensee: 
 (a)       Vectors

 Approximately [***] of vector [***]. 

Approximately [***] of vector [***]. 

(b)      Potelligent® CHOK1SV  
 [***] vials
of viable Potelligent® CHOK1SV. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -11-

 (c)        Licensor Know-How

 [***] and (c) Vector nucleotide sequences. 

In relation to the Transfection Supplements System, Lonza shall (a) provide Licensee with details of at least one
third party supplier from whom Licensee will be able to purchase Transfection Supplements, and (b) supply Licensee with the Transfection Supplements Know-How. For the avoidance of doubt, Licensee hereby confirms that Licensor may disclose to
such third party supplier the fact that Licensee is a party to this Agreement. 

3.2        Provision of Technical Support.  During the Research
Period, if requested by Licensee, Licensor shall provide technical assistance to Licensee in relation to the use of the Technology at a rate of [***] per man day and any travel and subsistence costs. This rate is valid for twelve (12) months
from the Effective Date hereof and is subject to review and adjustment thereafter. 

3.3        Sole Uses of Technology.    Licensee shall
not use the Transfection Supplements, Vectors, Potelligent® CHOK1SV or Licensor IP Rights for any purpose other
than that permitted in Section 2.1. Upon transfection, Licensee shall have the right to use the Transfected Cells solely to Research, develop, commercialize, make, have made, use, import, have imported, export, have exported, sell, have sold,
offer for sale, and otherwise dispose of Products pursuant to the terms and subject to the conditions of this Agreement. Except as specifically provided in this Agreement, Licensee shall not offer for sale, sell, transfer or otherwise distribute
Potelligent® CHOK1SV, Transfected Cells, or Licensor IP Rights to any Third Party. Licensee shall store, handle,
transport, use and dispose of Potelligent® CHOK1SV and Transfected Cells in accordance with all applicable
country, state and local laws and regulations. 

3.4        [***] 

ARTICLE 4 

TARGET DESIGNATION 
 4.1        Target Designation.  Licensee designated an initial Research Target under the 2008 License, in accordance with the terms and conditions
set forth therein. Licensee shall have the right to designate [***] during the Research Period in accordance with the procedures set forth in Section 4.3. 
 4.2        Third Party Reviewer Agreement.    On the Effective Date, BioWa and Licensee shall enter into a third party reviewer agreement
with Blank Rome LLP (the “Third Party Reviewer”) in the form attached hereto as Exhibit 2 (the “Third Party Reviewer Agreement”). Licensee shall be responsible for paying the Third Party Reviewer’s fees for all services
performed, as provided in the Third Party Reviewer Agreement. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -12-

 4.3         Mechanism for
Designating Research Targets.    Except as set forth in Section 4.4 below, Licensee shall use the mechanism described in this Section 4.3 to designate Research Targets. 

4.3.1      At any time during the Research License Period, Licensee may provide to the
Third Party Reviewer the identity of any an additional Proposed Target it wishes to reserve as a Research Target (“Proposed Target”). 
 4.3.2      The Third Party Reviewer maintains a list of Targets (“Target List”), which are Targets that have been (i) designated by BioWa, its Affiliates or
any Third Party licensees of BioWa (“Third Party Licensees”) on a non-exclusive basis, (ii) designated by BioWa or its Affiliates exclusively for its or their own drug discovery programs, or (iii) to which BioWa has granted
licenses or reserved exclusively for Third Parties, and so are not available for any other commercial license. The Targets described in subsections (ii) and (iii) are designated “Excluded Targets”). 

4.3.3      The Third Party Reviewer shall notify Licensee whether such Proposed Target is
available to Licensee as a Research Target no later than thirty (30) days after receiving a notice of the identity of a Proposed Target from Licensee under Section 4.3.1 above. Unless a Proposed Target is an Excluded Target, it shall be
deemed available to Licensee as a Research Target for purposes of this Agreement and added to the Target List. If a Proposed Target is successfully designated as a Research Target, Third Party Reviewer shall notify BioWa in writing, within thirty
(30) days of receiving Licensee’s notice of the identity of Proposed Target(s), that a Proposed Target (but not the identity of the same) has been designated as a Research Target. For the avoidance of doubt, BioWa shall not cause the Third
Party Reviewer to reveal the identity of any Proposed Target (even if it is deemed to be an Excluded Target) or any Research Target to BioWa or to any Third Party at any time. 

4.3.4      Licensee acknowledges that until a Proposed Target is confirmed by the Third
Party Reviewer to be available and designated as a Research Target, any such Proposed Target may be subject to exclusive designation, non-exclusive designation or reservation by BioWa, its Affiliates or a Third Party. For the purpose of clarity,
after a Proposed Target is confirmed to be available and designated as a Research Target by Licensee, such Research Target is confirmed to be a non-exclusive reservation of such Proposed Target by Licensee, and BioWa shall not grant to any
Affiliates or Third Party or reserve for itself an exclusive license for such Research Target during the Term. 

4.4         Designation of Target Under 2008
License.      The Parties hereby acknowledge and agree that the Target initially designated by Licensee under the 2008 Agreement and identified as [***] shall, as of the Effective Date, be deemed a Target designated
under this Agreement and shall be governed by the terms and conditions of this Agreement. 

4.5         [***] 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -13-

 4.6       Notification of Commencement
of Phase I Clinical Trials.  Within fifteen [***] days of Commencement of Phase I Clinical Trials for each Product, Licensee shall provide Licensor written notice of such Commencement of such Trial and such notice shall
(i) specifically identify the Commercial Target; and (ii) specifically identify the Antibody or Product being developed. 
 4.7       Abandoned Targets. 
 4.7.1    Abandonment. Licensee shall be deemed to have abandoned development and commercialization of any Antibody or any Product with respect to a Commercial Target upon the
earlier of (i) written notice from Licensee to Licensor of the abandonment; or (ii) receipt of [***] Progress Reports showing no diligent activity by the Licensee with respect to such Commercial Target. 

4.7.2    Effect of Abandonment. Licensee’s abandonment of a Commercial Target shall entitle
Licensor to terminate the respective Commercial License as its sole remedy for such abandonment. 
 ARTICLE 5 

PROGRESS REPORTS 
 During the Term, and subject to Licensee’s right and obligation not to reveal the identity of a Commercial Target until the Commencement of Phase I Clinical Trials as set forth in Section 4.3,
Licensee shall deliver to Licensor annual, written, reasonably detailed progress reports, following the format set forth in Exhibit 3, of Activities conducted by Licensee and its Sublicensees in the preceding calendar year, including Licensee’s
progress towards the achievement of milestone events set forth in Section 6.3 (the “Progress Report”). The first Progress Report shall be due on the first anniversary of the Effective Date, and subsequent Progress Reports on each
anniversary of the Effective Date thereafter. 
 ARTICLE 6 

FINANCIAL TERMS 
 6.1       Signing Fee.  Licensee shall pay to BioWa a one-time signing fee in the amount of [***] (“Signing Fee”) upon execution of this
Agreement. If the Continuing Access Fee has been paid by Licensee to BioWa under the 2008 Letter Agreement prior to the Effective Date hereof, that Continuing Access Fee shall be creditable against the Signing Fee. 

6.2       Research License Fee. 

6.2.1    BioWa Research License Fee. Subject to the terms of Section 2.9, for the first
Research Target, designated under the 2008 License, Licensee shall pay to BioWa an annual, non-refundable, non-creditable research licensee fee of [***] (the “BioWa [***]Target Research License Fee”), due and payable on each anniversary of
September 2, 2008, until the termination of the Research Period or until Licensee obtains a Commercial License for such [***] Research Target. For the right to conduct Research under Section

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -14-

 
2.1.1. and to designate a [***] Research Target under this Agreement, Licensee shall pay to BioWa an annual, non-refundable, non-creditable research license fee of [***] (“BioWa [***]Target
Research License Fee”), due and payable within [***] Business Days of the Effective Date and upon each anniversary of the Effective Date hereof, until the termination of the Research Period. [***] 

6.2.2   Lonza Research License Fee.  Licensee shall pay to Lonza an annual,
non-refundable, non-creditable research license fee of [***] (the “Lonza Research License Fee”), due and payable on the date Licensee elects to receive the materials set forth in Section 3.1 hereof and thereafter on each anniversary
of Licensee’s receipt of the Section 3.1 materials, [***] For clarity, the Lonza Research License Fee is due only if Licensee, or a designated Sublicensee acting on Licensee’s behalf, elects to receive the Section 3.1 materials.

 6.3        Commercial License Fee.  Subject
to the terms of Section 2.9, for the first Commercial License obtained by Licensee hereunder, Licensee shall pay to BioWa an annual, nonrefundable, non-creditable commercial license fee of [***] (the “[***]Target Commercial License
Fee”) and, as described in Section 2.2, [***]Milestone Payments. 

6.3.1      BioWa Milestone Payments.    Licensee shall make the
following non-refundable and non-creditable milestone payments to BioWa upon achievement of the first occurrence of the following milestone events, on a Target-by-Target basis, by Licensee or a Sublicensee thereof: 

(a)        [***] upon Commencement of the first Phase I Clinical Trial; provided
that if the IND milestone payment has been made under the 2008 License, [***] upon Commencement of the first Phase II Clinical Trial; provided that if the IND milestone payment has been made under the 2008 License, [***] upon Commencement of
Phase III Clinical Trials comprised of the following: 
 [***] 

(b)                [***] upon submission
of a BLA, comprised of the following: 
 [***]. 

(c)                [***] upon Licensee
receipt of approval of a BLA, comprised of the following: 
 [***] 

(f)        In partial consideration of the licenses granted under this Agreement,
Licensee shall pay to BioWa the following sales milestone payments (“Sales Milestone”), payable upon the achievement of the corresponding sales milestone event on each Product within thirty (30) days of Licensee’s receipt of an
invoice from BioWa therefor. 

(ii)      (i)          
  [***] 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -15-

    6.4    Royalty Payments.

 6.4.1    BioWa Royalty Payments. Licensee shall pay to BioWa tiered running royalties
(the “BioWa Royalties”), on a Target-by-Target basis, equal to the following rates: 

(a)      [***] of Net Sales for a Product sold by Licensee or its Sublicensees (including
its Affiliates) to unrelated Third Parties where annual global sales for such Product are [***] 

(b)      [***] [***] for such Product sold by Licensee or its Sublicensees (including its
Affiliates) to unrelated Third Parties where annual global sales for such Product [***] 

(c)      [***] of the portion of Net Sales of a Product exceeding [***] for such Product
sold by Licensee or its Sublicensees (including its Affiliates) to unrelated Third Parties where annual global sales for such Product are [***] 
 Notwithstanding anything else in this Agreement, [***] provided, however, that in no case shall the Royalties payable hereunder be less than [***] during the Term. Any reduction in Royalties under this
provision shall be limited to the Product(s) and/or countries encompassed by the adjudication or settlement. 

6.4.2    Lonza Royalty Payments. During the Term, Licensee shall pay to Lonza running royalties (the
“Lonza Royalties”) as follows: 
 (a)      In respect of Product
manufactured by Lonza, a royalty of [***] of the Net Sales for such Product. 

(b)      Where Licensee or Licensee’s Strategic Partner manufactures Product:

  

	 	  (i)	 a payment of [***] due annually during the course of this Agreement, and being first payable upon Commencement of Phase II Clinical Trials for such
Product; and 

  

	 	  (ii)	 a royalty of [***] of the Net Sales for such Product. 

(c)      Where any party other than Lonza, Licensee, Licensee’s Affiliates or
Licensee’s Strategic Partner manufactures Product: 
 (i)      a payment of
[***] per sublicense due annually during the course of such sublicense, and being first payable on the commencement date of the relevant sublicense; and 
   (ii)     a royalty of [***] of the Net Sales for such Product. 
 Notwithstanding anything else in this Agreement, [***] provided, however, that in no case shall the Royalties payable hereunder be less than [***] of the applicable Lonza Royalty

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -16-

 
payable under Section 6.4.2. Any reduction in Royalties under this provision shall be limited to the Product(s) and/or countries encompassed by the adjudication or settlement. 

  6.4.3    Duration of Payments. Royalties will be payable by Licensee until the [***]
Thereafter, subject to Section 6.5.4 below, the license under this Agreement for the Target shall become fully paid up. 
 6.4.4      Product Sold in Countries Not Protected by a Valid Claim. In the event Product is sold in a country in which there is no Valid Claim covering such Product, or in
which previously existing Valid Claims covering such Product have expired or otherwise become invalid, royalties shall be due only in respect of the Licensor Know-How and the relevant royalty figures referred to in Sections 6.5.1 shall be reduced by
[***] percent [***]%) for the duration of the Royalty Term, and the relevant royalty figures referred to in Section 6.5.2 shall be reduced by [***]%). For the duration of the Royalty Term Thereafter, the license under this Agreement for such
Product shall become fully paid-up. 
 6.5         Notification
Obligations and Payment Dates for Milestone Payments and Royalties. Licensee shall inform Licensor in writing within fifteen (15) days of achieving each milestone by Licensee or its Sublicensee under this Agreement. Licensee shall make the
relevant Milestone Payment within thirty (30) Business Days of confirmation of achieving such milestone. All Royalty payments under Section 6.5 shall be due and payable quarterly and within thirty (30) Business Days of the close of
the Calendar Quarter during which the corresponding Net Sales are recognized. In the event that the amounts due to Licensor pursuant to Section 6.5 would increase based on total Net Sales at the end of the applicable calendar year, then
Licensee shall promptly pay to Licensor the difference between the amounts paid and the amounts that would have been due based on the total Net Sales at the end of the applicable calendar year. Together with any such payment, Licensee shall deliver
a report specifying in the aggregate and on a country-by-country basis: (i) total gross invoiced amount from sales of the Products by Licensee and its Sublicensees; (ii) amounts deducted, by category, from gross invoiced amounts to
calculate Net Sales; (iii) Net Sales; and (iv) royalties payable. For purposes of computing royalty payments for Net Sales payable to BioWa made outside of the U.S., such royalties shall be converted into U.S. Dollars by applying the rate
of exchange quoted in the New York edition of The Wall Street Journal on the last Business Day of the applicable Calendar Quarter. For purposes of computing royalty payments for Net Sales payable to Lonza made outside of the U.K., such royalties
shall be converted into pounds sterling, and the rate of exchange shall be the mean value of the Pound Spot Rate in London first published in the Financial Times on the day following the day for determining such rates. 

6.6         Late Payment. Any payments or portions thereof due to
Licensor hereunder which are not paid when due shall bear interest equal to the lesser of the prime rate as reported by the Chase Manhattan Bank, New York, New York, U.S., on the date such payment is due, plus an additional [***] per annum, or the
maximum rate permitted by law, calculated on the number of days such payment is delinquent. This Section 6.7 shall in no way limit any other remedies available to Licensor for late payments. Failure to make any payments pursuant to the terms of
this Agreement hereunder shall constitute a breach of this Agreement. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -17-

 6.7      Mode of Payment. 

6.7.1    Mode of Payment to BioWa.  All payments to BioWa hereunder shall
be made in U.S. Dollars in the stated amount by wire transfer to such bank account as BioWa may from time to time designate by notice in writing to Licensee. Until otherwise designated by notice, the fees payable to BioWa under this Article 6 shall
be paid to [***], account number [***]. Payments shall be free and clear of any taxes, fees or charges, to the extent applicable. 
 6.7.2    Mode of Payment to Lonza.  All payments to Lonza hereunder shall be made in pounds sterling in the stated amount by wire transfer to such bank account as Lonza may
from time to time designate by notice in writing to Licensee. Until otherwise designated by notice, the fees payable to Lonza under this Article 6 shall be paid to: account no. [***] 

6.8      Records Retention and Audit.  With respect to each Product,
Licensee shall keep, and shall cause its Sublicensees, and their respective agents, to keep for as long as legally required and in no event less than five (5) years, complete, true and accurate books of accounts and records of all quantities of
Products manufactured and sold (or otherwise distributed) in sufficient detail to confirm the accuracy of the Net Sales and royalty calculations hereunder. Upon reasonable prior written notice from Licensor, during the Term and for three
(3) years thereafter, no more than once per twelve month period, Licensee shall permit an independent certified public accountant, appointed and paid by Licensor, and reasonably acceptable to Licensee, at reasonable times during normal business
hours and under a written confidentiality agreement between the accountant and Licensee executed prior to the inspection, to examine these records solely to the extent reasonably necessary to verify such calculations for any calendar year ending not
more than thirty-six (36) months prior to the date of such request. Such investigation shall be at the expense of Licensor, unless it reveals a discrepancy in Licensee’s favor of more than [***], in which event Licensee shall reimburse
Licensor for the accountant’s fees related thereto. If such investigation shows underpayment of royalties, Licensee shall promptly (but in no event later than thirty (30) days after Licensee’s receipt of the independent auditor’s
report so correctly concluding) remit to Licensor the amount of such underpayment, and all such payments shall be subject to the accrual of interest pursuant to Section 6.7. Licensee shall ensure that all Sublicensees comply with
Licensee’s obligations under this Section. 
 6.9      Tax
Withholding.  All payments required under this Agreement shall be without deduction or withholding for, or on account of, any taxes or similar governmental charge imposed by any jurisdiction. Any withholding taxes shall be the sole
responsibility of the paying Party. The Party receiving payment agrees to elect to claim a tax credit for any such withholding taxes paid by the paying Party for which the receiving Party is entitled to so elect, and at the time the receiving Party
actually realizes a reduction in its regular income tax liability by utilizing any such withholding taxes as a credit against its regular income tax liability (determined on a “first in first out” basis pro rata with other available
foreign tax credits), then the amount of such credit shall be promptly reimbursed to the paying Party, to the extent such withholding taxes were paid by the paying Party. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -18-

 6.10    Blocked
Payments.    In the event that, by reason of applicable laws or regulations in any country, it becomes impossible or illegal for Licensee or its Sublicensees to transfer, or have transferred on its or their behalf, royalties
or other payments to Licensor, such royalties or other payments shall be deposited in local currency in the relevant country to the credit of Licensor in a recognized banking institution designated by Licensor or, if none is designated by Licensor
within a period of thirty (30) days, in a recognized banking institution selected by Licensee or its Sublicensees, as the case may be, and identified in a written notice to Licensor. 

ARTICLE 7 - TERM AND TERMINATION 
 7.1       Term and Expiration.    This Agreement shall become effective on the Effective Date and unless earlier terminated pursuant to this
Article 7, shall remain in full force and effect until there are no remaining Royalty payment obligations with respect to any Product in any country (the “Term”). 

7.2       Termination at Will by Licensee. Licensee shall have the right to
terminate this Agreement in its entirety or on a Commercial License-by-Commercial License basis for any reason upon ninety (90) days prior written notice to Licensor. Upon termination in accordance with this Section 7.2, the licenses
granted by Licensor pursuant to Article 2 shall terminate with regard to each Target for which a Commercial License has been terminated as provided above, or for all Targets, if this Agreement is terminated in its entirety. Licensee shall remain
obligated for all payments due at the time of such notice and for any continuing obligations otherwise surviving and owed under this Agreement pursuant to Section 7.9 with regard to each terminated Commercial License and with regard to Targets
for which the Commercial License has not been terminated by Licensee pursuant to this Section. 

7.3       Termination for Breach. 

  7.3.1    Without prejudice to any other remedies that may be available
under this Agreement, in the event that Licensee, on the one hand, or Licensor, on the other hand, has materially breached this Agreement, and the breaching Party has not cured such breach (to the reasonable satisfaction of the non-breaching Party)
within sixty (60) days (or such longer period as may be agreed by the Parties if Licensee is exercising diligent efforts to cure such breach and sixty (60) days is insufficient to cure such breach) following its receipt of written notice
thereof from the non-breaching Party, the non-breaching Party may terminate this Agreement, in whole or in part on a Commercial License-by-Commercial License basis (at the sole discretion of the non-breaching Party) by providing written notice to
the other Party with immediate effect. Notwithstanding the above, in the case of a failure to timely pay any undisputed amounts due hereunder, the period for cure of any such breach shall be thirty (30) days following the non-breaching
Party’s delivery of notice thereof and, unless payment is made within such thirty (30) day period, the non-breaching Party may thereafter terminate this Agreement by providing written notice to the other Party with immediate effect.

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -19-

 7.3.2    Notwithstanding the foregoing,
(i) if such uncured material breach by Licensee involves only a specific Product or Target, or (ii) a specific Sublicensee or Third Party Contractor (and the Licensee has complied with its obligations under Sections 2.3 and 2.4), then
Licensor may terminate this Agreement only with respect to Licensee’s rights relating, respectively, to such Product or Target or such Sublicensee or Third Party Contractor. If there has been an uncured material breach by a Sublicensee or a
Third Party Contractor, and the Licensee has not complied with its obligations under Section 2.3 with regard to a such Sublicensee or Section 2.4 with regard to such Third Party Contractor, then Licensor may terminate this Agreement in
whole, without regard to the number of Products, Targets, Sublicensees or Third Party Contractors licensed hereunder. For clarity, a breach by Licensee and/or a Sublicensee and/or a Third Party Contractor of the provisions of Sections 2.3, 2.4, 2.6,
2.8, 3.3, 8.1 and Article 9, shall be deemed a material breach of this Agreement. 

7.4      Termination for Challenging IP Rights.  If at any time during the
Term of this Agreement, Licensee knowingly, directly or indirectly, opposes or assists any Third Party in opposing the grant of letters patent or any patent application within any of the Licensor Patent Rights, or disputes or knowingly, directly or
indirectly, assists any Third Party in disputing the validity of any Patent within any of the Licensor Patent Rights or any of the claims thereof, Licensor shall be entitled at any time thereafter to terminate all or any of the licenses granted
hereunder forthwith by notice to Licensee. 
 7.5      Termination for
Insolvency.  Either Licensor or Licensee may terminate this Agreement by written notice with immediate effect if the other is judicially declared to be insolvent, makes an assignment for the benefit of creditors, is the subject of
proceedings in a voluntary or involuntary bankruptcy proceeding instituted on behalf of or against such Party (except for involuntary bankruptcies which are dismissed within ninety (90) days), or has a receiver or trustee appointed for
substantially all of its property. 
 7.6      Accrued Rights and
Obligations.  Termination or expiration of this Agreement, in whole or in part on a Commercial License-by-Commercial License basis, for any reason shall not (a) release any Licensor or Licensee from any liability which, at the
time of such termination or expiration, has already accrued or which is attributable to a period prior to such termination or expiration or (b) preclude any Licensor or Licensee from pursuing any rights and remedies it may have hereunder, or at
law or in equity, with respect to any breach of, or default under, this Agreement. Licensor or Licensee understand and agree that monetary damages may not be a sufficient remedy for a breach of this Agreement and that the Licensor or Licensee may be
entitled to injunctive relief as a partial remedy for any such breach. 

7.7      Inventory on Hand.  Upon termination of this Agreement for any
reason, Licensee and its Sublicensees may complete any production batches of Product in process at the date of such termination and sell or otherwise distribute the inventory of any Product then on hand until the second anniversary of the date of
such termination. All such sale or distribution shall be subject to the relevant terms of this Agreement (including the payment of royalties thereon). 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -20-

 7.8      Destruction of Biological
Materials. Upon termination (but not expiration) of this Agreement, Licensee and its Sublicensees shall promptly destroy all Potelligent® CHOK1SV, Vectors, Transfection Supplements, and all Transfected Cells, as well as all Antibodies, and an officer of Licensee shall provide Licensor with a written
certification to such effect. Notwithstanding the foregoing, the Parties may continue to exercise the rights granted in Section 7.7. 
 7.9      Licenses.  The license(s) granted to Licensee in this Agreement shall terminate upon any termination of this Agreement and, in such event, Licensee
shall cease, and cause its Sublicensees to cease, all uses of Licensor IP Rights or the Technology for any purposes, including but not limited to, the Research, development, manufacturing and commercialization of any Product. Notwithstanding the
foregoing, the Parties may continue to exercise the rights granted in Section 7.7. 

7.10    Survival. The following provisions of this Agreement shall survive expiration or
termination of this Agreement: Article 1; Section 2.5 (regarding performance by Sublicensees and Third Party Contractors); Section 2.6 (regarding Licensor’s retained rights); Section 2.8 (regarding limits on Licensee’s use
of the Technology); Section 3.3 (regarding sole uses of Technology); Section 3.4 (regarding Licensee’s rights in Transfected Cells); Article 6 (regarding payment obligations incurred prior to termination or expiration, record
retention and audit rights); Sections 7.6 through 7.10; Section 8.1 (regarding the ownership of IP rights); Section 8.2 (regarding Patent prosecution); Article 9 (regarding confidentiality); Sections 10.2 and 10.3 (regarding warranties
accrued prior to termination or expiration); Sections 10.4, 10.5 and 10.6 (regarding warranty disclaimers); Article 11 (regarding indemnifications and limitation of liability); Article 12 (regarding dispute resolution); and Article 13 (regarding
miscellaneous provisions). 
 ARTICLE 8 - INTELLECTUAL PROPERTY 

8.1      Ownership of IP. 

8.1.1    General.  [***] shall be owned by Licensor, and
Licensee hereby assigns to Licensor its entire right, title and interest in and to any Improvements developed, conceived, reduced to practice, or invented by Licensee or its Sublicensees pursuant to the Activities contemplated by this Agreement.
Licensee shall disclose or cause to be disclosed to Licensor all Improvements made by or under authority of Licensee or its Sublicensees pursuant to the Activities contemplated by this Agreement during the Term. Licensee (including its Sublicensees)
shall maintain records in sufficient detail and in good scientific manner to properly reflect all work done and results achieved in connection with Improvements hereunder. Licensee (including its Sublicensees) shall promptly execute all documents
and take all such other actions as may be reasonably requested to enable Licensor to Prosecute and Maintain Patents on the Improvements. 
 8.1.2    [***] shall be owned by Licensee; provided, that, Licensee hereby grants to Licensor a non-exclusive, sublicensable (through multiple tiers), perpetual,

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -21-

 
irrevocable license in and to any such unseverable Improvements for use in connection with the Technology. 

8.1.3    Licensee Product Improvements. [***] shall be owned by
Licensee. For clarity, the Antibodies and Products are deemed to be severable from the Technology, and not subject to either Section 8.1.1 or 8.1.2. 
 8.2     Patent Prosecution. As between Licensor and Licensee, Licensor shall have the right, at its expense, to control the Prosecution and Maintenance of the Licensor
Patent Rights and any Patents on Improvements owned by Licensor as provided under Section 8.1.1 above, using counsel of its choice. As used in this Article 8, “Prosecution and Maintenance” (and “Prosecute and Maintain”)
shall mean the preparing, filing, prosecuting and maintenance of such Patents, as well as re-examinations, reissues, requests for patent term extensions and the like with respect to such Patents, together with the conduct of interferences, the
defense of oppositions and other similar proceedings with respect to such Patents. 

8.3     Infringement by Third Party. Subject to the provisions of this Section 8.3,
in the event that Licensee becomes aware that any Licensor Patent Right is being infringed by a Third Party or is subject to a declaratory judgment action arising from such infringement, Licensee shall promptly notify Licensor. Licensor shall have
the sole right (but not the obligation) to enforce the Licensor Patent Rights covering the Technology (an “Enforcement Action”). Licensee shall reasonably cooperate with Licensor in all such actions or proceedings. Licensee agrees to be
joined as a plaintiff if necessary and shall provide all reasonable cooperation (including any necessary use of its name) required to prosecute such litigation at Licensor’s cost and expense. Licensor shall have the sole benefit of any damages
collected from any such Enforcement Action. 
 8.4     Third Party Infringement
Claims. Licensee shall promptly notify Licensor in writing of any claims that Licensee’s use of the Licensor Patent Rights and/or Licensor Know-How infringes or improperly or unlawfully uses the proprietary rights of any Third Party.
Licensor shall have the sole right and the obligation to use commercially reasonable efforts to take all such steps and proceedings and to do all other acts and things as may in Licensor’s sole discretion be necessary to defend such claims and
Licensee shall permit Licensor to have the sole conduct of any such steps and proceedings, including the right to settle them. Licensee hereby agrees to use commercially reasonable efforts to co-operate fully with Licensor at Licensor’s cost
and expense. Licensor shall be entitled to retain any and all monies received from such proceedings. 

8.5     Product Markings and Trademarks. Each Product marketed and sold by Licensee or
its Sublicensees under this Agreement shall be marked with all patent and other intellectual property notices relating to the Licensor Patent Rights as may be required by applicable law. Subject to the terms and conditions of this Agreement,
Licensor hereby grants to Licensee a non-exclusive, revocable license, with the limited right to sublicense to its Sublicensees, to use and display the “Potelligent® CHOK1SVTM” trademark solely for marking the Products, if required, under this Section 8.5. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -22-

 ARTICLE 9 - 
 CONFIDENTIALITY AND PUBLICATION 

9.1      Confidential Information.      The Parties
recognize that each Party’s Confidential Information constitutes highly valuable and proprietary assets of the disclosing Party. 
 9.1.1      The Parties agree that Confidential Information shall not be deemed to include information that the receiving Party can demonstrate by written
documentation: 
 9.1.1.1       is now, or hereafter
becomes, through no act or failure to act on the part of the receiving Party, in the public domain or generally publicly available; 
 9.1.1.2       is rightfully known by the receiving Party or its Affiliates without restriction on disclosure at the time of receiving such information, as
evidenced by credible evidence; 
 9.1.1.3       is
furnished to the receiving Party or its Affiliates by a Third Party under no obligation of confidentiality, as a matter of right and without restriction on disclosure; or 

9.1.1.4       is independently discovered or developed by the
receiving Party or its Affiliates without reference to or use of the disclosing Party’s Confidential Information. 
 9.1.2      Each Party agrees that, notwithstanding the termination or expiration of this Agreement, the receiving Party shall maintain all Confidential Information of
a disclosing Party in confidence and shall not publish, disseminate or otherwise disclose a disclosing Party’s Confidential Information to any Third Party, nor use any Confidential Information of a disclosing Party, without the written consent
of the disclosing Party, except for the purpose of this Agreement as provided in this Article 9. Notwithstanding the foregoing, the receiving Party may disclose and disseminate Confidential Information of the disclosing Party only to those
Affiliates, Sublicensees, employees or contractors of the receiving Party who have a bona fide need to know for the purpose of this Agreement, and only after such Affiliates, Sublicensees, employees or contractors have been advised of the
confidential nature of such information and are bound in writing by an obligation of confidentiality under terms substantially similar to, and as protective of the disclosing Party as, the confidentiality obligations in this Agreement.
Notwithstanding anything to the contrary, unless it has obtained Licensee’s prior written consent, Licensor shall not disclose any Confidential Information of Licensee to any Affiliate of Licensor (including, without limitation, Kyowa Hakko
Kirin Co., Ltd.) that is involved in research or development relating to human therapeutics. For clarity, Licensor’s routine financial reporting to an Affiliate (including, without limitation, Kyowa Hakko Kirin Co., Ltd.) shall not been deemed
a prohibited disclosure of Licensee’s Confidential Information. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -23-

 9.2      Permitted Use and
Disclosures.    Each receiving Party may (i) use Confidential Information of a disclosing Party to exercise its rights or perform its obligations hereunder, or (ii) use or disclose Confidential Information of a
disclosing Party to the extent such use or disclosure is reasonably necessary in (a) complying with applicable governmental regulations or otherwise submitting information to governmental authorities, (b) conducting clinical trials or
applying for regulatory approvals, and (c) negotiating or making a permitted sublicense, provided that if a receiving Party is required to make any such disclosure of a disclosing Party’s Confidential Information pursuant to clause
(ii)(a), it shall make commercially reasonable efforts to: (w) give prompt written notice to the disclosing Party of the proposed disclosure to the relevant governmental authority, and allow the disclosing Party at least thirty (30) days
to object to all or any portion of the disclosure before it is disclosed; (x) if advance notice is not possible, provide written notice of disclosure immediately thereafter; (y) to the extent possible, minimize the extent of such
disclosure; and (z) secure confidential treatment of such information prior to its disclosure (whether through protective orders or otherwise), it being understood that any information so disclosed shall otherwise remain subject to the
limitations on use and disclosure hereunder. The Party proposing to disclose any Confidential Information under this provision shall take into reasonable consideration any comments and objections raised by the disclosing Party. 

9.3      Press Releases.    The text of any press release or
other communication to be published by or presented in the media concerning the subject matter of this Agreement shall require the prior written approval of all Parties, except as may be required by law or regulation. 

9.4      Disclosures Required by Law.  If a public disclosure is required
by law, rule or regulation, including in a filing with the Securities and Exchange Commission, the disclosing Party shall provide copies of the disclosure reasonably in advance of such filing or other disclosure, but not later than ten
(10) Business Days prior to the filing, for a non-disclosing Party’s prior review and comment and to allow a non-disclosing Party a reasonable time to object to any such disclosure or to request confidential treatment thereof.
Notwithstanding the foregoing, the Parties hereby agree to issue a press release subsequent to the Effective Date, the content of which shall be approved by the Parties as soon as practical. 

9.5      Review of Proposed Publications, Presentations or Patent Applications. No
Party shall publish any manuscript, abstract, specification, text and/or any other material (“Materials”) that includes information about this Agreement or another Party’s Confidential Information without providing a copy of the
materials to the reviewing Parties and obtaining such other Parties’ consent pursuant to this Section 9.5. For clarity, this shall not limit Licensee from publishing its research or clinical results relating to any Product (including
without limitation the results of any clinical trial), provided that Licensee may not disclose another Party’s Confidential Information. Without the consent of Licensor, Licensee shall not publish any Materials that disclose Confidential
Information of Licensor. Without the consent of Licensee, Licensor shall not publish any Materials relating to any Product. A receiving Party shall review any such materials provided to it by the publishing Party to determine if Confidential
Information is or may be disclosed. A reviewing Party shall notify the publishing Party in writing within thirty (30) calendar days after receipt of the proposed 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -24-

 
publication if the receiving Party determines that Confidential Information of the reviewing Party is or may be disclosed. If it is determined by the receiving Party that patent applications
should be filed, the publishing Party shall delay its submission for publication or presentation for a period not to exceed sixty (60) calendar days from the reviewing Party’s receipt of the proposed publication to allow time for filing of
one or more patent applications. In the event that the delay needed to complete the filing of any necessary patent application exceeds the 60-day period, the Parties shall discuss the need for obtaining an extension of the publication delay beyond
the 60-day period. If it is determined by the reviewing Party that Confidential Information of such Party is being disclosed, the publishing Party shall comply with any request to remove the Confidential Information from the proposed publication to
avoid such disclosure. 
 9.6      Confidential Terms.  Except as
expressly permitted in this Agreement, no Party shall disclose any terms of this Agreement to any Third Party without the prior written consent of the other Parties; except that such consent shall not be required for disclosure to actual or
prospective investors or acquirers or to a Party’s accountants, attorneys and other professional advisors (provided that such disclosures shall be subject to continued confidentiality obligations at least as strict as are set forth herein).

 9.7      Return or Destruction of Confidential
Information.  Upon termination or expiration of this Agreement, Licensor and Licensee shall each, at its sole discretion, either promptly return to the other all Confidential Information of the other (including any copies or extracts
thereof) or destroy all such Confidential Information and all tangible items comprising, bearing or containing any such Confidential Information and provide a written certification of such destruction; provided, however, that each Party may retain
one (1) copy of such Confidential Information for archival purposes and for ensuring compliance with this Article 9. 
 9.8      Use of Performance Data.    Notwithstanding anything to the contrary contained in this Agreement, Licensee agrees that Licensor may use
redacted cell line performance data for cell lines produced for Licensee hereunder for the purposes of marketing the Potelligent CHOK1SV Technology. The Parties shall use the mechanism set forth in Section 9.5 for the review and clearance of
any such redacted cell line performance data. 
 ARTICLE 10 

REPRESENTATIONS, WARRANTIES AND COVENANTS 
 10.1    Mutual Representations, Warranties and Covenants.     Licensor and Licensee each warrants, represents and covenants to the other that:

 10.1.1 Organization.  It is duly organized and validly existing under the laws of
its jurisdiction of incorporation, and has full corporate power and authority to enter into this Agreement and to perform its obligations hereunder; 

10.1.2 Authority.  This Agreement has been duly authorized, executed and delivered by
such Party and constitutes valid and binding obligations of such Party, 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -25-

 
enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, and other laws of general application limiting the enforcement of
creditors’ rights; 
 10.1.3 Consents and Approvals. Such Party has obtained all necessary
consents, approvals and authorizations of all governmental authorities and Third Parties required to be obtained by such Party in connection with the execution of this Agreement; 

10.1.4 No Conflicts. The execution, delivery and performance of this Agreement does not conflict with, or
constitute a breach or default under any of the charter or organizational documents of such Party, any law, order, judgment or governmental rule or regulation applicable to such Party, or any material agreement, contract, commitment or instrument to
which such Party is a party. 
 10.1.5 Assignment of IP Rights. Each employee,
consultant, agent or Sublicensee of such Party performing work under this Agreement has, and during the Term will have, a legally binding and outstanding obligation to assign the rights of such employee, consultant, agent or Sublicensee to any
Improvements to such Party. 
 10.2    Licensor’s Representations, Warranties and
Covenants.    Licensor represents, warrants and covenants to Licensee that (i) it has the right to grant the rights and licenses granted herein [***], (ii) [***] in the performance of this Agreement, or the exercise
of any rights obtained hereunder, Licensor will comply with all applicable laws, regulations, rules, orders and other requirements, now or hereafter in effect, [***]. 

10.3    Licensee’s Representations, Warranties and
Covenants.    Licensee represents, warrants and covenants to Licensor that in the performance of this Agreement, or the exercise of any rights obtained hereunder, Licensee will comply with and will cause its Affiliates and
Sublicensees to comply with, all applicable laws, regulations, rules, orders and other requirements, now or hereafter in effect. 
 10.4    DISCLAIMER OF WARRANTIES.  EXCEPT AS SET FORTH IN THIS AGREEMENT, LICENSOR AND LICENSEE MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OR CONDITIONS OF ANY
KIND, EITHER EXPRESS OR IMPLIED (IN THE CASE OF LICENSOR, INCLUDING WITH RESPECT TO THE TECHNOLOGY), INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF THE PATENTS LICENSED HEREUNDER, OR
NONINFRINGEMENT OF THE IP RIGHTS OF THIRD PARTIES. IN PARTICULAR, LICENSOR OFFERS NO REPRESENTATION OR WARRANTIES THAT THE USE OF ALL OR ANY PART OF THE TECHNOLOGY WILL RESULT IN THE SUCCESSFUL COMMERCIALIZATION OF ANY PRODUCT FOR ANY PURPOSE.

 10.5    MATERIALS DISCLAIMER.  THE TRANSFECTION SUPPLEMENTS, VECTORS AND
POTELLIGENT® CHOK1SV TRANSFERRED PURSUANT TO THIS 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -26-

 
AGREEMENT, WHEN COMBINED WITH AN ANTIBODY, ARE IN THE DEVELOPMENTAL STAGE AND MAY HAVE HAZARDOUS PROPERTIES. THE VECTORS, TRANSFECTION SUPPLEMENTS AND POTELLIGENT® CHOK1SV ARE UNTESTED AND, EXCEPT AS SET FORTH IN THIS AGREEMENT, PROVIDED “AS IS” WITH NO WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. LICENSEE SHALL BEAR ALL RISK RELATING TO THE VECTORS, POTELLIGENT® CHOK1SV, AND TRANSFECTION SUPPLEMENTS TRANSFERRED TO LICENSEE, AND LICENSOR SHALL NOT BE LIABLE UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY FOR
ANY DAMAGES INCLUDING DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY IN CONNECTION THEREWITH. 
 10.6    IP DISCLAIMER.  EXCEPT AS OTHERWISE EXPLICITLY PROVIDED IN THIS AGREEMENT, NOTHING IN THIS AGREEMENT IS OR SHALL BE CONSTRUED AS: (i) A WARRANTY OR
REPRESENTATION BY LICENSOR AS TO THE VALIDITY, ENFORCEABILITY OR SCOPE OF ANY CLAIM WITHIN LICENSOR IP RIGHTS; (ii) A WARRANTY OR REPRESENTATION THAT ANYTHING MADE, USED, OFFERED FOR SALE, SOLD OR OTHERWISE DISPOSED OF UNDER ANY LICENSE GRANTED
IN THIS AGREEMENT IS OR SHALL BE FREE FROM INFRINGEMENT OF ANY PATENT RIGHTS OR OTHER IP RIGHT OF A THIRD PARTY; (iii) AN OBLIGATION TO BRING OR PROSECUTE ACTIONS OR SUITS AGAINST THIRD PARTIES FOR INFRINGEMENT OF ANY OF THE LICENSOR IP RIGHTS;
OR (iv) GRANTING BY IMPLICATION, ESTOPPEL, OR OTHERWISE ANY LICENSES OR RIGHTS UNDER IP RIGHTS OF LICENSEE OR LICENSOR OR THIRD PARTIES, REGARDLESS OF WHETHER SUCH IP OR OTHER RIGHTS ARE DOMINANT OR SUBORDINATE TO ANY LICENSOR IP RIGHTS.

 ARTICLE 11 - 
 INDEMNIFICATION 

11.1    Indemnification by Licensee.   Licensee shall defend, indemnify and
hold harmless Licensor, its Affiliates, and their respective directors, officers, employees and agents from all claims, losses, damages and expenses, including reasonable legal expenses (“Losses”), each to the extent payable to a Third
Party, resulting from suits, claims, actions, demands or other proceedings, in each case brought by a Third Party (“Claims”) to the extent arising out of or relating to (i) the gross negligence, unlawful act or willful misconduct of
Licensee (including its Affiliates and Sublicensees) in connection with its or their performance of this Agreement; or (ii) the making, having made, distribution, sale, offer for sale or use of any Antibody or Product or the use of Licensor IP
Rights or the Technology by Licensee or its Sublicensees, except to the extent that such Losses are a direct result of Licensor’s gross negligence, willful misconduct or unlawful act or its breach of any covenant, representation or warranty
made by it in this Agreement. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -27-

 11.2    [***]Procedure. The following provisions are
conditions on each Party’s indemnification obligations hereunder.  If either Party intends to claim indemnification under this Article 11, it shall promptly notify the other Party (the “Indemnitor”) in writing of any
Claims of a Third Party for which it (the “Indemnitee”) intends to claim such indemnification. Indemnitor shall have sole control of the defense and settlement of any such Claim, provided that Indemnitee shall have the right to participate
in, and, to the extent Indemnitor so desires, to assume the defense thereof with counsel mutually satisfactory to the Parties. The obligations of this Article 11 shall not apply to amounts paid in settlement of any Claims of Third Party if such
settlement is effected without the consent of Indemnitor, which consent shall not be withheld or delayed unreasonably. The failure to deliver written notice to Indemnitor within a reasonable time after the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve Indemnitor of any obligation to Indemnitee under this Article 11. Indemnitee, its or their employees and agents, shall reasonably cooperate with Indemnitor and its legal representatives
in the investigation of any Claim covered by this Article 11. 
 11.3    Insurance
Proceeds.  Any indemnification hereunder shall be made net of any insurance proceeds recovered by the Indemnitee; provided, however, that if, following the payment to the Indemnitee of any amount under this Article 11, such Indemnitee
recovers any insurance proceeds in respect of the Claim for which such indemnification payment was made, the Indemnitee shall promptly pay an amount equal to the amount of such proceeds (but not exceeding the amount of such indemnification payment)
to the Indemnitor. 
 11.4    Insurance.    Each Party shall
procure and maintain insurance policies underwritten by a reputable insurance company or self-insurance, including clinical trial and product liability insurance, and providing adequate coverage for its respective obligations and activities
hereunder. Notwithstanding the foregoing, Licensee and its Affiliates shall procure and/or maintain policies of insurance for comprehensive general liability, clinical trials and products liability coverage in a minimum amount of [***] with respect
to Licensee’s performance under this Agreement. 
 11.5    Limitation of
Liability.     LICENSOR SHALL NOT BE LIABLE TO LICENSEE AND LICENSEE SHALL NOT BE LIABLE TO LICENSOR FOR ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE, SPECIAL OR INDIRECT DAMAGES, INCLUDING LOSS OF ANTICIPATED PROFITS, EXCEPT
TO THE EXTENT SUCH DAMAGES WERE CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OR UNLAWFUL ACT OF THAT PARTY OR ITS AFFILIATES OR SUBLICENSEES. [***] ARISING OUT OF THIS AGREEMENT SHALL BE LIMITED TO THE AGGREGATE VALUE OF THE MONETARY
CONSIDERATION ACTUALLY RECEIVED BY LICENSOR FROM LICENSEE UNDER THIS AGREEMENT. 
 ARTICLE 12 - 

DISPUTE RESOLUTION 
 12.1    Dispute Resolution Philosophy and Process.  Any dispute that may arise between Licensor and Licensee relating to the terms of this Agreement or the activities
of the 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -28-

 
Parties shall be referred to (i) an officer of Licensee and (ii) an officer of each of Lonza and BioWa (collectively, the “Management Representatives”), who shall attempt in
good faith to achieve a resolution. If such Management Representatives are unable to resolve such a dispute within sixty (60) Business Days of the first presentation of such dispute to such Management Representatives, such dispute shall be
referred to an appropriately senior officer of each of Lonza and BioWa and the an appropriately senior officer of Licensee (or their respective designees) who shall use their good faith efforts to mutually agree upon the proper course of action to
resolve the dispute. If any dispute is not resolved by these individuals (or their designees) within thirty (30) Business Days after such dispute is referred to them, or such longer period as they may mutually agree, then Licensee or Licensor
shall have the right to pursue the dispute resolution mechanism provided in Section 12.2 following. 

12.2    International Court of Arbitration.  Any dispute that may arise between
Licensor and Licensee relating to the terms of this Agreement or the activities of the Parties that is not resolved pursuant to Section 12.1 hereof shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce
(“ICC”). The arbitration will be held in New York City, New York before a single arbitrator knowledgeable in biotechnology-related matters and familiar with the biotechnology industry, selected in accordance with the rules and regulations
of the ICC. The arbitration will be conducted in the English language and in accordance with the rules and regulations promulgated by the ICC, unless specifically modified in this Agreement. The arbitration must commence within sixty (60) days
of the date on which the arbitrator is selected. The arbitrator will have the power to order the production of documents by each Party and any Third Party witnesses; however, the arbitrator will not have the power to order the taking of depositions,
the answering of interrogatories or the responses to requests for admission. Each Party must provide to the other, no later than seven (7) business days before the date of arbitration, the identity of all persons that may testify at the
arbitration and a copy of all documents that may be introduced at the arbitration or considered or used by a Party’s witness or expert. The arbitrator’s decision and award will be made and delivered as soon as reasonably possible and in
any case within six (6) months of the selection of the arbitrator. The arbitrator’s decision must set forth a reasoned basis for any award of damages or finding of liability. The arbitrator will not have power to award damages in excess of
actual compensatory damages unless expressly authorized by this Agreement and may not multiply actual damages or award punitive damages or any other damages that are specifically excluded under this Agreement. The Parties covenant and agree that
they will participate in the arbitration in good faith and that they will share equally the costs of the arbitration, except as otherwise provided herein. Any Party refusing to comply with an order of the arbitrator will be liable for costs and
expenses, including attorneys’ fees, incurred by the other Parties in enforcing the award. Notwithstanding the foregoing to the contrary, in the case of temporary or preliminary injunctive relief, any party may proceed in court without prior
arbitration for the purpose of avoiding immediate and irreparable harm. The provisions of this Section will be enforceable in any court of competent jurisdiction. 

12.3    No Limitation.  Notwithstanding the foregoing, nothing in this Agreement
shall be construed as limiting in any way the right of a Party to immediately seek temporary 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -29-

 
and/or preliminary injunctive relief from a court of competent jurisdiction with respect to any actual or threatened breach of this Agreement. 

 
 ARTICLE 13 - MISCELLANEOUS PROVISIONS 

13.1    Advice of Counsel.  Licensee and Licensor have consulted counsel of their
choice regarding this Agreement and each acknowledges and agrees that this Agreement shall not be deemed to have been drafted by one Party or another and shall be construed accordingly. 

13.2    Assignment.  Licensee shall not assign this Agreement without the prior
written consent of Licensor, except that Licensee may assign this Agreement without consent to an Affiliate, or to a successor to all or substantially all of its business or assets. In order for an assignment under this provision to become
effective, the permitted assignee shall confirm to Licensor in writing that it will assume all obligations of Licensee under this Agreement from the date of the assignment. No assignment shall relieve the assignor of its obligations which accrued
prior to the date of assignment. If any permitted assignment by Licensee would result in withholding or other similar taxes becoming due on payments to Licensor under this Agreement, Licensee shall be responsible for all such taxes and the amount of
such taxes shall not be withheld or otherwise deducted from the amounts payable to Licensor. If, in such event, Licensor actually reduces the amount of income tax paid by it as a result of using a credit for the amount of such withholding or similar
taxes paid by the Licensee, then Licensor shall promptly refund to Licensee the amount of such reduction in income tax resulting from the use of such credit. [***] 

13.3    Binding Effect.  This Agreement, the rights granted and obligations assumed
hereunder shall be binding upon and shall inure to the benefit of Licensee, Licensor and their respective successors and permitted assigns. 
 13.4    Counterparts.  This Agreement may be executed in counterparts, or facsimile versions, each of which shall be deemed to be an original, and all of which
together shall be deemed to be one and the same agreement. 
 13.5    Entire
Agreement.  This Agreement, the Third Party Reviewer Agreement, the 2008 License, the 2008 Letter Agreement, the Lonza License and the exhibits and schedules hereto and thereto, constitute and contain the entire understanding and
agreement of the Parties respecting the subject matter hereof and thereof, and cancel and supersede any and all prior negotiations, correspondence, understandings and agreements between the Parties, whether oral or written, regarding such subject
matter. 
 13.6    Force Majeure.  The failure of Licensor or Licensee to
timely perform any obligation under this Agreement by reason of epidemic, earthquake, riot, civil commotion, fire, act of God, war, terrorist act, strike, flood, or governmental act or restriction, or other cause that is beyond the reasonable
control of that Party shall not be deemed to be a material 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -30-

 
breach of this Agreement, but shall be excused to the extent and for the duration of such cause, and that Party shall provide the other Parties with full particulars thereof as soon as it becomes
aware of the same (including its best estimate of the likely extent and duration of the interference with its activities) and shall use commercially reasonable efforts to avoid or remove such cause, and shall perform its obligation(s) with the
utmost dispatch when the cause is removed. If the performance of any such obligation under this Agreement is delayed owing to such a force majeure for any continuous period of more than one hundred eighty (180) days, the Parties hereto shall
consult with respect to an equitable solution, including the possibility of the mutual termination of this Agreement. 
 13.7    Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments and to do all such other acts as may be reasonably necessary or
appropriate in order to carry out the purposes and intent of this Agreement. The Parties shall cooperate and use commercially reasonable efforts to make all other registrations, filings, and applications, to give all notices, and to obtain as soon
as practicable all governmental or other consents, transfers, approvals, orders, qualifications, authorizations, permits, and waivers, if any, and to do all other things necessary or desirable for the consummation of this Agreement. 

13.8    Governing Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to the application of principles of conflicts of law. 
 13.9    Interpretation.    The captions and headings in this Agreement are for convenience only, and are to be of no force or effect in construing or
interpreting any provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections or Exhibits mean the particular Articles, Sections or Exhibits to this Agreement and references to this Agreement include all Exhibits
hereto. Unless the context otherwise clearly requires, whenever used in this Agreement: (i) the words “include” or “including” shall be construed to have the inclusive meaning frequently identified with the phrase
“including but not limited to” or “including without limitation;” (ii) the word “day” or “year” means a calendar day or year; (iii) the word “notice” shall mean notice in writing (whether
or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement; (iv) the words “hereof,” “herein,” “hereby” and derivative or similar
words refer to this Agreement (including any Exhibits); (v) the word “or” shall be construed to have the inclusive meaning identified with the phrase “and/or;”(vi) words of any gender include the other gender;
(vii) references to the plural shall be deemed to include the singular and the plural, the part and the whole; and (viii) references to any specific law, rule or regulation, or article, section or other division thereof, shall be deemed to
include the then-current amendments thereto or any replacement law, rule or regulation thereof. 

13.10  No Implied Licenses to Use of Name or Trademark.  Except as otherwise specifically
provided in Section 8.5, no right, expressed or implied, is granted by this Agreement to a Party to use in any manner the name or any other trademark of any other Party in connection with the performance of this Agreement. 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -31-

 13.11  Independent Contractors.  Each Party is an
independent contractor under this Agreement. Nothing contained in this Agreement is intended nor is to be construed so as to constitute Licensee or Licensor as partners or joint venturers with respect to this Agreement. No Party shall have any
express or implied right or authority to assume or create any obligations on behalf of or in the name of any other Party, or to bind any other Party to any other contract, agreement or undertaking with any Third Party or Affiliate. 

13.12  Notices and Deliveries.  Any formal notice, request, delivery, approval or consent
required or permitted to be given under this Agreement shall be in writing in English and shall be deemed to have been sufficiently given when it is received, whether delivered in person, transmitted by facsimile with contemporaneous confirmation by
mail, delivered by certified mail (or its equivalent), or delivered by courier service (receipt required), to the Party to which it is directed at its address shown below or such other address as such Party shall have last given by notice to the
other Parties. 
  

			
	        If to Licensor:	  	  With a copy to:
		
	BioWa, Inc.	  	Alfred W. Zaher, Esq.
	212 Carnegie Center, Suite 101	  	Blank Rome LLP
	Princeton NJ 08540, USA	  	130 North 18th Street
	Attn: Masamichi Koike, Ph.D., President and CEO	  	Philadelphia, PA 19103
	Tel: 1 (609) 580-7500	  	United States of America
		
	Fax: 1 (609) 580-7534	  	Fax: 1 (215) 832-5364
		
	And	  	 With a copy to:
		
	Lonza Sales AG	  	Lonza Biologics Plc
	Munchensteinerstrasse 38	  	228 Bath Road
	Basel	  	Slough, SL1 4DX
	CH-4002, Switzerland	  	United Kingdom
	Attn:  General Counsel	  	Attn:  Company Secretary
	Fax:  +41 61 316 91 11	  	Fax:  +44 1753 777 001
		
	If to Licensee:	  	With a copy to:
		
	Kalobios Pharmaceuticals, Inc.	  	Gunderson Dettmer et al.
	260 East Grand Avenue	  	1200 Seaport Boulevard
	South San Francisco, CA 94080	  	Redwood City, CA 94063
	Attention: Legal	  	Attention: Colin D. Chapman, Esq,

 13.13  Severability.  If any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision, so long as the Agreement, taking into account said voided provision,
continues to provide the Parties with materially the same 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -32-

 
benefits as set forth in this Agreement on the Effective Date. If, after taking into account said voided provision, the Parties are unable to realize materially the same, the Parties shall
negotiate in good faith to amend this Agreement to reestablish (to the extent legally permissible) the benefits as provided the Parties under this Agreement on the Effective Date. 

13.14    Waiver.    No waiver, modification or amendment of any provision
of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party. The failure of either Party to assert a right hereunder or to insist upon compliance with any term or condition of this
Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition. 
 13.15    Exhibits.  The exhibits attached to this Agreement shall form an integral part hereof. In the event of any inconsistency between this Agreement and any
exhibit, this Agreement shall prevail. 
 13.16    Section 365(n) of the Bankruptcy
Code.    All rights and licenses granted under or pursuant to any section of this Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to
“intellectual property” as defined under Section 101(35A) of the Bankruptcy Code. The Parties shall retain and may fully exercise all of their respective rights and elections under section 365(n) of the Bankruptcy Code. 

(signature page follows) 

  
 [***]CONFIDENTIAL
PORTIONS OF THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  
 -33-

 IN WITNESS WHEREOF, the Parties have put their names and affixed
their seals or executed this Agreement and each Party shall have one (1) copy. 
  

			
	LONZA SALES AG	 	BIOWA, INC.
		
	By:
                                        
	 	By:
                                        

	Name:	 	Name:
	Title:	 	Title:
		
	LONZA SALES AG	 	
		
	By:
                                         
                   	 	
	Name:	 	
	Title:	 	
		
	KALOBIOS PHARMACEUTICALS, INC.	 	
		
	By:                            
                        	 	
	Name:	 	
	Title:	 	

  
 [***]CONFIDENTIAL PORTIONS OF
THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

 EXHIBIT 1 
 LICENSOR PATENT RIGHTS 
  

															
	KHK ID  	  	Title	 	Country  	 	Application No.	 	Publication No.    	 	  
 Filing Date    
 (y/m/d)    

 
	 	Patent No.    	 	Issue Date
	 [***]
	  	  
 [***]
	 	[***]  	 	[***]	 	[***]	 	[***]	 	 	 	 
	  		 	  

[***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  

[***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  

[***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	
[***]
	  	[***]	 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	 	 	 
	 	  		 	  
 [***]  
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 	  		 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 	  	 	 	  
 [***]  
	 	[***]	 	[***]	 	[***]	 	 	 	 

  
 [***]CONFIDENTIAL PORTIONS OF
THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

															
	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	  	[***]	 	  
 [***]
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  	 	 	  
 [***]
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  	[***]	 	  
 [***]
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  	[***]	 	  
 [***]
	 	[***]	 	 	 	[***]	 	[***]	 	[***]
	 	  	[***]	 	  
 [***]
	 	[***]	 	 	 	[***]	 	[***]	 	[***]

  
 [***]CONFIDENTIAL PORTIONS OF
THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

					
	 [***]	  		  	

  
 [***]CONFIDENTIAL PORTIONS OF
THIS DOCUMENT REDACTED AND SEPARATELY FILED WITH THE COMMISSION.EX-10.1

 Exhibit 10.1 
 EXECUTION COPY 
 EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT, dated as of June 8, 2012 (this “Agreement”), between American Railcar Industries, Inc., a North
Dakota corporation (the “Company”) and Mr. James Cowan (the “Employee”). 
  

	1.	Employment 

 (a) Upon the terms and
conditions hereinafter set forth, the Company hereby agrees to employ the Employee and the Employee hereby agrees to become so employed. During the Term of Employment (as hereinafter defined), the Employee shall be employed in the position of the
President and Chief Executive Officer of the Company, reporting to the Board of Directors of the Company (the “Board”), and as an officer of subsidiaries of the Company as specified and directed by the Board from time to time, and shall
perform such duties, consistent with such status and position, as are specified from time to time by, and shall serve in such capacities at the pleasure of, the Company and the Board, subject to the terms hereof. 

(b) During the Term of Employment (as hereinafter defined), the Employee shall devote all of his professional attention, on a full time basis, to the
business and affairs of the Company and shall use his best efforts to advance the best interest of the Company and shall comply with all of the policies of the Company, including, without limitation, such policies with respect to legal compliance,
conflicts of interest, confidentiality and business ethics as are from time to time in effect. 
 (c) During the Term of Employment, the
Employee shall not, without the prior written consent of the Company’s Compensation Committee, directly or indirectly render services to, or otherwise act in a business or professional capacity on behalf of or for the benefit of, any other
“Person” (as defined below) as an employee, advisor, member of a board or similar governing body, independent contractor, agent, consultant, representative or otherwise, whether or not compensated. “Person” or “person”,
as used in this Agreement, means any individual, partnership, limited partnership, corporation, limited liability company, trust, estate, cooperative, association (except homeowners), organization, proprietorship, firm, joint venture, joint stock
company, syndicate, company, committee, government or governmental subdivision or agency, or other entity. 
  

	2.	Term 

 The employment period of the
Employee hereunder shall commence on May 1, 2012, and shall continue through May 1, 2014 (May 1, 2014 being the “Expiration Date”) (such period being referred to herein as the “Term of Employment”). 

 

	3.	Compensation 

 For all services to be
performed by the Employee under this Agreement, during the Term of Employment, the Employee shall be compensated in the following manner: 
  

	 	(a)	Base Compensation  

 The Company will pay
the Employee a salary (the “Base Salary”) at an annual rate of $385,000 per full 365-day year. The Base Salary shall be payable in accordance with the normal payroll practice of the Company. The Base Salary will be reviewed periodically by
the Board of Directors as is customary with other officers. Following such review, the Board of Directors may, at its absolute and sole discretion, increase (but shall not be required to increase) the Base Salary or other benefits. 

	 	(b)	Bonus Compensation 

 The Employee’s
annual bonus target for each calendar year of employment ending on or after December 31, 2012 shall be 60% of Base Salary. Actual bonus paid may be less than or greater than target based on the performance evaluation by the Board (or a
committee thereof) in an annual bonus plan for each calendar year. The compensation payable as contemplated in the preceding sentence of this section 3(b) is referred to herein as “Bonus Compensation”. The Bonus Compensation in respect of
any calendar year, if due under the then current bonus Plan, shall be paid in accordance with such plan. 
  

	 	(c)	Long-Term Incentive Compensation 

 The
Employee will be eligible to participate in the Company’s Equity Incentive plan (or successor plan) as may be in effect from time to time in accordance with the terms of such plan. 

 

	 	(d)	Taxes 

 All amounts paid to the Employee
under or pursuant to this Agreement, including, without limitation, the Base Salary and any Bonus Compensation or Long-Term Incentive Compensation, if any, any other compensation or benefits, whether in cash or in kind, shall be subject to normal
federal, state and, if applicable, local or foreign tax withholding and deductions imposed by any one or more federal, state, local and or foreign governments, or pursuant to any foreign or domestic applicable law, rule or regulation. 

 

	4.	Benefits. 

 During the Term of Employment,
and in addition to any benefits and perquisites to which the Employee is otherwise entitled pursuant to this Agreement, the Employee shall be entitled to receive health care, group term life insurance, group long-term disability insurance, 401(k)
participation, vacation, and other similar employee benefits at least equal to those currently or subsequently received by other senior employees of the Company as such may be provided by the Company in its sole and absolute discretion from time to
time. In addition, during the Term of Employment, the Employee shall be entitled to reimbursement for the payment of reasonable country club dues (but, not including initiation fees). 

 

	5.	Termination 

 This Agreement shall
terminate (subject to Section 9(f) below (Survival Provision)) and the Term of Employment and the employment of Employee hereunder shall end, on the first to occur of any of the following (each a “Termination Event”): 

 

	 	(a)	The Expiration Date; 

  

	 	(b)	The: (i) death of the Employee or (ii) determination of the Board, that the Employee has become physically or mentally incapacitated so as to be unable to
perform the essential functions of Employee’s duties to the Company for (x) 60 consecutive days or (y) 80 days in any 12-month period, even with reasonable accommodation, (the “Disability”); 

 

	 	(c)	The discharge of the Employee by the Company with Cause; 

  

	 	(d)	The discharge of the Employee by the Company without Cause; 

  

	 	(e)	The voluntary resignation of the Employee, in which case the Employee agrees to provide the Company with not less than 60 days prior written notice of his resignation,
and in any event the Company may, at its option, declare such resignation to be effective on (x) any day following receipt of such notice or (y) if such notice is not received, any day following such resignation; or

  

									
		  	Page 2	  		  	Confidential	  	

	 	(f)	The voluntary resignation of the Employee for Good Reason. 

 The Company may discharge the Employee at any time, for any reason or no reason, with or without Cause. As used herein, “Cause” is defined as the Employee’s: (i) failure to perform
substantially the duties of the President and Chief Executive Officer of the Company (other than any such failure resulting from incapacity due to Disability), (ii) charged with any crime other than traffic violations, (iii) engagement in
an act of fraud or of willful dishonesty towards the Company, (iv) material breach of this Agreement, (v) willful misconduct or gross negligence in the performance of Employee’s duties hereunder, (vi) violation of a federal or
state securities law or regulation, (vii) the use by Employee of a controlled substance without a prescription or the use of alcohol which impairs Employee’s ability to carry out his duties and responsibilities, (viii) material
violation by the Employee of the Company’s policies and procedures, or (ix) embezzlement and/or misappropriation of property of the Company or any of its affiliates. 
 As used herein, “Good Reason” means the occurrence of any one or more of the following events without the express consent of the Employee: (i) a material breach by Company of its
obligations under this Agreement, (ii) a material diminution in Employee’s position of duties of President and Chief Executive Officer of the Company as set forth in this Agreement, (iii) any reduction in Employee’s Base Salary
or benefits unless such modification is part of a general, pro-rata reduction in the compensation for all executive officers of the Company implemented as a result of financial problems experienced by the Company, or (iv) any relocation of
Employee’s assigned workplace to an area outside of the greater St. Louis metropolitan area. A Good Reason shall not exist until the Company has first failed to cure such failure or breach within 60 days of having been given written notice of
its existence, and the Company is provided a period of 45 days during which it may remedy the Good Reason condition. To the extent the Employee is discharged or resigns, or is otherwise terminated or is deemed terminated, in each case as provided
herein, from his position with the Company, he shall be and be deemed to have ceased his employment in the same manner with all of the subsidiaries of the Company. 
  

	6.	Effect of Termination 

 In the event of
termination of the Employee’s employment hereunder, all rights of the Employee under this Agreement, including all rights to compensation, shall end and the Employee shall only be entitled to be paid the amounts set forth in this Section 6
below; provided, that, the obligations of the Company to make any payment required pursuant to this Section 6 (other than (x) any amounts of the Employee’s Base Salary previously earned and accrued and (y) in
accordance with the Company’s policy, unreimbursed business expenses of the Employee, ((x) and (y) collectively, the “Accrued Obligations”), but with the exception of the Accrued Obligations being payable under clause
(c) below), is conditioned upon (i) execution and delivery by the Employee to the Company of a settlement and release agreement in favor of the Company, its affiliates and their respective officers, directors, employees, agents and equity
holders in respect of the Employee’s employment with the Company and the termination thereof in form substantially as set forth in Exhibit A, attached hereto, and (ii) such agreement, once executed by the Employee and delivered to the
Company, becomes irrevocable, enforceable and final under the applicable law. 

  

									
		  	Page 3	  		  	Confidential	  	

	 	(a)	In the event that the Employee’s employment is terminated for the reason set forth in Section 5(a) above (i.e., Expiration Date), then, in lieu of any other
payments of any kind (including without limitation, any severance payments), the Employee shall be entitled to receive, within thirty (30) days following the date on which the Termination Event in question occurred (the “Clause
(a) Termination Date”) (or, in the case of any Bonus Compensation, as soon as practicable following the calculation thereof): 

  

	 	(i)	the Employee’s Accrued Obligations, due and unpaid to the Employee from the Company as of the Clause (a) Termination Date; and 

 

	 	(ii)	any amounts of Bonus Compensation earned and due in respect of a completed calendar year, which remains unpaid to the Employee as of the Clause (a) Termination
Date. 

  

	 	(b)	In the event that the Employee’s employment is terminated for the reason set forth in Section 5(b) above (i.e., death or Disability), then, in lieu of any
other payments of any kind (including without limitation, any severance payments), the Employee shall be entitled to receive, within thirty (30) days following the date on which the Termination Event in question occurred (the “Clause
(b) Termination Date”) (or, in the case of any Bonus Compensation, as soon as practicable following the calculation thereof): 

  

	 	(i)	the Employee’s Accrued Obligations, due and unpaid to the Employee from the Company as of the Clause (b) Termination Date; 

 

	 	(ii)	any amounts of Bonus Compensation earned and due with respect to a completed calendar year, which remains unpaid to the Employee as of the Clause (b) Termination
Date; and 

  

	 	(iii)	a pro-rated portion of the Bonus Compensation computed as set forth below. 

 

	 	(c)	In the event that the Employee’s employment is terminated due to the discharge of the Employee by the Company without Cause (Section 5(d, above) (which the Company
is free to do at any time in its sole and absolute discretion) or the Employee’s termination of this Agreement for Good Reason (Section 5(f) above), then, in lieu of any other payments of any kind (including, without limitation, any severance
payments), the Employee shall be entitled to receive, within thirty (30) days following the date on which the Termination Event in question occurred (the “Clause (d) or (f) Termination Date”) (other than in the case of
(iii), which shall be paid in accordance with normal payroll practice of the Company or, in the case of any Bonus Compensation, as soon as practicable following the calculation thereof): 

 

	 	(i)	the Employee’s Accrued Obligations, due and unpaid to the Employee from the Company as of the Clause (d) or (f) Termination Date;

  

	 	(ii)	any amounts of Bonus Compensation earned and due with respect to a completed calendar year, which remains unpaid to the Employee as of the Clause (d) or
(f) Termination Date; 

  

	 	(iii)	 a continuation of Base Salary through the period ending on the 180th day following the Clause (d) or (f) Termination Date, to be paid on the same schedule as previously paid. In
connection herewith, Employee agrees that if the Company or any of its affiliates are obligated by law or by contract/policy to pay Employee any severance payment, a termination indemnity, notice pay or otherwise obligated by law to provide advance
notice of separation, including any notice period that arises under the Worker Adjustment and Retraining Notification Act (he “WARN Act”), then the payment due under this Section 6(c)(iv) shall be reduced, on a dollar for dollar
basis, by any such severance pay, termination indemnity, notice, pay or other payments due or arising under the WARN Act or otherwise, and Employee shall promptly refund to the Company any amounts to the extent paid by which such payment is so
reduced. 

  

									
		  	Page 4	  		  	Confidential	  	

	 	(d)	In the event that the Employee’s employment is terminated for the reason set forth in Sections 5(c) (i.e., Cause) or 5(e) (Voluntary Resignation), then, in lieu of
any other payments of any kind (including without limitation, any severance payments), the Employee shall be entitled to receive, within thirty (30) days following the date on which the Termination Event in question occurred (the “Clause
(c) or (e) Termination Date”): 

  

	 	(i)	the Employee’s Accrued Obligations, due and unpaid to the Employee from the Company as of the Clause (c) or (e) Termination Date;

  

	 	(e)	In the event of any termination of the Employee’s employment, the Employee shall be under no obligation to seek other employment, but in the event the Employee
becomes employed during the period specified under clause (iii) of Section 6(c) above, the Employee shall not be entitled to any further payments and shall return, if applicable, any amounts paid to the Employee on or after the subsequent
employment date. The Employee shall correctly disclose to the Company all such remuneration or other benefit, and if there is a written employment agreement in connection therewith, provide the Company with a copy thereof. 

 

	 	(f)	For the purpose of this Section 6, any Bonus Compensation shall be deemed to be earned and to become due and payable with respect to any calendar year only if the
Term of Employment has continued through December 31, of such year and, with respect to the amounts, if any, of such Bonus Compensation for any year, shall be determined based upon the level of attainment of the applicable performance targets
for such year. In the event that, pursuant to the terms of this Section 6, the Employee is entitled to receive any pro rated Bonus Compensation, such pro ration shall be determined following December 31 of the calendar year in which the
Employee ceases to be employed hereunder, and shall be paid in accordance with such plan, and shall be calculated by multiplying the Bonus Compensation that would have been deemed earned and to become due and payable in accordance with the terms of
this Agreement with respect to the calendar year in which the Employee ceases to be employed hereunder if the Term of Employment had continued through December 31 of such year as determined based upon the applicable performance targets for such
year, by a fraction, the numerator of which is the number of days from (and including) January 1 of such year through (and including) the last day of employment hereunder, and the denominator of which is 365. 

 

	7.	Non-Disclosure 

 During the Term of
Employment and at all times thereafter, the Employee shall hold in a fiduciary capacity for the benefit of the Company and each of its affiliates, all secret or confidential information, knowledge or data, including, without limitation, trade
secrets, sources of supplies and materials, customer lists and their identity, designs, production and design techniques and methods, identity of investments, identity of contemplated investments, business opportunities, valuation models and
methodologies, processes, technologies, and any other intellectual property relating to the business of the Company or its affiliates, and their respective businesses, (i) obtained by the Employee during the Employee’s employment by the
Company and any of the subsidiaries of the Company and (ii) not otherwise in the public domain, (“Confidential Information”). The Employee also agrees to keep confidential and not to publish, post on his own or to disclose any
personal information regarding any controlling Person of the Company, including Carl C. Icahn, or any of its or his affiliates and their employees, and any member of the immediate family of any such Person (and all such personal information shall be
deemed “Confidential Information” for the purposes of this Agreement). The Employee shall not, without the prior written consent of the Company (acting at the direction of the Board): (i) except to the extent compelled pursuant to the
order of a court or other body having jurisdiction over such matter or based upon the advice of counsel that such disclosure is legally required, communicate or divulge any Confidential Information to anyone other than the Company and those
designated by the Company; or (ii) use any Confidential Information for any purpose other than the performance of his duties pursuant to this Agreement. The Employee will assist the Company or its designee, at the Company’s expense, in
obtaining a protective order, other appropriate remedy or other reliable assurance that confidential treatment will be accorded any Confidential Information disclosed pursuant to the terms of this Agreement. Employee agrees not to disparage the
Company, its officers and directors, Mr. Icahn, or Related Parties, or any affiliate of any of the foregoing, in each case during and/or after his employment hereunder. 

  

									
		  	Page 5	  		  	Confidential	  	

 All processes, know-how, technologies, trade-secrets information, intellectual property and inventions
(collectively, “Inventions”) conceived, developed, invented, made or found by the Employee, alone or with others, during the Term of Employment and out of the performance of his duties and responsibilities hereunder, whether or not
patentable and whether or not on the Company’s or any of its subsidiaries’ time or with the use of the Company’s or any of its subsidiaries’ facilities or materials, shall be the property of the Company or its respective
subsidiary, as the case may be, and shall be promptly and fully disclosed by the Employee to the Company. The Employee shall perform all necessary acts (including, without limitations, executing and delivering any confirmatory assignments, power of
attorney, documents, or instruments requested by the Company or any of its subsidiaries) to vest title to any such Invention in the Company or the applicable subsidiary and to enable the Company or the applicable subsidiary, at their expense, to
secure and maintain domestic and/or foreign patents or any other rights for such Inventions. 
 All right, title and interest in all
copyrightable material that the Employee shall conceive or originate individually or jointly or commonly with others, and that arise during the term of his employment with the Company and out of the performance of his duties and responsibilities
under this Agreement, shall be the property of the Company and are hereby assigned by the Employee to the Company, along with ownership of any and all copyrights in the copyrightable material. Upon request and without further compensation therefor,
but at no expense to the Employee, the Employee shall execute any and all papers and perform all other acts necessary to assist the Company to obtain and register copyrights on such materials in any and all countries. Where applicable, works of
authorship created by the Employee for the Company in performing his duties and responsibilities hereunder shall be considered “works made for hire,” as defined in the U.S. Copyright Act. 

 

	8.	Non-Compete and Non-Solicitation 

  

	 	(a)	In addition to, and not in limitation of, all of the other terms and provisions of this Agreement, the Employee agrees that during the Term of Employment, the Employee
will comply with the provisions of Section 1 above. 

  

	 	(b)	Except as provided below, for a period of six months following the last day of employment by the Company (the “Non-Compete Period”), the Employee will not,
either directly or indirectly, as principal, agent, owner, employee, director, partner, investor, shareholder (other than solely as a holder of not more than 1% of the issued and outstanding shares of any public corporation), consultant, advisor or
otherwise howsoever own, operate, carry on or engage in the operation of or have any financial interest in or provide, directly or indirectly, financial assistance to or lend money to or guarantee the debts or obligations of any Person carrying on
or engaged in any business that is similar to or competitive with the business conducted by the Company or any of its subsidiaries during or on the date of termination of Employee’s employment. The business of manufacturing, selling, leasing,
and/or distributing railcars and railcar parts and other related products shall be and be deemed to be “competitive” with the business conducted by the Company for the purposes hereof. The Company shall have the right, in its sole
discretion, upon written notice to Employee within seven calendar days of his last day of employment by the Company, to extend the Non-Compete Period for up to six additional months by paying Employee, as additional severance pay, $32,083 per month
during the extended Non-Compete Period; provided that the Non-Compete Period shall be for no longer than one year in the aggregate, and provided further that for the avoidance of doubt, Employee shall not be entitled to any other compensation
or payments relating to the obligations set forth in this Section 8, except as expressly provided in Section 6. 

  

									
		  	Page 6	  		  	Confidential	  	

	 	(c)	The Employee covenants and agrees with the Company and its subsidiaries that, during the Term of Employment and for two years following the last day of employment by
the Company, the Employee shall not directly, or indirectly, for himself or for any other Person: 

  

	 	(i)	solicit, interfere with or endeavor to entice away from the Company or any of its subsidiaries or affiliates, any current or prospective supplier, customer, client or
any Person in the habit of dealing with any of the foregoing; 

  

	 	(ii)	attempt to direct or solicit any current or prospective supplier, customer or client away from the Company or any of its subsidiaries or affiliates;

  

	 	(iii)	interfere with, entice away or otherwise attempt to obtain or induce the withdrawal of any employee of the Company or any of its subsidiaries or affiliates; or

  

	 	(iv)	advise any Person not to do business with the Company or any of its subsidiaries or affiliates. 

 The Employee represents to and agrees with the Company that the enforcement of the restrictions contained in Section 7 and Section 8 (the Non-Disclosure and Non-Compete and Non-Solicitation
sections respectively) would not be unduly burdensome to the Employee and that such restrictions are reasonably necessary to protect the legitimate interests of the Company. The Employee agrees that the remedy of damages for any breach by the
Employee of the provisions of either of these sections may be inadequate and that the Company shall be entitled to injunctive relief, without posting any bond and the Employee agrees not to oppose granting of such relief. This section constitutes an
independent and separable covenant that shall be enforceable notwithstanding any right or remedy that the Company may have under any other provision of this Agreement or otherwise. 

 

	9.	Miscellaneous 

  

	 	(a)	This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous written, and all previous or
contemporaneous oral negotiations, understandings, arrangements, and agreements, and may be amended, modified or changed only by a written instrument executed by the Employee and the Company. No term or condition of this Agreement shall be deemed to
have been waived, except by a statement in writing signed by the party against whom enforcement of the waiver is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific
term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 

  

									
		  	Page 7	  		  	Confidential	  	

	 	(b)	This Agreement and all of the provisions hereof shall inure to the benefit of and be binding upon the legal representative, heirs, distributees, successors (whether by
merger, operation of law or otherwise) and assigns of the parties hereto; provided, however, that the Employee may not delegate any of the Employee’s duties hereunder, and may not assign any of the Employee’s rights hereunder, and any such
purported or attempted assignment or delegation shall be null and void and of no legal effect. In the event the Company assigns this Agreement and its successor assumes the Company’s obligations hereunder in writing or by operation of law,
(i) the Company shall be released from all of its obligations hereunder, and (ii) all of the references to the Company, and to the Board, shall be deemed to be references to the Company’s successor and to the governing body of such
successor, respectively. The Company and all of its future or current subsidiaries shall be and be deemed to be third-party beneficiaries of this Agreement. 

 

	 	(c)	This Agreement will be interpreted and the rights of the parties determined in accordance with the laws of the United States applicable thereto and the internal laws of
the State of New York without giving effect to the conflict of laws principles thereof. Any unresolved dispute arising out of this Agreement shall be litigated in any court of competent jurisdiction in the Borough of Manhattan in New York City;
provided that the Company may elect to pursue a court action to seek injunctive relief in any court of competent jurisdiction to terminate the violation of its proprietary rights, including but not limited to trade secrets, copyrights or trademarks.
Each party shall pay its own costs and fees in connection with any litigation hereunder. 

  

	 	(d)	Waiver of Jury Trial. THE PARTIES HERETO AGREE TO WAIVE THE RIGHT TO A TRIAL BY JURY. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY
EMPLOYEE, AND EMPLOYEE ACKNOWLEDGES THAT, EXCEPT FOR THE COMPANY’S AGREEMENT TO LIKEWISE WAIVE ITS RIGHTS TO A TRIAL BY JURY (WHICH THE COMPANY HEREBY MAKES), THE COMPANY HAS NOT MADE ANY REPRESENTATIONS OF FACTS TO INDUCE THIS WAIVER OF TRIAL
BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. EMPLOYEE FURTHER ACKNOWLEDGES THAT HE HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER AND AS EVIDENCE OF THIS FACT SIGNS THIS AGREEMENT BELOW. 

 

	 	(e)	The Employee covenants and represents that (i) he is not a party to any contract, commitment, restrictive covenant or agreement, nor is he subject to, or bound by,
any order, judgment, decree, law, statute, ordinance, rule, regulation or other restriction of any kind or character, which would prevent or restrict him from entering into and performing his obligations under this Agreement, (ii) he is free to
enter into the arrangements contemplated herein, (iii) he is not subject to any agreement or obligation that would limit his ability to act on behalf of the Company or any of its subsidiaries, and (iv) his termination of his existing
employment, his entry into the employment contemplated herein and his performance of his duties in respect thereof, will not violate or conflict with any agreement or obligation to which he is subject. Employee has delivered to the Company true and
complete copies of any currently effective employment agreement, non-competitive agreement or similar agreement to which Employee is subject. 

  

									
		  	Page 8	  		  	Confidential	  	

	 	(f)	The Employee acknowledges that he has had the opportunity to receive assistance of legal counsel in reviewing and negotiating this Agreement. 

 

	 	(g)	This Agreement and all of its provisions (other than the provisions of Section 5, Section 6, Section 7, Section 8, and Section 9 hereof, which shall
survive termination of employment and/or termination of this Agreement) shall terminate upon the Employee ceasing to be an employee of the Company for any reason. 

 

	 	(h)	All notices and other communications hereunder shall be in writing; shall be delivered by hand delivery to the other party or mailed by registered or certified mail,
return receipt requested, postage prepaid or by a nationally recognized courier service such as Federal Express; shall be deemed delivered upon actual receipt; and shall be addressed as follows: 

If to the Company: 
 American Railcar Industries, Inc. 
 100 Clark Street 

St. Charles, Missouri 63301 
 Facsimile:        (636) 940-6044 

Attention:        Chairman, Board of Directors 

If to the Employee: 
 At the last known principal residence address reflected in the payroll records of the Company, or to such other address as either party shall have furnished to the other in writing in accordance herewith.

 (h) In the event of any inconsistency between this Agreement and any other agreement, plan, program, policy or practice
(collectively, “Other Provision”) of the Company, the terms of this Agreement shall control over such Other Provision. Any calculation, allocation, expense, estimate or other amount, if any, to be determined under this Agreement or
for the purpose of this Agreement (including all determinations of eligibility), for any period or portion of a period, and any amount payable or allocable to Employee under this Agreement for any period or portion of a period, shall be determined
by the Company, whose determination shall be final and binding on all parties. 
 (i)Employee shall not issue any press release
or otherwise make any public statement or announcement with respect to the Company or this Agreement, including without limitation, in connection with the provision of the services hereunder, without the prior written consent of the Company.

 (j) Any termination of Employee’s employment with the Company shall constitute an automatic resignation of Employee as an
officer of the Company and each affiliate of the Company, and an automatic resignation of Employee, to the extent applicable, from any and all the board of directors, committees, or similar governing body of the Company and its affiliates, and from
the board of directors, committees, or similar governing body of any corporation, limited liability company, or other entity in which the Company or any affiliate holds an equity interest and with respect to which board or similar governing body
Employee serves as the Company’s or such affiliate’s designee or other representative. 
 (k)This Agreement may be
executed in two or more counterparts (and by facsimile), each of which shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument. 

  

									
		  	Page 9	  		  	Confidential	  	

 (l) If any paragraph or part or subpart of any paragraph in this Agreement or the
application thereof is construed to be overbroad and/or unenforceable, then the court making such determination shall have the authority to narrow the paragraph or part or subpart of the paragraph as necessary to make it enforceable and the
paragraph or part or subpart of the paragraph shall then be enforceable in its/their narrowed form. Moreover, each paragraph or part or subpart of each paragraph in this Agreement is independent of and severable (separate) from each other. In the
event that any paragraph or part or subpart of any paragraph in this Agreement is determined to be legally invalid or unenforceable by a court and is not modified by a court to be enforceable, the affected paragraph or part or subpart of such
paragraph shall be stricken from this Agreement, and the remaining paragraphs or parts or subparts of such paragraphs of this Agreement shall remain in full force and effect. 
 [Signature Page Follows] 

  

									
		  	Page 10	  		  	Confidential	  	

			
	AMERICAN RAILCAR INDUSTRIES, INC.
		
	By:	 	 /s/ Dale C. Davies

		 	Name: Dale C. Davies
		 	Title: Chief Financial Officer
		
	Date:	 	June 8, 2012
	
	EMPLOYEE:
		
	By:	 	 /s/ James Cowan

		 	    James Cowan
		
	Date:	 	June 8, 2012

 [Signature page to James Cowan Employment Agreement] 

  

									
		  	Page 11	  		  	Confidential	  	

 EXHIBIT A 
 Date 
 Address 
 This agreement sets forth the terms and conditions regarding your separation from employment from [Name of Company] (the “Company”) effective [last day of employment] (the “Separation
Date”). 
 The terms and conditions set forth in Paragraphs 1 and 2 below will apply regardless of whether you decide
to sign this letter agreement. However, you will not be eligible to receive the payment set forth in Paragraph 3 below unless you sign and do not revoke this letter agreement. (See Paragraph 12 below for what it means to revoke this letter
agreement.) 
  

	1.	Your last day of employment is [date]. You will receive your regular pay as a full-time employee according to the Company’s regular payroll practices through the
Separation Date. You also will receive a payment in the amount of [$xx.xx], less applicable taxes and payroll withholdings, for [# of hours] hours of accrued [Paid Time Off or vacation, as applicable] (less any [PTO or vacation, as applicable]
between the date of this letter and the Separation Date). 

  

	2.	Because of your separation from employment, your eligibility for the Company’s employee benefit plans will end on the Separation Date. 

 

	3.	In addition to the above payments, the Company is offering you the opportunity to receive a lump sum [severance, if applicable] payment in the amount of $(amount of
payment) less applicable taxes and payroll withholdings, in exchange for your signing this letter agreement and agreeing to its terms, including the general release of claims contained in paragraph 7(a). This payment would be paid in a lump sum
within 15 days after this letter agreement becomes effective (as described in paragraph 12). 

  

	4.	You agree to keep confidential and not to publish or post on your own or to disclose to any third party, including, but not limited to, newspapers, authors, publicists,
journalists, bloggers, gossip columnists, producers, directors, media personalities, and the like, all confidential information relating to Carl Icahn and his family, the Company and its affiliates, related, parent, and subsidiary companies, and
each of their officers, directors, employees and clients, learned in the course of your employment with the Company. Furthermore, you agree not to disparage, or otherwise discuss any information, relating to Carl Icahn and his family, the Company
and its affiliates, related, parent, and subsidiary companies, and each of their officers, directors, employees, and clients, with any third party, including, but not limited to, newspapers, authors, publicists, journalists, bloggers, gossip
columnists, producers, directors, media personalities, and the like. You further agree to keep confidential and not to disclose to any third party all confidential information relating to the Company and its affiliates, related, parent, or
subsidiary companies, and each of their clients learned in the course of your employment with the Company or any affiliate, related, parent, or subsidiary company. Confidential Information includes all secret or confidential information, knowledge
or data, including, without limitation, trade secrets, sources of supplies and materials, customer lists and their identity, customer information, designs, production and design techniques and methods, identity of investments, identity of
contemplated investments, business opportunities, valuation models and methodologies, processes, technologies, and any intellectual property relating to the business of the Company or its affiliates, related, parent, or subsidiary companies and
their respective businesses. In addition, you agree to keep the terms and conditions of this letter agreement confidential, except that you may disclose the terms and conditions of this letter agreement to your spouse or significant other, attorneys
and financial and tax advisors. The restrictions in this paragraph are subject to paragraph 15 below. 

  

Confidential     

	5.	This letter agreement is not intended to modify but rather is intended to supplement the following agreements entered into between you and the Company which remain in
full force and effect; including, but not limited to, the American Railcar Industries, Inc. Policy Statement on Securities Trades by Company Personnel and the Confidentiality and Non-Disparagement Agreement and Guidelines. In addition, you agree for
a period of one year after this letter agreement becomes effective that you will not directly or indirectly, in any capacity, and will not assist directly or indirectly, in any capacity, any other individual or entity to (A) hire or engage in
any capacity any employee of the Company (or any individual who was an employee of the Company within 12 months of the date such hiring or engagement occurs) or solicit or seek to persuade any employee of the Company to discontinue such employment,
(B) solicit or encourage any customer of the Company or independent contractor providing services to the Company to terminate or diminish its relationship with them, or (C) seek to persuade any customer (or any individual who was a
customer of the Company within 12 months of the date such solicitation or encouragement commences or occurs, as the case may be) or prospective customer of the Company to conduct with anyone else any business or activity that such customer or
prospective customer conducts or could conduct with the Company, or D) attempt to divert, divert, or otherwise usurp any business opportunity or transaction that you learned about during your employment with the Company. For purposes of this
paragraph 5, “in any capacity” includes, but is not limited to, as an employee, independent contractor, volunteer, or owner. 

  

	6.	You acknowledge that as of the Separation Date you have returned to the Company any and all property, tangible or intangible, relating to its business or the business
of its parent companies, subsidiaries, affiliates and related entities, which you possessed or had control over at any time, including but not limited to Company-provided cell phones, keys, blackberries, personal computers, credit cards, building
access cards, computer equipment, files, documents and software. You agree that all processes, technologies, and inventions, including new contributions, improvements, ideas, discoveries, agreements, contracts, trademarks, or trade names conceived,
developed, invented, made, or found by you alone or with other employees during the period of your employment by the Company shall remain property of the Company. 

 

	7.	(a) By signing this letter agreement, except as to the claims and rights referred to in paragraphs 7(b) and 7(c) below, in consideration of the severance payment
provided for in paragraph 3, and other terms of this letter, you voluntarily and knowingly release and forever discharge the Company, its subsidiaries, parent, affiliates, and related entities, and each of their employee benefit plans, and each of
their shareholders, partners, directors, members, officers, employees, trustees, administrators and fiduciaries, and each of their successors and assigns, from any and all claims, demands, causes of action, obligations, damages and liabilities of
whatever kind, in law or equity, by statute or otherwise (all collectively referred to as “Claims”), that can be waived, whether known or unknown, asserted or unasserted, arising out of or relating directly or indirectly in any way to your
employment or termination of employment or the terms and conditions of your employment with the Company or any parent, subsidiary, affiliated, or related entity, including but not limited to (i) Claims of discrimination, harassment,
retaliation, or failure to accommodate under any federal, state, or local law, without limitation, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, Sections 1981 through 1988 of Title 42 of the United States Code,
the Americans with Disabilities Act, the Equal Pay Act, the Older Workers Benefits Protection Act, and the Genetic Information Non-Discrimination Act (as any such law was enacted or amended); (ii) Claims under the Immigration Reform and Control
Act; (iii) Claims under the Uniformed Services Employment and Reemployment Rights Act; (iv) Claims under the Employee Retirement Income Security Act of 1974 (excluding claims for vested benefits as set forth in paragraph 7(b) below);
(v) Claims regarding leaves of absence, including, but not limited to, Claims under the Family and Medical Leave Act; (vi) Claims under the National Labor Relations Act; (vii) Claims under the Sarbanes-Oxley Act or the Dodd-Frank Act;
(viii) Claims under the New York State Human Rights Law and the New York City Human Rights Law; Claims under the Missouri Human Rights Act; the Missouri Wage, Hours, and Dismissals Rights Law and similar local, state and federal laws;
(ix) Claims for breach of contract (express or implied), retaliation, wrongful discharge, detrimental reliance, invasion of privacy, defamation, emotional distress or compensatory and/or punitive damages; and (x) Claims for attorneys’
fees, costs, disbursements and/or the like. By signing below, you also acknowledge that you cannot benefit monetarily or obtain other personal relief from any Claims released in this paragraph 7(a) and that you have waived any right to equitable
relief that may have been available to you (including, without limitation, reinstatement) with respect to any Claim waived in this paragraph 7(a). Your signature below acknowledges the fact that you are receiving a [severance, if applicable] payment
you would otherwise not be entitled to, that it is sufficient consideration for the waiver of Claims herein, and that after the Separation Date you will not be entitled to receive any other payments or benefits from the Company apart from the
payments and benefits described in this letter agreement. 

  

Confidential     

 (b) By signing this letter agreement, you are not releasing claims that arise after you sign
this letter agreement; claims to enforce this letter agreement; claims relating to the enforceability, meaning, or effect of this letter agreement; claims or rights you may have to workers’ compensation or unemployment benefits; claims for
accrued, vested benefits under any employee benefit plan of the Company in accordance with the terms of such plans and applicable law; and/or claims or rights which cannot be waived by private agreement. 

(c) Additionally, by signing this letter agreement, you are not waiving your right to file a charge with, or participate in an
investigation conducted by, any governmental agency, including, without limitation, the United States Equal Employment Opportunity Commission (EEOC). Nevertheless, as set forth in paragraph 7(a) above, you acknowledge that you cannot benefit
monetarily or obtain damages or equitable relief of any kind from or through any such charge or any action commenced by a government agency or third party with respect to claims waived in paragraph 7(a). 

 

	8.	This letter agreement contains the entire understanding between you and the Company with respect to the subject matter hereof, and supersedes any and all prior
agreements and understandings, whether written or oral, between or among you, the Company or any of its parent companies, subsidiaries, affiliates and related entities (other than the agreements, if any, referred to in the first sentence of
paragraph 5 above). 

  

	9.	This letter agreement (a) is governed by the laws of the State of New York applicable to agreements made and to be performed wholly within such state, and as such
will be construed under and in accordance with the laws of the State of New York without regard to conflicts of law, and (b) may not be modified unless evidenced by a writing signed by yourself and an authorized representative of the Company.

  

	10.	Any unresolved dispute arising out of this letter agreement and the general release contained in paragraph 7 shall be litigated in any court of competent jurisdiction
in the Borough of Manhattan in New York City; provided that the Company may elect to pursue, without having to post any bond in connection therewith, a court action to seek injunctive relief in any court of competent jurisdiction to enforce any of
its rights hereunder, including, without limitation, to terminate the violation of any of its proprietary rights, including but not limited to trade secrets, copyrights or trademarks as well as the restrictions in paragraph 5. Each party shall pay
its own costs and fees in connection with any litigation hereunder. 

  

Confidential     

	11.	Waiver of Jury Trial. THE PARTIES HERETO AGREE TO WAIVE THE RIGHT TO A TRIAL BY JURY. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY
EMPLOYEE, AND EMPLOYEE ACKNOWLEDGES THAT, EXCEPT FOR THE COMPANY’S AGREEMENT TO LIKEWISE WAIVE ITS RIGHTS TO A TRIAL BY JURY (WHICH THE COMPANY HEREBY MAKES), THE COMPANY HAS NOT MADE ANY REPRESENTATIONS OF FACTS TO INDUCE THIS WAIVER OF TRIAL
BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. EMPLOYEE FURTHER ACKNOWLEDGES THAT HE HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER AND AS EVIDENCE OF THIS FACT SIGNS THIS AGREEMENT BELOW. 

 

	12.	 You have 21 days from your receipt of this letter agreement to consider and accept its terms, but may sign it at any time within the 21 day period up
to and including the 21st day after you receive it. If you decide to sign this letter agreement, you will have seven days to revoke your decision by sending written notice of revocation to the Company to [Name of Company Representative] [Department]
[Street Address] [Email Address]. Such notice must be postmarked (if by letter) or received (if by email) by the close of business on the seventh day after you sign this letter agreement. Provided you do not revoke your decision, this letter
agreement will become effective on the eighth day after you sign it. We encourage you to speak with an attorney before signing this letter agreement. 

  

	13.	By signing this letter agreement, you agree that you are signing it voluntarily of your own free will, that you have had 21 days within which to consider its terms and
to consult with an attorney, and that you understand and agree to its terms. 

  

	14.	If any paragraph or part or subpart of any paragraph in this letter agreement or the application thereof is construed to be overbroad and/or unenforceable, then the
court making such determination shall have the authority to narrow the paragraph or part or subpart of the paragraph as necessary to make it enforceable and the paragraph or part or subpart of the paragraph shall then be enforceable in its/their
narrowed form. Moreover, each paragraph or part or subpart of each paragraph in this letter agreement is independent of and severable (separate) from each other. In the event that any paragraph or part or subpart of any paragraph in this letter
agreement is determined to be legally invalid or unenforceable by a court and is not modified by a court to be enforceable, the affected paragraph or part or subpart of such paragraph shall be stricken from the letter agreement, and the remaining
paragraphs or parts or subparts of such paragraphs of this letter agreement shall remain in full, force and effect. 

  

	15.	Nothing in this letter agreement is intended to preclude you from providing truthful information about your employment or this letter agreement to any government agency
or in any sworn testimony. 

  

	
	Understood and Agreed to by:
	
	  

	James Cowan
	
	Date executed:             , 20    

  

Confidential

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}]]