Document:

10.43 SQNM Illumina Patent Agreement

    
***Text Omitted and Filed Separately with
the Securities and Exchange Commission.
Confidential Treatment Requested Under
17 C.F.R. Sections 200.80(b)(4) and 230.406.

POOLED PATENTS AGREEMENT
This Pooled Patents Agreement (the “Agreement”) is made and entered as of 11:59 P.M. Pacific Time on December 2, 2014 (such date and time the “Effective Date”) by and among:
Illumina Inc., a Delaware corporation, having a place of business at 5200 Illumina Way, San Diego, CA 92122 (“Illumina”), and
Sequenom, Inc., a Delaware corporation, having a place of business at 3595 John Hopkins Court, San Diego CA 92121 (“Sequenom”),
W I T N E S S E T H:
WHEREAS, the Parties and others have entered into the Settlement Agreement dated as of the Effective Date (the “Settlement Agreement”) pursuant to which the Parties and others finally settled and resolved certain disputes on the terms and conditions thereof;
WHEREAS, both of the Parties desire to continue their current businesses related to the sale of services in the NIPT LDT Field;
WHEREAS, the Parties desire to pool together certain patent rights which each Party or its Affiliates owns or in-licenses in the Licensed NIPT Field, as Pooled Patents, and to offer them to third parties as a package license in an effort to help facilitate the broader exploitation in the marketplace of the technology claimed by the Pooled Patents;
WHEREAS, the Parties have agreed upon a price schedule for such licenses in the NIPT LDT Field, and upon mechanisms for adjusting such prices in response to changes in market conditions;
WHEREAS, the Parties desire for Illumina to have the exclusive right to Exploit the Pooled Patents in the NIPT IVD Field and have agreed on royalties that shall be payable by Illumina to Sequenom upon sale of NIPT IVD Products in the NIPT IVD Field;
WHEREAS, the Parties desire that the Pooled Patents be prosecuted, enforced, and licensed or sublicensed by Illumina or its Affiliates as set forth in this Agreement, and have set forth or referenced in this Agreement certain assignments, licenses, rights and obligations in that regard;
WHEREAS, the Parties have agreed upon one-time and recurring payments to be made between and among them in recognition of the rights and obligations each is receiving and incurring under this Agreement and the Ancillary Agreements; and
NOW THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein, the Parties, intending to be legally bound, agree as follows:

1

ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1Definitions.  Unless otherwise specifically provided herein, the following Capitalized terms shall have the following meanings:
“Affiliate” means, with respect to a Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person at any time during the period for which the determination of affiliation is being made.  For purposes of this definition, the term “control” means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of management policies of such Person, whether through the ownership of voting securities or by contract or otherwise.
“Agreement” has the meaning set forth in the preamble.
“Ancillary Agreement” means any agreement that is executed and delivered pursuant to the terms of this Agreement, including any agreement the execution and delivery of which is a condition precedent to the effectiveness of this Agreement, including as stated in Sections 2.4, 2.5, 2.6 and 2.7.
“Annual Report” has the meaning set forth in Section 3.4(c)(i).
“Authorized Lab” has the meaning set forth in Section 2.8(b).
“Business Day” means all days other than Saturdays, Sundays or a national or local holiday recognized in the United States or Hong Kong.
“Change of Control” means, with respect to a Person: (a) a transaction or series of related transactions that results in the sale or other disposition of all or substantially all of such Person’s assets; or (b) a merger or consolidation in which such Person is not the surviving corporation or in which, if such Person is the surviving corporation, the shareholders of such Person immediately prior to the consummation of such merger or consolidation do not, immediately after consummation of such merger or consolidation, possess, directly or indirectly through one or more intermediaries, a majority of the voting power of all of the surviving entity’s outstanding stock and other securities and the power to elect a majority of the members of such Person’s board of directors; or (c) a transaction or series of related transactions (which may include a tender offer for such Person’s stock or the issuance, sale or exchange of stock of such Person) if the shareholders of such Person immediately prior to the initial such transaction do not, immediately after consummation of such transaction or any of such related transactions, own, directly or indirectly through one or more intermediaries, stock or other securities of the entity that possess a majority of the voting power of all of such Person’s outstanding stock and other securities and the power to elect a majority of the members of such Person’s board of directors.
“Claims” means, collectively, all losses, liabilities, damages, costs and expenses of any type or nature whatsoever, and all claims, demands, suits, actions, causes of action or other proceedings of any type or nature whatsoever relating thereto.
“Combined Product” means a bundle of products consisting of at least one  NIPT IVD Product and any other product (including any Illumina Product) that is not itself an NIPT IVD Product where the bundle is sold or transferred for a single price  in a territory in any royalty reporting period, where such NIPT IVD Product and other product are also sold and priced separately in such territory in such royalty reporting period.

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“Confidential Information” means all information that (a) is provided by one Party to the other Party pursuant to this Agreement, and (b) if disclosed in writing or other tangible medium is marked or identified as confidential at the time of disclosure to the recipient or, if disclosed other than in writing, is acknowledged at the time of disclosure to be confidential and is documented as confidential by written notice to the recipient within thirty (30) days after disclosure.  Notwithstanding the foregoing, all reports, payments made and notices provided under this Agreement shall be Confidential Information of the providing Party, and all information subject to audits hereunder shall be Confidential Information of the audited Party, in each case whether or not so marked or identified, and subject to the exclusions (i) through (iv) immediately below.  Notwithstanding the foregoing, Confidential Information of a Party shall not include that portion of such information that, and only to the extent that, the recipient can establish by satisfactory evidence: (i) was known to the recipient without an obligation of confidentiality to disclosing Party or any other Person before receipt thereof from the disclosing Party, (ii) is disclosed to the recipient free of confidentiality obligations by a Third Party who has the right to make such disclosure, (iii) is or becomes part of the public domain through no fault of the recipient, or (iv) was independently developed by Persons on behalf of recipient without use of the information disclosed by the disclosing Party.
“CUHK Licenses” means, collectively, the CUHK Licenses (2008/2011) and CUHK Licenses 2014.
“CUHK Licenses (2008/2011)” means (a) that license agreement between the Chinese University of Hong Kong (“CUHK”) and Sequenom, No TS094849 titled License Agreement, effective as of September 16, 2008, (b)  that license agreement between CUHK and Sequenom, No TS116378 titled License Agreement, effective as of May 3, 2011 and (c) that license agreement between CUHK and Sequenom, No TS116379 titled License Agreement, effective as of May 3, 2011, as each of (a), (b) and (c) is amended as of the Effective Date and transferred by Sequenom to Illumina by assignment and novation as of the Effective Date.
“CUHK Licenses (2014)” means (a) that license agreement between CUHK and Illumina, No TS148570 titled License Agreement, effective as of the Effective Date, pursuant to which CUHK grants to Illumina certain licenses and other rights related to the inventions and other technology described in CUHK’s University Docket No. 10/MED/401/ITF, and (b) that license agreement between CUHK and Illumina, No TS148571 titled License Agreement, effective as of the Effective Date, pursuant to which CUHK grants to Illumina certain licenses and other rights related to the inventions and other technology described in CUHK’s University Docket No. 11/MED/403.
“CUHK Patent” means any Patent licensed to Illumina or Sequenom under a CUHK License.
“Current Illumina Product” means, collectively: 
(a)any NIPT LDT Test that is first commercially performed by an Illumina Party as of or before the Effective Date; 
(b)any Illumina Product first commercially sold by an Illumina Party as of or before the Effective Date solely to the extent such Product was used by any Person on or prior to the Effective Date for NIPT, and any line extension or natural evolution of such Illumina Product, provided that such line extension or natural evolution is first commercially sold by an Illumina Party and used for NIPT prior to the fifth (5th) anniversary of the Effective Date and solely to the extent such Illumina Product is used by any Person for NIPT as set forth in subsections (a), (c), (d) and (e) herein;

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(c)any NIPT LDT Test that is a line extension or natural evolution of any NIPT LDT Test set forth in the foregoing clause (a), provided that such line extension or natural evolution is first commercially performed by an Illumina Party prior to the fifth (5th) anniversary of the Effective Date;
(d)any NIPT LDT Test: 
(i)which is first commercially performed by an Illumina Party prior to the fifth (5th) anniversary of the Effective Date;
(ii)for which a Test Fee is paid in accordance with this Agreement; and
(iii)which is developed and performed solely and exclusively by or on behalf of Illumina or its Affiliates as its own product, and is sold
		
	(A)
	under brand names of Illumina or its Affiliates or

(B)under a private label for a Third Party sales agent, distributor or other reseller, provided that an NIPT LDT Test shall be excluded from this clause (d) if such NIPT LDT Test is performed in collaboration with a Third Party sales agent, distributor or other reseller; and
(e)any NIPT IVD Product:
(i)which is first commercially sold by an Illumina Party prior to the fifth (5th) anniversary of the Effective Date;
(ii)for which a Royalty is paid in accordance with this Agreement; and
(iii)which is developed and made solely and exclusively by or on behalf of Illumina or its Affiliates as its own product, and is sold
		
	(A)
	under brand names of Illumina or its Affiliates; or 

(B)under a private label for a Third Party sales agent, distributor or other reseller, provided that an NIPT IVD Product shall be excluded from this clause (e) if such NIPT IVD Product is developed or manufactured for or in collaboration with a Third Party sales agent, distributor or other reseller in accordance with the product design of, such Third Party, including by an Illumina Party acting as a foundry, contract developer or manufacturer, or original equipment or device manufacturer.  
For the avoidance of doubt, 
(x) porting an NIPT LDT Test from one sequencing instrument to a different sequencing instrument for performance thereon is a natural evolution or line extension of that NIPT LDT Test;
(y) nothing in this Agreement prohibits Illumina from using a foundry, contract developer or manufacturer to develop and/or manufacture on its behalf any NIPT IVD Product; and 
(z) NIPT IVD Product that is covered by the elements of clauses (e)(i), (ii) and (iii) herein is not excluded from Current Illumina Product solely by as a result of being developed on its behalf, made on its behalf or distributed or re-sold by a Third Party. 

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“Current Sequenom Product” means, collectively, (a) any NIPT LDT Test that is first commercially performed by a Sequenom Party as of or before the Effective Date; (b) any NIPT LDT Test that is a line extension or natural evolution of any NIPT LDT Test set forth in the foregoing clause (a), provided that such line extension or natural evolution is first commercially performed by a Sequenom Party prior to the fifth (5th) anniversary of the Effective Date; and (c) any NIPT LDT Test (i) which is first commercially performed by a Sequenom Party prior to the fifth (5th) anniversary of the Effective Date, (ii) for which a Test Fee is paid in accordance with this Agreement, and (iii) which is developed and performed solely and exclusively by or on behalf of Sequenom or its Affiliates as its own product and sold (A) under brand names of Sequenom or its Affiliates or (B) under a private label for a Third Party sales agent, distributor or other reseller, provided that an NIPT LDT Test shall be excluded from this clause (c) if such NIPT LDT Test is performed in collaboration with a Third Party sales agent, distributor or other reseller.  For the avoidance of doubt, porting an NIPT LDT Test from one sequencing instrument to a different sequencing instrument for performance thereon is a natural evolution or line extension of that NIPT LDT Test. 
“Existing Illumina License” has the meaning set forth in Section 2.11(a).
“Existing Illumina Licensee” has the meaning set forth in Section 2.11(a).
“Existing Illumina Litigant” has the meaning set forth in Section 2.8(e).
“Existing Sequenom License” has the meaning set forth in Section 2.10(a).
“Existing Sequenom Licensee” has the meaning set forth in Section 2.10(a).
“Existing Sequenom Litigant” has the meaning set forth in Section 2.8(d).
“Expire” and grammatical variations  “expired” or “expiration” (with corresponding meaning for “unexpired”) in relation to a Patent shall include abandonment, failure to maintain, or a holding of invalidity or unenforceability by a final decision of a court or a governmental agency of competent jurisdiction (including without limitation any patent office of competent jurisdiction), from which no further appeal is possible, in addition to the ordinary expiration of a patent term of an issued patent.
“Exploit” means (a) with respect to NIPT LDT Tests, Current Sequenom Products and those Current Illumina Products that are NIPT LDT Tests, to research, develop, offer for sale, have offered for sale, sell, have sold, market, have marketed and perform, and (b) with respect to NIPT IVD Products and all Current Illumina Products not addressed in clause (a), to research, develop, make, have made, use, have used, sell, have sold, offer to sell and have offered to sell, import and have imported, market and have marketed, perform and all other acts that, but for a license, would infringe a Patent in the country in which the act occurred.
“Granting Illumina Affiliate” has the meaning set forth in Section 2.2(c).
“Granting Sequenom Affiliate” has the meaning set forth in Section 2.3(c).
“Gross Test Fees” has the meaning set forth in Section 3.2(d).
“HDFN Product” has the meaning set forth in Section 2.16.
“Illumina Customer” means any Person that purchases Illumina Products.

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“Illumina Customer License” has the meaning set forth in Section 2.8(a).
“Illumina In-Licensed Patents” means all Patents in-licensed by Illumina or its Affiliates under, and as set forth in, the Stanford License, [...***...] and, on and after the Effective Date, the CUHK Licenses.  The Illumina In-Licensed Patents as of the Effective Date are set forth on Annex II, provided that on and after the Effective Date, the Patents set forth on Annex IV (in-licensed by Sequenom from CUHK) shall be deemed added to Annex II, and Annex IV shall be deemed to no longer include any Patents.
“Illumina Owned Patents” means, collectively, (a) those United States and foreign patents and patent applications, including provisional applications, owned by Illumina or its Affiliates set forth on Annex I, (b) all divisional, continuation, continuation-in-part, and substitute applications of any of the patents or patent applications set forth in the foregoing clause (a), (c) all patents that have issued or in the future issue from any of the patent applications set forth in the foregoing clauses (a) and (b), including utility model and design patents and certificates of invention, (d) all extensions, supplemental protection certificates, registrations, confirmations, reissues, reexaminations, inter partes reviews, post-grant reviews, restorations and renewals of or to any of the foregoing described patents and (e) any equivalents of any of the foregoing in clauses (a), (b), (c) and (d) in any jurisdiction.
“Illumina Patents” means, collectively, the Illumina In-Licensed Patents and Illumina Owned Patents. 
“Illumina Parties” means, collectively, Illumina and its Affiliates.
“Illumina Products” refers to any and all consumables, reagents, instruments, software and accessories commercialized by or on behalf of Illumina or its Affiliates.  
“Illumina Technology Partner” has the meaning set forth in Section 2.12(a).
“Isis License” means that license agreement between Isis Innovation Limited (“Isis”) and Sequenom, titled Exclusive License of Technology, effective as of October 14, 2005, and as amended on October 19, 2006 (1st amendment), November 5, 2007 (2nd amendment), November 3, 2009 (3rd amendment), November 29, 2012 (4th amendment), the letter amendment dated 26 October 2012, as further amended prior to the Effective Date, and which was terminated on or before the Effective Date. 
“Isis Patents” means the Patents originally owned by Isis and licensed by Isis to Sequenom under the Isis License, and that were sold, assigned and transferred to Sequenom before the Effective Date. The Isis Patents are set forth on Annex III.
“Lapidus Patents” means the Patents on Annex V.
“Law” means, individually and collectively, any and all laws, ordinances, orders, rules, rulings, directives and regulations of any kind whatsoever of any governmental or regulatory authority within the applicable jurisdiction.

***Confidential Treatment Requested

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“Licensed NIPT Field” means, collectively, the NIPT IVD Field and NIPT LDT Field.
[...***...].
[...***...].
“Net IVD Sales” means the gross sales price of any NIPT IVD Product invoiced by Illumina or its Affiliates, a Person that is sublicensee described in Section 3.3(c) or its Affiliates, for the first (and not any subsequent) arms-length sale of that NIPT IVD Product to any non-Affiliate Person and any use, transfer or sale set forth in (i), (ii) or (iii) hereinbelow, less, to the extent reasonable in the in vitro diagnostic industry and actually paid, applied or accrued, (a) credits, allowances, discounts and rebates to, and chargebacks from the account of, such Person for spoiled, damaged, outdated and returned product; (b) freight and insurance costs incurred in transporting such product to such Persons; (c) cash, quantity and trade discounts, rebates and other price reductions for such product given to such Persons under price reduction programs that are consistent with price reductions given for in vitro diagnostic products; (d) sales, use, value-added and other direct taxes, incurred on the sale of such product to such customers; and (e) customs duties, surcharges and other governmental charges incurred in exporting or importing such product to such customers.  To the extent any NIPT IVD Product in any calendar quarter is (i) used by Illumina or its Affiliates or a Person that is a sublicensee described in Section 3.3(c) or its Affiliates (excluding NIPT IVD Products purchased from Illumina or its Affiliates in an arms-length sale, for which gross sales price is included in Net IVD Sales) in conjunction with a fee-for-service arrangement, or (ii) is transferred to a customer in the course of a reagent rental sales structure, or (iii) is sold in other than an arm’s length sale (including as part of a reagent rental program, operating or capital lease or comparable sales arrangement), the gross sales price of the NIPT IVD Product for purposes of calculating Net IVD Sales shall be the weighted average gross invoiced sales price of the applicable NIPT IVD Product for sales of such NIPT IVD Product to Persons purchasing comparable volumes of such NIPT IVD Product in an arm’s length sale in the applicable territory during such calendar quarter.
In the event an NIPT IVD Product is sold, transferred or bundled as part of a Combined Product, the gross invoiced sales price of such Combined Product shall be multiplied by the fraction A / (A+B) to determine the gross invoiced sales price of such NIPT IVD Product for purposes of calculating the Net Sales of such NIPT IVD Product, where A equals the weighted average gross invoiced sales price of such NIPT IVD Product sold separately, and B equals the weighted average gross invoiced sales price of such other product comprising such Combined Product sold separately, in each case sold to Persons purchasing comparable volumes of such NIPT IVD Product and/or other product in the applicable territory during the applicable royalty reporting period.
In the event an NIPT IVD Product is sold, transferred or bundled as part of a reagent rental program, operating or capital lease or comparable sales arrangement, then the gross invoiced sales price of such NIPT IVD Product shall equal the weighted average gross invoiced sales price of such NIPT IVD Product sold separately (other than as part of a reagent rental program, operating or capital lease or comparable sales arrangement) to Persons purchasing comparable volumes of such NIPT IVD Product in the applicable territory during the applicable royalty reporting period.

***Confidential Treatment Requested

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In the event of an NIPT IVD Product that is not a single use consumable and, instead, is intended for repeated use (e.g., software), the gross invoiced sales price of that NIPT IVD Product shall be (x) the actual gross invoiced sales price of that NIPT IVD Product at the time of sale and (y) any additional sales price that is based on usage, subscription, or other recurring occurrences, both (x) and (y) subject to applicable deductions permitted herein.  Each of the sales prices described in clause (x) and (y) constitutes Net IVD Sales for the calendar quarter in which such sales price is invoiced or payable, subject to applicable deductions permitted herein. 
Notwithstanding anything in this Agreement to the contrary, in the case of NIPT IVD Product that is software, Illumina has sole discretion to transfer such NIPT IVD Product by license instead of sale, provided that all amounts payable to Illumina, its Affiliates, or a Person that is a sublicensee described in Section 3.3(c) or its Affiliates, in exchange for such transfer shall, for the purpose of the immediately preceding paragraph, be considered as the sales price set forth in (x) and (y). For the avoidance of doubt, separately invoiced services regarding 
installation, training, maintenance and similar activities that a software seller/licensor provides to a software purchaser/licensee shall not be included in Net IVD Sales. 
“Net LDT Sales” has the meaning [...***...].
“New Illumina Licensee” has the meaning set forth in Section 2.8(a).
“New Sequenom Licensee” has the meaning set forth in Section 2.9(b).
“NIPT” means in vitro cell-free nucleic acid-based non-invasive prenatal testing (including, without limitation, testing by massively parallel sequencing or digital PCR) of a biological sample (including but not limited to plasma, serum, whole blood, and urine) obtained from a pregnant woman, excluding oncology testing.
“NIPT IVD Field” means the field of conducting or performance of NIPT (in whole or in part) by use of an NIPT IVD Product.
“NIPT IVD Product” means a distributable in vitro diagnostic device that has either (a) received applicable Regulatory Approval for sale and use to conduct or perform (in whole or in part) NIPT or (b) is otherwise particularly labeled and marketed for use to conduct or perform NIPT (in whole or in part,) excluding from (a) and (b) general purpose products and components labeled for research use only.  For the purposes of this Agreement, an item is distributable if it is distributed on tangible medium or if accessed remotely (e.g., available in the cloud).
“NIPT LDT Field” means the field of conducting or performance of NIPT by use of an NIPT LDT Test, in a clinical laboratory, excluding the NIPT IVD Field. 
“NIPT LDT Test” means a non-distributable in vitro test (including a Site-specific IVD) performed in a clinical laboratory to conduct or perform NIPT, excluding all NIPT IVD Products, but in all cases (other than Site-specific IVD tests), whether or not the test requires Regulatory Approval for sale or use before or after the Effective Date.  As of the Effective Date, NIPT LDT Tests include, without limitation, the verifi® test that is performed by Illumina and its Affiliates and the MaterniT21® test and VisibiliTTM test that is performed by Sequenom and its Affiliates. 
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 “Nominal Amount” has the meaning set forth in Section 3.4(c)(ii).
“Other Platform License” has the meaning set forth in Section (a).
“One-Time Payment” has the meaning set forth in Section 3.1.
“Party” means Illumina or Sequenom and “Parties” means Illumina and Sequenom.
“Patent” means (a) any United States or foreign issued patent or pending patent application, including provisional application, together with (b) all divisional, continuation, continuation-in-part, and substitute applications of any such patent or patent application set forth 
in the foregoing clause (a), (c) all patents that have issued or in the future issue from any of the patent applications set forth in the foregoing clauses (a) and (b), including utility model and design patents and certificates of invention, and (d) all extensions, supplemental protection certificates, registrations, confirmations, reissues, reexaminations, inter partes reviews, post-grant reviews, restorations and renewals of or to any of the foregoing described patents and any foreign equivalents of any of the foregoing.
“Patent Royalty Term” means, on a country-by-country and product-by-product basis with respect to a particular NIPT IVD Product in the NIPT IVD Field, the time period beginning on the Effective Date and ending upon the date of expiration of the last to Expire Pooled Patent having at least one Valid Issued Claim covering the applicable NIPT IVD Product or its use in the NIPT IVD Field. 
“Person” means any individual, corporation, partnership, firm, company, joint venture, association (including trust association), joint-stock company, limited liability company, trust, unincorporated organization, governmental body, organization or other entity.
“Pooled Patents” means the Illumina Patents and the Sequenom Patents.
“Protective Action” has the meaning as set forth in Section 5.1(b).
“Regulatory Approval” means any governmental approvals, licenses, registrations, clearances or authorizations necessary for the marketing, sale, or use of an in vitro diagnostic device; provided that, (a) in the United States, as of the Effective Date Regulatory Approval is only that sought from the Federal Food and Drug Administration, (b) in the European Union, as of the Effective Date Regulatory Approval is only that sought through compliance with the In Vitro Diagnostic Medical Devices Directive (which on the Effective Date is Directive 98/79/EC) and (c) in jurisdictions not requiring any governmental approvals, licenses, registrations, clearances or authorizations for the marketing, sale, or use of an in vitro diagnostic device, Regulatory Approval shall be deemed to have been provided for a particular  in vitro diagnostic device upon the first commercial sale or marketing of that in vitro diagnostic device if that in vitro diagnostic device would require Regulatory Approval in the United States if marketed in the United States. 
“Royalty” and “Royalties” have the meaning set forth in Section 3.3(d).
“Sample Agreement” means the Sample Transfer Agreement made and entered into as of the Effective Date, between the Parties.
“Sequenom In-Licensed Patents” means all Patents in-licensed by Sequenom or its Affiliates immediately prior to the Effective Date under, and as set forth in, the CUHK Licenses 

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(2008/2011).  The Sequenom In-Licensed Patents immediately prior to the Effective Date are set forth on Annex IV, provided that on and after the Effective Date, the Patents set forth on Annex IV shall be deemed added to Annex II, and Annex IV shall be deemed to no longer include any Patents.
“Sequenom Owned Patents” means, collectively, (a) those United States and foreign patents and patent applications and provisional applications owned by Sequenom or its Affiliates set forth on Annex III and (solely if and to the extent Sequenom owns and has the right to grant licenses under the Lapidus Patents) the Lapidus Patents on Annex V, (b) all divisional, continuation, continuation-in-part, and substitute applications of any of the patents or patent applications set forth in the foregoing clauses (a), (c) all patents that have issued or in the future issue from any of the patent applications set forth in the foregoing clauses (a) and (b), including utility model and design patents and certificates of invention, (d) all extensions, supplemental protection certificates, registrations, confirmations, reissues, reexaminations, inter partes reviews, post-grant reviews, restorations and renewals of or to any of the foregoing described patents, and (e) any equivalents of any of the foregoing in clauses (a), (b), (c) and (d) in any jurisdiction.
“Sequenom Parties” means, collectively, Sequenom and its Affiliates.
“Sequenom Patents” means, collectively, the Sequenom In-Licensed Patents, Sequenom Owned Patents and Isis Patents.
“Sequencing Platform Manufacturer”  means a Person, other than Illumina or its Affiliates, (a) that  has raised at least $[...***...] in financing transaction(s) and is engaged as a primary business in the business of [...***...], collectively, “Sequencing Platform Products”), or (b) the annual aggregated revenue of such Person and its Affiliates for the most recent full calendar year is greater than $[...***...] and [...***...].
“Sequenom Technology Partner” has the meaning set forth in Section 2.12(a).
“Site-specific IVD” means a non-distributable in vitro diagnostic test that received Regulatory Approval for sale or use, which Regulatory Approval in the United States is pursuant to 21 CFR 814 or 21 CFR 807 Subpart E. 
“Stanford License” means that license agreement between Verinata and the Trustees of Leland Stanford Junior University (“Stanford”), titled the Second Amended and Restated Co-Exclusive Agreement, effective on September 14, 2012, as amended as of the Effective Date.
“Stanford Sublicense Agreement” means the sublicense agreement from Illumina Parties to Sequenom Parties (excluding Affiliates that are Sequencing Platform Manufacturers) under the Stanford License, effective on the Effective Date.
“Technology Agreement” has the meaning as set forth in Section 2.12(a).
“Term” has the meaning as set forth in Section 4.1.
“Test Fee” has the meaning as set forth in Section 3.2(a).
“Test Fee and Royalty Report” has the meaning set forth in Section 3.4(a).
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“Third Party” means any Person that is not a Party to this Agreement and is not an Affiliate of a Party to this Agreement.
“United States” means the United States of America and its territories and possessions.
“University Licenses” means the CUHK Licenses, Stanford License, [...***...].
“University Licensors” means CUHK, Stanford, [...***...].
“Valid Claim” means (a) any claim of an issued and unexpired Pooled Patent that has not been held unenforceable, unpatentable, or invalid by a final decision of a court or a governmental agency of competent jurisdiction (including without limitation any patent office of competent jurisdiction), from which no further appeal is possible (“Valid Issued Claim”), and (b) solely in the case of Pooled Patents other than Illumina Owned Patents, Isis Patents and Sequenom Owned Patents,  any claim of a pending patent application that is a Pooled Patent, excluding such claims that have been abandoned and such claims for which no further prosecution is possible in order to seek allowance and issuance of such claim (“Valid Pending Claim”). 
“Verinata” means Verinata Health, Inc.
1.2Interpretation.  Except where expressly stated otherwise in this Agreement, the following rules of interpretation apply to this Agreement:
(a)all references to a particular section or schedule or annex shall be a reference to that section or schedule or annex in or to this Agreement as it may be amended from time to time pursuant to this Agreement;
(b)the headings are inserted for convenience only and shall be ignored in construing this Agreement;
(c)words importing the masculine gender shall include the feminine and vice versa and words in the singular include the plural and vice versa;
(d)any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding or following those terms;
(e)reference to any statute or regulation includes any modification or re-enactment of that statute or regulation;
(f)all references to a “license,” “licensed”  or “licensing” include the grant or receipt of either a direct license from the owner of the rights licensed, a sublicense from a Party or Affiliate of rights licensed or sublicensed to such Party or Affiliate, or both, in each case as applicable to the particular rights being licensed and so referred to;
(g)all references in this Agreement to “Illumina Patent” or “Illumina Patents” or to “Sequenom Patent” or “Sequenom Patents” is a reference to the defined terms, and is not a reference to all Patents of Illumina or all Patents of Sequenom;
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(h)all references in this Agreement to “Schedule 1” or the “Test Fee Schedule” is a reference to Schedule 1 as it may be amended from time to time in accordance with this Agreement; and
(i)all references in this Agreement to NIPT LDT Tests in the NIPT LDT Field are understood to mean NIPT LDT Tests performed in the NIPT LDT Field, and all references in this Agreement to NIPT IVD Products in the NIPT IVD Field are understood to mean NIPT IVD Products in, for, or for use in the NIPT IVD Field.
ARTICLE II
RIGHTS OF SEQUENOM AND ILLUMINA UNDER POOLED PATENTS
2.1Rights Under Pooled Patents Generally.  This Section 2.1 is not intended to, and does not, convey any license rights under any Pooled Patent.  In the event of any conflict between the language in this Section 2.1 and the provisions of any Ancillary Agreement granting a license under any Pooled Patent, or the licenses granted pursuant to Sections 2.2 (License to Sequenom Under Illumina Owned Patents) and 2.3 (Licenses to Illumina Under Sequenom Owned Patents and Isis Patents) of this Agreement, the applicable provisions in the Ancillary Agreement, Section 2.2, or Section 2.3 shall control.
(a)Illumina Rights.  Pursuant and subject to this Agreement (including the license grants in Sections 2.2 and 2.3), and the Ancillary Agreements, and the rights retained by Sequenom (and by Isis and its Affiliates as described in Schedule 7.1(b)) under the Sequenom Patents, the Illumina Parties will have:
(i)the exclusive (even as to the Sequenom Parties), worldwide, sublicensable right under the Pooled Patents to Exploit NIPT IVD Products in the NIPT IVD Field, 
(ii)the exclusive, worldwide, sublicensable right under the Pooled Patents (excluding the Isis Patents) to Exploit NIPT LDT Tests in the NIPT LDT Field, subject to the non-exclusive rights granted to, or reserved by, the Sequenom Parties, and
(iii)the nonexclusive, worldwide, sublicensable right under the Isis Patents to Exploit NIPT LDT Tests in the NIPT LDT Field.
Notwithstanding the foregoing, for the avoidance of doubt:
(1)each of Sections 2.1(a)(i), 2.1(a)(ii) and 2.1(a)(iii) is subject to any and all applicable terms in the CUHK Licenses, including without limitation any territory restrictions and rights reserved by CUHK thereunder,
(2)each of Sections 2.1(a)(i), 2.1(a)(ii) and 2.1(a)(iii) is subject to Section 2.8 (Conditions for Illumina Grant of Licenses Under Pooled Patents), and
(3)Section 2.1(a)(ii) is subject to rights granted under Existing Sequenom Licenses.
(b)Sequenom Rights.  Pursuant and subject to this Agreement (including the license grants in Sections 2.2 and 2.3, the exclusive rights of Illumina in Section 1.1(a)), the Ancillary Agreements, and the rights retained by the Sequenom Parties under the Isis Patents:

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(i)neither Sequenom nor any of its Affiliates will have any rights under the Pooled Patents (including under the Isis Patents) to Exploit NIPT IVD Products anywhere in the world, 
(ii)the Sequenom Parties will have a non-exclusive, worldwide, non-sublicensable right under the Pooled Patents to Exploit NIPT LDT Tests in the NIPT LDT Field, except that, with respect to the Isis Patents, the Sequenom Parties will have the right to grant sublicenses to Persons [...***...] and thereby authorize, only under the Isis Patents, each such sublicensee to Exploit NIPT LDT Tests in the NIPT LDT Field in that sublicensee’s, or as applicable its Affiliates’, clinical laboratory,
(iii)the Sequenom Parties will retain the rights under the Isis Patents, subject to the rights granted to Illumina Parties under the Isis Patents (exclusive to Exploit NIPT IVD Products in the NIPT IVD Field, and nonexclusive to Exploit NIPT LDT Tests in the NIPT LDT Field).  
Notwithstanding the foregoing, for the avoidance of doubt, (A) Sequenom acknowledges and agrees that the Sequenom Parties do not have any rights under Pooled Patents with respect to Exploiting NIPT IVD Products, and (B) each of Sections 2.1(b)(ii) and 2.1(b)(iii) is subject to: 
(1)rights granted under Existing Sequenom Licenses, and
(2)any and all applicable terms in the University Licenses, including without limitation any field limitations, any territory restrictions and rights reserved by the applicable University Licensor thereunder or Isis.
2.2License to Sequenom Under Illumina Owned Patents. 
(a)On the terms and conditions of this Agreement, Illumina, on behalf of itself and its Affiliates, hereby grants to Sequenom and its Affiliates [...***...] a non-exclusive, irrevocable and perpetual (subject to Section 2.2(b)), non-transferable and non-assignable (except as permitted under Section 9.1) worldwide  non-sublicensable Test Fee -bearing license under the Illumina Owned Patents to Exploit NIPT LDT Tests in the NIPT LDT Field. 
(b)The license rights set forth in Section 2.2(a) granted to any Affiliate of Sequenom shall automatically terminate with respect to such Person when it ceases to be an Affiliate of Sequenom. Persons (other than [...***...]) that become Affiliates of Sequenom after the Effective Date shall be licensed under the license rights set forth in Section 2.2(a) only for those licensed acts that occur on and after the date it becomes an Affiliate. 

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(c)Illumina agrees on behalf of itself, its Affiliates, and their respective successors and assigns that, to the extent any Illumina Affiliate (a “Granting Illumina Affiliate”) is the owner (including joint owner) or in-licensee of any Pooled Patents for which Sequenom Parties have been granted rights hereunder (including under Ancillary Agreements), or the Granting Illumina Affiliate has granted rights hereunder (including under Ancillary Agreements) to any Sequenom Party, such rights granted to Sequenom Parties (i) shall not terminate following the date, if any, that such Granting Illumina Affiliate ceases to be an Affiliate of Illumina and that such rights shall continue after such date, with such rights under Illumina Owned Patents continuing to be perpetual and irrevocable on and after such date, subject to Section 2.2(b) and (ii) to the extent the Sequenom Parties received rights only from a Granting Illumina Affiliate under Pooled Patents and not from Illumina or another Affiliate that is not a Granting Illumina Affiliate, such rights shall become a direct license from Illumina under Illumina Owned Patents or, if applicable, a direct license from the applicable University Licensor under, and pursuant to the terms of, the applicable Illumina In-Licensed Patents.
2.3License to Illumina Under Sequenom Owned Patents and Isis Patents.
(a)On the terms and conditions of this Agreement, Sequenom, on behalf of itself and its Affiliates, hereby grants to Illumina and its Affiliates an exclusive, irrevocable and perpetual (subject to Section 2.3(b)), non-transferable and non-assignable (except as permitted under Section 9.1), worldwide license, with the exclusive right to grant sublicenses, under the Sequenom Owned Patents and Isis Patents, to Exploit NIPT LDT Tests in the NIPT LDT Field and to Exploit NIPT IVD Products in the NIPT IVD Field, provided that  the license is Royalty-bearing with respect to NIPT IVD Products and the license is Test Fee-bearing with respect to NIPT LDT Tests.  The foregoing license grant in the NIPT LDT Field is subject to (i) any and all Existing Sequenom Licenses, and (ii) the reservation of the non-exclusive right, on behalf of Sequenom and its Affiliates, to Exploit NIPT LDT Tests in the NIPT LDT Field and to grant sublicenses under the Isis Patents to Persons that are not Sequencing Platform Manufacturers for each such sublicensee to Exploit NIPT LDT Tests in the NIPT LDT Field in its, or as applicable its Affiliates’, clinical laboratories. 
(b)The license rights set forth in Section 2.3(a) granted to any Affiliate of Illumina shall automatically terminate with respect to such Person when it ceases to be an Affiliate of Illumina. Persons that become Affiliates of Illumina after the Effective Date shall be licensed under the license rights set forth in Section 2.3(a) only for those licensed acts that occur on and after the date it becomes an Affiliate.
(c)Sequenom agrees on behalf of itself, its Affiliates, and their respective successors and assigns that, to the extent any such Sequenom Affiliate (a “Granting Sequenom Affiliate”) is the owner (including joint owner) or in-licensee of any Pooled Patents for which Illumina Parties have been granted rights hereunder (including under Ancillary Agreements), or has granted rights hereunder (including under Ancillary Agreements) to any Illumina Party, such rights granted to Illumina Parties (i) shall not terminate following the date, if any, that such Granting Sequenom Affiliate ceases to be an Affiliate of Sequenom and that such rights shall continue to be perpetual and irrevocable on and after such date, subject to Section 2.3(b) and (ii) to the extent the Illumina Parties received rights only from a Granting Sequenom Affiliate under Pooled Patents and not from Sequenom or another Affiliate that is not a Granting Sequenom Affiliate, such rights shall become a direct license from Sequenom under Sequenom Patents.
2.4Amendments, Assignments, Licenses and Sublicenses Under CUHK Licenses.  The effectiveness of this Agreement is subject to the satisfaction in full, or the waiver by the Parties, of the due execution and delivery of the Settlement Agreement and the agreements required to be duly executed and 

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delivered pursuant to the terms of ARTICLE V thereof, of the satisfaction of the conditions precedent set forth therein, and of the following additional conditions precedent:
(a)The due execution and delivery by Sequenom and CUHK, and acknowledgment by Illumina, of the amendments to each of the CUHK Licenses (2008/2011) and the satisfaction of the conditions precedent set forth therein.
(b)The due execution and delivery by Sequenom, Illumina, and CUHK, of the assignment and novation from Sequenom to Illumina of each of the CUHK Licenses (2008/2011) and the satisfaction of the conditions precedent set forth therein.
(c)The due execution and delivery by Sequenom and Illumina of the sublicenses from Illumina to Sequenom Parties (excluding Affiliates that are Sequencing Platform Manufacturers) under each of the CUHK Licenses (2008/2011) and the satisfaction of the conditions precedent set forth therein.
(d)The due execution and delivery by Illumina and CUHK of each of the CUHK Licenses (2014), and the satisfaction of the conditions precedent set forth therein.
(e)The due execution and delivery by Sequenom and Illumina of the sublicenses from Illumina to Sequenom Parties (excluding Affiliates that are Sequencing Platform Manufacturers) under each of the CUHK Licenses (2014), and the satisfaction of the conditions precedent set forth therein. 
2.5Sublicense Under Stanford License.  The effectiveness of this Agreement is subject to the satisfaction in full, or the waiver by the Parties, of the due execution and delivery by Sequenom and Illumina of the Stanford Sublicense Agreement. 
2.6Sublicense Under [...***...].  The effectiveness of this Agreement is subject to the satisfaction in full, or the waiver by the Parties, of the due execution and delivery by Sequenom and Illumina of the sublicense from Illumina Parties to Sequenom Parties (excluding Affiliates that are Sequencing Platform Manufacturers) under the [...***...]. 
2.7Isis Patents.  The effectiveness of this Agreement is subject to the due execution and delivery by Sequenom and Isis of a valid and binding agreement pursuant to which Sequenom purchases from Isis all right title and interest in and to the Isis Patents and receives full legal and beneficial title thereto, subject to the rights described in Schedule 7.1(b), and the satisfaction of any and all conditions precedent set forth therein. Sequenom represents and warrants that the Isis Patents were sold, assigned and transferred to Sequenom, and the provisions of this Section 2.7 have been satisfied in full, before the Effective Date.

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2.8Conditions for Illumina to Grant Licenses Under Pooled Patents.
(a)Test Fee; Conveyance of Customer License to Illumina Customers.  Subject to the terms and conditions of this Agreement (including Section 1.1(a) (Non-Illumina Platforms) and Section 2.9(a)(i) (Sequenom Granting Licenses Under Isis Patents), and rights expressly retained by Sequenom to grant sublicenses to Persons to Exploit NIPT LDT Tests in the NIPT LDT Field in such Person’s, or as applicable its Affiliates’, clinical laboratory under the Isis Patents), the Illumina Parties have the exclusive right to grant licenses to perform NIPT LDT Tests in the NIPT LDT Field to any Person under any and all the Pooled Patents, provided the license obligates the Person to pay a Test Fee on terms consistent with Section 3.2 of this Agreement (each a “New Illumina Licensee”).  Subject to the immediately preceding sentence, including obligations regarding Test Fees, the Illumina Parties may grant licenses under Pooled Patents to Illumina Customers who purchase Illumina Products, which licenses authorize the Illumina Customer, with each unit of consumable Illumina Product purchased, to Exploit, including a subset of the rights constituting Exploitation, NIPT LDT Tests in the NIPT LDT Field using Illumina Products (each such license an “Illumina Customer License”). 
(b)Sale of Illumina Products without an Illumina Customer License.  Notwithstanding Section 2.8(a) or any other term in this Agreement or any Ancillary Agreement but subject to Illumina’s obligation under Section 3.2(b)(v), Illumina and its Affiliates may supply Illumina Products, without an Illumina Customer License, to [...***...]. In the event that Illumina or an Affiliate does so [...***...].  
(c)Conveyance of License for NIPT IVD Product.  With each NIPT IVD Product that is covered by a Valid Claim of a Pooled Patent that is sold by Illumina and its Affiliates, Illumina and its Affiliates shall include a label license under Pooled Patents authorizing use of that unit of NIPT IVD Product for the labeled intended use in the NIPT IVD Field under the applicable Pooled Patents.
(d)Third Parties in Litigation with Sequenom.  A Third Party in litigation over a Pooled Patent with Sequenom or a Sequenom Affiliate as of the Effective Date is an “Existing Sequenom Litigant.”  Sequenom has identified Existing Sequenom Litigants, and the Pooled Patents subject to each such litigation as of the Effective Date, on Schedule 2.8(d), which Schedule 2.8(d) shall be amended by notice from Sequenom in the event that a litigant settles or is dismissed or is otherwise dropped from the applicable litigation, and may be amended by mutual agreement of the Parties in writing from time to time.  An Illumina Party shall not [...***...], except as Illumina and Sequenom may otherwise agree in advance in writing.  Notwithstanding the foregoing, no term in this Agreement or any Ancillary Agreement prohibits Illumina Parties from [...***...].
(e)Third Parties in Litigation with Illumina.  A Third Party in litigation over any Pooled Patent with Illumina or an Illumina Affiliate as of the Effective Date is an “Existing Illumina Litigant.”  Except as expressly stated in this Section 2.8(e), no term in this Agreement or any Ancillary Agreement prohibits Illumina from [...***...] [...***...].   Illumina shall provide Sequenom with a written accounting of any such amounts collected in settlement or as an award or reimbursements, and the allocations pursuant to the terms of this Section 2.8(e). Except as provided in Section 2.8(d), Illumina shall not [...***...].

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(f)Non-Illumina Platforms.
(i)Subject to the terms and conditions of this Agreement, including the right of Sequenom Parties to grant sublicenses under Isis Patents only to a Person to Exploit NIPT LDT Tests in the NIPT LDT Field in that Person’s, or as applicable its Affiliates’, clinical laboratory, Illumina has the exclusive right to grant licenses to or to authorize any Person under the Pooled Patents to Exploit NIPT LDT Tests in the NIPT LDT Field or Exploit NIPT IVD Products in the NIPT IVD Field on any manufacturers’ platform, including non-Illumina platforms, subject to Sequenom’s prior written consent to the overall economic terms for any such license that expressly permits such Exploitation in the Licensed NIPT Field on a non-Illumina platform under terms that are less favorable to Sequenom set forth in this Agreement (“Other Platform License”), which consent shall not be unreasonably withheld, delayed or conditioned.  As between Sequenom and Illumina, Illumina shall have the right to retain all types of economic consideration (whether one-time payments, royalties, continuing payments or other payment types) paid by all Persons under an Other Platform License described in the preceding sentence until such time as Illumina has received under this sentence the aggregate amount of [...***...].  Thereafter, with respect to consideration received under Other Platform Licenses (A) consideration received for Exploitation of NIPT LDT Tests under Pooled Patents will be treated as Test Fees and shared between the Parties in accordance with Section 3.2(d), (B) consideration received for all sales of NIPT IVD Products under Pooled Patents will be treated under, and Illumina shall pay Royalties to Sequenom in accordance with, Section 3.3(c), and (C) all other types of economic consideration that are not within (A) or (B), (whether one-time payments, continuing payments or other payment types) paid by a Person under any such Other Platform License shall be shared between Illumina and Sequenom in the same proportion as for the Test Fees in accordance with Section 3.2(d)(i).
(ii)In the event that Sequenom undergoes a Change of Control [...***...] (including as part of an assignment of this Agreement in a bankruptcy or other financial restructuring of Sequenom), the provisions of this Section 1.1(a) shall apply with respect to how rights under the Pooled Patents to Exploit NIPT LDT Tests in the NIPT LDT Field or Exploit NIPT IVD Products on non-Illumina platforms may be made available to such Person, provided that in such event [...***...]
[...***...].
2.9Conditions for Sequenom Grant of Licenses under Isis Patents.
(a)Right to License Only Under Isis Patents; No Right to License for NIPT IVD Products.
(i)Sequenom Parties may grant licenses under the Isis Patents [...***...] for Exploitation of NIPT LDT Tests in the NIPT LDT Field in that Person’s, or as applicable its Affiliates’, clinical laboratory, subject to the obligation of the licensee to pay Test Fees in accordance with Section 2.8(f)(ii) and subject to Section 2.9(c).  Except as stated in the preceding sentence, Sequenom agrees on behalf of itself and all its Affiliates that neither it nor any of its Affiliates has any right to, and shall not, grant a license under any Pooled Patent to Exploit any NIPT LDT Test in the NIPT LDT Field or Exploit any NIPT IVD Product.
(ii)Without limiting the foregoing in Section 2.9(a)(i), Sequenom and its Affiliates may not, and shall not, grant licenses under the Pooled Patents, including the Isis Patents, to Exploit any NIPT IVD Product.
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(b)Test Fees.  [...***...], Sequenom agrees that any license granted by a Sequenom Party to a Person after the Effective Date that authorizes performance in the NIPT LDT Field under any Isis Patent(s) (“New Sequenom Licensee”), will include an obligation for that Person to pay a Test Fee on terms (including amounts) consistent with Section 3.2 of this Agreement and Sequenom will share Test Fees and other consideration received for such sublicenses in accordance with Section 3.2. 
(c)Settlement with Existing Sequenom Litigants.  No term in this Agreement, or any Ancillary Agreement prohibits Sequenom from settling any litigation with an Existing Sequenom Litigant, and Sequenom shall be entitled as part of any such settlement to grant rights to an Existing Sequenom Litigant under rights Sequenom retains under any Isis Patent, provided that Sequenom shall use commercially reasonable efforts to negotiate and enter into an agreement with such Existing Sequenom Litigant obligating such Existing Sequenom Litigant to pay a Test Fee in at least the amount set forth in Schedule 1 for rights under any Isis Patent or group of Isis Patents that authorizes the Existing Sequenom Litigant to perform NIPT LDT Tests in NIPT LDT Field in its, or its Affiliates’, clinical laboratory.  [...***...] [...***...].  Sequenom shall provide Illumina with a written accounting of any such amounts collected in settlement or as an award or reimbursements, and the allocations pursuant to the terms of this Section 2.9(c). Nothing in this Section 2.9(c) alters Illumina’s exclusive rights regarding NIPT IVD Product.
2.10Existing Sequenom Licensees.
(a)Sequenom and its Affiliates are parties to written agreements with Third Parties, entered into prior to the Effective Date and remaining effective as of the Effective Date, under which such Third Party (“Existing Sequenom Licensee”) is expressly authorized or licensed by Sequenom or its Affiliate to Exploit an NIPT LDT Test under one or more Sequenom Patents in the NIPT LDT Field (“Existing Sequenom License”).  The Existing Sequenom Licensees and Existing Sequenom Licenses are set forth on Schedule 2.10(a), which indicates which Existing Sequenom Licensees are Sequenom Technology Partners and other information. 
(b)As set forth in and on the terms and conditions of this Agreement, Sequenom shall be responsible for collecting, and shall use commercially reasonable efforts to collect, Test Fees for Licensed NIPT LDT Tests performed by Existing Sequenom Licensees under a grant of any rights under any Pooled Patents on and after the Effective Date.  [...***...].  All Test Fees paid by Existing Sequenom Licensees on and after the Effective Date are subject to sharing between Illumina and Sequenom in accordance with Section 3.2(d).
(c)For avoidance of doubt, no rights are granted under this Agreement to Existing Sequenom Licensees or Existing Illumina Licensees, however this Agreement shall not result in such existing licensees losing the rights under Sequenom Patents or under Illumina Patents that each was granted or received from Sequenom Party or an Illumina Party, respectively, prior to the Effective Date.
(i)[...***...]. 
(ii)[...***...].
(iii)Notwithstanding the foregoing, if an Existing Sequenom Licensee is obligated as of the Effective Date under a written Agreement, to which it is a party with a Sequenom Party 
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and was granted a right under Sequenom Patents (prior to assignment of CUHK License (2008/2011)) to perform a Licensed NIPT LDT Test in the NIPT LDT Field, in exchange for payment of Test Fees, in an amount that is $[...***...] or higher (based on currency exchange rates in effect on the Effective Date), for performance of such Licensed NIPT LDT Tests in its, or as applicable its Affiliates’, clinical laboratory, then the provisions of clause (i) of this Section 2.10(c) shall apply to that Existing Sequenom Licensee. 
2.11Existing Illumina Licensees.
(a)Illumina or its Affiliates are parties to written agreements with Third Parties, entered into prior to the Effective Date and remaining effective as of the Effective Date, under which such Third Party (“Existing Illumina Licensee”) is expressly authorized or licensed by an Illumina Party to Exploit NIPT LDT Test under one or more Pooled Patent in the NIPT LDT Field (“Existing Illumina License”). The Existing Illumina Licensees and Existing Illumina Licenses are set forth on Schedule 2.11(a), which indicates which Existing Illumina Licensees are Illumina Technology Partners and other information.  Existing Illumina Licenses include licenses or rights granted pursuant to supply agreements in effect on the Effective Date.
(b)On the terms and conditions of this Agreement, Illumina shall be responsible for collecting, and shall use commercially reasonable efforts to collect, Test Fees for Licensed NIPT LDT Tests performed in NIPT LDT Field by Existing Illumina Licensees under a grant of any rights under any Pooled Patents on and after the Effective Date.  For the avoidance of doubt, and as set forth in Section 3.2, the amount of Test Fees paid by Existing Illumina Licensees on an per test or annual basis may be less or more than the amounts, or at a less or more expensive price tier of annual Test Fees, on Schedule 1. All Test Fees paid by Existing Illumina Licensees on and after the Effective Date are subject to sharing between Illumina and Sequenom in accordance with Section 3.2(d).
2.12Transfers of NIPT Technology and Know How.
(a)Subject to Section 2.12(b) Illumina and Sequenom and their respective Affiliates each may enter into and perform under Technology Agreements with Third Parties as set forth in this Section 2.12. “Technology Agreement” means a written agreement under which (i) a Third Party receives from an Illumina Party certain know how and transfer of technology, and is authorized under Illumina Patents (for Technology Agreements entered into prior to Effective Date) or Pooled Patents (for Technology Agreements entered into on and after Effective Date) to use same to perform an NIPT LDT Test in NIPT LDT Field that is the same or substantially similar to the Illumina verifi® test or another Licensed NIPT LDT Test  covered by Pooled Patents, or (ii) a Third Party receives from Sequenom or its Affiliates certain know how and transfer of technology, and is authorized under Sequenom Patents (for Technology Agreements entered into prior to the Effective Date) or Isis Patents (for Technology Agreements entered into on and after Effective Date) to use same to perform an NIPT LDT Test in NIPT LDT Field that is the same or substantially similar to the Sequenom MaterniT21® test or another Licensed NIPT LDT Tests covered by Pooled Patents.  A Third Party who enters into a Technology Agreement with an Illumina Party is an “Illumina Technology Partner,” and a Third Party who enters into a Technology Agreement with Sequenom or an Affiliate is a “Sequenom Technology Partner.”  The Illumina Technology Partners and Sequenom Technology Partners as of the Effective Date are identified 
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on Schedules 2.11(a) and 2.10(a), respectively. This Agreement shall be amended by the Parties on a quarterly basis or otherwise upon notification by one Party to the other, to revise Schedules 2.11(a) and 2.10(a) to identify any new Third Party that becomes an Illumina Technology Partner or a Sequenom Technology Partner after the Effective Date and to identify which Existing Illumina Licenses and Existing Sequenom Licenses (including those with existing Technology Partners) are terminated or expired.
(b)Illumina shall obligate Illumina Technology Partners and Sequenom shall obligate Sequenom Technology Partners to pay a Test Fee on terms consistent with Section 3.2 of this Agreement.  [...***...]. 
(c)Illumina represents that all Illumina Technology Partners under a Technology Agreement in effect as of the Effective Date have received rights under one or more Illumina Patents (prior to assignment and novation of the CUHK Licenses (2008/2011)) and, therefore, are Existing Illumina Licensees and, except as set forth on Schedule 7.1(c)(ix),  are subject to payment of Test Fees on terms consistent with Section 3.2 of this Agreement.
(d)Sequenom represents that all Sequenom Technology Partners under a Technology Agreement in effect as of the Effective Date have received rights under one or more Sequenom Patents (prior to assignment and novation of the CUHK Licenses (2008/2011)) and, therefore, are Existing Sequenom Licensees and are subject to payment of Test Fees on terms consistent with Section 3.2 of this Agreement.
2.13Non-Assertion Covenants.
(a)Sequenom, on behalf of itself and its Affiliates and their respective predecessors, successors and assigns (each a “Sequenom Covenant Party”), hereby covenants not to directly (e.g., by itself) or indirectly (e.g., through a “strawman”, other involvement for or with a Third Party, or otherwise) (i) sue (or purport to sue) in any forum, (ii) assign to any Third Party any right to sue in any forum, nor (iii) in any way support or encourage any Third Party in suing in any forum, any Illumina Protected Party (as defined below) for infringement of any Patent that (x) is owned or controlled by Sequenom or any of its Affiliates as of or after the Effective Date and (y) has its earliest priority date as of or before the Effective Date, in each case excluding (1) the Pooled Patents, (2) in the event of the Change of Control of Sequenom, all Patents of the Third Party acquirer, successor or survivor in such Change of Control, and its Affiliates, immediately prior to such Change of Control, and (3) in the event of the Change of Control of either Sequenom or Illumina, all Patents first owned or controlled by Sequenom or any of its Affiliates immediately after such Change of Control, wherein such suit for infringement of any such Patent alleges that the Exploitation of any Current Illumina Product by Illumina or its Affiliates and, solely to the extent any of the following Persons are expressly authorized to Exploit any Current Illumina Product and are acting within the scope of such express authorization (including paying Test Fees if a (sub)licensee or if otherwise so required to make payment as a condition of authorization): manufacturers, distributors, resellers, (sub)licensees and customers (each of the Illumina Parties and the foregoing Persons an “Illumina Protected Party”), infringes, or induces or contributes to the infringement of, any such Patent.  With respect to subclause (3) herein, applications (and patents that issue therefrom) that are continuations, divisionals, continuation-in-parts, or substitute applications claiming earliest priority from a Patent that was subject to the covenant in this Section 2.13(a) prior to the date of the Change of Control, are deemed 
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to be Patents first owned or controlled by Sequenom or any of its Affiliates before the date of that Change of Control. Notwithstanding the foregoing or anything in this Agreement, the covenant in this Section 2.13(a) shall not apply to the extent any Illumina Protected Party infringes (directly or indirectly) a Patent claim that covers general platform technology of a Sequencing Platform Manufacturer that is an Affiliate of Sequenom solely to the extent claiming multi-purpose (i.e., useful in multiple fields of use) consumables, reagents, instruments (or components of instruments), software or accessories.  This non-assertion covenant shall be a covenant that transfers with, and burdens, any sale, license, assign, or other disposition, transfer or grant of rights under the applicable Patent including with respect to the disposition of any rights in any license agreement pertaining thereto.  Each Sequenom Covenant Party shall impose the foregoing non-assertion covenant on any Third Party to which such Sequenom Covenant Party may sell, license, assign or otherwise dispose of, transfer or grant any rights to or under the applicable Patent, but only to the extent such rights sold, licensed, assigned or otherwise disposed of, transferred or granted give the Third Party the right to enforce such Patent against an Illumina Protected Party.
(b)Illumina, on behalf of itself, its Affiliates and their respective predecessors, successors and assigns (each an “Illumina Covenant Party”), hereby covenants not to directly (e.g., by itself) or indirectly (e.g., through a “strawman”, other involvement for or with a Third Party, or otherwise) (i) sue (or purport to sue) in any forum, (ii) assign to any Third Party any right to sue in any forum, nor (iii) in any way support or encourage any Third Party in suing in any forum any Sequenom Protected Party (as defined below) for infringement of any Patent that is (x) is owned or controlled by Illumina or any of its Affiliates as of or after the Effective Date and (y) has its earliest priority date as of or before the Effective Date, in each case excluding (1) the Pooled Patents, (2) in the event of the Change of Control of Illumina, all Patents of the Third Party acquirer, successor or survivor in such Change of Control, and its Affiliates, immediately prior to such Change of Control, and (3) in the event of the Change of Control of either Sequenom or Illumina, all Patents first owned or controlled by Illumina or any of its Affiliates immediately after such Change of Control, wherein such suit for infringement of any such Patent alleges that the Exploitation of any Current Sequenom Product by any Sequenom Party and, solely to the extent any of the following Persons are expressly authorized to Exploit any Current Sequenom Product and are acting within the scope of such express authorization (including payment of Test Fees if a (sub)licensee or if otherwise so required to make payment as a condition of authorization): distributors, resellers, (sub)licensees and customers (each of the Sequenom Parties and the foregoing Persons, a “Sequenom Protected Party”), infringes, or induces or contributes to the infringement of, any such Patent. With respect to subclause (3) herein, applications (and patents that issue therefrom) that are continuations, divisionals, continuation-in-parts, or substitute applications claiming earliest priority from a Patent that was subject to the covenant in this Section 2.13(b) prior to the date of the Change of Control, are deemed to be Patents first owned or controlled by Illumina or any of its Affiliates before the date of that Change of Control. Notwithstanding the foregoing or anything in this Agreement, the covenant in this Section 2.13(b) shall not apply to the extent any Sequenom Protected Party infringes (directly or indirectly) a Patent claim that covers general platform technology of an Illumina Party solely to the extent claiming multi-purpose (i.e., useful in multiple fields of use) consumables, reagents, instruments (or components of instruments), software or accessories.   This non-assertion covenant shall be a covenant that transfers with and burdens any sale, license assign, or other disposition, transfer or grant of rights under the applicable Patent, including with respect to the disposition of any rights in any license agreement pertaining thereto.  Each Illumina Covenant Party shall impose the foregoing non-assertion covenant on any Third Party to which such Illumina Covenant Party may sell, license, assign or otherwise dispose of, transfer or grant any rights to or under the applicable Patent, but only to the extent such rights sold, licensed, assigned or otherwise disposed of, transferred or granted give the Third Party the right to enforce such Patent against a Sequenom Protected Party. 

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(c)Each Sequenom Covenant Party hereby covenants not to directly (e.g., by itself) or indirectly (e.g., through a “strawman”, other involvement for or with a Third Party, or otherwise) (i) sue (or purport to sue) in any forum, (ii) assign to any Third Party any right to sue in any forum, nor (iii) in any way support or encourage any Third Party in suing in any forum  alleging that the Exploitation of any Current Illumina Product by any Illumina Party infringes any Pooled Patent. Nothing in this Section 2.13(c) alters any obligation to pay Test Fees and/or Royalties in accordance with the terms of this Agreement.
(d)Each Illumina Covenant Party hereby covenants not to directly (e.g., by itself) or indirectly (e.g., through a “strawman”, other involvement for or with a Third Party, or otherwise) (i) sue (or purport to sue) in any forum, (ii) assign to any Third Party any right to sue in any forum, nor (iii) in any way support or encourage any Third Party in suing in any forum alleging that the Exploitation of any Current Sequenom Product by any Sequenom Party infringes any Pooled Patent. Nothing in this Section 2.13(d) alters any obligation to pay Test Fees and Royalties in accordance with the terms of this Agreement.
2.14[...***...] Patents.  Sequenom, on behalf of itself and its Affiliates, agrees [...***...], it shall not undertake to expand the scope of the claims of the Patents as such claims exist as of the Effective Date. 
2.15[...***...] Patents.  Illumina, on behalf of itself and its Affiliates, represents and warrants [...***...].
2.16HDFN Products.  Notwithstanding anything to the contrary in this Agreement, solely with respect to NIPT LDT Tests in each case that are solely directed to fetal blood antigen testing associated with hemolytic disease of the fetus and newborn (“HDFN Products”), each Party shall be permitted to Exploit such HDFN Product in the NIPT LDT Field and, if such Exploitation of an HDFN Product is covered by a Valid Claim of an Isis Patent, but not covered by a Valid Claim of any other Pooled Patent, then such Party shall have no obligation under this Agreement to collect or share a Test Fee or other consideration with the other Party.
2.17Additional Rights.
(a)The Patents set forth on Schedule 2.17(a) are exclusively licensed by Sequenom from CUHK and are not Pooled Patents. Upon Illumina’s request, Sequenom will negotiate in good faith commercially reasonable terms under which Sequenom would grant Illumina a sublicense under the Patents on Schedule 2.17(a).
(b)The Patents set forth on Schedule 2.17(b) are solely owned by Sequenom and are not Pooled Patents.  In the event Sequenom licenses any of the Patents on Schedule 2.17(b) to any Third Party (other than in settlement of litigation), then upon Illumina’s request, Sequenom will negotiate in good faith with Illumina a license under the Patents on Schedule 2.17(b) [...***...].

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ARTICLE III
CONSIDERATION
3.1One-Time Payment.  A one-time, non-refundable payment of fifty million dollars (US$50,000,000) shall be payable by Illumina, in three installments, in recognition of the settlement of the disputes, grants of exclusivity and other rights granted to Illumina as set forth in this Agreement and the Ancillary Agreements (the “One-Time Payment”).  Within one (1) Business Day after the Effective Date, Illumina shall pay to Sequenom forty four million dollars (US$44,000,000) of the One-Time Payment.  Within five (5) Business Days after the [...***...], Illumina shall pay to Sequenom two million dollars (US$2,000,000).  Within five (5) Business Days after the [...***...], Illumina shall pay to Sequenom four million dollars (US$4,000,000).  In the event [...***...], Illumina shall have the right to credit one million dollars (US$1,000,000) of the One-Time Payment against any and all amounts owed by Illumina to Sequenom under this Agreement until the full one million dollars (US$1,000,000) has been credited.  In the event [...***...], Illumina shall have the right to credit two million dollars (US$2,000,000) of the One-Time Payment against any and all amounts owed by Illumina to Sequenom under this Agreement until the full two million dollars (US$2,000,000) has been credited.  Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement is intended by the Parties to, and nothing in this Agreement shall, [...***...].
3.2Test Fees for Performance of Licensed NIPT LDT Test.
(a)Selected Definitions.  For purposes of this Agreement:
(i)A “Licensed NIPT LDT Test” means an NIPT LDT Test the performance of which is covered by a Valid Claim of a Pooled Patent, wherein the Person performing the NIPT LDT Test received the right, license or other authorization to Exploit that NIPT LDT Test under that Pooled Patent, subject to Section 3.2(b).
(ii)An “Authorized Lab” means any Person that receives the right, license or other authorization pursuant to the terms and conditions of this Agreement to Exploit a Licensed NIPT LDT Test under at least one Pooled Patent. Without limitation, each of the following is an Authorized Lab to the extent of its rights under the Pooled Patent(s) under which it received right, license or other authorization:  (A) each Sequenom Party, (B) Sequenom Technology Partners, (C) Existing Sequenom Licensees (which includes Sequenom Technology Partners existing on Effective Date), (D) Illumina Parties, (E)  Illumina Technology Partners,  (F) Existing Illumina Licensees (which includes Illumina Technology Partners existing on Effective Date), (G) any and all Illumina Customers who receive an Illumina Customer License with purchase of Illumina Products, (H) any New Sequenom Licensee, and (I) any New Illumina Licensee.  For the avoidance of doubt, an Authorized Lab may be described by more than one category of (A) through (I).  An Authorized Lab shall be an Authorized Lab only for so long as it has a right, license or other authorization to Exploit Licensed NIPT LDT Tests under one or more Pooled Patents pursuant to the terms and conditions of this Agreement.  

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(iii)A “Test Fee” means the per test amount that is payable by an Authorized Lab when a Licensed NIPT LDT Test is performed by such Authorized Lab as a fee-for-service or reimbursable offering (whether or not Authorized Lab is paid or reimbursed for the test), such amount set in accordance with Section 3.2(c) and payable and/or creditable in accordance with Section 3.2(b).
(b)Payment and Collection of Test Fees.  Illumina or Sequenom, as applicable, shall obligate, pursuant to written agreements therewith (or this Agreement with respect to Sequenom Parties and Illumina Parties), every Authorized Lab to pay a Test Fee for any and all (subject to Section 1.1(a)(i)) Licensed NIPT LDT Tests performed by such Authorized Lab as follows:
(i)Sequenom shall be responsible for all Test Fees that are payable under this Agreement for any and all Licensed NIPT LDT Tests performed by Sequenom Parties (Authorized Labs A), and Illumina shall be responsible for all Test Fees that are payable under this Agreement for any and all Licensed NIPT LDT Tests performed by Illumina Parties (Authorized Labs D).
(ii)Illumina shall use commercially reasonable efforts to collect Test Fees that are payable by Illumina Technology Partners, Existing Illumina Licensees, and Illumina Customers who receive an Illumina Customer License (Authorized Labs - E, F, G), and any other Authorized Lab (I) that receives the applicable right, license or authorization from an Illumina Party, for any and all Licensed NIPT LDT Tests performed by such Persons.
(iii)Sequenom shall use commercially reasonable efforts to collect Test Fees that are payable by its Sequenom Technology Partners, Existing Sequenom Licensees, and any New Sequenom Licensees (Authorized Labs - B, C and H) for any and all Licensed NIPT LDT Tests performed by such Persons.
(iv)In the event there is an Authorized Lab that is not in a category addressed in this Section 3.2(b), Illumina and Sequenom shall mutually agree on which of them shall be responsible for using commercially reasonable efforts to collect Tests Fees payable by such an Authorized Lab.
(v)Each Party shall and shall cause its Affiliates to forego any conduct the intent of which is to prevent the collection or sharing of Test Fees or other consideration between the Parties in accordance with the terms of this Agreement.
(vi)Any consideration received by an Illumina Party or a Sequenom Party from any Person for a license under a Pooled Patent to Exploit an NIPT LDT Test in the NIPT LDT Field, that is not in the form of Test Fees, shall be shared between Illumina and Sequenom in accordance with Section 3.2(d).
(vii)To the extent any Illumina Party or Sequenom Party entered into prior to the Effective Date any agreement that obligates an Authorized Lab to pay a Test Fee for performance of an NIPT LDT Test that is covered by a Valid Issued Claim or any pending claim of a Pooled Patent (including pending claims of the Illumina Owned Patents, Sequenom Owned Patents and Isis Patents), and such Authorized Lab pays such Test Fee, then such NIPT LDT Test shall be deemed to be a Licensed NIPT LDT Test and all such Test Fees collected under such agreements shall be shared between the Parties in accordance with this Agreement.
(c)Determination of Test Fee Amounts.  Test Fee amounts will be determined as follows:

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(i)Except as expressly stated otherwise in this Agreement (including in Section 1.1(a)(i) (Exceptions to Amount of Test Fee), Section 2.8(e) (Third Parties in Litigation with Illumina), Section 1.1(a) (Non-Illumina Platforms) and Section 2.9(c) (Settlement with Existing Sequenom Litigants)), each Illumina Party or Sequenom Party shall enter into written agreements with Persons it grants rights, licenses, or authorizations as an Authorized Labs such that the Authorized Lab is obligated to pay Test Fees on a quarterly basis, and Sequenom Parties and Illumina Parties shall be obligated to pay Test Fees on a quarterly basis. (A) Except as stated below with respect to Licensed NIPT LDT Test for which the Test Fee is equal to [...***...].  With respect to Licensed LDT Tests performed by an Authorized Lab during the first calendar year of its agreement under which it received the right to perform Licensed NIPT LDT Tests, the Test Fee amount that the Authorized Lab shall pay for Licensed NIPT LDT Tests performed during the first calendar year of that agreement shall be no lower than the amount of Test Fee on Schedule 1, Section 3 that corresponds to the good faith estimate of the volume that Authorized Lab will achieve at the end of that first calendar year. For agreements entered into within six months before the end of a calendar year, the first annual calculation of the Test Fee amount payable by the Authorized Lab will be for the period ending on December 31 of the first full calendar year of that agreement.  The quarterly Test Fees for an Authorized Lab shall be in amounts that result in at least the product of (1) the number of Licensed NIPT LDT Tests performed by that Authorized Lab in that quarter with (2) the Test Fee amount in effect for that Authorized Lab in that quarter, plus an amount equal to the product of the annual number of Licensed NIPT LDT Tests in (1) that are subject to the additional $[...***...] fee as set forth on Schedule 1 multiplied by $[...***...].  (B) With respect to each Licensed NIPT LDT Test for which the Test Fee is equal to [...***...].  For the avoidance of doubt, notwithstanding the minimum amounts payable in accordance with the first sentence of this Section 3.2(c), the full amount of all Test Fees collected by Illumina and Sequenom from Authorized Labs shall be shared between the Parties as set forth in Section 3.2(d) (Sharing of Test Fee Amounts.) 
(ii)Exceptions to Amount of Test Fee.
(1)Illumina Licensees.  Illumina shall use commercially reasonable efforts to collect a Test Fee from Existing Illumina Licensees (including Illumina Technology Partners in existence as of the Effective Date) and New Illumina Licensees in the amounts governed by the terms of the applicable Existing Illumina License (including an applicable Technology Agreement) as modified by this Section 3.2(c)(ii).  [...*****Confidential Treatment Requested*...].  Notwithstanding anything to the contrary in this Agreement, any and all amounts for Test Fees received by Illumina from an Existing Illumina Licensee or New Illumina Licensee, including amounts in excess of the Test Fee that would otherwise be due under this Agreement, shall be subject to sharing with Sequenom in the same manner and amount as set forth in Section 3.2(d) (Sharing of Test Fees).

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(2)Existing Sequenom Licensees.  Sequenom shall use commercially reasonable efforts to collect a Test Fee from Existing Sequenom Licensees (including Sequenom Technology Partners in existence as of the Effective Date) and New Sequenom Licensees  in the amounts governed by the terms of the applicable Existing Sequenom License (including an applicable Technology Agreement) as modified by this Section 1.1(a)(i).  If an Existing Sequenom Licensee is obligated under an Existing Sequenom License to pay a per test fee upon performance of a NIPT LDT Test that is less than the amount that Sequenom would otherwise be obligated to charge under the provisions of Sections 3.2(c)(i), then Sequenom shall not be under any obligation to raise the Test Fee amounts payable by that Existing Sequenom Licensee from the amount set forth in that Existing Sequenom License and the Test Fees amounts collected by Sequenom on such basis shall be shared with Illumina in accordance with this Agreement. [...****...]. Notwithstanding anything to the contrary in this Agreement, any and all amounts for Test Fees (and their equivalents) received by Sequenom from an Existing Sequenom Licensee or New Sequenom Licensee, including amounts in excess of the Test Fee due under this Agreement shall be subject to sharing with Illumina in the same manner and amount as set forth in Section 3.2(d) (Sharing of Test Fees).
(3)With respect to Existing Sequenom Licensees and New Sequenom Licensees that are Authorized Labs, which have received less than full rights under all Pooled Patents to perform NIPT LDT Tests in the NIPT LDT Field, in the event an Illumina Party enters into a later agreement with such Authorized Lab to extend the rights under the Pooled Patents granted to such Authorized Lab under which such Authorized Lab is authorized to perform Licensed NIPT LDT Tests, Illumina shall be entitled to offer such extended rights at Test Fee amounts lower than those set forth in Schedule 1 in order to facilitate the later agreement with such Authorized Lab in view of the Test Fee amounts already owed pursuant the earlier agreement.  In any such case, Illumina shall not require such Authorized Lab or any existing Illumina Licensee to pay an additional amount of Test Fees (for the total rights received from Sequenom and from Illumina) that would result in the aggregate amount of Test Fees paid by that Authorized Lab to be in excess of the Test Fees set forth in Schedule 1. 
(4)Research and Development.     The Test Fee is [...***...] for a Licensed NIPT LDT Test (A) that is performed by an Authorized Lab for internal research or development in the NIPT LDT Field, and (B) for which the Authorized Lab did not receive compensation on a per test basis (individually or as a lot of tests) for such Licensed NIPT LDT Test, and (C) the results of such Licensed NIPT LDT Test were not reported back to a subject or her physician or used for commercial purposes.
(iii)[...***...].
(1)Adjustment to Test Fee Schedule. Illumina shall have the right to adjust the Test Fee Schedule [...***...] on a market segment (including geographic or product segment) basis to reflect such market changes, upon written notice to and consent of Sequenom. Upon receipt of such notice [...***...], Sequenom shall consider in good faith whether or not to consent, such consent not to be unreasonably withheld, delayed or conditioned. As promptly as practicable, [...***...], Sequenom shall notify Illumina of its decision to consent or to withhold consent and its reasons therefor.  If Sequenom has not responded in writing within the specified time, then it shall be deemed to have consented and Illumina may proceed with such reduced Test Fee structure for that market segment. In the event of a dispute between the Parties regarding adjustment of amounts in this clause (1), the procedures set forth on Schedule 2 shall govern the resolution of such Dispute.
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(2)[...***...] Test Fees for Potential Future Authorized Labs. Each Party shall have the right to request that Test Fees be adjusted [...***...] for a particular Person that is a potential future Authorized Lab, upon notice to and consent from the other Party. Upon receipt of such notice requesting a reduced Test Fee structure for a particular Person (other than the Parties or their respective Affiliates), the other Party shall consider in good faith whether or not to consent, such consent not to be unreasonably withheld, delayed or conditioned, on a case by case basis, to charging [...***...] to such Person if such [...***...] is reasonably necessary or useful to promote adoption of Licensed NIPT LDT Tests in that Person’s clinical laboratory [...***...].  As promptly as practicable, but in no event later than [...***...] after receiving such notice, the other Party shall notify the requesting Party of its decision to consent or to withhold consent and its reasons therefor.  If the other Party has not responded in writing within the specified time, then the other Party shall be deemed to have consented and the requesting Party may proceed with such [...***...] for that Authorized Lab. [...***...].
(3)In the event the Test Fee Schedule is adjusted [...***...] pursuant to the procedure in clause (1) in this Section 3.2(c)(iii), then Schedule 1 automatically shall be amended to reflect such [...***...] adjustment for the applicable market segment, and thereafter shall be applicable to Test Fees payable by the Illumina Parties, Sequenom Parties and new Authorized Labs authorized after the adjustment date and, pursuant to each Party’s rights to adjust Test Fees as set forth in Section 1.1(a)(i), payable by the Parties’ then-existing licensees.
(d)Sharing of Test Fees.
(i)Sharing of Test Fees Between Illumina and Sequenom.  The aggregate Test Fees collected by Illumina and Sequenom in a particular calendar quarter from Authorized Labs, including the Test Fees payable by Sequenom Parties and Illumina Parties as Authorized Labs (in amounts prior to any allocation of Test Fees between Illumina and Sequenom or deductions or credits), are the “Gross Test Fees” Illumina and Sequenom will share Gross Test Fees as follows: 
(1)For Licensed NIPT LDT Tests performed by Authorized Labs anywhere in the world, excluding [...***...], Illumina shall be entitled [...***...] of the Gross Test Fees collected and Sequenom shall be entitled to [...***...] of the Gross Test Fees collected, subject to Section 3.2(d)(ii).
(2)For Licensed NIPT LDT Tests performed by Authorized Labs in [...***...], Illumina shall be entitled to [...***...] of the Gross Test Fees collected and Sequenom shall be entitled to [...***...] of the Test Fees collected, subject to Section 3.2(d)(ii).
(ii)Illumina shall be responsible for any amounts owed to its third party licensors (including University Licensors), and Sequenom shall be responsible for any amounts owed to its third party licensors or Isis, provided that, Illumina may credit or [...***...] of all of Illumina’s payments to CUHK pursuant to the CUHK Licenses (including all amounts paid or payable to CUHK after termination or expiration of such CUHK Licenses, pursuant to the terms of any such CUHK License), based on performance of NIPT LDT Tests by Authorized Labs (including royalties, milestone payments, and any recurring payments to the extent related to performance of NIPT LDT Tests, and minimum guarantees, bonus payments, any payments to make up for shortfalls in payments not made by sub-licensee or a sublicensee of a sublicensee, but excluding Patent Costs, the sharing of which is addressed in Section 5.2) against the 
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amounts owing to Sequenom based on the sharing of Gross Fees hereunder. Subject to Section 3.5 (Minimum Payments), payments by one Party to the other Party necessary to effectuate the sharing of Gross Test Fees set forth in this Section 3.2(d) shall be made in accordance with Section 3.4 (Payments and Reports).
(iii)If any University License, pursuant to which any Illumina In-Licensed Patents are licensed to Illumina, is terminated and Sequenom and its Affiliates obtain a direct license from the applicable University Licensor under such Illumina In-Licensed Patents, thereafter (1) Sequenom shall be responsible for the payment of all amounts owing to such University Licensor for sales by Sequenom and its Affiliates under such Illumina In-Licensed Patents, (2) Sequenom shall continue to be responsible for all payment obligations to Illumina set forth in this Agreement, including payment of Test Fees, and (3) Sequenom shall have the right to credit against Illumina’s portion of shared consideration under this Agreement all such amounts owing to such University Licensor (other than CUHK) for sales by Sequenom and its Affiliates under such Illumina In-Licensed Patents up to the amounts that Illumina would have paid to University Licensor if it had remained the direct licensee. 
3.3Royalties on NIPT IVD Products.
(a)For any country, in which there is, at the time of sale of the applicable NIPT IVD Product, a Valid Issued Claim in such country covering that NIPT IVD Product, Illumina shall pay Sequenom a royalty of [...***...] of Net IVD Sales of such NIPT IVD Product sold by Illumina and its Affiliates during the Patent Royalty Term in the NIPT IVD Field in such country.  Notwithstanding the foregoing [...***...] shall be due under this Agreement for sales of instruments, hardware or sale or sale/license of general or multi-purpose software.
(b)For any country, other than [...***...], (i) in which there is not, at the time of sale of the applicable NIPT IVD Product, a Valid Issued Claim in that country covering that NIPT IVD Product, and (ii) if that NIPT IVD Product had been sold in another country at the same time, the sale or use thereof in such other country would be covered by a Valid Issued Claim in such other country, then in the case of (i) and (ii) Illumina shall pay Sequenom a royalty of [...***...] of Net IVD Sales of such NIPT IVD Product sold by Illumina and its Affiliates in the NIPT IVD Field during the period beginning on the Effective Date and ending on the [...***...] anniversary thereof.  Notwithstanding the foregoing [...***...] shall be due under this Agreement for sales of instruments, hardware or sale/license of general or multi-purpose software.
(c)Illumina shall share with Sequenom any royalties received by Illumina or an Illumina Affiliate from a sublicensee (and its Affiliates), that is licensed under Pooled Patents to Exploit an NIPT IVD Product in the NIPT IVD Field, for sale of NIPT IVD Products in the NIPT IVD Field under such license to Pooled Patents, in the proportion set forth in Section 3.2(d). Illumina agrees that any sublicense granted to any Person under Pooled Patents to Exploit an NIPT IVD Product in the NIPT IVD Field will be for a royalty that is no less than [...***...]% of Net IVD Sales of NIPT IVD Products sold by such sublicensee (and its Affiliates) in the NIPT IVD Field.  For the avoidance of doubt, for the purpose of this Section 3.3(c), a Person that purchases NIPT IVD Product is not a sublicensee under Pooled Patents.  Notwithstanding the foregoing no Royalty shall be due under this Agreement for sales of instruments, hardware or sale/license of general or multi-purpose software.

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(d)“Royalty” and “Royalties” means the amount payable to Sequenom pursuant to Sections 3.3(a), 3.3(b), 3.3(c) and 3.3(g).  Notwithstanding anything to the contrary in this Agreement, (i) except as stated in part (iii) herein, a Royalty shall be calculated and due under this Agreement with respect to any and all NIPT IVD Products in the NIPT IVD Field sold, and subject to, and solely with respect to, the terms of Section 3.3(g), NIPT Components sold and used with NIPT IVD Product(s) to perform (in whole) NIPT, (ii) in the event any Person (including Illumina Parties, Sequenom Parties or any other Authorized Lab) purchases any NIPT IVD Product from or on behalf of an Illumina Party or a sublicensee as permitted hereunder, (except as stated in part (iii) herein) including to perform an NIPT LDT Test in the NIPT LDT Field and a Royalty is payable in accordance with Section 3.3(a)-(c) or 3.3(g) for such sale of the NIPT IVD Product, then no Test Fee shall be payable under this Agreement for the performance of such NIPT LDT Test, (iii) in the event of sale of an NIPT IVD Product in the NIPT IVD Field wherein the purchaser is expressly authorized by Illumina Party or sublicensee as permitted hereunder to use such product to perform NIPT for tests not included in the product label or protocols for use (e.g., for genetic conditions not included in label), then no Royalty shall be payable in accordance with Section 3.3(a)- (c) or 3.3(g) for such sale of the NIPT IVD Product, however a Test Fee shall be payable under this Agreement for the performance of such NIPT (whether the NIPT is deemed to be performed in the NIPT IVD Field or the NIPT LDT Field) and (iv) except as set forth in clauses (x) and (y) of the fourth paragraph of the definition of Net IVD Sales, under no circumstances shall more than one Royalty be payable for the same unit of NIPT IVD Product or NIPT Component sold.
(e)With respect to Net IVD Sales for NIPT IVD Products, Illumina shall be responsible for any amounts owed to its third party licensors (including University Licensors), and Sequenom shall be responsible for any amounts owed to its third party licensors, provided that, Illumina may credit or offset the full amount of all of Illumina’s payments to CUHK pursuant to the CUHK Licenses (including all amounts paid or payable to CUHK after termination or expiration of such CUHK Licenses, pursuant to the terms of any such CUHK License), based on sales of NIPT IVD Product (by Illumina Parties or sublicensees and their Affiliates) (including royalties, milestone payments, and any recurring payments to the extent related to sale of NIPT IVD Product, and minimum guarantees, bonus payments, any payments to make up for shortfalls in payments not made by sub-licensee or a sublicensee of a sublicensee, but excluding Patent Costs, the sharing of which is addressed in Section 5.2) against the Royalties owing to Sequenom on Net IVD Sales. 
(f)Subject to Section 3.5, payments by one Party to the other Party necessary to effectuate the Royalties provisions set forth in this Section 3.3 shall be made in accordance with Section 3.4 (d).
(g)To the extent Illumina, its Affiliates, or sublicensees described in Section 3.3(c),
(i)sells an NIPT IVD Product in the NIPT IVD Field for conduct or performance (in part, but not in whole) of NIPT,
(A)for which a Royalty is payable pursuant to Section 3.3(a), (b) or (c) upon such sale, and
(B)which sale (alone or together with NIPT Component(s)) conveys to the purchaser particular rights to conduct or perform (in whole) NIPT in accordance with product labeling or protocols of use without risk of infringing any Pooled Patent (e.g., convey through patent exhaustion, license, or covenant), and 

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(ii)sells together (whether under a single purchase order or under separate purchase orders) with such NIPT IVD Product other product(s) (whether NIPT IVD Product(s) or a non-NIPT IVD Product(s)) that is not an instrument, hardware, or general or multi-purpose software (such software being sold or licensed), but that is a required component, with NIPT IVD Product(s), to conduct or perform (in whole) NIPT, and (A) if each such other product(s) is the same or substantially the same as a product that, at the time of sale, is a component of an NIPT IVD Product of the seller that has received Regulatory Approval in the United States for conducting or performing (in whole) NIPT, or (B) in the event there is not such an NIPT IVD Product in (A), would be a component of an NIPT IVD Product of the seller for which an application for Regulatory Approval in the United States would be required for sale of such NIPT IVD Product for conducting or performing (in whole) NIPT (each such product an “NIPT Component”), then
(iii)Illumina shall pay Sequenom 
(A)a Royalty upon sale of such NIPT IVD Product sold, payable in accordance with Section 3.3(a), (b) or (c), as required,
(B)a Royalty on each NIPT Component sold, payable (1) only during the time period stated in the applicable clause (a), (b) or (c) of Section 3.3, (2) as a percentage of net sales of each such NIPT Component calculated in the same manner as set forth for calculation of Net IVD Sales (for the purpose of this Section 3.3(g)(iii)(B), each instance of NIPT IVD Product in “Net IVD Sales” is replaced with NIPT Component) and (3) in the percentage stated in such applicable clause (a), (b) or (c) of Section 3.3, as required, and
(C)Notwithstanding the foregoing or anything contrary in this Agreement, Illumina is not obligated to pay a Royalty on any NIPT Component that is used by an Authorized Lab to perform a Licensed NIPT LDT Test for which a Test Fee is owed to an Illumina Party or a Sequenom Party.
3.4Payment and Reports.
(a)Not later than forty five (45) calendar days after the last day of each calendar quarter, Sequenom and Illumina each shall provide the other with a written Test Fee and Royalty Report (each a “Test Fee and Royalty Report”), detailing separately for Japan and the rest of the world other than Japan (i) the names of all Third Party Authorized Labs for which that Party is obligated to collect Test Fees, (ii) the degree of compliance by each such Third Party Authorized Lab with its payment obligations under the applicable agreement  therewith, (iii) the aggregate number of Licensed NIPT LDT Tests performed by all such Authorized Labs, including by Sequenom Parties and Illumina Parties, during that period, including the number of Licensed NIPT LDT Tests that are subject to the additional $[...***...] added to the Test Fee and that are subject to a Test Fee in an amount equal to percentage of Net LDT Sales, (iv) the aggregate amount of Test Fees collected by such Party during that period, including for its own Licensed NIPT LDT Test and those of its applicable Affiliates, (v) the amount of the Test Fees collected by the reporting Party that is owed to the other Party during that period based on the sharing obligations set forth in Section 3.2(d) (Sharing of Test Fees), (vi) in the case of Illumina, the aggregate Net IVD Sales and the Royalties owed to Sequenom based on the Net IVD Sales, and the corresponding net sales and Royalties owed to Sequenom based on sales of NIPT Components as 
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provided for in Section 3.3(g)(iii)(B) above, (vii) all other consideration received by such Party during that period that is subject to sharing hereunder and the amount thereof owing to the other Party hereunder, (viii) in the case of Illumina, all amounts paid by Illumina to CUHK during such period pursuant to the CUHK Licenses (including all amounts paid or payable to CUHK after termination of such CUHK Licenses, pursuant to the terms of any such CUHK License), including as set forth in this Agreement in Section 3.2(d)(ii) and 3.3(e), (ix) a reasonably detailed report on any anomalous activity during the period, such as a Third Party’s licensee’s refusal to pay an owed amount or any other material exception to the expected performance by such Authorized Lab in relation to this Agreement, (x) the aggregate Net LDT Sales, and the number of tests upon which Net LDT Sales is based, by such Party or its Affiliates or  (sub)licensees under any Pooled Patent, as applicable, (xi) the Patent Cost incurred by that Party, (xii) in the case of Illumina, all amounts creditable in accordance with Section 3.1, and (xiii) based on the foregoing (i) through (xii), the net amount owed to the other Party for that period before taking into consideration the other Party’s Test Fee and Royalty Report for the same period.  Each Party shall provide its quarterly Test Fee and Royalty Report in a Microsoft excel-compatible spreadsheet (electronic and hard copy), or in another mutually acceptable spreadsheet format.  In the event that a University Licensor of Illumina under any Pooled Patent requires in its University License additional reporting relating to sales of NIPT LDT Tests, which reporting is not set forth in this Agreement, upon Illumina’s request therefor, Sequenom shall include in its Test Fee and Royalty Report such additional reporting.
(b)Not later than sixty (60) calendar days after the last day of each calendar quarter, or thirty (30) days after a Party receives the applicable Test Fee and Royalty Report from the other Party for such calendar quarter, whichever is later, (i) each Party shall reconcile the amount subject to sharing hereunder that is owed to the other Party under the Test Fee and Royalty Reports provided for such calendar quarter, after application of all offsets and credits permitted under this Agreement, including under Sections 3.1, 3.2(d)(ii), 3.3(e) and 3.4(b) and Patent Costs, and (ii)(A) if such reconciliation shows that Illumina owes to Sequenom a net aggregate amount of consideration subject to sharing hereunder for such calendar quarter, then Illumina shall pay such net aggregate amount to Sequenom, and (B) if such reconciliation shows that Sequenom owes to Illumina a net aggregate amount of consideration subject to sharing hereunder or subject to reimbursement hereunder for such calendar quarter, then Sequenom shall pay such net aggregate amount to Illumina.  Making or accepting a payment made under this Section 3.4(b) shall not constitute an admission by a Party or conclusive evidence of the correctness of any amount so paid or accepted.
(c)Annual Reporting and True-Up.
(i)Not later than ninety (90) calendar days after the last day of each calendar year, or forty five (45) days after a Party receives from the other Party the Test Fee and Royalty Report for the last calendar quarter of such calendar year, whichever is later, each Party shall provide the other with an annual report (the “Annual Report”) in reasonable detail showing for the previous calendar year all categories of information set forth in parts (i) through (xii) of the quarterly Test Fee and Royalty Report, and  in each case, any difference between the information reported on the Annual Report and the information reported in the quarterly Test Fee and Royalty Reports.  The Annual Report provided by Sequenom shall also report the number of NIPT LDT Tests in the NIPT LDT Field (A) performed during that calendar year period using Illumina equipment and consumables and (B) performed during that period using non-Illumina equipment and consumables, and any adjustments to those number permitted in accordance with Section 3.5(b) (Adjustment Due to Third Party Platforms and Products).  Each Party shall provide its Annual Report in a Microsoft excel spreadsheet (electronic and hard copy), or in another mutually acceptable spreadsheet format. 

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(ii)The Parties shall each calculate and also include such calculation in such Annual Report the sum of (A) payments received by Sequenom from Illumina for shared Test Fees and other shared consideration, (B)  Royalties received by Sequenom from Illumina for Net IVD Sales, (C) the amounts retained by Sequenom for Test Fees and other shared consideration  in relation to Licensed NIPT LDT Tests, and, in the case of Illumina, (D) the amounts paid by Illumina to CUHK pursuant to the CUHK Licenses and deducted by Illumina from payments to Sequenom as specifically permitted under this Agreement and (E) for 2015, any amounts that Illumina credited in accordance with Section 3.1, in each case during the previous calendar year (such sum, the “Nominal Amount”). For the avoidance of doubt, the Nominal Amount for a calendar year shall not include any amount of shared consideration that was retained or received by Sequenom or Illumina, as applicable, in that year pursuant to Section 5.1(c), to the extent such amount was in a prior year actually credited against a Minimum Payment, as permitted pursuant to Section 3.5(b)(ii) (Credit Due to Illumina Enforcing Pooled Patents).
(iii)The Parties shall each calculate and also include in such Annual Report any adjustments to the Minimum Payment pursuant to Section 3.5(b).  If, for any calendar year, there is any amount paid by Illumina to CUHK pursuant to the CUHK Licenses (except for the Patent Costs, which are addressed in ARTICLE V) that has not been credited or reimbursed by Sequenom, then Sequenom shall pay to Illumina along with the payment otherwise due for the first calendar quarter of the following calendar year, that amount of un-credited or not reimbursed payments made by Illumina to CUHK as set forth in Illumina’s annual report.
(iv)If, for any calendar year starting with 2015 and ending with 2020, the Nominal Amount for that calendar year is less than the Minimum Payment amount for the applicable year set forth in Section 3.5(a) as that Minimum Payment is adjusted pursuant to Section 3.5(b), then Illumina shall pay to Sequenom along with the payment otherwise due for the first calendar quarter of the following calendar year, the difference between such Minimum Payment and such Nominal Amount.
(d)To the extent that, with respect to any calendar year for which a Minimum Payment is set forth in Section 3.5(a), the aggregate amount that Sequenom retains and receives of shared revenues hereunder is in excess of the applicable Minimum Payment for such calendar year, then the excess amount over such Minimum Payment for such calendar year shall be credited against the amount (if any) owing by Illumina to Sequenom under Section 3.5 for the immediately following calendar year in excess of the aggregate amount that Sequenom retains and receives of shared revenues hereunder for such immediately following calendar year;  provided, however, that the operation of this Section 3.4(d), together with any adjustment under Section 3.5(b) that is subject to a floor, shall not reduce the amount of the Minimum Payment below the amount of  such floor therefor set forth in the first paragraph of Section 3.5(b).
(e)All calculations and payments under this Section shall be made subject to Section 3.6 (Foreign Exchange).
3.5Minimum Payments.
(a)Unadjusted Minimum Payments.  Beginning in calendar year 2015 and continuing through calendar year 2020, the unadjusted minimum aggregate annual amounts payable to Sequenom including all amounts expressly stated to be payable under this Agreement, other than the One-Time Payment (each, a “Minimum Payment”), shall be:
(i)for calendar year 2015, six million dollars (US$6,000,000);
(ii)for calendar year 2016 nine million dollars (US$9,000,000);

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(iii)for calendar year 2017, ten million dollars (US$10,000,000);
(iv)for calendar year 2018, fifteen million dollars (US$15,000,000);
(v)for calendar year 2019, twenty million dollars (US$20,000,000); and
(vi)for calendar year 2020, twenty million dollars (US$20,000,000).
(b)Adjustments and Credits to the Minimum Payment Obligations.  To the extent that any of the events or circumstances set forth in this Section 3.5(b) arises in any year after 2016, the Minimum Payment for the applicable year shall be adjusted downward as set forth below, provided that any such reduction shall not bring the Minimum Payment owed for such year below a floor of (1) in 2017 calendar year, seven million five hundred thousand dollars (US$7,500,000), (2) in calendar year 2018, seven million five hundred thousand dollars (US$7,500,000), and (3) in calendar year 2019, five million dollars (US$5,000,000) (with no floor applicable to  calendar year 2020), except as expressly stated otherwise.
(i)Adjustment Due to Average Test Fee Collected. The Minimum Payments set forth in Section 3.5(a) are based on an average annual Test Fee collected by Illumina and Sequenom in the amount of $[...***...] per NIPT Test.  If the average Test Fee collected for a calendar year is lower than $[...***...] per NIPT Test by [...***...]% or more, then the Minimum Payment for the calendar year shall be adjusted downward by multiplying the then current Minimum Payment amount by the quotient of the average Test Fee actually collected and subject to sharing between Illumina and Sequenom during that calendar year divided by [...***...].  
(ii)Credit Due to Illumina Enforcing Pooled Patents. To the extent an Illumina Party is suing in good faith any Person (other than an Existing Illumina Litigant) for patent infringement under any Pooled Patent, and is diligently prosecuting such suit:
(A)[...***...] shall be used to calculate the annual amount of Test Fees that would have been collected by such Illumina Party, [...***...] Sequenom as if such sales were made by such Illumina Party, in each case if those sales had been licensed under the Pooled Patents and amounts had been paid in accordance with this Agreement; 
(B)the applicable amounts that would have been paid hereunder to Sequenom, [...***...], shall be calculated; and
(C)[...***...] of the applicable amounts calculated under clause (B) above shall be credited against the minimum amounts set forth in Section 3.5(a) for such year, subject to Section 3.4(c)(ii). 
(iii)Credit Due to Test Fees Not Paid by Sequenom.  In the event that Sequenom fails to pay any Test Fee owing under this Agreement based on Licensed NIPT LDT Tests performed by a Sequenom Party, then the full amount of such unpaid debt (i.e., not just the share due to Sequenom) shall be credited against the Annual Minimum in the same year.  The provisions of Section 3.5(b) to establish a floor for adjustments shall not be applicable to this Section 3.5(b)(iii). 

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(iv)Adjustment Due to Third Party Platforms and Products. If in any calendar quarter a Sequenom Party employs non-Illumina equipment and consumables (excluding library prep) for more than [...***...]% of its laboratory services for NIPT, when Illumina equipment and consumables are otherwise available to Sequenom Party on non-discriminatory economic terms consistent with the intent of this Agreement and any applicable Ancillary Agreements, then the annual Minimum Payment amounts set forth in Section 3.5(a) will be reduced by [...***...]% for the calendar year during which such calendar quarter occurs and the immediately following calendar year.  The provisions of Section 3.5(b) to establish a floor for adjustments shall not be applicable to this Section 3.5(b)(iv).
(v)Adjustment Due to Impairment of Pooled Patents.  If one or more key Patents within the Patent Pool are held invalid so as to be or otherwise become unenforceable in a country, then the Parties shall engage in good faith renegotiation of the Minimum Payment amounts set forth in Section 3.5(a) with the intention of reducing those minimum amounts commensurate with the impact of such an event in such country on the market. Notwithstanding the foregoing, the provisions of this Section 3.5(b)(v) shall not be applicable if one or more key Patents within the Patent Pool are held invalid so as to be or otherwise become unenforceable in a country as a result of a challenge by an Illumina Party pursuant to Section 4.2.2(e) of the Settlement Agreement and the Illumina Party controlled, participated in, or assisted (other than being named as a nominal party or a real party in interest, or paying or reimbursing costs, or taking an action that it is required to take under a University License as set forth in Schedule 3.5(b)(v)) in such challenge  The provisions of Section 3.5(b) to establish a floor for adjustments shall not be applicable to this Section 3.5(b)(v).
(vi)Adjustment Due to Decreased Value of Pooled Patents in Market. If after the Effective Date either Party or its Affiliates, or any Third Party, sells a competitive NIPT LDT Test or NIPT IVD Product in a country that does not infringe any of the Pooled Patents in such country, and all such competitive NIPT LDT Tests and NIPT IVD Products achieve in aggregate a market share for the applicable products or services of at least [...***...], then the Parties shall engage in good faith renegotiation of the Minimum Payment amounts set forth in Section 3.5(a) with the intention of reducing those minimum amounts commensurate with the impact of such an event in such country on the market.
3.6Foreign Exchange.  For the purpose of calculating all amounts received hereunder subject to sharing with the other Party hereunder, where the consideration is received in a currency other than U.S. Dollars, conversion from such foreign currency to U.S. Dollars will be calculated and reported for each date in a calendar month based on the rate of exchange quoted by OANDA.com on last calendar day of the applicable month, with respect to the currency in which such consideration is received for each day during the applicable calendar quarter.
3.7Records.  Sequenom and Illumina each will keep, and will require all other Authorized Labs to keep, for [...***...] years from the date of each payment of Test Fees or Royalties, or the date of receipt of any other amount that is subject to sharing between the Parties under this Agreement, records in sufficient detail to allow the determination of the accuracy and completeness of reports submitted hereunder with respect to any payment hereunder.  Further, Sequenom and Illumina will obtain from the Authorized Labs with which they or their applicable Affiliates are in contract, the right for the contracting Party to audit the records of such Authorized Labs of a scope at least as beneficial to the auditing party as set forth herein. Sequenom and Illumina each will have the right for a period of [...***...] years after receiving any report or statement with respect to amounts due and payable hereunder to appoint an independent certified public accountant reasonably acceptable to the other Party, and which auditor shall 
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receive the same consideration for performing the audit regardless of outcome, to inspect the relevant records of the other Party to the extent necessary to verify the accuracy and completeness of such report or statement.  The auditor shall have the right to report to the auditing party whether the Test Fees, Royalties and Test Fee Reports and Annual Reports were accurate and complete, and if they are not, then the nature and amount of the inaccuracy or incompleteness, and no further information. The audited Party will make its records and the relevant records of its Affiliates available (including any applicable reports received from Authorized NIPT Labs) for inspection by such independent certified public accountant during regular business hours on Business Days at such place or places where such records are customarily kept, upon reasonable prior notice (of at least thirty (30) days) from the auditing party, to verify the accuracy and completeness of the reports and payments.  Such inspection right will not be exercised more than once in any calendar year and no period may be audited by a Party more than once.  The auditing Party will bear all costs and expenses associated with an audit conducted pursuant to this Section 3.7, provided, however, that if the designated auditor discovers an underpayment of [...***...]% or more for the audited period between the amount of payments made under this Agreement and the amount of payments actually owed under this Agreement, then the audited Party will bear all reasonable costs and expenses associated with such audit.  Any amount of underpayment shall be made, with interest calculated in accordance with Section 3.9, within ten (10) Business Days after a final audit report. The auditing Party agrees to hold in confidence all information learned in the course of any audit or inspection, in accordance with the terms and conditions set forth in ARTICLE VI.  Neither Party will have any obligation under this Agreement to maintain records pertaining to such reports or payments beyond such three-year period.  The University Licensors’ of the Pooled Patents shall have the audit rights stated in their respective University Licenses. In the event the written agreement between an Illumina Party or a Sequenom Party and its Existing Illumina Licensee or Existing Sequenom Licensee, respectively, does not include audit rights of at least the scope of this Section 3.7, then Illumina or Sequenom, as applicable, shall use commercially reasonable efforts to seek such audit rights from the existing licensee and execute an amendment to that agreement that contains audits rights of at least the scope of this Section 3.7.
3.8Taxes.
(a)All payments under this Agreement will be made without deduction or withholding for taxes except to the extent that any such deduction or withholding is required by Law in effect at the time of payment.
(b)Any tax required to be withheld on amounts payable under this Agreement will promptly be paid by payor on behalf of the payee to the appropriate governmental authority, and the payor will furnish the payee with proof of payment of such tax.  Any such tax required to be withheld will be an expense of and borne by the payee.
(c)Illumina and Sequenom will cooperate with respect to all documentation required by any taxing authority or reasonably requested by Illumina or Sequenom to attempt to minimize or eliminate the rate of applicable withholding taxes.
3.9Interest on Late Payments.  For any payment due hereunder that is not made when due, in addition to paying the amount of such payment, the Party making such payment shall pay an additional amount as interest on such late amount calculated at a rate equal to the lower of [...***...], or the highest rate permitted by applicable Law, calculated daily from the date that such late amount was due until and including the date actually paid.
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3.10CUHK Licenses. Illumina and Sequenom acknowledge that certain of the CUHK Licenses include certain [...***...] to CUHK. Notwithstanding anything to the contrary in this Agreement or any Ancillary Agreement, any and all of Sequenom’s obligations under this Agreement to reimburse Illumina (whether by credit, repayment, or any other means of reimbursement satisfactory to Illumina) for payments that Illumina is obligated to make to CUHK under a CUHK License shall continue for so long as Illumina is so obligated to CUHK and shall be [...***...]. 
ARTICLE IV
TERM 
4.1Term.  Unless earlier terminated by mutual written agreement of the Parties, the term of this Agreement, including the licenses granted under this Agreement, shall be from the Effective Date until the date of Expiration of the last to Expire Pooled Patent (the “Term”).  Neither Party may terminate this Agreement except by mutual written agreement of the Parties.  Upon termination of the Agreement, the following terms and provisions shall survive: (a) ARTICLE I, (b) Section 5.1 (Infringement Claims Against Third Parties) shall survive for six years after Expiration of each Pooled Patent, (c) ARTICLE VI (Confidentiality) shall survive, (d) all payment obligations under the Agreement shall survive until satisfied, (e) Section 3.7 (Records) shall survive for three years after the last day of the Term, (f) Section 7.2 (No Implied Warranty), (g) ARTICLE VIII, and (h) ARTICLE IX.
4.2Effect of Material Breach.  If a Party materially breaches this Agreement and such breach is not cured within thirty (30) days after written notice thereof from the other Party, the non-breaching Party shall have a right to pursue a claim in accordance with the enforcement procedures set forth in Section 9.7.
ARTICLE V
ENFORCEMENT AND PROSECUTION OF POOLED PATENTS
5.1Infringement Claims Against Third Parties.
(a)Notices.  Sequenom will advise Illumina promptly upon its becoming aware of: (i) any unlicensed activities which it believes may be an actual or impending infringement of any Pooled Patent in the Licensed NIPT Field; (ii) any attack on or appeal of the grant of any Pooled Patent; (iii) any published application for Patent by, or the grant of a Patent to, a Person which claims the same subject matter as any Pooled Patent; or (iv) any application made for a compulsory license under any Pooled Patent.
(b)Right to Take Action.  Subject to Section 5.1(f) (Secondary Enforcement Rights) and Section 5.1(d) (University Licensors) and any applicable University License, as between Sequenom and Illumina and their respective Affiliates, Illumina shall have the sole right (which it may exercise through its Affiliates at its sole discretion), at its sole expense, to enforce the Pooled Patents against Third Parties that Exploit NIPT LDT Tests in the NIPT LDT Field and against Third Parties that Exploit NIPT IVD Products in the NIPT IVD Field, except to the extent (i) such sole right is inconsistent with an applicable Ancillary Agreement or University License, (ii) that Sequenom and its Affiliates retains the 

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enforcement rights under the Isis Patents in the NIPT LDT Field, or (iii) subject to Section 5.1(e) (Existing Litigation).  Subject to the foregoing, solely with respect to infringement of the Isis Patents in the NIPT LDT Field, Sequenom, and in all other cases, Illumina, on behalf of itself and its respective Affiliates, will have the sole right to determine whether or not to take whatever legal or other action is required in response to activities described under Section 5.1(a), including such activities of which Sequenom becomes aware and provides notice under Section 5.1(a) (“Protective Action”).  If the applicable Party determines in its sole discretion that such Protective Action is warranted, then such Party or its Affiliates shall, at such Party’s expense, commence and prosecute and control such Protective Action.  The other Party may be represented by counsel of its own selection at its own expense in such Protective Action to the extent it is a party of record in such Protective Action, provided that such counsel shall not in any way control such Protective Action.
(c)Recovery.  Any recovery obtained as a result of such Protective Action, whether by judgment, award, decree or settlement, (i) first, will be [...***...], and (ii) then, [...***...], (A) with recovery of amounts for NIPT LDT Tests [...***...], and (B) with recovery of amounts for NIPT IVD Products [...***...].  To the extent such recovery is insufficient to reimburse the Parties’ associated reasonable costs and expenses fully, then a Party’s share of the recovery will be [...***...]. 
(d)University Licensors. Each Party agrees to enforce the provisions of any agreement it has with any of the University Licensors, which provisions permit such Party to solicit or compel the cooperation of, including the naming as a party to a litigation of, any such University Licensor, as may be necessary or useful to bring or maintain an action to enforce any Pooled Patent hereunder.
(e)Existing Litigation.  Nothing in this ARTICLE V is intended to alter or divest rights of any Party to continue to prosecute and settle any enforcement action of any Pooled Patent against a Third Party, which Third Parties as of the Effective Date are set forth on Schedules 2.8(d) and 2.8(e), and which enforcement action had begun as of the Effective Date, or to take any appeal therefrom.
(f)Secondary Enforcement Rights.  Notwithstanding anything to the contrary in this Agreement, in the event Sequenom provides notice to Illumina pursuant to Section 5.1(a) with respect to any Patent on Schedule 5.1(f), and Illumina does not within three (3) months of such written notice take Protective Action in response to such notice and thereafter diligently prosecute such Protective Action to eliminate the applicable activity described in Section 5.1(a), or if Illumina provides written notice earlier than such three (3) months that it does not intend to take Protective Action, then Sequenom shall have the same right to take action with respect to the applicable Patent as Illumina has to enforce the Pooled Patents set forth in Section 5.1(b), provided that Sequenom takes such action within three (3) months of such notice and diligently prosecutes such action to eliminate the applicable activity described in Section 5.1(a).  In the event Sequenom chooses to take Protective Action, then Illumina shall have the same rights set forth in Section 5.1(b) as Sequenom has when Illumina takes Protective Action.  Any recovery obtained as a result of any such Protective Action pursued by Sequenom in accordance with this Section 5.1(f) shall be treated as set forth in Section 5.1(c), except that with respect to the division set forth in clause (ii) therein (A) recovery of amounts for NIPT LDT Tests treated as Test Fees shall be shared between the Parties with Sequenom receiving the portion that Illumina would have received if Illumina pursued the Protective Action and with Illumina receiving the portion that Sequenom would have received if Illumina pursued the Protective Action, and (B) with recovery of amounts for NIPT IVD Products being treated as royalties received and Sequenom shall pay a portion of such amount equal to the Royalties that would have been payable by Illumina to Sequenom in accordance with Section 3.3(c) if Illumina had pursued the Protective Action.
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5.2Prosecution and Maintenance of Pooled Patents. 
(a)As between the Parties and subject to the applicable University Licenses and Section 5.2(e), Illumina and its Affiliates shall control the prosecution and maintenance of the Illumina Patents and the Sequenom Patents.
(b)As between the Parties, Sequenom and its Affiliates shall control at their sole cost the prosecution and maintenance of the Isis Patents.
(c)Subject to Section 5.2(b) (regarding Isis Patents), Illumina and Sequenom shall share the reasonable costs and expenses directly incurred by Illumina and Sequenom for prosecution (including responding to interferences declared and oppositions filed and post-grant proceedings) and maintenance of the Pooled Patents, other than Interference Expenses as that term is defined in each of the CUHK Licenses, including without limitation costs and expenses for litigating (in any forum or procedure, including arbitration) Patent Interference Nos. 105,920, 105,922, 105,923 and 105,924 before the United States Patent and Trademark Office, Patent Trial & Appeal Board, or for appealing or settling such interferences, (such shared costs and expenses “Patent Costs”) on a [...***...] Illumina:Sequenom basis.  The Patent Costs include out-of-pocket costs and expenses and costs and expenses incurred by Illumina and Sequenom for activities that occur on and after the Effective Date for outside counsel and in-house patent attorneys and patent agents prosecuting the Pooled Patents (whether directly or through review and oversight of outside counsel), provided that such in-house expenses shall be at an hourly rate of $[...***...] per hour (which shall increase annually by [...***...] on January 1, 2016 and on each January 1 thereafter during the Term).  Payments owed shall be made or credited in accordance with Section 3.4.  For the avoidance of doubt, (1) [...***...] are not creditable against the Minimum Payments, (2) [...***...] is included in Patent Costs and (3) [...***...] shall be paid by Illumina and Sequenom shall reimburse Illumina for 100% of such amounts paid.  Notwithstanding the foregoing, Patent Costs shall not include any costs incurred by [...***...] [...***...].  Unless there was reasonable basis for delay, neither Party will be responsible for payment of costs or expenses that were incurred by the other Party and arising more than six (6) months prior to the receipt by such first Party of the invoice from such other Party.  Each Party shall provide the other Party with reasonable detail regarding costs for services and shall include, at a minimum, the date services were performed, a description of each service provided, specific and accurate time for each service provided and the hourly rate for the service provider. A party shall have the right to audit the invoices in accordance with the audit process set forth in Section 3.7.
(d)Illumina will use commercially reasonable efforts to (i) prosecute (including responding to interferences declared and oppositions filed) and maintain Sequenom-Owned Patents  by filing all necessary papers and paying any fees required for such purpose by the patent Laws of the particular country in which such Sequenom-Owned Patent is prosecuted and was granted, and (ii) obtain such patent extensions or restorations of patent terms as may become available from time to time in any country regarding Sequenom-Owned Patents.  In the event Illumina decides not to prosecute or maintain any pending application or issued patent within Sequenom-Owned Patents, or obtain any patent extensions or restorations of patent term, Illumina will give Sequenom written notice of such decision at least sixty (60) days prior to Illumina allowing such application to go abandoned or prior to Illumina not taking a necessary step to maintain, extend or restore such patent.  Sequenom will have the option of taking over the activities in (i) and (ii) with respect to such application or patent, and shall notify Illumina in writing if it chooses to assume such control of the prosecution or maintenance of any such application 
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or patent.  If Sequenom so assumes control of the prosecution or maintenance of any such application or patent, promptly after such notification, Illumina shall transfer its files with respect thereto to Sequenom, and Sequenom will use commercially reasonable efforts to prosecute (including responding to interferences declared and oppositions filed) and maintain any such application or patent to the same extent Illumina is required as set forth and pursuant to parts (i) and (ii) of this Section 5.2(d).
(e)Each Party prosecuting Pooled Patents pursuant to Sections 5.2(a)-(d) shall use commercially reasonable efforts and reasonably experienced patent professionals of its choosing (in-house or law firm) in so doing to maintain and, if reasonably possible under applicable patent Laws, to prosecute to allowance Valid Issued Claims in the Pooled Patents in the Licensed NIPT Field so maintained and prosecuted, and shall consider in good faith the interests of the other Party in so doing.  [...***...].  Notwithstanding the foregoing, a Party prosecuting a Pooled Patent shall give good faith consideration to any such comments on prosecution of a Pooled Patent in the Licensed NIPT Field received by the other Party.
5.3Cooperation.  Each Party shall reasonably cooperate with the other Party in the exercise of its rights or performance of its obligations under this ARTICLE V.  For any action or proceeding brought by a Party under this ARTICLE V, the other Party shall join as a party plaintiff in any such action or proceeding if necessary for standing or otherwise necessary to enable the initiating Party or its Affiliates to bring or continue such action or proceeding.  Each Party shall enter into a common interest agreement if requested by the other Party in connection with performing its obligations or exercising its rights under this Article V.
ARTICLE VI
CONFIDENTIALITY
6.1Confidentiality.  During the Term and for a period of five (5) years thereafter, each Party shall maintain in confidence the Confidential Information of the other Party, shall not use or grant the use of the Confidential Information of the other Party except as expressly permitted hereby, and shall not disclose the Confidential Information of the other Party except on a need-to-know basis to such Party’s directors, officers, employees, agents and consultants, to the extent such disclosure is necessary or useful in connection with performance of such Party’s obligations or exercise of such Party’s rights under this Agreement or any of the Ancillary Agreements.  To the extent that disclosure to any Person is authorized by this Agreement, prior to disclosure, a Party shall have obtained written agreement of such Person (which written agreement may be a general employee confidentiality agreement) to hold in confidence and not disclose, use or grant the use of the Confidential Information of the other Party except as expressly permitted under this Agreement.  Each Party shall notify the other Party promptly upon discovery of any unauthorized use or disclosure of the other Party’s Confidential Information.
6.2Terms of Agreement.  Neither Party shall disclose any terms or conditions of this Agreement to any Third Party without the prior consent of the other Party; provided, however, that a Party may disclose the terms or conditions of this Agreement, (a) on a need-to-know basis to such Party’s directors, officers, employees and consultants, and its legal and accounting advisors, in each case, to the extent such disclosure is necessary, and (b) to a Third Party, other than a Sequencing Platform Manufacturer, in connection with (i) an equity investment in or financing of the operations of such Party, (ii) a merger, consolidation or similar transaction by such Party, or (iii) the sale of all or substantially all of the assets of such Party to which the Agreement and the Ancillary Agreement are related, provided in each 
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case that such Third Party is bound by written confidentiality obligations respecting such disclosures in accordance with the terms of this Agreement.
6.3Permitted Disclosures.  Notwithstanding Section 6.4, if required by Law, including without limitation by the U.S. Securities and Exchange Commission or any stock exchange or Nasdaq, or by other applicable law, regulation, court or administrative order then a Party may issue a press release or other public announcement regarding this Agreement, or make a disclosure required by Law, provided that the other Party has received prior written notice of such intended press release or public announcement, or the disclosure required by Law, if practicable under the circumstances, and the other Party has been provided sufficient opportunity to object to any such disclosure or to request confidential treatment thereof , and an opportunity to seek a protective order (if applicable), or to have discussion between the Parties and their counsel regarding the requirement,  in each case to the extent reasonably practicable under the circumstances, and the Party subject to the requirement cooperates with the other Party to limit the disclosure and includes in such press release or public announcement or required disclosure only such information relating to this Agreement as is required by such Law to be publicly disclosed.  In the event this Agreement or an Ancillary Agreement is required by applicable Law to be made public (e.g., SEC filing), the Parties will make reasonable attempts to diligently and in good faith work together to redact this Agreement and any applicable Ancillary Agreement to a mutually acceptable extent and in compliance with applicable Law, and in any event the Party required to make the applicable agreement public shall provide the other Party with a copy of the proposed redaction prior to public disclosure.
6.4    Publicity; Use of Names.  Each Party shall obtain the prior written consent of the other Party on all press releases or other public announcements relating to this Agreement, including its existence or its terms, provided that a Party is not required to obtain prior written consent of the other Party for press releases or public disclosures that repeat information that has been previously authorized for public disclosure pursuant to terms of this Agreement. Notwithstanding anything to the contrary in this Agreement, the Parties have mutually agreed on the form of the press release attached hereto as Schedule 6.4, and any Party may disclose free from confidentiality obligations the content of such press release, provided that, except as permitted hereunder, no more than one (1) press release may be issued by any Party in relation to the transactions contemplated by this Agreement and the Ancillary Agreements unless the other Party consents in writing to any additional press release, such consent to be given or withheld in such other Party’s sole and absolute discretion.  Neither Party shall use the name or trademarks of the other Party without the express prior written consent of the other Party.
ARTICLE VII
REPRESENTATIONS AND WARRANTIES
7.1     Representations and Warranties.
(a)Except as set forth on Schedule 7.1(a), each of the Parties represents and warrants, as of the Effective Date, that:
(i)it has legal power, authority and right to enter into this Agreement;
(ii)the execution and performance by it of its obligations hereunder will not constitute a breach of, or conflict with, its organizational documents nor any other material agreement or arrangement, whether written or oral, by which it is bound;

40

(iii)it has full power and authority and has taken all action necessary to enter into and perform this Agreement, and that this Agreement has been duly authorized, executed and delivered by such Party;
(iv)this Agreement is a valid, binding, and legally enforceable obligation of that Party in accordance with its terms;
(v)it has the right to grant the rights granted hereunder, including the licenses and covenants not to sue granted hereunder, and undertake the obligations it assumes hereunder and that it has not previously licensed, assigned, or otherwise conveyed rights in any intellectual property, which license, assignment or other conveyance is inconsistent with the terms of, or could otherwise undermine any exclusivity set forth in, the terms of this Agreement;
(vi)each of its Existing Illumina Licensees or Existing Sequenom Licensees (as applicable) as of the Effective Date that is authorized by an Illumina Party under any Illumina Patent (excluding CUHK Patents) or by a Sequenom Party under any Sequenom Patent (prior to assignment and novation of the CUHK Licenses (2008/2011)) or Isis Patent to perform or have performed an NIPT LDT Test is obligated on a per-test basis to pay a fixed fee (or fixed fee dependent upon volume tiers) on performance of such NIPT LDT Test, which fee will be treated as a Test Fee hereunder; and
(vii)it has no knowledge or reasonable belief, without a duty to investigate, that any Person, other than Illumina, Sequenom, CUHK, Isis, Stanford, [...***...] and any of their Affiliates (a) owns any right, title or interest in a Pooled Patent, or (b) has asserted or alleged that it owns any right, title or interest in a Pooled Patent.
(b)Except as set forth on Schedule 7.1(b), Sequenom represents and warrants, as of the Effective Date, that:
(i)it is the sole and exclusive beneficial and record owner of the Sequenom Owned Patents and Isis Patents licensed to Illumina hereunder;
(ii)this Agreement is not in conflict in any material respect with, and will not result in breach of another agreement to which Sequenom or any of its Affiliates is a party;
(iii)other than as set forth in the Settlement Agreement, it is not aware of any legal action challenging the ownership, validity or enforceability of any of the Sequenom Patents or CUHK Patents; 
(iv)that the Sequenom Patents (prior to assignment and novation of the CUHK Licenses (2008/2011)) include all Patents owned or in-licensed by Sequenom and its Affiliates with a right to sublicense that claim the verifi® test, MaterniT21® test, VisibiliTTM test and other methods of performing NIPT (including targeted sequencing, PCR, arrays), in each case as currently commercially performed and sold by Sequenom and Illumina, [...***...];

***Confidential Treatment Requested

41

(v)it intends to continue prosecuting the ongoing disputes it has with Existing Sequenom Litigants in a manner that, if successful, would lead to an obligation, on each such Existing Sequenom Litigant that intends to perform on a going forward basis an NIPT LDT Test that is covered by a Valid Issued Claim under the Isis Patents, to take a license under the Isis Patents in exchange for consideration payable to Sequenom that is consistent with the Test Fee amounts set forth on Schedule 1;
(vi)other than as set forth in the Settlement Agreement, it has no reasonable basis to believe that (A) any of the Sequenom Owned Patents, Isis Patents or CUHK Patents will Expire prior to the ordinary date that would be calculated for any such Patent based on the filing and priority dates of the applications leading to such Patent and (B) it will allow any Expiration to occur for Pooled Patents under its control that is prior to the ordinary date that would be calculated for any such Patent based on the filing and priority dates of the applications leading to such Patent; 
(vii)it is not a party to any agreement with any Person that would conflict with the obligations regarding Test Fees collection and sharing with Illumina hereunder or that includes a right for a Person other than a Sequenom Party to sublicense any rights under any Sequenom Patent or CUHK Patent; 
(viii)it is not in material breach of any existing agreement under which it has obtained any right in any Sequenom Patent (prior to assignment and novation of the CUHK Licenses (2008/2011)), including Isis Patents;
(ix)It has not reserved any rights for any Sequenom Party, nor granted any right or license to any Person under any of the Sequenom Patents, including Isis Patents, or CUHK Patents that results in Illumina Parties receiving less than full exclusive rights under Sequenom Patents, including Isis Patents, and CUHK Patents to Exploit NIPT IVD Products in the NIPT IVD Field; 
(x)It has not reserved any rights for any Sequenom Party, nor granted any right or license to any Person under any of the Sequenom Patents, including Isis Patents, or CUHK Patents to Exploit NIPT IVD Products in the NIPT IVD Field; 
(xi)any agreement entered into by Sequenom or any Affiliate of Sequenom prior to the Effective Date granting rights under any Sequenom Patent (prior to assignment and novation of the CUHK Licenses (2008/2011)) includes an obligation for the grantee to pay Test Fees to Sequenom or such Affiliate that are in an amount that is materially consistent with (or higher than) the Test Fee amounts (based on currency exchange rates in effect on the Effective Date) set forth on Schedule 1 (excluding the additional $[...***...] fee pursuant to Section 3 of Schedule 1);
(xii)no Existing Sequenom Licensee has been granted a right under any Sequenom Patent (prior to assignment and novation of the CUHK Licenses (2008/2011)) greater than a right to Exploit an NIPT LDT Test in the NIPT LDT Field;
(xiii)it and none of its Affiliates has neither granted any license to, nor entered into any agreement with, any Person that would prohibit Illumina from granting licenses to Exploit NIPT IVD Products in the NIPT IVD Field and NIPT LDT Tests in the NIPT LDT Field under the Pooled Patents anywhere in the world; 

***Confidential Treatment Requested

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other than an obligation to make an up-front payment, all payment obligations of Existing Sequenom Licensees (including existing Sequenom Technology Partners) to Sequenom or its Affiliates pursuant to and under an Existing Sequenom License are in consideration of the grant of a license or right under at least one Sequenom Patent (prior to assignment and novation of the CUHK Licenses (2008/2011));
(xiv)[...***...]; 
(xv)[...***...];
(xvi)it owns all right, title and interest in the Isis Patents, including the sole and exclusive right to assert, bring, settle, and release claims of infringement and collect for past damages;
(xvii)other than rights granted by Sequenom or its Affiliates under Existing Sequenom Licenses, no other Person has any right under any Isis Patent; 
(xviii)it has the sole right to grant licenses under the Isis Patents; and 
(xix)it has not granted any rights under any Sequenom Patent to an Existing Sequenom Licensee that is performing NIPT on a non-Illumina platform.
(c)Illumina represents and warrants, as of the Effective Date, that:
(i)Except as set forth on Schedule 7.1(c)(i), it (and/or its Affiliates) is the sole and exclusive beneficial and record owner of the Illumina Owned Patents licensed to Sequenom hereunder; 
(ii)this Agreement is not in conflict in any material respect with, and will not result in breach of another agreement to which Illumina or any of its Affiliates is a party;
(iii)other than as set forth in the Settlement Agreement, it is not aware of any legal action challenging the ownership, validity or enforceability of any of the Illumina Patents (excluding the CUHK Patents);
(iv)the Illumina Patents (excluding the CUHK Patents) include all Patents owned or in-licensed by Illumina and its Affiliates with a right to sublicense that claim the verifi® test, MaterniT21® test, VisibiliTTM test and other methods of performing NIPT  (including targeted sequencing, PCR, arrays), in each case as currently commercially performed and sold by Sequenom and Illumina, but excluding those claims of Patents solely to the extent they cover Illumina’s and its Affiliates’ general purpose consumables, reagents, instruments, accessories and software and use thereof;
(v)it intends to continue prosecuting the ongoing disputes it has with Existing Illumina Litigants in a manner that, if successful, would lead to an obligation, on each such Existing Illumina Litigant that intends to perform on a going forward basis an NIPT LDT Test that is covered by a Valid Issued Claim under the Illumina Patents (excluding the CUHK Patents), to take a license under such Illumina Patents in exchange for consideration payable to Illumina that is consistent with the Test Fee amounts set forth on Schedule 1 (excluding the additional $[...***...] fee pursuant to Section 3 of Schedule 1);

***Confidential Treatment Requested

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(vi)other than as set forth in the Settlement Agreement, it has no reasonable basis to believe that (A) any of the Illumina Owned Patents or Illumina In-Licensed Patents (excluding the CUHK Patents) will Expire prior to the ordinary date that would be calculated for any such Patent based on the filing and priority dates of the applications leading to such Patent and (B) it will allow any Expiration to occur for Pooled Patents under its control that is prior to the ordinary date that would be calculated for any such Patent based on the filing and priority dates of the applications leading to such Patent; 
(vii)it is not a party to any agreement with any Person that would conflict with the obligations regarding Test Fees collection and sharing with Sequenom hereunder or that includes a right for a Person, other than the Illumina Parties or its University Licensors, to sublicense any rights under any Illumina Patent (excluding the CUHK Patents);
(viii)it is not in material breach of any existing agreement under which it has obtained any right in any Illumina Patent (excluding any CUHK Patents);
(ix)except as set forth on Schedule 7.1(c)(ix), any agreement entered into by Illumina or any Affiliate of Illumina prior to the Effective Date granting rights under any Illumina Patent (excluding the CUHK Patents) includes an obligation for the grantee to pay Test Fees to Illumina or such Affiliate that are materially consistent with (or higher than) the Test Fee amounts (based on currency exchange rates in effect on the Effective Date) set forth on Schedule 1 (excluding the additional $[...***...]fee pursuant to Section 3 of Schedule 1); 
(x)no Existing Illumina Licensee has been granted a right under any Illumina Patent (excluding the CUHK Patents) greater than a right to Exploit an NIPT LDT Test in the NIPT LDT Field; 
(xi)it and none of its Affiliates has neither granted any license to, nor entered into any agreement with, any Person that would prohibit Sequenom from granting licenses to Persons for Exploiting NIPT LDT Tests in the NIPT LDT Field in such Person’s, or its Affiliates’, clinical laboratory under the Isis Patents anywhere in the world; and 
(xii)Except as set forth on Schedule 7.1(c)(xiii), all payment obligations of Existing Illumina Licensees (including existing Illumina Technology Partners) to Illumina or an Illumina Affiliate pursuant to and under an Existing Illumina License are in consideration of the grant of a license or right under at least one Illumina Patent (excluding CUHK Patents).
7.2No Implied Agreements or Warranties.  Nothing contained in this Agreement will be construed as:
(a)a warranty or representation that any manufacture, importation, offer for sale, sale, lease, use, performance or other disposition of NIPT LDT Tests or NIPT IVD Product hereunder will be free from infringement of Third Party Patents;
(b)a warranty or representation of the validity of any claims of the Pooled Patents;
(c)an agreement or other obligation to bring or prosecute actions or suits for infringement of or otherwise enforce any of the Pooled Patents generally or against any particular Person or Persons;
***Confidential Treatment Requested

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(d)conferring any right to use in advertising, publicity, or otherwise, any trademark, trade name or names, or any contraction, abbreviation or simulation thereof, of any Party; and
(e)conferring by implication, estoppel or otherwise, upon any Party hereunder, any license or other right under any class or type of Patent or other intellectual property right, except the licenses and rights expressly granted hereunder or under the Ancillary Agreements.  The Parties reserve for themselves any rights not so expressly granted to the other Party or its Affiliates hereunder or under the Ancillary Agreements.
ARTICLE VIII
INDEMNIFICATION
8.1Indemnification.
a.Illumina shall fully and unconditionally indemnify, defend and hold harmless Sequenom, its Affiliates, and each of their respective directors, officers, employees, agents and representatives, successors and assigns, for any Claims by a Third Party to the extent (i) arising from a breach or misrepresentation of any representation or warranty made by Illumina (on behalf of itself and its Affiliates) under this Agreement, (ii) arising from infringement or alleged infringement of any [...***...] by the Exploitation of any NIPT LDT Test in the NIPT LDT Field by Sequenom or its Affiliates that are not Sequencing Platform Manufacturers in accordance with this Agreement and with  the sublicense under the [...***...] executed and delivered in accordance with Section 2.6, or (iii) arising from, resulting from or relating to the failure of Illumina to pay any and all applicable royalties owing to [...***...] for activities for which Sequenom has paid the applicable consideration in accordance with [...***...]. 
b.Sequenom shall fully and unconditionally indemnify, defend and hold harmless Illumina, its Affiliates, and each of their respective directors, officers, employees, agents and representatives, successors and assigns, for any Claims (i) by a Third Party to the extent arising from (A) a breach or misrepresentation of any representation or warranty made by Sequenom (on behalf of itself and its Affiliates) under this Agreement, (B) infringement or alleged infringement of any [...***...], in each case by Illumina or its Affiliates in accordance with this Agreement, (C) any act or omission of Sequenom, or an Affiliate of Sequenom pursuant to any sublicense granted to Sequenom or an Affiliate of Sequenom under this Agreement or any Ancillary Agreement to the extent Illumina has an express indemnification obligation in respect of such Claim under an applicable University License, in each case to the extent such obligation is expressly disclosed by Illumina to Sequenom prior to the Effective Date or exists in a CUHK License as of the Effective Date, (D) the transaction that resulted in Sequenom taking assignment and ownership of the Isis Patents, (E) any and all Pre-Novation Liability (as defined in the assignment and novation agreements referenced in Section 2.4(b) of this Agreement), (F) any act or omission of Sequenom, or its sublicensees or their sub-sublicensees under the Sequenom Sublicense (as defined in the sublicenses referenced in Section 2.4(c) and (e) of this Agreement), any Existing Sequenom Sublicense or any sub-sublicense granted under an Existing Sequenom License, including a breach of any of the foregoing sublicenses or sub-sublicenses, (G) any duties, obligations act or omission of Sequenom or an Existing Sequenom Licensee, for which Illumina and Sequenom are jointly and severally liable to CUHK under any or all of the assignment and novation agreement referenced in Section 2.4(b) (other than due to any failure by Illumina or its Affiliates to comply with the terms and conditions of such novation or assignment), or (H) or arising under, or otherwise in relation to the novation or assignment of any or all of the CUHK Licenses (2008/2011) referenced in Section 2.4(b) to Illumina (other than due to any failure by
***Confidential Treatment Requested

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Illumina or its Affiliates to comply with the terms and conditions of such novation or assignment), or (ii) arising out of (A) a suit or other action by or on behalf of Sequenom or an Affiliate of Sequenom for infringement or alleged infringement of any [...***...] by the Exploitation of any NIPT LDT Test in the NIPT LDT Field or Exploitation of any NIPT IVD Products in the NIPT IVD Field by Illumina or its Affiliates, or (B) a Claim that would have been released under Section 4.1.1 of the Settlement Agreement if Claims for infringement of any Patents licensed by [...***...] to Sequenom as of the Effective Date had not been excluded from such release pursuant to Section 4.1.1 of the Settlement Agreement. 
8.2Procedure.  The indemnified Party promptly shall notify the indemnifying Party of any Claim in respect of which the indemnified Party intends to claim such indemnification, and the indemnifying Party shall have the right to assume the defense thereof with reasonable counsel selected by the indemnifying Party.  The indemnity agreement in this ARTICLE VIII shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the consent of the indemnifying Party, which consent shall not be unreasonably withheld, delayed or conditioned.  The failure to deliver notice to the indemnifying Party within a reasonable time after the commencement of any such Claim, if prejudicial to its ability to defend such action, shall relieve the indemnifying Party of liability to the indemnified Person under this ARTICLE VIII to the extent of such prejudice, but the omission so to deliver notice to the indemnifying Party shall not relieve it of any liability that it may have to the indemnified Person otherwise than under this ARTICLE VIII.  The indemnified Party under this ARTICLE VIII, its directors, officers, employees, agents and representatives shall reasonably cooperate with the indemnifying Party and its legal representatives in the investigation and defense of any Claim covered by this indemnification.
8.3Limitation of Liability.  Notwithstanding anything to the contrary, the maximum economic liability of a Party under Section 8.1 shall be limited to (a) [...***...] of the shared Test Fees and related revenues collected pursuant to Section 3.2(b)(vi) paid to or retained by such Party under this Agreement, plus (b)(i) in the case of Sequenom, [...***...] [...***...], and (ii) in the case of Illumina, [...***...].
ARTICLE IX
MISCELLANEOUS PROVISIONS
9.1No Assignment Without Consent.
(a)No Party shall, without the prior written consent of the other Party, assign or transfer this Agreement (in whole or in part) or assign, transfer, declare a trust of or dispose of in any manner any of its rights and obligations hereunder to any Third Party, except that Illumina and Sequenom (a) may assign or transfer this Agreement (in whole or in part) to an Affiliate or (b) may assign or transfer this Agreement, only together with all the Ancillary Agreements to which it is a party, to a Third Party as part of a merger, sale of stock or shares, or sale of assets in each case relating to the entire business of either Illumina or Sequenom to which this Agreement and the Ancillary Agreements relate, as applicable, in each case without any further consent required of any other Party, subject in all cases to Section 1.1(a).  Any purported assignment or transfer in violation of this Section 9.1(a) shall be null and void ab initio.
(b)Subject to the foregoing, all of the terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the respective successors and assigns of the Parties.
***Confidential Treatment Requested

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(c)For the avoidance of doubt, the provisions of Section 1.1(a) shall be applicable in the event of a Change of Control of Sequenom to a Sequencing Platform Manufacturer (including as part of an assignment of this Agreement in a bankruptcy or other financial restructuring of Sequenom).
9.2Notices.  All notices required or permitted to be given hereunder will be in writing and will be valid and sufficient if dispatched by internationally recognized overnight courier (such as UPS, FedEx or DHL), freight prepaid, or delivered personally with written receipt as follows:
If to Illumina:
Illumina, Inc.
5200 Illumina Way
San Diego, CA 92122
Attn:  Senior Vice President, Corporate Development
With a copy to:
Illumina, Inc.
5200 Illumina Way
San Diego, CA 92122
Attn:  General Counsel

If to Sequenom:
Sequenom, Inc.
3595 John Hopkins Court
San Diego CA 92121
Attn:  President
With a copy to:
Sequenom, Inc.
3595 John Hopkins Court
San Diego CA 92121
Attn:  General Counsel
Either Party may give written notice of a change of address and, after notice of such change has been received, any notice or request will thereafter be given to such Party as above provided at such changed address.
9.3Counterparts.  This Agreement may be executed in one or more counterparts (whether delivered by facsimile or otherwise), each of which will be considered one and the same agreement and will become effective when counterparts have been signed by each of the Parties and delivered to the other Party.
9.4Entire Agreement.  This Agreement along with the Ancillary Agreements:  (i) constitutes the entire agreement and supersedes all prior agreements, negotiations, arrangements and understandings, both written and oral, between the Parties with respect to the subject matter hereof, and (ii) is not intended to confer upon any Person, other than the Parties, any rights, benefits or remedies of any nature whatsoever.
9.5Severability.  Any term or provision of this Agreement that is held to be invalid, void or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability of the remaining terms and provisions hereof, or the validity or enforceability of the invalid, void or unenforceable term or provision in any other situation or in any other jurisdiction.  If any term or provision of this Agreement is declared invalid, void or unenforceable, the Parties agree that the authority 

47

making such determination will have the power to and shall, subject to the discretion of such authority, reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the original intention of the invalid or unenforceable term or provision.
9.6Governing Law.  This Agreement and any action related thereto shall be governed, controlled, interpreted and defined by and under the Laws of the State of California, without regard to any choice of law or conflicts of laws provisions thereof.
9.7Enforcement.
(a)Illumina and Sequenom each agree that all disputes arising out of or relating to this Agreement (other than disputes between the Parties regarding adjustment of Test Fee amounts in accordance with Section 3.2(c)(iii)) shall be presented in writing to the Presidents of the Parties who shall use good faith efforts to resolve such disputes.  If any such dispute is not resolved by the Presidents within thirty (30) days (or such longer period as the Parties mutually agree in writing) after first presentation in writing to each of such dispute, then either Party shall be entitled to commence proceedings in the state or federal courts, as applicable, located in San Diego, California.  Each Party agrees (i) that all such disputes shall be instituted exclusively in the state or federal courts in California; (ii) irrevocably to submit and consent to the exclusive jurisdiction of the foregoing courts for any action properly brought pursuant to clause (i) above; and (iii) to waive any objection they may have now or hereafter to the venue of any action brought pursuant to clause (i) above.
(b)Irreparable damage may occur if any of the provisions of this Agreement were not performed in accordance with their specific terms.  Accordingly, the Parties will be entitled to seek specific performance of the terms of this Agreement, this being in addition to any other remedy to which they are entitled at Law or in equity.
(c)No failure or delay on the part of either Party in the exercise or assertion of any right under this Agreement will impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation or agreement herein, nor will any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.
(d)Any agreement on the part of a Party to any extension, waiver, amendment, modification or supplement of this Agreement or its rights hereunder will be valid only if set forth in an instrument in writing signed on behalf of such Party.
(e)All rights and licenses granted under or pursuant to this Agreement by one Party to the other are, and will otherwise be deemed to be, for purposes of Article 365(n) of the Bankruptcy Code, licenses of rights to “intellectual property” as defined under Article 101(52) of the Bankruptcy Code. The Parties agree that either Party in its capacity as a licensee of such rights under this Agreement will retain and may fully exercise all of its rights and elections under the Bankruptcy Code.
9.8Export Control Laws.  Anything contained in this Agreement to the contrary notwithstanding, the obligations of the Parties will be subject to all Laws, present and future and including export control laws and regulations, of any government having jurisdiction over the Parties hereto, and to orders, regulations, directions or requests of any such government.  Each Party will undertake to comply with and be solely responsible for complying with such Laws applicable to such Party.

48

9.9    Construction.  Any reference to a Party will include such Party’s permitted successors and permitted assigns.  If any ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.  No prior draft of this Agreement will be used in the interpretation or construction of this Agreement.  Headings are used for convenience only and will not in any way affect the construction or interpretation of this Agreement.  The doctrine of election of remedies will not apply in constructing or interpreting the remedies provisions of this Agreement or the equitable power of a court considering this Agreement or the transactions contemplated hereby.
9.10No Implied Warranty.  EXCEPT AS SPECIFIED IN SECTION VII (REPRESENTATIONS AND WARRANTIES), AND ANY OTHER EXPRESS REPRESENTATION OR WARRANTY IN THIS AGREEMENT, THE LICENSES GRANTED HEREUNDER ARE GRANTED WITHOUT ANY WARRANTY OF ANY KIND.  EACH PARTY HEREBY DISCLAIMS ANY IMPLIED WARRANTIES OF ANY KIND INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.
9.11Damage Limitation.  EXCEPT FOR INFRINGEMENT OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS, ANY EXPRESS OBLIGATION OF A PARTY TO INDEMNIFY, HOLD HARMLESS AND DEFEND UNDER THIS AGREEMENT, AND FOR BREACH OF THE CONFIDENTIALITY OBLIGATIONS SET FORTH IN ARTICLE VI (CONFIDENTIALITY).  NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, OR FOR LOST PROFITS OR COSTS ASSOCIATED WITH OBTAINING SUBSTITUTE PERFORMANCE HEREUNDER, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE BREACH THEREOF, REGARDLESS OF WHETHER SUCH PARTY HAD BEEN WARNED OF SUCH DAMAGES, AND REGARDLESS OF THE THEORY UPON WHICH SUCH DAMAGES ARE CLAIMED, INCLUDING, FOR BREACH OF CONTRACT, WARRANTY, TORT, NEGLIGENCE OR STRICT LIABILITY. 
[signature page follows]

49

Illumina and Sequenom have duly executed and delivered this Pooled Patents Agreement as of the Effective Date.
	
					
	Illumina Inc.
	 
	Sequenom, Inc.

	 
	 
	 
	 
	 

	By:
	/s/ Nicholas Naclerio
	 
	By:
	/s/ Bill Welch

	Name:
	Nicholas Naclerio
	 
	Name:
	Bill Welch

	Title:
	SVP Corporate Development +
	 
	Title:
	CEO

	 
	GM Enterprise Informatics
	 
	 
	 

50EXHIBIT 10.1

 

Execution Copy

CONFIDENTIAL TREATMENT REQUESTED

 

The confidential portions of this exhibit
have been delivered separately to the Securities and Exchange Commission pursuant to a confidential application for confidential
treatment in accordance with Rule 24b-2 under the Securities Exchange Act of 1934, as amended. 

 

REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED
BY AN [***]. 

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT (this
“Agreement”), is made as of July 9, 2015 (the “Effective Date”), by and among Eyegate
Pharmaceuticals, Inc., a corporation organized under the laws of Delaware (“Eyegate Pharmaceuticals”), EyeGate
Pharma S.A.S., a French corporation and wholly owned subsidiary of Eyegate Pharmaceuticals (“EyeGate Pharma”
and, collectively with Eyegate Pharmaceuticals, “Eyegate”) and Valeant Pharmaceuticals Luxembourg S.à
r.l., a société à responsabilité limitée (private limited liability company) duly formed and
validly existing under the laws of the Grand-Duchy of Luxembourg (“Valeant”).

 

WHEREAS, Eyegate has
developed the drug EGP-437 (together with any improvements or enhancements thereto, “EGP-437”), which incorporates
a reformulated topically active corticosteroid, dexamethasone phosphate, for delivery into the ocular tissues through Eyegate’s
proprietary innovative drug delivery system, the EyeGate® II Delivery System (together with any improvements or enhancements
thereto, the “EyeGate® II Delivery System,” and, together with EGP-437 and any improvements or enhancements
thereto, the “Product”); and

 

WHEREAS, Valeant desires
to acquire (i) the exclusive right to Manufacture, sell, distribute, Commercialize and otherwise Exploit the Product in the Territory
in the Field, (ii) the exclusive right to Develop the Product in the Territory in the Field, other than for the United States,
and (iii) a non-exclusive license to Develop the Product in the Field for the United States, in each case under the terms and conditions
set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements contained herein, the parties hereto, intending to be legally
bound hereby, do agree as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1           Definitions.
For purposes of this Agreement, the following terms, whether in the singular or the plural, shall have the meanings designated
to them under this Article 1, unless otherwise specifically indicated:

 

    	 

    	 

    

  

(a)          “Act”
shall mean the Federal Food, Drug and Cosmetic Act, as amended, and the regulations promulgated thereunder from time to time.

 

(b)          “Affiliate”
shall mean, as to any Person, any other Person which, directly or indirectly, controls, is controlled by, or is under common control
with, such Person. For the purpose of this definition, “control”, “controlled by” or “under common
control with” means the possession of the power to direct or cause the direction of management and policies of such Person,
whether through direct or indirect ownership of voting securities or otherwise.

 

(c)          “Applicable
Laws” shall mean all applicable federal, state, local or foreign laws, statutes or ordinances, common law, or any rules,
regulations, standards, judgments, orders, writs, injunctions, decrees, arbitration awards and agency requirements, including without
limitation the Act.

 

(d)          “Audited
Party” shall have the meaning set forth in Section 8.2(a).

 

(e)          “Auditing
Party” shall have the meaning set forth in Section 8.2(a).

 

(f)          “Authorized
Generic” shall mean the Product comprised of drug and device in released, finished form that is: (i) packaged and sold
without the Product Trademark or a Valeant Trademark, (ii) Manufactured, sold, distributed or Commercialized pursuant to a Marketing
Authorization with the consent of Valeant and (iii) intended to be dispensed as if the Product were a Generic Substitute.

 

(g)          “Business
Day” shall mean any day except Saturday, a Sunday or any other day on which banks in the State of New York or Luxembourg
are closed for business.

 

(h)          “Calendar
Quarter” shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September
30 and December 31; provided, however, that (i) the first Calendar Quarter of the Term shall extend from the Effective
Date until September 30, 2015; and (ii) the last Calendar Quarter of the Term shall end upon the termination of this Agreement.

 

(i)          “Calendar
Year” shall mean the respective periods of twelve (12) consecutive calendar months ending on December 31; provided,
however, that (i) the first Calendar Year of the Term shall extend from the Effective Date until December 31, 2015; and
(ii) the last Calendar Year of the Term shall end upon the termination of this Agreement.

 

(j)          “Collaboration
Results” shall mean all know-how (whether or not patentable) conceived or reduced to practice by or for either Party
or any of its Affiliates in the course of performing the activities under this Agreement.

 

(k)          “Commercialize,”
“Commercializing,” “Commercialization” or “Commercialized” means all activities
directed to the Promotion, selling or offering for sale of the Product, including planning, market research, pre-marketing activities,
Promoting, importing, exporting, and distributing. For clarity, “Commercialization” shall not include any activities
related to Manufacturing or Development of the Product.

 

    	2

    	 

    

  

(l)          “Commercially
Reasonable Efforts” shall mean the efforts and resources normally used by a Party for a pharmaceutical product of its
own discovery with a similar market potential at a similar stage in its development or commercialization, taking into account the
competitiveness of the marketplace, such Party’s proprietary position with respect to such product, applicable regulatory
circumstances, the profitability to such Party of such product, the likelihood of success of commercialization, and other relevant
factors.

 

(m)         “Competitive
Product” shall mean [***].

 

(n)          “Confidential
Information” shall have the meaning set forth in Section 13.1.

 

(o)          “Contract”
shall mean any agreement, contract, license, lease, commitment, arrangement or understanding, written or oral, including any sales
order and purchase order currently outstanding that is legally binding and enforceable against the parties thereto.

 

(p)          “Controlled”
shall mean possession by a Party of the right to grant to the other Party a license, sublicense or other right to use, of the scope
provided for in this Agreement, under intangible or intellectual property rights (including patent rights, design rights, copyrights,
know-how, trade secrets, data and rights to access or cross-reference regulatory filings) without violating the terms of any agreement
or other arrangement with any Third Party existing at the time such Party would be first required hereunder to grant the other
Party such license, sublicense or other right.

 

(q)          “Cover,”
“Covered,” and “Covering” shall mean, with respect to an invention, product, or process,
in the absence of a license granted to a Valid Claim included in the applicable Patent, the Development, Manufacture, Commercialization
or Exploitation of such invention, product, or process (as applicable) would infringe such Valid Claim (or, in the case of a Valid
Claim that has not yet issued, would infringe such Valid Claim if it were to issue).

 

(r)          “Develop,”
“Development,” and “Developing” means those research and development activities, including
research, pre-clinical and other non-clinical activities, test method development and stability testing, toxicology, formulation
development, clinical trials, and regulatory activities that are necessary or useful to permit the marketing and sale of a product,
including all research and other activities conducted to obtain any Marketing Authorizations. For clarity, “Development”
shall not include any activities related to Manufacturing or Commercialization of a Product.

 

(s)          “Development
Field” shall mean the treatment of non-infectious anterior uveitis.

 

(t)          “Development
Milestone” shall have the meaning set forth in Section 7.1(b).

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

    	3

    	 

    

  

(u)          “Development
Milestone Payment” shall have the meaning set forth in Section 7.1(b).

 

(v)          “Disclosing
Party” shall have the meaning set forth in Section 13.1.

 

(w)         “Effective
Date” shall have the meaning set forth in the Preamble.

 

(x)          “EGP-437”
shall have the meaning set forth in the Recitals.

 

(y)          “Ex-U.S.
Development Plan” shall have the meaning set forth in Section 4.7(b).

 

(z)          “Exploit”
or “Exploitation” means to import, export, use, sell, or offer for sale (and, for clarity, shall not include
make or have made).

 

(aa)        “Eyegate”
shall have the meaning set forth in the Preamble.

 

(bb)       “EyeGate®
II Delivery System” shall have the meaning set forth in the Recitals.

 

(cc)        “Eyegate
Patents” shall have the meaning set forth in Section 1.1(iii).

 

(dd)        “EyeGate
Pharma” shall have the meaning set forth in the Preamble.

 

(ee)        “Eyegate
Pharmaceuticals” shall have the meaning set forth in the Preamble.

 

(ff)         “FDA”
shall mean the United States Food and Drug Administration, or any successor entity thereto.

 

(gg)       “Field”
shall mean the treatment, prevention or cure of uveitis.

 

(hh)       “Force
Majeure Event” shall have the meaning set forth in Section 16.1.

 

(ii)         “GAAP”
shall mean U.S. generally accepting accounting principles.

 

(jj)         “Generic
Substitute” shall mean, with respect to any particular country in the Territory, the marketing and sale in such country
of a Substitutable Product, which is marketed and sold without any trademark or under any trademark other than the Product Trademark
or any Valeant Trademark.

 

(kk)        “Indemnitee”
shall have the meaning set forth in Section 15.3.

 

(ll)         “Indemnitor”
shall have the meaning set forth in Section 15.3.

 

    	4

    	 

    

  

(mm)        [***].

 

(nn)         “Joint
Inventions” shall have the meaning set forth in Section 11.3.

 

(oo)         “Joint
Patents” means any Patents arising or resulting from Joint Inventions.

 

(pp)         “JSC”
shall have the meaning set forth in Section 3.1.

 

(qq)         “License
Fees and Milestone Payments” shall mean the payments to be made by Valeant pursuant to Sections 7.1 and 7.2.

 

(rr)          “Litigating
Party” shall have the meaning set forth in Section 11.7(g).

 

(ss)         “Losses”
shall have the meaning set forth in Section 15.1.

 

(tt)          “Major
Market Countries” shall mean the countries set out on Schedule 1.1(tt) hereto.

 

(uu)        “Manufacturing,”
“Manufacture” or “Manufactured” means all activities related to the production, manufacture,
processing, filling, finishing, packaging, labeling, and shipping and holding (prior to distribution) of the Product or any intermediate
or component thereof, including process development, process qualification and validation, scale-up, commercial manufacture and
analytic development, product characterization, stability testing, quality assurance and quality control. For clarity, “Manufacturing”
shall not include any activities related to Commercialization or Development of a Product.

 

(vv)        “Marketing
Authorization” shall mean, with respect to any country, the regulatory authorization required to market and sell the
Product for use in the Field in that country as granted by the relevant Regulatory Authority.

 

(ww)       “Members”
shall have the meaning set forth in Section 3.2(a).

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

    	5

    	 

    

  

(xx)        “Net
Sales” shall mean, for a particular period, in a particular country in the Territory, the gross amount invoiced by or
on behalf of Valeant or its Affiliates or distributors for sale of the Product for such period in such country, less the following
deductions [***]. To the extent any such deductions apply to the Product as well as any other products of Valeant or its Affiliates,
such deductions shall be fairly and equitably allocated to the Product and such other products of Valeant or its Affiliates, such
that the Product does not bear a disproportionate portion of such deductions. Any of the deductions listed above that involves
payment by Valeant or its Affiliates or distributors shall be taken as a deduction in the Calendar Quarter in which the payment
is accrued by such entity.  To the extent accrued deductions are subsequently reduced or increased, adjustments will be made
to that Calendar Quarter.  The transfer of Product by Valeant to an Affiliate or a distributor will not be deemed a sale,
except in the case of an Affiliate or distributor whose primary business is wholesale distribution of pharmaceutical products,
in which case the per unit sales price of Product sold to such Affiliate or distributor shall be deemed to be the average sales
price per unit of the Product sold by the applicable Party, its Affiliates or distributors to Third Parties in arm’s length
transactions during the Calendar Quarter in which the sale took place.

 

(yy)        “New
York Court” shall have the meaning set forth in Section 16.7(c).

 

(zz)        
“Non-Field Rights” shall have the meaning set forth in Section 2.4.

 

(aaa)      “Non-Litigating
Party” shall have the meaning set forth in Section 11.7(g).

 

(bbb)      “Party”
shall mean either Valeant or Eyegate.

 

(ccc)      “Patents”
shall mean patents and patent applications and all substitutions, divisions, continuations, continuations-in-part, any patent issued
with respect to any such patent applications, any reissue, reexamination, utility models or designs, renewal or extension (including
any supplementary protection certificate) of any such patent, and any confirmation patent or registration patent or patent of addition
based on any such patent, and all counterparts thereof in any country.

 

(ddd)        “Person”
shall mean any individual, corporation, partnership (whether general, limited or limited liability), association, joint venture,
limited liability company, unlimited liability company, joint stock company, unincorporated organization, trust or other legal
entity or organization, having legal personality, or the right to sue in its own name.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

    	6

    	 

    

  

(eee)        “Product”
shall have the meaning set forth in the Recitals and for the sake of clarification shall mean a combination of products for use
in the Field that are comprised of a drug (including EGP-437) and a device (including the Eyegate® II Delivery System), which
shall include (i) the Authorized Generic of such Product, (ii) any improvements or enhancements to the Product, including such
improvements or enhancements to its components, namely, EGP-437 and the Eyegate® II Delivery System resulting from the Development
activities conducted by either party hereunder, and (iii) the components of such combination product, namely EGP-437 and the Eyegate®
II Delivery System.

 

(fff)        “Product
Contracts” shall have the meaning set forth in Section 9.2(k).

 

(ggg)      “Product
IP” shall mean, collectively, the Product Know-How, the Product Patents, the Product Trademarks, the Marketing Authorizations
and all other intellectual property rights of any nature whatsoever (including rights to patents, patent applications, supplementary
protection certificates, registered designs, copyright, trademarks, know-how, confidential information and trade secrets, including
the right to modify, transfer and license such rights) owned or licensed or otherwise Controlled by Eyegate or any of its Affiliates
and that (i) is related to the Product or the Manufacture, sale, distribution or Commercialization of the Product or (ii) is necessary
or useful to its Development, Manufacture, sale, distribution, Commercialization, Exploitation or other use, and, for greater certainty,
shall include any such intellectual property rights arising or otherwise resulting from the Development activities conducted by
or on behalf of Eyegate pursuant to the terms of this Agreement.

 

(hhh)        “Product
Know-How” shall mean any information, know-how, trade secrets, inventions (whether patentable or not), data and result
that is Controlled by Eyegate or any of its Affiliates on the Effective Date or at any time during the Term and that (i) is
related to the Product or the Manufacture, sale, distribution or Commercialization of the Product or (ii) is necessary or
useful to its Development, Manufacture, sale, distribution, Commercialization, Exploitation or other use and, for greater certainty,
shall include any information, know-how, trade secrets, inventions (whether patentable or not), data and result arising or otherwise
resulting from the Development activities conducted by or on behalf of Eyegate pursuant to the terms of this Agreement.

 

(iii)        “Product
Patents” shall mean all United States and international Patents that at any time
during the Term of this Agreement are owned by Eyegate or an Affiliate of Eyegate or to which Eyegate or an Affiliate of Eyegate
has the right to grant licenses in the Field (“Eyegate Patents”), the claims of which may be infringed, absent
a license, by the Manufacture, Commercialization, distribution, use, sale, offer for sale or importation of the Product in the
Field, including, but not limited to, the Patents set out in Schedule 9.2(c) hereto, which may be updated from time to time to
include further inventions related to the Product.

 

(jjj)        “Prosecution
and Maintenance” or “Prosecute and Maintain” shall mean (i) with regard
to a particular Product Patent, the preparation, filing, prosecution and maintenance of such Product Patent, as well as reexaminations,
reissues, requests for patent term extensions and the like with respect to such Product Patent, together with the defense of oppositions,
inter partes reviews and other similar proceedings with respect to such Product Patent, or (ii) with regard to a particular Product
Trademark, the preparation, filing, prosecution, maintenance and renewal of such Product Trademark, together with the defense of
oppositions and similar proceedings with respect to such Product Trademark.

 

    	7

    	 

    

  

(kkk)        “Product
Trademark” shall mean the trademark “EYEGATE” including United States Patent and Trademark Office Trademark
Registration No. 2,934,679, and any such names, trademarks, trade names, trade
dress or logos used with respect to the Product during the Term of this Agreement and which are owned or licensed or otherwise
Controlled by Eyegate or any of its Affiliates.

 

(lll)        “Promote,”
“Promotional,” “Promotion,” “Promoting” and “Promoted”
mean those activities normally undertaken by a company to encourage sales or appropriate use of the Product, including details,
product sampling, detail aids, coupons, discount cards, journal advertising, direct mail programs, direct-to-consumer advertising,
convention exhibits and other forms of marketing, advertising, public relations or promotion.

 

(mmm)   “Recalls”
shall have the meaning set forth in Section 12.4.

 

(nnn)     “Receiving
Party” shall have the meaning set forth in Section 13.1.

 

(ooo)     
“Recoverable Amounts” shall have the meaning set forth in Section 11.7(e).

 

(ppp)     “Reduced
Royalty” shall have the meaning set forth in Section 7.4.

 

(qqq)     “Regulatory
Authority(ies)” shall mean any regulatory authority, agency, department, bureau, or other governmental entity, including
the FDA and corresponding foreign authorities, which is responsible for issuing approvals, licenses, registrations, clearances,
or authorizations necessary for the Development, registration, Manufacture, testing, formulation, assembly, packaging, labelling,
use, receipt, shipment, storage, import, export, transport, Commercialization, Promotion, marketing, distribution or sale of the
Product in a country.

 

(rrr)       “Regulatory
Exclusivity” shall mean any rights or protections which are recognized, afforded or granted by the FDA or any other Regulatory
Authority in any country or region of the Territory, in association with the Marketing Authorization of the Product, providing
the Product: (a) a period of marketing exclusivity, during which a Regulatory Authority recognizing, affording or granting such
marketing exclusivity shall refrain from either reviewing or approving a marketing authorization application or similar regulatory
submission, submitted by a Third Party seeking to market a Competitive Product, or (b) a period of data exclusivity, during which
a Third Party seeking to market a Competitive Product is precluded from either referencing or relying upon, without an express
right of reference from the dossier holder, the Product’s clinical dossier or relying on previous Regulatory Authority findings
of safety or effectiveness with respect to such Product to support the submission, review or approval of a marketing authorization
application or similar regulatory submission before the applicable Regulatory Authority.

 

(sss)    “Right
of Last Refusal” shall have the meaning set forth in Section 2.4.

 

    	8

    	 

    

  

(ttt)        “Royalties”
shall have the meaning set forth in Section 7.3.

 

(uuu)      “Sales-Based
Milestone Payment” shall mean each of the following payments:

 

(i)           a
[***] payment in respect of the first Calendar Year in which [***] in the Territory earned from the date of this Agreement equal
or exceed [***]; and

 

(ii)          a
[***] payment in respect of the first Calendar Year in which [***] in the Territory earned from the date of this Agreement equal
or exceed [***].

 

For the avoidance of doubt, a Sales-Based Milestone
Payment with respect to a level of cumulative Net Sales shall be payable only once with respect to such level of [***]; provided
that one or more additional Sales-Based Milestone Payments may be payable in respect of a Calendar Year where more than one level
of [***] triggering a Sales-Based Milestone Payment is reached. By way of example, if [***] in the Territory equal [***] in the
first Calendar Year and [***] in the second Calendar Year, a Sales-Based Milestone Payment of [***]would be payable with respect
to the first Calendar Year and a Sales-Based Milestone Payment of [***] would be payable with respect to the second Calendar Year,
and if [***] in the Territory equal [***] in the first Calendar Year and [***] in the second Year, no Sales-Based Milestone Payments
would be payable with respect to the first Calendar Year and Sales-Based Milestone Payments in the amount of [***] would be payable
with respect to the second Calendar Year.

 

(vvv)        “Sublicensee(s)”
shall mean a sub-licensee in respect of the rights and licenses granted hereunder, appointed in accordance with the terms and conditions
of this Agreement.

 

(www)       “Substitutable
Product” shall mean a product comprised of a drug and device, wherein said drug with respect to which there has been
made an authorized claim of A-rated therapeutically equivalent or otherwise therapeutically equivalent, as defined in the Orange
Book, with respect to the United States, or the foreign equivalent thereof in the relevant country in the Territory (outside the
United States), or similar determination of interchangeability with EGP-437, permitting the pharmacy to switch such product with
EGP-437 for use in the Field together and in combination with an approved or cleared device that is substantially comparable to
the EyeGate® II Delivery System, which determination has been made by the appropriate Regulatory Authority or by Applicable
Laws, or other claim of substitutability with the Product for use in the Field in the relevant country in the Territory for the
purpose of payor reimbursement, which has been established by a grant of the competent Regulatory Authority or by Applicable Laws.

 

(xxx)        “Term”
shall have the meaning set forth in Section 14.2.

 

(yyy)        “Territory”
shall mean the entire world.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

    	9

    	 

    

  

(zzz)      “Third
Party” shall mean any Person other than Eyegate or Valeant or their respective Affiliates.

 

(aaaa)     “Third
Party Licenses” shall have the meaning set forth in Section 11.7(e).

 

(bbbb)    “Transaction
Protocol” shall mean that certain Transaction Protocol (License Agreement), by and between Optis B.V., Optis Franca SA
(n/k/a EyeGate Pharma) and Mrs. Francine Behar-Cohen, dated as of July 23, 1999.

 

(cccc)     “United
States” or “U.S.” shall mean the United States of America and its territories and possessions, including
the District of Columbia and Puerto Rico.

 

(dddd)    “University
of Miami License Agreement” shall mean that certain Amended and Restated License Agreement, by and between University
of Miami and EyeGate Pharma (f/k/a Optis France SA), dated as of December 16, 2005, as amended.

 

(eeee)     “U.S.
Development Plan” shall have the meaning set forth in Section 4.3.

 

(ffff)      
“U.S. Marketing Authorization” shall mean the New Drug application (NDA) for the Product that is a combination
product of EGP-437 and the EyeGate® II Delivery System, together with any other Marketing Authorizations required to market
and sell the Product in the Development Field in the United States.

 

(gggg)    “Valeant”
shall have the meaning set forth in the Preamble.

 

(hhhh)    “Valeant
Stock” shall have the meaning set forth in Section 14.11(c).

 

(iiii)         “Valeant
Trademark” shall mean one or more trademarks owned or otherwise controlled by Valeant and used in connection with the
Product.

 

(jjjj)        “Valid
Claim” shall mean (a) a claim of an issued and unexpired Patent that (i) has not been rejected, revoked or held to be
invalid or unenforceable by a court or other authority of competent jurisdiction, from which no appeal can be taken or (ii) has
not been finally abandoned, disclaimed or admitted to be invalid or unenforceable through reissue or disclaimer; or (b) a claim
included in a pending patent application of a Patent that (i) has not been pending for more than five (5) years from the effective
date of filing such Patent application or (ii) has not been finally determined to be unallowable by the applicable court or other
authority of competent jurisdiction (from which no appeal is or can be taken).

 

(kkkk)    “Western
Europe” shall mean the countries set out on Schedule 1.1(kkkk) hereto.

 

    	10

    	 

    

  

ARTICLE
2

LICENSE GRANT TO VALEANT; RESPONSIBILITIES

 

2.1           License
Grant to Valeant. Subject to the terms and conditions of this Agreement, Eyegate hereby grants to Valeant and its Affiliates
during the Term:

 

(a)          an
exclusive (even as to Eyegate and its Affiliates) license, including the right to grant sublicenses (in accordance with Section
2.3), under the Product IP for Valeant and its Affiliates to Manufacture, have Manufactured, use, sell, offer for sale, import,
distribute, Commercialize and otherwise Exploit the Product in the Field in the Territory;

 

(b)          an
exclusive (even as to Eyegate and its Affiliates) license, including the right to grant sublicenses (in accordance with Section
2.3), under the Product IP for Valeant and its Affiliates to Develop the Product in the Field in the Territory outside the United
States; and

 

(c)          a
sole license (being exclusive except as to Eyegate and its Affiliates), including the right to grant sublicenses (in accordance
with Section 2.3), under the Product IP for Valeant and its Affiliates to Develop the Product in the Field in the United States,

 

and Valeant, on behalf of
itself and its Affiliates, hereby accepts such rights and licenses to carry out such activities under the terms and conditions
set forth in this Agreement.

 

2.2           Limited
Scope. Notwithstanding the foregoing, Eyegate shall retain all rights to the Product as necessary to exercise its rights and
perform its obligations to the extent expressly set forth in, and subject to, this Agreement. For the avoidance of doubt and without
limiting any other rights retained by Eyegate hereunder, Eyegate retains all rights not expressly granted to Valeant under this
Agreement, and the rights and obligations of the Parties under this Agreement shall be limited to only the Product and shall not
include any rights or obligations with respect to any other product of Eyegate.

 

2.3           Sublicensing.
Valeant shall have the right to grant sublicenses of the licenses granted pursuant to Section 2.1 to Third Parties. For clarity,
granting a sublicense shall not relieve Valeant of any of its obligations hereunder. Each sublicense granted hereunder shall be
subject to the terms of this Agreement.

 

2.4           Right
of Last Refusal for Use Outside the Field. Eyegate hereby grants Valeant a right of last refusal (the “Right of Last
Refusal”) to obtain rights to Manufacture, have Manufactured, use, sell, offer for sale, import, distribute, Commercialize
and otherwise Exploit the Product outside the Field in the Territory (the “Non-Field Rights”), on the following
terms:

 

    	11

    	 

    

  

(a)          During
the Term, Eyegate shall be free to do further research on the Product in all fields (subject to the limitations set forth in this
Agreement with respect to the Field) and enter into discussions with Third Parties for the Product outside the Field. Prior to
entering into material discussions with any Third Party regarding a possible agreement for Non-Field Rights, Eyegate will provide
written notice to Valeant. Valeant shall have [***] from such notification to provide written notice of its interest in negotiating
for such rights and shall have [***] from such notification to negotiate in good faith and enter into an agreement for such Non-Field
Rights on mutually acceptable terms. In the event that Valeant provides notice of its interest in such Non-Field Rights and the
Parties negotiate reasonably and in good faith, but the Parties are unable to agree upon mutually acceptable terms, then and only
then, in the event that Eyegate or any of its Affiliates proposes to grant, sell, assign or otherwise transfer all or any portion
of the same Non-Field Rights to a Third Party, Eyegate acknowledges and agrees that prior to entering into any binding agreement
for the grant of the same Non-Field Rights with any Third Party, Eyegate will notify Valeant and provide to Valeant a copy of the
fully negotiated final draft of such proposed agreement with such Third Party and offer to Valeant the opportunity to enter into
an agreement with Eyegate (or any of its Affiliates) for substantially the same rights and on substantially the same or equivalent
terms as set forth in such draft.

 

(b)          Provided
that Valeant has timely complied with all the terms set forth in Section 2.4(a), Valeant shall have [***] from the date Eyegate
notifies Valeant of its intent to enter into any binding proposed agreement as set forth in Section 2.4(a), to provide Eyegate
written notice of its decision with respect to the exercise of its Right of Last Refusal. If Valeant exercises its Right of Last
Refusal within such [***] period, Valeant and Eyegate shall negotiate, in good faith and acting reasonably, enter into an agreement
for substantially the same rights and on substantially the same or equivalent terms as set forth in the draft agreement provided
to Valeant pursuant to the terms of Section 2.4(a). If and only if Valeant fails to exercise its Right of Last Refusal within such
[***] period, Eyegate will be free to enter into such agreement with such Third Party; it being understood and acknowledged by
Eyegate that any material modification of the terms of such proposed agreement with the Third Party after it had been declined
by Valeant shall reinstate Eyegate’s obligations under this Section 2.4. If Eyegate or any of its Affiliates fails to enter
into such agreement with such Third Party within [***], Valeant’s Right of Last Refusal shall be reinstated.

 

(c)          Each
subsequent time that Eyegate proposes to grant, sell assign, or otherwise transfer all or any portion of the Non-Field Rights to
a Third Party, Valeant’s Right of Last Refusal shall be reinstated and both Parties shall comply with the requirements set
forth in Sections 2.40 and 2.4(b).

 

(d)          For
greater certainty, for the purposes of this Section 2.4, “Non-Field Rights” shall include the right to Manufacture,
have Manufactured, use, sell, offer for sale, import, distribute, Commercialize and otherwise Exploit the Eyegate® II Delivery
System alone or in conjunction with another drug or pharmaceutical product outside the Field in the Territory.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

    	12

    	 

    

  

2.5           Competitive
Products. [***] neither Party shall, nor shall it permit its Affiliates to, directly or indirectly (including by means of license),
Develop, make or have made, promote, market, sell or distribute in the Territory any Competitive Product, except pursuant to the
terms of this Agreement; provided, however, that [***], then Valeant (and its then Affiliates) shall be permitted
to continue to make or have made, promote, market, sell or distribute such Competitive Product in the Territory and such making
or having made, promotion, marketing, sale or distribution shall not be considered a breach of the terms of this Section 2.5. Notwithstanding
anything herein to the contrary, nothing shall prevent Valeant or its Affiliates from Developing, making or having made, promoting,
marketing, selling or distributing an Authorized Generic in the Field in the Territory.

 

2.6           Assistance
of Eyegate. Valeant shall have the right from time to time during the Term to request the assistance of Eyegate in relation
to technical services that assist Valeant in the Manufacturing of the Product, including the components of the Product, EGP-437
and the EyeGate® II Delivery System.

 

2.7           Limitations
on Valeant’s License. Notwithstanding the license granted to Valeant by Eyegate pursuant to Section 2.1 of this Agreement,
subject to Section 2.4, Valeant hereby covenants and agrees not to promote, sell or distribute, anywhere in the Territory, without
the prior written consent of Eyegate, any components of the Eyegate® II Delivery System other than for use in connection with
EGP-437 in the Field.

 

ARTICLE
3

Joint Steering Committee

 

3.1           Joint
Steering Committee. On or within thirty (30) days after the Effective Date, the Parties shall establish a Joint Steering Committee
(“JSC”) to serve as a forum for the discussion and exchange of information and
coordination of activities between the Parties solely with respect to the Product. In particular, the JSC shall be responsible
for:

 

(a)          discussing
and monitoring Development and Commercialization activities in relation to the Product, or to any improvement or further Development
thereof that the Parties may agree to undertake subject to the terms and conditions of this Agreement, including discussing and
coordinating clinical studies, including stability studies or other Development work required to obtain any Marketing Authorizations
or for marketing purposes;

 

(b)          facilitating
the exchange of information between the Parties under this Agreement regarding the implementation of Development activities;

 

(c)          discussing
and reviewing pricing, sales forecasts, trademark usage, marketing strategies and plans to seek and obtain Marketing Authorizations;

 

(d)          monitoring
the progress and results of Valeant’s Manufacturing, sale, distribution, Commercialization and Exploitation of the Product
in the Field in the Territory;

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

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(e)          reviewing
and discussing the strategy for obtaining, maintaining and enforcing Product IP protection for the Product in the Territory;

 

(f)          resolving
any disputes with respect to audits conducted by the Parties under this Agreement; 

 

(g)          approving
the U.S. Development Plan and the ex-U.S. Development Plan; and

 

(h)          such
other functions as may be mutually agreed upon by the Parties from time to time.

 

3.2           Membership
and Governance of the JSC.

 

(a)          The
JSC shall be comprised of four (4) members (the “Members”), with Eyegate appointing two (2) Members and Valeant
appointing two (2) Members as their respective representatives on the JSC. The initial Members of the JSC shall be notified by
each Party to the other Party in writing on the Effective Date or as soon as reasonably possible thereafter.

 

(b)          Each
Party shall be entitled to remove any Member appointed by it and to appoint any person to fill the vacancy arising from the removal
or retirement of such Member. Each Party shall give the other Party prior written notice of any changes in the identity of its
Members. The Parties shall ensure that all of their appointed Members are of a suitable level of expertise, seniority and decision-making
authority to deal with the issues that may arise in connection with matters to be considered by the JSC.

 

(c)          The
JSC shall exercise its authority in good faith and in accordance with the terms of this Agreement. The JSC shall have no authority
to bind the Parties unless the Parties expressly delegate matters to the JSC or ratify the decision of the JSC.

 

(d)          From
time to time, the JSC may establish one or more subcommittees to oversee particular projects or activities related to this Agreement,
and such subcommittees will be constituted as the JSC agrees. The Parties may replace their respective subcommittee representatives
at any time, with prior written notice to the other Party. Any such subcommittee shall be run on the same basis as the JSC (i.e.,
including, without limitation, an agreed equal amount of representatives appointed by each Party) except that any issue within
the purview of such a subcommittee that is not settled or determined by the applicable subcommittee shall be submitted to the JSC
for resolution. The chairperson of each subcommittee shall report on subcommittee efforts at each JSC meeting, and either Party
may invite its own representatives on such subcommittee to also report on such efforts.

 

3.3           Meetings
of the JSC.

 

(a)          At
least twenty-one (21) days prior to each regularly scheduled meeting of the JSC, written notice shall be given to each Member by
the Party convening the meeting and at least fourteen (14) days prior to each such meeting, each Party shall provide to the other
all written information expected to be disclosed at such meeting. In addition, special meetings of the JSC may be called on such
shorter notice period as may be agreed between the Parties.

 

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(b)          Valeant
shall designate a Valeant Member as the chairperson of the JSC. The chairperson of the JSC shall set meeting agendas for the JSC,
which shall include any matter that either Party requests to be included. Such agendas shall be circulated to all Members at least
seven (7) business days prior to the date of the relevant meeting. The JSC chairperson shall be responsible for recording, preparing
and (within ten (10) business days) issuing draft minutes of the JSC meetings, which draft minutes shall be reviewed, modified
and approved in writing by the Members.

 

(c)          The
JSC shall have its first meeting within forty-five (45) days after the Effective Date, and thereafter shall hold meetings at least
semiannually or as frequently as otherwise agreed by the Parties, by telephone or video conference. In the event that the Parties
agree to hold face-to-face meetings, the venue for the meeting of the JSC shall alternate between the U.S. headquarters of Eyegate
and Valeant, unless the Parties mutually agree otherwise. Each Party shall bear its own costs for its Members to attend JSC meetings
and, as applicable, for its obligations to host such meetings.

 

3.4           Limited
Purpose. The JSC shall have only the purpose as is specifically granted to it in this Article 3, and such powers shall be subject
to the terms and conditions set forth herein. Each Party shall retain the rights, powers and discretion over the matters allocated
to such Party herein, and no such rights, powers, or discretion shall be delegated to or vested in the JSC. The JSC shall not have
the authority to: (i) modify or amend the terms and conditions of this Agreement; (ii) waive either Party’s compliance
with the terms and conditions of under this Agreement; or (iii) determine any such issue in a manner that would conflict with
the express terms and conditions of this Agreement. Without limiting the foregoing, (a) Valeant will make the final determination
with respect to the Manufacture, sale, distribution, Commercialization or Exploitation of the Product in the Field in the Territory
and with respect to the Development of the Product in the Field in the Territory outside of the United States, and (b) Eyegate
will make the final determination with respect to the Development of the Product in the Development Field for the United States
(except as otherwise set forth herein). Notwithstanding the foregoing, following the approval of the U.S. Marketing Authorization,
if Valeant conducts its own Development of the Product in the Field in the United States, Valeant will make the final determination
with respect to such Development.

 

ARTICLE
4

Development

 

4.1           Eyegate
and Valeant Development Representatives. Promptly (and no later than thirty (30) days) after the Effective Date, each Party
shall designate in writing a representative of such Party that shall have the responsibility of communicating with the other Party’s
personnel regarding Development of the Product in the Field for the United States under this Agreement (including the provision
of such individual’s name, job title, fax and phone number). Each Party may change such representative from time to time
by written notice to the other Party containing the name and contact information for the new representative.

 

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4.2           Eyegate’s
Obligation to Develop the Product.

 

(a)          Eyegate
shall use Commercially Reasonable Efforts to (i) Develop the Product in the Development Field for the United States, and (ii) obtain
the Marketing Authorizations in the Development Field in the United States, including the U.S. Marketing Authorization. [***].

 

(b)          Notwithstanding
anything to the contrary set forth in Section 4.2(a), in the event that (i) either Party, acting reasonably and in good
faith, determines that additional Development work or activities [***] are required in order to support the Marketing Authorizations
in the Development Field in the United States or (ii) if a Regulatory Authority requires that additional Development work
or activities [***] are required in order to support the Marketing Authorizations in the Development Field in the United States,
then the Parties shall discuss in good faith whether such additional Development work is feasible or desirable, taking into account,
among other things, the anticipated costs of such additional Development work and the projected revenues from the Commercialization
of the Product in the Field in the Territory. If Valeant determines that such additional Development work is feasible and desirable,
then the costs of such additional Development work shall be shared equally by each Party; provided, however, that
if Eyegate notifies Valeant that Eyegate is unwilling or is not able to bear fifty percent (50%) of the costs of such additional
Development work, then the Parties shall negotiate, in good faith and acting reasonably, an alternative sharing of the costs of
such additional Development work. In the event that the Parties are unable to agree on an appropriate sharing of the costs of such
additional Development work, then (i) Valeant may elect to bear one hundred percent (100%) of the costs of such additional
Development work or (ii) if Valeant does not elect to bear one hundred percent (100%) of the costs of such additional Development,
then either party shall have the right to terminate this Agreement pursuant to Section 14.10. If Valeant determines that such
additional Development work is not feasible or desirable, then Valeant may terminate this Agreement pursuant to Section 14.10.
For the avoidance of doubt, unless this Agreement is validly terminated in accordance with Section 14.10, Eyegate will be
responsible, and shall have the obligation to, conduct any such additional Development work.

 

(c)          In
the event Valeant elects to bear one hundred percent (100%) of the costs of the additional Development work described in Section
4.2(a), (i) Eyegate will be responsible, and shall have the obligation to, conduct any such additional Development work and
Valeant shall reimburse Eyegate for the documented direct costs reasonably incurred by Eyegate in connection with such additional
Development work in accordance with the then-current U.S. Development Plan within [***] of the receipt by Valeant of invoices for
such additional Development work and (ii) the Royalties will be adjusted as described in Section 7.5. Valeant shall have
the right to offset all costs paid by Valeant for such additional Development work pursuant to this Section 4.2(c) against payments
due from Valeant to Eyegate pursuant to Article VII.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

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4.3           Development
Plans. The Development activities with respect to the Product in the Development Field for the United States conducted in connection
with this Agreement shall occur pursuant to a Development plan proposed by Eyegate and agreed upon by the JSC (the “U.S.
Development Plan”). Eyegate shall propose the initial U.S. Development Plan to the JSC within sixty (60) days after
the Effective Date, and the JSC shall discuss any amendments thereto and approve the initial U.S. Development Plan within ninety
(90) days after the Effective Date. Prior to submission to the JSC, Eyegate shall provide a draft of the U.S. Development Plan
for Valeant’s review and comment and Eyegate shall use good faith efforts to include Valeant’s comments in such U.S.
Development Plan. On at least an annual basis, Eyegate shall review, update and decide whether to amend the then-current U.S. Development
Plan to reflect any changes, reprioritizations of, or additions thereto. Any changes to the U.S. Development Plan shall require
approval by the JSC and once approved by the JSC, such updated or amended U.S. Development Plan shall become effective and supersede
the prior U.S. Development Plan. The U.S. Development Plan shall include:

 

(a)          a
reasonably detailed written plan of Development activities in the Development Field for the United States for the period of time
during which Development activities will be conducted, including any related target timelines;

 

(b)          plans
and timelines for preparing any and all materials that are necessary for any required or useful approvals or authorizations to
Commercialize the Product in the Field for the United States, including the U.S. Marketing Authorization; and

 

(c)          a
detailed budget, setting forth the level of spending with respect to the Development activities in the Development Field for the
United States for the period of time during which Development activities will be conducted.

 

4.4           Updates
on Product Development Progress. At least once every Calendar Quarter, both Parties shall provide each other with a summary
of the activities conducted during the preceding Calendar Quarter with respect to the Development of the Product. In addition,
at least once per year, Eyegate shall prepare and provide a copy of a detailed report describing the progress made in implementing
the U.S. Development Plan and at least once per year, Valeant shall prepare and provide a copy of a detailed report describing
the progress made in implementing the Ex-U.S. Development Plan. Each report shall include with respect to the applicable one (1)
year period a description of the Development activities conducted both within and outside the United States with respect to the
Product, as well as any proposed amendments or revisions to any development plan. Both Parties shall also provide each other with
regular telephonic updates on the progress made in implementing the development plans and other information as may be reasonably
requested.

 

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4.5           Development
Costs.

 

(a)          Eyegate
shall be responsible for one hundred percent (100%) of all Development costs incurred by or on behalf of Eyegate or any of its
Affiliates with respect to any Development of the Product (i) in the Development Field for the United States, and (ii) outside
of the Field. For the purposes of Development of the Product in the Development Field for the United States, such Development costs
shall include the costs associated with the completion of [***] and any additional costs agreed to by the Parties in accordance
with Section 4.2. To the extent the applicable Regulatory Authority requires a post-marketing study or some other post-approval
Development work in connection with the grant of a Marketing Authorization in the United States, the Parties shall meet to negotiate
a development plan for such additional studies and shall agree to split the costs associated with such Development work.

 

(b)          Valeant
shall be responsible for one hundred percent (100%) of all Development costs with respect to (i) any Development of the Product
in the Field for countries other than the United States, and (ii) any Development of the Product in the Field (but outside the
Development Field) in the United States.

 

(c)          Within
thirty (30) days of the end of each Calendar Quarter, Eyegate will submit to Valeant a report detailing Eyegate’s and its
Affiliates’ Development costs incurred during such Calendar Quarter for the Development of the Product in the Field for the
United States, including copies of invoices and any other supporting evidence necessary to substantiate such Development costs.

 

4.6           Development
Records. Eyegate shall maintain current and accurate records of all work conducted by it under the U.S. Development Plan and
all data, know-how and other results invented in connection with, generated by or that results from the conduct of such Development
activities (which records shall include, as applicable, books, records, reports, research notes, charts, graphs, comments, computations,
analyses, recordings, photographs, computer programs and documentation thereof (e.g., samples of materials and other graphic or
written data generated in connection with the Development activities)). Such records shall properly reflect all work done and results
achieved in the performance of the Development activities in sufficient detail and in good scientific manner appropriate for regulatory
and patent purposes. All such records shall be retained by Eyegate until the later of (a) three (3) years after the end of the
Calendar Year in respect of which payment such work is conducted and (b) the period of time required by Applicable Law.

 

4.7           Valeant’s
Development Rights and Obligations.

 

(a)          Valeant
and its Affiliates shall have the exclusive (even as to Eyegate and its Affiliates) right to Develop the Product in the Field for
countries outside of the United States, in accordance with the terms of this Agreement, and Valeant shall be responsible for all
costs associated with such Development. Following the receipt of the U.S. Marketing Authorization, Valeant and its Affiliates shall
also have the right to Develop the Product in the Field for the United States and Valeant shall be responsible for its own costs
of any such Development.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

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(b)          With
respect to Valeant’s (or its Affiliates’) Development of the Product in the Field for countries outside of the United
States, following the transfer of the U.S. Marketing Authorization to Valeant, Valeant shall prepare a development plan setting
out Valeant’s plans for the development of the Product in the Development Field outside the United States, including timing
and anticipated budget (the “Ex-U.S. Development Plan”). Valeant shall propose the initial Ex-U.S. Development
Plan to the JSC within [***] and the JSC shall discuss any amendments thereto and approve the initial ex-U.S. Development Plan
within ninety (90) days after such date. Prior to submission to the JSC, Valeant shall provide a draft of the Ex-U.S. Development
Plan for Eyegate’s review and comment and Valeant shall use good faith efforts to include Eyegate’s comments in such
Ex-U.S. Development Plan. On at least an annual basis, Valeant shall review, update and decide whether to amend the then-current
Ex-U.S. Development Plan to reflect any changes, reprioritizations of, or additions thereto. Any changes to the Ex-U.S. Development
Plan shall require approval by the JSC and once approved by the JSC, such updated or amended Ex-U.S. Development Plan shall become
effective and supersede the prior Ex-U.S. Development Plan.

 

(c)          Valeant
shall have the obligation to use Commercially Reasonable Efforts to Develop the Product in the Development Field for the Major
Market Countries in accordance with such Ex-U.S. Development Plan. In the event Valeant does not use Commercially Reasonable Efforts
to Develop the Product for use in the Development Field for any of the Major Market Countries in accordance with such Ex-U.S. Development
Plan, Eyegate shall have the right to terminate Valeant’s license for those Major Market Countries where Valeant has not
used Commercially Reasonable Efforts to Develop the Product in the Development Field in accordance with the Ex-U.S. Development
Plan and Eyegate shall be free to sell or license the Product in such Major Market Countries. Notwithstanding anything herein to
the contrary, prior to [***], (i) Eyegate shall not be entitled to exercise its termination right under this Section 4.7(c) and
(ii) Valeant’s failure to satisfy its obligation under this Section 4.7(c) to use Commercially Reasonable Efforts to Develop
the Product in the Development Field for the Major Market Countries in accordance with such Ex-U.S. Development Plan shall not
constitute a breach of this provision or this Agreement and Eyegate shall not be entitled to any damages and shall not have any
recourse in connection with any such failure.

 

ARTICLE
5

Commercialization AND MANUFACTURING

 

5.1           Commercialization
Generally. Valeant and its Affiliates shall have the exclusive (even as to Eyegate and its Affiliates) right to Commercialize
the Product in the Field in the Territory and to establish the strategy, including the price and sales strategy, for the Commercialization
of the Product in the Field in the Territory. Valeant and its Affiliates shall be responsible for establishing and approving (in
its sole discretion) the form, content and terms and conditions of contracts and other arrangements regarding the sale of the Product
in the Field in the Territory, including contracts with wholesalers, other distributors, and retailers (as applicable). Notwithstanding
anything herein to the contrary, Valeant shall be solely responsible for determining the prices of the Product in the Field in
the Territory.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

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5.2           Reimbursement
for Medical Procedures. Before submitting any request, application or information to a governmental entity for the purpose
of obtaining, maintaining or changing a Healthcare Common Procedure Coding System (HCPCS) code (J-Code) or Current Procedural Terminology
(CPT) code for the Product or for the medical procedures involving the Product, Valeant shall submit such proposed request, application
or information to Eyegate for prior written approval, which approval shall not be unreasonably withheld or delayed. Valeant shall
not make any material changes to such request, application or information after it has been approved by Eyegate without the prior
written consent of Eyegate, except to the extent such changes are required by applicable laws or regulations. Valeant shall promptly
notify Eyegate of all changes made to any such request, application or information that has been previously approved by Eyegate
and shall consult with Eyegate with respect to any changes required by applicable laws or regulations.

 

5.3           Promotion
Rights and Responsibilities. Notwithstanding anything herein to the contrary, during the Term, subject to, and in accordance
with, the terms and conditions of this Agreement, Valeant and its Affiliates shall have the exclusive right to Promote the Product
under the Product Trademarks or the Valeant Trademarks throughout the Territory in the Field; provided that, notwithstanding
this exclusive right, during the Term of this Agreement, Eyegate shall have the non-exclusive right, at its own expense, to publish
journal articles and make presentations relating to or mentioning the Product in the Field with the prior written consent of Valeant,
such consent not to be unreasonably withheld, provided that Valeant is provided with a copy of such journal articles and
presentations a reasonable amount of time in advance of such publication or presentation and Eyegate uses good faith efforts to
include in such articles or presentations the comments of Valeant thereon. For the sake of clarity, Eyegate shall be free to publish
journal articles and make presentations concerning Eyegate’s technology relating to iontophoresis or any products outside
the Field without the need of Valeant’s consent.

 

5.4           Manufacturing
Rights.

 

(a)          Valeant
shall have the exclusive right to Manufacture or have Manufactured the Product (including its components) for use in the Field
in the Territory and for establishing the strategy for the Manufacture of the Product, including as to whether to Manufacture the
Product (and its components) through its Affiliates or Third Parties and to select any such Third Party manufacturers and suppliers.
Valeant and its Affiliates shall be responsible for establishing and approving (in its sole discretion) the form, content and terms
and conditions of contracts and other arrangements regarding the Manufacture of the Product in the Field in the Territory, including
contracts with Third Party suppliers of the Product or components of the Product and Third Party packagers. On request by Valeant,
Eyegate shall facilitate introductions with its Third Party suppliers and manufacturers of the Product and its components to enable
Valeant to purchase Product directly from such third party suppliers.

 

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(b)          In
the event that Valeant is manufacturing the Product, either itself or through an Affiliate or Third Party, and Eyegate wishes to
obtain supply of Product from such source, whether for Development purposes or for use outside of the Field, the Parties shall
meet to discuss the appropriate strategy of providing supply of Product to Eyegate, which may include (i) if Valeant or its Affiliate
is manufacturing the Product, the good faith negotiation of a supply agreement, on mutually agreeable terms (including provisions
relating to priority of supply in supply shortage situations), pursuant to which Valeant or its Affiliates supplies Product to
Eyegate at a purchase price of [***] or some other mutually agreeable purchase price, or (ii) if Valeant (or its Affiliate) obtains
supply of Product from a Third Party manufacturer, (A) the negotiation of a supply agreement between Valeant (or its Affiliate)
and Eyegate, pursuant to which Valeant (or it Affiliate) supplies Product to Eyegate on the same terms as Valeant (or its Affiliate)
receives supply from the Third Party manufacturer, with such mutually agreeable adjustments as may be agreed to between the Parties
(including with respect to purchase price and priority in supply shortage situations), (B) facilitation of introductions to such
Third Party manufacturer for the purposes of permitting Eyegate to obtain direct supply from such manufacturer, or (C) the assignment
to Eyegate of the supply arrangements with such Third Party manufacturer and the concurrent negotiation of a supply agreement between
Eyegate and Valeant (or its Affiliate) pursuant to which Eyegate supplies Product to Valeant (or its Affiliates) on the same terms
as Eyegate receives supply from the Third Party manufacturer, with such mutually agreeable adjustments as may be agreed to between
the Parties (including with respect to purchase price and priority in supply shortage situations). If both Parties act reasonably
and in good faith in determining an appropriate supply strategy and, if agreed, in negotiating a supply agreement between the Parties,
the obligations of the Parties under this Section 5.4(b) shall have been satisfied.

 

ARTICLE
6

Regulatory

 

6.1           Marketing
Authorizations.

 

(a)          United
States. Eyegate shall use Commercially Reasonable Efforts to seek and obtain the U.S. Marketing Authorization for the Product
in the Development Field, with Valeant’s assistance, support and cooperation; provided, however, that, except
as set forth in Section 4.7, Eyegate shall be responsible for one hundred percent (100%) of all costs with respect to seeking and
obtaining such U.S. Marketing Authorization. Valeant and Eyegate shall mutually agree on a strategy and plan to obtain the U.S.
Marketing Authorization. Upon obtaining such U.S. Marketing Authorization for the Product, Eyegate shall, as promptly as practicable,
transfer such U.S. Marketing Authorization, together with the regulatory dossier associated with such U.S. Marketing Authorization,
to Valeant (or its designee), at Valeant’s cost and with Valeant’s assistance, support and cooperation. Upon the transfer
of such U.S. Marketing Authorization and its regulatory dossier, Eyegate shall retain a right of reference to such U.S. Marketing
Authorization and its regulatory dossier for the purposes of the products outside of the Field. Following such transfer, during
the Term of this Agreement, Valeant shall maintain such U.S. Marketing Authorization, at Valeant’s cost. If Valeant fails
to maintain such U.S. Marketing Authorization for the Product or makes the decision to no longer maintain such U.S. Marketing Authorization,
on Eyegate’s request, Valeant shall promptly transfer such U.S. Marketing Authorization to Eyegate (or its designee), at
Eyegate’s cost.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

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(b)          Outside
the United States. Valeant shall have the exclusive right to seek, obtain and maintain Marketing Authorizations for the Product
in the Field in the Territory outside of the United States, at its own cost and shall use Commercially Reasonable Efforts to obtain
Marketing Authorizations for the Product in the Development Field in the Major Market Countries in accordance with the Ex-U.S.
Development Plan; it being understood that, notwithstanding the foregoing, Valeant shall not be required to
seek to obtain any such Marketing Authorizations prior to [***]. Following the transfer of the U.S. Marketing Authorization, Valeant
shall also have the right to seek, obtain and maintain Marketing Authorizations for the Product in the Field in the Territory for
the United States

 

(c)          Notwithstanding
anything herein to the contrary, Eyegate shall not, and shall not permit its Affiliates or representatives, to seek, apply for
or obtain either a Premarket Approval (PMA), a Premarket Notification 510(k) or a CE mark for the EyeGate® II Delivery System
alone (i.e., on a stand-alone basis), unless either (i) such PMA, Premarket Notification 510(k) or CE mark is applied for
in conjunction with a drug product or (ii) Valeant has given its prior written consent (which may be withheld in its sole
discretion).

 

6.2           Communications
with Regulatory Authorities.

 

(a)          United
States. As between the Parties, subject to the terms of this Section 6.2(a), in connection with seeking and obtaining Marketing
Authorizations for the Product in the Development Field for the United States, Eyegate shall have the sole responsibility and authority
to communicate with any applicable Regulatory Authorities prior to obtaining such Marketing Authorizations. Without limiting the
provisions of this Article 6, Eyegate shall promptly provide Valeant with copies of all written and electronic communications received
by Eyegate or its Affiliates from, or forwarded by Eyegate or its Affiliates to, any applicable Regulatory Authorities with respect
to obtaining Marketing Authorizations for the Product in the Development Field in the United States. With respect to such written
and electronic communications forwarded by Eyegate or its Affiliates to any Regulatory Authorities, prior to submission to the
applicable Regulatory Authority, Eyegate shall provide Valeant with copies thereof so that Valeant may review and comment on such
communications and have a reasonable opportunity to influence the substance of such submissions. Eyegate agrees to consider all
such comments in good faith, taking into account the best interest of the Development of the Product in the Field on a global basis.
Following the transfer to Valeant (or its designee) of a Marketing Authorization for the Product in the Development Field in the
United States, Valeant shall have the sole responsibility and authority to communicate with any applicable Regulatory Authorities
in the United States in connection with the Product in the Field in the United States or the Marketing Authorizations for the United
States. Following the transfer of the Marketing Authorization, Valeant shall consult with Eyegate with respect to, or provide Eyegate
a right of review of or copies of, any correspondence with such Regulatory Authorities regarding the Marketing Authorizations in
the United States.

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

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(b)          Outside
the United States. Valeant shall have the sole responsibility and authority to communicate with any applicable Regulatory Authorities
outside the United States in connection with the Product in the Field outside of the United States or the Marketing Authorizations
for countries outside the United States, including with respect to the application for such Marketing Authorizations. Valeant shall
provide Eyegate a right of review of or copies of, any correspondence with such Regulatory Authorities regarding the Marketing
Authorizations outside of the United States.

 

(c)          General.
During the Term of this Agreement, each Party shall send the other Party, promptly upon receipt, copies of any correspondence or
other materials received by such Party from a Regulatory Authority relating to the Product in the Territory. In addition, during
the Term of this Agreement, each Party shall send the other Party, promptly upon submission, copies of any correspondence, submissions
or filings made by such Party to a Regulatory Authority relating to the Product in the Territory. Promptly upon receipt of notification
from the Regulatory Authority, a Party shall notify the other Party of any audit or inspection being conducted by a Regulatory
Authority respecting or relating to the Product. If permitted by Applicable Law, the other Party shall be entitled to attend on
such audit or inspection. Following such inspection or audit, the Party shall provide the other Party, promptly upon receipt, a
copy of any report, findings or other results received from such Regulatory Authority with respect to such audit or inspection.

 

ARTICLE
7

Compensation for Product

 

7.1           License
Fees and Milestone Payments Related to Signing and Development and Regulatory Milestones. In consideration for the license
granted to Valeant and its Affiliates hereunder, and in addition to any other payments provided for in this Agreement, Valeant
shall pay to Eyegate Pharmaceuticals the following non-refundable and non-deductible license fees and milestone payments:

 

(a)          an
initial license fee in the amount of one million dollars ($1,000,000), due and payable on the Effective Date;

 

(b)          milestone
payments in the aggregate amount of up to [***] (each a “Development Milestone Payment”), payable upon the achievement
by Eyegate of the milestone events as specified in Appendix B to this Agreement (each, a “Development Milestone”);
and

 

(c)          a
milestone payment in the amount of [***], due and payable within fifteen (15) calendar days after the date of [***].

 

*** CONFIDENTIAL TREATMENT REQUESTED

 

    	23

    	 

    

  

7.2           Milestone
Payments Related to Sales Milestones. In consideration for the license granted to Valeant and its Affiliates hereunder, and
in addition to any other payments provided for in this Agreement, not later than [***], Valeant shall provide to Eyegate Pharmaceuticals
a report setting out [***] and Valeant shall pay to Eyegate Pharmaceuticals any Sales-Based Milestone Payments payable with respect
to such Calendar Year not later than [***]. Following the payment by Valeant of both Sales-Based Milestone Payments, Valeant’s
obligation under this Section 7.2 to provide annual reports to Eyegate shall cease.

 

7.3           Royalties.
In consideration for the license granted to Valeant and its Affiliates hereunder, for each [***] during the Term, not later than
[***] in the Term, Valeant shall provide to Eyegate Pharmaceuticals a report setting out [***] and a calculation of the royalties
payable hereunder (the “Royalties”) for such Calendar Quarter, in each case, on a country by country basis for
each country in the Territory in which the Product is sold and for which Royalties are payable. Royalties shall be payable hereunder
as follows: for each [***] of the Term, Valeant shall pay to Eyegate Pharmaceuticals a Royalty in an amount equal [***] in each
country in the Territory occurring during such [***] not later than [***]. The Royalties payable pursuant to this Section 7.3 shall
be subject to reduction as set forth in Section 7.4.

 

7.4           Reduction
in Royalty Rate. Notwithstanding Section 7.3, on a country-by country basis, the Royalties payable pursuant to Section 7.3
shall be reduced to [***] from and after the date on which (a) [***] or (b) [***]; provided, however, that
in the case of clause (a), such Royalties shall only be reduced to [***] in such country if (i) [***] (“Reduced Royalty”),
(ii) [***] and (iii) [***]; provided further that, once the condition in either clause (i) or (ii) ceases to be satisfied,
the Royalty shall be further reduced to [***] for such country. Once a Royalty payable in a country has been reduced pursuant to
this Section 7.4, such Royalty shall not be subsequently increased, even if the conditions in clauses (a) and (b) in the immediately
preceding sentence cease to be applicable in such country; provided that, in the event that, subsequent to such Royalty
reduction, either (x) [***], (y) [***], or (z) [***], then, following receipt by Valeant of written notice from Eyegate of the
existence of such condition, the Royalty shall be reverted back to the applicable level (pursuant to the terms of Sections 7.3
and 7.4), until such time as the conditions in (x), (y) or (z) cease to be satisfied, at which time the Royalty shall be reduced
to the prior level. Following the reduction of the Royalty to [***] in any country in the Territory, Valeant’s obligation
under Section 7.3 to provide [***] Royalty reports to Eyegate shall cease with respect to such country.

 

7.5           Offset
for Additional Development Costs; Reduced Royalty. In the event Valeant elects to bear one hundred percent (100%) of the costs
of additional Development work described in Section 4.2(a) (other than the Initial Development Work), (a) Valeant shall have
the right to offset all costs paid by Valeant for such additional Development work pursuant to Section 4.2(b) against payments
due from Valeant to Eyegate pursuant to this Article VII until one hundred percent (100%) of such costs have been paid and (b) subject
to Section 7.4, the Royalties payable pursuant to Section 7.3 shall be reduced to [***].

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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7.6           Payments.
All payments to be made pursuant to this Article 7 shall be made in U.S. dollars by wire transfer no later than the applicable
payment due date. Such payments shall be made to the designated account of Eyegate Pharmaceuticals in accordance with wiring instructions
to be provided. Payments are to be wired to the account specified in Appendix A to this Agreement, which may be changed by Eyegate
Pharmaceuticals from time to time by written notice to Valeant. Any payments due under this Agreement which are not paid by the
date such payments are due under this Agreement shall bear interest to the extent permitted by applicable law at the lower of (i)
[***] or (ii) the maximum rate permitted by law; in each case calculated on the number of days such payment is delinquent.

 

7.7           Conversion
of Foreign Currencies. To the extent that Net Sales are accrued in currencies other than United States dollars, such Net Sales
shall be converted to United States dollars using the applicable monthly exchange rate for converting such local currency to Unites
States dollars in accordance with Valeant’s worldwide accounting systems and policies.

 

7.8           Collection
Actions. In the event of any legal action to collect unpaid amounts due under this Article 7, the losing Party shall be reimburse
the winning Party for all attorneys’ fees and reasonable costs incurred in such action.

 

7.9           Taxes.
Valeant may withhold the appropriate tax from any payment to be made to Eyegate Pharmaceuticals under this Agreement provided that
such withholding is required by Applicable Laws and Valeant submits the amounts withheld to the applicable tax authorities. In
such event, Valeant shall furnish Eyegate Pharmaceuticals with proof of payment of such tax together with official or other appropriate
evidence issued by the applicable government authority. The Parties will cooperate to enable payments under this Agreement to be
exempt from withholding tax, or to be paid subject to the reduced rate of withholding tax provided by an applicable double tax
treaty in force at the relevant time. Without limiting the foregoing, the Parties agree to cooperate and produce on a timely basis
complete and accurate tax forms or reports, including, but not limited to, an IRS Form W-8BEN or W-8ECI, an IRS Form W-9, and/or
a certificate of residency, as applicable, reasonably requested by the other Party in connection with any payment under this Agreement.
Each Party further agrees to provide reasonable cooperation to the other Party, at the other Party’s expense, in connection
with any official or unofficial tax audit or contest relating to payments made under this Agreement. All sums payable under this
Agreement are exclusive of value added tax or other similar applicable taxes or duties which shall be payable by the paying Party
at the appropriate rate prescribed by law from time to time. 

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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ARTICLE
8

Recordkeeping; Audits

 

8.1           Records.
Valeant shall maintain complete and accurate records in reasonably sufficient detail of Net Sales, License Fees and Milestone Payments
and the Royalties and all other amounts due from it to Eyegate under this Agreement, for a period of at least two (2) years after
the end of the Calendar Year in respect of which payment is to be made hereunder, and during the Term of this Agreement, Valeant
shall maintain accurate data collection and reporting systems for the foregoing. Eyegate shall maintain, for a period of at least
two (2) years after the end of the Calendar Year in respect of which payment is to be made hereunder, complete and accurate records
in reasonably sufficient detail of all proceeds received by Eyegate and its Affiliates in respect of the Product and all Development
costs incurred pursuant to the terms of this Agreement, and during the Term of this Agreement, Eyegate shall maintain accurate
data collection and reporting systems for the foregoing.

 

8.2           Audits.

 

(a)          During
the Term and for a period of two (2) years thereafter, upon the reasonable request of a Party hereunder (the “Auditing
Party”) and no more than once per year during the Term, the Auditing Party shall have the right to engage an independent,
certified public accountant(s), reasonably acceptable to the other Party (the “Audited Party”), to perform an
audit of the Audited Party’s books and records and those of its Affiliates for the preceding two (2) year period as may be
necessary to confirm any amounts paid or payable under this Agreement for such period.

 

(b)          Such
audits shall be conducted during normal business hours upon reasonable prior written notice from the Auditing Party in such a manner
as to not unnecessarily interfere with the Audited Party’s or its Affiliate’s normal business activities. The accountants
shall report its conclusions and calculation to both Parties; provided, however, that in no event shall the accountants
disclose information except to the extent necessary to verify the accuracy of the payments due under this Agreement, and at the
request of either Party such accountants shall execute appropriate non-disclosure agreements with such Party.

 

(c)          If
an audit hereunder reveals an underpayment by Valeant to Eyegate, Valeant shall promptly make up such underpayment.
If an audit hereunder reveals an overpayment by Valeant to Eyegate, Eyegate shall promptly refund Valeant for the amount of such
overpayment.  The Auditing Party shall bear the full cost of such audit under this Section 8.2, unless such audit, in
the case of an audit initiated by Eyegate, discloses an underpayment to Eyegate of License Fees and Milestone Payments or Royalties
of more than [***] of the amount owed during the period being audited, in which case Valeant shall bear the full cost of such audit,
and, in the case of an audit initiated by Valeant, discloses an overpayment by Valeant of more than [***] of the amount owed during
the period being audited, in which case Eyegate shall bear the full cost of such audit.

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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8.3           Payments.
All payments to be made pursuant to this Article 8 shall be made by wire transfer in U.S. dollars no later than the applicable
payment due date. Such payments shall be made to the designated account of Eyegate or Valeant, as the case may be, in accordance
with wiring instructions to be provided.

 

ARTICLE
9

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

9.1           Representations,
Warranties and Covenants of Valeant. Valeant represents, warrants and covenants to Eyegate as follows:

 

(a)          
(i) Valeant is duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated;
and (ii) that Valeant has the requisite legal and company authority to enter into this Agreement and that it is not bound by any
other agreement, obligation or restriction, and shall not assume any other obligation or restriction or enter into any other agreement,
which would interfere in any material respect or conflict with its obligations under this Agreement.

 

(b)          
Valeant is, and covenants that it shall continue to be, in compliance with all requirements of Applicable Laws relevant to its
obligations and activities as set forth in this Agreement.

 

(c)          Assuming
the due authorization, execution and delivery by Eyegate, this Agreement is a legally valid and binding obligation of Valeant,
enforceable against Valeant in accordance with its terms (except in all cases as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally
and except that the availability of the equitable remedy of specific performance or injunctive relief is subject to the discretion
of the court or other tribunal before which any proceeding may be brought).

 

9.2           Representations,
Warranties and Covenants of Eyegate. Eyegate Pharmaceuticals and EyeGate Pharma each represent, warrant and covenant to Valeant,
as follows:

 

(a)          
(i)  Each of Eyegate Pharmaceuticals and EyeGate Pharma is duly organized, validly existing, and in good standing under the
laws of the jurisdiction in which it is organized; and (ii)  each of Eyegate Pharmaceuticals and EyeGate Pharma has the requisite
legal and company authority to enter into this Agreement and that it is not bound by any other agreement, obligation or restriction,
and shall not assume any other obligation or restriction or enter into any other agreement, which would interfere in any material
respect or conflict with its obligations under this Agreement.

 

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(b)          Eyegate
owns or Controls intellectual property rights pertaining to the Product, Product Know-How and other Product IP, necessary to grant
the license to Valeant and its Affiliates hereunder and to perform its obligations hereunder. Eyegate has not received any written
notice from any Third Party which expressly alleges that the use or sale of the Product would infringe, misappropriate or otherwise
violate a composition of matter or method of use claim of an issued U.S., European or other Patent of such Third Party or any other
intellectual property rights of a Third Party and the Manufacture, Commercialization, Development, Exploitation, use or sale of
the Product will not infringe, misappropriate or otherwise violate a composition of matter or method of use claim of an issued
U.S., European or other Patent of such Third Party or any other intellectual property rights of a Third Party. There are no pending,
or to the best of Eyegate’s knowledge, threatened interferences and oppositions with respect to the Product Patents, and
there is no pending, or to the best of Eyegate’s knowledge, threatened litigation challenging the validity or enforceability
of the Product Patents. The Product Patents are, or upon issuance will be, valid and enforceable. To the best of Eyegate’s
knowledge, no Third Party is infringing or misappropriating the Product Patents, Product Know-How and other Product IP.

 

(c)          Schedule
9.2(c) contains a complete and correct list of all Patents Controlled by Eyegate relating to the Product.

 

(d)          Eyegate
and its Affiliates have taken reasonable steps to protect and preserve the confidentiality of all material confidential Product
IP. All current and former employees, consultants, and contractors of Eyegate and its Affiliates who are or have been involved
in Developing the Product have executed and delivered and, to the best of knowledge of Eyegate, are in material compliance with,
agreements regarding the protection of Product IP and providing written assignments of all Product IP (other than moral rights)
conceived or developed by such employees, consultants or contractors in connection with their services for Eyegate or any of its
Affiliates. No current or former employee, consultant or contractor has any right, claim to or interest in any of the Product IP
(other than moral rights).

 

(e)          Eyegate
is, and covenants that it shall continue to be, in compliance in all material respects with all requirements of Applicable Laws
relevant to its obligations and activities as set forth in this Agreement.

 

(f)          All
Development activities conducted by or on behalf of Eyegate and its Affiliates with respect to each of the Product, EGP-437 and
the EyeGate® II Delivery System, including all pre-clinical and clinical investigations, have been and are being conducted
in compliance in all material respects with all Applicable Laws. To the best of Eyegate’s knowledge, no event has occurred
and no circumstances exist that may result in a violation of, conflict with, or failure on the part of Eyegate and its Affiliates
to comply with Applicable Laws in connection with the Product or its Development. Neither
Eyegate nor any of its Affiliates has received any written notification, correspondence or any other written communication from
any Regulatory Authority, including the FDA, alleging any potential or actual material non-compliance by Eyegate or any of its
Affiliates under Applicable Law relating to the Product.

 

(g)          As
of the Effective Date, the Product IP is free and clear of liens, charges and encumbrances.

 

(h)          Assuming
the due authorization, execution and delivery by Valeant, this Agreement is a legally valid and binding obligation of Eyegate,
enforceable against Valeant in accordance with its terms (except in all cases as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally
and except that the availability of the equitable remedy of specific performance or injunctive relief is subject to the discretion
of the court or other tribunal before which any proceeding may be brought).

 

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(i)          Eyegate
shall promptly provide Valeant with copies of all written notices and other material written communications from the FDA and/or
any other Regulatory Authorities or regulatory agencies that relate to or reasonably impact the Product in the Field, EGP-437 or
the EyeGate® II Delivery System or that may affect Valeant’s ability or right to Manufacture, sell, distribute, Commercialize
and otherwise Exploit the Product as contemplated by this Agreement. Eyegate covenants to disclose to Valeant any Product-related
information that comes into the possession or Control of Eyegate or its Affiliates during the Term of this Agreement that is necessary
or useful for Valeant to exercise its rights or perform its obligations under this Agreement in relation to the Product.

 

(j)          Eyegate
has not granted to any Person any license, sublicense or other rights, entered into any agreement or understanding or undertaken
any obligation that in any way conflicts or is inconsistent with this Agreement or the rights and licenses granted to Valeant and
its Affiliates under this Agreement. None of Eyegate Pharmaceuticals, EyeGate Pharma or any of their respective Affiliates shall
grant to any Person any license, sublicense or other rights, enter into any agreement or understanding or undertake any obligation
that in any way conflicts or is inconsistent with this Agreement or the rights and licenses hereunder.

 

(k)          Schedule
9.2(k) hereto sets out all Contracts relating to the Product, EGP-437 or the EyeGate® II Delivery System
or their Development (the “Product Contracts”), accurate and complete copies of which have been delivered to
Valeant by Eyegate. Each of the Product Contracts are in full force and effect and enforceable in accordance with their terms against
Eyegate and, to the best knowledge of Eyegate, against the other parties thereto (except in all cases as such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’
rights generally and except that the availability of the equitable remedy of specific performance or injunctive relief is subject
to the discretion of the court or other tribunal before which any proceeding may be brought).  None of Eyegate Pharmaceuticals,
EyeGate Pharma or any of their Affiliates is in default under any of the Product Contracts, and there has not occurred any event
that, with the lapse of time or the giving of notice or both, would constitute such a default. No counterparty to any Product Contract
has cancelled or otherwise terminated or, to the best of Eyegate’s knowledge, threatened to cancel or otherwise terminate
the applicable Product Contract.

 

(l)          As
of the Effective Date, Eyegate has disclosed or made available to Valeant (a) all material scientific and technical information
known to it or its Affiliates relating to (i) the safety and efficacy of the Product and (ii) the drug quality, including, stability,
variability, and impurities of the Product and (b) all material regulatory materials submitted to or filed with any Regulatory
Authority by or on behalf of Eyegate or any of its Affiliates and the status of all material discussions with Regulatory Authorities
in respect of the Product (if any). All such scientific and technical information and regulatory materials are accurate and materially
complete. To the best of Eyegate’s knowledge, no data generated
by Eyegate or any of its Affiliates with respect to the Product is the subject of any regulatory or other action, either pending
or threatened, by any Regulatory Authority relating to the truthfulness of such data or the scientific adequacy of such data for
its intended purpose. Neither Eyegate nor any of its Affiliates has applied for or obtained a Premarket Approval (PMA) or
a Premarket Notification 510(k) for the EyeGate® II Delivery System.

 

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(m)          There
is no action, suit or other proceeding pending or, to the best of Eyegate’s knowledge, threatened anywhere in the Territory
(i) relating to or involving the Product, EGP-437 or the EyeGate® II Delivery System or (ii) that could prevent, enjoin or
delay the transactions or activities contemplated by this Agreement. There is no order, injunction, judgment or decree of a Regulatory
Authority relating to or involving the Product, EGP-437 or the EyeGate® II Delivery System.

 

(n)          To
the best of Eyegate’s knowledge, there is no information, and no event or circumstance has occurred, that would reasonably
be expected to lead to the denial of any application for Marketing Authorization in the Territory. Eyegate is not aware of any
safety issues relating to the Product, EGP-437 or the EyeGate® II Delivery System.

 

(o)          Other
than as disclosed in Schedule 9.2(o) hereto, none of the Product IP owned by Eyegate or its Affiliates was developed by or on behalf
of, or using grants or any other subsidies of, any Regulatory Authority or other governmental entity or any university, and no
government funding, facilities, faculty, employees or students of a university, college, other educational institution or research
center.

 

9.3           Disclaimer.

 

(a)          EXCEPT
AS EXPRESSLY SET FORTH HEREIN, ALL OTHER WARRANTIES, CONDITIONS AND REPRESENTATIONS, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE,
INCLUDING WITHOUT LIMITATION ANY WARRANTY AS TO THE QUALITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR OF NON-INFRINGEMENT, ARE HEREBY
EXCLUDED AND DISCLAIMED BY EACH PARTY AND THEIR RESPECTIVE AFFILIATES.

 

(b)          Nothing
in this Agreement shall be deemed to authorize either Party or its respective Affiliates to act for, represent or bind the other
Party or any of its Affiliates other than as specifically provided in this Agreement.

 

ARTICLE
10

STATUS OF THE PARTIES

 

10.1         No
Joint Venture or Partnership. Nothing contained in this Agreement shall be construed as creating an employee-employer relationship
or a principal-agent relationship or making the parties joint venturers or partners or, except as otherwise expressly provided
herein (if at all), as granting to either Party the authority to bind or enter into any contracts or incur any obligations in the
name of or on the account of the other Party or to make any guarantees or warranties on behalf of the other Party.

 

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ARTICLE
11

TRADEMARKS; INTELLECTUAL PROPERTY RIGHTS

 

11.1         Product
Trademarks.

 

(a)          Valeant
shall have the obligation to use the Product Trademark in connection with the Manufacture, Commercialization, sale, distribution
or other Exploitation of the Product in the Field in the Territory; provided that Valeant shall also have the right (but
not the obligation) to select, register, maintain and use a Valeant Trademark in conjunction with such Product Trademark in connection
with the Manufacture, Commercialization, sale, distribution or other Exploitation of the Product in the Field in the Territory,
including in relation to the combination Product or EGP-437, but not in relation to the EyeGate® II Delivery System itself.
Valeant shall not use the Product Trademarks for any purpose other than for the use expressly authorized under this Agreement,
and during the Term shall not register, challenge, oppose or use a trademark, trade dress or trade name that is the same as, confusingly
similar to, or a derivative of or combination with, any Product Trademark. Valeant acknowledges and agrees that, as between the
Parties, Eyegate shall retain all right, title and interest in and to the Product Trademarks except for the rights expressly granted
to Valeant herein, and all use of such Product Trademarks and goodwill associated therewith shall inure exclusively to the benefit
of Eyegate.

 

(b)          If,
with respect to a particular country in the Territory, (i) the Product Trademark cannot, under Applicable Laws, be used for
the Manufacture sale, distribution, Commercialization and Exploitation of the Product in such country, (ii) Eyegate is unable
to maintain registration of the Product Trademark in any particular country or such mark is otherwise unavailable or (iii) it
is commercially unreasonable to use the Product Trademark for the Manufacture sale, distribution, Commercialization and Exploitation
of the Product in such country, then, notwithstanding Section 11.1(a), Valeant shall not be obligated to use the Product Trademark
and shall have the right, but not the obligation, to select, register and maintain, during the Term of this Agreement, a Valeant
Trademark for use for the Manufacture, sale, distribution, Commercialization and Exploitation of the Product in such country (including
in relation to the EyeGate® II Delivery System), at its own expense.

 

(c)          Each
of the Parties shall use the Product Trademark in accordance with sound trademark and trade name usage principles, in accordance
with any Eyegate trademark usage guidelines (as provided to Valeant from time to time) and in accordance with all Applicable Laws
as reasonably necessary to maintain the validity and enforceability of the Product Trademark.

 

11.2         Ownership
of Collaboration Results. Except to the extent separately and expressly agreed between the Parties and subject to the terms
hereof, including the licenses and other rights granted hereunder, the entire right, title and interest in and to all Collaboration
Results (including all Patents and other intellectual property rights relating thereto) shall be owned solely by the Party that
invented, created or developed such Collaboration Results, without any obligation to reimburse the other Party except for what
is expressly provided hereunder. However, Eyegate shall have a non-exclusive perpetual fully paid up royalty free license to practice
or use any and all Valeant Collaboration Results solely in connection with the Product outside the Field and solely to the extent
necessary or useful for the development, manufacture and/or commercialization of the Product outside the Field.

 

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11.3         Joint
Inventions. Any intellectual property arising or resulting from the inventive work by one or more employees of Eyegate and
of Valeant, as to which such employees would be joint inventors under the patent laws of the United States (“Joint Inventions”),
shall be jointly owned by the Parties (each Party having an undivided interest therein and the right to use without accounting
to the other), and all of Eyegate’s rights and interests therein shall be subject to the License if and to the extent that
such intellectual property is useful or necessary for the exercise of the License. The laws of the United States with respect to
joint ownership of inventions shall be applied in all jurisdictions of the world to the Parties’ joint ownership interests.

 

11.4         Patent
Marking. Valeant shall mark the Product (or packaging thereof) with the applicable patent and patent application numbers in
accordance with all applicable laws and regulations.

 

11.5         Patent
Term Extensions. Eyegate will, after discussing its strategy with Valeant and reasonably considering Valeant’s
comments, in each country in the Territory, determine for which, if any, of the Patents within the Eyegate Patents and Eyegate’s
Collaboration Results, and Joint Patents, Eyegate will apply to extend the patent term with respect to the Product, as provided
for in patent term extension laws or regulations in the Territory similar to the Patent Term Restoration Act or other similar
laws and regulations affording an extension or restoration of patent terms in the United States, which similar laws and regulations
shall include without limitation any Supplementary Protection Certificates. Eyegate shall act with reasonable promptness in light
of the development stage of the Product to apply for any such extension. Valeant shall not make any submissions, filings
or other communications with any governmental agency with respect to patent term restoration (or other similar grant of a monopoly
right with respect to the Product) for any Patents within the Eyegate Patents or Eyegate’s Collaboration Results or Joint
Patents in the Territory without Eyegate’s express consent. Valeant will cooperate fully with Eyegate in making such filings
at Eyegate’s sole expense which may include without limitation, making available regulatory data and information.

 

11.6         Prosecution
and Maintenance of Product IP. Eyegate shall be obligated to Prosecute and Maintain Product Patents and Product Trademarks
at its sole expense; provided, however, that Eyegate shall provide Valeant with copies of all correspondence regarding
the prosecution of Product Patents with sufficient time for Valeant to comment, and to the extent possible, at least forty-five
(45) days prior to any response being due to the applicable patent office, and Eyegate will consider in good faith reasonable comments
provided by Valeant. Eyegate shall keep Valeant informed as to material developments with respect to the Prosecution and Maintenance
of Product Patents and Product Trademarks, including by promptly providing to Valeant copies of any substantive documents that
Eyegate receives from any patent office (including notice of reissues, reexaminations, oppositions or requests for patent term
extensions), and by providing Valeant the opportunity to have reasonable input into the strategic aspects of such Prosecution and
Maintenance. If Eyegate elects not to Prosecute and Maintain Patents covering any Product Patent(s) or Product Trademark(s) in
any country, then Eyegate shall provide at least sixty (60) days’ prior written notice to Valeant. Thereafter, upon Valeant’s
request, Eyegate shall and hereby does assign all of its right, title and interest in and to such Product Patent(s) and/or Product
Trademark(s), and Valeant shall have the right, but not the obligation, to pursue, at its sole expense and in its sole discretion,
the Prosecution and Maintenance of such Product Patent(s) and/or Product Trademark(s) in such country.

 

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11.7         Protection
of Product IP.

 

(a)          Each
Party shall notify the other Party promptly upon becoming aware that there exists an actual or potential infringement or misappropriation
by Third Parties in the Territory of the Product IP in the Field, or that the Product or any intellectual property rights Covering
the Product, might or actually infringe or misappropriate, or are dependent upon a Third Party intellectual property right in the
Territory. The Parties shall meet to discuss and agree a joint strategy for prosecuting such infringement, including decisions
on which Party will control resulting actions, assistance from the other Party and sharing of costs and revenues from such litigation.
If the Parties fail to agree on the terms of such joint action within thirty (30) days from such notification, then Sections 11.7(b)
and (c) shall apply.

 

(b)          Valeant
shall have the first opportunity, but not the obligation, to bring any suit or action for infringement of any Product IP. Any infringement
action brought by Valeant shall be solely at Valeant’s expense. If requested, Eyegate shall provide reasonable assistance
in the prosecution of such suit or action at Valeant’s expense, and Eyegate shall have the right, but not the obligation,
at its expense to join as a party in any infringement action brought by Valeant; provided, however, that Eyegate
agrees to be joined as a party plaintiff if Valeant finds it legally necessary to join Eyegate. Eyegate shall execute all such
papers necessary and perform such other acts as may reasonably be required by Valeant in connection with the filing or prosecution
of the infringement suit or action at Valeant’s expense. Valeant shall have control over such suit or action; provided
that Valeant consults with Eyegate with respect to any such suit or action; provided, further, that Valeant may not
settle or compromise such suit or action without the prior written consent of Eyegate, which consent shall not be unreasonably
withheld, conditioned or delayed. In the event that monetary damages are awarded or obtained by Valeant whether by judgment, award,
decree, settlement or otherwise, as a result of any infringement action brought by Valeant, the money actually received shall be
retained by Valeant and considered as Net Sales (solely for the purposes of calculating Net Sales and not for the purposes of calculating
the Sales-Based Milestone Payments), after first deducting the expenses incurred by Valeant in filing, prosecuting, maintaining
and enforcing such suit or action, with an obligation on part of Valeant to pay Royalties to Eyegate, as set out in Article 7,
in relation to any remaining balance.

 

(c)          In
the event that (i) Valeant fails to commence an infringement suit or take appropriate action for Product IP as set forth in Section
11.7(b), within the earlier of (A) ninety (90) days after Eyegate’s written request for Valeant to initiate such action or
(B) forty-five (45) days prior to the expiry of any applicable statute of limitation, or (ii) Valeant notifies Eyegate in writing
of its decision not to take such action, Eyegate shall have the right, but not the obligation to bring an appropriate suit or action
against the Third Party infringer within the relevant jurisdiction at Eyegate’s expense. Valeant shall have the right, but
not the obligation, at its cost to join as a party; provided, however, that Valeant agrees to be joined as a party
plaintiff if Eyegate finds it legally necessary to join Valeant. Valeant shall execute all such papers necessary and perform such
other acts as may reasonably be required by Eyegate in connection with the filing or prosecution of the infringement suit or action
at Eyegate’s expense. In the event that monetary damages are awarded or obtained by Eyegate, whether by judgment, award,
decree, settlement or otherwise, as a result of any infringement action brought by Eyegate, the money actually received shall be
split equally between the Parties, after first deducting the expenses incurred by Eyegate in filing, prosecuting, maintaining and
enforcing such suit or action.

 

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(d)          In
the event that a Third Party commences or threatens to commence any suit or action against a Party, alleging infringement of such
Third Party’s intellectual property rights by the Development, Manufacture, having Manufactured, use, marketing, Promotion,
distribution, Commercialization, sale, offer to sell, having sold, export or import of the Products by Valeant, its Affiliates
or its Sublicensees or Eyegate, its Affiliates or its Sublicensees, the Party against whom such proceedings is threatened or commenced
shall give prompt notice to the other Party. Subject to the terms and conditions of Article 15, each Party shall be responsible
for defense of all such claims against such Party; provided that Eyegate may not settle or compromise any such claim without
the prior written consent of Valeant, which consent shall not be unreasonably withheld or delayed.

 

(e)          Subject
to Section 11.7(f) below, in the event that, in order for Valeant to perform its obligations or exercise its rights under this
Agreement, including to Manufacture, Commercialize and Exploit the Product in the Territory, Valeant, any of its Affiliates or
any of its Sublicensees are required to obtain one or more licenses under patents or other intellectual property rights of Third
Parties that, in the absence of such license(s), would be infringed by Valeant’s (or its Affiliates’ or Sublicensees’)
performance hereunder ( “Third Party Licenses”), [***] of all amounts actually paid under such Third Party Licenses
by Valeant, its Affiliates and Sublicensees (“Recoverable Amounts”) shall be creditable against the License
Fees and Milestone Payments and Royalties due to Eyegate by Valeant hereunder, and Valeant shall thus be entitled to withhold such
amounts from future payment obligations that otherwise would have been due to Eyegate. Valeant shall consult with Eyegate prior
to entering into any agreements on Third Party Licenses and provide Eyegate with a reasonable opportunity to provide its views
on the need or benefit to obtain such license agreement and the financial and other terms thereof. Notwithstanding anything in
this Section 11.7(e), Eyegate shall have the obligation to pay 100% of any and all royalties due on existing licenses from Third
Parties to which Eyegate (or its Affiliates) is a party as of the date hereof, including any such licenses set out under Schedule
9.2(k).

 

(f)          Notwithstanding
Section 11.7(e) above, in the event that the requirement to obtain one or more Third Party Licenses constitutes a breach by Eyegate
of one or more of its representations, warranties or other obligations under this Agreement, [***] of all Recoverable Amounts shall
be creditable against the License Fees and Milestone Payments and Royalties due to Eyegate by Valeant hereunder and Valeant shall
thus be entitled to withhold such amounts from future payment obligations that otherwise would have been due to Eyegate; provided
that, in the case of the Royalties, (i) the Royalties may only be reduced with respect to the country in which such Third Party
License applies and

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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(ii) the Royalty rate then
payable shall be reduced by no more than [***] as a result of the deduction of the Recoverable Amounts.

 

(g)          The
Parties shall reasonably cooperate with each other with respect to any litigation, action, suit, claim or proceeding under this
Section 11.7. The Party prosecuting or controlling the defence of any proceeding under this Section 11.7 shall be referred to in
this context as the “Litigating Party”. The other Party in this context shall be referred to as the “Non-Litigating
Party”. In respect of any action commenced under Section 11.7(b) or (c), if the Litigating Party is unable to initiate
or prosecute such action solely in its own name or it is otherwise advisable to obtain an effective remedy, the other Party will
join such action voluntarily and will execute and cause its Affiliates and Sublicensees to execute all documents necessary for
the enforcing Party to initiate litigation to prosecute and maintain such action.

 

ARTICLE
12

ADVERSE EVENT REPORTING, MEDICAL INFORMATION AND REGULATORY MATTERS; RECALLS

 

12.1         Prompt
Notification. Each Party shall notify the other Party of any adverse event reports or complaints associated with the use of
the Product that comes to such Party’s attention, but in no event more than two (2) calendar days, in the event such
reports or complaints come to such Party’s attention on any day other than a Friday, or three calendar days, in the event
such reports or complaints come to such Party’s attention on a Friday, after receiving such information, as necessary to
enable each Party to comply with all Applicable laws, each Party’s internal policies regarding the recording and reporting
of such events and complaints and its obligations to third parties. Without limiting the foregoing, each Party shall provide a
copy to the other Party of any information that such Party obtains or receives concerning the Product or package complaint. Additionally,
Eyegate shall transfer all requests it receives for medical information relating to the Product to Valeant.

 

12.2         Valeant
Reporting Responsibilities.

 

(a)          Valeant
shall be solely responsible, at its sole expense, for recording, evaluating, summarizing and reviewing all adverse drug experiences
and complaints associated with the Product in the Field in the Territory, and timely reporting all such information to the FDA
and any other applicable professional or Regulatory Authority in accordance with Applicable Laws, including without limitation
those that apply to the promotion and marketing of the Product in the Field in the Territory. Valeant shall respond to all requests
for medical information relating to the Product in the Field in the Territory received by Valeant. In addition, Valeant shall be
responsible for all other reporting requirements under Applicable Laws arising from its Manufacture, sale, distribution, Commercialization
and Exploitation of the Product in the Field in the Territory. Eyegate shall provide Valeant with all information, assistance and
cooperation reasonably requested by Valeant in undertaking such reporting.

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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(b)          Eyegate
shall be solely responsible, at its sole expense, for recording, evaluating, summarizing and reviewing all adverse drug experiences
and complaints associated with the Product outside the Field in the Territory, and timely reporting all such information to the
FDA and any other applicable professional or Regulatory Authority in accordance with Applicable Laws, including without limitation
those that apply to the promotion and marketing of the Product in the Field in the Territory. Eyegate shall respond to all requests
for medical information relating to the Product outside the Field in the Territory received by Eyegate. In addition, Eyegate shall
be responsible for all other reporting requirements under Applicable Laws arising from its Manufacture, sale, distribution, Commercialization
and Exploitation of the Product outside the Field in the Territory. Valeant shall provide Eyegate with all information, assistance
and cooperation reasonably requested by Eyegate in undertaking such reporting.

 

12.3         Pharmacovigilance
Agreement. The Parties will, promptly after the Effective Date, enter into a pharmacovigilance agreement that will govern the
Parties’ obligations under Sections 12.1 and 12.2 in further detail, and that will cover other matters typically contained
in similar agreements for products of a similar nature.

 

12.4         Recalls.
The Parties shall immediately contact each other in the event that either Party has reason to believe that the recall of the Product,
EGP-437 or the EyeGate® II Delivery System may be necessary. The Parties shall fully cooperate and shall resolve any issues
with respect to all recalls, field corrections and market withdrawals (“Recalls”) of Product, EGP-437 or the
EyeGate® II Delivery System including the necessity of declaring the Recall, the manner in which the Recall should be conducted
and the duration of the Recall. Valeant shall be responsible for the administration of the Recall and for all costs and expenses
of any such Recalls with respect to the Product in the Field; provided that (i) if such Recall is the result solely
of (A) the failure by Eyegate or its Affiliates or representatives to comply with any Applicable Law or (B) the negligent
or willful act or omission of Eyegate or its Affiliates or representatives, in which case the costs and expenses of such Recall
shall be paid by Eyegate, and (ii) if such Recall is the result of the negligent or willful act or omission of both Eyegate
and Valeant, the Parties shall share the costs and expenses of such Recall in proportion to their relative fault. Eyegate shall
be responsible for the administration of the Recall and for all costs and expenses of any such Recalls with respect to the Product
outside the Field.

 

ARTICLE
13

CONFIDENTIALITY; PUBLIC STATEMENTS

 

13.1         Confidential
Information. Each Party acknowledges and agrees that it shall have access to, or receive, the Confidential Information of the
other Party in the course of performance of the services required under this Agreement. For the purposes of this Agreement, the
“Confidential Information” shall mean any information (whether oral or written or otherwise in tangible or intangible
form) received pursuant to this Agreement by one Party or any Affiliate thereof (“Receiving Party”) from or
on behalf of the other Party or any Affiliate thereof (“Disclosing Party”), whether or not developed by the
Disclosing Party, including but not limited to, any and all information which relates in any way to any ideas, designs, methods,
discoveries, improvements, documents or other results of the Parties’ activities to be conducted hereunder, trade secrets,
proprietary rights, business affairs, marketing strategies or information, customer information or employee information, and without
limiting the foregoing, in the case of Eyegate, proprietary or confidential information relating to the Product or the Product
IP, and in the case of Valeant, certain proprietary or confidential information or know-how with respect to Valeant’s performance
of its obligations hereunder. Confidential Information of the Disclosing Party shall not be subject to the obligations set forth
in Section 13.2 to the extent that such information:

 

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(a)          is,
at the time of disclosure, in the public knowledge;

 

(b)          becomes
part of the public knowledge after disclosure, by publication or otherwise, except by breach of this Agreement by the Receiving
Party or other obligation of confidentiality owed to the Disclosing Party;

 

(c)          is
demonstrably in the Receiving Party’s possession at the time of disclosure and which was not acquired, directly or indirectly,
from the Disclosing Party or any Third Party which was, at the time of such acquisition, subject to an obligation of confidentiality
owed to the Disclosing Party;

 

(d)          is
received by the Receiving Party from third parties, provided such information was not obtained, directly or indirectly,
from the Disclosing Party or any Third Party which was, at the time such information was obtained, subject to an obligation of
confidentiality owed to the Disclosing Party; or

 

(e)          was
independently developed by the Receiving Party, without use of or access to the information provided by the Disclosing Party (as
demonstrated by competent proof).

 

13.2         Confidentiality
Obligations. Each Party acknowledges and agrees that the Confidential Information of the Disclosing Party constitutes valuable
information and in certain instances trade secrets of the Disclosing Party. Each Receiving Party shall keep all Confidential Information
of the Disclosing Party in confidence and shall not, at any time during or after the Term of this Agreement, without the Disclosing
Party’s prior written consent, disclose or otherwise make available, directly or indirectly, any item of the Disclosing Party’s
Confidential Information to anyone other than the Receiving Party’s employees, licensors, distributors, manufacturers, Affiliates
and representatives who need to know the same in the performance of such Party’s obligations hereunder and who are bound
by obligations of confidentiality, except, however, to the extent otherwise required by Applicable Laws or rules of a securities
exchange, or to the extent necessary for such Party to confer with its legal, accounting or other advisors (in which case such
disclosure shall be made under confidentiality). Each Receiving Party, its employees and representatives, shall use the Confidential
Information of the Disclosing Party only in connection with the performance of the Receiving Party’s obligations or exercising
the Receiving Party’s rights hereunder and for no other purpose. Each Receiving Party shall inform its employees and representatives
of the trade secret, proprietary and confidential nature of the Confidential Information of the Disclosing Party and their obligation
to use the Confidential Information only for such purposes as is entitled to use it hereunder.

 

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13.3         Return
of Confidential Information. Upon termination of this Agreement, the Receiving Party agrees to promptly, and in any event not
more than thirty (30) days following such termination, return to the Disclosing Party any and all of its Confidential Information;
provided that the Receiving Party shall be entitled to retain one copy solely for archival purposes, provided that such
Confidential Information continues to be subject to the confidentiality restrictions under this Agreement as long as so retained
and such Confidential Information is not accessed by anyone other than the Receiving Party’s systems backup personnel or
its legal and regulatory compliance personnel.

 

13.4         Public
Statements. Each Party hereto agrees not to issue, and shall cause its Affiliates, representatives and agents not to issue,
any press release or other public statement disclosing the existence of, or relating to this Agreement, including without limitation
its terms and substance, without the prior written consent of the other Party; provided, however, that neither Party
shall be prevented from complying with any duty of disclosure it may have under Applicable Laws, including applicable federal securities
regulations, in which case the affected Party shall use reasonable efforts to notify the other Party in advance of such disclosure
and take reasonable steps to limit or avoid such disclosure where available under Applicable Laws. Valeant consents to Eyegate’s
press release concerning this Agreement, to be issued on or about the Effective Date, as set forth in Appendix C
attached hereto.  In addition, each Party may disclose the terms of this Agreement (i) in confidence on terms no less restrictive
than those contained herein to the extent required in connection with a bona fide Third Party acquisition or financing; (ii) as
advisable or required in connection with any government or regulatory filings, including without limitation filings with the FDA,
provided that the filing party consults in advance of such disclosure in good faith with the Party whose Confidential Information
is to be disclosed with respect to the specific disclosure and seeks confidential treatment to the extent reasonably practicable;
and (iii) as required to be disclosed in such Party’s financial statements as reasonably required or recommended by such
Party’s independent auditor.

 

ARTICLE
14

TERM; TERMINATION

 

14.1         Effective
Time. This Agreement shall become effective on the Effective Date.

 

14.2         Term
of this Agreement. The term of this Agreement shall commence as of the Effective Date, and shall continue until terminated
as set forth in this Article 14 (the “Term”).

 

14.3         Voluntary
Termination by Valeant upon Notice. Valeant may terminate this Agreement at any time by providing ninety (90) days’ prior
written notice to Eyegate.

 

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14.4         Termination
by Eyegate for Cessation of U.S. Commercialization. If, following the commercial launch of the Product in the Development Field
in the Territory, Valeant or its Affiliates or Sublicensees cease selling and distributing the Product in the United States in
the Field for a period of at least [***], provided that such failure to sell or distribute does not result or arise (a) from
the breach by Eyegate of any representation, warranty, covenant or agreement in this Agreement or other negligent or wilful act
or omission of Eyegate, (b) from a Force Majeure Event, or (c) from any other event or a cause beyond Valeant’s
reasonable control (including a supply failure or supply shortage), then Eyegate shall have the right to terminate this Agreement
upon [***] prior written notice to Valeant, provided that Valeant (or its Affiliate or Sublicensee) does not recommence
selling or distributing the Product in the Field in the United States during such [***] notice period and is continuing to so sell
and distribute upon the termination of such [***] notice period.

 

14.5         Termination
for Breach. Either Party shall have the right to terminate this Agreement upon the material breach of any of the terms and
conditions of this Agreement by the other Party, if such breach is not cured within [***] after the breaching Party’s receipt
of written notice from the other Party specifying the nature of such breach in reasonable detail.

 

14.6         Termination
for Infringement or Violation of Law. Valeant shall have the right to terminate this Agreement immediately upon a determination
by a court of competent jurisdiction that Valeant’s Manufacture, sale, distribution, Commercialization or Exploitation of
the Product in accordance with the terms hereof results in a violation or infringement upon any trademark, tradename, copyright,
Patent, trade secret or other rights held by any Person or a violation of Applicable Law.

 

14.7         Bankruptcy;
Insolvency. Either Party may terminate this Agreement upon the occurrence of either of the following:

 

(a)          The
entry of a decree or order for relief by a court of competent jurisdiction in respect of the other Party in an involuntary case
under the Federal Bankruptcy Code, as now constituted or hereafter amended, or any other applicable federal, state or foreign insolvency
or other similar law and the continuance of any such decree or order that is unstayed and in effect for a period of [***]; or

 

(b)          The
filing by the other Party of a petition for relief under the Federal Bankruptcy Code, as now constituted or hereafter amended,
or any other applicable federal, state or foreign insolvency or similar law.

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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14.8         Rights
in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by Eyegate are, and will otherwise be deemed
to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as
defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that Valeant as licensee of such rights under this Agreement,
will retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code including, without limitation,
Valeant’s right to retain all licenses granted herein, subject to payments when due to Eyegate of all applicable License
Fees and Milestone Payments and Royalties. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding
by or against Eyegate under the U.S. Bankruptcy Code, Valeant will be entitled to a complete duplicate of (or complete access to,
as appropriate) the Product IP and all embodiments of such Product IP, and same, if not already in its possession, will be promptly
delivered to Valeant (a) upon any such commencement of a bankruptcy proceeding upon its written request therefor, unless Eyegate
elects to continue to perform all of its obligations under this Agreement, or (b) if not delivered under (a) above, following the
rejection of this Agreement by or on behalf of Eyegate upon written request therefor by Valeant.

 

14.9         Mutual
Termination. The Parties may terminate this Agreement on mutually agreeable terms, as set out in a mutual termination agreement,
including pursuant to Section 4.2 of this Agreement.

 

14.10         Additional
Development Work. In accordance with, but subject to, Section 4.2 of this Agreement, on [***] prior written notice to the other
Party, (a) Valeant may terminate this Agreement if Valeant determines that any additional Development work required to be
conducted under Section 4.2 is not feasible or desirable or (b) either Party may terminate this Agreement if (i) the
Parties are unable to agree on an appropriate sharing of the costs of such additional Development work and (ii) Valeant does
not elect to bear one hundred percent (100%) of the costs of such additional Development work.

 

14.11         Consequences
of Termination.

 

(a)          The
termination of this Agreement shall not affect any rights or obligations of the Parties under this Agreement which by their terms
are intended to survive such termination, including, without limitation, Section 11.1, this Section 14.11 and Articles 1,
7–8 (to the extent necessary to complete payment obligations accruing during the Term, or to exercise a Party’s audit
rights as provided therein), 12, 13, 15 (as to activities conducted during the Term) and 16 hereto, which shall survive termination
of this Agreement for as long as necessary to permit their full discharge. In addition, the termination of this Agreement shall
not affect any rights or obligations of the Parties arising in any way out of this Agreement which are accrued prior to the date
of termination.

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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(b)          Upon
termination of this Agreement for any reason, Valeant shall pay to Eyegate all earned, but unpaid Development Milestone Payments
and Sales-Based Milestones Payments. In addition, upon termination of this Agreement by Valeant pursuant to Section 14.3 or 14.10
or by Eyegate pursuant to Section 14.5, to the extent that Eyegate has engaged in Development work but has not yet achieved the
then next Development Milestone, then Valeant shall reimburse Eyegate for [***] of any reasonable, documented out-of-pocket costs
incurred by Eyegate in connection with such Development work up to the amount of the then next Development Milestone Payment.

 

(c)          Upon
termination of this Agreement for any reason (other than by Eyegate pursuant to Section 14.10 or by Valeant pursuant to Section
14.5), Valeant shall retain all inventory of Product then in its possession (the “Valeant Stock”) for a “sell-off”
period not to exceed [***] from the date of such termination during which Valeant and its Affiliates shall have the right to sell,
distribute and Commercialize the Valeant Stock subject to the terms of this Agreement, including, but
not limited to, the rendering of reports and making of payments required under this Agreement, and, for the avoidance of
doubt, the licenses granted by Eyegate to Valeant pursuant to Section 2.1, including, but not limited to, the right to use
all Product IP, shall continue until the end of such [***] “sell-off” period with respect to the Valeant Stock. During
the [***]“sell-off” period, Valeant shall fully cooperate and coordinate with EyeGate or its designee to ensure an
orderly and seamless transfer of manufacturing marketing responsibilities. Following the expiration of this [***] “sell off”
period, Valeant shall, with the assistance and cooperation of Eyegate, transfer to Eyegate (or its designee) any Marketing Authorizations
held by Valeant or its Affiliates in the Territory, at Eyegate’s cost and Eyegate shall have an exclusive perpetual fully
paid up royalty free license to any Collaboration Results for use in any product in any field.

 

(d)          Except
as expressly set out herein, the license granted to Valeant hereunder shall not survive the termination of this Agreement; provided
that, in the event of termination by Valeant pursuant to Section 14.5, the licenses and rights granted to Valeant pursuant to Section
2.1 herein shall become exclusive, perpetual, fully-paid up licenses and shall survive the termination of this Agreement. In the
event of any such termination, Eyegate shall, upon reasonable request from Valeant and at Valeant’s costs, cooperate with
and assist Valeant in the transition of the Product and any ongoing Development work from Eyegate to Valeant (or its designee),
including with respect to the transfer of any Marketing Authorizations for the Product (including any application therefor), any
contracts or agreements required for the Development or Commercialization of the Product and any ongoing studies or trials and,
if required, complete the submission for the U.S. Marketing Authorization.

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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ARTICLE
15

INDEMNIFICATION; LIMITATION ON LIABILITY; INSURANCE

 

15.1         Indemnification
by Valeant. Valeant shall indemnify, defend and hold Eyegate and its Affiliates and their respective directors, officers, employees,
agents, successors and assigns harmless from and against any and all losses, claims, suits, actions, damages, assessments, interest
charges, penalties, costs and expenses (including without limitation reasonable attorneys’ fees) (hereinafter collectively,
the “Losses”), arising out of (a) the breach by Valeant of any of its obligations, representations, warranties
or covenants in this Agreement, (b) the Manufacture, sale, distribution, Commercialization or Exploitation of the Product
by, or on behalf of, Valeant or its Affiliates in violation of Applicable Laws or (c) a negligent or willful act or omission on
the part of Valeant or any of its directors, officers, agents or employees in connection with this Agreement, except, in each case,
to the extent such Losses are covered by Eyegate’s indemnification of Valeant pursuant to Section 15.2.

 

15.2         Indemnification
by Eyegate. Eyegate Pharmaceuticals and Eyegate Pharma shall, on a joint and several basis, indemnify, defend and hold Valeant
and its Affiliates and their respective directors, officers, employees, agents, successors and assigns harmless from and against
any and all Losses, arising out of (a) the breach by Eyegate of any of its obligations, representations, warranties or covenants
in this Agreement, (b) a negligent or willful act or omission on the part of Eyegate or any of its directors, officers, agents
or employees, (c) all liabilities to Third Parties relating to the Product arising or incurred on or prior to the Effective Date,
or (d) any violation or infringement upon any trademark, tradename, copyright, Patent, trade secret or other rights held by
any Person in the manufacture, use, sale, offering for sale, import or promotion of the Product, except to the extent such Losses
are covered by Valeant’s indemnification of Eyegate pursuant to Section 15.1.

 

15.3         Indemnification
Procedures. A Party (the “Indemnitee”) which intends to claim indemnification under this Article 15
shall promptly notify the other Party (the “Indemnitor”) in writing of any action, claim or liability in respect
of which the Indemnitee or any of its directors, officers, employees or agents intend to claim such indemnification, provided
that the failure to provide timely notice to the Indemnitor shall not release the Indemnitor from any liability to the Indemnitee
to the extent the Indemnitor is not prejudiced thereby. Within fifteen (15) days after such notification is delivered by the Indemnitee
to the Indemnitor, the Indemnitee shall permit, and shall cause its employees and agents to permit, the Indemnitor to assume the
defense of any such action or claim with qualified counsel at the Indemnitor’s sole cost and expense, provided, however,
that if the Indemnified Party shall have reasonably concluded that representation of both Indemnitor and Indemnitee by the same
counsel would be inappropriate due to an actual conflict of interests between them, the Indemnitee shall be able to obtain its
own counsel at the expense of the Indemnitor. If the Indemnitor does not deliver written notice to the Indemnitee of its intent
to assume control of such defense within such fifteen (15) day period, the Indemnitee may assume such defense with qualified
counsel if its choice at the sole cost of the Indemnitor. If the Indemnitor assumes such defense hereunder, the Indemnitee may
participate in such defense through counsel of its own selection at the Indemnitee’s sole cost and expense. Neither party
shall settle or consent to entry of judgment of any such claim or dispute without the other Party’s prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed; provided that the Indemnitee shall be deemed to
have granted such consent if either (i) such settlement does not adversely affect the Indemnitee, and does not impose any
obligation or liability on the Indemnitee which cannot be assumed and performed in full by the Indemnitor, or (ii) such settlement
involves only the payment of money by the Indemnitor or its insurer. The Indemnitor shall not be responsible for any attorneys’
fees or other costs incurred other than as provided in this Agreement. The Indemnitee, its employees and agents, shall provide
reasonable and good faith assistance (including but not limited to documents and testimony) to the Indemnitor and its legal representatives,
at the Indemnitor’s expense, in the investigation and defense of any action, claim or liability covered by this indemnification.

 

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15.4         LIMITATION
ON LIABILITY. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, NO PARTY TO THIS AGREEMENT SHALL BE LIABLE TO OR OTHERWISE RESPONSIBLE
TO THE OTHER PARTY OR ANY AFFILIATE OF THE OTHER PARTY FOR LOST REVENUES OR PROFITS, OR INCIDENTAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY
OR MULTIPLIED DAMAGES THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR THEREOF, EXCEPT (A) IN
CONNECTION WITH A BREACH OF ARTICLE 13, (B) FOR FRAUD, OR (C) TO THE EXTENT THAT SUCH DAMAGES WERE ACTUALLY PAID TO A
THIRD PARTY PURSUANT TO A THIRD PARTY CLAIM.

 

15.5         Insurance.
As from the Effective Date, and for a period of five (5) years after the termination of this Agreement, each Party shall maintain
adequate liability insurance coverage to cover its liabilities related to its activities and obligations under this Agreement in
such amounts and with such coverage as is customary for similar companies in the pharmaceutical business, including any legally
mandatory insurance (or reasonable self-insurance sufficient to provide materially the same level of protection).

 

ARTICLE
16

MISCELLANEOUS PROVISIONS

 

16.1         Force
Majeure. Failure of either Party hereto to fulfill or perform its obligations under this Agreement shall not subject such Party
to any liability if such failure is due to an event or a cause beyond its reasonable control, such as unforeseen nationwide labor
conflict, acts of God, fire, earthquakes, floods, war, mobilization or unforeseen military call-up of a large magnitude, requisition,
confiscation, commandeering, public decrees, riots, insurrections (a “Force Majeure Event”), provided
that the affected Party uses commercially reasonable efforts to remove such Force Majeure Event and commence performance hereunder
as soon as possible following the removal of such Force Majeure Event and that the affected Party gives the other Party prompt
notice of the existence of such Force Majeure Event.

 

16.2         Notices.
Unless otherwise specified herein, all notices required or permitted to be given under this Agreement shall be in writing and shall
be delivered personally, by facsimile transmission or sent by a nationally recognized overnight courier service, and shall be deemed
to have been given upon receipt. Any such notices shall be addressed to the receiving party at such party’s address set forth
below, or at such other address as may from time to time be furnished by similar notice by either party:

 

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If to Valeant:                         [***]

 

If to Eyegate:                       
[***]

 

16.3         Entire
Agreement; Modification. This Agreement, including without limitation all exhibits and attachments hereto, contains the entire
Agreement among the parties hereto with respect to the subject matter hereof and supersedes all previous agreements, negotiations,
commitments and writings among the parties hereto with respect of the subject matter hereof, and may not be changed or modified
in any manner unless in a written instrument duly approved by both Parties.

 

16.4         Severability.
If any provision of this Agreement or any other document delivered under this Agreement is prohibited or unenforceable in any jurisdiction,
it shall be ineffective in such jurisdiction only to the extent of such prohibition or unenforceability, and such prohibition or
unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or enforceable nor the remaining
provisions hereof, nor render unenforceable such provision in any other jurisdiction, unless the effect of rendering such provision
ineffective would be to substantially deviate from the expectations and intent of the respective parties in entering into this
Agreement. In the event any provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the parties hereto
shall use reasonable best efforts to substitute a valid, legal and enforceable provision which, insofar as practical, implements
the purposes hereof.

 

16.5         No
Waiver; Cumulative Remedies. No failure or delay on the part of either Party in exercising any right, power or remedy hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy hereunder. No waiver of any provision hereof shall
be effective unless the same shall be in writing and signed by the Party giving such waiver. The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

 

16.6         Headings.
All Article and Section headings are for reference purposes only and shall not in any way affect the meaning or interpretation
of this Agreement.

 

16.7         Governing
Law; Arbitration; Mediation.

 

(a)          This
Agreement shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect
to choice of law rules.

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

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(b)          If
any dispute, controversy or difference arises between the Parties in connection with or arising out of this Agreement, the Parties
shall first attempt to settle such matter amicably through mutual discussion, involving, to the extent necessary, senior executives
of both Parties. Should the Parties fail to reach an amicable settlement within sixty (60) days of a formal written request by
one Party to the other for such discussion, said dispute, controversy or difference shall be submitted to non-binding mediation
in accordance with Section 16.7(c).

 

(c)          With
respect to any proceeding, each of the parties irrevocably (i) agrees and consents to be subject to the exclusive jurisdiction
of any federal or state court in New York, United States of America (any such court, the “New York Court”) and
(ii) waives any objection which it may have at any time to the laying of venue of any proceeding brought in any such New York
Court and waives any claim that such proceeding has been brought in an inconvenient forum and further waives the right to object,
with respect to such proceeding, that such court does not have any jurisdiction over such Party. Notwithstanding the foregoing:
(i) each of the parties shall be entitled to seek injunctive relief and specific performance in any court of competent jurisdiction,
and (ii) if the court adjudicating such proceeding refuses for any reason to exercise jurisdiction over the dispute, the parties
shall be free to bring such proceeding in any other Court in the State of New York as provided above and, in the event such other
court(s) refuse for any reason to exercise jurisdiction over the dispute, of the parties shall be free to bring such proceeding
in any other court of competent jurisdiction.

 

(d)          Notwithstanding
the foregoing, neither Valeant nor Eyegate shall be required to pursue the escalation procedures set forth in this Section 16.7
if the result of following such escalation provisions set forth would result in the lapse of the statute of limitations applicable
to a claim hereunder.

 

16.8         Counterparts.
This Agreement and any amendment or supplement hereto may be executed in any number of counterparts, each of which shall be deemed
an original, and all of which taken together shall constitute one and the same instrument. This Agreement shall become binding
when any number of counterparts, individually or taken together, shall bear the signatures of both Parties. This Agreement may
be executed and delivered by facsimile or any other electronic means, including “.pdf” or “.tiff” files,
and any facsimile or other scanned copy of a signed copy of this Agreement shall constitute an original for all purposes.

 

16.9         Assignments.
No party shall be permitted to assign this Agreement or any of its rights or obligations under
this Agreement, directly or by operation of law or otherwise, without the other parties’ express, prior written consent,
except that (i) Eyegate may assign or sublicense this Agreement, in whole or in part, to an Affiliate or to its successor
in connection with any merger, consolidation or sale or other disposal of all or substantially all of its assets without Valeant’s
consent and (ii) Valeant may assign or sublicense this Agreement, in whole or in part, to an Affiliate or to its successor
in connection with any merger, consolidation or sale or other disposal of all or substantially all of its assets and/or business
to which this License Agreement relates without Eyegate’s consent; provided that no such assignment shall relieve
the assigning party of any of its obligations under this Agreement. Any such purported assignment in violation of this Agreement
shall be null and void ab initio. 

 

    	45

    	 

    

  

16.10         Costs
and Expenses. Except as otherwise specified herein, each Party shall bear its own expenses with respect to the transactions
contemplated by this Agreement.

 

16.11         Affiliates.
Valeant may perform certain of its obligations and activities hereunder through one or more of its Affiliates, provided that Valeant
shall remain responsible for such Affiliates and for ensuring that such Affiliates performance such obligations and activities
in accordance with the terms hereof.

 

(Signature Page to Follow)

 

    	46

    	 

    

 

IN WITNESS WHEREOF,
the Parties, by their duly authorized representatives, have entered into this Agreement effective as of the Effective Date.

 

	 	Valeant Pharmaceuticals Luxembourg S.A r.l.
	 	 	 
	 	By:	/s/ Michael Kennan
	 	 	Name: Michael Kennan
	 	 	Title:   Manager
	 	 	 
	 	By:	/s/ Giuseppe Di Modica
	 	 	Name: Giuseppe Di Modica
	 	 	Title:   Manager
	 	 	 
	 	EYEGATE PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ Stephen From
	 	 	Name: Stephen From
	 	 	Title:   President & CEO
	 	 	 
	 	EYEGATE PHARMA S.A.S.
	 	 	 
	 	By:	/s/ Stephen From
	 	 	Name: Stephen From
	 	 	Title:   President

 

[Signature Page to Eyegate License Agreement]

 

    	 

    	 

    

 

Appendix A: Wire Instructions

 

[***]

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

    	 

    	 

    

 

Appendix B: Schedule of Development-Based
Milestone Payments

 

	Development Milestone 	 	Percentage of Aggregate

Development Milestone Payment

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

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

    	 

    	 

    

  

Appendix C: Eyegate Press
Release

 

See attached. 

 

    	 

    	 

    

  

 

EyeGate Signs Licensing Agreement with Valeant
Pharmaceuticals for EGP-437 Combination Product in Uveitis

 

Company to Receive Upfront Cash Payment,
Milestones and Royalties on Sales of Product

 

Waltham, MA, July 10, 2015 –Eyegate
Pharmaceuticals, Inc. (OTCQB: EYEG) ("EyeGate" or the "Company"), a specialty pharmaceutical company that focuses
on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye, today announced that
it has entered into an exclusive, worldwide licensing agreement with a subsidiary of Valeant Pharmaceuticals International, Inc.
(NYSE/TSX: VRX) (“Valeant”) through which EyeGate has granted Valeant exclusive, worldwide commercial and manufacturing
rights to its EyeGate® II Delivery System and EGP-437 combination product ("Product") in the field of uveitis, as
well as a right of last negotiation to license the Product for other indications.

 

Under the agreement, EyeGate will receive an
upfront cash payment, development-based milestone payments related to the completion of development for the indication of anterior
uveitis and an approval-based milestone payment upon receipt of FDA approval of the Product. Additionally, the Company would receive
royalties based on net sales, as well as additional milestone payments based on the achievement of certain cumulative sales milestones.
Eyegate shall be responsible for the development of the Product in the U.S. for the indication of anterior uveitis, together with
the costs associated therewith. Valeant has the right to develop the Product in the field outside of the U.S. and has agreed to
fund 100% of any costs associated therewith.

 

“This
licensing agreement provides a significant validation for the EGP-437 combination product and has transformative potential for
EyeGate. Valeant is among the largest and most respected companies in the ophthalmology space, and we are thrilled to be working
with them to advance our lead product candidate,” said Stephen From, President and Chief Executive Officer of EyeGate. “We
believe that the iontophoretic delivery of EGP-437 via the EyeGate® II Delivery System represents a compelling new approach
to the treatment of uveitis that could improve patient outcomes through increased adherence.”

 

    	 

    	 

    

  

About EyeGate:

 

EyeGate is a clinical-stage specialty pharmaceutical
company that is focused on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye.
EGP-437, the Company's first and only product in clinical trials, incorporates a reformulated topically active corticosteroid,
dexamethasone phosphate that is delivered into the ocular tissues through EyeGate's proprietary innovative drug delivery system,
the EyeGate(R) II Delivery System. For more information, please visit www.EyeGatePharma.com.

 

Safe Harbor Statement:

 

Some of the statements in this press release
are "forward-looking" and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform
Act of 1995. These "forward-looking" statements include statements relating to, among other things, the commercialization
efforts and other regulatory or marketing approval efforts pertaining to EyeGate’s products, including EGP-437, as well as
the success thereof. Such approvals or success may not be obtained or achieved on a timely basis or at all.  These statements
involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release,
including, among other things, certain risk factors described under the heading “Risk Factors” in our Annual Report
on Form 10-K filed with the SEC on March 31, 2015, or described in our other public filings. Our results may also be affected by
factors of which we are not currently aware. The forward-looking statements in this press release speak only as of the date of
this press release. EyeGate expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such
statements to reflect any change in its expectations with regard thereto or any changes in the events, conditions or circumstances
on which any such statement is based.

 

CONTACT:

 

Lee Roth / Joseph Green

The Ruth Group for EyeGate Pharmaceuticals

646-536-7012 / 7013

lroth@theruthgroup.com / jgreen@theruthgroup.com

 

    	 

    	 

    

  

Schedule 1.1(tt)

Major Market Countries

 

[***]

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

    	 

    	 

    

  

Schedule 1.1(kkkk)

Western European Countries

 

United Kingdom

France

Germany

Spain

Italy 

Austria

Belgium

Cyprus

Denmark

Finland

Greece

Iceland

Ireland

Liechtenstein

Luxembourg

Malta

Monaco

Netherlands

Norway

Portugal

Sweden

Switzerland

 

    	 

    	 

    

  

Schedule 9.2(c)

Product Patents

 

[***]

 

*** CONFIDENTIAL TREATMENT
REQUESTED

 

    	 

    	 

    

  

Schedule 9.2(k)

Product Contracts

 

Dalton Chemical Laboratories, Inc. operating
as Dalton Pharma Services

		·	Master Services Agreement, August 25, 2014

 

University of Miami 

		·	December 16, 2005: Amended and Restated Licensing Agreement

 

BEHAR-COHEN

		·	July 23, 1999: Transaction Protocol

 

TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA

		·	March 6, 2012: Clinical Trial Agreement

 

    	 

    	 

    

  

Schedule 9.2(o)

Certain Government Grants and Other Funding

 

[***]

 

*** CONFIDENTIAL TREATMENT
REQUESTED

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