Document:

Somatuline License and Collaboration Agreement

 EXHIBIT 10.14D 
 Execution Copy 
 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 SOMATULINE® 
 LICENSE AND COLLABORATION
AGREEMENT 
 THIS SOMATULINE® LICENSE AND COLLABORATION
AGREEMENT (the “Agreement”), is entered into as of the Effective Date (defined below) by and between SCRAS, a company incorporated under the laws of France with offices at 42 rue du Docteur Blanche,
75016 Paris, France (“SCRAS”) and Beaufour Ipsen Pharma, a company incorporated under the laws of France with offices at 24 rue Erlanger, 75016 Paris, France (“BIP”) (SCRAS and BIP acting jointly being together
referred to as “Licensors”), and Tercica, Inc. a company incorporated under the laws of Delaware with offices at 2000 Sierra Point Parkway, Suite 400, Brisbane, CA 94005, United States of America (“Licensee”). BIP,
SCRAS, either individually or acting jointly as Licensors on the one hand, and Licensee, on the other hand, are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 

Whereas, Licensors are engaged in the business of developing and marketing of pharmaceutical products; and 
 Whereas, BIP, as of the Execution Date has obtained regulatory approval for, and is
marketing the Initial Product (as defined below) under the tradename Somatuline Autogel®
in the European Union and is currently conducting additional research and development activities with respect to obtaining regulatory approval for the Licensed Product in the United States (the “Licensor On-going Development” as
further defined below); and 
 Whereas, Licensors are seeking a partner for the development and, following regulatory approval,
distribution of the Licensed Product in the Territory (as defined below); and 
 Whereas, Licensee has the marketing and sales force
in the Territory to enable it to effectively market the Licensed Product in the Territory; and 
 Whereas, Licensee and an Affiliate
of BIP, on the Execution Date, also are entering into that certain Stock Purchase and Master Transaction Agreement, and will enter into pursuant thereto such other agreements, including the Voting Agreement, Registration Rights Agreement, Investor
Rights Agreement, Convertible Note Agreement, and related transaction documents, including the issuance of a Warrant to purchase shares of Common Stock of Licensee (collectively, the “Equity Transaction Documents”); and

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 1 

 Whereas, Licensee and BIP, on the Effective Date, are also entering into that certain Increlex
License and Collaboration Agreement pursuant to which, among other things, Licensee will exclusively license to BIP, Licensee’s product IncrelexTM, for sale by BIP in all countries of the world, excluding the United States, Canada, Japan
and certain other countries (the “Increlex Agreement”). 
 THE PARTIES DO
HEREBY AGREE AS FOLLOWS: 
  

	1.	DEFINITIONS AND INTERPRETATION 

 1.1
“18-Month Rolling Order Forecast” has the meaning set forth in Section 6.7.1 of this Agreement. 
 1.2
“Affiliate” means, in respect of any Person (i.e. any individual or any corporation, limited liability company, partnership, trust, association or other entity of any kind, a Person that is directly or indirectly controlling,
controlled by, or under common control with such first-mentioned Person or any of its Subsidiaries, and for the sole purpose of this paragraph, the term “control” (including the terms “controlled by” and “under common
control with”) means having, directly or indirectly, the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities or by contract or otherwise. As used in this
Section 1.2, “Subsidiary” means any corporation or other organization, whether incorporated or unincorporated, of which (i) at least fifty percent (50%) of the securities (or other interests having by their terms
ordinary voting power to elect a majority of the board of directors or others performing similar functions with respect to such corporation or other organization) is directly or indirectly owned or controlled by the relevant Person or (ii) the
relevant Person (or any other subsidiary of the relevant Person) is a general partner.
 1.3 “Agreement” shall have
the meaning set forth in the preamble. 
 1.4 “Binding Order” has the meaning set forth in Section 6.7.2 of this
Agreement. 
 1.5 “BLA” means a Biologics License Application (as defined in Title 21 of the United States Code of Federal
Regulations, Section 600 et seq, as amended from time to time), or such application’s foreign equivalent, filed pursuant to the requirements of a Regulatory Authority for Marketing Authorization of a Licensed Product. 
 1.6 “Calendar Quarter” means the respective period of three (3) consecutive calendar months ending on
March 31, June 30, September 30 and December 31. 
 1.7 “Calendar Year” means the respective
period of twelve (12) consecutive months commencing on January 1 and ending on December 31. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 2 

 1.8 “Combination Product” shall mean a pharmaceutical formulation or product for
use in the Field that contains somatostatin or any somatostatin analog, which somatostatin analogs include, but are not limited to, lanreotide, and any other active ingredient. 
 1.9 “Commercialization Plan” shall mean the most recent version of any given three (3) Calendar Year rolling plan as from First
Commercial Sale until termination or expiration of the Agreement (the first Calendar Year being for the purpose of this clause, the period starting from the date of the First Commercial Sale in the country until December 31 of the same year),
with respect to the promotion, sales plan and budget for each Licensed Product in each country of the Territory including in particular: (a) the Promotional Efforts planned for such three Calendar Years and (b) the Sales Forecast
anticipated for such three Calendar Years. Such Commercialization Plan shall also include provisions for the manufacturing, supply and distribution planning of Licensed Products for sale in the Territory. 
 1.10 “Commercial Sale” means the sale of Licensed Products whether by Licensee or Licensee’s Affiliates or Sub-licensees to a third
party and shall exclude (i) any transfer of Licensed Product by Licensee to its Affiliates or Sub-licensees and (ii) any distribution of Licensed Product for use in Development activities or as Samples. 
 1.11 “Confidential Information” has the meaning set forth in Section 10.1 of this Agreement. 
 1.12 “Control” with the correlative meaning “Controlled by” means, with respect to intellectual property, possession of the
right to grant a license or sublicense as provided for herein without violating (a) any law or governmental regulation applicable to such license or sublicense or (b) the terms of any agreement or other arrangement with any third party
that exists as of the Effective Date, or if such right is acquired after the Effective Date, as of the date a Party first gained possession of such right. 
 1.13 “Cover” and with correlative meaning “Covered” shall mean with respect to Patent Rights, that such Patent Rights claim the composition of matter, method of making or any use of
such Licensed Product. 
 1.14 “current Good Manufacturing Practices” or “cGMP” shall mean the requirements
found in the legislation, regulation and administrative provisions for methods to be used in, and the facilities or controls to be used for, the manufacturing, processing, packing and/or holding of a drug to assure that such drug meets the
requirements as to the safety and has the identity and strength and meets the quality characteristics that it purports or is represented to possess, all of which as defined by the competent authorities of each country of the Territory where and at
the time Licensee sells the Licensed Products in each such country and by the competent authorities of the country where any manufacturing or testing operation is conducted. 
 1.15 “Delivery Point” shall have the meaning ascribed to it in Section 6.4 of this Agreement. 
  

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AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 3 

 1.16 “Developing Party” shall mean a Party Developing solely a Product Improvement, a
Combination Product or an Other Product under a Subsequent Development Plan as set forth in Section 4.4.4 (i) of this Agreement. 
 1.17 “Development” and with correlative meaning “Develop” and “Developing” means all activities related to preclinical testing, toxicological, pharmacokinetic, metabolic, or clinical
aspects of the Licensed Product (or where applicable an Other Product), process development, stability studies, formulation development, clinical studies regulatory affairs, and other development activities for the Licensed Product (or where
applicable an Other Product). 
 1.18 “Development Costs” shall mean costs incurred jointly by the Parties under the Initial
Development Plan or Joint Subsequent Development Plan or solely by a Developing Party under a Subsequent Development Plan as determined in accordance with Section 4.4.2 of this Agreement. 
 1.19 “Development Plan” shall mean either the Initial Development Plan or any Subsequent Development Plan. 
 1.20 “Diligent Efforts” shall mean the efforts consistent with the exercise of prudent scientific and business judgment, consistent with
the effort applied to other pharmaceutical products of similar potential and market size by the Party in question (or, if the Party in question has no other pharmaceutical product of similar potential and market size, by other similarly sized
pharmaceutical companies that do). 
 1.21 “Dominating Patent” means with respect to a given country in the Territory, an
unexpired patent of a third party which has not been finally invalidated by a court or other governmental agency of competent jurisdiction and which would be infringed by the use, manufacture, sale or import of the Licensed Product in such country
under this Agreement. 
 1.22 “Effective Date” shall mean the date of the First Closing. 
 1.23 “EMEA” means the European Medicine Agency, a decentralized body of the European Union. 
 1.24 “Excluded Indications” shall mean the use of somatostatin or any somatostatin analog, which somatostatin analogs include, but are
not limited to, lanreotide, as a therapeutic or potential therapeutic for any opthalmic indications. 
 1.25 “Execution
Date” shall mean July 18, 2006, the date of execution of the Purchase Agreement. 
 1.26 “Field” means
all uses in humans and all in vitro uses excluding the Excluded Indications. 
 1.27 “First Closing” shall have the
meaning ascribed to it in the Purchase Agreement.
  

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AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 4 

 1.28 “First Commercial Sale” means the first Commercial Sale in the relevant
countries of the Territory, as evidenced by the first payment received by Licensee, its Affiliates or Sub-licensees in connection with this Commercial Sale on a country-by-country basis. 
 1.29 “FTE” shall mean full time equivalent of, and is equal to the amount of work one full time employee would accomplish during
any one year period. 
 1.30 “IND” means an investigational new drug application as defined under US law and foreign
equivalents. 
 1.31 “Indication” means the prevention, therapeutic treatment, or diagnosis of any particular human
disease or, disorder or condition, but shall not include the Excluded Indications. 
 1.32 “Initial Development Plan” means
the plan for the conduct of specified Development activities with regards to the Initial Product, or Product Improvements or Combination Products as agreed between the Parties pursuant to Section 4.3.1 of this Agreement for the purpose of
obtaining initial Marketing Authorization or Marketing Authorization for label expansion for such Licensed Product, which shall exclude any Licensors On-going Development. 
 1.33 “Initial Product” means that certain pharmaceutical formulation for use in the Field containing lanreotide and as of the Execution
Date marketed by Licensors or their Affiliates in any country in the European Union under the tradename Somatuline® Autogel®, the specifications of which, as of the Execution Date are attached as Schedule 2 to this Agreement, which specifications may be amended from time to time by the written agreement
of the Parties. 
 1.34 “JFC” shall mean the joint finance committee as defined in Section 3.2 of this Agreement.

 1.35 “Joint Know-How” shall mean any and all Know-How owned jointly by BIP and Licensee pursuant to Section 8.3.

 1.36 “Joint Patents” shall mean any and all Patent Rights owned jointly by SCRAS and Licensee pursuant to
Section 8.3. 
 1.37 “Joint Patent Committee” shall mean the committee defined in Section 8.3. 

1.38 “Joint Subsequent Development Plan” shall mean a Subsequent Development Plan conducted and funded jointly by the Parties in
accordance with Section 4.4.3 of this Agreement. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 5 

 1.39 “JSC” shall mean the joint steering committee as defined in Section 3.1 of
this Agreement. 
 1.40 “Know-How” means all non public proprietary information, trade secrets, techniques and data of a
Party (including Confidential Information as defined in Section 10.1) including, but not limited to, discoveries, formulae, materials, practices, methods, knowledge, know-how, processes, experience, test data (including pharmacological,
toxicological and clinical information and test data), analytical and quality control data, marketing, pricing, distribution, cost and sales data or descriptions and any and all submissions to Regulatory Authorities with respect to Licensed
Products, and preclinical and clinical data, assays and associated materials, and protocols and procedures and documentation associated with the foregoing. 
 1.41 “Licensed Know-How” shall mean Know-How owned or Controlled by BIP that is reasonably necessary for the characterization, optimization, assaying, Development, import, offer for sale, use or sale
of somatostatin or any somatostatin analog, which somatostatin analogs include, but are not limited to, lanreotide, or any Licensed Product in the Field including without limitation all Know-How resulting from Licensors On-going Development.

 1.42 “Licensed Patent Rights” shall mean all Patent Rights owned or Controlled by SCRAS in the Territory which Cover the
Licensed Product, but excluding Licensor Related Patent Rights except and to the extent agreed by the Licensor and Licensee pursuant to Section 2.6,. As at the Execution Date, Licensed Patent Rights include all Patent Rights listed in
Schedule 1 of this Agreement. 
 1.43 “Licensed Product” means, as the context requires, the Initial Product,
and any Product Improvements and/or any Combination Products that accrue from the Initial Development Plan and/or Joint Subsequent Development Plans, and/or any Subsequent Development Plan as to which the Opt-in Party (as that term is defined in
Section 4.4.4(ii)(F)(a) below) has exercised its rights to Opt-In (as that term is described in Section 4.4.4(ii)(F)(a) below) pursuant to Section 4.4.4(ii)F. 
 1.44 “Licensed Trademarks” shall mean the trademarks listed in Schedule 3. 
 1.45 “Licensee Allocation” shall have the meaning ascribed to it in Section 4.4.3. 
 1.46 “Licensee Group” means Licensee and its Affiliates. 
 1.47 “Licensee Independent Patent Rights” shall have the meaning set forth in Section 2.4.2 of this Agreement. 
 1.48 “Licensee Related Patent Rights” means, any Patent Rights owned or Controlled by Licensee which Cover a Licensed Product other than the Initial Product in the Licensor Territory and either
(i) are acquired by or licensed to Licensee from a third party and as to which Licensee would owe such third party royalties or other payments 

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 6 

 
for the license to such Patent Rights in the Licensor Territory based on Licensee’s (or Licensor’s) use and exploitation of such Patent Rights; or
(ii) do not cover inventions made in the conduct of the Development or a Development Plan under this Agreement, which such inventions are solely or jointly owned by Licensee as provided in Section 8.3. 
 1.49 “Licensors Allocation” shall have the meaning ascribed to it in Section 4.4.3. 
 1.50 “Licensors IP Rights” means any and all Licensed Patent Rights and Licensed Know-How. 
 1.51 “Licensors On-going Development” shall mean those clinical, non-clinical studies and regulatory activities anywhere including in
the Territory either (a) ongoing as of the Execution Date and set forth in Schedule 11 hereto or (b) that either (i) are required for securing Marketing Authorization for the Initial Product for the Target Label in the
Territory, or (ii) the conduct of which is a condition upon which such Marketing Authorization has been granted by a Regulatory Authority in the Territory. Licensors On-going Development activities are carried out and funded solely by
Licensors. 
 1.52 “Licensors Related Patent Rights” means, any Patent Rights owned or Controlled by Licensors that
are other than those listed on Schedule 1, but which Cover any Licensed Product other than the Initial Product, and either (i) are acquired by or licensed to Licensors from a third party and as to which Licensors would owe such third
party royalties or other payments for the license to such Patent Rights in the Territory based on Licensors’ (or Licensee’s) use and exploitation of such Patent Rights or (ii) do not cover inventions made in the conduct of the
Development or a Development Plan under this Agreement, which inventions are solely or jointly owned by Licensors as provided in Section 8.3. 
 1.53 “Licensors Territory” means all countries in the world, excluding the United States of America and Canada, its territories and possessions. 
 1.54 “Market Competition” means with respect to a given country of the Territory, the written notification to Licensors by Licensee that
the sale in a given country of the Territory of one or more products containing lanreotide by one ore more third parties that are not Sub-licensees of Licensee has achieved greater than twenty five percent (25%) Market Share. For purposes of
this Section 1.54, “Market Share” shall mean the percentage market share in value for the product or products in question containing lanreotide, such percentage to be established by measuring a full Calendar Quarter of reported
prescription data for the applicable product(s) and any competing products (including Licensed Products) sold in the relevant country of the Territory. If the Parties are unable to mutually agree on the Market Share of a given product or products
based on such prescription data, the Parties shall submit the issue to a mutually-agreeable third party market research firm having expertise in pharmaceutical sales in the relevant country of the Territory (the “Research Firm”).
The Research Firm shall be instructed to provide an independent assessment of the Market Share for purposes of determining 

  

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ACT OF 1934, AS AMENDED. 
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Market Competition hereunder. Licensee shall bear all costs associated with the services of the Research Firm; provided that in the event that the Research
Firm establishes that the Market Share is twenty five percent (25%) or higher for a particular Indication, Licensors shall reimburse Licensee for the full cost of the Research Firm’s services for such assessment. 
 1.55 “Marketing Authorizations” means the regulatory authorizations required to sell the Licensed Product in the Territory on a
country-by country basis 
 1.56 “Milestone Event” means the occurrence of either of the two Approval Milestone events set
forth in 7.1.2(i) upon which or upon the determination of which the Approval Milestones Payments set forth in Section 7.1.2(i) paid by Licensee. 
 1.57 “Net Sales” means the consolidated gross amount recognized as sold for any particular period using GAAP (i.e., Generally Accepted Accounting Procedures) for sales recognition for the Licensed
Product by Licensee or its Affiliates or Sublicensees to third parties, minus the following as applicable, using GAAP criteria, (a) returned goods; (b) trade cash, and quantity discounts accrued and actually taken from the invoiced amount;
(c) rebates, including payments in respect of any governmental subsidized programs, rebate payments given to wholesalers or other Licensee buying groups, healthcare insurance carriers or other institutions; (d) credits or allowances
actually given or made for rejection or return of previously sold Licensed Products or for retroactive price reductions (including government mandated rebates and chargebacks); (e) sales, value added or other taxes or duties levied on or
measured by the billing amount for Licensed Products, to the extent billed separately on the invoice and paid for by the customer, as adjusted for rebates and refunds, as applicable; (f) a flat rate of one percent (1%) of such consolidated
gross amount recognized as sold to account for estimated charges for freight and insurance directly related to the delivery or return of Licensed Products to the extent billed separately on the invoice and paid for by the customer;
(g) adjustments for Combination Products as mutually agreed upon in good faith by the Parties, (h) uncollectible debts, as incorporated in Licensee Group’s consolidated accounts consistently applied to all products of Licensee Group,
provided however that if collected at a later date such amounts will be added to Net Sales in the Calendar Quarter in which it is received, in all cases as adjusted periodically to reflect amounts actually incurred in the Territory for items
(a) through (f). If a Licensed Product is sold for consideration other than cash, the fair market value of such other consideration shall be included in Net Sales. 
 1.58 “Opt-In” shall have the meaning assigned to it in Section 4.4.4(ii)(F)(a). 
 1.59 “Opt-in Information” shall have the meaning assigned to it in Section 4.4.4(iii)(A)(b). 
 1.60
“Opt-in Notice Date” shall have the meaning assigned to it in Section 4.4.4(iii)(A)(a). 
  

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 1.61 “Other Product” shall mean any chemical entity or pharmaceutical product other than
a Licensed Product which is acquired, owned, Controlled or being the object of research and development activities by Licensors in the field of endocrinology, or other areas as may be mutually agreed by the Parties in writing. 
 1.62 “Patent Rights” means any patents, patent applications, certificates of invention, or applications for certificates of invention
and any supplemental protection certificates together with any extensions, registrations, confirmations, reissues, substitutions, divisions, continuations or continuations-in-part, reexamination or renewals thereof. 
 1.63 “Phase I Clinical Trials” shall mean those clinical trials on sufficient number of volunteers/subjects that are designed to
establish safe drug doses and to support testing in Phase II Clinical Trials. 
 1.64 “Phase II Clinical Trials” shall mean
those clinical trials on sufficient number of patients that are designed to explore the dosage, safety and biological activity of a drug for intended use, and to define warnings, precautions and adverse reactions that are associated with the drug in
the dosage range to be prescribed. 
 1.65 “Phase III Clinical Trials” shall mean those clinical trials on sufficient number
of patients that are designed to establish that a drug is safe and efficacious for its intended use, and to define warnings, precautions, and adverse reactions that are associated with the drug in the dosage range to be prescribed and supporting
Marketing Authorization of such drug or label expansion of such drug. 
 1.66 “Product Improvement” shall mean any
improvements and/or enhancements or other desirable change to the technical/pharmacological characteristics of the Initial Product (or an enhanced or improved version of the Initial Product), whether patentable or not, including, without limitation,
improvements or enhancements in the manufacture, formulation, ingredients, preparation, presentation, means of delivery or administration, dosage, indication for use or packaging of the Initial Product. For the sake of clarity, Product Improvements
shall include without limitation any pharmaceutical product containing an active ingredient that is somatostatin or any somatostatin analog other than lanreotide. 
 1.67 “Promotional Efforts” shall mean, as to a given Licensed Product, the annual sales, medical and marketing efforts planned by the Licensee in the promotion and marketing of such Licensed Product
in a country of the Territory after the First Commercial Sale in such country. The Promotional Efforts shall be detailed in the Commercialization Plan which shall include without limitation sales plan, number of calls by medical representatives,
intended Phase IV (post-approval) studies and budget related thereto for such Licensed Product in such country (although the actual Phase IV study design and budget therefor will be addressed in a Development Plan for such Licensed Product).

 1.68 “Purchase Agreement” means that certain Stock Purchase and Master Transaction Agreement, dated as of July 18,
2006, by and between BIP’s Affiliate, and Licensee. 
  

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 1.69 “Regulatory Authority” means any government agency having the responsibility for
granting Marketing Authorizations and any other government entities with authority over the manufacturing and the marketing of the Licensed Product. 
 1.70 “Related Patent Rights” shall have the meaning set forth in Section 2.6 of this Agreement. 
 1.71 “Royalty Term” shall mean, on a country-by-country basis the period starting upon the First Commercial Sale of the Licensed Product until the later of (i) the expiry date of the last Valid
Claim in such country, or (ii) the expiry date of the orphan drug status granted to the Licensed Product by Regulatory Authorities in such country, or (iii) the expiry date of the regulatory protection (if any) preventing any competitor to
cross-refer any data of the Marketing Authorizations files of the Licensed Product in such country; or (iv) the date which is fifteen (15) years from such First Commercial Sale. 
 1.72 “Sales Forecasts” shall mean, as to a given Licensed Product, the annual sales forecasts for the Licensed Product in a country of
the Territory with respect to the Indication(s) for which Licensee has obtained Marketing Authorization. 
 1.73 “Sample”
means Licensed Product delivered to Licensee by Licensors for distribution by Licensee or otherwise, to health care professionals for trial use by patients at no cost to the patient and not for re-sale pursuant to applicable laws. 
 1.74 “Schedule(s)” refers to the Schedules attached to this Agreement and incorporated herein by this reference. 
 1.75 “SKU” shall mean stock-keeping unit. 
 1.76 “Specifications” means the standards and specifications relating to the manufacture, testing and packaging of the Licensed Product, which shall be those approved by the Regulatory Authorities in
the Territory from time to time and on a country-by-country basis. The Specifications of the Initial Product as at the Execution Date are set forth in Schedule 2 attached hereto. 
 1.77 “Sub-licensee” means a third party to whom Licensee or its Affiliates sublicenses, assigns or otherwise delegates some or all of
their rights and obligations under this Agreement. Sub-licensee shall also include any third party who purchases its supply of Licensed Product, in finished form from Licensee, its Affiliates or Sublicensee for resale into the market, where, as a
partial or full consideration for such purchase, such third party has a payment obligation to Licensee, its Affiliates or Sublicensee that is a percentage of its net sales, including without limitation a royalty obligation. 
 1.78 “Subsequent Development Plan” shall mean the specific plan for Development activities to obtain initial Marketing Authorization or
Marketing Authorization for a Product Improvement, Combination Product or, as the case may be and where agreed pursuant to Section 4.3.3, Other Product, submitted by one Party to the other Party pursuant to Sections 4.3.2 and 4.3.3 of this
Agreement. 
  

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 1.79 “Supply Price” shall have the meaning ascribed to it in Section 6.5 of this
Agreement. 
 1.80 “Target Label” shall mean the Indication for which the Parties intend that the Marketing Authorization
will be granted and the correlative estimated patient population which the Parties expect may be treated by such Indication with respect to the Initial Product in the United States of America (the “Target Population”), all as
described further in Schedule 4. 
 1.81 “Technical Agreement” shall have the meaning ascribed to it in
Section 6.1.1 of this Agreement. 
 1.82 “Territory” means United States of America and Canada. 
 1.83 “USD” means United States dollars. 
 1.84 “Valid Claim” means any claim of a pending patent application of a Licensed Patent Rights which has not been abandoned or finally rejected without the right of appeal or which is not known to be
unpatentable, or any claim from an issued and unexpired Licensed Patent Rights which has not been revoked or held unenforceable or invalid by a decision of a court or other governmental authority of competent jurisdiction without the right of
appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 
 1.82 Rule of Construction. The Parties acknowledge and agree that for the purposes of this Agreement, where references are made to the “Licensors” the following shall apply: 
 (i) if and to the extent that the Licensors have a right (for example to terminate the agreement or to Opt-In), BIP and SCRAS shall
exercise the right jointly and the Licensee shall be entitled to assume that the exercise of the right by BIP or SCRAS is an exercise of the right by both Licensors; 
 (ii) BIP and SCRAS shall be jointly and severally liable for the full and timely performance of all obligations of the Licensors under
this Agreement and for any indemnities and warranties given by the Licensors under this Agreement; 
 (iii) if and to the
extent the Licensee is required to obtain the consent of the Licensors, the consent of BIP or SCRAS shall be exercised jointly and the Licensee shall be entitled to assume that the exercise of the right by either BIP or SCRAS is an exercise by both
Licensors; 
 (iv) if and to the extent the Licensee if required to give notice to the Licensors, notice in accordance with
Section 16 shall be deemed to be notice to both Licensors.; 
  

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 (v) the Licensors may perform their obligations under this Agreement directly or through
one or more of Licensors’ Affiliates, provided that the Licensors shall remain jointly and severally liable for the full and timely performance pursuant to this Agreement. Unless and until advised otherwise in writing by Licensor
(a) Licensee may rely, without inquiry, on all actions taken by Licensors’ Affiliates or their employees in connection with this Agreement, which purport to be on behalf of Licensor; and (b) Licensee may rely on acts to the benefit of
Licensors’ Affiliates and employees as being acts to the benefit of Licensors. All rights to the benefit of Licensors’ Affiliates or employees under this Agreement shall vest in and benefit to Licensors. 
  

	2.	LICENSE GRANT 

 2.1 Exclusive License.

 2.1.1 Subject to the terms and conditions of this Agreement: 
 (A) SCRAS grants to Licensee and Licensee’s Affiliates (for so long as they remain Affiliates of Licensee): 
 (i) an exclusive, royalty-bearing license right, with the right to grant sublicenses pursuant to Section 2.2, to use and
exploit Licensed Patent Rights (including SCRAS’ interest in any and all Joint Patents) to import, have imported, use, have used, to research and Develop the Initial Product and those other Licensed Products which are jointly Developed by the
Parties or solely developed by Licensee or as to which Licensee elects to exercise its Opt-in rights pursuant to Section 4.4.4(ii)F, in the Field and in the Territory, as and to the extent permitted under this Agreement; 
 (ii) a non- exclusive, royalty-bearing license right, to use and exploit Licensed Patent Rights (including SCRAS’ interest in
any and all Joint Patents) to use and have used to research and Develop the Initial Product and those other Licensed Products which are jointly Developed by the Parties or solely developed by Licensee or as to which Licensee elects to exercise its
Opt-in rights pursuant to Section 4.4.4(ii)F, in the Field and in the Licensor Territory, as and to the extent permitted under this Agreement; and 
 (iii) an exclusive (even as to Licensor or Licensor’s Affiliates), royalty-bearing license right, with the right to grant sublicenses pursuant to Section 2.2, to use and exploit Licensed Patent Rights
(including SCRAS’ interest in any and all Joint Patents) to use, have used, import, have imported, offer for sale, sell and have sold Licensed Products in the Territory, in the Field. 
 (B) BIP grants to Licensee and Licensee’s Affiliates (for so long as they remain Affiliates of Licensee): 
 (i) an exclusive, royalty-bearing license right, with the right to 

  

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ACT OF 1934, AS AMENDED. 
 12 

 
grant sublicenses pursuant to Section 2.2, to use and exploit Licensed Know-How (including BIP’s interest in any and all Joint Know-How) to import,
have imported, use, have used, to research and Develop the Initial Product and those other Licensed Products which are jointly Developed by the Parties or solely developed by Licensee or as to which Licensee elects to exercise its Opt-in rights
pursuant to Section 4.4.4(ii)F, in the Field and in the Territory, as and to the extent permitted under this Agreement; 
 (ii) a non- exclusive, royalty-bearing license right, to use and exploit Licensed Know-How (including BIP’s interest in any and all Joint Know-How) to use and have used to research and Develop the Initial Product and those other
Licensed Products which are jointly Developed by the Parties or solely developed by Licensee or as to which Licensee elects to exercise its Opt-in rights pursuant to Section 4.4.4(ii)F, in the Field and in the Licensor Territory, as and to the
extent permitted under this Agreement; and 
 (iii) an exclusive (even as to Licensor or Licensor’s Affiliates),
royalty-bearing license right, with the right to grant sublicenses pursuant to Section 2.2, to use and exploit Licensed Know-How (including BIP’s interest in any and all Joint Know-How) to use, have used, import, have imported, offer for
sale, sell and have sold Licensed Products in the Territory, in the Field. 
 (C) The grant of exclusive rights to
Licensee in Sections 2.1.1(A) (i) and (iii) and 2.1.1(B) (i) and (iii) shall be subject to Licensors’ reservation of the right to use, have used, import, and have imported in the Territory Initial Product and those other
Licensed Products which are jointly Developed by the Parties or solely developed by Licensors or as to which Licensors elect to exercise their Opt-in rights pursuant to Section 4.4.4(ii)F, for the purpose of supporting Development of Initial
Product or such other Licensed Products in the Field for sale in Licensors Territory, as and to the extent permitted under this Agreement. 
 2.1.2 Notwithstanding the foregoing, Licensors reserve all rights: 
 (i) under
the Related Patent Rights Controlled by Licensors unless otherwise agreed among the Parties pursuant to Section 2.6 of this Agreement in a separate written agreement, and 
 (ii) under the Licensors IP Rights to the extent necessary to conduct or have conducted research, use, manufacture or Development
of Licensed Products for sale in the Licensors Territory, as and to the extent permitted under this Agreement. 
 2.1.3
Subject to the terms and conditions of this Agreement, SCRAS hereby grants to Licensee and Licensee’s Affiliates (for so long as they remain Affiliates of Licensee) an exclusive (even as to Licensors and their respective Affiliates),
royalty-bearing license right, with the right to grant sublicenses, to use and exploit the Licensed Trademarks on and solely in connection with the Development and commercialization of the Licensed Product throughout the Territory, in the Field.

  

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 13 

 2.2 Sublicense Rights, Third Party Distributors. Licensee shall have the right to sublicense the
rights granted in Section 2.1 to Sub-licensees and/or to appoint third party distributors, subject to the prior written consent of Licensors which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, Licensee shall
remain responsible for complying and for ensuring that such Sub-licensees and distributors comply with this Agreement, all relevant laws, regulations and requirements relating to the importation, distribution, marketing, promotion and sale of the
Licensed Product in the Territory. Any sub-license and distributorship agreement shall contain terms and conditions that are not inconsistent with those of this Agreement. 
 2.3 Excluded Indications. In the event at any time after the Effective Date, Licensors possess, acquire, or regain rights to Develop, sell, offer
for sale, use, export and/import the Licensed Product for the Excluded Indications, such Excluded Indications shall be automatically included in the Field. 
 2.4 Licenses to BIP and SCRAS 
 2.4.1 Licensee hereby grants to BIP and SCRAS:

 (i) a non-exclusive, sublicensable license under Licensee’s interest in any Joint Patent Rights to SCRAS and
any Joint Know-How to BIP to use, have used, make, have made, research and Develop the Initial Product and those other Licensed Products which are jointly Developed by the Parties or as to which Licensors elect to exercise their Opt-in rights
pursuant to Section 4.4.4(ii)F, in the Field and in the world, as and to the extent permitted under this Agreement; and 
 (ii) an exclusive, sublicensable license under Licensee’s interest in any Joint Patent Rights to SCRAS and any Joint Know-How to BIP to sell, offer for sale, import, have imported and export in the Field and in the Licensors
Territory the Initial Product and those other Licensed Products which are jointly Developed by the Parties or as to which Licensors elect to exercise their Opt-in rights pursuant to Section 4.4.4(ii)F. 
 2.4.2 Licensee hereby represents and warrants that, as of the Execution Date, Licensee does not own or Control any Patent Rights
that claim the composition of matter of, or the method of making or any use of, the Initial Product in the Licensors Territory (“Licensee Independent Patent Rights”). Notwithstanding the foregoing, to the extent any such Licensee
Independent Patent Rights are after the Execution Date found to exist, Licensee hereby covenants that, during the term of this Agreement, neither it, nor its Affiliates, shall assert against Licensors, their respective Affiliates or any
sublicensees, a claim of infringement of such Licensee Independent Patent Rights based upon the research, development, use, manufacture, sale, offer for sale, import and export of the Initial Product in the Field and in the Licensors Territory or
the research, development, use and manufacture of the Initial Product in the Field and in the Territory. Provided however that Licensors acknowledge and agree that Licensee does not covenant that, during the term of this Agreement, neither it, nor
its Affiliates, would not assert against Licensors, their respective Affiliates or any sub-licensees, a claim of infringement of Related Patent Rights Controlled by Licensee unless otherwise agreed among the Parties pursuant to Section 2.6 of
this Agreement in a separate written agreement. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 14 

 2.5 Right of First Negotiation for Other Products. 
 2.5.1 When acquiring or gaining Control of any Other Product with respect to the Licensors Territory, to the extent it is on
commercially reasonable terms and does not have an adverse effect on the interests of Licensors to do so, Licensors shall endeavor to acquire or obtain Control of such Other Product with respect to the Territory. With respect to those Other Products
owned or Controlled by Licensors as of the Effective Date, Licensors shall provide or cause to be provided to the JSC a list of such Other Products and their status of development. 
 2.5.2 For a period of six (6) years from the Execution Date (the “Option Period”) Licensee shall have a right
of first negotiation with respect to the development and commercialization of Other Products for the Territory as set forth in this Section 2.5. During the Option Period, promptly following the acquisition or obtaining Control of any Other
Product by Licensors for the Territory, Licensors shall notify Licensee of such Other Product and simultaneously provide to Licensee all necessary information relating to such Other Product to enable Licensee to decide as to whether it wishes to
exercise its right to negotiate with Licensors to obtain the exclusive rights to develop and/or commercialize the Other Product in the Territory, as the case may be, depending upon the development stage of such Other Product and Licensors shall not
market or commercialize such Other Product in the Territory (either themselves or through their respective Affiliates, Sub-licensees or other third party) unless and until Licensee has either notified Licensors of its decision to negotiate rights on
such Other Product for the Territory or the time for such notification has lapsed. Licensee shall notify Licensors of its decision to so negotiate within thirty (30) days as from receipt of the above information. Failure by Licensee to make
such notification will be deemed as a refusal of its first right of negotiation for the development and/or commercialization of the Other Product in the Territory. 
 2.5.3 In the event Licensee notifies Licensors of its decision to develop and commercialize the Other Product in the Territory, the
Parties shall have one hundred-twenty (120) days or more if mutually agreed in writing (the “Negotiation Period”) to negotiate exclusively the terms and conditions applicable to such collaboration, including, as appropriate,
any co-development of such Other Product, and the payment of any license fees or other payments owed any third party by Licensors with respect to the development or commercialization of the Other Product in the Territory. 
 2.5.4 In case of failure by Licensee to notify Licensors of Licensee’s decision to exercise its right of first negotiation
within the thirty-day (30) period or failure of the Parties to reach an agreement within the Negotiation Period, Licensors shall be free to themselves develop and commercialize such Other Product in the Territory and/or enter into any agreement
with any third parties to develop and/or commercialize the Other Product in the Territory, provided, however, that for a period of twelve (12)

  

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 15 

 
months after the end of the Negotiation Period, Licensors shall not enter into any agreement with such a third party for rights to such Other Product in the
Territory on terms less favorable to Licensors, when viewed in their totality, than those last offered by or to Licensee. 
 2.5.5 Notwithstanding Licensee’s right of first negotiation as set forth above, Licensors may propose to Licensee that the Parties conduct a Joint Subsequent Development Plan for such Other Product or that a Subsequent
Development Plan for such Other Product be conducted solely by the Licensors with the right for the Licensee to Opt-in, pursuant to the provisions of Sections 4.4.3 and 4.4.4 either prior to, or subsequent to any exercise by Licensee of its rights
to negotiate for the exclusive license to such Other Product as provided for above. It is expressly understood and agreed however that nothing in this Agreement shall be interpreted as a license by Licensors to Licensee of any rights to such Other
Product and that any such license will be only as may be agreed upon in writing by the Parties following the Effective Date. 
 2.6 Other
Cross Licenses. In the event either Party desires to incorporate technology in the discovery, research, composition of matter of, or the making or using of Licensed Products pursuant to a Development Plan (“Technology”), and if
such Technology is Covered by Patent Rights which are necessary for the performance of the works contemplated by such Development Plan, in that such Patent Rights would be infringed by the commercial exploitation of the Licensed Product resulting
from the performance of such Development Plan and which either are (i) Licensor Related Patent Rights; or (ii) Licensee Related Patent Rights, or (iii) owned by a third party (collectively, “Related Patent Rights”)
such Party shall inform the JSC of such Related Patent Rights for the JSC’s consideration as part of its consideration of the Development Plan at issue. If the JSC approves incorporation of such Related Patent Rights, it shall determine
(i) the allocation between the Parties of any costs owed or to be owed to such third party owning or Controlling such Patent Rights; or (ii) the consideration to be paid by one Party to the other Party for obtaining a cross license under
such Related Patent Rights. If the JSC does not approve such incorporation or the Parties cannot agree upon such allocation of costs or consideration to be paid to the other Party, then the Party that made the proposal (Licensors or Licensee) may
incorporate such Technology in the discovery, research or Development of the Licensed Product within the framework of a sole Development Plan, as and to the extent permitted under this Agreement, and use, have used import, have imported offer for
sale, sell and have sold the result of such sole Development Plan in the Licensors Territory or Licensee Territory, as the case may be. The foregoing shall remain subject to the Opt-in right of the other Party as set out in Section 4.4.4 of
this Agreement, itself subject to prior written agreement among the Parties on the consideration to be paid by the Opt-in Party to the Developing Party for a license under such Related Patent Rights, without which prior written agreement such Opt-in
right shall not include a license under such Related Patent Rights. 
  

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	3.	GOVERNANCE 

 3.1 Joint Steering Committee.

 3.1.1 Constitution and Powers. 
 The Parties shall establish a Joint Steering Committee (“JSC”) which will consist of an equal number of representatives
of each Party, initially designated at four (4) representatives appointed by each Party among its employees or consultants. Each Party shall, within thirty (30) days after the Effective Date, select its initial representatives and inform
the other Party of such representatives and set a date shortly thereafter (no later than thirty (30) days) for the first meeting of such JSC, provided that such representatives shall be senior persons responsible for the applicable functional
area (i.e., research, clinical development and regulatory, manufacturing, or commercialization) within each Party. The initial representatives from the Parties are set forth in Schedule 12. Each Party may replace its representatives at any
time on prior written notice to the other Party. Each Party will have the right from time to time to invite to JSC meetings employees or consultants other than its representatives to address specific issues discussed at such JSC meetings. The
chairperson of the JSC shall be appointed by Licensors. 
 The JSC shall act as a consultative and decision making body for
the purpose of designing and monitoring the implementation of Development Plans and generally shall act as the forum for information sharing among the Parties with respect to the Development of the Licensed Product, Commercialization Plans, Product
Improvements, Combination Products and potentially Other Products (as and to the extent agreed by the Parties), their manufacture, supply and marketing. In particular, the JSC shall: 
 (i) exchange information (including Development, manufacture, supply and marketing information) related to the Licensed Product,
Product Improvements, Combination Products and potentially Other Products and facilitate cooperation and coordination between the Parties as they exercise their respective rights and meet their respective obligations under this Agreement,

 (ii) design an Initial Development Plan within one hundred and eighty (180) days following the Effective Date
and which shall be undertaken by the Parties jointly as set forth in Section 4.3.1, 
 (iii) review proposals from
either Party on any Subsequent Development Plans, 
 (iv) review and decide on any changes to the Development Plans,

 (v) with respect to the Initial Development Plan and Joint Subsequent Development Plans: 
 (A) Allocate the duties among the Parties, 
  

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 (B) Implement all activities and monitor and coordinate all activities, including
scheduling and prioritization thereof, 
 (C) Develop a publication strategy and a calendar of key scientific and
clinical meetings or other events, 
 (D) Determine the priorities with respect to seeking Marketing Authorization.

 (vi) with respect to Subsequent Development Plans that is the object of sole Development by a Developing Party:

 (A) Review the activities of the Developing Party under such Subsequent Development Plan, 
 (B) Review all Opt-In Information. 
 (vii) appoint working sub-groups whose duties and power shall be determined by the JSC and who shall meet as necessary to provide relevant information for the JSC to carry out its duties under this Agreement;
and 
 (viii) Liaise with and manage the JFC. 
 (ix) promptly following the Effective Date, itself or through an appointed sub-group, become the forum for the discussion and
analysis of the handling of regulatory matters in the Territory and the specific determination of the role of Licensee in acting as Licensor’s regulatory agent under Section 5.1. 
 3.1.2 Meetings of the Joint Steering Committee and Minutes. 
 The JSC shall meet at least twice (2) per Calendar Year for so long as the Initial Development Plan is being carried out by the
Parties and Subsequent Development Plans are being jointly Developed by the Parties. Meetings of the JSC may be attended in person or by telephone or video conference. If in person, the location of the meeting shall alternate at a place decided by
Licensors and Licensee, sequentially. The chairperson of the JSC shall be responsible for providing an agenda for each meeting at least ten (10) business days in advance of such meeting. 
 In the event one Party solely carries out Development under a Subsequent Development Plan, the JSC shall meet once a Calendar Year, unless
otherwise mutually agreed (on a date and location to be mutually agreed in good faith between the Parties) only to review (i) the Subsequent Development Plan and material modifications thereto, (ii) implementation thereof and progress and
(iii) Opt-in Information during the Opt-in Notice Period as set forth in Section 4.4.4 of this Agreement. 
  

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 Responsibility for the preparation of minutes setting forth discussions held at each JSC
meeting shall alternate between the Parties as directed by the chairperson, provided, however, that such minutes will not become official until agreed upon by the JSC representatives of both Parties . The minutes of such JSC meetings shall be
reasonably detailed and distributed in draft minutes to all members of the JSC for comment and review within ten (10) business days after the relevant meeting. The JSC members shall have seven (7) business days to provide comments. The
Party preparing the minutes shall incorporate timely received comments and distribute finalized minutes to all members of the JSC within twenty-four (24) business days of the relevant meeting. 
 3.1.3 Decision-making Authority. 
 Decisions of the JSC shall be taken unanimously. In the event of a disagreement or a deadlock, the matter shall be referred to senior executives of the Parties pursuant to Section 15.1. If the disagreement or
deadlock persists and is not resolved in the period provided for in Section 15.1, Licensors shall have the right to cast a tie-breaking vote which shall be reasonably exercised. It is understood and agreed that the exercise by Licensors of a
tie-breaking vote so as to resolve a disagreement or deadlock at the JSC shall in no way result in the elimination or reduction of Licensors’ obligation to use Diligent Efforts to participate and co-fund the Initial Development Plan and any
Joint Subsequent Development Plans under the terms of this Agreement. 
 However, in the event that a dispute referred to the
Parties pursuant to Section 15.1 is in relation to matters contemplated in Section 3.2.3 as to which the JFC is to agree of this Agreement or with respect to matters related to the manufacture, supply and marketing of Licensed Product in
the Territory is referred to the JSC, Licensors shall have no tie-breaking vote in which event the provisions of Article 15 shall apply. For clarity, it is understood that as between the Parties, Licensors shall at all times have the right to
control all decisions relating to the marketing and selling of the Licensed Product in the Licensors Territory. 
 3.2 Joint Finance
Committee. 
 3.2.1 Membership. Upon the establishment of the JSC, the Parties shall establish a Joint Finance
Committee (“JFC”) to be composed of one (1) employee representative appointed by each Party. Such representative shall be an employee with expertise and responsibilities in the areas of accounting, cost allocation, budgeting
and financial reporting. The JFC representative of each Party may call on any additional employee of that Party to attend the JFC meeting on an ad hoc basis. 
 3.2.2 Meetings. The JFC will meet as appropriate but at least quarterly to review the following, as applicable: (i) each
Party’s Development Costs; (ii) Net Sales, milestone payments, royalty payments; (iii) the results of any completed audits conducted in accordance with Section 7.2.4. In addition to the foregoing, in the event one Party solely
conducts any Subsequent Development Plan, the JFC shall meet (on a date and location to be mutually agreed in good faith between the Parties) to review the Pre Opt-in Development Costs during the Opt-in Notice Period after receipt of the Opt-in
Information. 
  

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 19 

 3.2.3 Decisions of JFC. The JFC shall operate by consensus and decisions of the
JFC shall be taken unanimously. If the JFC is unable to resolve a dispute regarding any issue presented to it, such dispute shall be referred to the JSC for resolution. The JFC shall operate under the direction of the JSC to provide services to and
consult with the JSC in order to address the financial, budgetary and accounting issues under the Agreement. The JFC members may participate in any meetings of the JSC upon request of the JSC. 
 3.3 Coordination of JSCs and JFCs. The Parties acknowledge and agree that there is to be a separate Joint Steering Committee and Joint Finance
Committee created pursuant to the Increlex Agreement, with equal and potentially overlapping membership as that present on the JSC and JFC created pursuant to Section 3.1 and 3.2 above. Where possible, the Parties shall endeavor to coordinate
and potentially combine meetings of the respective Joint Steering Committees and Joint Finance Committee meetings so as to ensure efficient governance and oversight of both collaborations between the Parties, including for example, holding such
meetings on the same dates and/or same locations. 
  

	4.	DEVELOPMENT PLAN AND CONDUCT OF DEVELOPMENT ACTIVITIES 

 4.1 Licensors On-going Development. 
 Licensors shall be solely responsible for the completion of the
Licensors On-going Development at its own cost and expense with a view to obtain Marketing Authorization in the Target Label in the countries in the Territory. Licensors shall promptly provide (or make available) to Licensee all relevant information
relating to such Licensors On-going Development including without limitation the clinical data reports, regulatory files and submissions and correspondence with Regulatory Authorities resulting therefrom. 
 4.2 Development Plan – General. 
 Any Development Plan shall provide for the Development activities to be carried out by the Parties, either jointly or separately as the case may be. A Development Plan should avoid unnecessary duplication by the
Parties in any activity and have a goal of an appropriate allocation of responsibilities in light of the Development activities involved. Each Party shall provide information to the JSC (including Confidential Information) necessary for the JSC
coordinating and deciding on such Development Plan activities with the other Party. 
  

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 Consistent with the above principles, the Development Plan should include: 
  

	 	•	 	 specific tasks, location of work, milestones, budgets (determined with reference to Development Costs), estimated timelines, immediate objectives, and long term
objectives and a determination of the various research and development activities that shall be performed by each Party: 

  

	 	•	 	 provisions for manufacturing and supply of Licensed Product for clinical uses; 

  

	 	•	 	 Development activities including preclinical safety and other studies to support Phase I Clinical Trials, Phase II Clinical Trials and/or Phase III Clinical Trials
and/or filing for and obtaining and maintaining Marketing Authorization; and 

  

	 	•	 	 identification of resource requirements of the Development Plan and allocation of those resources between the Parties. 

 4.3 Initial Development Plan and Subsequent Development Plans of Licensed Products and Other Products. 
 4.3.1 Initial Development Plan. 
 Each Party shall require its representatives at the JSC to use their Diligent Efforts to negotiate in good faith and prepare an Initial Development Plan within one hundred and eighty (180) days following the
Effective Date along the guidelines set out in Schedule 6 to this Agreement. If the JSC approves an Initial Development Plan, it shall be attached hereto as Schedule 6-bis and may be amended or updated only upon approval by the JSC.
The Initial Development Plan shall be updated annually by the JSC at a time decided by the JSC and suitable for all Parties’ planning and budgeting processes. The Initial Development Plan and any modifications thereto (including a change of
scope of the responsibilities of the Parties or changes to the budgets) shall be approved by the JSC in the written minutes of the applicable JSC meeting. In the event the Parties agree on such Initial Development Plan, the Parties shall jointly
perform and fund such Initial Development Plan as set forth in Section 4.4.3 and the Parties shall each have access to, and the rights to use in their respective territory, data arising out of such Initial Development Plan and shall jointly own
the same (as Joint Know-How) as set forth in Section 8.3 of this Agreement. 
 4.3.2 Subsequent Development Plans for
Product Improvements and Combination Products. 
 All Development activities for the Initial Product, Product Improvements
or Combination Products (other than those set forth in the Initial Development Plan), shall be conducted pursuant to a Subsequent Development Plan in conformance with this Section 4.3.2, unless otherwise agreed by the Parties in writing. Each
Party may propose to the other Party to perform a Subsequent Development Plan for a Product Improvement or a Combination Product: the JSC shall reasonably consider such proposals and the other Party may make comments or counter proposals with
respect to all parameters of such proposal, including budget and the Parties shall thereafter negotiate in good faith with a view to agreeing on a Subsequent Development Plan. 
  

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 In the event the Parties agree on such Subsequent Development Plan, the Parties shall
jointly perform and fund such Subsequent Development Plan as set forth in Section 4.4.3 and the Parties shall each have access to, and the rights to use in their respective territory, data arising out of such Subsequent Development Plan and
shall jointly own the same (as Joint Know-How) as set forth in Section 8.3 of this Agreement. 
 In the event a Party
does not agree with and does not want at such time to participate in, a Subsequent Development Plan proposed by the other Party, the proposing Party may, at its own risk, decide unilaterally to perform such Subsequent Development Plan and may
subcontract whole or part of such Subsequent Development Plan to the extent such subcontract is not detrimental to the Opt-In rights of the non-Developing Party set forth in Section 4.4.4(ii)(F) of this Agreement; provided,
however, that at any time during the Opt-In Period, the non-Developing Party may opt to perform and/or co-fund such Subsequent Development Plan, in which event the Opt-in Party may develop, market, promote, sell, have sold the Product
Improvement or Combination Product arising from such Subsequent Development Plan in the Territory (where the Opt-in Party is the Licensee) or in the Licensors Territory (where the Opt-in Party is the Licensors). 
 Notwithstanding the foregoing paragraph, Licensors may only conduct Development activities in a Subsequent Development Plan and designed
to take place in the Territory with the prior written agreement of Licensee, which shall not be unreasonably withheld or delayed; provided, however, that nothing herein shall be deemed to prevent Licensors from applying for a Marketing Authorization
in the Territory as Licensors may deem appropriate. Once granted, the agreement of Licensee can not be withdrawn unless otherwise agreed with Licensors. 
 For the avoidance of doubt, Licensee shall have no right to carry out any Development activity with regards to the Initial Product, Product Improvements, or Combination Products, except in the context of a Subsequent
Development Plan, in compliance with this Section 4.3.2. In addition, Licensee may only conduct Development activities in a Subsequent Development Plan which are designed to take place in the Licensors Territory with the prior written agreement
of Licensors, which shall not be unreasonably withheld or delayed, and which agreement, once granted, cannot be withdrawn unless otherwise agreed with Licensee. 
 4.3.3 Subsequent Development Plans For Other Products. 
 Notwithstanding each Party’s right of first negotiation for Other Products as set forth in Section 2.6, either Party may propose
to the other Party, through the JSC, to participate in and perform a Subsequent Development Plan for an Other Product in which event the JSC shall reasonably consider such proposals and the other Party may make counter proposals with respect to all
parameters of such proposal, including budget and the Parties shall thereafter negotiate in good faith with a view to agreeing on a Subsequent Development Plan for such Other Product. 
  

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 In the event the Parties agree on such Subsequent Development Plan for an Other Product,
the Parties shall jointly perform and fund such Subsequent Development Plan for an Other Product as set forth in Section 4.4.3. The Parties shall each have access to, and the rights to use in their respective territory, data arising out of such
Subsequent Development Plan and shall jointly own the same (as Joint Know-How) as set forth in Section 8.3 of this Agreement. 
 In the event a Party does not agree with a Subsequent Development Plan for an Other Product proposed by the other Party, such other Party may, at its own risk, decide to perform such Subsequent Development Plan for an Other Product wherever
in the world. To the extent a Party does not agree to participate in such Subsequent Development Plan, it shall not forfeit its rights of first negotiation under Section 2.6 but such Party shall not have any Opt-In right under
Section 4.4.4(ii)F with respect to such Other Product unless and until mutually agreed upon by the Parties. The Developing Party may subcontract whole or part of such Subsequent Development Plan provided however that if such Developing Party is
Licensors, such subcontract shall not be detrimental to the right of first negotiation of Licensee as set forth in Section 2.6 of this Agreement. 
 4.4 Conduct of Development Activities. 
 4.4.1 General Rules Applicable to Joint
and Sole Development. 
 The Parties shall use Diligent Efforts to conduct their tasks and obligations under any
Development Plan: 
  

	 	•	 	 in accordance with good laboratory, good clinical and current Good Manufacturing Practices, to the extent these are applicable; 

  

	 	•	 	 in accordance with all relevant legal requirements and shall be responsible for obtaining all necessary approvals therefor from any Regulatory Authorities or
applicable competent authority; and, 

  

	 	•	 	 keeping or causing to be kept written laboratory notebooks and other records and reports of the results and progress of the works to be performed in sufficient
detail for the Parties to accomplish their obligations under this Agreement. 

 The Parties acknowledge that
time shall be of the essence in this Agreement and thus that the time deadlines defined in the Initial Development Plan and any Joint Subsequent Development Plan should be complied with and, as a matter of principle, not be postponed. However, the
Parties agree that the time deadlines defined in the Initial Development Plan and any Joint Subsequent Development Plan may be reasonably modified by the JSC. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 23 

 The obligations of any Developing Party pursuing sole Development under a Subsequent
Development Plan shall be as set forth in Section 4.4.4. 
 Licensors reserve the right to reasonably exercise a tie
breaking vote at the JSC at any time to change or modify the Initial Development Plan or any Joint Subsequent Development Plan, or to abandon whole or part thereof, if (i) it is required by Regulatory Authorities, (ii) there are duly
justified scientific constraints, (iii) there are significant increases in the anticipated costs of Development, (iv) there are significant adverse events or conditions relating to the safety or efficacy of the Licensed Product,
(v) there are significant, duly justified changes in the anticipated costs of manufacturing or (vi) the benefits of continued Development do not outweigh the risks. In the event Licensors request a modification or successive modifications
of the Initial Development Plan or of a Joint Subsequent Development Plan which shall, individually or cumulatively, result in an increase of the aggregate Development Costs to be incurred by more than fifty percent (50%), such modification shall
not be effective unless and until approved by the senior executives of the Parties as provided for in Section 15.1. In case of failure of the senior executives of the Parties to find a common agreement on such modification, Licensee shall have
the right to terminate its performance and funding of the Initial Development Plan or the Joint Subsequent Development Plan, as the case may be, provided however that Licensee shall nonetheless retain it’s Opt-In rights set forth in
Section 4.4.4 (ii) F of this Agreement. 
 4.4.2 Determination of Development Costs. 
 All Development Costs associated with the Development activities carried out by the Parties jointly under the Initial Development Plan or
any Joint Subsequent Development Plans or solely by the Developing Party shall be accounted for as follows: 
  

	 	•	 	 Internal costs of Licensee: EUR [*] per FTE; and Internal costs of Licensors : $[*] per FTE. This reference unit cost shall be reviewed annually by
the Parties on the basis of the inflation rate in the European Union and the U.S., respectively. 

  

	 	•	 	 External costs: at cost, as properly documented and consistent with the cost recorded for services rendered by third parties in the Developing Party’s books in
any corresponding period. 

 4.4.3 Funding of Joint Development. 
 The Initial Development Plan shall be jointly performed and funded by the Parties. To the extent any Subsequent Development Plan is agreed
upon by all Parties pursuant to Sections 4.3.2 or 4.3.3, the Parties shall be obligated to jointly perform or fund such Subsequent Development Plan at the percentage set forth below (“Joint Subsequent Development Plan”). 

All activities undertaken by the Parties pursuant to the Initial Development Plan and any Joint Subsequent Development Plan shall be
funded by the 

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 24 

 
Parties in the following proportion: Licensors shall be responsible for forty percent (40%) of all Development Costs, and Licensee shall be responsible
for sixty percent (60%) of all Development Costs, provided however that with respect to Development that is to be carried out with a view to obtain Marketing Authorization or extension thereof in both the Territory and the Licensor Territory,
Licensor and Licensee shall each be responsible for a specific percentage of all Development Costs related thereto, as determined by the JSC at the time of review and approval of such Development Plan, it being understood that in the event the
Parties do not reach agreement on such new allocation, Licensor and Licensee shall be responsible respectively for forty percent (40%) and sixty percent (60%) respectively, but only, in the case of each of (i) and (ii), to the extent
the foregoing Development Costs are set forth in the Initial Development Plan and Joint Subsequent Development Plan or properly approved revisions thereof. As used in this Agreement, “Licensee Allocation” shall mean such sixty
percent (60%) or other allocation of the Development Costs as provided in the foregoing sentence with respect to Licensee, as the case may be, and “Licensor Allocation” shall mean such forty percent (40%) or other
allocation of the Development Costs as provided in the foregoing sentence with respect to Licensor, as the case may be. Within thirty (30) days of the end of each Calendar Quarter, each Party will notify the JFC in writing of the Development
Costs incurred by such Party during such Calendar Quarter, and the JFC shall aggregate such Development Costs and allocate them to the Parties in accordance with the percentages set forth in the foregoing sentence. Where needed in order to reflect
such allocated Development Costs, corresponding “true up” payments will be made by the Party underpaying its share of Development Costs to the Party having overpaid its share, quarterly within sixty (60) days following the end of each
Calendar Quarter. 
 4.4.4 Sole Development by one Party and Opt-in Rights. 
 (i) Decision for Sole Development. In the event that the Parties have not agreed to jointly perform or fund any Subsequent
Development Plan pursuant to Section 4.3.2, either Party may pursue and fund at its own risk the Subsequent Development Plans (the “Developing Party”) as and to the extent permitted by this Agreement, in which case the
provisions of this Section 4.4.4 shall apply. 
  

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AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 25 

 (ii) Development Efforts. 
 (A) General. Subject to the restrictions set forth in subsection B below regarding conducting Development activities in the
non-Developing Party’s territory, the Developing Party shall make Diligent Efforts (without the duty to make additional expenditures beyond that required to obtain regulatory approval in its own Territory) to perform pre-clinical and clinical
activities in a manner that would be suitable for filings for Marketing Authorization in the Licensors Territory (if Licensee is the Developing Party) or in the Territory (if Licensors are the Developing Party), as applicable, should the
non-Developing Party subsequently exercise its Opt-in rights pursuant to subsection F below. The Developing Party shall provide the JSC with quarterly reports outlining the results of each completed material pre-clinical and clinical study during
the preceding Calendar Quarter. Notwithstanding the foregoing, the Developing Party shall not be required to continue any Subsequent Development Plan or to complete any tasks enumerated therein, prior to the time the other Party exercises its rights
to Opt-in. 
 (B) Territorial Restrictions. If Licensee is the Developing Party, it shall only carry out the
Development activities in the Territory or, outside the Territory but only with the prior written consent of Licensors. If Licensors are the Developing Party, they shall only carry out Development activities outside the Territory or, in the
Territory, but only with the prior written consent of Licensee. 
 (C) Supply Obligations. If Licensee is the
Developing Party, Licensors shall supply Licensee with lanreotide or Licensed Product as clinical supplies in accordance with Article 6 and in quantities to be reasonably determined by the JSC. 
 (D) Subsequent Development Plan. 
 Each Party shall have the opportunity to provide input and suggestions with regard to such Subsequent Development Plan. Notwithstanding the foregoing, Licensors shall have the sole right to prohibit any activity
related to any Development under a Subsequent Development Plan pursued by the Licensee as Developing Party if Licensors exercise a tie breaking vote as set forth in Section 4.4.1. If Licensors prohibit such activity, the JSC and the Developing
Party shall comply with such decision and such activity shall be excluded from the Subsequent Development Plan. The Subsequent Development Plan shall be updated by the Developing Party in accordance with the next sentence and be presented to the JSC
at its next meeting. Material modifications to the Subsequent Development Plan shall be submitted to the JSC for review. 
 (E) Development Costs under Subsequent Development Plan. The Developing Party shall be responsible for all Development Costs related to such Subsequent Development Plan, subject to Opt-in by the other Party and sharing of costs
pursuant to Section 4.4.4(ii)(F) below. The Developing Party shall record separately in its books in an auditable manner, all its Pre Opt-in Development Costs. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
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ACT OF 1934, AS AMENDED. 
 26 

 (F) Opt-in. 
 (a) General. With respect to each Subsequent Development Plan pertaining to the Development of a Licensed Product for a
particular Indication, the non-Developing Party (the “Opt-in Party”) shall have the option to decide to participate (“Opt-In”) in the performance and the funding of such Subsequent Development Plan at such times
during the performance of the Subsequent Development Plan as are set forth below (each, an “Opt-In Period”): 
  

	 	•	 	 At any time during pre-clinical development and up to the date of allowance of the first IND in the Licensors Territory or the Territory under the relevant
Subsequent Development Plan (“Opt-In Period 1”); 

  

	 	•	 	 Within thirty (30) days of receipt of data following completion of each Phase I Clinical Trial under the relevant Subsequent Development Plan (“Opt-in
Period 2”); 

  

	 	•	 	 Within sixty (60) days of receipt of data following completion of each Phase II Clinical Trial under the relevant Subsequent Development Plan (“Opt-in
Period 3”); 

  

	 	•	 	 Within thirty (30) days of receipt of data following completion of each Phase III Clinical Trial with the Licensed Product under the relevant Subsequent
Development Plan and until the filing of a New Drug Application (or equivalent in any country of the Territory) under such relevant Subsequent Development Plan, (“Opt-in Period 4”); 

  

	 	•	 	 At any time after the filing of the first New Drug Application (or equivalent in any country of the Territory) under the relevant Subsequent Development Plan and
before the end of the thirty (30)-day period following the date of obtaining the first Marketing Authorization under such relevant Subsequent Development Plan (“Opt-in Period 5”), 

  

	 	•	 	 Within the thirty (30) day period after expiry of Opt-in Period 5 (i.e., following expiration of the initial thirty-day period following the date of obtaining
Marketing Authorization) (“Opt-in Period 6”). In the event the Licensors are the Developing Party and the Licensee has failed to Opt-in by the end of the Opt-in Period 6, through the failure to deliver either the Opt-in Notification
or Opt-in Payment as set forth below to the Developing Party, Licensors shall be entitled to serve a termination notice pursuant to Section 4.4.4(iii)D(a). 

 Notwithstanding the foregoing general framework, the Parties agree that at the time the non-Developing Party elects not to pursue a Subsequent Development Plan, they shall also agree upon in good faith, through the
JSC, for that Subsequent Development Plan, and depending upon the nature and subject matter thereof, which trials proposed to be conducted thereunder shall comprise a “Phase I Clinical Trial” or “Phase II Clinical Trial” or
“Phase III Clinical Trial” to best provide a fair and reasonable opportunity for 

  

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ACT OF 1934, AS AMENDED. 
 27 

 
the non-Developing Party to Opt-in at appropriate value creation events, and the Developing Party to receive the appropriate Opt-in Payment associated with
those value creation events, as specified in Section 4.4.4(ii)F(c) below. Upon generation of the statistical analyses for the primary endpoint(s) for any such trial, the Developing Party shall provide a report of such statistical analyses and
all other analyses available at the same time, as defined in the statistical analysis plan for such trial. In addition, the Developing Party shall also provide to the other Party a final clinical study report signed by the relevant responsible
person in the respective Party (the “Final Report”). 
 In such event of Opt-in, the Opt-in Party shall notify its exercise of its right to
Opt-in in writing to the Developing Party (the “Opt-In Notification”). The Opt-in Notification shall contain confirmation that the Opt-in Party has paid the relevant Opt-in Payment (as defined in Section 4.4.4(ii)F(c) below) to
the Developing Party. In case of failure to Opt-in pursuant to this paragraph, the provisions of Section 4.4.4(iii)D(a) shall apply. 
 As used above
with respect to a clinical trial, “receipt of data following completion” shall mean the receipt by the Opt-in Party of the Final Report, provided however that the Opt-in Party may, at its discretion elect to Opt-in on the basis of the
final statistical analysis, tables figures and listing delivered by the Developing Party as discussed above. 
 (b) Pre
Opt-in Development Costs and Post Opt-in Development Costs. “Pre Opt-in Development Costs” means Development Costs incurred by the Developing Party with respect to the Subsequent Development Plan up until the applicable Opt-in
Notice Date, including costs of acquiring ownership or Control of Patent Rights or Know-How in relation to the Product Improvements, the Combination Products or the Other Products, as the case may be, as are the subject of such Subsequent
Development Plan and related to the Opt-in Information supplied by the Developing Party to the Opt-in Party. “Post Opt-in Development Costs” means Development Costs incurred thereafter for the continuation of the Subsequent
Development Plan. 
 (c) Opt-in Payment. The Opt-in Payment will vary with the specific Opt-in Period during which the
Opt-in Notification is received by the Developing Party and shall be paid by the Opt-in Party to the Developing Party concomitantly with the Opt-in Notification. If Licensee is the Opt-in Party the Opt-in Payment shall be paid to SCRAS unless
otherwise directed by Licensor’s representatives at the JSC. The Opt-in Payment will be equal to the relevant percentage as set forth below of (i) the Licensor Allocation of the Pre Opt-in Development Costs if Lisensors are the Opt-in
Party and (ii) the Licensee Allocation of the Pre Opt-in Development Costs if Licensee is the Opt-in Party: 
  

	 	•	 	 The relevant percentage shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 1 or Opt-in Period 2; 

  

	 	•	 	 The relevant percentage shall be [*]% if the Opt-in Party exercises its Opt-in-during Opt-in Period 3, 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 28 

	 	•	 	 The Opt-in Payment shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 4 

  

	 	•	 	 The Opt-in Payment shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 5 

  

	 	•	 	 The Opt-in Payment shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 6. 

 (iii) Exercise of Opt-in. 
 (A) Provision of Opt-in Information. 
 (a) Timing. The Developing Party shall
provide, on a continuing basis, Opt-in Information (as defined below) to the other Party as provided herein. Such Party shall provide such Opt-in Information on any on-going preclinical activities promptly following accrual thereof and such Opt-in
Information upon completion (as defined below) of the first Phase I Clinical Trial, Phase II Clinical Trial and Phase III Clinical Trial with respect to any Subsequent Development Plan but in no event more than thirty (30) days after completion
of the data analysis for such clinical trial. For the purposes of this Section, the term “end” or “completion” shall mean that results from the clinical trial at issue have been fully collected, analyzed and formatted
consistently with the guidance provided by the appropriate Regulatory Authority. The date of receipt by the other Party of all information accrued from the Subsequent Development Plan which is reasonably available to the Developing Party and which
would be reasonably material and necessary for the other Party to make a decision regarding exercising such Opt-in during the Opt-in Period at issue for such indication shall be the “Opt-in Notice Date”. 
 (b) Content. “Opt-in Information” shall include but is not limited to: a copy of the final clinical study report
and data, results (including but not limited to results from the clinical trial at issue), reports and protocols and interpretations of clinical trials, a detailed accounting of all Pre Opt-in Development Costs; all analyses and information relating
to predicted manufacturing costs and any other pertinent manufacturing information (if available to the relevant Party); anticipated regulatory costs and fees; Regulatory Authority documentation and correspondence; and information relating to
expected third party royalty obligations. The Party receiving such Opt-in Information shall only use such Opt-in Information to decide whether to exercise an Opt-in. If such Party does not exercise an Opt-in, such Party shall not use such Opt-in
Information for any other purpose, shall return the same to the Developing Party and shall maintain its confidentiality, provided that such information qualifies as Know-how of the Developing Party. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 29 

 (B) Opt-in Procedure and Providing Additional Information. 
 (a) Opt-in Procedure. Following the Opt-in Notice Date, the non-Developing Party shall have the right, up until the end of the
relevant Opt-in Period (the “Opt-in Notice Period”), to cause the JSC to meet to address any issues arising out of the Opt-in Information, including calculation of or accounting for any Pre Opt-in Development Costs. Then, during
such Opt-in Notice Period, the non-Developing Party shall have the right to elect to participate together with the other Party in the Subsequent Development Plan by providing the Developing Party with written notice of its decision to so participate
and by paying the Opt-in Payment to the Developing Party (such notice and such reimbursement payment are herein collectively referred to as an “Opt-in” by such Party) by a date which is prior to the end of the Opt-in Period at
issue. If the Party electing to Opt-in fails to pay the Opt-in Payment to the Developing Party, and continues to fail to make such payment within ten (10) business days of written notice from the other Party (except that withholding disputed
amounts shall not be deemed a failure to make such reimbursement payment), then such Party shall be deemed to have declined such Opt-in for such Subsequent Development Plan during the Opt-in Period at issue, but shall continue to have the right to
Opt-in unless and until expiration of Opt-in Period 6. 
 (b) Obligation to Provide Additional Information. During the
Opt-in Notice Period, (1) the Developing Party shall have an affirmative obligation to provide the other Party with any additional available information which would be reasonably material for such other Party to make an Opt-in decision and,
(2) each Party may request additional information which would be reasonably material for it to make an Opt-in decision and the Developing Party shall supply such information to the extent it is reasonably available and necessary for the Opt-in
decision. 
 (c) Extension. In the event a Developing Party supplies additional information pursuant to the preceding
sentence and there are fewer than thirty (30) days remaining in the relevant Opt-in Period, such Opt-in Period shall be extended to such date that is thirty (30) days after the provision of such additional information. A Party may, at its
sole discretion, notify the Developing Party in writing before the expiration of its rights set forth herein, that it waives such rights and such Opt-in rights shall thereby terminate. The Opt-in Period may be extended by this Section only once with
respect to each Subsequent Development Plan. 
 (C) Pre Opt-in Development Costs and Post Opt-in Development Costs.

 (a) Timing of Reimbursement of Pre Opt-in Development Costs. At the same time a Party provides the Opt-in
Notification, such Party shall pay to the other Party the Pre-Opt in Development Costs. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
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ACT OF 1934, AS AMENDED. 
 30 

 (b) Disputes. A Party may audit Pre Opt-in Development Costs submitted by the
other Party pursuant to this Agreement or may appoint internationally-recognized professional accountants to do so. In the event that a Party reasonably disputes specific items contained in the other Party’s calculation of Development Costs due
to the other Party’s incorrect calculation of Pre Opt-in Development Costs, such Party shall pay the amounts not in dispute or in question and such disputed or questioned amounts shall be identified by the JFC and submitted to the JSC who shall
promptly meet or confer to resolve such disputes or questions. Within seven (7) business days following resolution of such matters, one Party shall pay or reimburse to the other Party the appropriate remaining balance. In the event the JSC is
not able to resolve a dispute concerning the reimbursement of Development Costs under this Section, the Parties shall follow the dispute resolution procedure in Article 15. 
 (D) Joint Development After Opt-in. After any Opt-in, the Parties shall jointly conduct all future Development activities that are
planned in the relevant Subsequent Development Plan for which the non-Developing Party has exercised its Opt-in. For clarity, all such activities by either Party commencing from the Opt-in Notice Date shall be subject to approval by the JSC pursuant
to Section 3.1.1 and thereafter the Parties will participate in co-development and such Post Opt-in Development Costs (as of Opt-in Notice Date) shall be funded by the Parties in the following proportion: Licensors shall be responsible for the
Licensors Allocation of such Post Opt-in Development Costs, and Licensee shall be responsible for the Licensee Allocation of such Post Opt-in Development Costs, only to the extent the foregoing Post Opt-in Development Costs are set forth in the
Subsequent Development Plan approved by the JSC. Corresponding payments will be made as provided under Section 4.4.3. 
 (a) Consequences of Non-Exercise of Opt-in by Licensee. In the event Licensee has not Opted-in with respect to a Subsequent Development Plan of Licensed Product during Opt-in Period 6 or prior thereto, and therefore has not paid the
relevant Opt-in Payment as set forth in Section 4.4.4(ii)F(c) of this Agreement to Licensors as the Developing Party, Licensors may serve a sixty (60) days termination notice to Licensee; in the event that Licensee does not make such
payment within such sixty-day termination notice period. Licensor shall have the right to terminate this Agreement at any time within two (2) months of expiration of such sixty (60) day termination notice period and such termination shall
take effect seven (7) months after the expiration of the sixty (60) day period and the provisions of Section 9.3 (except for 9.3.1(b)) shall apply, provided however that if Licensee can reasonably demonstrate to Licensors that
(i) the market potential of such Product Improvement or Combination Product which is the subject of such Subsequent Development Plan does not justify the investment required from Licensee to bring such Product Improvement or Combination Product
to the market in the Territory or (ii) such Product Improvement or Combination Product can be clearly differentiated from the Licensed Product then being Developed or sold in the Territory, then this Agreement may not be terminated by
Licensors, but Licensors shall be entitled to develop, market, promote sell and have sold such Product Improvement or Combination Product anywhere in the Territory, notwithstanding the licenses granted in Section 2.1, and with no duty of
accounting or other payment to the Licensee in such event. 
  

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 31 

	5.	COMMERCIALIZATION 

 5.1 Responsibility for Regulatory Affairs. Licensors shall be responsible for all regulatory affairs related to obtaining the initial Market Authorization of the Licensed Product including the Initial Product
in the countries in the Territory. For each country in the Territory, the obligations of Licensors in such country shall include the preparation and filing of applications for Marketing Authorizations in such country. Licensor shall use Diligent
Efforts to file and obtain the initial Market Authorization of the Initial Product, as well as supplementary Marketing Authorization for the 2nd generation of the Initial Product (i.e., the planned new syringe and attendant needle protection system to be filed as a supplement after the approval of the Initial Product), in its own name or that
of its Affiliates, but any failure to so obtain Marketing Authorization in any given country of the Territory shall not constitute a material breach of this Agreement. Upon obtaining of Marketing Authorizations and subject to applicable laws,
Licensors shall promptly appoint Licensee as Licensors’ regulatory agent to perform, on behalf of but at no cost to Licensors, those activities that are the responsibility of the Licensor as Marketing Authorization holder. Following the date of
the grant of the Marketing Authorization, Licensee shall (a) consult with Licensors regarding the regulatory strategy in the Territory and consider in good faith Licensors’ comments regarding the same, (b) promptly provide Licensors
with copies of all correspondence received by Licensee from Regulatory Authorities within the Territory, copies of any draft response and (c) consider in good faith Licensors’ comments thereon prior to filing any such response. The Parties
agree to initiate promptly following the Effective Date, through the JSC or a sub-group established by the JSC, discussion and analysis of the handling of regulatory matters with respect to the Licensed Product in the Territory and specific
determination of the role of Licensee in acting as Licensors’ regulatory agent in the Territory. 
 Licensee will be solely responsible,
at its own cost, for conducting at its cost all formalities, steps and negotiation with Regulatory Authorities or any governmental entity in establishing the resale pricing and acquiring reimbursement for the Licensed Product in the Territory.

 The Parties shall cooperate with each other in supplying data or documents that may be requested or required by the other Party with
respect to government regulation, registrations, or approvals in a timely manner and in manner that does not jeopardize the gaining or maintaining of a Marketing Authorization. 
 5.2 Pharmacovigilance Safety Data Exchange Agreement. A pharmacovigilance safety data exchange agreement on standard and customary terms and
conditions shall be negotiated and executed between BIP and Licensee within ninety (90) days as from the Effective Date, but in any event prior to Licensee initiation of any human clinical trials or marketing of the Licensed Product.

 5.3 Commercialization Efforts. Licensee shall be solely responsible and shall use Diligent Efforts for the promotion and
commercialization of the Licensed Product in the Territory in accordance with the Commercialization Plan. 
  

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 32 

 Without limiting the generality of the foregoing, the Parties shall agree within the JSC upon a
Commercialization Plan for each Licensed Product for each country of the Territory where Licensee intends to commercialize the Licensed Product, within one hundred and twenty (120) days after the Effective Date for the Initial Product or within
one hundred and twenty (120) days after the filing of the first Marketing Authorization application for any other Licensed Product as to which Licensee has a license under Article 2, as the case may be. The first Commercialization Plan shall
cover the remainder of the Calendar Year in which it is prepared and the two subsequent Calendar Years. The Commercialization Plan shall be updated annually in October or earlier, if in the interim a new filing of Marketing Authorization application
in any country of the Territory has occurred with respect to such Licensed Product. Sales Forecasts included in the Commercialization Plan shall be reviewed and agreed by the Parties within the JSC at the time of annual update of the
Commercialization Plan, provided, however, that during such annual review, the Sales Forecasts of the Calendar Year during which the review is conducted or the subsequent Calendar Year shall not be modified unless agreed unanimously by the JSC, in
light of, for example, the occurrence of one or more events in the Territory of the following nature: (i) changes in regulatory approval or compliance requirements having an adverse impact upon the sales or projected sales of the Licensed
Product, (ii) the entrance of a generic competitor prior to the time anticipated in such market as a result of the loss by either Party of any patent infringement action with respect to such generic competitors and prior to expiration of the
Licensed Patent Rights; or (iii) actual or anticipated disruption of supply of Licensed Products by Licensor, or (iv) any Force Majeure event . 
 5.4 Commercial Diligence. 
 5.4.1 Minimum Sales. Licensee shall achieve annual
minimum sales of the Licensed Products (aggregated across all Licensed Products) which shall be equal to [*] percent of the applicable Sales Forecasts for such Calendar Year on a country-by-country basis (the “Country Minimum
Sales”). The total of all annual Country Minimum Sales is defined as the “Aggregate Minimum Sales Requirements”. After the end of the first full Calendar Year following the Calendar Year in which the First Commercial Sale
of the Licensed Product in the Territory occurs, in the event Licensee fails in any subsequent Calendar Year (e.g., if First Commercial Sale occurs in 2007, such failure would have to occur in 2009 or later) to achieve the Aggregate Minimum Sales
Requirements (except for Force Majeure reasons or disruption of supply of Licensed Products by BIP), Licensee will owe to Licensors the “Net Sales Compensation” as defined below within thirty (30) days the end of the relevant
Calendar Year. In the event that, Licensee (i) does not pay the Net Sales Compensation due with respect to any Calendar Year within such thirty (30) days or (ii) has paid the Net Sales Compensation for two (2) consecutive
Calendar Years and is liable for payment of the Net Sales Compensation for a third consecutive Calendar Year, Licensors shall have the right to terminate this Agreement with respect to such country with respect to which Licensee has failed to pay
the Net Sales Compensation or is liable for payment of the Net 

  

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 33 

 
Sales Compensation for a third consecutive Calendar Year, as the case may be. The “Net Sales Compensation” for any Calendar Year shall be
equal to the Aggregate Minimum Sales Requirements applicable for such Calendar Year less the aggregate Net Sales realized during such Calendar Year multiplied by the applicable royalty rate. 
 5.4.2 Promotional Diligence. Should Licensee fail to undertake and fund [*] of its Promotional Efforts as specified in the
Commercialization Plan during [*] consecutive Calendar Years in any country of the Territory and should Licensee also have failed to achieve the Country Minimum Sales for such country as set forth in Section 5.4.1 for each of such two
(2) consecutive Calendar Years, Licensors shall have the right to terminate this Agreement with respect to such country. The Licensee shall provide access to its internal budget and actual spending data as required in case there is an under
spend as defined in this Section 5.4.2 and provide available external data sources (i.e. to measure sales force activity) to the same effect. 
 5.5 Minimum Inventory. Licensee shall at all times maintain a sufficient inventory of the Licensed Products available for immediate delivery to customers in the Territory, which shall correspond at least to the Territory-wide volume
of Licensee’s sales of the next three (3) forecasted months (which inventory amount shall be reviewed by the Parties after the first Calendar Year following the Calendar Year in which the First Commercial Sale occurred and modified if
necessary by the Parties’ mutual written agreement), and shall use all means and make all arrangements necessary to fulfill in due time all orders it receives from customers. 
 5.6 Sales Reporting and Records. 
 5.6.1 Monthly Sales Report. 
 Licensee undertakes to forward to Licensors before the 5th working day of each calendar month a Licensed
Product sales record expressed in value (in USD) and volume by Licensed Products. Licensee shall use for this purpose the Monthly Sales Report template attached in Schedule 7 to this Agreement or any other template that may be agreed by the
Parties from time to time. These reports shall be signed and sent by email and by courier to Licensors. 
 5.6.2 Yearly
Sales Reports. 
 Before February 27th of each Calendar Year, Licensee undertakes to forward to Licensors a report on the preceding Calendar Year showing :

  

	 	•	 	 the Licensed Product sales achieved by Licensed Product in unit and in local currency; 

  

	 	•	 	 the Licensed Product sales development by customer and by Licensed Product showing sales trends; 

  

	 	•	 	 Licensed Product returns and claims from the market; 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 34 

	 	•	 	 Impact of competing products including those constituting Market Competition (including the IMS data on the therapeutic classes to which the Licensed Products
pertain), pricing, acceptance of the Licensed Products by the medical profession, hospitals, pharmacies, and chemistries, in the Territory. 

 These reports shall be signed and sent by email and by courier to Licensors. 
 5.6.3 Sales record. Licensee
shall keep complete, accurate and detailed records of all sales of Licensed Products during a period of three (3) years as from the date of such sales being made. Licensors or their agent(s) may consult such records at Licensee’s premises
at any time during business hours with fifteen (15) days notice, in order to make the customary verifications of the amount of sales performed by Licensee. 
 5.7 Promotional Materials. Licensee shall forward a copy of all promotional materials, including but not limited to brochures, video tapes and medical information that Licensee is using for the promotion of the
Licensed Products in the Territory. 
 Licensee shall ensure that all promotional materials comply with local laws and
regulations of the relevant country of the Territory and do not infringe third party’s rights. Therefore, notwithstanding the communication of Licensors on such promotional materials, only Licensee shall be held liable in case of breach of
local laws and regulation or infringement of third parties’ rights. 
 All costs linked to the promotion of the Licensed
Products shall be borne by Licensee exclusively. 
 Upon early termination by one Party of this Agreement, subject to
Licensee’s rights to continue sales for up to six (6) months under Section 9.3.1(b) Licensee shall, upon request and at Licensors’ discretion, either destroy or immediately return to Licensors, at no cost, all promotional
materials conceived and printed by Licensee, for Licensors unrestricted use. 
 5.8 Restrictions. Licensee shall not actively sell,
advertise nor seek customers for the Licensed Products outside the Territory. During the term of this Agreement, Licensee will not manufacture, promote, distribute nor sell, either directly or indirectly, any pharmaceutical products in the Field
having at least one same approved Indication as any Licensed Product 
 5.9 Product Recalls. Product recalls procedure shall be set
out in the Technical Agreement. 
  

	6.	MANUFACTURING AND SUPPLY 

 6.1 General.

 6.1.1 Initial Product. BIP shall manufacture and supply to Licensee the Initial Product, as and to the extent
set forth in this Article 6. With respect to the Initial 

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 35 

 
Product, BIP and Licensee will collaborate to agree and implement within one hundred and twenty (120) days following the Execution Date, a separate
agreement relating to technical requirements including without limitation supply organization, quality assurance, specifications, complaints and batch recall, control of material, analytical testing and validation of the Initial Product (the
“Technical Agreement”). 
 6.1.2 Product Improvements and Combination Products. In addition, as and to
the extent agreed upon by the Parties with respect to any Joint Subsequent Development Plan or Subsequent Development Plan for which Licensee Opts-in, for a Product Improvement or Combination Product, the manufacture and supply of such Product
Improvement or Combination Product to Licensee shall be as agreed upon by the Parties in writing (including as needed the execution of a Technical Agreement for each such Product Improvement or Combination Product). 
 6.2 Purchase Requirements for Commercial Supply. For the term of this Agreement , Licensee shall purchase exclusively from BIP all of its
requirements for Licensed Products to conduct any Development activities as set forth in this Agreement and to meet commercial demand in the Territory. 
 6.3 Clinical Supply Requirements. To the extent needed by Licensee, BIP shall supply clinical requirements of the Initial Product in either bulk active form or finished dosage form, as further set forth in the
Initial Development Plan or any Subsequent Development Plan, as relevant. Such Initial Product shall be supplied at a price equal to BIP’s internal and out of pocket costs on a schedule to be determined within the Development Plan, including
all costs of carriage and insurance, and such costs shall be paid within thirty (30) days of invoice for same. 
 6.4 Delivery.
Delivery of the Licensed Products shall be CIP (Carriage and Insurance Paid, Incoterms 2000), RX Crossroads, Louisville, Kentucky(the “Delivery Point”). 
 6.5 Commercial Supply Price. For launch and the first Calendar Quarter of the year in which
launched, Licensee shall purchase the Initial Products and Samples at the per unit prices listed in Schedule 8 (the “Supply Price”), as of the Execution Date. The Parties acknowledge that the ongoing Supply Price of the
Licensed Products shall be equal to twenty percent (20%) of average selling price per unit sold of the Licensed Product in the Territory, Accordingly, following such first Calendar Quarter Licensee, through the JFC shall calculate the average
selling price per unit sold of the Licensed Product in the Territory over the prior Calendar Quarter, and such amount shall be used as the new average selling price per unit sold for all units of Licensed Product purchased during the remainder of
the relevant Calendar Year. Each year prior to 30th January, the JFC shall calculate the average selling price
per unit sold of the Licensed Product in the Territory during each preceding Calendar Year and such amount shall be used as the new average selling price per unit sold for all units of Licensed Product to be purchased for the next Calendar Year. As
the Supply Price is or may be adjusted annually for each newly calculated average selling price per unit sold of the Licensed Product in the 

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 36 

 
Territory, Schedule 8 shall be updated to so reflect such adjusted price. Within thirty (30) days after the end of a Calendar Year, the Parties,
through the JFC, will calculate the actual average selling price per unit sold of the Licensed Product in the Territory and review the Supply Price of the Licensed Products paid to BIP in light of such actual average selling price per unit sold and
Licensee shall adjust the supply price, retroactively, to an amount equal to twenty (20) percent of the actual average selling price per unit sold in the preceding Calendar Year. Such adjustment shall take the form of the issuance (within ten
(10) days following such adjustment) by BIP of a credit for the amount overpaid or an invoice for the amount remaining due, as the case may be; the invoice (if applicable) shall be settled within thirty (30) days following the date of
invoice. In addition, such actual average selling price per unit sold will also be used as the new Supply Price for the current Calendar Year. As used herein, “average selling price per unit sold” shall mean aggregate Net Sales of Licensed
Products for the Territory during the applicable Calendar Year, divided by actual number of units of Licensed Product comprising such Net Sales (including free goods but excluding samples). 
 BIP shall invoice Licensee upon shipping of the Licensed Products for any Binding Orders. Payment of such invoice shall be made by Licensee to BIP within
thirty (30) calendar days of the date of the invoice and shall be made by wire transfer, using the information below or as BIP may from time to time direct in writing in its invoicing: 
 Name of the Bank: [*] 
 Wire transfer account number: [*] 
 Bank Accounts Numbers ( IBAN): [*] 
 Account owner: BEAUFOUR IPSEN PHARMA

 If Licensee fails to pay any amounts owing to BIP here above when due, interest shall accrue on overdue amounts at an annual rate equal to
the average one-month European Interbank Offered Rate (EURIBOR) plus two (2) percent as reported by the European Bank Federation (or a successor or similar organization) from time to time, calculated on the number of days such a payment is
overdue. 
 6.6 Minimum Commercial Orders. The minimum quantities per order for the licensed Products are specified in Schedule
9. 
 6.7 Order Forecast – Firm order. 
 6.7.1 At least ninety (90) days before the expected First Commercial Sale of the Licensed Products in any country of the
Territory, the Parties shall agree upon a monthly rolling order forecast for the first eighteen (18) months for each SKU of the Initial Product in such country(ies) (the “18-Month Rolling Order Forecast”) which shall be under
the form as attached in Schedule 10. Thereafter, Licensee shall forward to 

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 37 

 
BIP before the 20th day of every calendar month a revised and adjusted 18-Month Rolling Order Forecast for the next eighteen (18) months for each of the
countries where the Licensed Product is commercialized or is expected to be commercialized within less than ninety (90) days. 
 6.7.2 The forecast for the first three (3) months of the 18-Month
Rolling Order Forecast shall constitute a firm purchase order unless BIP informs Licensee of the non availability of the ordered quantities of Products (the “Binding Order”). The Binding Order relating to the 3rd month of the 18-Month Rolling Order Forecast shall not exceed by more than twenty (20) percent the forecasts relating to
the 4th month of the preceding 18-Month Rolling Order Forecast. In the event the Binding Order relating to the
3rd month of the 18-Month Rolling Order Forecast exceeds twenty (20) percent, BIP shall use its Diligent
Efforts to supply any exceeding quantities. 
 6.7.3 The
forecast for the fourth (4th) through sixth (6th) months of the 18-Month Rolling Order Forecast shall constitute a commitment by Licensee to purchase at least fifty (50) percent of such forecasted
amount for such months unless BIP informs Licensee of the non availability of the ordered quantities of Products (the “Semi-Binding Order”). The Semi-Binding Order relating to the 4th, 5th, and 6th months of the 18-Month Rolling Order Forecast shall not vary (upward or downward) by more than twenty (20) percent the
forecasts relating to the 5th, 6th, and 7th months,
respectively, of the preceding 18-Month Rolling Order Forecast. 
 6.7.4 Licensee agrees that a Binding Order and/or a
Semi-Binding Forecast cannot be modified, and that no changes or cancellations shall be allowed. 
 6.7.5 In any
instance, one (1) month before the preferred shipping date, Licensee shall send a purchase order form using the form that will be forwarded by BIP from time to time, with the quantities requested to be delivered to each country and/or region
and the requested dates of delivery, it being understood that requested delivery shall occur no more frequently than once every six (6) months. 
 6.7.6 BIP will use its commercially reasonable efforts to accommodate the preferred delivery date mentioned by Licensee on the purchase order form which shall, if possible, not be less than ten (10) days
after the date of receipt of the order form by BIP. Licensee shall take timely delivery of all quantities of Licensed Products supplied by BIP. 
 6.7.7 All forecasts and orders shall be sent by email and confirmed by fax or mail to the address set forth in the Technical Agreement. 
 6.7.8 The Parties agree that they will discuss any improvements to be made to the mechanism of providing forecasts and Binding
Orders in a spirit of permanent improvement process. 
 6.8 Storage. Licensee shall provide warehouse facilities adequate to store the
Licensed Products in accordance with the relevant and approved storage requirement as specified within the Technical Agreement and with standard requirements related to cGMP pharmaceutical product storage and handling. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 38 

 6.9 Packaging. BIP shall supply Licensee with finished dosage form of the Initial Products fully
packaged and labeled ready for sale in each country of the Territory, unless otherwise agreed by the Parties in writing, unless specified otherwise pursuant to the Commercialization Plan. BIP shall be entitled to modify such packaging and leaflet at
any time subject to Licensee’s prior agreement. Any modifications to the initial packaging required by Licensee or by Regulatory Authorities shall be implemented only upon BIP’s prior written approval and provided that Licensee shall
reimburse all costs and expenses in relation thereto. 
 6.10 Minimum Shelf Life. The Licensed Product shall be delivered to Licensee
with a remaining shelf life of eighty percent (80%) of the total shelf life and in no case less than sixteen (16) months. 
 6.11 Regulatory Compliance. Licensee shall observe any and all applicable laws and regulations of the Territory, with respect to the import, warehousing, promotion, distribution and sale of pharmaceutical specialties, and undertakes
to make and fulfill any and all formalities in connection with all such activities which may be required under applicable laws and regulations of the Territory, including but not limited to, clearance of customs and/or exchange control declarations
and payment of any and all sales taxes which are or may become due in the Territory. 
 6.12 Legal Requirements in Territory. Licensee
shall provide BIP with appropriate and updated information related to the legal and regulatory requirements in the Territory with regards to the Initial Products (including but not limited to quality, therapeutic use, packaging, labeling and
storage). Such information shall be forwarded to BIP in writing by Licensee forthwith upon its becoming aware of the same. BIP shall be responsible to proceed promptly to any Licensed Products packaging or labeling modification required by the
Regulatory Authorities of the Territory. Licensee shall provide BIP (or its designated third party manufacturer) with the relevant technical assistance if so requested by BIP, to that effect. 
 6.13 Licensee shall solely be responsible for and support all costs and expenses arising out of the occurrence of any damage, destruction or loss
of any quantities of Licensed Products from the time BIP has delivered the Licensed Products to the Delivery Point. Licensee shall contract an insurance to cover such risks (including without limitation the risks incurred by the Licensed Products
during its transportation) and shall maintain such insurance in force during the entire term of this Agreement. 
 6.14 Licensee shall
obtain at its own costs any export/import license or other official authorization and carry out, where applicable, all customs formalities for the export/import of the Licensed Products. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 39 

 6.15 Specifications and compliance with cGMP shall be set forth in the Technical Agreement.

 6.15.1 BIP warrants that all quantities of Licensed Products delivered to Licensee pursuant to this Agreement
meet the Specifications, that the Licensed Products are manufactured in full compliance with current Good Manufacturing Practices for all countries of the Territory where the Licensed Products are sold and that all necessary tests and analysis in
the course of the manufacturing processes and thereafter have been duly carried out and shall, with each delivery pursuant hereto, provide Licensee with copies of the appropriate quality assurance certificates issued in English by the manufacturing
plants and the Qualified Person. 
 6.15.2 BIP shall have the right to modify the Specifications subject to prior
notification to Licensee and subject to approval by the Regulatory Authority. In the event Licensee desires other or special Specifications for the Licensed Product or guidelines to be considered, Licensee shall notify BIP accordingly. BIP agree to
consider in good faith such special Specifications or guidelines, provided, however, that any costs relating to the implementation of such special Specifications or guidelines will be borne by Licensee. 
 6.16 Checking – non conformity. 
 6.16.1 Upon delivery of the Licensed Products to the Delivery Point, Licensee shall inspect the Licensed Products and shall notify BIP within a period set forth in the Technical Agreement, by telefax confirmed
by courier, of any damage visible from inspection or of any shortages or non-conformity of the delivered Licensed Products with supporting detailed evidence and documents and their translation in English shall be included. Upon request of BIP,
Licensee shall make available to BIP samples of the Licensed Products which are declared as defective. In case of non conformity to the Specifications of any quantity of the Licensed Products delivered pursuant hereto, BIP shall take back, at its
expense, the quantities concerned and shall replace them promptly after BIP received the relevant notice. 
 6.16.2 Any
dispute between the Parties regarding shortage or damages of any quantity of the Licensed Products delivered hereunder shall be referred to an expert jointly appointed by BIP and Licensee within thirty (30) days from the receipt by BIP of the
notice of claim of Licensee as set forth in the Technical Agreement. 
 6.16.3 BIP shall not replace defective Licensed
Products returned to Licensee by the customers, patients, or authorities, unless the relevant Licensed Product defect is due to (i) Licensed Product manufacturing defaults in so far as the Licensed Product does not meet the Specifications,
(ii) the Licensed Product manufacturing process, or (iii) Licensed Product defaults that occurred during the delivery of the Licensed Products from the manufacturer’s import warehouse to the Delivery Point. 
 6.16.4 Without prejudice to the Party bearing defective Licensed Products replacement costs in accordance with the provisions of
this Section, if BIP so decides, Licensee shall destroy immediately upon written notice, any quantity of defective Licensed Products and provide to BIP the corresponding certificate of destruction hereof. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 40 

 6.17 Failure to Supply. In the event that at any time during the term of the Agreement, BIP
delivers non-conforming lots of the Initial Product, as further defined in the Technical Agreement, three (3) times in any twelve (12) month period (a “Default”), then: 
 (a) Licensee shall give written notice to BIP specifying the occurrence of such Default (and, to the extent BIP anticipates a possible Default, BIP
shall inform Licensee of such possibility as it becomes known to BIP); 
 (b) The JSC shall investigate the cause of the Default.
Thereafter, the Parties shall discuss in good faith through the JSC the appropriate mechanism to cure the Default based on the JSC’s investigation. Such mechanisms for cure may include for example, but without limitation, the establishment by
BIP of a secondary source for the manufacture and supply of Initial Product to Licensee. 
 (c) In addition, where there is
limited supply of conforming Licensed Product, the JSC shall determine the allocation of the available Licensed Product between the Licensors Territory and the Territory, taking into consideration the sales volume of such territories in the previous
6-month period; 
 (d) Following the Parties’ acceptance of an appropriate mechanism to cure the Default, BIP shall use Diligent
Efforts to implement such agreed upon mechanism. 
  

	7.	PAYMENTS 

 7.1 Milestone Payments. In
consideration of the rights granted by and undertakings of Licensors under this Agreement, Licensee shall make the following non-refundable and non-creditable milestone payments: 
 7.1.1 Up-Front Payments. 
 (i) In consideration of the exclusive license granted under Licensed Patents Rights hereunder, Licensee shall owe and pay SCRAS fourteen million two hundred seventy thousand and ninety USD ($14,270,090) on the
Effective Date. 
 (ii) In consideration of the exclusive license granted under Licensed Know-How hereunder, Licensee
shall owe BIP ten million seven hundred sixty six thousand and nine hundred and ten USD ($10,766,910) which shall be paid to SCRAS, on behalf of BIP, on the Effective Date simultaneously with the payment set forth in Section 7.1.1(i) and SCRAS
shall make, and be responsible for, the relevant payment to BIP of its share of such amount. 
 7.1.2 Approval Milestone
Payments. 
 (i) In consideration of the exclusive license granted under Licensed Patents Rights hereunder,
Licensee shall owe SCRAS seventeen million one 

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 41 

 
hundred thousand (17,100,000) Euros and in consideration of the exclusive license granted under Licensed Know-How hereunder, Licensee shall owe BIP
twelve million nine hundred thousand (12,900,000) Euros (the “Approval Milestone Payments”) as indicated in Section 7.1.2(v) below following the obtaining of either (A) the grant of an initial Marketing Authorization
(i) meeting the Target Label or (ii) which does not strictly meet the Target label, but nonetheless provides access to a number of patients (the “MA Population”) which is more than [*]% of the Target Population or
(B) where the criteria set forth in (A)(i) and (A)(ii) are not satisfied by the initial Marketing Authorization, the grant of a Subsequent Marketing Authorization (defined below) that satisfies the criteria set forth in Section 7.1.2(iii)
below. 
 (ii) In the event that Licensors have not obtained a Marketing Authorization the MA Population of which is
more than [*]% of the Target Population, the Approval Milestone Payments shall not be paid and Licensors shall use their Diligent Efforts to obtain a new Marketing Authorization or to extend the initial Marketing Authorization with the view
to meet the Target Label (the “Subsequent Marketing Authorization”) within three (3) years from the date of obtaining of the initial Marketing Authorization (the “Agreed Period”). 
 (iii) Licensee shall pay Licensors the Approval Milestone Payments in accordance with clause (v) below in the event Licensors
obtain a Subsequent Marketing Authorization within the Agreed Period the MA Population of which is more than [*]% of the Target Population. 
 (iv) In case of dispute of the Parties on the determination of the MA Population, such dispute shall be first submitted to the JSC. In case of failure by the JSC to find a solution acceptable to all Parties,
the matter will be referred to resolution by senior management of the Parties as provided for in Section 15.1 and ultimately to the final decision of three (3) experts of international reputation in the endocrinology field, one being
appointed by Licensee within fifteen (15) days following failure by the senior executive to resolve this issue, one by Licensors within fifteen (15) days following failure by the senior executive to resolve this issue and one by the two
first experts within fifteen (15) days following their appointment. In the event one Party fails to appoint an expert, the other Party may appoint such expert. Once appointed, the experts shall provide the Parties with their decision within one
(1) month from the date of the appointment of the third expert and this decision shall be final and binding upon the Parties. The decision of the expert shall also allocate the cost for this expertise resolution among the Parties in a
proportion the experts deems reasonable. 
 (v) The Approval Milestone Payments shall both be paid by Licensee to SCRAS
within thirty (30) days following determination by the Parties as to whether the MA Population is less or above [*] percent ([*]%) or [*] percent ([*]%) of the Target Population and the Parties shall use their
Diligent Efforts to agree on such determination no later than sixty (60) days following the date of the grant of Marketing Authorization or the Subsequent Marketing Authorization. SCRAS shall be responsible for and shall pay the relevant amount
to BIP of its share of such Approval Milestone Payments. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 42 

 7.1.3 Each milestone payment under this Section 7.1 shall be made only once
with respect to the achievement of the applicable milestone events and shall be payable the first time such milestone event is achieved. Milestone payments set forth above shall be due only for the first Licensed Product developed and commercialized
under this Agreement to reach the above stages. 
 7.2 Royalty Payments. 
 7.2.1 Plain Royalty Rate 
 (a) Licensed Patent Rights Rate. In consideration of the rights granted by SCRAS under the Licensed Patent Rights and undertakings of SCRAS under this Agreement, Licensee shall owe SCRAS the following royalties
which shall accrue on a country-by-country basis in the Territory upon the First Commercial Sale of the Licensed Product for the Royalty Term: 
 (i) For annual Net Sales of the Licensed Products for the Territory below $[*] USD : [*]% of Net Sales ; 
 (ii) For annual Net Sales of the Licensed Products for the Territory between $[*] and $[*] USD: [*]% of Net
Sales ; 
 (iii) For annual Net Sales of the Licensed Products for the Territory above $[*] USD: [*]% of
Net Sales. 
 (b) Licensed Know-How Rate. In consideration of the rights granted by BIP under the Licensed Know-How and
undertakings of BIP under this Agreement, Licensee shall owe BIP the following royalties which shall accrue on a country-by-country basis in the Territory upon the First Commercial Sale of the Licensed Product for the Royalty Term: 
 (iv) For annual Net Sales of the Licensed Products for the Territory below $[*] USD: [*]% of Net Sales ; 

(v) For annual Net Sales of the Licensed Products for the Territory between $[*] and $[*] USD: [*]% of Net
Sales ; 
 (vi) For annual Net Sales of the Licensed Products for the Territory above $[*] USD: [*]% of
Net Sales. 
 (c) Licensed Trademark Rate. In consideration of the rights granted by SCRAS under the Licensed Trademark
and undertakings of SCRAS under this Agreement, Licensee shall owe SCRAS a royalty of [*]% which shall accrue on a country-by-country basis in the Territory upon the First Commercial Sale of the Licensed Product for the Royalty Term.

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 43 

 7.2.2 Royalty Reductions. The royalty rates mentioned in Section 7.2.1(a),
(b) and (c) shall be reduced in the following cases, on a country-by-country basis, and the JFC shall determine the mechanism for applying such country-specific reductions due to the fact that annual Net Sales are determined on a total
Territory basis: 
 (a) in the event Market Competition exists in such country and the manufacture, use, or sale of
Licensed Product would infringe a Valid Claim but for the licenses granted under this Agreement, the above royalty rates set forth in section 7.2.1 above will be reduced by [*]%. 
 (b) in the event the manufacture, sale or use of the Licensed Product would infringe no Valid Claim but for the licenses granted
under this Agreement and for so long as no Market Competition Exists, the above royalty rates set forth in section 7.2.1 will be reduced by [*]%. 
 (c) in the event the manufacture, sale or use of the Licensed Product would infringe no Valid Claim but for the licenses granted under this Agreement and Market Competition exists in such country, the plain
royalty rates set forth in section 7.2.1 will be reduced by [*]% and, for the sake of certainty, shall total: 
 (i) For annual Net Sales of the Licensed Products for the Territory below $[*] USD: [*]% of Net Sales in such country; 
 (ii) For annual Net Sales of the Licensed Products for the Territory between $[*] USD and $[*] USD: [*]% of Net Sales in such country; 
 (iii) For annual Net Sales of the Licensed Products for the Territory above $[*] USD: [*]% of Net Sales in such
country. 
 Notwithstanding the foregoing, in the case of subsection (a) above, in event of Market Competition, and where the Valid
Claim still exists but nonetheless Licensee has a good faith belief, based on advise of legal counsel, that enforcing the Valid Claim against third party competitors is not in the best interests of the Parties, or that Licensors or themselves will
not prevail in the enforcement of the Licensed Patent Rights or Licensee has other strategic reasons for recommending that the Parties elect not to enforce the Licensed Patent Rights, then the Parties will confer in good faith to determine an
appropriate reduction to the royalty rate set forth in Section 7.2.2(a). 
 (d) the royalty rates set forth in
this Section 7.2 may be further off-set in accordance with Section 8.2.3(ii). 
 For the purpose of determining whether the manufacture, use or
sale of Licensed Product in any jurisdiction in the Territory would infringe a valid claim if not for the licenses granted herein, any Licensed Product not manufactured within the jurisdiction in which use or sale of that Licensed Product occurs
shall be deemed to have been manufactured in that jurisdiction. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 44 

 7.2.3 Reports; Payment of
Royalties. During the term of the Agreement, Licensee shall furnish to Licensors two quarterly written report for each Calendar Quarter showing for the First Report Licensee’s estimated Net Sales of all Licensed Products sold by Licensee,
its Affiliates or Sub-licensees in the aggregate and on a country-by-country basis during the reporting period; for the Second Report the actual Net Sales of all Licensed Products sold by Licensee, its Affiliates or Sub-licensees in the aggregate
and on a country-by-country basis during the reporting period and the calculation of the royalties and/or other payments payable to Licensors under this Agreement. The First Quarterly reports shall be due on the fifth (5th) day following the close of each Calendar Quarter and will be used as information only by Licensors for accounting
purposes. The Second Quarterly Reports shall be due on the sixtieth (60th) day following the close of each
Calendar Quarter. Royalties or other payments shown to have accrued by each royalty report shall be due and payable on the date such report is due and shall all be paid to SCRAS, who shall solely be responsible for the allocation of the relevant
royalties owed hereunder among SCRAS and BIP. Licensee shall keep complete and accurate records in connection with the sale of Licensed Products hereunder in sufficient detail to permit accurate determination of all figures necessary for calculation
and verification of royalty and other payment obligations set forth in this Section 7. 
 7.2.4 Audits. Upon the
written request of Licensors thirty (30) days in advance, Licensee shall permit an independent certified public accounting firm of an internationally recognized standing and selected by Licensors to have access during normal business hours to
such of the records of Licensee as may be reasonably necessary to verify the accuracy of the reports under Section 7.2.3 provided however that it does not disrupt Licensee’s operation of business. The accounting firm shall disclose to
Licensee and Licensors whether the reports are correct or incorrect, the specific details concerning any discrepancies and such other information that should properly be contained in a royalty report required under this Agreement. 
 If such accounting firm concludes that additional royalties or other amounts were owed, Licensee shall pay the additional royalties or
payments within thirty (30) days of the date Licensors deliver to Licensee such accounting firm’s written report so concluding. In the event such accounting firm concludes that amounts were overpaid by Licensee, Licensors shall repay
Licensee the amount of such overpayment within thirty (30) days of the date Licensors deliver to Licensee such accounting firm’s written report so concluding. The fees charged by such accounting firm shall be paid by Licensors; provided,
however, that if an error in favor of Licensors of more than five (5) percent of the royalties due hereunder for the period being reviewed is discovered, then the fees and expenses of the accounting firm shall be paid by Licensee. 

If such accounting firm concludes that the reports were correct, Licensors shall not be entitled to request any further audit during
the next thirty-six (36) months. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 45 

 Upon the expiration of thirty-six (36) months following the end of any Calendar Year
for which Licensee has made payment in full of all royalties and other amounts payable with respect to such year, and in the absence of negligence or willful misconduct of Licensee or a contrary finding by an accounting firm pursuant to this
Section, such calculation shall be binding and conclusive upon Licensors and Licensee shall be released from any liability or accountability with respect to royalties or other payment for such Calendar Year. 
 7.2.5 Payments; Currencies and Exchange Rate. All royalty payments to SCRAS under this Agreement shall be made in USD. When
calculating Net Sales, Licensee shall convert the amount of invoiced sales in currencies other than USD into USD using the exchange rates as determined by Licensee for the purpose of consolidating its financial statements. All payments related to
Developments Costs (joint development or after Opt-In by a Party) will be made in the currency of the invoicing Party (i.e., the Party being reimbursed). 
 7.2.6 Late Payment. In case of late payment of any payment due hereunder by Licensee (or in case of additional payment due by one Party to the other pursuant to Section 7.2.4), Licensee shall pay to SCRAS
and/or BIP, as the case may be, interest on the unpaid amount until such payment is paid in full, at the average one-month European Interbank Offered Rate (EURIBOR) plus two (2) percent as reported by the European Bank Federation (or a
successor or similar organization) from time to time, calculated on the number of days such a payment is overdue. 
 7.2.7
Tax Withholding. If provision is made in law or regulation of any country in the Territory for withholding of taxes of any type, levies or other charges with respect to any amounts payable by Licensee to SCRAS and BIP pursuant to this Agreement,
Licensee shall promptly pay such tax, levy or charge for and on behalf of SCRAS and/or BIP, as the case may be, to the proper governmental authority and Licensee shall promptly furnish SCRAS and/or BIP, as the case may be, with certificate of taxes
deducted under such withholding tax laws. Licensee shall have the right to offset any such tax, levy or charge actually paid from any payment due to SCRAS and/or BIP, as the case may be, or shall be promptly reimbursed by SCRAS and/or BIP, as the
case may be, if no further payments are due. Licensors and Licensee shall cooperate with each other in obtaining any exemption from or reduced rate of tax available under any applicable law or tax treaty. 
 Licensee and Licensors shall pay for their own account all sales, turnover, income, revenue, value added and other taxes levied on account
of payments accruing or made under this Agreement. All amounts expressed in this Agreement exclude such taxes which were required by law shall be charged at the applicable rate. 
  

	8.	TRADEMARKS AND INTELLECTUAL PROPERTY RIGHTS 

 8.1
Licensed Trademark. 
 8.1.1 The Licensed Product will be marketed in the Territory under the Licensed Trademark.
In specific countries where the use of the Licensed Trademark is not permitted by law or is not appropriate including for reasons relating to language or 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 46 

 
custom, Licensee shall have the possibility to use a different trademark, subject to SCRAS’s prior written approval which shall not be unreasonably
withheld or delayed. SCRAS shall be responsible for securing and for maintaining registrations for the Licensed Trademark in the Territory and shall use reasonable commercial efforts in that regard, provided, however, that SCRAS shall
not be deemed to have breached this Agreement if it is unable to obtain registration of the Licensed Trademark in every country in the Territory. In the event, despite its reasonable commercial efforts, SCRAS is unable to obtain or maintain
registrations for the Licensed Trademark in some country (ies) in the Territory, SCRAS and Licensee shall negotiate in good faith concerning the use of such other trademarks as may be available for marketing the Licensed Product in those countries.

 8.1.2 Enforcement. Licensee and SCRAS shall cooperate with each other and use reasonable efforts to protect the
Licensed Trademark from infringement by third parties. Without limiting the foregoing, each Party shall promptly notify the other Party of any known, threatened or suspected infringement, imitation or unauthorized use of or unfair competition
relating to the Licensed Trademark. SCRAS shall have the first right to determine in its discretion whether to and to what extent to institute, prosecute and/or defend any action or proceedings involving or affecting any rights relating to the
Licensed Trademark. Upon SCRAS’s reasonable request, Licensee shall, at SCRAS’s expense, cooperate with and assist SCRAS in any of SCRAS’s enforcement efforts with respect to the Licensed Trademark. SCRAS shall promptly inform
Licensee if SCRAS elects not to take action against any actual or suspected infringement of the Licensed Trademark, in which case, Licensee, at its own expense, shall then have the right, but not the obligation, to bring or assume control of any
action against the allegedly infringing third party as Licensee determines may be necessary, provided, however, that Licensee shall not enter into any settlement or compromise of any claim relating to the Licensed Trademark without the
prior written consent of SCRAS. In the event that Licensee brings or assumes control of any such action, then SCRAS agrees to, at Licensee’s expense, reasonably assist Licensee in connection therewith. In either case, the Party that initiated
and prosecuted, or maintained the defense of the action shall bear all costs and expenses (including reasonable attorneys’ fees) incurred in connection with the action and shall be entitled to recoup those amounts in the event of recovery, by
settlement or otherwise. The amount of any recovery remaining shall be shared equally by SCRAS and Licensee. 
 8.1.3
Avoidance of Confusion. Licensee and its Affiliates or Sublicensee shall not market, promote, sell and/or distribute anywhere in the Territory any product other than Licensed Product under the Licensed Trademark or any confusingly similar
trademark, and SCRAS and its Affiliates or sublicensee shall not market, promote, sell and/or distribute anywhere in the Licensors Territory any product other than Licensed Product under the Licensed Trademark or any confusingly similar trademark.
Licensee and its Affiliates shall not, directly or indirectly, contest the validity of or SCRAS’s rights in the Licensed Trademark anywhere in the Territory or assist any third party in doing so. In the event that actual confusion should arise,
or either Party reasonably believes that a likelihood of confusion may arise, in connection with SCRAS’ and Licensee’s respective uses of the Licensed Trademark, SCRAS and Licensee will fully cooperate in an effort to eliminate such
confusion and to avoid the possibility of such a likelihood of confusion. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 47 

 8.2 Licensors IP Rights. 
 8.2.1 Securing Patent Protection. SCRAS will take all commercially reasonable actions necessary to file, prosecute and maintain
patent protection for the Licensed Product in the Territory during the term of this Agreement. 
 8.2.2 Third Party
Infringement of Licensors IP Rights. Each of SCRAS or Licensee shall promptly give the other Party notice of any suspected infringement in the Territory of any patent application or patent included in the Licensors IP Rights that comes to such
Party’s attention. SCRAS and Licensee will thereafter consult and cooperate fully to determine a course of action, including, without limitation, the commencement of legal action by SCRAS or Licensee. However, SCRAS shall have the first right
to initiate and prosecute such legal action at its own expense and in the name of SCRAS and/or Licensee, or to control the defense of any declaratory judgment action relating to Licensors IP Rights. SCRAS shall promptly inform Licensee if SCRAS
elects not to exercise such first right, in which case Licensee shall thereafter have the right either to initiate and prosecute such action or to control the defense of such declaratory judgment action in the name of SCRAS and, if necessary,
Licensee, provided, however, that Licensee shall not enter into any settlement or compromise of any claim relating to the Licensors IP Rights licensed hereunder without the prior written consent of SCRAS. If SCRAS elects not to
initiate and prosecute such an infringement or defend a declaratory judgment action in any country in the Territory and Licensee elects to do so, the cost of any agreed-upon course of action, including the costs of any legal action commenced or any
declaratory judgment action defended, shall be borne solely by Licensee. 
 If either SCRAS or Licensee elects to institute a
legal proceeding to enforce Licensors IP Rights against an alleged infringing party, the other Party shall fully cooperate with and supply all assistance reasonably requested by the Party instituting such proceeding, at the expense of the Party
instituting such proceeding. Any recovery or award obtained by either SCRAS or Licensee as a result of any such action or settlement shall be shared as follows: 
 (a) if SCRAS initiated and prosecuted, or maintained the defense of, the action, the amount of any recovery remaining then shall be
retained by SCRAS; and 
 (b) if Licensee initiated and prosecuted, or maintained the defense of, the action, the
amount of any recovery remaining shall be retained by Licensee, except that SCRAS shall receive a portion equivalent to the royalties it would have received in accordance with the terms of this Agreement as if such amount were Net Sales of Licensee.

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 48 

 For any such legal action or defense, in the event that either SCRAS or Licensee is
unable to initiate, prosecute, or defend such action solely in its own name, the other Party will join such action voluntarily and will execute all documents necessary for the Party to prosecute, defend and maintain such action. In connection with
any such action, SCRAS and Licensee will cooperate fully and will provide each other with any information or assistance that either reasonably may request. Any recovery or award obtained by either SCRAS or Licensee as a result of any such action or
settlement shall be shared as follows: 
 (c) the Party that initiated and prosecuted, or maintained the defense of,
the action shall recoup all of its costs and expenses (including reasonable attorneys’ fees) incurred in connection with the action, whether the recovery is by settlement or otherwise; 
 (d) the other Party then shall, to the extent possible, recover its costs and expenses (including reasonable attorneys’ fees)
incurred in connection with the action; 
 (e) if SCRAS initiated and prosecuted, or maintained the defense of, the
action, the amount of any recovery remaining then shall be retained by SCRAS; and 
 (f) if Licensee initiated and
prosecuted, or maintained the defense of, the action, the amount of any recovery remaining shall be retained by Licensee, except that SCRAS shall receive a portion equivalent to the royalties it would have received in accordance with the terms of
this Agreement as if such amount were Net Sales of Licensee. 
 8.2.3 Third Party Intellectual Property. 

(i) In the event that either SCRAS or Licensee becomes aware of any claim or potential claim that the practice by either SCRAS
or Licensee of Licensors IP Rights hereunder infringes the intellectual property rights of any third party, such Party shall promptly notify the other Party. As between SCRAS and Licensee, SCRAS shall have the first right, but not the obligation, to
defend the Parties against any claim by a third party that the Development, use, sale, offer for sale, export or import of Licensed Product in the Territory infringes third party intellectual property rights. Licensee shall have the right to
participate in the defense of such claim but shall not take any position inconsistent with SCRAS’s position on such issues. In the event that SCRAS chooses in its sole discretion not to defend such suit, Licensee shall have the right but not
the obligation to defend such suit. Licensee shall not settle any action pursuant to this Section without SCRAS’s consent, such consent not to be unreasonably withheld. 
 (ii) If Licensee would be prevented from developing, manufacturing using, selling or importing the Licensed Product in any country
of the Territory on the grounds that by doing so Licensee would infringe a Dominating Patent held by a third party in said country and Licensee licenses rights to such Dominating Patent in said country, then [*] percent ([*]%) of any
royalties on Licensed Product sales paid by Licensee to such third party in any Calendar Year in such country with respect to 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 49 

 
such Dominating Patent shall be deducted from any royalty payments payable to SCRAS and/or BIP, as the case may be, by Licensee in such Calendar Year (the
“Royalty Reduction”), provided, however, that (i) Licensors have been informed of the Dominating Patent and has had an opportunity to provide input on any related discussion of whether to license such Dominating
Patent and negotiation of royalty rates; and (ii) subject to the warranties and representations made by Licensors under Section 11.1 of this Agreement, the amount of the Royalty Reduction in any Calendar Year shall not exceed [*]
percent ([*]%) of the royalties (the “Royalty Reduction Cap”) that would have otherwise been payable by Licensee to Licensors for such Calendar Year and for such country. Any amount of the Royalty Reduction which is not
offset against royalty payments due to Licensors (because it exceeds the Royalty Reduction Cap) shall be carried forward to and deducted in subsequent Calendar Years until the expiration date of the term. The Parties shall negotiate in good faith
the consequences of several Dominating Patents, if and when such several Dominating Patents come to the attention of the Parties. 
 8.3
Joint IP Rights. All Know-How arising from Development activities undertaken and funded jointly by the Parties pursuant to Article 4 shall be jointly owned by BIP and the Licensee, regardless of inventorship, but subject to the licenses set
forth in this Agreement. All Patent Rights arising from Development activities undertaken and funded jointly by the Parties pursuant to Article 4 shall be jointly owned by SCRAS and the Licensee, regardless of inventorship, but subject to the
licenses set forth in this Agreement. The allocation of responsibilities and costs between the Parties for filing, prosecution, maintenance and enforcement of such Patent Rights jointly owned by SCRAS and the Licensee shall be decided by a joint
patent committee appointed and overseen by the JSC, consisting of two (2) members from each Party (the “Joint Patent Committee”). The initial members for such Joint Patent Committee are set out in Schedule 13.

 8.4 Patents Solely Owned. 
 8.4.1 Licensee shall have the sole discretion for the filing, prosecution, maintenance and enforcement of Patent Rights that it solely owns, provided that, if any such Patent Rights are subject to a license
grant to Licensors as a result of Licensors’ exercise of its Opt-in rights under Section 4.4.4(ii)(F), then at the time Licensors exercise their Opt-in rights, the Parties shall agree upon reasonable terms under which Licensors shall
participate in the filing, prosecution, maintenance and enforcement of such Patent Rights in Licensors Territory, in a form substantially similar in principle to those set forth in Section 8.2. 
 8.4.2 Licensors shall have the sole discretion for the filing, prosecution, maintenance and enforcement of Patent Rights that they
solely own, provided that, if any such Patent Rights are subject to a license grant to Licensee as a result of Licensee’s exercise of its Opt-in rights under Section 4.4.4(ii)(F), then at the time Licensee exercises its Opt-in rights, the
Parties shall agree upon reasonable terms under which Licensee shall participate in the filing, prosecution, maintenance and enforcement of such Patent Rights in the Territory, in a form substantially similar in principle to those set forth in
Section 8.2. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 50 

	9.	TERM AND TERMINATION 

 9.1 Term. 

9.1.1 Conditions to Closing. This Agreement shall become effective upon the Effective Date, after the Parties have obtained all
consents (including without limitation, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, if any, and all governmental or regulatory consents, approvals or authorizations
required in connection with the valid execution and delivery of this Agreement, the Increlex Agreement and the Equity Transaction Documents and all necessary stockholder consents and approvals), permits and waivers necessary or appropriate for
consummation of any of the transactions contemplated by this Agreement, the Increlex Agreement and the Equity Transaction Documents. 
 9.1.2 Term; Expiration. The term of the Agreement shall commence on its Effective Date and, unless sooner terminated as provided herein, shall continue in full force and effect on a Licensed Product by Licensed Product and
country-by-country basis until the expiration of the Royalty Term with respect to such Licensed Product in such country. Upon expiration of the Royalty Term with respect to a given Licensed Product, in a given country, Licensee shall be granted a
fully paid-up, irrevocable and perpetual non-exclusive license under all Licensors IP Rights with respect such Licensed Product and a fully paid-up, irrevocable and perpetual exclusive license under the Licensed Trademark with respect to such
Licensed Product and its promotional material. 
 9.2 Termination. 
 9.2.1 Either Party may terminate this Agreement, in whole or in part as applicable, effective immediately upon receipt of written
notice to the other Party, under the following circumstances: 
 (a) if the other Party is in material breach or
default with respect to any term or provision hereof and fails to cure the same within thirty (30) days of receipt of written notice of said breach or default; or 
 (b) in the case of safeguard procedure, judicial recovery or judicial liquidation of the other Party, subject to the compliance
with the provisions of articles L. 622-13, L. 631-14 and/or L. 641-10 of the French Commercial Code; or 
 (c) where
the right to terminate the Agreement in whole or in part is specifically provided for herein. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 51 

 9.3 Resulting Obligations. Upon early termination of this Agreement the following shall apply:

 9.3.1 Rights to Licensed Product in the Territory. 
 (a) In the event of termination by Licensors pursuant to Section 9.2.1 with respect to a one or more Licensed Products, all
rights to such Licensed Product(s) shall revert to Licensors free of charge and Licensee shall have no further rights with respect to the Licensed Product. Licensee shall, at Licensors’ election, either (i) resell under its own
responsibility all remaining quantities of unsold Licensed Products during a maximum time period of six (6) months as from termination of this Agreement, at the expiration of which period, Licensee shall, upon request from Licensors,
immediately destroy all unsold quantities of Licensed Products and provide to Licensors the corresponding certificate of destruction hereof, or (ii) immediately return any unsold stock to Licensors or any other third party designated by
Licensors provided said stock is in good saleable condition. All expenses and costs of such return shall be borne by Licensors unless termination of this Agreement occurs as a result of Licensee being in breach of the provisions of this Agreement.
If option (ii) is selected by Licensors, Licensors or the third party designated by Licensors shall repurchase all such returned stock of Licensed Products at the Licensed Products’ Supply Price referred to in Section 6.5 hereunder
provided that they are in good saleable condition and have a remaining shelf life of no less than six (6) months. Should the Licensed Products not be in good saleable condition, Licensee shall destroy all such remaining stock subject to
Licensors’ prior written agreement, and provide to Licensors the corresponding certificate of destruction hereof. 
 (b) In the event of termination by Licensee pursuant to Section 9.2.1, Licensee shall be entitled to the following, at the Licensee’s election: (i) return all unsold Licensed Product and unused Samples to Licensors at
Licensors’ expense and to receive a full refund of the Supply Price paid to Licensors for the Licensed Product and Samples returned by Licensee, or (ii) continue to sell Licensed Product according to the terms of this Agreement until all
inventory is sold or for six (6) months, whichever shall occur first. 
 9.3.2 Licensed Trademark. Except as
provided for in Section 9.3.1 (b), Licensee shall terminate any use of the Licensed Trademark and shall, at SCRAS’s election, either destroy or return to SCRAS at Licensee’s cost all literature, labels, or other materials,
incorporating or bearing same. Licensee shall cooperate with SCRAS and execute any and all documents requested by SCRAS for the purpose of canceling any registered user or other rights with respect to the Licensed Trademark or, at SCRAS ‘s
election, in transferring such rights to SCRAS or its designee. 
 9.3.3 Data. Except as provided for in
Section 9.3.1(b), Licensee shall cease using all information and technical and other data provided by BIP relating to the Licensed Product, and shall, at BIP’s option, return to BIP or destroy all such data having physical form and all
copies thereof, and shall continue to abide by its obligation of confidentiality set forth in Section 9 below. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 52 

 9.3.4 Approvals; IP Rights. Except as provided for in Section 9.3.1(b),
Licensee shall promptly assign or otherwise cause to be transferred to BIP, or BIP’s designee, all Marketing Authorizations or any other government registrations or approvals in the Territory having to do with the Licensed Product that are in
Licensee’s name and shall make no further use of the same and shall allow BIP to cross-reference any INDs, BLAs (or their equivalent in the Territory), clinical data or other submissions filed with any Regulatory Authority in the Territory and
provide BIP with copies of all such documentation. In addition, Licensee shall (i) provide BIP with a copy of Licensee’s preclinical and clinical data, assays and associated materials, and protocols and procedures, and any Know-How
Controlled by Licensee, with respect to such Licensed Product(s) (ii) grant a non-exclusive, sublicensable license to BIP or its designee Affiliate to use, sell, manufacture, offer for sale, import and export in the Territory such Licensed
Products under any Patent Rights and any Know-How owned or Controlled by Licensee as of the effective date of the termination, (iii) grant BIP or its designee Affiliate exclusive rights to use any Licensed Trademarks filed in connection with
Licensed Products, to the extent such Licensed Trademarks are specific to one or more Licensed Products and are not generally associated with any other product of Licensee and do not contain an element of Licensee’s trade name, in each case
solely for purposes of using, selling, offering for sale, importing or exporting such Licensed Products in the Territory. 
 9.4 Survival
of Rights. All of the remedies provided for in Section 9.3 are in addition to the other rights and remedies available to the Parties on termination and Section 9.3 is not intended to limit any of those rights or remedies. 

 

	10.	CONFIDENTIALITY 

 10.1 All information,
whether in oral, written, graphic or electronic form, disclosed by Licensors or Licensee (“Disclosing Party”) to the other Party and/or any of such other Party’s subsidiaries, subdivisions, parent companies, affiliates agents or
consultants (“Receiving Party”), and all notes, documents and materials prepared by or for either Party which reflect, interpret, evaluate, include or are derived therefrom, shall be deemed to be “Confidential
Information.” In particular, Confidential Information shall include, without limitation, any trade secret, proprietary information, invention, research and development work, work-in-process, technology, technique, know-how, design,
specification, program, unpublished data, procedure (including operating procedures), computer software, data base or programming, idea, sample, strategy, budget, projection, development, process, formulation, method, guideline, policy, proposal,
contract, test data or data file, or any engineering, manufacturing, marketing, servicing, financing, pricing, cost, profit, personnel or salary structure/compensation information relating to the past, present or future operations, products,
services, technology, sales, suppliers, clients, customers, employees, investigators, investors or business of Disclosing Party. In addition, “Confidential Information” includes any trade secrets, data (technical or non-technical) or
confidential information relating to the past, present or future operations, organization, business, projects or finances of any third party to which Disclosing Party owes a duty of confidentiality including, without limitation, the mere fact that
Disclosing Party is or may be working with or for any client. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 53 

 10.2 Subject to the right for SCRAS and BIP to share confidential information as between
themselves, Receiving Party shall not use or disclose such Confidential Information to others (except its employees, Affiliates and sub-licensees who reasonably require same for the purposes hereof and who are bound to it by a like obligation as to
confidentiality except as required by law) without the express written permission of Disclosing Party, except for Confidential Information that (i) can be demonstrated by written records to be known to Receiving Party from a source other than
Disclosing Party at the time of receipt; or (ii) was subsequently otherwise legally acquired by Receiving Party from a third party having an independent right to disclose the information; or (iii) is now or later becomes publicly known
without breach of this Agreement by Receiving Party or any Party that received such Confidential Information from Receiving Party. 
 10.3
Legal Requirements. Either Party may disclose the other Party’s Confidential Information to the extent such disclosure is required by law, regulations (including without limitation the rules and regulations promulgated by the SEC) and valid
court orders, provided that such Party gives the other Party reasonable notice of such disclosure and uses reasonable efforts to obtain confidential treatment or a protective order for such information. 
 10.4 Other Permitted Disclosure. Except as otherwise expressly provided herein, to the extent reasonably necessary to carry on the activities
contemplated in this Agreement, each Party shall be permitted to (a) disclose or grant use of Confidential Information received under this Agreement to any of its permitted sublicensees, agents, consultants, clinical investigators,
collaborators or contractors, under confidentiality and non-use obligations at least as stringent as those set forth in this Article 10; (b) disclose Confidential Information received under this Agreement to actual or potential professional
investors, acquirers, merger or other business partners or retained professional advisors (e.g. attorneys, accountants and investment bankers), under confidentiality and non-use obligations at least as stringent as those set forth in this Article
10; and (c) to a Regulatory Authority to the extent necessary for obtaining Marketing Authorization for a Licensed Product. 
 10.5
Publications. In the event either Party wishes to publish or orally deliver a scientific article or speech relating to the Development of a Licensed Product, such Party shall submit to the other Party a draft of each such proposed oral
disclosure or written publication at least thirty (30) days prior to the anticipated oral disclosure or the submission of the written publication. The other Party shall review each such proposed oral disclosure or written publication in order
to avoid the unauthorized disclosure of such Party’s Confidential Information and to preserve the patentability of inventions arising from this Agreement. As soon as reasonably possible, but in no event more than thirty (30) days after
receipt of an advance copy of a publishing Party’s proposed oral disclosure or written publication, the reviewing Party shall inform the publishing Party if the proposed oral disclosure or written publication contains any of the reviewing
Party’s Confidential Information or could be expected to have a material adverse effect on any Patent Rights of the reviewing Party. If so requested by the reviewing Party, the publishing Party shall amend any proposed oral disclosure or
written publication to the 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 54 

 
extent necessary to protect the Confidential Information of the reviewing Party of which the publishing Party is made aware by the reviewing Party and, if so
requested by the reviewing Party, shall delay such proposed oral disclosure or written publication for a reasonable period of time to permit the timely preparation of a patent application by the reviewing Party. 
 10.6 Press Release. In general, and except where required by law or regulation, no public announcement or other disclosure by the Parties
concerning the existence of or terms of this Agreement shall be made, either directly or indirectly, by either Party to this Agreement, without first obtaining the written approval of the other Party and agreement upon the nature and text of such
announcement or disclosure, such consent not to be unreasonably withheld. The Parties shall make a joint public announcement in English of the execution of this Agreement in such form separately agreed upon between the Parties on or after the
Effective Date. Licensors shall be permitted to make a public announcement in French or such other language as they desire of the execution of this Agreement similar to the English press release. After the initial press release concerning this
Agreement, if either Party desires to make an additional press release concerning any additional material terms of this Agreement, it shall inform the other Party in reasonably sufficient time prior to public release, and shall provide the other
Party with a written copy thereof for review. A Party commenting on such a proposed press release shall provide its comments, if any, within three (3) business days after receiving the press release for review. Each Party agrees that it shall
cooperate fully with the other with respect to all disclosures regarding this Agreement to any stock market, governmental or regulatory agencies, including requests for confidential treatment of proprietary information of either Party included in
any such disclosure. Where required by law or by the regulations of the applicable securities exchange upon which such Party may be listed, each Party shall have the right to make a press release announcing the achievement of each milestone under
this Agreement as it is achieved, and the achievements of Regulatory Approvals in the Territory as they occur, subject only to the review procedure set forth in the preceding sentence. Neither Party shall be required to seek the permission of the
other Party to repeat any information regarding the terms of this Agreement that has already been publicly disclosed by such Party, or by the other Party, in accordance with this Section 10.6. 
  

	11.	REPRESENTATIONS AND WARRANTIES 

 11.1
Representations and Warranties of SCRAS. SCRAS makes the following covenants, representations and warranties to Licensee, as of the Execution Date, and does so in full understanding and acknowledgement that Licensee is relying on the said
representations and warranties in concluding the present Agreement: 
 11.1.1 Status. SCRAS is a corporation organized
and existing under the laws of France. No action has been taken by the directors, officers or shareholders of SCRAS to dissolve SCRAS. SCRAS has the corporate power and authority to enter into the present Agreement and to perform all its obligations
hereunder. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 55 

 11.1.2 All Necessary Proceedings. SCRAS has taken all necessary corporate actions
and proceedings to enable it to enter into the present Agreement. 
 11.1.3 No Other Agreements for the Licensed
Product. SCRAS has not made any written or oral agreement or undertaking with any third party regarding the rights to sell the Licensed Product in the Territory. 
 11.1.4 No Violation and Consent. SCRAS warrants that the execution, delivery and performance of this Agreement by it (a) does
not and will not violate or conflict with any provision of law or any provision of its articles of incorporation or by-laws; and (b) does not and will not, with or without the passage of time or the giving of notice, result in the breach of, or
constitute a default, cause the acceleration of performance, or require any consent under, or result in the creation of any lien, charge or encumbrance upon any of its property or assets pursuant to any material instrument or agreement to which it
is a Party or by which it or its properties may be bound or affected. 
 11.1.5 Non-infringement. SCRAS represents and
warrants to the best of its knowledge, as of the Execution Date, (i) that there are no outstanding claims or allegations that the Licensed Product and/or the Licensed Trademark infringe upon any rights of a third party in the Territory and
(b) that the Licensed Product and the Licensed Trademark do not infringe upon any rights of a third party in the Territory. 
 11.1.6 Tulane License. SCRAS represents and warrants that as of the Execution Date, the license agreement between SCRAS’ Affiliate “Biomeasure” and Tulane University of New Orleans (Louisiana), dated June 21,
1990, with respect to somatostatin octapeptide (“Tulane License”) is in full force and in effect in accordance with its terms, (ii) Licensors or its Affiliates are not in default or breach in any material respect of the Tulane
License, (iii) to Licensors’ knowledge, there is no cause for early termination of the Tulane License, and (iv) the terms under this Agreement are not in conflict with the terms in the Tulane License. Licensors shall and shall cause
their Affiliates to (i) comply with and observe in all material respects its obligations under the Tulane License and (ii) not terminate or otherwise modify any terms or conditions of the Tulane License in any manner that would materially
adversely affect Licensee’s rights under this Agreement without the prior written consent of Licensee. 
 11.2 Representations and
Warranties of BIP. BIP makes the following covenants, representations and warranties to Licensee, as of the Execution Date, and does so in full understanding and acknowledgement that Licensee is relying on the said representations and warranties
in concluding the present Agreement: 
 11.2.1 Status. BIP is a corporation organized and existing under the laws of
France. No action has been taken by the directors, officers or shareholders of BIP to dissolve BIP. BIP has the corporate power and authority to enter into the present Agreement and to perform all its obligations hereunder. 
 11.2.2 All Necessary Proceedings. BIP has taken all necessary corporate actions and proceedings to enable it to enter into the
present Agreement. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 56 

 11.2.3 No Other Agreements for the Licensed Product. BIP has not made any written
or oral agreement or undertaking with any third party regarding the rights to sell the Licensed Product in the Territory. 
 11.2.4 No Violation and Consent. BIP warrants that the execution, delivery and performance of this Agreement by it (a) does not and will not violate or conflict with any provision of law or any provision of its articles of
incorporation or by-laws; and (b) does not and will not, with or without the passage of time or the giving of notice, result in the breach of, or constitute a default, cause the acceleration of performance, or require any consent under, or
result in the creation of any lien, charge or encumbrance upon any of its property or assets pursuant to any material instrument or agreement to which it is a Party or by which it or its properties may be bound or affected. 
 11.2.5 Non-infringement. BIP represents and warrants to the best of its knowledge, as of the Execution Date, (i) that there
are no outstanding claims or allegations that the Licensed Product infringes upon any rights of a third party in the Territory and (b) that the Licensed Product does not infringe upon any rights of a third party in the Territory. 
 11.3 Representations and Warranties of Licensee. Licensee makes the following covenants, representations and warranties to Licensors, as of the
Execution Date, and does so in full understanding and acknowledgement that Licensors are relying on the said representations and warranties in entering into the present Agreement: 
 11.3.1 Status. Licensee is a corporation organized and existing under the laws of State of Delaware, United States of America. No
action has been taken by the directors, officers or shareholders of Licensee to dissolve Licensee. Licensee has the corporate power and authority to enter into the present Agreement and to perform all its obligations hereunder. 
 11.3.2 All Necessary Proceedings. Licensee has taken all necessary corporate actions and proceedings to enable it to enter into the
present Agreement. 
 11.3.3 No Violation. Licensee warrants that the execution, delivery and performance of this
Agreement by it (a) does not and will not violate or conflict with any provision of law or any provision of its articles of incorporation or by-laws; and (b) does not and will not, with or without the passage of time or the giving of
notice, result in the breach of, or constitute a default, cause the acceleration of performance, or require any consent under, or result in the creation of any lien, charge or encumbrance upon any of its property or assets pursuant to any material
instrument or agreement to which it is a Party or by which it or its properties may be bound or affected. 
 11.4 THE WARRANTIES SET
OUT ABOVE AND IN SECTIONS 2.4.2 AND 6.15.1 ARE THE ONLY WARRANTIES GIVEN BY EITHER PARTY AND ARE MADE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. THERE IS NO OTHER CONDITION OR WARRANTY RELATING TO PRODUCT MERCHANTABILITY OR FIT FOR ANY
PARTICULAR PURPOSE, ALL OF WHICH ARE HEREBY EXCLUDED AND DISCLAIMED. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 57 

	12.	INDEMNIFICATION 

 12.1 Indemnity. For
purposes of this Section, “Licensee Indemnified Parties” refers to Licensee, its Affiliates and the officers, directors, employees, shareholders, agents and successors and assigns of Licensee and its Affiliates, and
“Licensors Indemnified Parties” refers to Licensors, their Affiliates and officers, directors, employees, shareholders, agents and successors and assigns of Licensors and their Affiliates. 
 12.1.1 Indemnification by Licensors. Licensors shall jointly and severally defend, indemnify and hold harmless to the fullest
extent permitted by law the Licensee Indemnified Parties and each of them, from and against any and all losses, claims, liabilities, demands, actions, proceedings, judgments of any and all types, including, without limitation, reasonable fees of
attorneys, accountants and other experts (collectively, “Losses”), incurred by Licensee Indemnified Parties insofar as they arise out of or are alleged or claimed to arise out of (i) any activities conducted by Licensors in
relation with (i) the Licensed Product including development and commercialization activities; (ii) Licensors’ enforcement of Licensed Patent Rights in any action against a third party that is joined by Licensee in compliance with
Section 8.2.2; and (ii) any material breach by Licensors of their obligations under this Agreement, provided, however, that: (a) Licensors shall not be obligated under this Section 12.1.1 to the extent that the
Losses resulted from the negligence or willful misconduct of Licensee, Licensee’s Affiliates, Sub-licensees or Contractors; and (b) Licensee shall have the right to participate in the defense of any such claim, complaint, suit, proceeding
or cause of action referred to in this Section 12.1.1 utilizing attorneys of its choice, at its own expense, provided, however, that Licensors shall have full authority and control to handle any such claim, complaint, suit,
proceeding or cause of action, including any settlement or other disposition thereof, for which Licensee seeks indemnification under this Section 12.1.1. 
 12.1.2 Indemnification by Licensee. Licensee shall defend, indemnify and hold harmless the Licensors Indemnified Parties and each
of them to the fullest extent permitted by law from and against any and all Losses incurred by Licensors Indemnified Parties insofar as they arise out of or are alleged or claimed to arise out of (i) any activities conducted by Licensee in
connection with the Licensed Product, including development and commercialization activities; and (ii) any material breach by Licensee of its obligations under this Agreement; provided, however, that; (a) Licensee shall not
be obligated under this Section 12.1.2 to the extent that the Losses resulted from the negligence or willful misconduct of Licensors or Licensors’ Affiliates or contractors; and (b) Licensors shall have the right to participate in the
defense of any such claim, complaint, suit, proceeding or cause of action referred to in this Section 12.1.2 utilizing attorneys of its choice, at its own expense, provided, however, that Licensee shall have full authority and control to handle
any such claim, complaint, suit, proceeding or cause of action, including any settlement or other disposition thereof, for which Licensors seek indemnification under this Section 12.1.2. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 58 

 12.1.3 Notwithstanding the provisions of Sections 12.1.1 and 12.1.2, Licensee and
Licensors agree and understand that, in the event of a claim, complaint, suit, proceeding or cause of action brought against one Party containing allegations of liability based on activities for which such Party was responsible, such Party shall
control and bear financial responsibility for its own defense; unless the other Party agrees to control and bear financial responsibility of such defense. 
 12.2 Settlement of Indemnified Claims. The indemnifying Party under Section 12.1.1 or 12.1.2, as applicable (the “Indemnifying Party”), shall have the sole authority to settle any claim
against the other Party (the “Indemnified Party”) pursuant to Sections 12.1.1 or 12.1.2 (the “Indemnified Claim”) without the consent of the other Party, provided, however, that an Indemnifying Party
shall not, without the written consent of the other Party, as part of any settlement or compromise (i) admit to liability on the part of the other Party; (ii) agree to an injunction against the other Party; or (iii) settle any matter
in a manner that separately apportions fault to the other Party. 
 12.3 Indemnification Procedure. Each Party shall promptly notify
the other Parties in writing of any claim, suit, proceeding, demand or assessment it believes is an Indemnified Claim. Concurrent with the provision of notice pursuant to this Section 12.3, the Indemnified Party shall provide to the other
Parties copies of any complaint, summons, praecipe, subpoena or other court filings related to such claim. Failure to provide prompt notice shall not relieve any Party of the duty to defend or indemnify unless such failure materially prejudices the
defense of any matter. 
 Should the Indemnifying Party dispute that any claim or portion of a claim (“Disputed Claim”) of
which it receives notice pursuant to this Section 12.3, is an Indemnified Claim, it shall so notify the Indemnified Party providing written notice in sufficient time to permit such Indemnified Party to retain counsel and timely appear, answer
and/or move in any such action. In such event, such Indemnified Party shall defend against such claim until the dispute regarding whether such claim is an Indemnified Claim has been resolved; provided, however, that an Indemnified
Party shall not settle any claim which it contends is an Indemnified Claim without providing the Indemnifying Party ten (10) working days’ notice prior to any such settlement and an opportunity to assume the defense and indemnification of
such claim pursuant to this Agreement. If it is determined that a Disputed Claim is subject to indemnification, in whole or in part, the Indemnifying Party will reimburse the reasonable costs and expenses, including attorneys’ fees, of the
Indemnified Party. 
 12.4 Insurance. Licensors and Licensee shall maintain, during the term of this Agreement, Commercial General
Liability Insurance, (including Products Liability, Contractual Liability, Bodily Injury, Property Damage and Personal Injury) to cover its indemnification obligations under this Article 12. During the term of this Agreement, each Party shall not
permit such insurance to be reduced, expired or canceled without reasonable prior written notice to the other Party. Upon request, each Party shall provide 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 59 

 
certificates of insurance to the other Party evidencing the coverage specified herein. Except as expressly stated herein, a Party’s liability to the
other is in no way limited to the extent of the Party’s insurance coverage. In the event of duplicate coverage, the insurance policy of the Party whose fault causes the need for reimbursement under an insurance policy shall be primary and the
other Party’s excess and non-contributing. 
 12.5 Limitation of Liability. EXCEPT FOR ANY WILLFUL BREACH BY EITHER PARTY OF ITS
REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS UNDER SECTIONS 11.1, 11.2 AND 11.3, OR FOR DAMAGES ACTUALLY PAID BY A PARTY TO A THIRD PARTY PURSUANT TO A THIRD-PARTY CLAIM, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY OF ITS
AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS
AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

	13.	FORCE MAJEURE 

 No Party shall be liable for any
delay or default in such Party’s performance hereunder if such default or delay is caused by events beyond such Party’s control including, but not limited to, acts of God, war or insurrection, civil unrest, disease or calamity affecting
the raw materials or equipment used in the production of Licensed Product, earthquake, fire, flood or storm, labor disturbances or epidemic. An event of Force Majeure shall have no effect on Licensee’s obligation to pay for Licensed Product
already delivered as required by this Agreement. 
 In the event that a Party is forced to rely on this Section due to an event of Force
Majeure, the Parties agree that, after the event of Force Majeure has ended, they will meet to discuss any issues with the Agreement resulting from the Force Majeure and that the Parties will negotiate in good faith to resolve any such issues.
Should an event of Force Majeure continue for more than six (6) months, the Party not relying on this Section shall have the right to terminate this Agreement by giving thirty (30) days written notice to the other Party of its intent to
terminate. 
  

	14.	SUCCESSORS IN INTEREST 

 14.1 No Party may
assign this Agreement or any rights hereunder or delegate the performance of any duties hereunder without the prior written approval of the other Parties, which approval shall not be unreasonably delayed or withheld; provided, however, that without
such consent a Party may assign this Agreement to an Affiliate or in connection with the transfer or sale of all or substantially all of its assets, stock or business, or its merger, consolidation or combination with or into another entity or
acquisition of another entity. Subject to the foregoing, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assignees. 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 60 

 14.2 Notwithstanding Section 14.1, in the event (i) that this Agreement is transferred
or sold to, in connection with the transfer or sale of all or substantially all of Licensee’s assets, stock or business, a third party or (ii) that Licensee is acquired by, or merges with and into, a third party, Licensors shall have the
right to terminate this Agreement as provided herein. Where such acquisition or change of control transaction is with a Competing Entity (as defined below), Licensors shall have three (3) months following the announcement of such transaction to
give written notice to Licensee of its intent to terminate the Agreement, such termination to be effective sixty (60) days after receipt of notice of termination, and the provisions of Section 9.3 shall apply and Licensors shall owe no
compensation to Licensee as a result of such termination. Where such acquisition or change of control transaction is not with a Competing Entity, Licensors shall have three (3) months following the announcement of such transaction to give
written notice to Licensee of its intent to terminate the Agreement, such termination to be effective sixty (60) days after receipt of notice of termination, provided that such termination is subject to the payment by Licensors of the fair
market value of the Licensed Products to be reverted to Licensors in such instance, as agreed in writing between the Parties within such sixty (60) days period. The Parties shall exchange their proposals regarding such valuation in writing and
in the event the Parties do not agree on such fair market value within the first forty-five (45) days of such sixty (60) day period, the matter shall be referred to the final decision of three (3) experts of international reputation
in the field of accounting or merchant banking with expertise in the pharmaceutical industry, one being appointed by Licensee within fifteen (15) days following failure of the parties to agree, one by Licensors within fifteen (15) days
following failure of the parties to agree and one by the two first experts within fifteen (15) days following their appointment. In the event one Party fails to appoint an expert, the other Party may appoint such expert. Once appointed, the
experts shall provide the Parties with their decision within one (1) month from the date of the appointment of the third expert and this decision shall be final and binding upon the Parties. The expert decision shall be one or the other of the
latter of the written proposals exchanged by each Party with a view to agree on such fair market value. Licensors shall make such payment to Licensee, as agreed by the Parties or as decided by the experts, within fifteen (15) days following
such agreement or decision. The decision of the expert shall also allocate the cost for this resolution by the panel of experts among the Parties in a proportion the experts deem reasonable. For the purpose of this Section 14.1 “Competing
Entity shall mean a company that, at the time of change of control, markets one or more pharmaceutical products in the Field and in the U.S. and/or E.U. which are material competitors to any of the pharmaceutical products (including but not limited
to the Licensed Product) marketed by Licensors in such territories. 
  

	15.	DISPUTE RESOLUTION 

 Any dispute, controversy or
claim arising out of or relating to this Agreement, or the breach or termination thereof, shall be settled as follows: 
 15.1
Reference to Executives. In the event of a significant controversy, claim, or dispute arising out of or relating to this Agreement or any significant breach 

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 61 

 
thereof (hereinafter collectively referred to as a “Dispute”), the Parties agree that the Dispute shall be described in writing by one or all of
the Parties and copies of the description shall be sent to the General Counsel of Licensee and to the General Counsel of SCRAS. These executives will then have fifteen (15) days from receipt of such Dispute description to attempt in good faith
to resolve the Dispute. In the event that the Dispute is not resolved within this fifteen (15) day time period, then either Party can proceed to arbitration of the Dispute, as described in Section 15.2. 
 15.2 Arbitration. Only in the event that a Dispute is not resolved through reference to executives, as provided above, may the Parties
submit the Dispute to arbitration under the Rules of Arbitration of the International Chamber of Commerce. The Arbitral Tribunal shall consist of three (3) arbitrators. The place of arbitration shall be New York, New York and the arbitration
proceedings shall be held in English. The award shall be final and judgment upon such an award may be entered in any competent court or application may be made to any competent court for juridical acceptance of such an award and order of
enforcement. 
 15.3 Governing Law. In the event that a Dispute is not resolved though mediation, as provided above, the laws
of France shall apply to any arbitration or litigation initiated under this Agreement (regardless of its or any other jurisdiction’s choice of law principles). 
 15.4 Restraining Order. The dispute resolution procedures set forth herein shall not limit a court from granting a temporary restraining order or a preliminary injunction in order to preserve the status
quo of the Parties pending arbitration or to protect a Party’s trademark or confidential or proprietary information. Further, the arbitrator shall have power to enter such orders by way of interim award, and such orders shall be enforceable in
court. 
  

	16.	NOTICE 

 Any notice required or permitted to be
given hereunder shall be deemed sufficient if sent by facsimile letter or overnight courier, or delivered by hand to Licensors or Licensee at the respective addresses set forth below or at such other address as either Party hereto may designate. If
sent by facsimile letter, notice shall be deemed given when the transmission is completed if the sender has a confirmed transmission report. If a confirmed transmission report does not exist, then the notice will be deemed given when the notice is
actually received by the person to whom it is sent. If delivered by overnight courier, notice shall be deemed given when it has been signed for. If delivered by hand, notice shall be deemed given when received. 
 All notices to Licensors shall be addressed as follows: 
 SCRAS 
 42 rue du Docteur BlancheF 
 75016 Paris 
 France 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 62 

 Attention: President 
 with a copy to: 
 SCRAS c/o Ipsen 
 24 rue Erlanger, F 
 75016 Paris 

France 
 Attention: General Counsel

 All notices to Licensee shall be addressed as follows: 
 Tercica, Inc. 
 2000 Sierra Point Parkway,
Suite 400 
 Brisbane, California 94005 USA 
 Attention: General Counsel 
 with a copy, which shall not serve as notice, to: 
 Cooley Godward LLP 
 Five Palo Alto Square

 3000 El Camino Real 
 Palo Alto

 California 94306 
 USA

 Attention: Barbara A. Kosacz, Esq. 
  

	17.	SURVIVAL 

 17.1 The provisions of
Section 2.4.2 (but only with respect to the first sentence of 2.4.2 as it pertains to warranty), the last paragraph of Section 5.7 (promotional materials), Section 6.15.1 (but only insofar as it pertains to a warranty) and
Section 8.3 (Joint IP Rights), Section 9.1.2 (Term; expiration), Section 9.3 (Resulting Obligations), Section 9.4 (Survival of Rights), Article 10 (Confidentiality), Article 11 (Representations and Warranties), Article 12
(Indemnification), Article 15 (Dispute Resolution) and this Article 17 shall survive expiration or termination of this Agreement. 
 17.2 Without prejudice to the above: 
 (a) any amounts payable by a Party under this Agreement
prior to termination or expiration of the Agreement shall survive such termination or expiration; and 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 63 

 (b) in relation only to any outstanding sales at the date of expiration or termination
that have not yet been accounted for, Section 5.6 (Sales Reports and Records) shall survive termination or expiration of this Agreement. 
 (c) in relation only to ongoing sales for a six month period following termination pursuant to Section 9.3.1(a), Section 6.11 (Regulatory Compliance) and Section 8.1.1 (Licensed Trade Mark) shall
survive termination of this Agreement for the six month period only. 
  

	18.	ADDITIONAL TERMS 

 18.1 Entire Agreement.
This Agreement, together with the Schedules attached hereto, constitutes the entire understanding between the Parties with respect to the Licensed Product, and supersedes and replaces all previous negotiations, understandings, representations,
writings, and contract provisions and rights relating to the subject matter hereof. The Parties agree that all supply and distribution of the Licensed Product hereunder shall be subject to and governed by the terms and provisions set forth herein,
and none of the terms and conditions contained on any purchase or order form, invoice, or other writing, shall change the provisions of this Agreement unless it is signed and delivered by all Parties and it clearly indicates that the Parties intend
to vary the terms hereof. 
 18.2 Amendments; No Waiver. No provision of this Agreement may be amended, revoked or waived
except by writing signed and delivered by an authorized officer of each Party. Any waiver on the part of either Party of any breach or any right or interest hereunder shall not imply the waiver of any subsequent breach or waiver of any other right
or interest. 
 18.3 Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, each of which shall remain in full force and effect. 
 18.4
Headings. The descriptive headings are inserted for convenience of reference only and are not intended to be part of or to affect the meaning of or interpretation of this Agreement. 
 18.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
 Signature Page to Follow 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 64 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their duly
authorized representatives on the dates set forth below to be effective as of the Effective Date. 
  

									
	Tercica, Inc.	 		 	Beaufour Ipsen Pharma
					
	By:	 	/s/ John A. Scarlett, M.D.	 		 	By:	 	/s/ Claire Giraut
	Date:	 		 		 	Date: 	 	
			
		 		 	SCRAS
				
		 		 	By:	 	/s/ Claire Giraut
		 		 		 	Date:	 	

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 65 

 Schedule 1 
 Licensed Patent Rights 
 (Section 1.41) 
 [*] 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
 1 

 Schedule 2 
 Specification for Initial Product 
 (Sections 1.32 and 1.74) 
 [*] 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Schedule 3 
 Licensed Trade Marks 
 (Section 1.43) 
  

																	
	 Trademark
	  	Filing type	  	Current
Status	  	Filing date	  	Filing number	  	Registration
date	  	Registration
number	  	Owner	  	Classes
	AUTOGEL	  	National filing	  	Pending	  	13/JUL/1998	  	884208	  		  		  	S.C.R.A.S.	  	03,05
	SOMATULINE	  	National filing	  	Registered	  	29/MAY/1997	  	846541	  	19/OCT/1999	  	518212	  	S.C.R.A.S.	  	05
	AUTOGEL	  	National filing	  	Registered	  	17/JUL/1998	  	339654	  	30/NOV/1998	  	594892	  	S.C.R.A.S.	  	03
	AUTOGEL	  	National filing	  	Registered	  	14/JUL/1998	  	339655	  	30/NOV/1998	  	594893	  	S.C.R.A.S.	  	05
	SOMATULINE	  	National filing	  	Registered	  	06/MAR/1997	  	289067	  	31/MAR/1997	  	545.682	  	S.C.R.A.S.	  	05
	AUTOGEL	  	National filing	  	Registered	  	10/JUL/1998	  	75/516619	  	18/APR/2000	  	2342439	  	S.C.R.A.S.	  	03,05
	SOMATULINE	  	National filing	  	Registered	  	03/JUN/1994	  	74/532825	  	19/OCT/1999	  	2286865	  	S.C.R.A.S.	  	05
	SOMATULINE	  	National filing	  	Registered	  	31/AUG/1999	  	75/789007	  	01/JAN/2002	  	2524021	  	S.C.R.A.S.	  	05
	SOMATULINE 	  	National filing	  		  	11/DEC/2003	  	78/339481	  		  		  	S.C.R.A.S.	  	05
	 AUTOGEL
	  		  	Pending	  		  		  		  		  		  	

  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Schedule 4 
 Target Label 
 (Section 1.78) 
 [*] 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Schedule 5 
 [Intentionally Left Blank] 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Schedule 6 
 Guidelines for Initial Development Plan 
 (Section 4.3.1) 
 1. Study 727 with Pegvisamant 
 2. US – NET 
  

 [*]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Schedule 7 
 Monthly Sales Report Template 
 (Section 5.6.1) 
  

																	
	 Countries
	  	 This Year
	  	 LastYear

	  	 Current
Month
	  	 	  	 Year to date
	  	 	  	 Current
Month
	  	 	  	 Year to date
	  	 
	  	 Volume (units
sold)
	  	 Value (in
USD)
	  	 Volume (units
sold)
	  	 Value (in USD)
	  	 Volume
(units sold)
	  	 Value (in
USD)
	  	 Volume
(units sold)
	  	 Value (in
USD)

	 Country A
	  		  		  		  		  		  		  		  	
	 Country B
	  		  		  		  		  		  		  		  	
	 Country C
	  		  		  		  		  		  		  		  	
	 Country D
	  		  		  		  		  		  		  		  	
	 .....
	  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
	 .....
	  		  		  		  		  		  		  		  	
	 Total for Territory
	  		  		  		  		  		  		  		  	

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 8 
 Supply Price 
 (Section 6.5) 
 Somatuline Autogel 60 : [*] Euros 
 Somatuline Autogel 90 : [*] Euros 
 Somatuline Autogel 120 : [*] Euros 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 9 
 Minimum Quantities per order for Licensed Product 
 (Section 6.6) 
 Somatuline Autogel 60 mg : [*] units 
 Somatuline Autogel 90 mg :
[*] units 
 Somatuline Autogel 120 mg : [*] units 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 10 
 Form of the 18 Month Rolling Order Forecast 
 (Section 6.7.1) 
  

																																									
	 Country
	  	 Product
Name
	  	 SKU
Number
	  	 Monthly Sales Forecast over 18
months

	  	  	  	 Month
1
	  	 Month
2
	  	 Month
3
	  	 Month
4
	  	 Month
5
	  	 Month
6
	  	 Month
7
	  	 Month
8
	  	 Month
9
	  	 Month
10
	  	 Month
11
	  	 Month
12
	  	 Month
13
	  	 Month
14
	  	 Month
15
	  	 Month
16
	  	 Month
17
	  	 Month
18

		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	

 + Once per year : Annual Forecast over a 4 year horizon 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 11 
 Licensors On-going Development 
 (Section 1.50) 
 [*] 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 12 
 JSC – Initial Representatives 
 (Section 3.1.1) 
 From Tercica: 
 [*] 
 From Ipsen: 
 [*] 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 13 
 Joint Patent Committee Members 
 (Section 8.3) 
 From Tercica: 
 [*] 
 From Ipsen: 
 [*] 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.Executive Employment Agreement

 Exhibit 10.47 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 THIS EXECUTIVE EMPLOYMENT AGREEMENT
(“Agreement”) is made and entered into as of the 22nd day of May, 2006, by and between SEATTLE
GENETICS, INC., a Delaware corporation (“Company”), and Pamela A. Trail (“Executive”). 
  
 RECITALS: 
  
 A. The Company desires that Executive perform her services as Chief Scientific Officer of the Company, having been duly appointed to such position
by the Board of Directors of the Company. 
  
 B. Executive
desires to continue in such engagement. 
  
 C. This
Agreement contains other provisions applicable to the employment of Executive by the Company. 
  
 In consideration of the above Recitals and the provisions of this Agreement, the Company and Executive agree as follows: 
  
 I. DUTIES 
  
 1.1 Title and Responsibilities. Executive shall serve as Chief Scientific Officer (“CSO”) of the Company, which title may be
changed at any time in the sole discretion of the Company. Executive’s responsibilities and duties shall include those inherent in Executive’s position with the Company and shall further include such other managerial responsibilities and
executive duties consistent with such position as may be assigned to Executive from time to time by the Chief Executive Officer of the Company. Executive shall devote her best efforts and full business time to the business and interests of the
Company. During the term of Executive’s employment with the Company, Executive may serve on the board of directors of up to two (2) other companies, manage personal investments, and engage in civic and charitable activities, provided that
such activities shall not represent a conflict of interest with the Company and do not materially detract from fulfilling Executive’s responsibilities and duties to the Company. 
  
 II. COMPENSATION 
  
 2.1 Base Salary. Executive shall be paid a base salary (“Base Salary”) by the Company during the term of Executive’s
employment at the rate determined by the Compensation Committee of the Board of Directors (the “Compensation Committee”), which is currently $280,000 per year. Executive’s Base Salary shall be reviewed annually by the
Compensation Committee and evaluated based on performance and salary levels of other executives of comparable position within the industry and geographic location of the Company. Based upon such evaluation and review, Executive’s Base Salary
may be adjusted from time to time as determined by the Compensation Committee in its sole discretion. 
  
 2.2 Bonus. In addition to her Base Salary, Executive shall receive a bonus of $35,000 payable upon commencement of her employment with the Company
and a bonus of $20,000 payable upon the six (6) month anniversary of her commencement date with the Company (“Initial Bonus”). In addition, Executive will be eligible to receive an annual bonus (the “Annual
Bonus”), currently targeted at thirty percent (30%) of Executive’s Base Salary, based upon performance criteria and financial and operational results of the Company as determined by the Compensation Committee pursuant to the
Company’s 2006 Senior Executive Annual Bonus Plan. 
  
 2.3 Stock Options. Upon approval by the Compensation Committee, Executive will be granted an option to purchase 300,000 shares of Company common stock at an exercise price set at the closing sales price of the 

 
Company’s common stock as of the date of grant. Executive may be eligible to receive grants of stock options or purchase rights from time to time in the
future, on such terms and subject to such conditions as the Compensation Committee shall determine as of the date of any such grant and pursuant to the existing stock plan(s) of the Company. 
  
 2.4 Other Benefits. 
  
 (i) Executive shall be entitled to such employee benefits generally available
to full-time salaried employees of the Company, including without limitation, health insurance, paid vacation of not less than four (4) weeks per year, retirement plans and other similar benefits; provided, that Company reserves the right to
amend, modify, terminate or make any other changes in such benefits generally available to full-time salaried employees of the Company at any time in its sole discretion. In addition, Executive will be granted ten (10) days of accrued vacation
upon commencement of her employment. 
  
 (ii) Executive shall
receive the following benefits as part of her relocation: (a) up to $12,000 for the costs of temporary housing; (b) reimbursement of travel expenses for up to two (2) trips to Seattle, Washington; (c) reimbursement of travel
expenses for one (1) house-hunting trip for Executive and her family for three (3) nights; (d) direct payment of moving expenses, including packing, loading and unloading, for the reasonable and normal household goods moved to
Executive’s new residence located in Seattle or its surrounding areas from Executive’s current residence (provided, Company shall determine the moving company used to provide such moving services); (e) reimbursement of the reasonable
and customary closing costs associated with the sale of Executive’s current residence (reasonable costs include standard real estate commissions for such area, appraisal fees, title fees, attorney’s fees for normal, uncontested sales and
government recording and transfer charges); (f) a resettlement allowance of $50,000, less applicable taxes and withholding, payable during the first payroll processing period after commencement of employment; and (g) reimbursement of
travel expenses for final trip for Executive and her family to Seattle, Washington. Unless otherwise specified above, reimbursement or payment of such benefits shall be made upon presentation of receipts for such costs except for closing costs which
shall be reimbursed upon presentation of the closing documents for such sale detailing the costs to be reimbursed. The above benefits are available for a period of one (1) year from Executive’s date of hire with the Company. If
Executive’s employment terminates by Voluntary Termination (as defined below) within one (1) year of Executive’s hire date, then Executive shall reimburse the Company for all expenses and costs set forth above in
Section 2.4(ii) that have been paid by the Company. 
  
 (iii)
The Company shall pay or reimburse Executive for all travel and entertainment expenses incurred by Executive in connection with Executive’s duties on behalf of the Company, subject to the reasonable approval of the Company. Executive shall only
be entitled to reimbursement to the extent that Executive follows the reasonable procedures established by the Company for reimbursement of such expenses which will include, but will not be limited to, providing satisfactory evidence of such
expenditures. 
  
 III. TERMINATION OF EMPLOYMENT 
  
 3.1 Termination of Employment and Severance Benefits. 
  
 (a) Termination of Employment. This Agreement may be terminated upon
the occurrence of any of the following events: 
  
 (i) The
Company’s determination in good faith that it is terminating Executive for Cause (as defined in Section 3.3 below) (“Termination for Cause”); 
  
 (ii) The Company’s determination that it is terminating Executive without Cause, which determination may be made by
the Company at any time at the Company’s sole discretion, for any or no reason (“Termination Without Cause”); 
  

 2 

 (iii) The effective date of a written notice sent to the Company from Executive stating that Executive
is electing to terminate her employment with the Company (“Voluntary Termination”); 
  
 (iv) A change in Executive’s status such that a Constructive Termination (as defined in Section 3.2(d) below) has occurred; or

  
 (v) Following Executive’s death or Disability (as
defined in Section 3.4 below). 
  
 3.2 Severance
Benefits. Executive shall be entitled to receive severance benefits upon termination of employment only as set forth in this Section 3.2 and contingent upon resignation from all positions held by Executive and a full release and waiver of
claims by Executive: 
  
 (a) Voluntary Termination.
If Executive’s employment terminates by Voluntary Termination, then Executive shall not be entitled to receive payment of any severance benefits. Executive will receive payment(s) for all salary and unpaid vacation accrued as of the date of
Executive’s termination of employment and Executive’s benefits will be continued under the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in
accordance with applicable law. 
  
 (b) Involuntary
Termination. If Executive’s employment is terminated under Section 3.1(a)(ii) (Termination Without Cause) or 3.1(a)(iv) (Constructive Termination) above (such termination, an “Involuntary Termination”),
Executive will be entitled to receive payment of severance benefits equal to Executive’s regular monthly salary for twelve (12) months (the “Severance Period”). Such payments shall be made, at the Company’s option, in
a lump sum within thirty (30) days after the effective date of termination, or ratably over the Severance Period according to the Company’s standard payroll schedule; provided, however, that such payment may not extend beyond two
(2) months after the end of the calendar year in which the effective date of termination occurs. Executive will also be entitled to receive payment on the date of termination of any Initial Bonus which has been earned under Section 2.2,
but not yet paid, and the pro rata portion of any Annual Bonus based on achievement of the specific corporate and individual performance targets established for the fiscal year in which the termination occurs. Executive will receive payment(s) for
all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and health insurance benefits will be continued through payment of Executive’s COBRA health insurance premiums by the Company over the Severance
Period. 
  
 (c) Termination for Cause. If
Executive’s employment is terminated for Cause, then Executive shall not be entitled to receive payment of any severance benefits. Executive will receive payment(s) for all salary and unpaid vacation accrued as of the date of Executive’s
termination of employment and Executive’s benefits will be continued under the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with
applicable law. 
  
 (d) Constructive Termination.
“Constructive Termination” shall be deemed to occur if (i)(A) there is a material reduction or change in job duties, responsibilities and requirements inconsistent with Executive’s position with the Company and prior
duties, responsibilities and requirements, provided that neither a mere change in title alone nor reassignment to a position that is substantially similar to the position held prior to the change in terms of job duties, responsibilities or
requirements shall constitute a material reduction in job responsibilities; or (B) there is a reduction in Executive’s then-current base salary by at least twenty percent (20%), provided that an across-the-board reduction in the salary
level of all other senior executives by the same percentage amount as part of a general salary level reduction shall not constitute such a salary reduction; or (C) Executive refuses to relocate to a facility or location more than 50 miles from
the Company’s current location; and (ii) within the thirty (30)-day period immediately following such event Executive elects to terminate her employment voluntarily. 
  
 (e) Termination by Reason of Death or Disability. In the event that Executive’s employment with the
Company terminates as a result of Executive’s death or Disability (as defined in Section 3.4 below), Executive or 

  

 3 

 
Executive’s estate or representative will receive all salary and unpaid vacation accrued as of the date of Executive’s death or Disability and any
other benefits payable under the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of death or Disability and in accordance with applicable law. In addition, Executive’s
estate or representative will receive the amount of Executive’s Initial and Annual Bonus for the fiscal year in which the death or Disability occurs to the extent that the Initial or Annual Bonus has been earned as of the date of
Executive’s death or Disability, as determined by the Board of Directors or its Compensation Committee based on the specific corporate and individual performance targets established for such fiscal year. 
  
 3.3 Definition of Cause. For purposes of this Agreement,
“Cause” for Executive’s termination will exist at any time after the happening of one or more of the following events: 
  
 (a) An action or omission of Executive which constitutes a willful and intentional material breach of this Agreement or the Confidentiality Agreement
(defined below), including without limitation, Executive’s theft or other misappropriation of the Company’s proprietary information; 
  
 (b) Executive’s commitment of fraud, embezzlement, misappropriation of funds or breach of trust in connection with Executive’s employment; or

  
 (c) Executive’s conviction of any crime which involves
dishonesty or a breach of trust, or gross negligence in connection with the performance of the Executive’s duties. 
  
 3.4. Definition of Disability. For purposes of this Agreement “Disability” shall mean that Executive has been unable to perform
her duties hereunder as the result of Executive’s incapacity due to physical or mental illness, and such inability, which continues for at least one hundred twenty (120) consecutive calendar days or one hundred fifty (150) calendar
days during any consecutive twelve-month period, if shorter, after its commencement, is determined to be total and permanent by a physician selected by the Company and its insurers and acceptable to Executive or to Executive’s legal
representative (with such agreement on acceptability not to be unreasonably withheld). 
  
 IV. STOCK ACCELERATION 
  
 4.1 Accelerated
Vesting. In addition to any other right of acceleration that may be provided pursuant to any stock option plan or agreement pursuant to which Executive has been granted options to purchase shares of Common Stock of the Company, if
Executive’s employment is terminated due to an Involuntary Termination, the vesting of any unvested stock options and the lapsing of the Company’s repurchase right with respect to any shares of restricted stock held by Executive as of the
date of Executive’s Involuntary Termination shall accelerate such that the options shall become vested and the repurchase right shall lapse as to an additional twelve (12) months; provided that if such Involuntary Termination occurs
within twelve (12) months after a Change of Control (as defined below), then the vesting of all stock options and the lapse of the Company’s repurchase right with respect to all shares of restricted stock of the Company held by Executive
shall be accelerated completely so that one hundred percent (100%) of the shares of common stock covered by the stock options are fully vested and exercisable and the Company’s repurchase right has lapsed with respect to all shares of
restricted stock held by Executive. 
  
 4.2 Definition of
Change of Control. For purposes of this Agreement, “Change of Control” shall mean the occurrence of any of the following events: (i) an acquisition of the Company by another entity by means of any transaction or series of
related transactions (including, without limitation, any reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the domicile of the Company), or (ii) a sale of all or substantially all
of the assets of the Company (collectively, a “Merger”), so long as in either case the Company’s stockholders of record immediately prior to such Merger will, immediately after such Merger, hold less than 50% of the voting
power of the surviving or acquiring entity. 
  

 4 

 V. RESTRICTIVE COVENANTS 
  

5.1 Confidentiality Agreement. Executive shall sign, or has signed the Company’s form of Proprietary Information and Inventions Agreement
(the “Confidentiality Agreement”) substantially in the form attached hereto as Exhibit A. Executive hereby represents and warrants to the Company that she has complied with all obligations under the Confidentiality
Agreement and agrees to continue to abide by the terms of the Confidentiality Agreement and further agrees that the provisions of the Confidentiality Agreement shall survive any termination of this Agreement or of Executive’s employment
relationship with the Company, including the noncompetition provisions of the Confidentiality Agreement. 
  
 VI. OTHER PROVISIONS 
  
 6.1 Limitation on Severance Benefits. In the event that any severance benefits provided for in this Agreement to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 6.1, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 3.2
shall be payable either: 
  
 (a) in full, or 
  
 (b) as to such lesser amount which would result in no portion of such
benefits being subject to excise tax under Section 4999 of the Code, 
  
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount
of benefits under Section 3.2 notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. Unless the Company or Executive otherwise agree in writing, any determination required under this
Section 6.1 shall be made in writing by independent public accountants appointed by Executive and reasonably acceptable to the Company (the “Accountants”), whose determination shall be conclusive and binding upon Executive and
the Company for all purposes. For purposes of making the calculations required by this Section 6.1, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination
under this Section 6.1. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 6.1. 
  
 6.2 Indemnification. The Company hereby agrees to indemnify and hold the Executive harmless, to the fullest extent
permitted by law and as set forth in the Amended and Restated Certificate of Incorporation of the Company, from and against any expenses, including legal fees, and all judgments, fines and amounts paid in settlement and reasonably incurred in
connection with legal, administrative or investigative proceedings to which the Executive is made, or threatened to be made, a party by reason of the fact the Executive is or was a director or officer of the Company. 
  
 6.3 Entire Agreement. This Agreement, the Confidentiality Agreement
and any agreement pertaining to Executive’s stock options or shares of restricted stock contain the entire agreement and understanding of the parties with respect to Executive’s employment by the Company and compensation payable to
Executive by the Company and supersede all prior understandings, agreements and discussions. This Agreement may only be amended or modified by a written instrument executed by Executive and the Chief Executive Officer of the Company pursuant to
authorization by the Compensation Committee. 
  
 6.4
Notices. Any and all notices permitted or required to be given under this Agreement must be in writing. Notices will be deemed given (i) on the first business day after having been sent by commercial overnight courier 

  

 5 

 
with written verification of receipt, or (ii) on the third business day after having been sent by registered or certified mail from a location on the
United States mainland, return receipt requested, postage prepaid, whichever occurs first, at the address set forth below or at any new address, notice of which will have been given in accordance with this Section 6.4: 
  

			
	 If to the Company:
	  	 Seattle Genetics, Inc.

	 	  	21823 30th Drive SE
	 	  	Bothell, WA 98021
	 	  	Attn: General Counsel
		
	 If to Executive:
	  	 Pamela A. Trail

	 	  	c/o Seattle Genetics, Inc.
	 	  	21823 30th Drive SE
	 	  	Bothell, WA 98021

  
 6.5 Non-Waiver.
Failure to enforce at any time any of the provisions of this Agreement shall not be interpreted to be a waiver of such provisions or to affect either the validity of this Agreement or the right of either party thereafter to enforce each and every
provision of this Agreement. 
  
 6.6 Separability. If one
or more provisions of this Agreement is finally determined to be invalid or unenforceable, such provision will not affect or impair the other provisions of this Agreement, all of which will continue to be in effect and will be enforceable, provided,
however, that any such invalid provisions shall, to the extent possible, be reformed so as to implement insofar as practicable the intentions of the parties. 
  
 6.7 Term. The employment of Executive under this Agreement shall be for an unspecified term. The Company and Executive acknowledge and agree that
Executive’s employment is and shall continue to be at-will, as defined under applicable law, and that Executive’s employment with the Company may be terminated by either party at any time for any or no reason, and with or without notice.
If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages award or compensation other than as provided in this Agreement. 
  
 6.8 Law. This Agreement shall be interpreted in accordance with the
laws of the State of Washington. 
  
 6.9 No Duty to
Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner), nor, except as otherwise provided in this Agreement, shall any such
payment be reduced by any earnings that Executive may receive from any other source. 
  
 6.10 Legal Fees. In the event either party breaches this Agreement, the nonbreaching party shall be entitled to recover from the breaching party any and all damages, costs and expenses, including without
limitation, attorneys’ fees and court costs, incurred by the nonbreaching party as a result of the breach. 
  
 6.11 Counterparts. This Agreement may be executed in counterparts which when taken together will constitute one instrument. Any copy of this
Agreement with the original signatures of all parties appended will constitute an original. 
  

 6 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

  

			
	COMPANY:
	
	SEATTLE GENETICS, INC.
		
	 By:
	 	/S/    CLAY B. SIEGALL
	 Name:
	 	Clay B. Siegall
	 Title:
	 	President and CEO
	
	EXECUTIVE
	
	/S/    PAMELA A. TRAIL
	Pamela A. Trail

  

 7

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