Document:

Exhibit 4.1

 

 

 

 

 

 

MAWSON INFRASTRUCTURE GROUP INC.

 

Issuer

 

AND

 

as Trustee

 

INDENTURE

 

Dated as of , 20

 

Debt Securities

 

 

 

 

 

 

     

    

    

 

CROSS-REFERENCE TABLE(1)

 

	
     

    SECTION OF

    TRUST INDENTURE

    ACT OF 1939, AS AMENDED
	 	
    SECTION(S) OF

    INDENTURE

	310(a)	 	7.9
	310(b)	 	7.8
	311(a)	 	7.13
	311(b)	 	7.13
	312(a)	 	5.1, 5.2(a)
	312(b)	 	5.2(b)
	312(c)	 	5.2(c)
	313(a)	 	5.4
	313(b)	 	5.4
	313(c)	 	5.4
	313(d)	 	5.4
	314(a)	 	5.3, 14.12
	314(c)	 	14.7(a)
	314(e)	 	14.7(b)
	315(a)	 	7.1
	315(b)	 	7.14
	315(c)	 	7.1
	315(d)	 	7.1
	315(e)	 	6.7
	316(a)	 	6.6, 8.4
	316(b)	 	6.4
	316(c)	 	8.1
	317(a)	 	6.2
	317(b)	 	4.2
	318(a)	 	14.9

 

		(1)	This
Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms
or provisions.

 

     

    

    

 

TABLE OF CONTENTS

	
     
	 	Page
	 	 	 
	ARTICLE I DEFINITIONS	1
	 	 	 
	Section 1.1	Definitions of Terms.	1
	Section 1.2	Incorporation by Reference of Trust Indenture Act.	4
	 	 	 
	ARTICLE II ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES	4
	 	 	
	Section 2.1	Designation and Terms of Securities.	4
	Section 2.2	Form of Securities and Trustee’s Certificate.	5
	Section 2.3	Denominations; Provisions for Payment.	6
	Section 2.4	Execution and Authentication.	6
	Section 2.5	Registration of Transfer and Exchange.	7
	Section 2.6	Temporary Securities.	8
	Section 2.7	Mutilated, Destroyed, Lost or Stolen Securities.	8
	Section 2.8	Cancellation.	8
	Section 2.9	Benefits of Indenture.	9
	Section 2.10	Authenticating Agent.	9
	Section 2.11	Global Securities.	9
	Section 2.12	Cusip and Isin Numbers.	10
	 	 	 
	ARTICLE III REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS	10
	 	 	 
	Section 3.1	Redemption.	10
	Section 3.2	Notice of Redemption.	10
	Section 3.3	Payment upon Redemption.	11
	Section 3.4	Sinking Fund.	11
	Section 3.5	Satisfaction of Sinking Fund Payments with Securities.	11
	Section 3.6	Redemption of Securities for Sinking Fund.	11
	 	 	 
	ARTICLE IV COVENANTS	12
	 	 	 
	Section 4.1	Payment of Principal, Premium and Interest.	12
	Section 4.2	Paying Agent and Security Registrar.	12
	Section 4.3	Appointment to Fill Vacancy in Office of Trustee.	13
	Section 4.4	Compliance with Consolidation Provisions.	13
	 	 	 
	ARTICLE V SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	13
	 	 	 
	Section 5.1	Company to Furnish Trustee Names and Addresses of Securityholders.	13
	Section 5.2	Preservation of Information; Communications with Securityholders.	13
	Section 5.3	Reports by the Company.	13
	Section 5.4	Reports by the Trustee.	14

 

	ARTICLE VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	14
	 	 	 
	Section 6.1	Events of Default.	14
	Section 6.2	Collection of Indebtedness and Suits for Enforcement by Trustee.	15
	Section 6.3	Application of Moneys Collected.	16
	Section 6.4	Limitation on Suits.	17
	Section 6.5	Rights and Remedies Cumulative; Delay or Omission not Waiver.	18
	Section 6.6	Control by Securityholders.	18
	Section 6.7	Undertaking to Pay Costs.	18

 

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	ARTICLE VII CONCERNING THE TRUSTEE	19
	 	 	 
	Section 7.1	Certain Duties and Responsibilities of Trustee.	19
	Section 7.2	Certain Rights of Trustee.	19
	Section 7.3	Trustee not Responsible for Recitals or Issuance or Securities.	21
	Section 7.4	May Hold Securities and Otherwise Deal with the Company.	21
	Section 7.5	Moneys Held in Trust.	21
	Section 7.6	Compensation and Reimbursement.	22
	Section 7.7	Reliance on Officer’s Certificate.	22
	Section 7.8	Disqualification; Conflicting Interests.	22
	Section 7.9	Corporate Trustee Required; Eligibility.	22
	Section 7.10	Resignation and Removal; Appointment of Successor.	23
	Section 7.11	Acceptance of Appointment by Successor.	24
	Section 7.12	Merger, Conversion, Consolidation or Succession to Business.	25
	Section 7.13	Preferential Collection of Claims Against the Company.	25
	Section 7.14	Notice of Default.	25
	Section 7.15	Limitation of Liability	25
	 	 	 
	ARTICLE VIII CONCERNING THE SECURITYHOLDERS	26
	 	 	
	Section 8.1	Evidence of Action by Securityholders.	26
	Section 8.2	Proof of Execution by Securityholders.	26
	Section 8.3	Who may be Deemed Owners.	26
	Section 8.4	Certain Securities Owned by Company Disregarded.	27
	Section 8.5	Actions Binding on Future Securityholders.	27
	 	 	
	ARTICLE IX SUPPLEMENTAL INDENTURES	27
	 	 	 
	Section 9.1	Supplemental Indentures without the Consent of Securityholders.	27
	Section 9.2	Supplemental Indentures with the Consent of Securityholders.	29
	Section 9.3	Effect of Supplemental Indentures.	29
	Section 9.4	Securities Affected by Supplemental Indentures.	30
	Section 9.5	Execution of Supplemental Indentures.	30
	 	 	 
	ARTICLE X SUCCESSOR ENTITY	30
	 	 	 
	Section 10.1	Company may Consolidate, etc.	30
	Section 10.2	Successor Entity Substituted.	31
	Section 10.3	Evidence of Consolidation, etc. To Trustee.	31

 

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	ARTICLE XI SATISFACTION AND DISCHARGE	31
	 	 	 
	Section 11.1	Satisfaction and Discharge of Indenture.	31
	Section 11.2	Application of Trust Money.	32
	 	 	 
	ARTICLE XII LEGAL DEFEASANCE AND COVENANT DEFEASANCE	33
	 	 	 
	Section 12.1	Option to Effect Legal Defeasance or Covenant Defeasance.	33
	Section 12.2	Legal Defeasance and Discharge.	33
	Section 12.3	Covenant Defeasance.	34
	Section 12.4	Conditions to Legal or Covenant Defeasance.	34
	Section 12.5	Deposited Money and Government Securities to be Held in Trust; other Miscellaneous Provisions.	35
	Section 12.6	Repayment to Company.	35
	Section 12.7	Reinstatement.	36
	 	 	 
	ARTICLE XIII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	36
	 	 	 
	Section 13.1	No Recourse.	36
	 	 	 
	ARTICLE XIV MISCELLANEOUS PROVISIONS	36
	 	 	 
	Section 14.1	Effect on Successors and Assigns.	36
	Section 14.2	Actions by Successor.	36
	Section 14.3	Surrender of Company Powers.	37
	Section 14.4	Notices.	37
	Section 14.5	Governing Law/Waiver of Jury Trial.	37
	Section 14.6	Treatment of Securities as Debt.	37
	Section 14.7	Compliance Certificates and Opinions.	37
	Section 14.8	Payments on Business Days.	38
	Section 14.9	Conflict with Trust Indenture Act.	38
	Section 14.10	Counterparts.	38
	Section 14.11	Severability.	38
	Section 14.12	Compliance Certificates.	38
	Section 14.13	Usa Patriot Act	39
	Section 14.14	Consent to Jurisdiction and Service	39
	Section 14.15	Force Majeure	39

 

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INDENTURE

 

INDENTURE, dated as of , 20
, among MAWSON INFRASTRUCTURE GROUP INC., a Delaware corporation (the “Company”), and ________________________________,
a national banking association organized under the laws of the United States, as trustee (the “Trustee”):

 

WHEREAS, for its lawful corporate
purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debt securities
(hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to
time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the Trustee;

 

WHEREAS, to provide the terms
and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution
of this Indenture; and

 

WHEREAS, all things necessary
to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.

 

NOW, THEREFORE, in consideration
of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal
and ratable benefit of the holders of Securities:

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.1 Definitions of Terms.

 

The terms defined in this Section (except as in this Indenture or any
Board Resolution or indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires) for all purposes
of this Indenture and of any Board Resolution or indenture supplemental hereto shall have the respective meanings specified in this Section
and shall include the plural as well as the singular. All other terms used in this Indenture that are defined in the Trust Indenture Act
of 1939, as amended, or that are by reference in such Act defined in the Securities Act (except as herein or any Board Resolution or indenture
supplemental hereto otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms
in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.

 

“Authenticating Agent” means
an authenticating agent with respect to all or any of the series of Securities appointed by the Trustee pursuant to Section 2.10.

 

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such
specified person. For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership
of voting securities, by agreement or otherwise. For purposes of this definition, the terms “controlling,” “controlled
by” and “under common control with” have correlative meanings.

 

“Authorized Officer,” when
used with respect to the Company, means the Chairman of the Board of Directors, the Co-Chief Executive Officers, the President, the Chief
Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Executive
Vice President or Senior Vice President of the Company.

 

“Bankruptcy Law” means Title
11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means
the Board of Directors of the Company or any duly authorized committee of such Board.

 

“Board Resolution” means a
copy of one or more resolutions certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors, or such committee of the Board of Directors or officers of the Company to which authority to act on behalf of the Board
of Directors has been delegated, and to be in full force and effect on the date of such certification, and to be delivered to the Trustee.

 

“Business Day” means, with
respect to any series of Securities, any day other than a day on which federal or state banking institutions in the Borough of Manhattan,
the City and State of New York, are authorized or obligated by law, executive order or regulation to close.

 

“Code” means the Internal Revenue
Code of 1986, as amended.

 

“Commission” means the Securities
and Exchange Commission.

 

“Company” means Mawson
Infrastructure Group Inc., a corporation duly organized and existing under the laws of the State of Delaware, and, subject to the
provisions of Article X, shall also include its successors and assigns.

 

    1

    

    

 

“Company Request” and “Company
Order” means a written request or order signed in the name of the Company by one or more Authorized Officers of the Company,
and delivered to the Trustee.

 

“Corporate Trust Office” means
the principal office of the Trustee at which, at any particular time, this Indenture shall be administered, which office at the date hereof
is located at ; Attention: . With respect to presentation for transfer or exchange, conversions or principal payment, such address shall
be ; Attention: , or such other address as the Trustee may designate from time to time by written notice to the Securityholders and the
Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate
from time to time by written notice to the Securityholders and the Company).

 

“Covenant Defeasance” shall
have the meaning set forth in Section 12.3.

 

“Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Default” means any event,
act or condition that with notice or lapse of time, or both, would constitute an Event of Default.

 

“Depositary” means, with respect
to Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository
Trust Company, New York, New York, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or
other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.1 or 2.11.

 

“Event of Default” means, with
respect to Securities of a particular series, any event specified in Section 6.1, continued for the period of time, if any, therein designated.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“Global Security” means, with
respect to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to
the Depositary’s instruction, all in accordance with this Indenture, which shall be registered in the name of the Depositary or
its nominee.

 

“Governmental Obligations”
means securities that are (a) direct obligations of the U.S. for the payment of which its full faith and credit is pledged or (b) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the U.S., the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the U.S. that, in either case, are not callable or redeemable at the option of the
issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental
Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however, that (except as required
by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any
amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the
Governmental Obligation evidenced by such depositary receipt.

 

“herein,” “hereof”
and “hereunder,” and other words of similar import, refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision.

 

“Indenture” means this instrument
as originally executed or as it may from time to time be supplemented or amended by one or more Board Resolutions or one or more indentures
supplemental hereto entered into in accordance with the terms hereof.

 

“Interest Payment Date,” when
used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in
a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

 

“Legal Defeasance” shall have
the meaning set forth in Section 12.2.

 

“Officer’s Certificate”
means a certificate signed by an Authorized Officer of the Company that is delivered to the Trustee in accordance with the terms hereof.
Each such certificate shall include the statements provided for in Section 14.7, if and to the extent required by the provisions thereof.
An Officer’s Certificate given pursuant to Section 14.12 shall be signed by the principal executive, financial or accounting officer
of the Company but need not contain the statements provided for in Section 14.7.

 

“Opinion of Counsel” means
an opinion in writing subject to customary exceptions of legal counsel, who may be an employee of or counsel for the Company, that is
delivered to the Trustee in accordance with the terms hereof. Each such opinion shall include the statements provided for in Section 14.7,
if and to the extent required by the provisions thereof.

 

    2

    

    

 

“Outstanding,” when used with
reference to Securities of any series, means, subject to the provisions of Section 8.4, as of any particular time, all Securities of that
series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the
Trustee, or delivered to the Trustee or any Paying Agent for cancellation or that have previously been canceled; (b) Securities or portions
thereof for the payment or redemption of which cash or Governmental Obligations in the necessary amount shall have been irrevocably deposited
in trust with the Trustee or with any Paying Agent (other than the Company) or shall have been set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent); provided, however, that if such Securities or portions of such Securities
are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in Article III provided, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of Section 2.7, unless the Trustee and the Company receive
proof satisfactory to them that the replaced Security is held by a protected purchaser.

 

“Paying Agent” shall have the
meaning set forth in Section 4.2(a).

 

“Person” means any individual,
corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company
or government or other entity, and includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3)
of the Exchange Act.

 

“Predecessor Security” of any
particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security;
and, for the purposes of this definition, any Security authenticated and delivered under Section 2.7 in lieu of a lost, destroyed or stolen
Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.

 

“Redemption Date,” when used
with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.

 

“Securities” shall have the
meaning set forth in the recitals to this Indenture.

 

“Securities Act” means the
Securities Act of 1933, as amended.

 

“Securityholder,” “holder
of Securities,” “registered holder,” or other similar term, means the Person or Persons in whose name or
names a particular Security shall be registered on the Security Register in accordance with the terms of this Indenture.

 

“Security Register” shall have
the meaning set forth in Section 4.2(a).

 

“Security Registrar” shall
have the meaning set forth in Section 4.2(a).

 

“Stated Maturity,” when used
with respect to any security or any installment of principal thereof or interest thereon, means the date specified in such Security or
a coupon representing such installment of interest as the fixed date on which the principal of such Security or such installment of principal
or interest is due and payable.

 

“Subsidiary” means, with respect
to any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly,
by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership,
joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned
by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership
of which such Person or any of its Subsidiaries is a general partner.

 

“Trustee” means , and, subject
to the provisions of Article VII, shall also include its successors and assigns, and, if at any time there is more than one Person acting
in such capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with respect to
a particular series of the Securities shall mean the trustee with respect to that series.

 

“Trust Indenture Act” means
the Trust Indenture Act of 1939, as amended.

 

“Trust Officer” means any officer
of the Trustee with direct responsibility for the administration of this Indenture and also means, with respect to a particular corporate
trust matter hereunder, any other officer of the Trustee to whom such matter is referred because of his or her knowledge of and familiarity
with the particular subject.

 

“Uniform Commercial Code” means
the New York Uniform Commercial Code as in effect from time to time.

 

“U.S.” means the United States
of America.

 

“USA Patriot Act” shall have
the meaning set forth in Section 14.13.

 

“Voting Stock,” as applied
to stock of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such
Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

 

    3

    

    

 

SECTION
1.2 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

 

Whenever this Indenture refers to a provision
of the Trust Indenture Act, the provision is incorporated by reference in and made a part of this Indenture.

 

All Trust Indenture Act terms used in this Indenture
that are defined by the Trust Indenture Act, defined by Trust Indenture Act reference to another statute or defined by Commission rule
have the meanings assigned to them by such definitions.

 

ARTICLE
II

 

ISSUE,
DESCRIPTION, TERMS, EXECUTION, REGISTRATION

 

AND
EXCHANGE OF SECURITIES

 

Section
2.1 Designation and Terms of Securities.

 

The aggregate principal amount of Securities that
may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more series up to the aggregate
principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution or pursuant to one or
more indentures supplemental hereto. Prior to the initial issuance of Securities of any series, there shall be established in or pursuant
to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental hereto:

 

(1) the title of the Securities
of the series (which shall distinguish the Securities of that series from all other Securities);

 

(2) the principal amount of
the Securities being offered and any limit upon the aggregate principal amount of the Securities of that series that may be authenticated
and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of that series);

 

(3) the date or dates on which
the principal of the Securities of the series is payable, any original issue discount that may apply to the Securities of that series
upon their issuance, the principal amount due at maturity, and the place(s) of payment;

 

(4) the rate or rates at which
the Securities of the series shall bear interest or the manner of calculation of such rate or rates, if any, and whether the rate(s) are
fixed or variable;

 

(5) the date or dates from
which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the manner of determination of
such Interest Payment Dates, the place(s) of payment, and the record date for the determination of holders to whom interest is payable
on any such Interest Payment Dates or the manner of determination of such record dates;

 

(6) the right, if any, to
extend the interest payment periods and the duration of such extension;

 

(7) the period or periods
within which, the price or prices at which and the terms and conditions upon which Securities of the series may be redeemed, in whole
or in part, at the option of the Company;

 

(8) the obligation, if any,
of the Company to redeem or purchase Securities of the series pursuant to any sinking fund, mandatory redemption, or analogous provisions
(including payments made in cash in satisfaction of future sinking fund obligations) or at the option of a holder thereof and the period
or periods within which, the price or prices at which, and the terms and conditions upon which, Securities of the series shall be redeemed
or purchased, in whole or in part, pursuant to such obligation;

 

(9) the terms of the subordination
of any series of subordinated debt;

 

(10) the form of the Securities
of the series including the form of the certificate of authentication for such series;

 

(11) if other than minimum
denominations of two thousand U.S. dollars ($2,000) or any integral multiple of one thousand U.S. dollars ($1,000) in excess thereof,
the minimum denominations and multiples in excess thereof in which the Securities of the series shall be issuable;

 

(12) whether the Securities
are issuable as a Global Security and, in such case, the terms and the identity of the Depositary for such series;

 

(13) whether the Securities
will be convertible into or exchangeable for shares of common stock or other securities of the Company or any other Person or other securities
and, if so, the terms and conditions upon which such Securities will be so convertible or exchangeable, including the conversion or exchange
price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional (at the Company’s option or the
holders’ option) conversion or exchange features, and the applicable conversion or exchange period;

 

(14) if other than the principal
amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration
of the maturity thereof pursuant to Section 6.1;

 

    4

    

    

 

(15) any additional or different
Events of Default or restrictive covenants (which may but shall not be required to include, among other restrictions, restrictions on
the Company’s ability or the ability of the Company’s Subsidiaries to: incur additional indebtedness; issue additional securities;
create liens; pay dividends or make distributions in respect of their capital stock; redeem capital stock; in the case of such Subsidiaries,
pay dividends, make distributions or transfer assets; make investments or other restricted payments; sell or otherwise dispose of assets;
enter into sale leaseback transactions; engage in transactions with stockholders and affiliates; issue or sell stock of the Company’s
Subsidiaries; or effect a consolidation or merger) or financial covenants (which may include, among other financial covenants, financial
covenants that require the Company and its Subsidiaries to maintain specified interest coverage, fixed charge, cash flow-based, asset-based
or other financial ratios) provided for with respect to the Securities of the series;

 

(16) if other than U.S. dollars,
the coin or currency in which the Securities of the series are denominated (including, but not limited to, foreign currency);

 

(17) the terms and conditions,
if any, upon which the Company shall pay amounts in addition to the stated interest, premium, if any, and principal amounts of the Securities
of the series to any Securityholder that is not a “United States person” for federal tax purposes, and the terms and conditions,
if any, relating to the Company’s ability to redeem such Securities if the Company is required to pay such additional amounts;

 

(18) a discussion of any material
U.S. federal income tax considerations applicable to the Securities of the series;

 

(19) any restrictions on transfer,
sale or assignment of the Securities of the series;

 

(20) the terms, if any, relating
to any auction or remarketing of the Securities of the series and any security for the obligations of the Company with respect to such
Securities;

 

(21) whether the Securities
of the series are secured or unsecured, and if the Securities are secured, the terms of the secured Securities;

 

(22) information describing
any book-entry features;

 

(23) the identity of any guarantors
and the terms of the guarantees; and

 

(24) any and all other terms
with respect to the series (which terms shall not be inconsistent with the terms of this Indenture, as amended by any Board Resolution
or supplemental indenture, but which may modify or delete any provisions of this Indenture insofar as it applies to such series), including
any terms which may be required by or advisable under the laws of the U.S. or regulations thereunder or advisable (as determined by the
Company) in connection with the marketing of Securities of that series.

 

All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures
supplemental hereto.

 

If any of the terms of the series are established
by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the
secretary or an assistant secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate
of the Company setting forth the terms of the series.

 

Securities of any particular series may be issued
at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest,
if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable
and with different redemption dates. A series may be reopened for issuances of additional Securities of such series or to establish additional
terms of such Securities.

 

Section 2.2 Form of Securities and Trustee’s Certificate.

 

The Securities of any series and the Trustee’s
certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more
indentures supplemental hereto or as provided in a Board Resolution, and set forth in an Officer’s Certificate, and they may have
such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved
thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on
which Securities of that series may be listed, or to conform to usage.

 

    5

    

    

 

Section
2.3 Denominations; Provisions for Payment.

 

The Securities shall be issuable as registered
Securities and in the minimum denomination of two thousand U.S. dollars ($2,000) or any integral multiple of one thousand U.S. dollars
($1,000) in excess thereof, subject to Section 2.1(11). The Securities of a particular series shall bear interest payable on the dates
and at the rate specified with respect to that series. The principal of and the interest on the Securities of any series, as well as any
premium thereon, shall be payable in the coin or currency of the U.S. that at the time is legal tender for public and private debt, at
the office or agency of the Company maintained for that purpose in the United States, which shall initially be an office or agency of
the Trustee. Each Security shall be dated the date of its authentication. Interest on the Securities shall be computed on the basis of
a 360-day year composed of twelve 30-day months. Presentment and surrender of the Securities is required for final payment thereon.

 

The interest installment on any Security that
is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record
date for such interest installment. In the event that any Security of a particular series or portion thereof is called for redemption
and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment
Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.3.

 

Any interest on any Security that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having
been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

 

(1) The Company may make payment
of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are
registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following
manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security
and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted
Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record
date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the
special record date therefor to be mailed, first class postage prepaid (or, in the case of Securities held in book-entry form, by electronic
transmission), to each Securityholder at his or her address as it appears in the Security Register (as hereinafter defined), not less
than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their
respective Predecessor Securities) are registered on such special record date.

 

(2) The Company may make payment
of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with the requirements of any securities exchange
on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company
to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Unless otherwise set forth in a Board Resolution
or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.1 hereof, the term
“regular record date” as used in this Section with respect to a series of Securities and any Interest Payment Date
for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date established
for such series pursuant to Section 2.1 hereof shall occur, if such Interest Payment Date is the first day of a month, or the last day
of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.1 hereof
shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.

 

Subject to the foregoing provisions of this Section
and Sections 2.5 and 2.11, each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of
any other Security of such series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other
Security.

 

SECTION
2.4 EXECUTION AND AUTHENTICATION.

 

The Securities shall be signed on behalf of the
Company by an Authorized Officer and, to the extent necessary, under its corporate seal. Signatures may be in the form of a manual or
facsimile signature.

 

The Company may use the facsimile signature of
any Person who shall have been an Authorized Officer thereof, notwithstanding the fact that at the time the Securities shall be authenticated
and delivered or disposed of such Person shall have ceased to be such an officer of the Company. To the extent a Company seal is necessary,
the Company seal may be in the form of a facsimile of such seal and may be impressed, affixed, imprinted or otherwise reproduced on the
Securities. The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each Security
shall be dated the date of its authentication by the Trustee.

 

    6

    

    

 

A Security shall not be valid until authenticated
manually by an authorized signatory of the Trustee. Such signature shall be conclusive evidence that the Security so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. At any time and from
time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company
to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, signed by an
Authorized Officer, and the Trustee in accordance with such Company Order shall authenticate and deliver such Securities.

 

In authenticating such Securities and accepting
the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall receive, and (subject to Section
7.1) shall be fully protected in conclusively relying upon, an Opinion of Counsel stating that the form and terms thereof have been established
in conformity with the provisions of this Indenture.

 

The Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.

 

SECTION
2.5 REGISTRATION OF TRANSFER AND EXCHANGE.

 

(a) Securities of any series
may be exchanged upon presentation thereof at the office of the Security Registrar, for other Securities of such series of authorized
denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge
in relation thereto, all as provided in this Section. In respect of any Securities so surrendered for exchange, the Company shall execute,
the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the same series
that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

 

(b) Upon surrender for transfer
of any Security at the office of the Security Registrar, the Company shall execute, the Trustee shall authenticate and the Security Registrar
shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented for
a like aggregate principal amount.

 

All Securities presented or surrendered for exchange
or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar)
by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such holder’s duly authorized attorney in writing.

 

(c) Except as provided pursuant
to Section 2.1 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures
supplemental to this Indenture, no service charge shall be made for any exchange or registration of transfer of Securities, or issue of
new Securities in case of partial repurchase or redemption of any series, but the Company and the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.6, Section 3.3(b)
and Section 9.4 not involving any transfer.

 

(d) The Company shall not
be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the opening of business 15
days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities of the same series and ending
at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange any Securities of any series or
portion thereof called for redemption, other than the unredeemed portion of any such Securities being redeemed in part.

 

(e) Successive registrations
and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be
noted on the register for the Securities.

 

(f) The Security Registrar
shall provide to the Trustee such information as the Trustee may reasonably require in connection with the delivery by such Security Registrar
of Securities upon transfer or exchange of Securities.

 

(g) The provisions of this
Section 2.5 are, with respect to any Global Security, subject to Section 2.11 hereof.

 

(h) The Trustee shall have
no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture
or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Depositary
participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine
the same to determine substantial compliance as to form with the express requirements hereof.

 

(i) Neither the Trustee nor
any agent shall have any responsibility or liability for any actions taken or not taken by the Depositary.

 

    7

    

    

 

SECTION
2.6 TEMPORARY SECURITIES.

 

Pending the preparation of definitive Securities
of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or
typewritten) of any authorized denomination. Such temporary Securities shall be substantially in the form of the definitive Securities
in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all
as may be determined by the Company. Every temporary Security of any series shall be executed by the Company and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities of such series.
Without unnecessary delay the Company will execute and will furnish definitive Securities of such series and thereupon any or all temporary
Securities of such series may be surrendered in exchange therefor (without charge to the holders), at the office of the Security Registrar,
and the Trustee shall authenticate and the Security Registrar shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities
need not be executed and furnished until further notice from the Company. Until so exchanged, the temporary Securities of such series
shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

 

SECTION 2.7 MUTILATED, DESTROYED, LOST OR STOLEN SECURITIES.

 

In case any temporary or definitive Security shall
become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon a Company
Request, the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed,
lost or stolen. In every case, the requirements of Section 8-405 of the Uniform Commercial Code shall be met and the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction
of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may authenticate any such
substituted Security and deliver the same upon the delivery of a Company Order. Upon the issuance of any substituted Security, the Company
may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

In case any Security that has matured or is about
to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize
the payment of the same (without surrender thereof except in the case of a mutilated Security) if the applicant for such payment shall
furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction,
loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the
ownership thereof.

 

Every replacement Security issued pursuant to
the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed,
lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities shall be held and
owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments
or other securities without their surrender.

 

SECTION 2.8 CANCELLATION.

 

All Securities surrendered for the purpose of
payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any Paying Agent, be delivered to the
Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof
except as expressly required or permitted by any of the provisions of this Indenture. On the delivery of a Company Order at the time of
such surrender, the Trustee shall cancel Securities held by the Trustee in accordance with its standard procedures and applicable law
and provide confirmation to the Company of such cancellation if requested by the Company. In the absence of such request, the Trustee
may dispose of canceled Securities in accordance with its standard procedures and deliver evidence of cancellation to the Company. If
the Company shall otherwise acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.

 

    8

    

    

 

SECTION
2.9 BENEFITS OF INDENTURE.

 

Nothing in this Indenture or in the Securities,
express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities
any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein
contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Securities.

 

SECTION
2.10 AUTHENTICATING AGENT.

 

So long as any of the Securities of any series
remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the right
to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued
upon exchange, transfer or partial redemption thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All references in this Indenture to the
authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating Agent for such series. Each
Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently
reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business
to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or
examination by federal or state authorities. If at any time any Authenticating Agent shall cease to be eligible in accordance with these
provisions, it shall resign immediately.

 

Any Authenticating Agent may at any time resign
by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon a Company Request shall)
terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company.
Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating
Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested
with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.

 

SECTION 2.11 GLOBAL SECURITIES.

 

(a) If the Company shall establish
pursuant to Section 2.1 that the Securities of a particular series are to be issued as a Global Security, then the Company shall execute
and the Trustee shall, in accordance with Section 2.4, authenticate and deliver, a Global Security that (i) shall represent, and shall
be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series, (ii) shall be
registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction and (iv) shall bear a legend substantially to the following effect: “Except as otherwise provided
in Section 2.11 of this Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depositary
or to a successor Depositary or to a nominee of such successor Depositary.”

 

(b) Notwithstanding the provisions
of Section 2.5, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.5,
only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by the Company
or to a nominee of such successor Depositary. Nothing in this Section 2.11(b) shall prohibit or render ineffective any transfer of a beneficial
interest in a Global Security effected in accordance with the other provisions of this Indenture.

 

(c) If at any time the Depositary
for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at
any time the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such condition, as the case may be, or if an Event of Default has occurred and is continuing and the Company
has received a request from the Depositary, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company
will execute, and subject to Section 2.4, the Trustee will authenticate and deliver the Securities of such series in definitive registered
form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security
of such series in exchange for such Global Security. In addition, the Company may at any time determine that the Securities of any series
shall no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities
of such series. In such event the Company will execute and, subject to Section 2.4, the Trustee, upon receipt of an Officer’s Certificate
evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive registered form
without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security
of such series in exchange for such Global Security. Upon the exchange of the Global Security for such Securities in definitive registered
form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee. Such Securities in definitive
registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such
authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct
the Trustee. The Trustee shall deliver such Securities to the Persons in whose names such Securities are so registered.

 

    9

    

    

 

SECTION 2.12 CUSIP AND ISIN NUMBERS.

 

The Company, in issuing the Securities, shall
use CUSIP and ISIN numbers for such Securities (if then generally in use). The Trustee shall use CUSIP and ISIN numbers in notices of
redemption as a convenience to holders; provided, however, that neither the Company nor the Trustee shall have any responsibility for
any defect in the CUSIP or ISIN number that appears on any Security, check, advice of payment or redemption notice, and any such notice
may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in
any notice of redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee in writing
in the event of any change in the CUSIP or ISIN numbers.

 

ARTICLE
III

 

REDEMPTION
OF SECURITIES AND SINKING FUND PROVISIONS

 

SECTION
3.1 REDEMPTION.

 

The Company may redeem the Securities of any series
issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.1 hereof. The
provisions of this Article III may be modified, amended or replaced, in part or in their entirety, with Securities of any series, by an
Officer’s Certificate pursuant to a Board Resolution or one or more indentures supplemental hereto, in each case in accordance with
Section 2.1 hereof.

 

SECTION
3.2 NOTICE OF REDEMPTION.

 

(a) In case the Company shall
desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series in accordance with any right
the Company reserved for itself to do so pursuant to Section 2.1 hereof, the Company shall, or shall cause the Trustee to, give notice
of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid (or, in the case
of Securities held in book-entry form, by electronic transmission), a notice of such redemption not less than 30 days and not more than
60 days (except in accordance with Articles XI and XII) before the date fixed for redemption of that series to such holders at their last
addresses as they shall appear upon the Security Register, unless a shorter period is specified in the Securities to be redeemed. Any
notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered
holder receives the notice. In any case, failure duly to give such notice to the holder of any Security of any series designated for redemption
in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities
of such series or any other series. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s
Certificate evidencing compliance with any such restriction.

 

Each such notice of redemption shall specify the
date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment
of the redemption price of such Securities to be redeemed will be made at the office or agency of the Paying Agent or as otherwise established
in a Board Resolution or an indenture supplemental hereto, upon presentation and surrender of such Securities, that interest accrued to
the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue and
that the redemption is from a sinking fund, if such is the case. If less than all the Securities of a series are to be redeemed, the notice
to the holders of Securities of that series to be redeemed in part shall specify the particular Securities to be so redeemed.

 

In case any Security is to be redeemed in part
only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state
that on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount
equal to the unredeemed portion thereof will be issued.

 

(b) If less than all the Securities
of a series are to be redeemed, the Company shall give the Trustee at least 45 days’ notice (unless a shorter notice shall be satisfactory
to the Trustee) in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed,
and thereupon the Trustee shall select, (i) if the Securities are in the form of Global Securities, in accordance with the procedures
of the Depositary, or (ii) if the Securities are not in the form of Global Securities, by lot, a portion or portions (equal to one thousand
U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $2,000,
the Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed,
in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an Authorized
Officer, instruct the Trustee or any Paying Agent to call all or any part of the Securities of a particular series for redemption and
to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as
the Trustee or such Paying Agent may deem advisable. In any case in which notice of redemption is to be given by the Trustee or any such
Paying Agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such Paying Agent, as the
case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the
Trustee or such Paying Agent to give any notice by mail that may be required under the provisions of this Section.

 

    10

    

    

 

SECTION
3.3 PAYMENT UPON REDEMPTION.

 

(a) If the giving of notice
of redemption shall have been completed as above provided, the Securities or portions of Securities of the series to be redeemed specified
in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption and interest on such Securities or portions of Securities shall cease to accrue
on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest
with respect to any such Security or portion thereof. On presentation and surrender of such Securities on or after the date fixed for
redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed at the applicable redemption price
for such series, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an interest
payment date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the
applicable record date pursuant to Section 2.3).

 

(b) Upon presentation of any
Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office
or agency where the Security is presented shall deliver to the holder thereof, at the expense of the Company, a new Security of the same
series of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented.

 

SECTION
3.4 SINKING FUND.

 

If Securities of a series provide for a sinking
fund as contemplated by Section 2.1, the provisions of this Section 3.4 and Sections 3.5 and 3.6 shall be applicable to any sinking fund
for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.1 for Securities of such series.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,”
and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional
sinking fund payment.” If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment
may be subject to reduction as provided in Section 3.5. Each sinking fund payment shall be applied to the redemption of Securities of
any series as provided for by the terms of Securities of such series.

 

SECTION
3.5 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

 

The Company (i) may deliver Outstanding Securities
of a series and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant
to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities,
in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the redemption price specified
in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

 

SECTION
3.6 REDEMPTION OF SECURITIES FOR SINKING FUND.

 

Not less than 45 days prior to each sinking fund
payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to
the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to
the terms of the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant
to Section 3.5 and the basis for such credit and will, together with such Officer’s Certificate, deliver to the Trustee any Securities
to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the
name of and at the expense of the Company in the manner provided in Section 3.2. Such notice having been duly given, the redemption of
such Securities shall be made upon the terms and in the manner stated in Section 3.3.

 

    11

    

    

 

ARTICLE
IV

 

COVENANTS

 

SECTION
4.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

 

The Company will duly and punctually pay or cause
to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner
provided herein and established with respect to such Securities. Payments of principal on the Securities may be made at the time provided
herein and established with respect to such Securities by U.S. dollar check drawn on and mailed to the address of the Securityholder entitled
thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account (such a wire transfer
to be made only to a Securityholder of an aggregate principal amount of Securities of the applicable series in excess of U.S. $2,000,000
and only if such Securityholder shall have furnished wire instructions to the Trustee no later than 15 days prior to the relevant payment
date). Payments of interest on the Securities may be made at the time provided herein and established with respect to such Securities
by U.S. dollar check mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register,
or U.S. dollar wire transfer to, a U.S. dollar account (such a wire transfer to be made only to a Securityholder of an aggregate principal
amount of Securities of the applicable series in excess of U.S. $2,000,000 and only if such Securityholder shall have furnished wire instructions
in writing to the Security Registrar and the Trustee no later than 15 days prior to the relevant payment date).

 

SECTION
4.2 PAYING AGENT AND SECURITY REGISTRAR.

 

(a) So long as any series
of the Securities remain Outstanding, the Company shall maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (“Security Registrar”), an office or agency where Securities may be presented for payment
(“Paying Agent”) and an office or agency where notices to or upon the Company in respect of the Securities and this
Indenture may be served. The Security Registrar shall keep a register for the recordation of, and shall record, the names and addresses
of holders of the Securities, the Securities held by each holder and the transfer and exchange of Securities (the “Security Register”).
The entries in the Security Register shall be conclusive, and the parties may treat each Person whose name is recorded in the Security
Register pursuant to the terms hereof as a holder hereunder for all purposes of this Indenture. The Company may have one or more co-Security
Registrars and one or more additional Paying Agents.

 

The Company hereby initially designates the Trustee
as Paying Agent and Security Registrar, and the Corporate Trust Office shall be considered as one such office or agency of the Company
for each of the aforesaid purposes, such designation to continue with respect to such office or agency until the Company shall, by written
notice signed by an Authorized Officer and delivered to the Trustee, designate some other office or agency for such purposes or any of
them.

 

(b) The Company shall enter
into an appropriate agency agreement with any Security Registrar, Paying Agent, or co-registrar not a party to this Indenture, which shall
incorporate the terms of the Trust Indenture Act. The agreement shall implement the provisions of this Indenture that relate to such agent.
The Company shall notify the Trustee in writing of the name and address of any such agent. If the Company fails to maintain a Security
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor. The Company and any
of its Subsidiaries may act as Paying Agent, Security Registrar or co-registrar.

 

(c) If the Company shall appoint
one or more Paying Agents for all or any series of the Securities, other than the Trustee, the Company will cause each such Paying Agent
to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this
Section:

 

(1) that it will
hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Securities of that
series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of
the Persons entitled thereto;

 

(2) that it will
give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment of the principal
of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;

 

(3) that it will,
at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent; and

 

(4) that it will
perform all other duties of Paying Agent as set forth in this Indenture.

 

(d) If the Company shall act
as its own Paying Agent with respect to any series of the Securities, it will on or before each due date of the principal of (and premium,
if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto
a sum sufficient to pay such principal (and premium, if any) or interest so becoming due on Securities of that series until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any
failure (by it or any other obligor on such Securities) to take such action. Whenever the Company shall have one or more Paying Agents
for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities
of that series, deposit with the Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due,
such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

 

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(e) Notwithstanding anything
in this Section to the contrary, the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture
or for any other purpose, pay, or direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying
Agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by the Company or any Paying Agent to the Trustee, the Company or such Paying Agent shall be
released from all further liability with respect to such money.

 

SECTION
4.3 APPOINTMENT TO FILL VACANCY IN OFFICE OF TRUSTEE.

 

The Company, whenever necessary to avoid or fill
a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times
be a Trustee hereunder.

 

SECTION
4.4 COMPLIANCE WITH CONSOLIDATION PROVISIONS.

 

The Company will not, while any of the Securities
remain Outstanding, consolidate with or merge into any other Person, in either case where the Company is not the survivor of such transaction,
or sell or convey all or substantially all of its property to any other Person unless the provisions of Article X hereof are complied
with.

 

ARTICLE
V

 

SECURITYHOLDERS’
LISTS AND REPORTS BY

 

THE
COMPANY AND THE TRUSTEE

 

SECTION
5.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF SECURITYHOLDERS.

 

The Company will furnish or cause to be furnished
to the Trustee (a) on each regular record date (as defined in Section 2.3) a list, in such form as the Trustee may reasonably require,
of the names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall
not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent
list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such
list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall
be the Security Registrar.

 

SECTION
5.2 PRESERVATION OF INFORMATION; COMMUNICATIONS WITH SECURITYHOLDERS.

 

(a) The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of the Securityholders
of each series of Securities and shall otherwise comply with Section 312(a) of the Trust Indenture Act. If the Trustee is not the Security
Registrar, the Company shall furnish to the Trustee at least ten (10) days before each interest payment date with respect to any series
of Securities and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may
reasonably require, of the names and addresses of the Securityholders of such series of Securities, which list may be conclusively relied
upon by the Trustee.

 

(b) Securityholders of any
series may communicate pursuant to Section 312(b) of the Trust Indenture Act with other Securityholders of that series or any other series
with respect to their rights under this Indenture or the Securities of that series or any other series.

 

(c) The Company, the Trustee,
the Security Registrar and any other Person shall have the protection of Section 312(c) of the Trust Indenture Act.

 

SECTION
5.3 REPORTS BY THE COMPANY.

 

(a) So long as any Security
is Outstanding, the Company shall furnish a copy to the Trustee, within 15 days after the Company files the same with the Commission,
copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as
the Commission may from time to time by rules and regulations prescribe) that the Company files with the Commission pursuant to Section
13 or Section 15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the Trustee any materials
for which the Company has sought and received confidential treatment by the Commission; and provided further, so long as such filings
by the Company are available on the Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), such filings
shall be deemed to have been furnished to the Trustee for purposes of this Section 5.3 without any further action required by the Company.
The Trustee shall have no obligation whatsoever to determine whether or not such filings have been made.

 

(b) Delivery of such reports,
information and documents to the Trustee shall be for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained therein, including the Company’s
compliance with any of the covenants contained in this Indenture (as to which the Trustee is entitled to conclusively rely upon an Officer’s
Certificate).

  

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SECTION
5.4 REPORTS BY THE TRUSTEE.

 

(a) The Trustee shall transmit
to the Securityholders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the time and in the manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee
shall, within 60 days after each May 15 following the date of this Indenture, deliver to holders a brief report, dated as of such May
15, which complies with the provisions of such Section 313(a).

 

(b) The Trustee shall comply
with Section 313(b) and 313(c) of the Trust Indenture Act.

 

(c) A copy of each such report
shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company, with each securities exchange upon
which any Securities are listed (if so listed) and also with the Commission. The Company agrees to notify the Trustee when any Securities
become listed on any securities exchange.

 

ARTICLE
VI

 

REMEDIES
OF THE TRUSTEE AND SECURITYHOLDERS

 

ON EVENT
OF DEFAULT

 

SECTION
6.1 EVENTS OF DEFAULT.

 

(a) Whenever used herein with
respect to Securities of a particular series, unless otherwise specified in a Board Resolution or in an indenture supplemental hereto,
“Event of Default” means any one or more of the following events that has occurred and is continuing:

 

(1) the Company
defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same shall become due
and payable, and such default continues for a period of 30 days; provided, however, that a valid extension of an interest payment period
by the Company in accordance with the terms of any Board Resolution or indenture supplemental hereto shall not constitute a default in
the payment of interest for this purpose;

 

(2) the Company
defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when the same shall become
due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid extension of the maturity of such Securities in accordance
with the terms of any Board Resolution or indenture supplemental hereto shall not constitute a default in the payment of principal or
premium, if any;

 

(3) the Company
defaults in the performance or breach of its covenants or agreements with respect to that series contained in this Indenture or otherwise
established with respect to that series of Securities pursuant to Section 2.1 hereof (other than a covenant or agreement that has been
expressly included in this Indenture solely for the benefit of one or more series of Securities other than such series) for a period of
90 consecutive days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice
is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified
mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the Securities of that series at the time
Outstanding;

 

(4) the Company
pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief
against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property
or (iv) makes a general assignment for the benefit of its creditors;

 

(5) a court of competent
jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints
a Custodian of the Company for all or substantially all of its property or (iii) orders the liquidation of the Company, and the order
or decree remains unstayed and in effect for 60 consecutive days; or

 

(6) certain other
specified events, as may be provided for in a Board Resolution or in a supplemental indenture.

 

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(b) In each and every such
case (other than an Event of Default specified in clause (4) or clause (5) above), unless the principal of all the Securities of that
series shall have already become due and payable, either the Trustee or the holders of not less than 25% in aggregate principal amount
of the Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such
Securityholders), may, and the Trustee at the request of the holders of not less than 25% in aggregate principal amount of the Securities
of that series then outstanding hereunder shall, declare the principal of (and premium, if any, on) and accrued and unpaid interest on
all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be
immediately due and payable. If an Event of Default specified in clause (4) or clause (5) above occurs, the principal of and accrued and
unpaid interest on all the Securities of that series shall automatically be immediately due and payable without any declaration or other
act on the part of the Trustee or the holders of the Securities.

 

(c) At any time after the
principal of (and premium, if any, on) and accrued and unpaid interest on the Securities of that series shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided,
the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited
with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal
of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise than by acceleration (with interest
upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments
of interest, at the rate per annum expressed in the Securities of that series to the date of such payment or deposit) and the amount payable
to the Trustee under Section 7.6, and (ii) any and all Events of Default under this Indenture with respect to such series, other than
the nonpayment of principal of (and premium, if any, on) and accrued and unpaid interest on Securities of that series that shall not have
become due by their terms, shall have been remedied or waived as provided in Section 6.6.

 

No such rescission and annulment shall extend
to or shall affect any subsequent default or impair any right consequent thereon.

 

(d) In case the Trustee shall
have proceeded to enforce any right with respect to Securities of that series under this Indenture and such proceedings shall have been
discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case, subject to any determination in such proceedings, the Company and the Trustee shall be restored
respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall
continue as though no such proceedings had been taken.

 

SECTION
6.2 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

 

(a) The Company covenants
that (i) in case it shall default in the payment of any installment of interest on any of the Securities of a series, and such default
shall have continued for a period of 30 days, or (ii) in case it shall default in the payment of the principal of (or premium, if any,
on) any of the Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series
or upon redemption or upon declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect
to that series as and when the same shall have become due and payable, then, upon demand of the Trustee, the Company will pay to the Trustee,
for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on
all such Securities for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal
(and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments
of interest at the rate per annum expressed in the Securities of that series; and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.6.

 

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(b) If the Company shall fail
to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and
empowered to institute any action or proceeding at law or in equity for the collection of the sums so due and unpaid, and may prosecute
any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other
obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the manner provided by law or equity
out of the property of the Company or other obligor upon the Securities of that series, wherever situated.

 

(c) In case of any receivership,
insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affecting the Company,
or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted
by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents
as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Securities of such series allowed for
the entire amount due and payable by the Company under this Indenture at the date of institution of such proceedings and for any additional
amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable
or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.6;
and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such
series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly
to such Securityholders, to pay to the Trustee any amount due it under Section 7.6.

 

(d) All rights of action and
of asserting claims under this Indenture, or under any of the terms established with respect to Securities of that series, may be enforced
by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto,
and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery
of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.6, be for the ratable benefit of the
holders of the Securities of such series.

 

In case of an Event of Default hereunder, the
Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted
in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

 

Nothing contained herein shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment
or composition affecting the Securities of that series or the rights of any holder thereof or to authorize the Trustee to vote in respect
of the claim of any Securityholder in any such proceeding.

 

SECTION
6.3 APPLICATION OF MONEYS COLLECTED.

 

Any moneys collected by the Trustee pursuant to
this Article VI with respect to a particular series of Securities shall be applied in the following order, at the date or dates fixed
by the Trustee and, in case of the distribution of such moneys on account of principal (or premium, if any) or interest, upon presentation
of the Securities of that series, and notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid:

 

FIRST: To the payment of reasonable
costs and expenses of collection and of all amounts payable to the Trustee under Section 7.6;

 

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SECOND: To the payment to
holders of Securities of the amounts then due and unpaid upon Securities of such series for principal (and premium, if any), amounts payable
upon redemption or repurchase of the Securities, and interest, in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium,
if any) and interest, respectively; and

 

THIRD: To the payment of the
remainder, if any, to the Company or any other Person lawfully entitled thereto.

 

The Trustee may fix a record date and payment
date for any payment to holders pursuant to this Section 6.3. At least 15 days before such record date, the Company shall mail to each
holder and the Trustee a notice that states the record date, the payment date and the amount to be paid.

 

SECTION
6.4 LIMITATION ON SUITS.

 

No holder of any Security of any series shall
have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at
law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder,
unless (i) such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided; (ii) the holders of not less
than 25% in aggregate principal amount of the Securities of such series then Outstanding shall have made written request upon the Trustee
to institute such action, suit or proceeding in its own name as Trustee hereunder; (iii) such holder or holders shall have offered to
the Trustee such indemnity reasonably satisfactory to it against the costs, losses, expenses and liabilities to be incurred therein or
thereby; (iv) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute
any such action, suit or proceeding and (v) during such 60 day period, the holders of a majority in principal amount of the Securities
of that series do not give the Trustee a direction inconsistent with the request.

 

Notwithstanding anything contained herein to the
contrary or any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or
in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective
dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it
is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by
virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such
Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture,
except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities of such series (it being
understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial
to such holders). For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee
shall be entitled to such relief as can be given either at law or in equity.

 

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SECTION
6.5 RIGHTS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER.

 

(a) Except as otherwise provided
in Section 2.7, all powers and remedies given by this Article VI to the Trustee or to the Securityholders shall, to the extent permitted
by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities,
by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture
or otherwise established with respect to such Securities.

 

(b) No delay or omission of
the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 6.4, every power and remedy given by this Article VI or by law to the Trustee or the
Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

 

SECTION
6.6 CONTROL BY SECURITYHOLDERS.

 

The holders of a majority in aggregate principal
amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.4, shall have the right to direct
the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee with respect to such series; provided, however, that such direction shall not be in conflict with any rule of law or with
this Indenture. Subject to the provisions of Section 7.1, the Trustee shall have the right to decline to follow any such direction if
the Trustee in good faith shall, by a Trust Officer or officers of the Trustee, determine that the proceeding so directed, subject to
the Trustee’s duties under the Trust Indenture Act, would involve the Trustee in personal liability or might be unduly prejudicial
to the Securityholders not involved in the proceeding. The holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding affected thereby, determined in accordance with Section 8.4, may on behalf of the holders of all of the
Securities of such series waive any past default in the performance of any of the covenants contained herein or established pursuant to
Section 2.1 with respect to such series and its consequences, except a default in the payment of the principal of, or premium, if any,
or interest on, any of the Securities of that series as and when the same shall become due by the terms of such Securities otherwise than
by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and
any premium has been deposited with the Trustee (in accordance with Section 6.1(c)), which requires the consent of each holder affected
by such waiver. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the
Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

 

SECTION
6.7 UNDERTAKING TO PAY COSTS.

 

All parties to this Indenture agree, and each
holder of any Securities by such holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant
in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions
of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders,
holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder
for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this Indenture.

 

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ARTICLE
VII

 

CONCERNING
THE TRUSTEE

 

SECTION
7.1 CERTAIN DUTIES AND RESPONSIBILITIES OF TRUSTEE.

 

(a) The Trustee, prior to
the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all Events of Default with respect
to the Securities of that series that may have occurred, shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture
against the Trustee. In case an Event of Default with respect to the Securities of a series has occurred (that has not been cured or waived),
the Trustee shall exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct
of his or her own affairs. Except during the continuance of an Event of Default with respect to the Securities of a series, in the absence
of bad faith on its part, the Trustee may with respect to the Securities of such series conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements
of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(b) No provision of this Indenture
shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(i) this subsection
(b) shall not be construed to limit the effect of subsection (a) of this Section;

 

(ii) the Trustee
shall not be liable for any error of judgment made in good faith by a Trust Officer or Trust Officers of the Trustee, unless it shall
be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(iii) the Trustee
shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the
holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding relating to the time,
method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon
the Trustee under this Indenture with respect to the Securities of that series; and

 

(iv) None of the
provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of its rights or powers if there is reasonable ground for
believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate
indemnity against such risk is not reasonably assured to it.

 

(c) Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of this Section.

 

SECTION
7.2 CERTAIN RIGHTS OF TRUSTEE.

 

Except as otherwise provided in Section 7.1:

 

(a) The Trustee may conclusively
rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, security or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;

 

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(b) Any request, direction,
order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name
of the Company by any authorized officer of the Company (unless other evidence in respect thereof is specifically prescribed herein);

 

(c) The Trustee may consult
with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect
of any action taken or suffered or omitted hereunder in good faith and in reliance thereon;

 

(d) The Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the
Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee security or
indemnity reasonably satisfactory to it against the costs, losses, expenses and liabilities that may be incurred therein or thereby; nothing
contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to a series
of the Securities (that has not been cured or waived), to exercise with respect to Securities of that series such of the rights and powers
vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent person would exercise or
use under the circumstances in the conduct of his or her own affairs;

 

(e) The Trustee shall not
be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Indenture;

 

(f) The Trustee shall not
be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond, security, or other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities of the particular series affected thereby (determined as
provided in Section 8.4), and, if so requested, except as otherwise prohibited by applicable law or as would reasonably be expected to
violate or result in the loss or impairment of any attorney-client or work product privilege, the Trustee shall be entitled to examine
the books, records, and premises of the Company, personally or by agent, or attorney, and it shall incur no liability or additional liability
of any kind by reason of such inquiry or investigation; provided, however, that the Company shall not be required to provide access or
furnish information in the event of any litigation involving this Indenture or the Securities except pursuant to applicable rules of discovery;
and provided, further, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security
afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities
as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee,
shall be repaid by the Company upon demand;

 

(g) The Trustee may execute
any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

 

(h) In no event shall the
Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless
of the form of action;

 

(i) The Trustee shall not
be deemed to have notice of any Default or Event of Default unless a Trust Officer has actual knowledge thereof or unless written notice
of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Securities and this Indenture;

 

(j) The rights, privileges,
protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act
hereunder;

 

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(k) The Trustee shall not
be required to give any bond or surety in respect of the performance of its powers and duties hereunder;

 

(l) The Trustee shall not
be liable for the acts or omissions of any other agent of the Company, and may assume performance by any such agent of its duties, absent
written notice or actual knowledge to the contrary; and

 

(m) The permissive right of
the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

 

SECTION
7.3 TRUSTEE NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OR SECURITIES.

 

(a) The recitals contained
herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness
of the same.

 

(b) The Trustee makes no representations
as to the validity or sufficiency of this Indenture or of the Securities.

 

(c) The Trustee shall not
be accountable for the use or application by the Company of any of the Securities or of the proceeds of such Securities, or for the use
or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section
2.1, or for the use or application of any moneys received by any Paying Agent other than the Trustee.

 

SECTION
7.4 MAY HOLD SECURITIES AND OTHERWISE DEAL WITH THE COMPANY.

 

Subject to the Trust Indenture Act, the Trustee,
the Security Registrar, any Paying Agent or any other agent of the Company, in its individual or any other capacity, may buy, own, hold,
sell and become the pledgee of any of the Securities or any other evidences of indebtedness or other securities, whether heretofore or
hereafter created or issued, of the Company or any Subsidiary or Affiliate of the Company with the same rights it would have if it were
not Trustee, Security Registrar, Paying Agent or such other agent; and the Trustee may engage or be interested in any financial or other
transaction with the Company or any Subsidiary or Affiliate of the Company, including, without limitation, secured and unsecured loans
to the Company or any Subsidiary or Affiliate of the Company; and may maintain any and all other general banking and business relations
with the Company and any Subsidiary or Affiliate of the Company with like effect and in the same manner and to the same extent as if the
Trustee were not a party to this Indenture; and no implied covenant shall be read into this Indenture against the Trustee in respect of
any such matters.

 

SECTION
7.5 MONEYS HELD IN TRUST.

 

Subject to the provisions of Sections 11.2, 12.5,
12.6 and 12.7, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under
no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.

 

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SECTION
7.6 COMPENSATION AND REIMBURSEMENT.

 

(a) The Company covenants
and agrees to pay to the Trustee, and the Trustee shall be entitled to, such compensation (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) as the Company and the Trustee may from time to time agree in writing,
for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of the powers
and duties hereunder of the Trustee, and, except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons
not regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence or willful misconduct
and except as the Company and Trustee may from time to time agree in writing. The Company also covenants to indemnify the Trustee (and
its officers, agents, directors and employees) for, and to hold it harmless against, any loss, costs, damages, liability or expense incurred
without negligence or willful misconduct on the part of the Trustee (as determined by a court of competent jurisdiction in a final and
non-appealable judgment) and arising out of or in connection with the acceptance or administration of this trust, including the reasonable
costs and expenses of defending itself against any claim of liability in the premises.

 

(b) To secure the Company’s
payment obligations in this Section 7.6, the Trustee shall have a lien prior to the Securities of any series on all money or property
held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of such series.

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.1(a)(4) or 6.1(a)(5) occurs, the expenses and the compensation for the services are intended
to constitute expenses of administration under any Bankruptcy Law.

 

The provisions of this Section 7.6 shall survive
the resignation or removal of the Trustee and the termination or satisfaction of this Indenture.

 

SECTION
7.7 RELIANCE ON OFFICER’S CERTIFICATE.

 

Except as otherwise provided in Section 7.1, whenever
in the administration of the provisions of this Indenture the Trustee shall deem it reasonably necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed
to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee and such certificate, in the absence
of negligence or willful misconduct on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted to be taken by it under the provisions of this Indenture upon the faith thereof.

 

SECTION
7.8 DISQUALIFICATION; CONFLICTING INTERESTS.

 

If the Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply
with the provisions of Section 310(b) of the Trust Indenture Act.

 

SECTION
7.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

 

There shall at all times be a Trustee with respect
to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws of the U.S. or
any state or territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission,
authorized under such laws to exercise corporate trust powers, having (or, in the case of a subsidiary of a bank holding company, its
bank holding company parent shall have) a combined capital and surplus of at least one hundred million U.S. dollars ($100,000,000), and
subject to supervision or examination by federal, state, territorial, or District of Columbia authority.

 

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If such corporation or other Person publishes
reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such corporation or other Person shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Person directly
or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with
the effect specified in Section 7.10.

 

SECTION
7.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

 

(a) The Trustee or any successor
hereafter appointed may at any time resign with respect to the Securities of one or more series by giving written notice thereof to the
Company and by transmitting notice of resignation by mail, first class postage prepaid (or, in the case of Securities held in book-entry
form, by electronic transmission), to the Securityholders of such series, as their names and addresses appear upon the Security Register.
Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series
by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the
resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment
within 30 days after the mailing of such notice of resignation, the resigning Trustee may at the expense of the Company, petition any
court of competent jurisdiction for the appointment of a successor trustee with respect to Securities of such series, or the holders of
at least 10% in the aggregate principal amount of Outstanding Securities may petition any such court for the appointment of a successor
trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(b) In case at any time any
one of the following shall occur:

 

(i) the Trustee
shall fail to comply with the provisions of Section 7.8 after written request therefor by the Company or by any Securityholder who has
been a bona fide holder of a Security or Securities for at least six months; or

 

(ii) the Trustee
shall cease to be eligible in accordance with the provisions of Section 7.9 and shall fail to resign after written request therefor by
the Company or by any such Securityholder; or

 

(iii) the Trustee
shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver
of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the Trustee
or of its property or affairs for the purpose of rehabilitation, conservation or liquidation;

 

then, in any such case, the Company may remove
the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or
any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may, on behalf of that holder and
all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

 

(c) The holders of a majority
in aggregate principal amount of the Securities of any series at the time Outstanding may, upon 30 days’ notice, remove the Trustee
with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent
of the Company.

 

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(d) Any resignation or removal
of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant to any of the provisions of
this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11.

 

(e) Any successor trustee
appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or all of such series, and at
any time there shall be only one Trustee with respect to the Securities of any particular series.

 

SECTION
7.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

 

(a) In case of the appointment
hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested
with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such
retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor trustee all the
rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property
and money held by such retiring Trustee hereunder.

 

(b) In case of the appointment
hereunder of a successor trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee
and each successor trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (i) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series to which the appointment of such successor trustee relates, (ii) shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in
the retiring Trustee, and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such Trustees co-trustees of the same trust, that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; and upon the execution and delivery of such supplemental indenture
the resignation or removal of the retiring Trustee shall become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment of such successor trustee relates have no further responsibility
for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture,
and each such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee
relates; but, on request of the Company or any successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder
with respect to the Securities of that or those series to which the appointment of such successor trustee relates.

 

(c) Upon request of any such
successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor
trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

 

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(d) No successor trustee shall
accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article
VII.

 

(e) Upon acceptance of appointment
by a successor trustee as provided in this Section, the Company shall transmit notice of the succession of such trustee hereunder by mail,
first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register. If the Company fails
to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such
notice to be transmitted at the expense of the Company.

 

SECTION
7.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

 

Any corporation into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee
(including the administration of the trust created by this Indenture), shall be the successor of the Trustee hereunder, provided that
such corporation shall be qualified under the provisions of Section 7.8 and eligible under the provisions of Section 7.9, without the
execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.
In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

 

SECTION
7.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY.

 

The Trustee shall comply with Section 311(a) of
the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has
resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

 

SECTION
7.14 NOTICE OF DEFAULT.

 

If any Default or any Event of Default occurs
and is continuing and if the Trustee has notice of such Default or Event of Default, the Trustee shall mail to each Securityholder in
the manner and to the extent provided in Section 313(c) of the Trust Indenture Act notice of the Default or Event of Default within 90
days after it occurs (or, the Trustee does not have notice of such Default or Event of Default until after that time, 15 days after the
Trustee has notice of such Default or Event of Default), unless such Default or Event of Default has been cured; provided, however, that,
except in the case of a default in the payment of the principal of (or premium, if any) or interest on any Security, the Trustee shall
be protected in withholding such notice if and so long as the Trustee in good faith determines that the withholding of such notice is
in the interest of the Securityholders.

 

SECTION
7.15 LIMITATION OF LIABILITY

 

The Trustee is entering into this Indenture and
the other documents contemplated hereby and related hereto to which it is a party solely in its capacity as trustee under the Indenture
and not in its individual capacity (except as expressly stated herein) and in no case shall the Trustee (or any Person acting as successor
trustee under this Indenture) be personally liable for or on account of any of the statements, representations, warranties, covenants
or obligations stated to be those of the Company hereunder or thereunder, all such liability, if any, being expressly waived by the parties
hereto and any person claiming by, through or under such party.

 

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ARTICLE
VIII

 

CONCERNING
THE SECURITYHOLDERS

 

SECTION
8.1 EVIDENCE OF ACTION BY SECURITYHOLDERS.

 

Whenever in this Indenture it is provided that
the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may take any
action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action),
the fact that at the time of taking any such action the holders of such majority or specified percentage of that series have joined therein
may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series
in person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option,
as evidenced by an Officer’s Certificate, fix in advance a record date for such series for the determination of Securityholders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no
obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date
shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding
Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, however,
that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six months after the record date.

 

SECTION
8.2 PROOF OF EXECUTION BY SECURITYHOLDERS.

 

Subject to the provisions of Section 7.1, proof
of the execution of any instrument by a Securityholder (such proof will not require notarization) or his agent or proxy and proof of the
holding by any Person of any of the Securities shall be sufficient if made in the following manner:

 

(a) The fact and date of the
execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

 

(b) The ownership of Securities
shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar thereof.

 

The Trustee may require such additional proof
of any matter referred to in this Section as it shall deem necessary.

 

SECTION
8.3 WHO MAY BE DEEMED OWNERS.

 

Prior to the due presentment for registration
of transfer of any Security, the Company, the Trustee, any Paying Agent and any Security Registrar may deem and treat the Person in whose
name such Security shall be registered upon the books of the Security Registrar as the absolute owner of such Security (whether or not
such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar)
for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.3) interest on such
Security and for all other purposes; and neither the Company nor the Trustee nor any Paying Agent nor any Security Registrar shall be
affected by any notice to the contrary.

 

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SECTION
8.4 CERTAIN SECURITIES OWNED BY COMPANY DISREGARDED.

 

In determining whether the holders of the requisite
aggregate principal amount of Securities of a particular series have concurred in any direction, consent or waiver under this Indenture,
the Securities of that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly
or indirectly controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series
shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that the Trustee
actually knows are so owned shall be so disregarded. The Securities so owned that have been pledged in good faith may be regarded as Outstanding
for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act
with respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct
or indirect common control with the Company or any such other obligor. In case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee.

 

SECTION
8.5 ACTIONS BINDING ON FUTURE SECURITYHOLDERS.

 

At any time prior to (but not after) the evidencing
to the Trustee, as provided in Section 8.1, of the taking of any action by the holders of the majority or percentage in aggregate principal
amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of
that series that is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by
filing written notice with the Trustee, and upon proof of holding as provided in Section 8.2, revoke such action so far as concerns such
Security. Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and
upon all future holders and owners of such Security, and of any Security issued in exchange therefor, on registration of transfer thereof
or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security. Any action taken by the
holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture
in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that
series.

 

ARTICLE
IX

 

SUPPLEMENTAL
INDENTURES

 

SECTION
9.1 SUPPLEMENTAL INDENTURES WITHOUT THE CONSENT OF SECURITYHOLDERS.

 

In addition to any supplemental indenture otherwise
authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall comply with the provisions of the Trust Indenture Act as then in effect), without the consent of the
Securityholders, for one or more of the following purposes:

 

(a) to cure any ambiguity,
defect, omission or inconsistency herein or in the Securities of any series (with such ambiguity, defect, omission or inconsistency being
evidenced by an Officer’s Certificate);

 

(b) to comply with Article
X, including to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of
the Company herein and in the Securities contained or to provide for the assumption of a guarantor’s obligations to holders of the
Securities in the case of a merger or consolidation or sale of all or substantially all of the guarantor’s assets;

 

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(c) to provide for uncertificated
Securities in addition to or in place of certificated Securities; provided that the uncertificated Securities are issued in registered
form for purposes of Section 163(f) of the Code;

 

(d) to add to the covenants
of the Company or any guarantor for the benefit of the holders of the Securities of any series or to surrender any right or power conferred
upon the Company or any guarantor;

 

(e) to provide for the issuance
of additional Securities of any series in accordance with the terms of this Indenture;

 

(f) to evidence and provide
for the acceptance of appointment hereunder by a successor trustee;

 

(g) to comply with any requirements
of the Commission or any successor in connection with the qualification of this Indenture under the Trust Indenture Act;

 

(h) to provide security for
the Securities of any series or to provide for any guarantee of the Securities of any series or to confirm or evidence the release, termination
or discharge of any guarantee of or lien securing the Securities of any series when such release, termination or discharge is permitted
by this Indenture;

 

(i) to make any change that
would provide any additional rights or benefits to the holders of the Securities of any series or that does not adversely affect the legal
rights under this Indenture of any holder;

 

(j) to make any amendment
to the provision of this Indenture relating to the transfer and legending of the Securities of any series; provided, however, that (1)
compliance with this Indenture as so amended would not result in Securities of such series being transferred in violation of the Securities
Act or any other applicable securities law and (2) such amendment does not materially and adversely affect the rights of holders to transfer
Securities of such series; or

 

(k) to conform the text of
this Indenture, any guarantee of the Securities of any series or the notes to any provision of the “Description of Debt Securities
and Guarantees” included in the prospectus forming a part of the registration statement filed by the Company with the Commission
on Form S-3 on August 4, 2016 or any subsequent description of Securities contained in any prospectus supplement, to the extent that such
provision in that “Description of Debt Securities and Guarantees” or any subsequent description of Securities contained in
any prospectus supplement was intended by the Company to be a verbatim recitation of a provision of this Indenture, any guarantee of the
Securities of any series or the Securities, as applicable (with such intention being evidenced by an Officer’s Certificate).

 

The Trustee is hereby authorized to join with
the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized by the provisions
of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 9.2.

 

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SECTION
9.2 SUPPLEMENTAL INDENTURES WITH THE CONSENT OF SECURITYHOLDERS.

 

With the consent (evidenced as provided in Section
8.1) of the holders of not less than a majority in aggregate principal amount of the Securities of each series affected by such supplemental
indenture or indentures at the time Outstanding (including consents obtained in connection with a tender offer or exchange offer for the
Securities), the Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture
or indentures supplemental hereto (which shall comply with the provisions of the Trust Indenture Act as then in effect) for the purpose
of adding any provisions to or changing in any manner or eliminating (or waiving any past default or compliance with) any of the provisions
of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.1 the rights of the holders
of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent
of the holders of each Security then Outstanding and affected thereby,

 

(a) reduce the percentage
or aggregate principal amount of Securities, the holders of which are required to consent to any modification, amendment, supplement or
waiver;

 

(b) reduce the principal amount
of, or premium, if any, or rate of interest on, such Securities;

 

(c) extend the fixed maturity
of such Securities;

 

(d) extend the time for payment
of interest on such Securities;

 

(e) reduce the redemption
or repurchase price of such Securities or change the time at which the Securities may or must be redeemed or repurchased;

 

(f) change the currency of
payment of principal of, or premium, if any, or interest on, such Securities;

 

(g) waive a default in the
payment of principal of, premium, if any, or interest on such Securities (except as provided in Section 6.1(c));

 

(h) voluntarily release a
guarantor of such Securities other than in accordance with this Indenture;

 

(i) reduce the percentage
or aggregate principal amount of Outstanding Securities the consent of whose holders is necessary for waiver of compliance with certain
provisions of this Indenture or for waiver of certain defaults; or

 

(j) impair the right to institute
suit for the enforcement of any payment on or after the stated maturity (or, in the case of a redemption, on or after the redemption date)
of such Securities.

 

It shall not be necessary for the consent of the
Securityholders of any series affected thereby under this Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such consent shall approve the substance thereof.

 

SECTION
9.3 EFFECT OF SUPPLEMENTAL INDENTURES.

 

Upon the execution of any supplemental indenture
pursuant to the provisions of this Article IX or of Section 10.1, this Indenture shall, with respect to such series, be and be deemed
to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any
such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

    29

    

    

 

SECTION
9.4 SECURITIES AFFECTED BY SUPPLEMENTAL INDENTURES.

 

Securities of any series affected by a supplemental
indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article IX
or of Section 10.1, may bear a notation in form approved by the Company, provided such form meets the requirements of any securities exchange
upon which such series may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine,
new Securities of that series so modified as to conform, in the opinion of the Board of Directors, to any modification of this Indenture
contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for
the Securities of that series then Outstanding.

 

SECTION
9.5 EXECUTION OF SUPPLEMENTAL INDENTURES.

 

Upon the request of the Company, accompanied by
its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of
the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture
or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture. The
Trustee shall receive, in addition to the documents required by Section 14.7(a), an Officer’s Certificate and an Opinion of Counsel
stating that and as conclusive evidence that any supplemental indenture executed pursuant to this Article IX is authorized or permitted
by, and conforms to, the terms of this Article IX, constitutes the legal, valid and binding obligation of the Company, enforceable against
it in accordance with its terms (subject to customary exceptions) and that it is proper for the Trustee under the provisions of this Article
IX to join in the execution thereof.

 

Promptly after the execution by the Company and
the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall transmit by mail, first class
postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all
series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Company to mail such notice,
or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

ARTICLE
X

 

SUCCESSOR
ENTITY

 

SECTION
10.1 COMPANY MAY CONSOLIDATE, ETC.

 

Except as provided pursuant to Section 2.1 pursuant
to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this
Indenture, nothing contained in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its
successor or successors as an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with the
Company or its successor or successors) authorized to acquire and operate the same; provided, however, the Company hereby covenants and
agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance,
transfer or other disposition, (a) the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities
of all series in accordance with the terms of each series, according to their tenor, and the due and punctual performance and observance
of all the covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant
to Section 2.1 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the
provisions of the Trust Indenture Act, as then in effect) executed and delivered to the Trustee by the entity formed by such consolidation,
or into which the Company shall have been merged, or by the entity which shall have acquired such property and (b) in the event that the
Securities of any series then Outstanding are convertible into or exchangeable for shares of common stock or other securities of the Company,
such entity shall, by such supplemental indenture, make provision so that the Securityholders of Securities of that series shall thereafter
be entitled to receive upon conversion or exchange of such Securities the number of securities or property to which a holder of the number
of shares of common stock or other securities of the Company deliverable upon conversion or exchange of those Securities would have been
entitled had such conversion or exchange occurred immediately prior to such consolidation, merger, sale, conveyance, transfer or other
disposition.

 

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SECTION
10.2 SUCCESSOR ENTITY SUBSTITUTED.

 

(a) In case of any such consolidation,
merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed
and delivered to the Trustee and satisfactory in form to the Trustee of the obligations set forth under Section 10.1 on all of the Securities
of all series Outstanding, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had
been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this
Indenture and the Securities.

 

(b) In case of any such consolidation,
merger, sale, conveyance, transfer or other disposition, such changes in phraseology and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

 

(c) Nothing contained in this
Article X shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company
is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of
any other Person (whether or not affiliated with the Company).

 

SECTION
10.3 EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE.

 

The Trustee, subject to the provisions of Section
7.1, shall receive an Officer’s Certificate and an Opinion of Counsel stating that and as conclusive evidence that any such consolidation,
merger, sale, conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article X.

 

ARTICLE
XI

 

SATISFACTION
AND DISCHARGE

 

SECTION
11.1 SATISFACTION AND DISCHARGE OF INDENTURE.

 

This Indenture shall upon Company Request cease
to be of further effect with respect to any series of Securities (except as to any surviving rights of registration of transfer or exchange
of Securities of such series herein expressly provided for or in the form of Security for such series and any right to receive additional
amounts), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture as to such series, when

 

(a) either

 

(i) all Securities
of such series theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 2.7 and (ii) Securities for whose payment cash, Governmental Obligations or a combination
thereof has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Sections 12.5 and 12.6) have been delivered to the Trustee for cancellation; or

 

(ii) all such Securities
of such series not theretofore delivered to the Trustee for cancellation, or

 

(A) have become due and payable
by reason of the mailing of a notice of redemption or otherwise, or

 

(B) will become due and payable
within one year,

 

    31

    

    

 

and the Company, in the case of (A) or (B) above,
has deposited or caused to be deposited with the Trustee as trust funds in trust specifically pledged as security for, and dedicated solely
to, the benefit of the Securityholders of the Securities of that series, cash in U.S. dollars, Governmental Obligations or a combination
thereof in such amount as will be sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire indebtedness
on such Securities not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest, if any,
to the date of such deposit (in the case of Securities which have become due and payable), or to the Stated Maturity or the Redemption
Date, as the case may be;

 

(b) in respect of clause (a)(ii),
no Event of Default has occurred and is continuing on the date of deposit (other than an Event of Default resulting from the borrowing
of funds to be applied to such deposit and any similar deposit relating to other indebtedness and, in each case, the granting of certain
liens to secure such borrowing);

 

(c) the Company or any guarantor
has paid or caused to be paid all other sums payable hereunder by the Company with respect to such series; and

 

(d) the Company has delivered
irrevocable instructions to the Trustee under this Indenture to apply the deposited money towards the payment of the notes at maturity
or on the redemption date, as the case may be.

 

Notwithstanding the satisfaction and discharge
of this Indenture with respect to such series, the obligations of the Company to the Trustee with respect to such series under this Section
11.1 and Sections 7.6 and 7.10, the obligations of the Company to any Authenticating Agent under Section 2.10, and, if cash, Governmental
Obligations or a combination thereof shall have been deposited with the Trustee pursuant to subclause (ii) of clause (a) of this Section,
the obligations of the Trustee under Section 11.2, shall survive.

 

SECTION
11.2 APPLICATION OF TRUST MONEY.

 

Subject to the provisions of Section 12.6, all
cash and Governmental Obligations deposited with the Trustee pursuant to Section 11.1 shall be held in trust and applied by the Trustee,
in accordance with the provisions of the series of Securities and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company or any of its Subsidiaries acting as Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of all sums due and to become due thereon in respect of the principal of (and premium, if any) and interest, if any, on the Securities
for which payment of such cash and Governmental Obligations has been deposited with the Trustee.

 

If the Trustee or Paying Agent is unable to apply
any cash or Governmental Obligations in accordance with this Article XI by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations
of the Company under this Indenture and the Securities of such series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article XI until such time as the Trustee or Paying Agent is permitted to apply all such cash and Governmental Obligations
in accordance with this Article XI; provided, however, that, if the Company has made any payment of principal, premium, if any, interest
on or principal of any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the
holders of such Securities to receive such payment from the cash and Governmental Obligations held by the Trustee or Paying Agent.

 

    32

    

    

 

ARTICLE
XII

 

LEGAL
DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION
12.1 OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE.

 

The Company may at any time, at the option of
its Board of Directors evidenced by a Board Resolution set forth in an Officer’s Certificate, elect to have either Section 12.2
or 12.3 hereof be applied to all outstanding Securities of a series upon compliance with the conditions set forth below in this Article
XII.

 

SECTION
12.2 LEGAL DEFEASANCE AND DISCHARGE.

 

Upon the Company’s exercise under Section
12.1 hereof of the option applicable to this Section 12.2 with respect to a series of Securities, the Company will, subject to the satisfaction
of the conditions set forth in Section 12.4 hereof, be deemed to have been discharged from its obligations with respect to all outstanding
Securities of such series on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).
For this purpose, Legal Defeasance means that the Company will be deemed to have paid and discharged the entire Indebtedness represented
by the Outstanding Securities of such series, which will thereafter be deemed to be Outstanding only for the purposes of Section 12.5
hereof and the Articles and other Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all their
other obligations under such Securities and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged
hereunder:

 

(1) the rights of holders
of Outstanding Securities of such series to receive payments in respect of the principal of, premium on, if any, or interest on such Securities
when such payments are due from the trust referred to in Section 12.4 hereof;

 

(2) the Issuers’ obligations
with respect to such Securities under Article 2 and Section 4.2 hereof;

 

(3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and the Company’s obligations in connection therewith; and

 

(4) this Article XII.

 

Subject to compliance with this Article XII, the
Company may exercise its option under this Section 12.2 with respect to a series of Securities, notwithstanding the prior exercise of
its option under Section 12.3 hereof with respect to such series of Securities.

 

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SECTION
12.3 COVENANT DEFEASANCE.

 

Upon the Company’s exercise under Section
12.1 hereof of the option applicable to this Section 12.3 with respect to a series of Securities, the Company will, subject to the satisfaction
of the conditions set forth in Section 12.4 hereof, be released from its obligations under Section 5.3 and Article X and any additional
covenants specified in any Board Resolution or indenture supplemental hereto with respect to the Outstanding Securities of such series
on and after the date the conditions set forth in Section 12.4 hereof are satisfied (hereinafter, “Covenant Defeasance”),
and the Securities of such series will thereafter be deemed not Outstanding for the purposes of any direction, waiver, consent or declaration
or act of holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed Outstanding
for all other purposes hereunder (it being understood that such Securities will not be deemed Outstanding for accounting purposes). For
this purpose, Covenant Defeasance means that, with respect to the Outstanding Securities of such series, the Company may omit to comply
with and shall have no liability in respect of any term, condition or limitation set forth in Section 5.3 or Article X and any additional
covenants specified in any Board Resolution or indenture supplemental hereto, whether directly or indirectly, by reason of any reference
elsewhere herein to any such Section or Article or by reason of any reference in any such Section or Article to any other provision herein
or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.1 hereof with
respect to Outstanding Securities of such series, but, except as specified above, the remainder of this Indenture and such Securities
shall be unaffected thereby.

 

SECTION
12.4 CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.

 

In order to exercise either Legal Defeasance or
Covenant Defeasance under either Section 12.2 or 12.3 hereof with respect to the Outstanding Securities of a particular series:

 

(1) the Company must irrevocably
deposit with the Trustee, in trust, for the benefit of the Securityholders of the Securities of that series, cash in U.S. dollars, Governmental
Obligations, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized investment bank,
appraisal firm, or firm of independent public accountants, to pay the principal of, premium on, if any, and interest on, the Outstanding
Securities of such series on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Company
must specify whether the Securities of such series are being defeased to such stated date for payment or to a particular redemption date;

 

(2) in the case of an election
under Section 12.2 hereof, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming
that:

 

(A) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling; or

 

(B) since the date of this Indenture,
there has been a change in the applicable federal income tax law,

 

in either case to the effect that, and based thereon
such Opinion of Counsel shall confirm that, the holders of the Outstanding Securities of such series will not recognize income, gain or
loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(3) in the case of an election
under Section 12.3 hereof, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming
that the holders of the Outstanding Securities of such series will not recognize income, gain or loss for federal income tax purposes
as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

    34

    

    

 

(4) no Default or Event of
Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit (other than a
Default or Event of Default resulting from the borrowing of funds to be applied to such deposit (and any similar concurrent deposit relating
to other Indebtedness), and the granting of liens to secure such borrowings);

 

(5) such Legal Defeasance
or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material agreement or instrument
(other than this Indenture and the agreements governing any other Indebtedness being defeased, discharged or replaced) to which the Company
is a party or by which the Company is bound; and

 

(6) the Company must deliver
to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

 

SECTION
12.5 DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

 

Subject to Section 12.6 hereof, all cash and Governmental
Obligations (including the proceeds thereof) deposited with the Trustee pursuant to Section 12.4 hereof in respect of the Outstanding
Securities of a particular series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities
and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the holders of such Securities of all sums due and to become due thereon in respect of principal, premium, if
any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Company will pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the cash or Governmental Obligations deposited pursuant to Section
12.4 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for
the account of the holders of the Outstanding Securities of the applicable series.

 

Notwithstanding anything in this Article XII to
the contrary, the Trustee shall deliver or pay to the Company from time to time upon Company Request any cash or Governmental Obligations
held by it as provided in Section 12.4 hereof which, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 12.4(1) hereof),
are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

SECTION
12.6 REPAYMENT TO COMPANY.

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal of, premium on, if any, or interest on any Security and
remaining unclaimed for two years after such principal, premium, if any, or interest, has become due and payable shall, unless otherwise
required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be paid to the Company on its request or
(if then held by the Company) will be discharged from such trust; and the holder of such Security will thereafter, as an unsecured general
creditor, be permitted to look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect
to such trust money, and all liability of the Company as trustee thereof, will thereupon cease; provided, however, that the Trustee
or such Paying Agent, before being required to make any such repayment, may give written notice to the holder of such Security, at such
holder’s address as it appears upon the Security Register, that such money remains unclaimed and that, after a date specified therein,
which will not be less than 30 days from the date of such notification, any unclaimed balance of such money then remaining will, unless
otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Company.

 

    35

    

    

 

SECTION
12.7 REINSTATEMENT.

 

If the Trustee or Paying Agent is unable to apply
any cash or Governmental Obligations in accordance with Section 12.2 or 12.3 hereof, as the case may be, by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations
under this Indenture and the Securities of the particular series shall be revived and reinstated as though no deposit had occurred pursuant
to Section 12.2 or 12.3 hereof until such time as the Trustee or Paying Agent is permitted to apply all such cash or Governmental Obligations
in accordance with Section 12.2 or 12.3 hereof, as the case may be; provided, however, that, if the Company makes any payment of
principal of, premium on, if any, or interest on, any Security of the particular series following the reinstatement of its obligations,
the Company shall be subrogated to the rights of the holders of such Securities to receive such payment from the cash or Governmental
Obligations held by the Trustee or Paying Agent.

 

ARTICLE
XIII

 

IMMUNITY
OF INCORPORATORS, STOCKHOLDERS,

 

OFFICERS
AND DIRECTORS

 

SECTION
13.1 NO RECOURSE.

 

No recourse under or upon any obligation, covenant
or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against
any incorporator, stockholder, officer or director, past, present or future as such, of the Company or of any predecessor or successor
corporation, either directly or through the Company or any such predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture
and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or
is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of any predecessor or successor
corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and
claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture
and the issuance of such Securities.

 

ARTICLE
XIV

 

MISCELLANEOUS PROVISIONS

 

SECTION
14.1 EFFECT ON SUCCESSORS AND ASSIGNS.

 

All the covenants, stipulations, promises and
agreements in this Indenture made by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not. All
the covenants, stipulations, promises and agreements in this Indenture made by or on behalf of the Trustee shall bind its successors and
assigns, whether so expressed or not.

 

SECTION
14.2 ACTIONS BY SUCCESSOR.

 

Any act or proceeding by any provision of this
Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed
with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor
of the Company.

 

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SECTION
14.3 SURRENDER OF COMPANY POWERS.

 

The Company by instrument in writing executed
by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon
such power so surrendered shall terminate both as to the Company and as to any successor corporation.

 

SECTION
14.4 NOTICES.

 

Except as otherwise expressly provided herein,
any notice, request or demand that by any provision of this Indenture is required or permitted to be given, made or served by the Trustee
or by the holders of Securities or by any other Person pursuant to this Indenture to or on the Company may be given or served by being
deposited in first class mail, postage prepaid, addressed, as follows: Mawson Infrastructure Group Inc., Level 5, 97 Pacific Highway, North Sydney NSW Australia 2060, Attention: Chief Executive Officer. Any notice, election, request or demand by the Company or any Securityholder
or by any other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently given or made, for
all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

 

SECTION
14.5 GOVERNING LAW/WAIVER OF JURY TRIAL.

 

This Indenture and each Security shall be deemed
to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the
laws of said State, except to the extent that the Trust Indenture Act is applicable. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

SECTION
14.6 TREATMENT OF SECURITIES AS DEBT.

 

It is intended that the Securities will be treated
as indebtedness and not as equity for federal income tax purposes. The provisions of this Indenture shall be interpreted to further this
intention.

 

SECTION
14.7 COMPLIANCE CERTIFICATES AND OPINIONS.

 

(a) Upon any application or
demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action
have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been
complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically
required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need
be furnished.

 

(b) Each certificate or opinion
provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture
shall include (i) a statement that the Person making such certificate or opinion has read such covenant or condition; (ii) a brief statement
as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or
opinion are based; (iii) a statement that, in the opinion of such Person, he has made such examination or investigation as is reasonably
necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (iv)
a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

    37

    

    

 

SECTION
14.8 PAYMENTS ON BUSINESS DAYS.

 

Except as provided pursuant to Section 2.1 pursuant
to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this
Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall
not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with
the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after
such nominal date.

 

SECTION
14.9 CONFLICT WITH TRUST INDENTURE ACT.

 

If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with any provision of the Trust Indenture Act, such Trust Indenture Act provision shall control.

 

SECTION
14.10 COUNTERPARTS.

 

This Indenture may be executed in any number of
counterparts, each of which shall be deemed an original, but such counterparts shall together constitute but one and the same instrument.

 

SECTION
14.11 SEVERABILITY.

 

In case any one or more of the provisions contained
in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this
Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein
or therein.

 

SECTION
14.12 COMPLIANCE CERTIFICATES.

 

The Company shall deliver to the Trustee, within
120 days after the end of each fiscal year during which any Securities of any series were outstanding, an Officer’s Certificate
stating whether or not the signers know of any Default or Event of Default that occurred during such fiscal year. Such certificate shall
contain a certification from the principal executive officer, principal financial officer or principal accounting officer of the Company
that a review has been conducted of the activities of the Company and the Company’s performance under this Indenture and that the
Company has complied with all conditions and covenants under this Indenture. For purposes of this Section 14.12, such compliance shall
be determined without regard to any period of grace or requirement of notice provided under this Indenture. If any of the officers of
the Company signing such certificate has knowledge of such a Default or Event of Default, the certificate shall describe any such Default
or Event of Default and its status.

 

    38

    

    

 

SECTION
14.13 USA PATRIOT ACT

 

The parties hereto acknowledge that, in accordance
with Section 326 of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as amended, modified or supplemented
from time to time, the “USA Patriot Act”), the Trustee, like all financial institutions, is required to obtain, verify,
and record information that identifies each Person or legal entity that opens an account. The parties to this Indenture agree that they
will provide the Trustee with such information as the Trustee may request in order for the Trustee to satisfy the requirements of the
USA Patriot Act.

 

SECTION
14.14 CONSENT TO JURISDICTION AND SERVICE

 

To the fullest extent permitted by applicable
law, each party hereby irrevocably submits to the non-exclusive jurisdiction of any Federal or State court located in the Borough of Manhattan
in The City of New York, New York in any suit, action or proceeding based on or arising out of or relating to this Indenture or any Securities
and irrevocably agrees that all claims in respect of such suit or proceeding may be determined in any such court. Each party irrevocably
waives, to the fullest extent permitted by law, any objection which it may have to the laying of the venue of any such suit, action or
proceeding brought in an inconvenient forum. Each party agrees that final judgment in any such suit, action or proceeding brought in such
a court shall be conclusive and binding upon such party, and may be enforced in any courts to the jurisdiction of which such party is
subject by a suit upon such judgment, provided, that service of process is effected upon such party in the manner specified herein or
as otherwise permitted by law.

 

SECTION
14.15 FORCE MAJEURE

 

In no event shall the Trustee be responsible or
liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces
beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software
and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices
in the banking industry to resume performance as soon as practicable under the circumstances.

 

[Signature page follows]

 

    39

    

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Indenture to be duly executed all as of the day and year first above written.

 

	 	MAWSON INFRASTRUCTURE GROUP INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	 	, as Trustee
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

40Document

			
	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

        Confidential
Execution Version

COLLABORATION AND LICENSE AGREEMENT
This Collaboration and License Agreement (this “Agreement”) is entered into as of May 28, 2021 (the “Effective Date”) by and among Mirati Therapeutics, Inc., a Delaware corporation, having a place of business at 3545 Cray Court, San Diego, CA 92121 USA (“Mirati”) and Zai Lab (Hong Kong) Limited, incorporated and registered in Hong Kong with the company number 1899671 whose registered office is at Room 2301, 23/F, Island Place Tower, 510 King’s Road, North Point, Hong Kong (“Licensee”).  Mirati and Licensee may be referred to herein individually as a “Party” and collectively as the “Parties.”
Recitals
Whereas, Mirati controls certain intellectual property rights, data and know-how with respect to the clinical stage oncology product referred to as “adagrasib” or “MRTX849”;
Whereas, Licensee wishes to obtain from Mirati the right to develop and commercialize the adagrasib product in the Licensed Territory (as defined below), including the People’s Republic of China, both alone and in combination with other drugs and drug candidates, and is willing to commit to conduct development and regulatory activities to obtain approval of the adagrasib product in such Licensed Territory, all as provided in and subject to the following terms; and
Whereas, Mirati is willing to grant such rights to Licensee, subject to Licensee’s commitment to the collaborative development of the adagrasib product, including Licensee’s collaboration in Global Studies (as defined below), and to the other terms set forth below.
Agreement
Now, therefore, in consideration of the foregoing premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Licensee and Mirati hereby agree as follows:
1.    DEFINITIONS
1.1    “Acquiror” has the meaning set forth in Section 17.5(c).
1.2    “Active Development Activities” has the meaning set forth in Section 5.1(d). 
1.3    “Additional Global Study” as the meaning set forth in Section 5.4(e).
1.4    “Affiliate” means, with respect to a given Party, any entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Party, as the case may be, but for only so long as such control exists.  As used in this Section 1.4, the term “control” (with correlative meanings for the terms “controlled by” and “under common control with”) means that the applicable entity has direct or indirect beneficial ownership of more than 50% of the voting share capital or other equity interest in the controlled Party, or the actual ability (directly or indirectly) to control the management and business policies of such Party.  Notwithstanding the foregoing, for the purposes of this definition, in no event shall

        Confidential
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Licensee be deemed an Affiliate of Mirati, and in no event shall Mirati be deemed an Affiliate of Licensee.
1.5    “Alliance Manager” has the meaning set forth in Section 3.8.
1.6    “Applicable Laws” means all laws, statutes, rules, regulations, ordinances, and other pronouncements having the effect of law of any federal, national, multinational, state, provincial, county, city, or other political subdivision, agency, or other body, domestic or foreign, that are applicable to the particular situation, circumstances, rights or obligations.
1.7    “Arbitrator” has the meaning set forth in Section 16.2(a).
1.8    [***]
1.9    “Breach Notice” has the meaning set forth in Section 15.2(b)(i).
1.10    “Breakthrough Designation” means designation of a drug as a breakthrough therapy by the NMPA.
1.11    “Business Day” means a day other than Saturday, Sunday or any day on which banks located in the state of California, USA or Shanghai, the PRC are authorized or obligated to close.  Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified.
1.12    “Calendar Quarter” means each respective period of three (3) consecutive months ending on March 31, June 30, September 30, and December 31.
1.13    “Calendar Year” means each respective period of twelve (12) consecutive months ending on December 31.
1.14    “cGCP” means the current good clinical practice as set out in ICH Harmonized Guidance on current Good Clinical Practice (CPMP/ICH/135/95) or U.S. 21 C.F.R. Chapters 50, 54, 56, 58, 210, 211 and 312, as may be amended from time to time.
1.15    “cGLP” means the current good laboratory practice standards promulgated or endorsed by the FDA, as defined in U.S. 21 C.F.R. Part 58, as may be amended from time to time.
1.16    “cGMP” means the then-current good manufacturing practices required by the FDA and other Applicable Laws in the United States relating to the manufacture and testing of pharmaceutical materials, and comparable Applicable Laws and requirements of the NMPA relating to the manufacture and testing of pharmaceutical materials in the Licensed Territory, as may be amended from time to time, including applicable rules and guidelines promulgated under the ICH.
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*** Certain Confidential Information Omitted.

1.17    “Change of Control” shall mean, with respect to a Party, (a) a merger, consolidation, reorganization, amalgamation, arrangement, share exchange, tender or exchange offer, private purchase, business combination or other transaction of such Party with a Third Party that results in the voting securities of such Party outstanding immediately prior thereto, or any securities into which such voting securities have been converted or exchanged, ceasing to represent at least fifty percent (50%) of the combined voting power of the surviving entity or the parent of the surviving entity immediately after such merger or consolidation, (b) a transaction or series of related transactions in which a Third Party, together with its Affiliates, becomes the direct or indirect beneficial owner of more than fifty percent (50%) of the combined voting power of the outstanding securities of such Party, or (c) the sale or other transfer to a Third Party of all or substantially all of such Party’s assets. 
1.18    “Checkpoint” has the meaning set forth in Section 5.4(c).
1.19    “Checkpoint Enrollment Allocation” has the meaning set forth in Section 5.4(c).
1.20    “Claim” has the meaning set forth in Section 14.1.
1.21    “Clinical Data” means any and all data (together with all clinical trial reports and the results of analyses thereof, including case report forms) derived or generated in any Clinical Trial involving the Compound or any Licensed Product conducted by or on behalf of either Party.
1.22    “Clinical Development Milestone Event” has the meaning set forth in Section 9.2(a).
1.23    “Clinical Development Plan” has the meaning set forth in Section 5.2.
1.24    “Clinical Supply Agreement” has the meaning set forth in Section 8.1.
1.25    “Clinical Trial” means any human clinical trial of the Compound or a Licensed Product, including any phase 1 clinical trial, phase 2 clinical trial, phase 3 clinical trial and/or Pivotal Clinical Trial.
1.26    “CMC” has the meaning set forth in Section 1.98.
1.27    “CMOs” means Third Party contractor manufacture organizations.
1.28    “Co-Commercialization” or “Co-Commercialize” or “Co-Commercializing” means, with respect to a Party, (a) each of the following Commercialization activities, to the extent assigned to such Party in the applicable Co-Commercialization Plan, undertaken by personnel of such Party with respect to Commercialization of the applicable Licensed Product in the applicable Region in the Licensed Territory[***] and (b) with respect to [***] at all times excluding [***] of the applicable Licensed Product in the applicable Region in the Licensed Territory.  For clarity, Co-Commercialization does not include activities related to [***]. 
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*** Certain Confidential Information Omitted.

    1.29    “Co-Commercialization Exercise Notice” has the meaning set forth in Section 7.4(a).
1.30    “Co-Commercialization Option” has the meaning set forth in Section 7.4(a).
1.31    “Co-Commercialization Plan” has the meaning set forth in Section 7.4(b)(i)
1.32    “Co-Commercialization Term” means, on a Licensed Product by Licensed Product basis and Region by Region basis, the period commencing on the date of delivery of the Co-Commercialization Exercise Notice until the earlier of (i) the date such date Parties mutually agree to terminate the Co-Commercialization with respect to such Licensed Product, and (ii) the expiration date of the applicable Royalty Term for such Licensed Product in such Region.  
1.33    “Code” means Title 11 of the U.S. Code.
1.34    “Combination Regimen” has the meaning set forth in Section 1.106.
1.35    “Combined Therapy” has the meaning set forth in Section 1.106.
1.36    “Commercialization” or “Commercialize” means the conduct of all activities undertaken after Regulatory Approval relating to the promotion, sales, booking of sales, marketing, detailing, appropriate medical support, and distribution of Licensed Products, including Detailing, advertising, promotional materials, market research, market access (including list price and reimbursement activities), and appropriate medical education and information services, publication, and scientific and medical affairs.
1.37    “Commercialization Plan” has the meaning set forth in Section 7.3.
1.38    “Commercially Reasonable Efforts” means, with respect to an objective of a Party, the reasonable, diligent, good faith efforts of such Party (including the efforts of its Affiliates, and permitted sublicensees), of the type to accomplish such objective as similarly situated (with respect to size, stage of development, and assets) companies in the pharmaceutical industry would normally use to accomplish a similar objective under similar circumstances, it being understood and agreed that, with respect to efforts to be expended in relation to the Compound or any Licensed Product, efforts that are consistent with the efforts applied and commonly used by similarly situated (with respect to size, stage of development, and assets) companies in the pharmaceutical industry to conduct such tasks for a compound or product of similar strategic importance and market potential, and at a similar stage of development taking into account efficacy, safety, Regulatory Authority-approved labeling, the competitiveness of alternative products in the marketplace sold by Third Parties, the patent and other proprietary position of the product, the cost and likelihood of regulatory approval given the regulatory structure involved, the expected and actual profitability of the product, and other relevant factors based on conditions then prevailing, provided, however, Licensee may not take into account [***].  Commercially Reasonable Efforts requires that Licensee, at a minimum, (a) assign responsibility for such obligations to qualified employees, (b) set annual goals and objectives for carrying out such obligations, and (c) allocate resources designed to meet such goals and objectives, in each case, in order to Exploit the Licensed Product as an active and ongoing program, and obtain
    -4-
*** Certain Confidential Information Omitted.

Regulatory Approval for the Exploitation of the Licensed Product in the Licensed Territory in an expeditious manner.  Commercially Reasonable Efforts shall be determined [***].
1.39    “Committee” means the JSC, JDC, JCC, or any subcommittee established by the JSC, JDC or JCC, as applicable.
1.40    “Competitive Product” means any small molecule compound or product that binds specifically to the Target only and inhibits the signaling of the Target with [***].
1.41    “Compound” means the small molecule KRAS G12C inhibitor compound known as adagrasib, having the chemical structure set forth in Exhibit 1.41.
1.42    “Confidential Information” means all information of a confidential or proprietary nature disclosed by or on behalf of a Party to the other Party under this Agreement, which may include any such information related to any scientific, clinical, engineering, manufacturing, marketing, financial, or personnel matters relating to a Party, or related to a Party’s present or future products, sales, suppliers, customers, employees, investors, business plans, Know-How, regulatory filings, data, compounds, research projects, work in progress, future developments or business, in all such cases whether disclosed in oral, written, graphic or electronic form, and whether or not specifically marked as confidential or proprietary, where under the circumstances in which such disclosure was made or given the nature of information disclosed, a reasonable person would consider such information confidential; provided, however, that in any event, the term “Confidential Information” of a Party (as disclosing Party) excludes any particular information that (a) is known by receiving Party (or its Affiliate) at the time of disclosure, and not through a prior disclosure by or on behalf of the disclosing Party, as documented by written records; (b) is or becomes properly in the public domain through no fault of the receiving Party; (c) is subsequently rightfully disclosed to the receiving Party by a Third Party who is not directly or indirectly under an obligation of confidentiality to the disclosing Party, as documented by written records; or (d) is developed by the receiving Party independently of, and without reference to or use of, Confidential Information received from or on behalf of the disclosing Party as documented by written records.  The term “Confidential Information” of a party includes information disclosed as Confidential Information by or on behalf of either Party pursuant to the Confidentiality Agreement.
1.43    “Confidentiality Agreement” means the Mutual Non-Disclosure Agreement between the Mirati and Zai Lab (US) LLC, an Affiliate of Licensee, dated as of [***].
1.44    “Control” or “Controlled” means, with respect to any Know-How, Patent, or other intellectual property right, that the applicable Party (or its Affiliate) owns or has a license (or sublicense) (but without taking into account any rights granted by one Party to the other Party under the terms of this Agreement) to or under such Know-How, Patent, or other intellectual property right and has the legal authority and right to grant access, a license, or a sublicense of or otherwise transfer or grant the right to the other Party as set forth under this Agreement under such

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*** Certain Confidential Information Omitted.

Know-How, Patent, or other intellectual property rights, or to otherwise disclose proprietary or trade secret information to such other Party, in each case without (a) breaching the terms of any agreement with a Third Party, or misappropriating the proprietary or trade secret information of a Third Party or (b) incurring payments to a Third Party, except for (i) [***], and (ii) any Know-How, Patents or other intellectual property right which a Party in-licenses and under which the other Party elects to take a sublicense and agrees to make the associated payments, which will be considered under the Control of such first Party.  
1.45    “Cover,” “Covering” or “Covered” means, with respect to a particular subject matter at issue and the relevant Patent, that, but for a license granted to a Party or a Third Party under a claim included in such Patent, the manufacture, use, sale, offer or sale or importation by such Party of the subject matter at issue would infringe such claim or, in the case of a Patent that is a patent application, would infringe a claim in such patent application if it were to issue as a patent in a particular Region or country.
1.46    “CTA” means: (a) a clinical trial application or any successor application or procedure required to initiate clinical testing of any Licensed Product in humans and (b) all supplements and amendments to any of the foregoing.
1.47    “Detail” or “Detailing” means a face-to-face meeting in an individual or group practice setting (or other method of individual contact if mutually agreed by the Parties), including a hospital setting, between a professional sales representative of the applicable Party, and a health care professional licensed or authorized to prescribe drugs, during which a presentation of a Licensed Product’s attributes is presented in a manner consistent with Applicable Laws and industry standards and with the quality of similar presentations made by a Party’s sales representatives for such Party’s other products, if applicable.  A Detail does not include a reminder or sample drop made by a sales representative or contacts made at conventions, exhibit booths or speaker meetings.
1.48    “Development” or “Develop” means the conduct of all activities that are directed to obtaining or maintaining Regulatory Approval of a Licensed Product, obtaining Regulatory Approval for an additional Indication for a Licensed Product that has previously obtained Regulatory Approval for an Indication, or other lifecycle management of a Licensed Product in the applicable territory, including (a) the conduct of non-clinical studies and clinical trials, and (b) all regulatory activities relating to conducting such clinical trials, all activities relating to preparing and filing applications for such Regulatory Approvals, and to prosecuting such applications through obtaining the Regulatory Approvals.
1.49    “Development Report” has the meaning set forth in Section 5.6(a).
1.50    “Enrollment Completion Date” has the meaning set forth in Section 5.4(b).
1.51    “Enrollment Completion Date Shortfall” has the meaning set forth in Section 5.4(b).

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*** Certain Confidential Information Omitted.

1.52    “Enrollment Period” has the meaning set forth in Section 5.4(b).
1.53    “Excess Enrollment Budget” has the meaning set forth in Section 5.4(b). 
1.54    “Existing Global Studies” has the meaning set forth in Section 5.4(a).
1.55    “Exploit” or “Exploitation” means to make, have made, import, export, use, have used, sell, have sold, offer for sale or otherwise exploit, including to Develop, Commercialize, register, modify, enhance, improve, manufacture, have manufactured, hold, or keep (whether for disposal or otherwise), or otherwise dispose of.
1.56    “Field” means all human uses, including the diagnosis, treatment, palliation or prevention of any Indications, diseases or disorders in humans.
1.57    “First Commercial Sale” means the first sale or other commercial transfer by Licensee or any of its Affiliates or Sublicensees to a Third Party of a Licensed Product in the Licensed Territory for end use after Regulatory Approval has been granted with respect to such Licensed Product in the Licensed Territory; provided, that, the following shall not constitute a First Commercial Sale:  (a) any sale to an Affiliate or Sublicensee (unless the Affiliate or Sublicensee is the last entity in the distribution chain of any Licensed Product), (b) any use of a Licensed Product in Clinical Trials, pre-clinical studies or other research or Development activities, or (c) the disposal or transfer of any Licensed Product for a bona fide charitable purpose, without consideration, including for any compassionate use or as “named patient sales”.
1.58    “FTE” means the equivalent of the work of one (1) person full time for one (1) Calendar Year [***].  [***] 
1.59    “Generic Competition” has the meaning set forth in Section 9.3(c).
1.60    “Generic Product” means, with respect to a Licensed Product in a particular Region in the Licensed Territory, any pharmaceutical product that (a) is marketed for sale by a Third Party not authorized by Licensee (or its Affiliate or Sublicensee), (b) contains the same active pharmaceutical ingredient(s) as such Licensed Product, and (c) is deemed consistent with such Licensed Product in quality and efficacy by the applicable Regulatory Authorities in such Region in the Licensed Territory and that has received all necessary Regulatory Approvals from such Regulatory Authorities in such Region to market and sell such product as a pharmaceutical product for any of the indications included in the approved labeling for such Licensed Product in such Region.
1.61    “Global Commercialization Strategy” has the meaning set forth in Section 7.2(a).
1.62    “Global Study” means a clinical study designed to obtain Regulatory Approvals for the Licensed Products in multiple jurisdictions through the conduct of a Clinical Trial in multiple medical institutions, countries, regions, territories and conducted as part of one (1) unified Clinical Trial or separately but concurrently in accordance with a common Clinical Trial protocol.
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*** Certain Confidential Information Omitted.

1.63    “[***]” has the meaning set forth in Section 5.4(c).
1.64    “ICC” has the meaning set forth in Section 16.2.
1.65    “ICH” means the International Conference on Harmonization (of Technical Requirements for Registration of Pharmaceuticals for Human Use).
1.66    “Incremental Withholding” has the meaning set forth in Section 10.3(b).
1.67    “IND” means an investigational new drug application or equivalent application filed with the applicable Regulatory Authority in the Licensed Territory, which application is required to commence or conduct particular human clinical trial(s) in the Licensed Territory.
1.68    “Indemnified Party” means a Mirati Indemnitee or Licensee Indemnitee (as applicable) that seeks indemnification from the applicable Party pursuant to the terms of Section 14.3.
1.69    “Indemnifying Party” has the meaning set forth in Section 14.3.
1.70    “Indication” means a separate and distinct disease or condition, sign or symptom of a disease or medical condition, or distinct tissue of origin.  For clarity, different lines of treatment or the treatment of separate stages or forms of the same disease or medical condition shall not constitute separate Indications.
1.71    “Initiation” or “Initiate” means, with respect to a clinical trial, the enrollment of the first human subject satisfying the enrollment criteria in such clinical trial.
1.72    “Invention” means all inventions, improvements, and Know-How conceived, discovered, developed or otherwise made, as necessary to establish authorship (in case of publication and other copyrightable work), inventorship (in case of inventions, whether patentable or not) or ownership under Applicable Law, whether or not patentable, and any and all Patent and other intellectual property rights thereto.
1.73    “IRB” has the meaning set forth in Section 5.1(d). 
1.74    “JCC” has the meaning set forth in Section 3.3.
1.75    “JDC” has the meaning set forth in Section 3.2.
1.76    “Joint Global Study” has the meaning set forth in Section 5.4(b).
1.77    “Joint Inventions” has the meaning set forth in Section 11.1(b)(iii).
1.78    “Joint Patents” has the meaning set forth in Section 11.1(b)(iii).
1.79    “JSC” has the meaning set forth in Section 3.1.
1.80    “Know-How” means all proprietary business, scientific or technical results, data and other information, in any tangible or intangible form whatsoever, including techniques, 
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*** Certain Confidential Information Omitted.

technology, trade secrets, inventions (whether patentable or not), know-how, processes, methods, data, research data, clinical pharmacology data, chemistry-manufacture-controls data (including analytical and quality control data and stability data), Clinical Data and Manufacturing Data, pre-clinical data, regulatory documents, Regulatory Filings, compositions of matter, cells, cell lines, assays, animal models and other physical, biological, or chemical material, and all other scientific, clinical, regulatory, marketing, financial, and commercial information.
1.81    “Knowledge” or “Known to” means, with respect to a particular representation or other statement of Party set forth in this Agreement, the actual knowledge of the chief executive officer or any executive officer (as defined for purposes of Section 14 of the Securities Exchange Act of 1934, as amended) of such Party after reasonable inquiry of the relevant persons who have responsibilities related to the subject matter of the applicable representation or other statement.
1.82    “KRAS Variant” means [***].
1.83    “Licensed Know-How” means all Know-How that (a) Mirati or its Affiliates Controls as of the Effective Date or during the Term, and (b) directly relates to the Compound or any Licensed Product (including any Combined Therapy), or any uses thereof, and is necessary or reasonably useful to Exploit any Compound or Licensed Product in the Field in the Licensed Territory.  For clarity, Licensed Know-How includes all Product Inventions, Licensed Territory Data and Results, and subject to the initiation of the Manufacturing Technology Transfer pursuant to Section 8.5, Manufacturing Data, but excludes all Know-How that does not relate to the Compound and relates to another proprietary compound of Mirati or its Affiliates.
1.84    “Licensed Patents” means all Patents in the Licensed Territory that (a) Mirati or its Affiliates Controls as of the Effective Date or during the Term, and (b) that are necessary or reasonably useful to Exploit the Compound or any Licensed Products in the Field in the Licensed Territory, but excluding Mirati’s interest in any Joint Patents, and excluding all Patents to the extent of claims in such Patents that Cover another proprietary compound of Mirati or its Affiliates and do not Cover the Compound.  For purposes of clarity, the Licensed Patents shall include as of the Effective Date the Patents set forth on Exhibit 1.84 attached hereto.  Exhibit 1.84 shall be periodically updated during the Term to add any Licensed Patents described in this definition of which either Party becomes aware.  For clarity, any Patent that is a Licensed Patent (that is, it meets the definition in this Section 1.84) shall be considered a Licensed Patent for purposes of this Agreement even if such Patent is not listed on Exhibit 1.84.  For clarity, Licensed Patents includes all Product Patents.
1.85    “Licensed Product” means any product that constitutes, contains, incorporates or comprises the Compound (whether alone or as a combination with other active ingredient(s)), in any form, presentation, or formulation (including manner of delivery and dosage).
1.86    “Licensed Technology” means the Licensed Patents and Licensed Know-How.
1.87    “Licensed Territory” means PRC, Hong Kong, Macau and Taiwan, each shall be deemed a “Region” under this Agreement.

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*** Certain Confidential Information Omitted.

1.88    “Licensed Territory Data and Results” means all results, data, and analyses thereof, including non-clinical data and Clinical Data, generated by or on behalf of Licensee or any of its Affiliates or Sublicensees during the Term with respect to the Development of the Compound or any Licensed Product (and is not related to another active pharmaceutical ingredient) pursuant to this Agreement, including Joint Global Studies and Local Studies, but for clarity excluding [***].
1.89    “Licensee Commercial Supply Agreement” has the meaning set forth in Section 8.6.
1.90    “Licensee Commercialization FTEs” has the meaning set forth in Section 7.4(b)(i).
1.91    “Licensee Indemnitee” has the meaning set forth in Section 14.2.
1.92    “Licensee Know-How” means all Know-How, other than Product Inventions, Licensed Territory Data and Results and Manufacturing Data, that (a) Licensee or any of its Affiliates Controls as of the Effective Date and during the Term, (b) directly relates to the Compound or any Licensed Product (including any Combined Therapy), or the manufacture or any uses thereof, and (c) is necessary or reasonably useful to Exploit the Compound or any Licensed Product in the Field.  For clarity, Licensee Know-How shall exclude all Know-How that does not relate to the Compound and relates to another proprietary compound of Licensee or its Affiliates.
1.93    “Licensee Patents” means all Patents, other than Licensed Patents, Joint Patents and Product Patents, that (a) Licensee or any of its Affiliates Controls as of the Effective Date and during the Term, (b) relates to the Compound or Licensed Product, or the manufacture or any uses thereof, or claims or is based on any Licensee Technology, and (c) are necessary or reasonably useful for to Exploit the Compound or any Licensed Product in the Field in any country, Region or jurisdiction.  For clarity, Licensee Patents shall exclude Licensee’s interest in any Joint Patents, and exclude all Patents to the extent of claims in such Patents that Cover another proprietary compound of Licensee or its Affiliates and do not Cover the Compound.
1.94    “Licensee Technology” means Licensee Know-How, Licensee Patents, and Licensee’s rights under any Joint Inventions and Joint Patents.
1.95    “Local Study” means any Clinical Trial for any Licensed Product in the Field and which (a) Licensee determines to conduct and is conducted by or on behalf of Licensee in the Licensed Territory, and (b) does not include clinical sites in any country or jurisdiction outside the Licensed Territory.
1.96    “Losses” has the meaning set forth in Section 14.1.
1.97    “Manufacturing Cost” means the actual, fully-burdened cost to manufacture Compound or Licensed Product, which means: (a) in the case of Compound or Licensed Product (and related services) acquired from Third Parties, payments made to such Third Parties plus any internal and out-of-pocket costs, if any, incurred by the supplying Party in connection with providing the Compound or Licensed Product to the purchasing Party, including any [***];
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[***] and (b) in the case of manufacturing activities performed by the supplying Party or its Affiliates to manufacture Compound or Licensed Product, the actual unit costs of manufacture, which shall consist of [***]. 
1.98    “Manufacturing Data” means all chemistry-manufacture-controls (“CMC”) data (including analytical data, test data, quality control data and stability data) and any other data relating directly to manufacture of the Compound or any Licensed Product that are generated by or on behalf of either Party, or jointly by the Parties, in connection with the performance of this Agreement, including the Development or Commercialization of the Compound and any Licensed Products.
1.99    “Manufacturing Technology Transfer” has the meaning set forth in Section 8.5.
1.100    “Minimum Enrollment Threshold” has the meaning set forth in Section 5.4(b).
1.101    “Mirati Commercial Supply Agreement” has the meaning set forth in Section 8.2.
1.102    “Mirati Indemnitee” has the meaning set forth in Section 14.1.
1.103    “Mirati Invention Patents” means any Patents that contain one or more claims that Cover Mirati Inventions.
1.104    “Mirati Inventions” means any Inventions that are conceived, discovered, developed or otherwise made by or on behalf of Mirati or its Affiliates during the Term, and all Product Inventions.
1.105    “[***] Enrollment Allocation” has the meaning set forth in Section 3.2(d).
1.106    “Net Sales” means the gross amounts invoiced, billed or otherwise charged by Licensee and its Affiliates or Sublicensees in the Licensed Territory (each, a “Selling Party”), for sales or other dispositions for value of Licensed Products (for clarity, including Combined Therapy) to Third Parties that are not Sublicensees of the Selling Party, less the following

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deductions to the extent actually incurred, or accrued, or otherwise specifically allocated with respect to such sale of the Licensed Product by the Selling Party, using U.S. GAAP:
[***] 
In no event shall any particular amount of deduction identified above be deducted more than once in calculating Net Sales (i.e., no “double counting” of deductions).  Sales of Licensed Product among Licensee and its Affiliates and Sublicensees for resale shall be excluded from the computation of Net Sales, but the subsequent resale of such Licensed Product to a Third Party that is not a Sublicensee shall be included within the computation of Net Sales.  Notwithstanding anything to the contrary herein, sale, disposal, or use of Licensed Product without consideration for:  [***] shall not be deemed a sale hereunder.
[***] 
If any Licensed Product is sold together with one or more other pharmaceutical products (each containing an active ingredient other than the Compound) that are either (x) packaged together for sale or shipment as a single unit or sold at a single price, or (y) marketed or sold
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collectively as a single product, or (z) marketed or sold where the Licensed Product is intended to be used in a Combination Regimen (as defined below and (x) through (z) collectively, “Combined Therapy”), then, the Net Sales from the Combined Therapy, for the purposes of determining royalty payments, shall be determined by multiplying the Net Sales (as determined above) of the Combined Therapy, during the applicable royalty reporting period, by the fraction, A/(A+B), where A is the average sale price of the Licensed Product when sold separately in finished form and B is the average sale price of the other pharmaceutical products included in the Combined Therapy when sold separately in finished form, in each case during the applicable royalty reporting period or, if sales of both the Licensed Product and the other pharmaceutical products do not occur in such period, then in the most recent royalty reporting period in which sales of both occurred.  In the event that such average sale price cannot be determined for both the Licensed Product and all other pharmaceutical products included in such Combined Therapy, Net Sales for the purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combined Therapy by the fraction of C/(C+D) where C is the fair market value of the Licensed Product and D is the fair market value of all other pharmaceutical products included in the Combined Therapy.  In such event, the Parties shall negotiate in good faith to determine the respective fair market values of the Licensed Product and all other pharmaceutical products included in the Combined Therapy based on the relative value contributed by each component.  If the Parties are unable to agree on the respective fair market values, the dispute will be resolved in accordance with Article 16.  As used herein, “Combination Regimen” means, with respect to a given Licensed Product, the intended use of such Licensed Product for an Indication together with one or more other pharmaceutical products as two or more entities of active ingredients in a combination therapy, including concomitant or sequential therapy for commercial sale for such Indication as set forth in the approved label for such Licensed Product. 
1.107    “NMPA” means the National Medical Products Administration, formerly known as the China Food and Drug Administration, and local or provincial counterparts thereto, and any successor agency(ies) or authority thereto having substantially the same function.
1.108    “Non-Prosecuting Party” has the meaning set forth in Section 11.2(c).
1.109    “Patent Challenge” has the meaning set forth in Section 15.2(d).
1.110    “Patents” means (a) all patents, certificates of invention, applications for certificates of invention, priority patent filings, and patent applications, and (b) any renewal, division, continuation (in whole or in part), or request for continued examination of any of such patents, certificates of invention, applications for certificates of invention and patent applications, and any all patents or certificates of invention issuing thereon, and any and all reissues, reexaminations, extensions, divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and additions of or to any of the foregoing.
1.111    “PD-1 Inhibitor” means any compound or product that directly inhibits the receptor known as Programmed Cell Death protein 1 (“PD-1”).
1.112    “PD-L1 Inhibitor” means any compound or product that directly inhibits the ligand known as Programmed Cell Death ligand 1 (“PD-L1”).
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1.113    “Person” means any natural person, corporation, general partnership, limited partnership, joint venture, proprietorship or other business organization or a governmental authority.
1.114    “Pharmacovigilance Agreement” has the meaning set forth in Section 6.5(d).
1.115    “Pivotal Clinical Trial” means, with respect to a Licensed Product, (a) a phase 3 Clinical Trial or (b) any other clinical trial that is intended (as of the time the study is initiated) to obtain the results and data to support (without the need to conduct any additional clinical trial) the filing of an application for Regulatory Approval for such product.
1.116    “PRC” means People’s Republic of China, which for purposes of this Agreement, excludes Hong Kong, Macau, and Taiwan.
1.117    “Product Infringement” has the meaning set forth in Section 11.3(a).
1.118    “Product Inventions” means any Invention that (a) relates to [***] or their manufacture or use, or claim or is based on [***] and is not related to [***]; and (b) is conceived, discovered, developed, invented, or generated as a result of a Party exercising its rights or carrying out its obligations under this Agreement, whether directly or via its Affiliates, sublicensees, agents or contractors.
1.119    “Product Patent” means any Patent that contains one or more claims that Cover solely Product Inventions.
1.120    “Prosecuting Party” has the meaning set forth in Section 11.2(c).
1.121    “Public Official” means (a) any officer, employee (including physicians, hospital administrators, or other healthcare professionals), agent, representative, department, agency, de facto official, representative, corporate entity, instrumentality, or subdivision of any government, military, or international organization, including, but not limited to, any ministry or department of health or any state-owned or affiliated company or hospital, or (b) any candidate for political office, any political party, or any official of a political party.
1.122    “Quality Agreement” has the meaning set forth in Section 8.7.
1.123    “Reference Data” means all data generated relating to the Compound or Licensed Products in the Field, including preclinical data, Clinical Data, safety data and CMC data contained in or referenced in any Regulatory Filings pertaining to the Licensed Product in the Field submitted by or on behalf of a Party, its Affiliates, or licensees, and all corresponding documentation Controlled by such party as of the Effective Date or at any time during the Term.
1.124    “Region” has the meaning set forth in Section 1.87.
1.125    “Regional Mark” has the meaning set forth in Section 11.6.
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1.126    “Regulatory Approval” means all approvals, licenses, registrations, or authorizations of each applicable country, Region, federal, supranational, state, or local Regulatory Authority (including agency, department, bureau, or other government entity) that are necessary for the manufacture, use, storage, import, transport, and sale of Compound or Licensed Product (as applicable) in a given jurisdiction, but excluding any pricing approvals and reimbursement approvals.
1.127    “Regulatory Authority” means any national, provincial, or local regulatory agency, department, bureau, or other government entity, that has responsibility in its applicable jurisdiction over the research, Development, manufacture, or Commercialization of the Compound or any Licensed Product in a given jurisdiction, including the NMPA, and any corresponding national or regional regulatory authorities.
1.128    “Regulatory Exclusivity” means any exclusivity (including for clarity new chemical entity exclusivity, new use or Indication exclusivity, new formulation exclusivity, orphan drug exclusivity, pediatric exclusivity, or any applicable data exclusivity) conferred by the Regulatory Authority in a particular country, Region, or jurisdiction in the Licensed Territory which confers an exclusive commercialization period during which Licensee, its Affiliates or Sublicensees have the exclusive right to market and sell a Licensed Product in such country, Region or jurisdiction, other than issued patent exclusivity.
1.129    “Regulatory Filing” means, all applications, filings, submissions, approvals, licenses, registrations, permits, notifications, and authorizations (or waivers) with respect to the testing, Development, manufacture, or Commercialization of the Compound or any Licensed Product (as applicable) made to or received from any Regulatory Authority in a given country or Region, including any INDs or CTAs.
1.130    “Regulatory Meeting” has the meaning set forth in Section 6.4.
1.131    “Regulatory Milestone Event” has the meaning set forth in Section 9.2(b).
1.132    “Royalty Term” means, with respect to a Licensed Product sold in a Region in the Licensed Territory, the period commencing with the First Commercial Sale of such Licensed Product in such Region and ending upon the latest to occur of:  (i) the date of expiration of the last Valid Claim Covering such Licensed Product or the Compound in such Region; (ii) the date that is ten (10) years after the date of such First Commercial Sale in such Region; and (iii) the expiration date of any Regulatory Exclusivity for such Licensed Product in such Region.
1.133    “Sales Milestone Event” has the meaning set forth in Section 9.2(c).
1.134    “Securities Regulators” has the meaning set forth in Section 12.5.
1.135    “Securitization Transaction” has the meaning set forth in Section 17.5(b).
1.136    “Segregate” shall mean, with respect to a particular Competitive Product, to use Commercially Reasonable Efforts to segregate the research, development and commercialization activities relating to such Competitive Product from the Development and Commercialization activities relating to the Compound or any Licensed Product under this Agreement, including
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putting in place appropriate firewalls that are reasonably designed to ensure that: (a) no personnel involved in performing the research, development or commercialization of such Competitive Product have access to non-public plans, non-public information or any other relevant Confidential Information of the applicable Party relating to the Development or Commercialization of the Compound or any Licensed Product under this Agreement; and (b) no personnel involved in performing the Development or Commercialization of the Compound or any Licensed Product under this Agreement have access to non-public plans or non-public information relating to the research, development or commercialization of such Competitive Product; provided, that, in either case of (a) or (b), senior management personnel may review and evaluate plans and information regarding the research, development and commercialization of such Competitive Product solely in connection with monitoring the progress of products including portfolio decision-making among product opportunities.
1.137    “Selling Party” has the meaning set forth in Section 1.106.
1.138    “Sell-Off Period” has the meaning set forth in Section 15.3(j).
1.139    “Sublicense Agreement” has the meaning set forth in Section 2.2.
1.140    “Sublicensee” means a Third Party to whom Licensee (or any Affiliate of Licensee) has granted a sublicense in accordance with Section 2.2.
1.141    “Target” means the protein target listed on Exhibit 1.141 attached hereto.
1.142    “Term” has the meaning set forth in Section 15.1.
1.143    “Third Party” means any entity other than Mirati, Licensee, or an Affiliate of Mirati or Licensee.
1.144    “[***] Decision Matter” means any disputed matter that involves any activities of Licensee or any of its Affiliates or Sublicensees with respect to [***] that would reasonably be expected [***].
1.145    “Upstream Agreement” means any and all agreements between Mirati or any of its Affiliates, on the one hand, and any Third Party, on the other hand, pursuant to which Mirati has (a) in-licensed any material Patent or Know-How Controlled by such Third Party that are included as part of the Licensed Patents or Licensed Know-How or (b) agreed to provisions that would require Licensee to make any payments (including royalties) to any Third Party or to undertake or observe any restrictions or obligations with respect to the Exploitation of the Compound or any Licensed Products in the Field [***].  Exhibit 1.145 sets forth a list of all Upstream Agreements as of the Effective Date.  
1.146    “U.S. GAAP” means United States generally accepted accounting principles, which principles are currently used at the relevant time and consistently applied by the applicable Party.

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1.147    “Valid Claim” means, with respect to a particular Region, a claim within (a) an unexpired and issued patent (or any patent term extensions or supplementary protection certificates thereof) included within the Licensed Patents that has not been irretrievably lapsed or been abandoned, disclaimed, permanently revoked, dedicated to the public or held invalid, unenforceable or not patentable by a final non-appealable decision of a court of competent jurisdiction or government agency, or (b) a pending patent application included within the Licensed Patents being prosecuted in good faith and has been pending for no more than seven (7) years from the earliest priority date; provided that, if a claim ceases to be a Valid Claim by reason of foregoing subclause (b), then such claim will again be deemed a Valid Claim in the event such claim subsequently issues prior to the end of the Royalty Term in such Region.
1.148    “Withholding Action” has the meaning set forth in Section 10.3(b).
2.    GRANT OF LICENSES
2.1    License Grants to Licensee.  Subject to the terms and conditions of this Agreement, Mirati hereby grants to Licensee during the Term the following licenses:
(a)    an exclusive (even as to Mirati, but subject to Mirati’s retained rights as described in Section 2.3 below), royalty-bearing license, with the right to grant sublicenses as provided in Section 2.2, under the Licensed Technology and Mirati’s rights under any Joint Inventions and Joint Patents, to sell, offer for sale and otherwise Commercialize any Licensed Products in the Field in the Licensed Territory; provided that such license to Commercialize the Licensed Products in the Field in the Licensed Territory shall be subject to Mirati’s rights to Co-Commercialize pursuant to Section 7.4 during any applicable Co-Commercialization Term; and
(b)    a non-exclusive, royalty-bearing license, with the right to grant sublicenses as provided in Section 2.2, under the Licensed Technology and Mirati’s rights under any Joint Inventions and Joint Patents, to research, Develop, use, import, and subject to the initiation of the Manufacturing Technology Transfer pursuant to Section 8.5, make and have made the Compound and any Licensed Products in the Field in the Licensed Territory.
2.2    Sublicenses.  Licensee shall have the right to grant sublicenses under the rights and licenses granted under Section 2.1 through multiple tiers to (a) any Affiliates (for as long as such Person remains an Affiliate) without Mirati’s prior written consent but upon prompt written notice to Mirati, and (b) any Third Party with respect to the Development, manufacture or Commercialization of the Compound or any Licensed Products in the Field and in the Licensed Territory, in each case with prior written consent of Mirati (which shall not be unreasonably withheld, delayed or conditioned).  Any and all such sublicenses shall be granted and governed by written agreements (each, a “Sublicense Agreement”) and shall be subject to, and consistent with, the terms and conditions of this Agreement and shall include a provision that permits Licensee to terminate the Sublicense Agreement if such Sublicensee (or an Affiliate of such Sublicensee) undertakes a Patent Challenge with respect to any Licensed Patents under which the Sublicensee is sublicensed or breaches the relevant terms of this Agreement.  Licensee shall be and remain responsible for ensuring its Sublicensees’ compliance with this Agreement and shall be and remain liable for any breaches hereof by any such Sublicensee as though the same were a breach by Licensee, [***].
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[***] Licensee shall provide Mirati with a copy of each such Sublicense Agreement granted by Licensee to an Affiliate or Sublicensee (redacted with respect to financial terms and sensitive commercial or technical information to the extent not necessary for Mirati to confirm Licensee’s compliance with the terms of this Agreement) within [***] of executing such Sublicense Agreement, including an English translation, if applicable.  Licensee shall, in each Sublicense Agreement, require its Sublicensee to provide the following to Mirati (or directly to Licensee): (i) the assignment and transfer of ownership and possession of, or a right of reference to, all Regulatory Filings and Regulatory Approvals Controlled by such Sublicensee, and (ii) the assignment of, or a freely sublicensable (through multiple tiers) exclusive license to, all intellectual property (including Know-How and Patents) Controlled by such Sublicensee that Covers the Compound and any Licensed Product or its respective use, manufacture, sale, or importation and was conceived, discovered, developed or otherwise made by or on behalf of such Sublicensee during the exercise of its rights or fulfillment of its obligations pursuant to such Sublicense Agreement.  For clarity, in the case of any subcontractor, this Section 2.2 shall not apply but Section 2.8 shall apply.
2.3    Retained Rights.  Notwithstanding anything herein to the contrary, any rights not expressly granted to Licensee by Mirati under this Agreement are hereby retained by Mirati, including the right (on behalf of itself and its licensees and sublicensees other than Licensee (subject to Section 2.3(d))) under the Licensed Technology and Mirati’s rights under any Joint Inventions and Joint Patents:
(a)    to exercise its rights, and perform its obligations, under this Agreement, whether directly or through one or more Affiliates, licensees or subcontractors;
(b)    to make and have made (itself or through its Affiliates and licensees) the Compound and any Licensed Product anywhere in the world including in the Licensed Territory solely for (i) use, Development or Commercialization of the Compound and any Licensed Product outside the Licensed Territory, or (ii) use, Development or Commercialization of the Compound and any Licensed Product by or on behalf of Licensee or its Affiliates or Sublicensees in the Licensed Territory;
(c)    to conduct Development of the Compound and any Licensed Product [***]; 
(d)    following Mirati’s exercise of the Co-Commercialization Option for a Licensed Product in a Region and during the applicable Co-Commercialization Term, to Co-Commercialize any Licensed Product in such Region with the right to grant sublicenses through multiple tiers to (i) Mirati’s Affiliates (for as long as such Person remains an Affiliate) without Licensee’s prior written consent but upon prompt written notice to Licensee, (ii)[***] 

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[***]; and 
(e)    to practice and grant licenses under the Licensed Know-How and Licensed Patents outside of the scope of the licenses granted to Licensee in Section 2.1.
2.4    License Grant to Mirati.  Licensee hereby grants to Mirati:
(a)    an exclusive, perpetual, royalty-free and fully-paid license, with the right to grant sublicenses through multiple tiers, under Licensee Technology, to Exploit the Compound and any Licensed Product in the Field outside the Licensed Territory; and
(b)    a non-exclusive, perpetual, royalty-free and fully-paid license, with the right to sublicense through multiple tiers, under the Licensee Technology, to Develop, make and have made, and use the Compound and the Licensed Products in the Licensed Territory (i) solely for use, Development or Commercialization outside of the Licensed Territory, (ii) solely to supply Licensee in the conduct of Development or Commercialization activities in the Licensed Territory, and (iii) to otherwise exercise its rights retained under Section 2.3; and
(c)    following Mirati’s exercise of the Co-Commercialization Option for a Licensed Product in a Region and during the applicable Co-Commercialization Term, a co-exclusive (with Licensee) license, with the right to grant sublicenses through multiple tiers to Mirati’s Affiliates (for as long as such Person remains an Affiliate) which shall be subject to Licensee’s prior written consent, not to be unreasonably withheld, under the Licensee Technology, to Co-Commercialize such Licensed Product in the Field in the Licensed Territory.
2.5    Upstream Agreements.  All licenses and other rights granted to Licensee under this Agreement (including any sublicense rights) are subject to the rights and obligations of Mirati under the Upstream Agreements including the rights reserved to Third Parties, and grant back licenses set forth therein.  Licensee is subject to and will comply with, and shall require its Affiliates and Sublicensees to comply with, all applicable provisions of the Upstream Agreements, [***]  Licensee will perform and take such actions as may be reasonably required to allow Mirati to comply with its obligations under the Upstream Agreements, including obligations relating to sublicensing, patent matters, additional licensed patents and know-how, confidentiality, reporting, audit rights, indemnification and diligence, in each case, to the extent that Licensee is provided a copy of the Upstream Agreements.  [***] 

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[***].  [***]  The Parties will amend Exhibit 1.145 from time to time as necessary to include all Upstream Agreements.
2.6    No Implied Licenses; Negative Covenants.
(a)    No right or license under any Patents or other intellectual property rights of a Party is granted or shall be granted by implication to the other Party, and each Party agrees not to practice any Patents or other intellectual property rights of the other Party except pursuant to the licenses and other rights expressly granted in this Agreement or any other written agreement between the Parties.  All such rights or licenses are or shall be granted only as expressly provided in the terms of this Agreement.  Without limiting the foregoing, Mirati hereby acknowledges and agrees that no right or license is granted to Mirati by Licensee under this Agreement under any Patents or Know-How Controlled by Licensee that Covers or relates to any proprietary compound of Licensee.  Without limiting the foregoing, and notwithstanding any other provision of this Agreement, Licensee hereby acknowledges and agrees that no right or license is granted to Licensee by Mirati under this Agreement under any Patents or Know-How owned or controlled by Mirati that Covers or relates to any proprietary compound of Mirati other than the Compound.
(b)    Licensee covenants that it, and its Affiliates and Sublicensees, will Develop, manufacture, and Commercialize the Licensed Products solely within the Licensed Territory for use in the Field, pursuant to and in accordance with the rights and licenses granted to it under and the terms and conditions of this Agreement, and will not use or practice Licensed Patents or Licensed Know-How licensed to it by Mirati except as expressly permitted in scope of the license granted to Licensee in Section 2.1.  Licensee agrees and acknowledges that it has not been granted any rights (express or implied) to any Licensed Patents, Licensed Know-How, or Licensed Products under this Agreement outside of the Field or outside of the Licensed Territory, and accordingly agrees that during the Term it will not (i) Commercialize any Licensed Product outside of the Field or outside of the Licensed Territory or within the Licensed Territory for sale by or for Licensee outside of the Field or outside of the Licensed Territory, or (ii) provide any Licensed Product to any Third Party, Sublicensee or Affiliate if Licensee has actual knowledge or reasonably believes that such Third Party, Sublicensee or Affiliate, either directly or indirectly, is selling, or intends to sell such Licensed Product outside of the Field or outside of the Licensed Territory.
(c)    Mirati covenants that, except as otherwise expressly set forth or permitted in this Agreement (including under the retained rights in Section 2.3), Mirati, and its Affiliates and sublicensees, will Commercialize the Licensed Products solely outside the Licensed Territory.  Mirati and its Affiliates and sublicensees will not use or practice any Licensee Technology licensed to it by Licensee except as expressly permitted in this Agreement.  Mirati agrees and acknowledges that except as otherwise expressly set forth or permitted in this Agreement, it has not been granted any rights (express or implied) to any Licensee Technology, and accordingly agrees that during the Term it will not (i) Commercialize any Licensed Product in the Licensed Territory or outside the Licensed Territory intended for sale by or for Mirati inside of the Licensed Territory, or (ii) provide any Licensed Product to any Third Party, sublicensee or Affiliate if Mirati has actual
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knowledge or reasonably believes that such Third Party, sublicensee or Affiliate, either directly or indirectly, is selling, or intends to sell, such Licensed Product in the Licensed Territory.
2.7    Exclusivity.
(a)    During the Term, except as provided in Section 17.5(c), Licensee shall not, and shall cause its Affiliates and Sublicensees to not, directly or indirectly for or through any Third Party, including by grant of any rights to any Third Party [***]. 
(b)    During the Term, except as provided in Section 17.5(c), Mirati shall not, and shall cause its Affiliates and licensees to not, directly or indirectly for or through any Third Party, including any grant of any rights to any Third Party, to [***]. 
2.8    Subcontracting.  Subject to the terms of this Section 2.8, each Party may engage Third Party subcontractors to perform its obligations under this Agreement; [***].  In all cases, each Party will ensure that (a) such Party remains responsible for the work allocated to such subcontractors to the same extent it would if it had done such work itself, (b) the subcontractor undertakes in writing obligations of confidentiality and non-use regarding Confidential Information that are at least as protective as those undertaken by the Parties with respect to Confidential Information pursuant to Article 12 hereof, and (c) the subcontractor undertakes in writing to assign all intellectual property with respect to the Compound or any Licensed Product, all results and all other intellectual property, in each case arising from the course of performing such subcontracted activities, so that the Party engaging such Third Party subcontractor will Control such intellectual property.
3.    GOVERNANCE
3.1    Joint Steering Committee.  Within [***] of the Effective Date or a period otherwise mutually agreed to by the Parties, the Parties will form a joint steering committee (the “JSC”) to coordinate, oversee and provide strategic oversight of the activities under this Agreement and to facilitate communication between the Parties and provide a forum for the Parties to review matters pertaining to the Development, manufacture, and Commercialization of Licensed Product in the Licensed Territory.  Except as otherwise provided herein, the role and responsibilities of the JSC are:
(a)    to review and discuss the Development, manufacture and Commercialization activities of the Compound and any Licensed Products in the Licensed Territory and any other ongoing activities under this Agreement;
(b)    to facilitate the flow of information between the Parties with respect to the Development, manufacture and Commercialization of the Compound and any Licensed Products;

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(c)    to establish such additional committees as it deems necessary to achieve the objectives and intent of this Agreement;
(d)    to oversee the activities of the JDC, JCC and any other Committee and provide guidance thereto;
(e)    to attempt to resolve issues presented to it by, and disputes within, the JDC, JCC and any other Committee; and
(f)    perform such other functions as are set forth herein or as the Parties may mutually agree in writing, except where in conflict with any provision of this Agreement.
3.2    Joint Development Committee.  Within [***] of the Effective Date or a period otherwise mutually agreed to by the Parties, the Parties will form a joint development and regulatory committee (the “JDC”) to coordinate the overall strategy, plans, and responsibilities of the Parties for Development of the Compound and any Licensed Products in the Licensed Territory and outside the Licensed Territory, to facilitate communication between the Parties and provide a forum for the Parties to review Development and regulatory matters pertaining to the Licensed Products in the Licensed Territory and outside the Licensed Territory, and to coordinate such Development activities in the Licensed Territory with Licensed Product development work outside the Licensed Territory.  Except as otherwise provided herein, the role and responsibilities of the JDC are:
(a)    to oversee strategy, progress, and results with respect to the Development of the Licensed Product in the Field in the Licensed Territory;
(b)    to review and discuss any material Development activities, including any Clinical Trials, with respect to any Licensed Product in the Field both in the Licensed Territory and outside the Licensed Territory;
(c)    to review and approve the initial Clinical Development Plan and any material amendments or revisions to the Clinical Development Plan;
(d)     to develop (but not approve): (i) for each Existing Global Study, the [***] enrollment allocation (the [***] Enrollment Allocation”) for each [***] in the Enrollment Period, and (ii) for each additional Global Study deemed a Joint Global Study (1) the Minimum Enrollment Threshold, and (2) if the Parties agree to include an obligation for Licensee to meet [***] Enrollment Allocations, the [***] Enrollment Allocation.  Each [***] Enrollment Allocation shall be mutually agreed upon or amended in writing by the Parties, and for each additional Global Study deemed a Joint Global Study, the applicable Minimum Enrollment Threshold shall be mutually agreed upon in writing by the Parties;
(e)    to review and coordinate forecasting and supply of Licensee’s expected requirements of Licensed Product for Development purposes;
(f)    to review all material Clinical Data obtained from Clinical Trials of the Compound and any Licensed Product in the Licensed Territory;
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(g)    to review all material Clinical Data for any Joint Global Studies within the Clinical Development Plan;  
(h)    to review all material Reference Data Controlled by a Party and generated or produced in connection with any Development activities conducted for any Licensed Product in the Licensed Territory and outside the Licensed Territory; 
(i)    to provide a forum for discussion of and coordinate interactions with Regulatory Authorities in the Licensed Territory and outside the Licensed Territory;
(j)    to review any material Regulatory Filings with respect to the Licensed Products to be submitted to any Regulatory Authority in the Licensed Territory;
(k)    to review and discuss any proposals from Mirati regarding any Additional Global Studies;
(l)    to discuss and provide a forum for the exchange of pharmacovigilance and safety matters prior to commercial launch of the Licensed Product;
(m)    to provide a forum for discussion of and coordinate decisions related to research and Development of new Indications, new Licensed Product formulations, and Combined Therapy Development; and
(n)    to perform such other functions as the Parties may allocate to JDC in writing, where such functions are appropriate to further the purposes of this Agreement with respect to the Development of Licensed Products in the Licensed Territory.
3.3    Joint Commercialization Committee.  At least [***] prior to the first anticipated Regulatory Approval of any Licensed Product in the Licensed Territory, the Parties will form a joint commercialization committee (the “JCC”) to coordinate the overall strategy, plans, and responsibilities of the Parties, facilitate communication between the Parties and provide a forum for the Parties to review matters pertaining to Commercialization of Licensed Products in the Field in the Licensed Territory.  Except as otherwise provided herein, the role and responsibilities of the JCC will be to:
(a)    discuss strategy, progress, and results with respect to Licensed Product Commercialization in the Field in the Licensed Territory;
(b)    review the Commercialization Plan and oversee implementation thereof;
(c)    review the date of anticipated First Commercial Sale of such Licensed Product in the PRC provided by Licensee to the JCC;
(d)    if Mirati exercises the Co-Commercialization Option, (i) review, comment and approve [***], (ii) review and approve the amount [***] shall pay to [***] for Co-Commercialization activities performed by [***] in addition to [***], and (iii) review and oversee the coordination of Co-Commercializing activities to be conducted by the Parties;
(e)    solely to the extent that Mirati is supplying Licensee with Compound or Licensed Product for Commercialization purposes, review and coordinate forecasting and supply 
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of Licensee’s expected requirements of Compound and Licensed Product for such Commercialization purposes;
(f)    discuss and provide a forum for the exchange of pharmacovigilance and safety matters following commercial launch of Licensed Product;
(g)    perform such other functions as the Parties may deem appropriate to further the purposes of this Agreement with respect to the Commercialization of Licensed Product in the Licensed Territory.
3.4    Committee Composition.  Each Committee will be composed of [***] members appointed by Mirati and [***] members appointed by Licensee, each of which members shall be senior level employees with decision-making authority and significant experience in the relevant business responsibilities of the Committee.  Each Party will notify the other Party of its initial JSC and JDC member nominations within [***] after the Effective Date.  The Parties, through the applicable Committee, may mutually agree to change the number of Committee members.  Each Party may change its Committee members at any time by written notice to the other Party.  Any member of a Committee may designate a substitute to attend and perform the functions of that member at any particular Committee meeting.  Each Party may invite a reasonable number of non-member, non-voting representatives of such Party to attend any Committee meeting; provided that if either Party intends to have any Third Party (including any consultant) attend such a meeting, such Third Party shall be bound by confidentiality and non-use obligations consistent with the terms of this Agreement.
3.5    Meetings.  Each Committee will hold meetings at such frequency as determined by the Committee members, but no less than [***], unless otherwise reasonably agreed to by the Parties.  The first JSC and JDC meeting shall each be held within [***] after the Effective Date.  The first JCC meeting shall be held within [***] after the JCC’s formation pursuant to Section 3.3.  Such meetings may be conducted by videoconference, teleconference, or in person, as agreed to by the Parties, provided that at least one such meeting shall be in person [***], unless otherwise agreed to by the Parties.  Minutes will be kept of all Committee meetings.  Meeting minutes will be prepared by Licensee within [***] after the applicable meeting and sent to each member of the Committee for review and preliminary approval, which minutes shall be formally approved by the Committee at its next scheduled meeting.  Any costs and expenses incurred related to a Committee meeting, including, if applicable, travel or telecommunication expenses, shall be borne separately by each Party.
3.6    Decision-Making.  Decisions of a Committee with respect to matters within the responsibility of such Committee shall be made [***], with Mirati’s Committee members [***] and Licensee’s Committee members [***].  If a Committee cannot reach unanimous agreement on such a matter before it for [***], the matter shall be referred to [***].  If such disagreement has not been resolved within [***] after being referred to [***], then [***] shall have the casting vote for all matters, except any matters where the resulting decision would relate

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primarily to [***], in which case, [***] shall have the casting vote.  [***] shall only exercise such right to the casting vote [***].  Notwithstanding the foregoing, if any such disputed or unresolved matter involves [***], such disputed or unresolved matter shall be resolved by [***].  [***] shall only exercise its right to the casting vote, in all cases (including when using it in its sole discretion), in good faith and provided such Party shall not use its casting vote to materially increase the other Party’s obligations or expenses under this Agreement.  For clarity, [***] shall have the casting vote for [***]), provided in exercising such right to the casting vote, [***] shall reasonably take into account [***] may, thereafter, exercise its casting vote [***].  If after [***] exercises its casting vote [***].  
3.7    Scope of Governance.  Each Committee shall only have such powers, authority and responsibilities as are specifically assigned to it in this Agreement, and such powers shall be subject to the terms and conditions set forth herein.  Without limiting the generality of the foregoing, no Committee will have any power to amend this Agreement, and no Committee decision shall be in contravention of or conflict with any terms and conditions of this Agreement.  It is understood and agreed that issues to be formally decided by a Committee are only those specific issues that are expressly provided in this Agreement to be decided by such Committee.
3.8    Alliance Managers.  Promptly after the Effective Date, each Party shall appoint an individual who shall be an employee of such Party having appropriate qualification and experience to act as the alliance manager for such Party with respect to the matters covered by this Agreement (the “Alliance Manager”).  Each Alliance Manager shall be responsible for coordinating and managing processes and interfacing between the Parties on a day-to-day basis throughout the Term.  The Alliance Manager will ensure communication to the applicable Committees of all relevant matters raised at any joint subcommittees or working groups.  Each Alliance Manager shall be permitted to attend meetings of the applicable Committees as non-voting participants.  The Alliance Managers shall be the primary contact for the Parties regarding the day-to-day activities contemplated by this Agreement and shall facilitate information exchange and discussion of all such activities hereunder, and the results thereof.  Each Party may replace its Alliance Manager with an alternative representative at any time with prior written notice to the other Party.  Any Alliance Manager may designate a substitute to temporarily perform the functions of that Alliance Manager.  Each Alliance Manager shall be charged with creating and maintaining a collaborative work environment within each Committee and its subcommittees, if any.  Costs with respect to Alliance Managers shall be borne separately by each Party.
3.9    Discontinuation of Participation on a Committee.  For clarity, [***] membership in any particular Committee shall be at its sole discretion, as a matter of right and not obligation, for the sole purpose of participation in governance, decision-making, and information

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exchange with respect to activities within the jurisdiction of the Committee.  [***] shall have the right to withdraw, at any time, from membership on a Committee upon [***] prior written notice to [***], which notice shall be effective upon the expiration of such [***] period.  Following the issuance of such notice:  (a) [***] membership in such Committee shall be terminated, (b) [***] Committee members shall no longer have any decision-making rights as provided in Section 3.6 and (c) each Party shall have the obligation to provide and the right to continue to receive the information it would otherwise be required to provide and entitled to receive under the Agreement and to participate directly with the other Party in discussions, reviews and approvals currently allocated to such Committee pursuant to this Article 3.
4.    TECHNOLOGY TRANSFER
4.1    Technology Transfer.  Promptly after the Effective Date and in any event within [***] following the Effective Date, Mirati will, [***] in accordance with a reasonable schedule established by the JSC, disclose and make available to Licensee in reasonable form all Licensed Know-How (other than any Reference Data) in Mirati’s Control as of the Effective Date (the “Initial Technology Transfer”).  Throughout the Term, each Party will make available to other Party in reasonable form additional Licensed Know-How (with respect to Mirati) and Licensee Know-How (with respect to Licensee), in each case, other than any Reference Data, that such Party or its Affiliates comes to Control after the Effective Date, to the extent that such Licensed Know-How or Licensee Know-How, as applicable, comes to such Party’s attention (or is reasonably requested by the other Party) and has not previously been provided or made available to the other Party.  
4.2    Assistance by Mirati.  After the Initial Technology Transfer and subject to the terms of this Agreement, upon Licensee’s reasonable request for any reasonable technical assistance as may be necessary in connection with the transfer of Licensed Know-How to Licensee, Mirati shall provide Licensee with such reasonable technical assistance.
5.    DEVELOPMENT
5.1    Responsibilities and Diligence.
(a)    Development Responsibilities.  Subject to the terms and conditions of this Agreement, Licensee shall be primarily responsible for conducting all Development activities of the Compound and any Licensed Product required to obtain Regulatory Approval in the Licensed Territory, at its sole expense and in accordance with the Clinical Development Plan.  Licensee will be solely responsible for obtaining all Regulatory Approvals in each Region in the Licensed Territory at its sole expense.  Licensee will have the right to engage capable, reputable and experienced contract research organizations to conduct particular Development activities as are appropriate to be conducted by subcontractors.  Licensee shall keep the JDC informed of the progress and results of such Development activities as provided below.  Licensee acknowledges and agrees that the [***] shall be coordinated and consistent with the worldwide (outside of the Licensed Territory) [***].

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(b)    Diligence.  Licensee shall use Commercially Reasonable Efforts to Develop at least one Licensed Product and seek and maintain Regulatory Approvals for such Licensed Product in the Field in the Licensed Territory; provided that, for clarity, in no event shall the foregoing limit Licensee’s obligations under Section 5.4.
(c)    Compliance.  In conducting Development of the Compound and Licensed Products, Licensee shall comply, and will ensure that its Affiliates comply, and will include in each of its sublicense agreements an obligation of its Sublicensees to comply, with all Applicable Laws, including the regulations promulgated by the relevant Regulatory Authorities for the Development, manufacture, testing, and Commercialization of pharmaceutical products in the Licensed Territory, in good scientific manner, and in compliance in all material respects with all applicable national and international guidelines (e.g., ICH, cGCP, cGMP).
(d)    [***].  If, prior to the earlier to occur of (i) [***] or (ii) [***], Licensee has not conducted [***] ), whether by itself, its Affiliates or permitted Sublicensees for any [***] period during the Term, and such [***] was not caused by reasons outside of Licensee’s, its Affiliates’ and Sublicensees’ reasonable control, then Licensee shall be deemed to have abandoned the [***] for the Licensed Product in the Field in the Licensed Territory and Mirati shall have the right to terminate this Agreement in accordance with Section 15.2(b)(i).  [***] exist if Licensee has performed or is performing any of the following [***] activities: (i) Licensee has [***] in the applicable [***] period for [***] for the Licensed Product in the Licensed Territory if there is [***], (ii) Licensee is waiting [***] in the Licensed Territory as evident by written correspondences [***] (or in the event that [***], by written support provided by Licensee), (iii) Licensee is waiting for [***]. 
5.2    Clinical Development Plan.  Licensee shall undertake the Development of Licensed Products in a collaborative and efficient manner in accordance with this Article 5. The Development of any Licensed Product relating to the Licensed Territory under this Agreement shall be governed by a written development plan (the “Clinical Development Plan”), as revised from time to time in accordance with this Section 5.2.  The Clinical Development Plan shall include [***].  The Clinical Development Plan shall contain in reasonable detail the major Development activities and the projected timelines for conducting such activities, including activities designed to achieve Regulatory Approvals for any Licensed

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Product in the Licensed Territory.  Licensee has prepared an initial draft of the Clinical Development Plan, which is attached hereto as Exhibit 5.2.  Promptly following the [***] Licensee will prepare the final draft of the initial Clinical Development Plan, and the JDC shall review and approve such Clinical Development Plan.  From time to time, but at least [***], Licensee shall propose updates or amendments, if any, to the Clinical Development Plan in consultation with Mirati and submit such proposed updated or amended plan to the JDC for review, discussion and approval.
5.3    Local Study.  Licensee shall be solely responsible for performing any Local Study at its sole cost (including handling relevant Regulatory Filings for any Local Studies in the Licensed Territory at its own cost, as applicable, in accordance with Article 6).  Licensee shall use Commercially Reasonable Efforts to conduct all Local Studies set forth in the Clinical Development Plan; provided that [***].  Each Local Study conducted in the Licensed Territory shall be conducted in accordance with the Clinical Development Plan, the study protocol approved by any relevant Regulatory Authority, and Applicable Laws in the Licensed Territory.  Notwithstanding the foregoing, Licensee shall not [***] that includes a [***], without the prior written consent of Mirati.
5.4    Global Study.
(a)    General.  Mirati may initiate, suspend, or cease a Global Study anywhere in the world for any Licensed Product for any Indication, in its sole discretion.  Exhibit 5.4 attached hereto will identify all Global Studies existing or planned by Mirati as of the Effective Date that include clinical sites for Clinical Trials in the Licensed Territory (such Global Studies, the “Existing Global Studies”), as each may be updated or amended from time to time.
(b)    Licensee Participation.  Licensee (i) shall, at its sole cost and expense, participate in specific Existing Global Studies in accordance with the Clinical Development Plan by coordinating clinical trial sites in the Licensed Territory for such Existing Global Studies to enroll a certain percentage of the total subjects for each such Existing Global Studies, and (ii) may agree to participate in such other Global Studies presented by Mirati pursuant to Section 5.4(e) (each of the Existing Global Studies that Licensee participates in and any such future Global Studies that Licensee participates in, a “Joint Global Study”), provided that (A) upon any suspension initiated by Mirati with respect to any Joint Global Study, Licensee shall be relieved of obligations to meet the Enrollment Period (if applicable) or [***] Enrollment Allocation with respect to such Joint Global Study that would have applied during such period of suspension, and upon [***] of such suspended Joint Global Study, the Parties shall agree to either (1) extend the Enrollment Period by a period of [***] and agree to new [***] Enrollment Allocation for any additional [***] of the extended Enrollment Period with respect to such Joint Global Study; or (2) reduce the Minimum Enrollment Threshold for such Joint Global Study by [***] and, if adopting (1) or (2) would be insufficient to eliminate the negative effect of Mirati’s suspension on Licensee’s ability to meet the Enrollment Period, [***] Enrollment

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Allocation, or Minimum Enrollment Threshold, the Parties will in good faith agree to further adjustment to the Enrollment Period, [***] Enrollment Allocation, or Minimum Enrollment Threshold, with respect to such Joint Global Study; and (B) after any cessation initiated by Mirati with respect to any Joint Global Study in its entirety, Licensee shall be relieved of the obligations with respect to such Joint Global Study set forth in Section 5.4, Section 5.6, Section 5.8, and Section 6.3(b)(i) (for clarity, Licensee’s obligation to provide Mirati with access or copies to Reference Data, Regulatory Filing, and correspondence generated prior to such cessation shall be unaffected).  Licensee shall be responsible for all activities (if any) associated with conducting each Joint Global Study in the Licensed Territory set forth in the Clinical Development Plan existing as of the Effective Date and each additional Joint Global Study as outlined in the plan for such Joint Global Study as mutually agreed by the Parties and any additional Joint Global Study so agreed between the Parties shall be included in an amendment to the Clinical Development Plan.  With respect to each Existing Global Study, Licensee shall recruit and enroll in a timely manner [***] (or such other percentage as agreed to by Mirati) of the total number of patients to be treated under the applicable protocol for such Joint Global Study (each applicable percentage, a “Minimum Enrollment Threshold”) with respect to the applicable enrollment period for such Joint Global Study (the “Enrollment Period”) in accordance with the Clinical Development Plan.  With respect to each Existing Global Study, [***] shall timely meet the [***] Enrollment Allocation, and provide the JDC [***] updates as to whether it expects to meet each [***] Enrollment Allocation, and the Parties (through the JDC) shall cooperate in good faith to assist Licensee in meeting each [***] Enrollment Allocation.  The [***] Enrollment Allocation for certain Existing Global Studies are set forth in Exhibit 5.4 attached hereto.  Licensee shall be solely responsible for any and all costs (including costs of supply for any combination agents under the applicable Joint Global Study protocol) incurred by or on behalf of Licensee to meet the applicable Minimum Enrollment Threshold.  Mirati may, in its sole discretion, request Licensee to enroll a number of patients for any Joint Global Study in excess of the applicable Minimum Enrollment Threshold.  If Licensee agrees to enroll such number of excess patients, within [***] of Licensee’s receipt of Mirati’s request, Licensee shall submit to Mirati for Mirati’s review and written approval a detailed budget of all estimated costs (including Manufacturing Costs) to be incurred by or on behalf of Licensee for such excess enrollment (such approved budget, the “Excess Enrollment Budget”).  Mirati shall reimburse Licensee for documented costs actually incurred by or on behalf of Licensee up to [***] of the Excess Enrollment Budget on a [***] basis.  
For avoidance of doubt, if with respect to a given Joint Global Study, the total patients to be enrolled based on the applicable Clinical Development Plan for such Joint Global Study are enrolled prior to the end of the Enrollment Period for such Joint Global Study (such date the total patient enrollment is achieved, the “Enrollment Completion Date”), then starting from the Enrollment Completion Date, Licensee would not be obligated to enroll any more patients as part of such Joint Global Study, and Licensee shall be relieved of all its obligations under Section 5.4(b) or Section 5.4(c) with respect to such Joint Global Study, subject to the following: [***].

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(c)    Existing Global Study Shortfall.  With respect to each Existing Global Study, within [***] of the applicable Enrollment Period [***] and the subsequent [***] of the applicable Enrollment Period [***] (each such period, a “Checkpoint”), Licensee shall[***] for the applicable Checkpoint (the “Checkpoint Enrollment Allocation”).  If Licensee fails to fulfill the Checkpoint Enrollment Allocation, or notifies Mirati through the JDC prior to the end of the applicable Checkpoint that Licensee does not expect to fulfill the Checkpoint Enrollment Allocation, the Parties will [***] Mirati shall, [***] determine in good faith whether to [***] or (ii) [***] Mirati may, [***] elect to help Licensee meet the enrollment requirements related to such Existing Global Study.  If Mirati (A) in good faith [***] or (B) grants Licensee [***]; provided that, Licensee’s failure to fulfill [***] is not to the extent [***].
(d)    Joint Global Study Sponsor.  Subject to Section 6.3(c), Licensee, itself or with or through any other of its Affiliates or Sublicensees, shall be the sponsor of each Joint Global Study in the Licensed Territory, unless otherwise agreed by the Parties as set forth in the Clinical Development Plan.  For any Joint Global Study, subject to the other provisions hereunder (including Section 5.4(b) which stipulates Mirati shall reimburse Licensee for certain costs pursuant to the Excess Enrollment Budget), Licensee shall be responsible for all costs incurred by or on behalf of Licensee in the performance of such Joint Global Study in the Licensed Territory, and Mirati shall be responsible for all other costs incurred for or in connection with such Joint Global Study.
(e)    Additional Global Studies.  From time to time during the Term, Mirati may propose to Licensee, through the JSC, additional Global Studies for any Licensed Product that includes clinical sites for Clinical Trials in the Licensed Territory.  The Parties will discuss in 

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good faith and mutually agree on Licensee’s participation in such additional Global Study in the Licensed Territory, and Licensee will elect to participate or not participate in such additional Global Study by notifying Mirati in writing within [***] after the date of Mirati’s presentation of such Global Study to the JSC.  If Licensee elects to participate in an additional Global Study by notifying Mirati in writing, such additional Global Study shall be deemed a “Joint Global Study”.  If Licensee elects not to participate in any additional Global Study presented by Mirati by timely notifying Mirati of such election (or by failing to timely notify Mirati in writing), Mirati may conduct such Global Study in the Licensed Territory (each, an “Additional Global Study”) at its sole cost.  Any Know-How (except for safety data) or Patents resulting from any Additional Global Study that Licensee has not elected to participate in shall be excluded from Licensed Technology unless Licensee notifies Mirati in writing of Licensee’s intent to include any such Know-How or Patents in Licensed Technology and pays to Mirati an amount that is equal to [***] of the [***] Additional Global Study.  Mirati shall share with Licensee and hereby grants to Licensee a right of reference to, any safety data generated from any Additional Global Studies.
(f)    Notwithstanding anything herein to the contrary, Licensee shall have no obligations under this Section 5.4 with respect to any Joint Global Study (including any Existing Global Study or other Joint Global Study) unless the Reference Data, Regulatory Filings, and any other Know-How or Patents resulting from the conduct of such Joint Global Study outside the Licensed Territory, in each case, that is necessary or reasonably useful to Exploit the Compound or Licensed Product in the Field is Controlled by Mirati, included in the Licensed Technology, and granted and provided to Licensee in accordance with the terms of this Agreement (including Sections 2.1, 4.1, 4.2, 5.8, 6.3(b) and 6.3(d)).  At least [***] (i) prior to the projected Initiation of each Joint Global Study (with respect to a future Joint Global Study) or (ii) after the Effective Date (with respect to any Existing Global Study), each Party will provide to the other Party a written notice regarding whether it Controls and may grant and provide to the other Party the Reference Data, Regulatory Filings, and any other Know-How or Patents resulting from the conduct of such Joint Global Study in such Party’s territory and which otherwise meets the definition of “Licensed Technology” or “Licensee Technology”, as applicable, in accordance with the terms of this Agreement (including Sections 2.1, 2.4, 4.1, 4.2, 5.8, 6.3(b), and 6.3(d)).
5.5    Records.  Each Party shall maintain, in compliance with the highest industry standard, full, complete, and accurate records, in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which shall fully, accurately and properly reflect all work done and all data and other results achieved or obtained by or on behalf of such Party in the performance of Development activities with respect to the Compound or any Licensed Product under the Clinical Development Plan (with respect to Licensee) and Joint Global Studies and all other Development activities conducted outside the Licensed Territory (with respect to Mirati), and as contemplated by this Agreement.
5.6    Disclosures Regarding Development Efforts.  The Parties will share information about their respective Development activities in the Field through the JDC as follows:
(a)    Licensee.  Licensee shall (i) provide to the JDC, not less than [***] during the Term, a report (each, a “Development Report”) that summarizes in reasonable detail (A) the Development activities conducted by or on behalf of Licensee with
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respect to the Compound and any Licensed Products in the Field and in the Licensed Territory and (B) any Product Inventions that are first conceived or reduced to practice by Licensee by over such [***] period.  Each Development Report shall contain sufficient information to allow Mirati to monitor Licensee’s compliance with this Agreement, including Licensee’s diligence obligation set forth in Section 5.1.  [***].
(b)    Mirati.  Mirati shall provide to the JDC, not less than [***] during the Term, a report that summarizes any Product Inventions that are first conceived or reduced to practice by Mirati over such [***] period.
5.7    Clinical Trial Audits.  Upon [***] prior written notification by Mirati but no more frequent than [***] (except in the event that Mirati has reasonable cause), and based on an audit scope agreed upon by the Parties, Mirati or its representatives may conduct an audit of Licensee [***], and all [***], in each case, to ensure that the applicable Clinical Trials are conducted in compliance with the Clinical Development Plan, cGCP, and Applicable Laws; provided that (a) such audit will take place during regular business hours of the audited party in a manner that does not interfere with the audited party’s normal business operations and shall be conducted under obligations of confidentiality, and (b) in the event any such audit [***] requires Licensee’s assistance, Licensee shall provide Mirati or its representatives with such assistance at [***], to the extent reasonable, including providing personnel of Licensee to be present for such audit and producing any documents or authorizations allowing Mirati or its representatives to conduct such audit, to the extent reasonable.  No later than [***] after the completion of such audit, Mirati shall provide Licensee with a written summary of Mirati’s findings of any deficiencies or other areas of remediation that Mirati identifies during any such audit.  Licensee shall use Commercially Reasonable Efforts to respond or remediate any such deficiencies within [***] following Licensee’s receipt of such report.  Without limiting the foregoing, Licensee shall have the right to be present at any such audit conducted by Mirati pursuant to this Section 5.7 [***].
5.8    Access to Data.  Each Party shall promptly provide the other Party with access to all Reference Data Controlled by such Party or its Affiliates and generated or produced in connection with any Clinical Trial conducted involving the Compound or any Licensed Product in accordance with the Clinical Development Plan (in case of Licensee) and any Joint Global Studies (in case of Mirati).  Upon the request of Licensee, Mirati shall, to the extent not previously provided to Licensee and necessary or reasonably useful to Exploit the Compound or any License Product in the Field and in the Licensed Territory, promptly provide Licensee with access to any Reference Data Controlled by Mirati or its Affiliates and generated or produced in connection with
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any Clinical Trial conducted involving the Compound or any Licensed Product as part of any Development activities conducted outside the Licensed Territory.
6.    REGULATORY ACTIVITIES
6.1    General.  Subject to, and in accordance with, the terms and conditions of this Agreement, the requirements of all Applicable Laws and the Clinical Development Plan, Licensee, at its own expense, shall prepare and file all Regulatory Filings required to Develop the Compound and any Licensed Product and, if successful, to obtain and maintain Regulatory Approvals of any Licensed Product in the Field in the Licensed Territory.  Mirati will provide reasonable regulatory and administrative support and assistance to Licensee, to be coordinated by the JDC, in connection with the conduct by Licensee of its activities under this Section 6.1 including the submission by Licensee of any Regulatory Filings in the Licensed Territory.  Without limiting the remainder of this Article 6, Licensee, through the JDC, shall keep Mirati fully informed in a timely manner of all material events and developments occurring in the course of seeking and obtaining Regulatory Approvals for the Licensed Products in the Licensed Territory, including material meetings with Regulatory Authorities in the Licensed Territory such that Mirati shall have the option to participate in such activities as provided below.
6.2    Regulatory Expenses.  Licensee shall be responsible for all costs and expenses of preparing, coordinating, maintaining, formatting, and filing Regulatory Filings for Licensed Products in the Licensed Territory and for maintaining Regulatory Approval for Licensed Products in the Licensed Territory.  Licensee shall be responsible for all costs and expenses of providing English summaries of all information and documents (which are not in English) that Licensee is obligated to provide to Mirati under this Article 6.
6.3    Regulatory Filings.
(a)    Review.  The Alliance Managers shall coordinate communication and the exchange of information between the Parties with respect to Regulatory Filings to be prepared and submitted by or for Licensee in the Licensed Territory.
(b)    Copies.
(i)    Subject to Applicable Laws, Licensee promptly shall provide to Mirati:  (A) electronic copies (as filed with an English summary thereof) of each material Regulatory Filing Controlled by Licensee or its Affiliates or Sublicensees as submitted to Regulatory Authorities in the Licensed Territory, and (B) copies (both as filed or received, and an English summary thereof) of all material correspondence Controlled by Licensee or its Affiliates or Sublicensees with respect to Regulatory Filings to and from any Regulatory Authority in the Licensed Territory.  Without limiting the generality of the foregoing, Licensee shall provide Mirati with copies of all material correspondence Controlled by Licensee or its Affiliates or Sublicensees with respect to the Licensed Products to and from any Regulatory Authority in the Licensed Territory (both as filed or received, and an English summary thereof) promptly so as to permit Mirati to comply with its obligations under Applicable Laws in and outside of the Licensed Territory or in accordance with such other timeline set forth in the Pharmacovigilance Agreement entered into by the Parties pursuant to Section 6.5(d).  Upon Mirati’s reasonable request, Licensee
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shall provide Mirati with an English translation of a material Regulatory Filing, and material correspondence with respect to Regulatory Filings to and from any Regulatory Authority, in each case, Controlled by Licensee or its Affiliates or Sublicensees and in relation to the Licensed Products and in the Licensed Territory. 
(ii)    Subject to Applicable Laws, Mirati shall provide Licensee with copies of all material correspondence with respect to the Compound or any Licensed Product to and from any Regulatory Authority pertaining to Regulatory Filings Controlled by Mirati or its Affiliates or its or their licensees (other than Licensee) outside of the Licensed Territory promptly so as to permit Licensee to comply with its obligations under Applicable Laws in the Licensed Territory.  
(c)    Licensee shall hold and own all such Regulatory Filings covering, and all Regulatory Approvals of, Licensed Product in the Licensed Territory, subject to subsection (d) below and to the provisions of Article 15, provided, however, that if Applicable Laws in the Licensed Territory do not allow Licensee (or an Affiliate of Licensee or a Sublicensee) to hold Regulatory Approvals or Regulatory Filings for the Licensed Product in the Field in the Licensed Territory, then during the Term Mirati (i) will hold such Regulatory Approval for Licensee’s benefit, (ii) will appoint Licensee (or an Affiliate of Licensee or a Sublicensee) as its exclusive regulatory agent, local legal agent, and local study sponsor, to handle all regulatory activities for the Licensed Product in the Field in the Licensed Territory, and (iii) will promptly transfer such Regulatory Approval to Licensee or its designee when allowed by Applicable Laws.
(d)    Right of Reference.
(i)    Licensee hereby grants to Mirati the right of reference to (A) all Regulatory Filings pertaining to the Compound or Licensed Product in the Field submitted by or on behalf of Licensee or its Affiliates or Sublicensees (and all data contained or referenced therein), with the right to grant further rights of reference to Mirati’s licensees with respect to the Compound or Licensed Products, and (B) Reference Data, in each case of (A) and (B), Controlled by Licensee or its Affiliates as of the Effective Date or during the Term and to the extent necessary or reasonably useful to Exploit the Compound or Licensed Product in the Field outside the Licensed Territory.  Mirati and its Affiliates (and any licensee to whom it may grant a further right of reference) may use the right of reference to such Regulatory Filings in the Field solely for the purpose of seeking, obtaining and maintaining the Regulatory Approval of the Licensed Products outside the Licensed Territory, and shall treat such Regulatory Filings and data provided by Licensee as Licensee’s Confidential Information and handle them in accordance with the best industry practices.
(ii)    Subject to and in accordance with Section 5.4, Mirati hereby grants to Licensee the right of reference to (A) all Regulatory Filings pertaining to the Compound or Licensed Product in the Field submitted by or on behalf of Mirati or its Affiliates or licensees (other than Licensee) (and all data contained or referenced therein), with the right to grant further rights of reference to Sublicensees to the extent permitted pursuant to Section 2.2, and (B) Reference Data, in each case of (A) and (B), Controlled by Mirati or its Affiliates as of the Effective Date or during the Term and to the extent necessary or reasonably useful to Exploit the Compound or Licensed Product in the Field in the Licensed Territory.  Licensee and its Affiliates
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(and any Sublicensee to whom it may grant a further right of reference) may use such right of reference to such Regulatory Filings in the Field solely for the purpose of seeking, obtaining and maintaining the Regulatory Approval of the Licensed Products in the Field in the Licensed Territory.
6.4    Regulatory Meetings.  Through the JDC, Licensee shall provide Mirati with a schedule of any material in-person meeting or material teleconference with the Regulatory Authorities (or related advisory committees) in the Licensed Territory planned [***] that relates to the Development of the Licensed Products in the Licensed Territory (each, a “Regulatory Meeting”).  Licensee shall be solely responsible for any communications with Regulatory Authorities occurring or required in connection with performing its regulatory responsibilities set forth in this Article 6 with respect to the Licensed Products in the Licensed Territory, and Mirati shall have the right to provide input in preparation for each such Regulatory Meeting and the right at its sole expense and upon reasonable advance written notice, but not the obligation, to have its representatives attend and participate in each such material Regulatory Meeting, unless prohibited or restricted by Applicable Law or a Regulatory Authority, provided that Licensee shall not be obligated to schedule such meetings to specifically enable Mirati’s or its representative’s attendance.
6.5    Safety; Adverse Event Reporting.
(a)    Database.  Mirati shall establish, hold, and maintain a global drug safety management system and database for the Licensed Products.  As between the Parties, Mirati shall enter into such database all pharmacovigilance and other drug safety data for the Licensed Products (including adverse events) used outside the Licensed Territory as required by Applicable Laws (including any such data collected by its other licensees).  Each Party shall have the right to access from such global drug safety database all drug safety data necessary for such Party to comply with all Applicable Laws in such Party’s territory.  Licensee shall provide to Mirati, for incorporation into such database, all safety-related information generated or obtained from use of Licensed Product in the Licensed Territory.
(b)    Licensee Obligations.  Licensee shall be responsible, at its expense, for:  (i) collecting all pharmacovigilance and other drug safety data for the Licensed Products in the Licensed Territory as required by Applicable Laws; (ii) reporting all such safety data for the Licensed Products in the Licensed Territory, including adverse events in the Licensed Territory, to the applicable Regulatory Authorities in the Licensed Territory as appropriate to be in compliance with all Applicable Laws; (iii) timely reporting all such safety data to Mirati in the format for entry into the global safety database as specified by Mirati; and (iv) providing a copy of all material correspondence with any data and safety management board with respect to safety data for the Licensed Products in the Licensed Territory.  The JDC may establish a safety subcommittee, and if so, all pharmacovigilance and other drug safety data for the Licensed Products in the Licensed Territory, including adverse event reports, shall then be submitted to such safety subcommittee concurrently with the reporting of such data to Mirati pursuant to subsection (iii) above.
(c)    Sharing of Safety Data.  Licensee expressly acknowledges that Mirati shall have the right to provide all information received by Mirati pursuant to this Section 6.5 to
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appropriate Regulatory Authorities outside the Licensed Territory, and any of its applicable Affiliates and other licensees engaged in Development and Commercialization activities of the Licensed Products in accordance with all Applicable Laws.  Mirati expressly acknowledges that Licensee shall have the right to provide all information received from Mirati by Licensee from the Mirati safety database to appropriate Regulatory Authorities within the Licensed Territory, and any of its applicable Affiliates and other Sublicensees engaged in Development and Commercialization activities of the Licensed Products in the Licensed Territory in accordance with all Applicable Laws.
(d)    Pharmacovigilance Agreement.  [***] the JDC will develop a mutually acceptable pharmacovigilance and safety agreement (to be agreed upon and executed by the Parties) setting forth the Parties’ respective obligations in detail regarding pharmacovigilance and the exchange and reporting of drug safety data (the “Pharmacovigilance Agreement”).
6.6    Mirati Inspection Rights.  For purposes of quality control Mirati (or its designee) will have the right not more than [***] (except in the event that Mirati has reasonable cause), at its expense and on [***] prior notice to Licensee, to inspect the [***] established or contracted by Licensee (or its Affiliate or Sublicensee), [***] and to audit Licensee’s [***] procedures with respect to the[***] or the [***], provided such inspection will take place during regular business hours of the audited party in a manner that does not interfere with the audited party’s normal business operations and shall be conducted under obligations of confidentiality.
6.7    Governmental Inspections and Inquiries.  Licensee shall advise Mirati promptly after Licensee’s receipt of notice thereof, of (i) any planned Regulatory Authority visit to the portion of the facilities of Licensee or the facilities of Mirati or their respective Affiliates where the Compound or any Licensed Product is manufactured, stored or handled, as applicable, or (ii) any material written inquiries by a Regulatory Authority concerning such facilities, Licensee’s or its Affiliates’ procedures with respect to the manufacture, storage or handling of the Compound or any Licensed Product.  If a Regulatory Authority makes an unannounced or unplanned visit, Licensee shall inform Mirati of the visit as soon as practicable after Licensee obtains actual knowledge of the visit.  Licensee shall inform Mirati, as soon as practicable, regarding the purpose and result of such visit or inquiry, and will provide to Mirati copies of [***] generated by Licensee promptly following such inspection, and any [***] provided by Licensee [***], as the case may be, to such [***] or issued by or provided by such [***] to Licensee [***] in connection with such visit or inquiry, provided that, if such [***] provide Mirati a written English translation of such [***].  Further details including notification, timing, response and scope of such audits shall be included in the Pharmacovigilance Agreement.
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7.    COMMERCIALIZATION
7.1    Responsibilities and Diligence.  
(a)    Licensee shall be responsible, at its sole expense and discretion, for Commercializing the Licensed Products in the Field in the Licensed Territory, in compliance and accordance with the terms and conditions of this Agreement.  Licensee shall use Commercially Reasonable Efforts to (i) Commercialize the Licensed Product(s) in the Regions within Licensed Territory where the Regulatory Approval has been obtained, and (ii) achieve the First Commercial Sale in the applicable Region in the Licensed Territory reasonably promptly after obtaining Regulatory Approval for such Licensed Product in such Region.  In conducting Commercialization of Licensed Product, Licensee will comply, and will ensure that its Affiliates comply, and will include in each of its Sublicense Agreements an obligation of its Sublicensees to comply, with all Applicable Laws related to its Commercialization of the Licensed Products, including, as applicable, all applicable anti-bribery and anti-corruption laws and regulations.  Without limiting the generality of the foregoing, Licensee will not promote or market or sell any of the Licensed Products in a manner that would conflict with Applicable Laws.
(b)    Notwithstanding the foregoing, if, and only if, Mirati has exercised the Co-Commercialization Option, the Parties, under the direction of the JCC and in accordance with the terms and conditions of this Agreement, will participate in the planning and conduct of such Commercialization activities as and to the extent set forth in Section 7.4.  In such case, Licensee and Mirati shall each use Commercially Reasonable Efforts to conduct Co-Commercialization activities for the Licensed Products in the Licensed Territory in accordance with Section 7.4 and the Co-Commercialization Plan.  
7.2    Global Commercialization Strategy for Licensed Products.
(a)    For each Licensed Product, the key Commercialization principles will be set forth in a written summary of the global Commercialization strategy for such Licensed Product, which strategy will be prepared and updated by Mirati (each, a “Global Commercialization Strategy”).
(b)    Prior to Mirati’s exercise of the Co-Commercialization Option and no later than [***] prior to the anticipated date of the First Commercial Sale of a Licensed Product in the Licensed Territory, Licensee shall provide Mirati with reasonable advance notice of [***] meeting every [***] pertaining to the Commercialization strategy of the Licensed Product in the Licensed Territory, and shall permit Mirati to have, [***] a representative of Mirati attend and participate in such internal meetings pertaining to the Commercialization of such Licensed Product in the Licensed Territory.
7.3    Commercialization Plan for the Licensed Territory.  Licensee shall prepare and submit to the JCC for its review and comment a plan containing its strategy and proposed Commercialization activities in the Licensed Territory for each Licensed Product (including estimated summary timelines for marketing, promoting and selling the Licensed Product in the Licensed Territory) (the “Commercialization Plan”).  Such Commercialization Plan shall be consistent with the requirements of the applicable Global Commercialization Strategy, as such
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Global Commercialization Strategy may be updated from time to time.  At least [***] prior to the date Licensee anticipates in good faith the First Commercial Sale of a Licensed Product in a Region in the Licensed Territory, Licensee shall submit to the JCC that date of anticipated First Commercial Sale of such Licensed Product in the Region in the Licensed Territory.  Licensee shall submit a proposed draft of the Commercialization Plan for the Licensed Territory to the JCC no later than [***] prior to the anticipated date of the First Commercial Sale of the Licensed Product in the Licensed Territory.  Licensee shall consider in good faith all comments from the JCC regarding the Commercialization Plan.  [***] shall have the decision-making authority over the Commercialization Plan.  Notwithstanding the foregoing, if any matter related to the Commercialization Plan is a [***], [***] shall have the decision-making authority.  Licensee shall deliver to the JCC an update of the relevant sections of each Commercialization Plan on at least [***] during the Term.  Updates to the Commercialization Plan will reflect, among other things, [***] in the Field for which the relevant [***] has received [***] and new or modified strategy for [***] such [***].
7.4    Co-Commercialization Option.
(a)    Mirati Co-Commercialization Option.  On a Licensed Product-by-Licensed Product and Region-by-Region basis, Mirati has the right, but not an obligation, to Co-Commercialize as set forth in this Section 7.4, each Licensed Product under the direction of Licensee in the Licensed Territory (the “Co-Commercialization Option”); provided that Mirati will provide a written notice to Licensee of its intention to Co-Commercialize on the later of (i) [***] or (ii) at least [***] before the anticipated date of Regulatory Approval of such Licensed Product in such Region in the Licensed Territory (the “Co-Commercialization Exercise Notice”).  Mirati’s election of the Co-Commercialization Option shall entitle Mirati to during the applicable Royalty Term expend FTEs to conduct Co-Commercialization activities in such Region in the Licensed Territory with respect to such Licensed Product, and to expend FTEs to perform Detailing activities in such Region in the Licensed Territory in an amount up to [***] of the total FTEs Licensee designates to perform Detailing activities in such Region in the Licensed Territory for such Licensed Product, the actual percentage Mirati elects to expend shall be provided by Mirati in writing to Licensee as part of the Co-Commercialization Exercise Notice. 
(b)    Co-Commercialization Plan. 
(i)    As further described in Section 7.4(b)(ii), the tactics and strategy for the Co-Commercialization of such Licensed Product in such Region in the Licensed Territory shall be described in a comprehensive plan (a “Co-Commercialization Plan”) (1) prepared by the Licensee within [***] following Mirati’s exercise of the Co-Commercialization Option and (2) presented to the JCC for review, comment and approval.  The Co-Commercialization Plan shall describe the Co-Commercialization activities to be undertaken in such Region in the Licensed Territory with respect to such Licensed Product during [***], and allocates the responsibilities of the Parties for the Co-Commercialization activities under the Co-Commercialization Plan (it being understood that Mirati’s FTEs, in Co-Commercializing in such Region in the Licensed Territory, shall (in the aggregate) be provided a materially equal
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opportunity to generate Net Sales of the Licensed Product in such Region in the Licensed Territory [***] the cohort of FTEs appointed by Licensee against which Mirati’s FTEs’ opportunity to generate Net Sales shall be compared being identified in the Co-Commercialization Plan (such cohort, the “Licensee Commercialization FTEs”)).  Without limiting the foregoing, the Co-Commercialization Plan shall [***].  The Co-Commercialization Plan shall be consistent with the requirements of the applicable Global Commercialization Strategy, as such Global Commercialization Strategy may be updated from time to time.  
(ii)    Licensee shall prepare updates to the Co-Commercialization Plan on [***] and provide such updates to the JCC for its review, comment, and approval.  In the event of any inconsistency between a Co-Commercialization Plan and this Agreement, the terms of this Agreement shall prevail.  Each Party shall conduct its activities under the Co-Commercialization Plan in compliance with Applicable Law.   
(iii)    Mirati agrees that (a) all Mirati’s Co-Commercialization activities in the Licensed Territory after it exercises such Co-Commercialization Option will be in all material respects in compliance with Licensee’s Commercialization and Detailing standards generally applicable to Licensee’s own employees; and (b) any and all information, procedures and other Know-How of Licensee that are specific to the Commercialization of Licensed Product and that are not Confidential Information of Mirati that Mirati learns or accesses from or as a result of such Co-Commercialization activities will be deemed Licensee Know-How and subject to the terms and conditions of this Agreement.
(c)    Mirati Opportunity to Additional Royalty Payment.  Upon Mirati’s exercise of the Co-Commercialization Option, in relation to the applicable Licensed Product and applicable Region and during the Royalty Term applicable to such Licensed Product: 
(i)    If in a Calendar Year, the FTEs Mirati expends to Co-Commercialize the Licensed Product in a Region in the Licensed Territory in accordance with the terms of this Agreement generate on average at least [***] more Net Sales than the average Net Sales generated by Licensee Commercialization FTEs expended by Licensee to Co-Commercialize the Licensed Product in such Region in the Licensed Territory, Licensee shall pay Mirati an additional royalty payment equal to [***] of the Net Sales of the applicable Licensed Product in such Region in such Calendar Year.
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(ii)    If in a Calendar Year, the FTEs Mirati expends to Co-Commercialize the Licensed Product in a Region in the Licensed Territory in accordance with the terms of this Agreement generate on average at least [***] more Net Sales than the average Net Sales generated by Licensee Commercialization FTEs expended by Licensee to Co-Commercialize the Licensed Product in such Region in the Licensed Territory Licensee shall pay Mirati an additional royalty payment equal to [***] of the Net Sales of the applicable Licensed Product in such Region in such Calendar Year.
(iii)    If in a Calendar Year, the FTEs Mirati expends to Co-Commercialize the Licensed Product in a Region in the Licensed Territory in accordance with the terms of this Agreement generate on average at least [***] more Net Sales than the average Net Sales generated by Licensee Commercialization FTEs expended by Licensee to Co-Commercialize the Licensed Product in such Region in the Licensed Territory, Licensee shall pay Mirati an additional royalty payment equal to [***] of the Net Sales of the applicable Licensed Product in such Region in such Calendar Year.
(iv)    For clarity, for any period of time with respect to a Licensed Product and a Region, only one of the above provisions under Sections 7.4(c)(i), 7.4(c)(ii), or 7.4(c)(iii) shall be in force under the Agreement, and in no event shall the additional royalty payment described above be additive to one or more other additional royalty payments for the same Licensed Product in the same Region.
(v)    Upon Mirati’s exercise of the Co-Commercialization Option, within [***] after the end of each Calendar Year, Licensee shall notify Mirati in writing if any clause of this Section 7.4(c) shall apply to such just-ended Calendar Year, and if this Section 7.4(c) applies, (1) which of Sections 7.4(c)(i), 7.4(c)(ii), or 7.4(c)(iii) shall apply, and (2) the corresponding amount of additional royalty payment Licensee owes Mirati due to the application of such clause.  Licensee shall prepare and submit to the JCC for JCC’s review and approval a report containing Licensee’s calculations with respect to the foregoing Sections 7.4(c)(v)(1) and (2), including any supporting documentation.  Following the JCC’s approval of Licensee’s report, to the extent Licensee owes Mirati any additional royalty payment under this Section 7.4(c), Licensee shall make such payment to Mirati within [***] after receiving a corresponding invoice from Mirati.
(vi)    For clarity, in the Calendar Year where the Royalty Term for a Licensed Product in a Region starts or ends, if the Royalty Term starts after January 1 of such Calendar Year, or ends prior to December 31 of such Calendar Year (as applicable), the references to Calendar Year in clauses (i) – (v) of this Section 7.4(c) for such Calendar Year shall be adjusted to refer to the portion of such Calendar Year within the Royalty Term.
(d)    When determining the Net Sales generated by Mirati’s FTEs or the Licensee Commercialization FTEs in Section 7.4(c), Licensee shall provide Mirati along with the written notice pursuant to Section 7.4(c)(v) with (i) the Net Sales generated [***]  For clarity, Licensee’s payment obligations under Section
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7.4(c) shall not be subject to any royalty reduction mechanism under Section 9.3(c) through Section 9.3(f).  
(e)    If Mirati does not provide Licensee with the Co-Commercialization Exercise Notice by the later of (i) [***] or (ii) at least [***] before the anticipated First Commercial Sale of a Licensed Product in a Region in the Licensed Territory, the Co-Commercialization Option shall expire in relation to such Licensed Product in such Region in the Licensed Territory.
7.5    Commercialization Costs.  Licensee shall be solely responsible for all Commercialization costs incurred by or on behalf of Licensee in the Commercialization of Licensed Products in the Licensed Territory.  If Mirati exercises the Co-Commercialization Option, Mirati will invoice (on a [***] basis after each [***]) Licensee for [***] of the FTEs who performed Detailing activities in the Licensed Territory in the applicable [***] at a FTE rate to be agreed to by the Parties, provided such FTE rate on average shall not be greater than the average FTE rate of the corresponding Licensee Detailing FTEs.  For Co-Commercialization activities performed by Mirati in addition to Detailing, Licensee shall pay Mirati an amount to compensate Mirati for such activities proposed to the JCC by Mirati and reviewed and approved by the JCC.  Licensee shall pay such invoice within [***] of its receipt.  Mirati’s Co-Commercialization activities will be limited to those activities assigned to it under the Co-Commercialization Plan, and Licensee shall be responsible for all other aspects of Commercialization.
7.6    Reports.  Licensee shall update the JCC [***] regarding Licensee’s Commercialization activities for the Licensed Products in the Licensed Territory and the progress and results thereof.  In addition, Licensee shall present written summary reports annually to the JCC setting forth Licensee’s significant Commercialization activities with respect to Licensed Products (including results thereof) in the Licensed Territory pursuant to this Agreement.  Each Party shall keep the JCC informed regarding the progress and results of Co-Commercialization activities for Licensed Products in the Licensed Territory.  Each Party shall keep the JCC informed regarding the progress and results of Co-Commercialization activities for Licensed Products in the Licensed Territory, including an annual review of results versus goals (as such goals are set forth in the Co-Commercialization Plan(s)).
7.7    Booking of Sales.  For clarity, notwithstanding Mirati’s exercise of the Co-Commercialization Option, Licensee shall have the sole right to invoice and book sales with respect to any Licensed Product in the Field in the Licensed Territory and to perform or cause to be performed all related services.
7.8    Patent Rights Marking.  To the extent required by Applicable Law and customary in the industry for such products, Licensee will mark all Licensed Products sold in the Licensed Territory by Licensee, its Affiliates, or Sublicensees with appropriate Licensed Product trademarks and patent numbers.
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8.    MANUFACTURE AND SUPPLY
8.1    Clinical Supply.  Mirati shall be solely responsible (itself or through its Affiliate or CMO) for the manufacture and supply to Licensee of Compound and Licensed Product for Development by Licensee and its Affiliates and Sublicensees in the Licensed Territory, provided that, [***] shall not be obligated to [***] following its good faith determination that any event, incident or circumstance related to material safety issues, quality issues or regulatory concerns has occurred, to the extent such event, incident, or circumstance would reasonably require the suspension or cessation of [***] provided further, in such case, [***] shall promptly notify [***] of such determination and provide [***] with the basis for its determination (including supporting documentation), and the Parties shall discuss in good faith alternative arrangements to minimize the interruption on the [***] or provide an alternate [***] for an actual or expected significant period [***], with mechanisms to address the foregoing being set forth in [***].  Customary terms of forecasting and ordering procedures, Licensed Product specifications and other operational matters relating to the clinical supply of Compound and Licensed Product under this Section 8.1 shall be set forth in a clinical manufacturing and supply agreement pursuant to be negotiated in good faith and mutually agreed upon by the Parties within [***] of the Effective Date or such longer period as agreed by the Parties (“Clinical Supply Agreement”).  Subject to the terms of this ARTICLE 8, the Clinical Supply Agreement, and the Quality Agreement, (a) Mirati shall, itself or through one or more CMOs, supply Licensed Product to Licensee [***] at [***] of Mirati’s Manufacturing Costs, and (b) Licensee shall [***].
8.2    Commercial Supply.  Mirati shall be solely responsible (itself or through its Affiliate or CMO) for the manufacture of the commercial supply of Licensed Product for Commercialization by Licensee and its Affiliates and Sublicensees in the Licensed Territory.  Customary terms of forecasting and ordering procedures, product specifications, and other operational matters relating to the supply of the Licensed Product under this Section 8.2 shall be set forth in a commercial supply agreement to be negotiated in good faith and mutually agreed upon by the Parties no later than [***] prior to Licensee’s anticipated date for first commercial launch of a Licensed Product in the Licensed Territory (the “Mirati Commercial Supply Agreement”) under which Mirati (or its CMO) will manufacture and supply to Licensee the quantities of Licensed Product required by Licensee (provided that, [***] shall not be obligated to [***] following its good faith determination that any event, incident or circumstance related to material safety issues, quality issues or regulatory concerns has occurred, to the extent such event, incident, or circumstance would reasonably require the suspension or cessation of [***] provided further, in such case, [***] shall promptly notify [***] of such determination and provide [***] with the basis for its determination (including supporting documentation), and the Parties shall discuss in good faith alternative arrangements to minimize[***] 
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[***] with mechanisms to address the foregoing being set forth in the [***] ), whereby:
(a)    terms and conditions applicable to Mirati (or its Affiliates) pursuant to Third Party contracts relevant to the Mirati supply chain, including production of drug substance, drug product and fill and finish services and the maximum capacities available thereunder, shall be taken into account;
(b)    a binding forecast will be made by Licensee, mirroring the binding forecast mechanisms and principles applicable to Mirati in its contracts with Third Party manufacturers; 
(c)    commercial supply of Licensed Products will be at [***] Mirati’s Manufacturing Cost and will be delivered [***]; and
(d)    [***] will obtain and maintain all required export or import licenses or authorizations, and shall serve as importer of record for all Licensed Products delivered in or into any Region in the Licensed Territory pursuant to this Agreement and the [***];
all as to be further agreed in the Mirati Commercial Supply Agreement.
8.3    Audit by Licensee.  Mirati shall (and shall ensure its CMO to) keep complete and accurate records in accordance with U.S. GAAP and in sufficient detail relating to the manufacture of the Compound and Licensed Products supplied to Licensee during the Term and [***] thereafter.  Upon no less than [***] prior notice, Licensee will have the right to have an independent certified public accountant, selected by Licensee and reasonably acceptable to Mirati to inspect such records for the purpose of determining the accuracy of the Manufacturing Cost due within the prior [***] period.  Such audit may not be conducted more than [***] unless Licensee has reasonable cause and will take place at the location(s) where such records, materials, documents are maintained by Mirati during regular business hours and under obligations of confidentiality.  If it is determined that any amounts were overpaid during such period, Mirati shall credit such overpayment against future payment owed by Licensee to Mirati (and if no further payments are due, refund Licensee within [***] of the date the independent certified public accountant’s written report).  If it is determined that any such amounts were underpaid during such period, Licensee will pay Mirati the underpaid amounts within [***] of the date the independent certified public accountant’s written report.  The fees charged by such independent certified public accountant will be paid by Licensee, unless it is determined that any overpaid amounts exceed [***] of the total amount payable by Licensee to Mirati for the period then being audited, in which case such fees will be paid by Mirati.
8.4    Manufacture by Licensee.  Subject to Section 8.5, Licensee shall not be permitted to manufacture Compound or Licensed Products or drug substance of the Licensed Product inside or outside of the Licensed Territory without the prior written consent of Mirati.  For clarity, after the completion of the Manufacturing Technology Transfer, Licensee shall be permitted to
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manufacture or have manufactured the Compound or Licensed Products or drug substance of the Licensed Product in the Licensed Territory.
8.5    Manufacturing Technology Transfer Option.  (a) If Licensee reasonably believes it can lower the Manufacturing Costs for the Licensed Product by manufacturing or having manufactured the Compound or Licensed Product in the Licensed Territory, it shall notify Mirati in writing of such belief, the rationale for such belief and that Licensee desires to conduct manufacturing of the Licensed Product in the Licensed Territory, the Parties shall discuss in good faith Licensee’s belief and the rationale presented, and if Mirati agrees with such belief (including the opportunity described in Section 8.6.), such agreement not to be unreasonably withheld, delayed or conditioned, or (b) if Mirati decides to cease all development activities pertaining to Compound outside the Licensed Territory and Licensee reasonably considers the further Exploitation of the Compound or Licensed Product in the Licensed Territory is commercially feasible, at Licensee’s request, then (c) the Parties shall negotiate in good faith and enter into an agreement on mutually agreeable terms and conditions under which the Parties would conduct a transfer of technology from Mirati to Licensee, or its CMO approved by Mirati in writing (such approval not to be unreasonably withheld, delayed or conditioned), to enable Licensee, or such CMO, to conduct such manufacturing of Compound or Licensed Product (collectively, “Manufacturing Technology Transfer”).  Upon reaching such agreement and at Licensee’s cost and expense, Mirati should provide reasonable technology transfer and assistance as necessary to complete such Manufacturing Technology Transfer.  Licensee would be responsible for all costs and expenses related thereto, including [***] provided however, Mirati shall provide without charge [***].
8.6    Manufacture by Licensee for Mirati.  In addition, upon Mirati’s request provided at any time following completion of the Manufacturing Technology Transfer, Licensee will discuss in good faith the terms pursuant to which Licensee would supply Mirati with the Compound or Licensed Product for clinical use anywhere in the world or commercial sale outside the Licensed Territory by Mirati and its Affiliates and applicable other licensees.  If Mirati provides such written notice, the Parties shall discuss in good faith a commercially reasonable supply agreement governing the details of such commercial supply of the Compound or Licensed Product to Mirati by Licensee (the “Licensee Commercial Supply Agreement”).  To the extent negotiated and executed, the Licensee Commercial Supply Agreement, as applicable, shall contain commercially reasonable, industry standard terms for similar commercial supply agreements, including that the Compound or Licensed Product would be supplied at [***].
8.7    Quality Agreement.  [***], the JDC will develop a mutually acceptable quality agreement (to be agreed upon and executed by the Parties) setting forth the Parties’ respective obligations in detail regarding the manufacture, packaging, testing, storage, and release of clinical or commercial Compound and Licensed Product to assure such Compound and Licensed Product is manufactured according to agreed specifications and complies with Applicable Laws (the “Quality Agreement”).
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9.    FINANCIAL TERMS 
9.1    Upfront License Fee.  Within [***] of the Effective Date, Licensee shall pay to Mirati, in cash, sixty-five million USD ($65,000,000.00), such payment being non-refundable, non-creditable and not subject to set-off.
9.2    Milestone Payments.
(a)    Clinical Development Milestones.  After the first achievement of each of the following milestone events with respect to a Licensed Product (each, a “Clinical Development Milestone Event”), Licensee shall pay to Mirati the corresponding non-refundable, non-creditable and not subject to set-off, milestone payments set forth in the table below.
						
	Clinical Development Milestone Event	Milestone Payment (USD)
	[***]	US $[***]
	[***]	US $[***]

(b)    Regulatory Milestones.  After the first achievement of each of the following milestone events with respect to a Licensed Product (each, a “Regulatory Milestone Event”), Licensee shall pay to Mirati the corresponding non-refundable, non-creditable and not subject to set-off, milestone payments set forth in the table below.
						
	Regulatory Milestone Event	Milestone Payment (USD)
	[***]	$[***]
	[***]	$[***]
	[***]	$[***]
	[***]	$[***]
	[***]	$[***]

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	Regulatory Milestone Event	Milestone Payment (USD)
	[***]	$[***]
	[***]	$[***]

(c)    Sales-Based Milestones.  After the first achievement of each of the following milestone events (each, a “Sales Milestone Event”), Licensee shall pay to Mirati the corresponding non-refundable, non-creditable and not subject to set-off, milestone payments set forth in the table below:
						
	Sales Milestone Event	Milestone Payment (USD)
	[***]	$[***]
	[***]	$[***]
	[***]	$[***]
	[***]	$[***]

(d)    Milestone Conditions.
(i)    Licensee will promptly notify Mirati in writing, but in no event later than (A) [***] after the achievement of each Clinical Development Milestone Event and Regulatory Milestone Event and (B) [***] after the end of [***] in which each Sales Milestone Event is achieved.  Mirati shall promptly issue a corresponding invoice thereof to Licensee after receiving such notice.
(ii)    Licensee will pay the corresponding milestone payment to Mirati within [***] after receiving the corresponding invoice from Mirati.
(iii)    For clarity, each milestone payment set forth in this Agreement shall be payable only once, regardless of the number of times the corresponding milestone event is achieved or how many Licensed Products achieve a milestone event.
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(iv)    If more than one Sales Milestone Event is achieved in the same Calendar Year, then each corresponding sales milestone payment for such Sales Milestone Event shall be payable.
9.3    Royalty Payments.
(a)    Royalty Rate.  During the applicable Royalty Term, Licensee shall pay to Mirati non-refundable, non-creditable royalties as a percentage of the Net Sales of all Licensed Products in the Licensed Territory, as calculated by multiplying the applicable royalty rate (as set forth in the following royalty rate schedule) by the amount of Net Sales of all Licensed Products in the Licensed Territory in the applicable Calendar Year (on a by “tier” basis):
						
	Portion of Aggregate Net Sales of all Licensed Products in a Calendar Year	Royalty Rate Applicable to Net Sales Tier
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]

(b)    Terms of Royalty Obligations.  On a Licensed Product-by-Licensed Product and Region-by-Region basis, royalties shall be payable hereunder on sales of a Licensed Product in a Region in the Licensed Territory throughout the Royalty Term applicable to such Licensed Product in such Region.  Upon expiration of the Royalty Term with respect to a given Licensed Product (but not in the case of earlier termination of the Agreement) in a particular Region in the Licensed Territory and payment in full of all amounts accrued by the end of the expiration of the Royalty Term and owed to Mirati under this Agreement with respect to such Licensed Product in such Region (for clarity excluding any milestone payments if the milestone event has not occurred prior to the expiration of the Royalty Term), the licenses granted to Licensee under this Agreement with respect to such Licensed Product in such Region shall become perpetual, transferable, sublicensable through multiple tiers, royalty-free, fully-paid up, and irrevocable.
(c)    Generic Sales.  With respect to a Licensed Product being sold in a Region by Licensee, its Affiliates or Sublicensees, if, at any time during the Royalty Term after a Generic Product for such Licensed Product obtains Regulatory Approval in such Region, then Licensee shall be entitled to reduce the royalties due to Mirati under Section 9.3(a) for such Licensed Product in such Region by (i) [***], when a Generic Product [***], and (ii) [***], when the Generic Products have [***] in such Region [***] 
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[***] (each of the conditions in (i) and (ii), “Generic Competition”).  Licensee will promptly notify Mirati of the occurrence of Generic Competition, which notice will specify the apply Generic Product, Indication, and Region in the Licensed Territory.
(d)    Anti-Stacking.  If Licensee reasonably determines in good faith after advice of counsel that it is necessary for Licensee to obtain a license under any Patents owned or controlled by a Third Party in order to Exploit the Licensed Product in a Region in the Licensed Territory, then Licensee shall be entitled to credit, against royalties owed by Licensee to Mirati on Net Sales of such Licensed Product in such Region under this Agreement, [***] of [***] any royalty payments paid to such Third Party by Licensee that are in consideration for the grant of such license with respect to such Licensed Product in such Region, provided that Licensee first provides to Mirati written evidence of the agreement establishing Licensee’s obligation to make such royalty payments to such Third Party in consideration for the grant of such license to Licensee in the Licensed Territory, provided that [***].
(e)    Valid Claim Expiration.  On a Region-by-Region and Licensed Product-by-Licensed Product basis, if, in any Calendar Quarter during the Royalty Term for such Licensed Product, there are no Valid Claims that Cover the Compound or such Licensed Product in such Region (including any composition of matter, method of use or manufacturing claims thereof), then the royalty rate under Section 9.3(a) shall be reduced by [***] in such Calendar Quarter.
(f)    Cumulative Reductions Floor.  In no event will the royalty rate under Section 9.3(a) in any given Calendar Quarter during the Royalty Term for any Licensed Product be reduced by more than [***] of the royalty rate that otherwise would have applied in such Calendar Quarter for such Licensed Product but for the reductions set forth in Section 9.3(c) through Section 9.3(e).  For the avoidance of doubt, this provision does not apply to Section 9.3(g).
(g)    Joint Global Study Enrollment.  With respect to a Joint Global Study, if Mirati requests and Licensee agrees to enroll additional patients in excess of the Minimum Enrollment Threshold, then for the enrollment of each additional [***] of the total number of patients to be treated under the applicable protocol for such Joint Global Study in excess of the Minimum Enrollment Threshold, the otherwise then-current royalty rates for each tier shall each be reduced by [***].  This provision shall apply after any application of Section 9.3(c) through Section 9.3(f).  By way of example, [***] 
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[***].  The royalty rate reduction pursuant to this Section 9.3(g) is subject to a cap of (i) [***] total reduction for each Joint Global Study, and (ii) an aggregate maximum reduction of [***] under this Agreement.
10.    PAYMENT; RECORDS; AUDITS
10.1    Payment; Reports.  The royalty payments due under Section 9.3 shall be calculated and reported on a Calendar Quarter basis.  Within [***] after the end of each Calendar Quarter, Licensee shall provide to Mirati a complete and accurate report setting forth the on a Licensed Product-by-Licensed Product and Region-by-Region basis the total gross invoiced amount and the calculation of Net Sales of Licensed Products by Licensee and its Affiliates and Sublicensees in the Licensed Territory during such Calendar Quarter and the royalties payable, in sufficient detail to permit confirmation of the accuracy of the royalty payment made, including any reductions taken in the calculation of Net Sales pursuant to Section 1.106 and the exchange rates used.  Upon receipt of such royalty report, Mirati shall promptly (within [***] ) issue a corresponding invoice to Licensee.  All royalty payments due under Section 9.3 shall be paid within [***] after receiving a corresponding invoice from Mirati.
10.2    Exchange Rate; Manner and Place of Payment.  All references to dollars and “$” herein shall refer to U.S.  dollars.  All payments hereunder shall be payable in U.S. dollars.  When conversion of payments or amounts received is required for the calculation of Net Sales from any currency other than U.S. dollars, such conversion shall be made by using the exchange rates quoted in the [***] on the [***] (or such other publication as agreed-upon by the Parties), for the applicable currency exchange, unless otherwise agreed in writing by the Parties.  All payments owed under this Agreement shall be made by wire transfer in immediately available funds to a bank and account designated in writing by the receiving Party, unless otherwise specified in writing by such Party.
10.3    Taxes.
(a)    Except as otherwise set forth in this Section 10.3(a), each Party shall be entitled to deduct and withhold from any amounts payable under this Agreement such taxes as are required to be deducted or withheld therefrom under any provision of Applicable Law [***].  The Party that is required to make such withholding shall: (i) timely remit the taxes to the proper taxing authority; and (ii) send evidence of the obligation, together with proof of tax payment, to the other Party on a timely basis following such tax payment [***] 
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[***]  Each Party shall reasonably cooperate with the other Party in claiming refunds or exemptions from such deductions or withholdings under any relevant agreement or treaty which is in effect to ensure that any amounts required to be withheld pursuant to this Section 10.3 are reduced in amount to the fullest extent permitted by Applicable Law. In addition, the Parties shall cooperate in accordance with Applicable Law to minimize indirect taxes (such as VAT, sales tax, consumption tax, and other similar taxes) in connection with this Agreement.
(b)    [***].
10.4    Restrictions on Fund Transfers.  In the event that, by reason of Applicable Laws in the Licensed Territory, it becomes impossible or illegal, after reasonable efforts by Licensee to transfer, or have transferred on its behalf, payments owed to Mirati hereunder, Licensee will promptly notify Mirati of the conditions preventing such transfer and, at the request of Mirati, such payments will be deposited in local currency in the Licensed Territory to the credit of Mirati in a recognized banking institution designated by Mirati, or to a local currency account of a Third Party designated by Mirati.
10.5    Royalty Records; Audits.  Licensee shall keep, and shall cause its Affiliates and Sublicensees to keep, complete and accurate records pertaining to the sales or other disposition of any Licensed Product in the Licensed Territory and calculation of Net Sales, in sufficient detail to permit Mirati to confirm the accuracy of royalty reports and payments due to it hereunder.  Such records shall be kept for at least [***] following the end of the Calendar Quarter to which they pertain.  Upon no less than [***] written notice by Mirati to Licensee, Licensee shall permit, and shall require its Affiliates and Sublicensees to permit, an independent, certified public accountant appointed by Mirati and reasonably acceptable to Licensee to audit such records to confirm Net Sales reports and royalty payments for a period covering not more than [***] following the Calendar Quarter to which they pertain.  Such audits may be exercised during normal business hours upon reasonable prior written notice to Licensee; provided that such audit right may be exercised [***] with respect to sales of a particular Licensed Product in a particular period.  All records made available for audit shall be deemed to be Confidential Information of Licensee.  Prompt adjustments shall be made by the Parties to reflect the results of such audit.  Mirati shall bear the full cost of such audit unless such audit discloses an underpayment by Licensee of more than [***] of the amount of royalty payments due under this Agreement for any applicable Calendar Quarter, in which case, Licensee shall bear the cost of such audit and shall promptly remit to Mirati the amount of any underpayment.  Any overpayment by Licensee revealed by an audit shall be credited against future payment owed by Licensee to Mirati (and if no further payments are due, shall be promptly refunded by Mirati).
10.6    Interest on Late Payments.  Any amounts not paid by either Party when due under this Agreement will be subject to interest from and after the date payment is due through and including the date upon which such Party makes such payment at the [***] rate equal to the [***] on the date such payment is due, plus an additional [***].
11.    INTELLECTUAL PROPERTY
11.1    Ownership of Intellectual Property.
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(a)    Data and Results.  All data, results and other Know-How (and all property rights therein) generated in connection with any Development or Commercialization activities with respect to the Compound or Licensed Product  (and is not related to another active pharmaceutical ingredient) conducted by or on behalf of Mirati and its Affiliates and other licensees shall, as between Mirati and Licensee, be the sole and exclusive property of Mirati or its Affiliates or licensees (other than Licensee as licensee hereunder), as applicable, subject to the license and use rights granted to Licensee hereunder.  To the extent Licensee acquires or obtains any interest to the foregoing data, results and other Know-How (and all property rights therein), Licensee hereby assigns and agrees to assign to Mirati all rights, title and interest in and to all such data, results and other Know-How (and all property rights therein).  To the extent permitted by Applicable Laws in the Licensed Territory, all Licensed Territory Data and Results (for clarity, excluding Manufacturing Data) shall, as between Mirati and Licensee, be the sole and exclusive property of Mirati or its Affiliates or licensees (other than Licensee as licensee hereunder), as applicable, and, to the extent permitted by Applicable Laws in the Licensed Territory, Licensee hereby assigns and agrees to assign to Mirati all rights, title and interest in and to all such Licensed Territory Data and Results (and all property rights therein), which rights are subject to the license and use rights granted to Licensee hereunder.  All Manufacturing Data generated in connection with any Development or Commercialization activities with respect to the Compound or Licensed Product conducted by or on behalf of Licensee and its Affiliates and Sublicensees shall, as between Mirati and Licensee, be the sole and exclusive property of Mirati, and Licensee hereby assigns and agrees to assign to Mirati all rights, title and interest in and to all such Manufacturing Data (and all property rights therein), which rights are subject to the license and use rights granted to Licensee herein.  Licensee shall ensure that its Affiliates and Sublicensees provide Licensee with sufficient rights in all Licensed Territory Data and Results and Manufacturing Data so that Licensee can assign to Mirati all rights and title in and to all Licensed Territory Data and Results, Product Inventions and Manufacturing Data, as provided in this Agreement.
(b)    Patents, Inventions and other Know-How.
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(i)    To the extent permitted by Applicable Laws in the Licensed Territory, Mirati (and its Affiliates) shall have sole and exclusive ownership of all right, title and interest on a worldwide basis in and to any and all Licensed Patents, Licensed Know-How, Product Inventions, Product Patents, Mirati Inventions and Mirati Invention Patents.  Licensee shall have sole and exclusive ownership of all right, title and interest on a worldwide basis in and to any and all Licensee Know-How and Licensee Patents.
(ii)    To the extent permitted by Applicable Laws in the Licensed Territory, (A) Licensee (on behalf of itself and its Affiliates) hereby assigns and agrees to assign to Mirati all of Licensee’s (and its Affiliates’ and Sublicensees’) rights, title and interest in and to the Product Inventions and Product Patents, and (B) Licensee shall ensure that its Affiliates and Sublicensees (including all Third Party subcontractors) provide and assign to Licensee all of such party’s rights in Product Inventions and Product Patents so that Licensee can transfer and assign to Mirati all rights, title and interest in and to all Product Inventions and Product Patents, as provided in this Agreement.  If, by operation of Applicable Law, Licensee is unable to assign any Product Inventions or Product Patents, then Licensee hereby grants and agrees to grant to Mirati a royalty-free, fully paid-up, exclusive (subject to the terms of this Agreement, including the licenses granted to Licensee pursuant to Article 2), perpetual, irrevocable license (with the right to grant sublicenses through multiple tiers) under such Product Inventions and Product Patents for any and all purposes.  Licensee shall promptly disclose to Mirati all Product Inventions that are conceived, discovered, developed or otherwise made by or on behalf of Licensee or its Affiliates and Sublicensees in the course of performing activities or exercising its rights under this Agreement, in each case, including all invention disclosures or other similar documents submitted to such Party by its, or its Affiliates’, independent contractors’ or sublicensees’ (including Sublicensees’) directors, officers, employees or agents describing such Inventions.
(iii)    The Parties shall jointly own an undivided one-half interest in all Inventions that are conceived, discovered, developed or otherwise made jointly by or on behalf of both Parties or their respective Affiliates in the course of performing activities or exercising its rights under this Agreement (referred to herein as “Joint Inventions”), except for Product Inventions and Product Patents.  Each Party will and hereby does assign to the other Party a joint interest in and to all Joint Inventions, and the other Party hereby accepts such assignment.  Each Party shall ensure that its Affiliates and Sublicensees (including all Third Party subcontractors) provide and assign to such Party all rights in Joint Inventions so that such Party can transfer and assign to the other Party a joint interest in and to all Joint Inventions.  If either Party is unable to assign a joint interest in any Joint Inventions, then such Party hereby grants and agrees to grant to the other Party a royalty-free, fully paid-up, non-exclusive (subject to the terms of this Agreement, including the licenses granted to the other Party pursuant to Article 2), perpetual, irrevocable license (with the right to grant sublicenses through multiple tiers) under such Joint Inventions for any and all purposes.  All Patents claiming patentable Joint Inventions shall be referred to herein as “Joint Patents”, and shall be jointly owned by the Parties, subject to the applicable licenses granted by each Party hereunder.  Except to the extent either Party is restricted by the licenses granted to the other Party under this Agreement, each Party shall be entitled to practice, license, assign, and otherwise exploit its interest under Joint Inventions and Joint Patents without the duty of accounting or seeking consent from the other Party.  At the reasonable written request of a Party, the other Party shall take such further actions to confirm that no such accounting is required or to otherwise effect the foregoing regarding such Joint Inventions.  Each Party shall promptly disclose
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to the other all Joint Inventions, in each case, including all invention disclosures or other similar documents submitted to such Party by its, or its Affiliates’, independent contractors’ or sublicensees’ (including Sublicensees’) directors, officers, employees or agents describing such Joint Inventions.
(c)    Inventorship for patentable Invention conceived or reduced to practice during the course of the performance of activities pursuant to this Agreement shall be determined on a worldwide basis in accordance with United States Patent laws and, except as expressly set forth herein, ownership of any such patentable Invention shall be determined by inventorship under Applicable Law.
11.2    Patent Prosecution and Maintenance.
(a)    Licensed Patents/Joint Patents.
(i)    Subject to the remainder of this Section 11.2(a), including subsection (ii), Mirati shall have the [***] right, but not the obligation, to control the preparation, filing, prosecution, and maintenance (including any interferences, reissue proceedings, reexaminations, inter partes review, patent term extensions, applications for supplementary protection certificates, oppositions,) of the Licensed Patents and Joint Patents, including all Product Patents and Mirati Invention Patents, worldwide, at its sole cost and expense and using counsel of its own choice.
(ii)    In the event that Mirati desires to abandon or cease prosecution or maintenance of any Licensed Patent in the Licensed Territory during the Term, Mirati shall provide reasonable prior written notice to Licensee of such intention to abandon (which notice shall, to the extent possible, be given no later than [***] prior to the next deadline for any action that must be taken with respect to any such Licensed Patent in the relevant patent office).  In such case, upon Licensee’s written election provided to Mirati no later than [***] after such notice from Mirati and subject to any rights of any Third Party with respect thereto, Licensee shall have the right to continue prosecution and maintenance of such Licensed Patent at Licensee’s direction and expense.  If Licensee does not provide such election within [***] after such notice from Mirati, Mirati may thereafter, in its sole discretion, continue or discontinue the prosecution and maintenance of such Licensed Patent.
(iii)    Notwithstanding anything to the contrary in this Section 11.2, in the event that any Joint Patent Covers or relates to any proprietary compound of Licensee, the Parties will discuss and agree in good faith upon the allocation between the Parties of prosecution, maintenance and enforcement responsibilities using patent counsel mutually acceptable to the Parties.
(b)    Licensee Patents.
(i)    Subject to this Section 11.2(b), Licensee shall have the first right, but not the obligation, to control the preparation, filing, prosecution, and maintenance (including any interferences, reissue proceedings, reexaminations, inter partes review, patent term extensions, applications for supplementary protection certificates, oppositions, invalidation proceedings, and
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defense of validity or enforceability challenges) of all Licensee Patents worldwide, at its sole cost and expense and by counsel of its own choice.
(ii)    In the event that Licensee desires to abandon or cease prosecution or maintenance of any Licensee Patent outside the Licensed Territory (other than any Licensee Patent that Covers or relates to any proprietary compound of Licensee) during the Term, Licensee shall provide reasonable prior written notice to Mirati of such intention to abandon (which notice shall, to the extent possible, be given no later than [***] prior to the next deadline for any action that must be taken with respect to any such Licensee Patent in the relevant patent office).  In such case, upon Mirati’s written election provided to Licensee no later than [***] after such notice from Licensee and subject to any rights of any Third Party with respect thereto, Mirati shall have the right to continue prosecution and maintenance of such Licensee Patent outside the Licensed Territory at Mirati’s direction and expense.  If Mirati does not provide such election within [***] after such notice from Licensee, Licensee may, in its sole discretion, continue or discontinue prosecution and maintenance of such Licensee Patent.
(c)    Cooperation of the Parties.  The Party that has the responsibility for the preparation, filing, prosecution, and maintenance of any Patents under Section 11.2(a) or 11.2(b) above (the “Prosecuting Party”) shall (A) promptly provide the other Party (the “Non-Prosecuting Party”) with copies of all material submissions and correspondence with the applicable patent offices with respect to its preparation, filing, prosecution, and maintenance of the applicable Patents, in sufficient time to allow for review and comment by Non-Prosecuting Party, and (B) provide the Non-Prosecuting Party and its patent counsel with an opportunity to consult with the Prosecuting Party regarding such Patents and any amendment, submission or response with respect to such Patents.  The advice and suggestions of the Non-Prosecuting Party and its patent counsel shall be taken into consideration in good faith by the Prosecuting Party in connection with such preparation, filing, prosecution, and maintenance; provided, that, if the Non-Prosecuting Party fails to provide any comment on or before the expiration of [***] before the proposed date for any amendment, submission or response notified by the Prosecuting Party, the Prosecuting Party’s obligations under this Section 11.2(c) shall be deemed to have been fulfilled.  The Prosecuting Party shall pursue in good faith all reasonable claims requested by the Non-Prosecuting Party in its preparation, filing, prosecution, and maintenance of any Patents under this Section 11.2(c); provided, that, if the Prosecuting Party incurs any additional cost or expense as a result of any such request, the Non-Prosecuting Party shall be solely responsible for the cost and expense attributable to the pursuit of any such additional claim or taking such other activities.  Each Party agrees otherwise to cooperate fully in the preparation, filing, prosecution, and maintenance of Patents under this Section 11.2 and in the obtaining and maintenance of any patent extensions, supplementary protection certificates, and the like with respect thereto, at its own costs.  Such cooperation includes, but is not limited to, (i) executing all papers and instruments, or requiring its employees or contractors, to execute such papers and instruments, so as to enable the other Party to apply for and to prosecute patent applications in any country or Region as permitted by Section 11.2, and (ii) promptly informing the other Party of any matters coming to such Party’s attention that may affect the preparation, filing, prosecution, or maintenance of any such patent applications and the obtaining of any patent term extensions, supplementary protection certificates, and their equivalent.
11.3    Infringement by Third Parties.
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(a)    Notice; Enforcement Generally.  Each Party shall notify the other Party within [***] of becoming aware of any infringement or threatened infringement by a Third Party of any Licensed Patents or Joint Patents in the Licensed Territory, which infringement adversely affects or is expected to adversely affect any Licensed Product in the Field in the Licensed Territory, and any related declaratory judgment, opposition, or similar action by a Third Party alleging the invalidity, unenforceability or non-infringement of any of the Licensed Patents or Joint Patents in the Licensed Territory within the scope of the license grant in Section 2.1 (collectively, “Product Infringement”).  Any such notice shall include evidence to support an allegation of Product Infringement by such Third Party.  Except as expressly provided herein, each Party retains exclusive rights to enforce all of its intellectual property rights.
(b)    Subject to this Section 11.3(b), as between the Parties, Licensee shall have the first right, but not the obligation, to bring and control any action or proceeding with respect to such Product Infringement in the Licensed Territory, and the sole right, but not the obligation, to bring and control any action or proceeding with respect to infringement of any Licensee Patent worldwide, in each case at its own expense and by counsel of its own choice.  Mirati shall have the right, at its own expense, to be represented in any such action or proceeding with respect to an enforcement of a Licensed Patent (for clarity, including any Product Patent) or Joint Patent in the Licensed Territory by counsel of its own choice, and the Parties shall reasonably cooperate with each other and the other’s counsel in strategizing, preparing for, and presenting any such action or proceeding.  If Licensee does not bring an action or proceeding with respect to infringement of any Licensed Patent (for clarity, including any Product Patent), or Joint Patent in the Licensed Territory before the earlier of (i) [***] following the notice of alleged infringement or (ii) at least [***] before the time limit, if any, set forth in the Applicable Laws for the filing of such actions, whichever comes first, Mirati shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and Licensee shall have the right, at its own expense, to be represented in any such action by counsel of its own choice.  Any recovery or damages realized as a result of such action or proceeding with respect to Licensed Patents (for clarity, including any Product Patents) or Joint Patents in the Licensed Territory shall be used (i) first to reimburse the Parties’ documented out-of-pocket legal expenses relating to the action or proceeding on a pro-rata basis, (ii) second, if applicable, and if Licensee prosecuted the infringement response, [***], and (iii) any remaining amounts shall be allocated [***] to the Party that prosecuted the infringement response, and [***] to the other Party.
(c)    Mirati shall have the first right, but not the obligation, to enforce the Joint Patents anywhere in the world for any infringement that is not a Product Infringement at its own expense as it reasonably determines appropriate.  Licensee shall have the right, at its own expense, to be represented in any such action or proceeding with respect to an enforcement of a Joint Patent anywhere in the world for any infringement that is not a Product Infringement by counsel of its own choice, and the Parties shall reasonably cooperate with each other and the other’s counsel in strategizing, preparing for, and presenting any such action or proceeding.  If Mirati does not bring an action or proceeding with respect to such infringement of Joint Patent before the earlier of (i) [***] following the notice of alleged infringement or (ii) at least [***] before the time limit, if any, set forth in the Applicable Laws for the filing of such actions, whichever comes first, Licensee shall have the right, but not the obligation, to bring and control any such action at its own expense and by counsel of its own choice, and Mirati shall have the right, at its own expense, to be represented in any such action by counsel of its own choice.  Any 
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recovery or damages realized as a result of such action or proceeding with respect to Joint Patents shall be used first to reimburse the Parties’ documented out-of-pocket legal expenses relating to the action or proceeding on a pro-rata basis, and any remaining amounts shall be allocated [***] to the Party that prosecuted the infringement response, and [***] to the other Party.
(d)    Mirati shall have the exclusive right, but not the obligation, to bring and control any legal action in connection with any alleged or threatened infringement by a Third Party of any of the Licensed Patents that is not a Product Infringement, and any related declaratory judgment, opposition, or similar action by a Third Party alleging the invalidity, unenforceability or non-infringement of any of the Licensed Patents, at its own expense as it reasonably determines appropriate.  For clarity, in no event shall Licensee have the right to enforce any Licensed Patent (for clarity, including any Product Patent) outside the Licensed Territory, which right shall be retained solely by Mirati, and Mirati retains sole and exclusive rights, at its discretion, to enforce all Patents of Mirati that are not Licensed Patents, anywhere in the world.
(e)    Mirati shall have the first right, but not the obligation, to bring and control any legal action in connection with any alleged or threatened infringement by a Third Party of any of the Licensee Patents, which infringement adversely affects or is expected to adversely affect any Licensed Product in the Field outside the Licensed Territory, and any related declaratory judgment, opposition, or similar action by a Third Party alleging the invalidity, unenforceability or non-infringement of any of the Licensee Patents outside the Licensed Territory, at its own expense as it reasonably determines appropriate.  If Mirati does not bring such legal action prior to the earlier of: (i) [***] following receipt or delivery of notice between the Parties regarding such alleged infringement, or (ii) [***] before the deadline, if any, set forth in the Applicable Laws for the filing of such actions, or discontinues the prosecution of any such action after filing without abating such infringement, Licensee shall have the right to bring and control any legal action in connection with infringement at its own expense as it reasonably determines appropriate.  Any recovery or damages realized as a result of such action or proceeding with respect to Licensee Patents shall be used first to reimburse the Parties’ documented out-of-pocket legal expenses relating to the action or proceeding on a pro-rata basis, and any remaining amounts shall be allocated [***] to the Party that prosecuted the infringement response, and [***] to the other Party.
(f)    Except as otherwise provided in Section 11.3(e), Licensee shall have the exclusive right, but not the obligation, to bring and control any legal action in connection with any alleged or threatened infringement by a Third Party of any of the Licensee Patents, and any related declaratory judgment, opposition, or similar action by a Third Party alleging the invalidity, unenforceability or non-infringement of any of the Licensee Patents, at its own expense as it reasonably determines appropriate.
(g)    Cooperation.  If a Party brings an infringement action in accordance with this Section 11.3, the other Party shall cooperate fully, including, if required to bring such action, the furnishing of a power of attorney or being named as a party to such action.
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11.4    Infringement of Third Party Rights.  Each Party shall promptly notify the other in writing of any allegation by a Third Party that the activity of Licensee, Mirati, or any of their respective Affiliates or Sublicensees, as applicable, pursuant to this Agreement infringes or may infringe the intellectual property rights of a Third Party, and will include in such notice a copy of any summons or complaint (or the equivalent thereof) received regarding the foregoing.  Thereafter, the Parties will promptly meet to consider the claim or assertion and the appropriate course of action and may, if appropriate, agree on and enter into a “common interest agreement” wherein the Parties agree to their shared, mutual interest in the outcome of such potential dispute.  The Parties will assert and not waive the joint defense privilege with respect to any communications between the Parties in connection with the defense of such claim or assertion.  Licensee shall have the sole right to control any defense of any such claim against Licensee (or its Affiliate or Sublicensee) involving alleged infringement of Third Party rights by activities of Licensee or its Affiliate or Sublicensee in the Licensed Territory, at its own expense and by counsel of its own choice, and Mirati shall have the right (if such actions relate to Licensed Product), at its own expense, to be separately represented in any such action by counsel of its own choice.  Licensee shall keep Mirati informed on the status of such defense action.  Subject to Licensee’s indemnification obligations under Section 14.1, Mirati shall have the sole right to control any defense of any such claim against Mirati involving alleged infringement of Third Party rights by activities of Mirati or its Affiliates or other licensees at its own expense and by counsel of its own choice, and Licensee shall have the right (if such actions relate to Licensed Product activities in the Licensed Territory), at its own expense, to be represented in any such action by counsel of its own choice.
11.5    Consent for Settlement.  Neither Party shall enter into any settlement or compromise of any action or proceeding under this Article 11 that would (a) result in the admission of any liability or fault on behalf of the other Party, (b) result in or impose any payment obligations on the other Party, or (c) subject the other Party to an injunction or otherwise limit the other Party’s ability to take any actions or refrain from taking any actions under this Agreement or with respect to the Compound or Licensed Product, in each case of (a) to (c), without the prior written consent of such other Party, which shall not be unreasonably withheld, conditioned, or delayed.
11.6    Trademarks.  Except as provided below for Regional Marks, and subject to Article 15, Licensee shall own and be responsible for all trademarks, trade names, branding, or logos related to Licensed Product in the Field for use in the Licensed Territory, and will be responsible for selecting, registering, defending, and maintaining the same at Licensee’s sole cost and expense.  Mirati shall own and be responsible for all trademarks, trade names, branding, or logos related to Licensed Product in the Field for use outside the Licensed Territory, and will have the sole rights for selecting, registering, defending, and maintaining the same at Mirati’s sole cost and expense.  Notwithstanding the foregoing, the Parties (through the JCC) shall discuss and consider in good faith whether it is commercially valuable to have a single trademark to be used in certain Regions in the Licensed Territory as well as appropriate countries outside the Licensed Territory, and if so, on the details of such a trademark, including the owner and the Party responsible for registering, defending, and maintaining any such trademark  (the “Regional Mark”).
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12.    CONFIDENTIALITY
12.1    Confidential Information.  Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, each of the Parties agrees that, during the Term and for [***] thereafter, such Party and its Affiliates shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as expressly provided for in this Agreement any Confidential Information of the other Party provided pursuant to this Agreement.  Further, each of the Parties and its Affiliates shall keep confidential and, subject to Section 12.4, shall not publish or otherwise disclose the terms of this Agreement, except as otherwise permitted in this Article 12.  Each Party will use at least the same standard of care as it uses to protect proprietary or confidential information of its own proprietary or confidential information of a similar nature (but no less than reasonable care) to ensure that its employees, agents, consultants, contractors, and other representatives do not disclose or make any unauthorized use of the Confidential Information of the other Party.  Each Party will promptly notify the other Party upon discovery of any unauthorized use or disclosure of any Confidential Information of the other Party and shall use diligent, good faith efforts to rectify such issue as soon as practicable.
12.2    Authorized Disclosure.  Each Party may disclose Confidential Information belonging to the other Party as expressly permitted by this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances:
(a)    filing, prosecuting, or maintaining Patents as permitted by this Agreement;
(b)    submitting Regulatory Filings for any Compound or Licensed Product in order to obtain or maintain Regulatory Approvals;
(c)    prosecuting or defending litigation as permitted by this Agreement;
(d)    complying with applicable court or administrative orders or governmental regulations (including regulations promulgated by securities exchanges); and
(e)    disclosure to Affiliates, Sublicensees (as for Licensee) or Mirati’s other licensees, collaborators employees, consultants, contractors, or agents, on a need to know basis, or to potential Sublicensees (as to Licensee) or other licensees (as to Mirati), or potential acquirers, merger partners other Third Party strategic partners, and their respective professional advisors, in connection with due diligence or similar investigations by such Third Parties in connection with potential business transactions, disclosure to actual or bona-fide potential Third Party investors in confidential financing documents, and disclosure to actual and bona-fide potential Third Party acquirers of such Party, provided, in each case, that any such Affiliate, Sublicensees (as to Licensee) or other licensees (as to Mirati), collaborator, employee, consultant, contractor, agent, or Third Party agrees to be bound by (or is subject to, pursuant to its professional ethical rules) terms of confidentiality and non-use consistent with those set forth in this Article 12.
Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to Section 12.2(c) or 12.2(d), it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use reasonable efforts to secure confidential treatment of such Confidential Information and at least as
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diligently as such Party would use to protect its own confidential information.  In any event, each of the Parties agrees to take all reasonable action to avoid disclosure of the other Party’s Confidential Information hereunder except as needed in furtherance of, and in compliance with the terms of, this Agreement.  Any information disclosed pursuant to Section 12.2(c) or 12.2(d) shall still be deemed Confidential Information and subject to the restrictions set forth in this Agreement, including the foregoing provisions of Article 12.
12.3    Publications.
(a)    Subject to Mirati’s review and approval as set forth below, Licensee shall have the right to publish Clinical Data pertaining to the Compound or any Licensed Product and generated by or on behalf of Licensee from Local Studies in the Licensed Territory pursuant to this Agreement and subject to this Section 12.3.  Mirati shall have the right to review, comment on, and approve any material proposed for disclosure or publication by Licensee regarding any such Clinical Data or results of and other information regarding Licensee’s Development activities with respect to the Compound or any Licensed Product, whether by oral presentation, manuscript, or abstract.  Before any such material is submitted for publication or presentation of the same is made, Licensee shall deliver a complete copy to Mirati at least [***] prior to submitting the material to a publisher or initiating any other disclosure.  Mirati shall review any such material and give its comments to Licensee within [***] of receipt of such material, which comments Licensee shall implement.  With respect to oral presentation materials and abstracts, Mirati shall make reasonable efforts to expedite review of such materials and abstracts, and shall return such items as soon as practicable to Licensee with appropriate comments, if any, but in no event later than [***] from receipt.  Licensee shall comply with Mirati’s request to delete references to its Confidential Information in any such material and agrees to delay any submission for publication or other public disclosure for a period of up to an additional [***] for the purpose of preparing and filing appropriate patent applications.  Licensee shall have no right to publish outside the Licensed Territory (including in any form or media that may be distributed outside the Licensed Territory) or with respect to any Clinical Data generated from any Global Study, in each case, without Mirati’s prior written consent.  
(b)    Subject to Licensee’s review and comment as set forth below, Mirati shall have the right to publish preclinical data and Clinical Data pertaining to the Compound or any Licensed Product that is generated by or on behalf of Licensee or any of its Affiliates or Sublicensees pursuant to this Agreement and subject to this Section 12.3(b).  Licensee shall have the right to review and comment on any material proposed for disclosure or publication by Mirati regarding any such preclinical and Clinical Data, whether by oral presentation, manuscript, or abstract.  Before any such material is submitted for publication or presentation of the same is made, Mirati shall deliver a complete copy to Licensee at least [***] prior to submitting the material to a publisher or initiating any other disclosure.  Licensee shall review any such material and give its comments to Mirati within [***] of receipt of such material, which comments Mirati shall consider in good faith.  With respect to oral presentation materials and abstracts, Licensee shall make reasonable efforts to expedite review of such materials and abstracts, and shall return such items as soon as practicable to Mirati with appropriate comments, if any, but in no event later than [***] s from receipt.  Mirati shall comply with Licensee’s request to delete references to its Confidential Information in any such material and agrees to delay any submission for publication or other public disclosure for a period of up to an additional [***] for
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the purpose of preparing and filing appropriate patent applications.  For clarity, Mirati shall have final decision-making authority for publications reviewed by Licensee under this Section 12.3(b).
12.4    Publicity; Public Disclosures.  The Parties agree to issue a joint press release promptly after the Effective Date, in the form attached as Exhibit 12.4 of this Agreement.  Further, it is understood that each Party may desire or be required to issue subsequent press releases relating to this Agreement or the activities or results hereunder subject to the prior written consent of the other Party; provided, that (a) the Parties hereby agree to consult with each other with respect to the text and timing of any such subsequent press releases concerning activities or results pursuant to this Agreement (other than any activities or results relating to Joint Global Studies), prior to the issuance thereof and (b) a Party may not unreasonably withhold, condition, or delay its consent to any such releases.  Any press releases concerning activities or results relating to Joint Global Studies shall be subject to Mirati’s review and approval, in its sole discretion.  Each Party may also make such disclosures relating to this Agreement or the activities or results hereunder to the extent required by Applicable Laws; provided, that such Party hereby agrees to use reasonable efforts to consult with the other Party with respect to the text and timing of any such disclosure.
12.5    Required Disclosures.  Each Party acknowledges and agrees that the other Party may submit this Agreement to the U.S. Securities and Exchange Commission or any national securities exchange in any jurisdiction (collectively, the “Securities Regulators”), or to other persons as may be required by Applicable Laws, and if a Party does submit this Agreement to any Securities Regulators, or other persons as may be required by Applicable Laws, such Party agrees to reasonably consult and coordinate with the other Party with respect to the preparation and submission of a confidential treatment request for this Agreement.  Notwithstanding the foregoing, if a Party determines that it is required by Applicable Laws or any Securities Regulator to make a disclosure of the terms of this Agreement in a filing or other submission as required by Applicable Laws or Securities Regulators, then such Party will have the right to make such disclosure at the time and in the manner reasonably determined by its counsel to be required by Applicable Laws or Securities Regulator subject to this Section 12.5.  Each Party shall:  (a) provide copies of the proposed disclosure to the other Party reasonably in advance of such filing or other disclosure under the circumstances, (b) promptly notify the other Party in writing of such requirement and any respective timing constraints, and (c) give the other Party a reasonable time under the circumstances from the date of notice by such Party of the required disclosure to comment upon and request confidential treatment for such disclosure; provided, that, the other Party shall promptly review and provide comments regarding the proposed disclosure and the disclosing Party will in good faith consider incorporating such comments.
12.6    Prior Confidentiality Agreement.  As of the Effective Date, the terms of this Article 12 shall supersede any prior non-disclosure, secrecy, or confidentiality agreement between the Parties (or their Affiliates) dealing with the subject of this Agreement, including the Confidentiality Agreement.  Any information disclosed pursuant to any such prior agreement shall be deemed Confidential Information for purposes of this Agreement.
12.7    Equitable Relief.  Given the nature of the Confidential Information and the competitive damage that a Party would suffer upon unauthorized disclosure, use, or transfer of its Confidential Information to any Third Party, the Parties agree that monetary damages may not be a sufficient remedy for any breach of this Article 12.  In addition to all other remedies, a Party
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shall be entitled to seek to obtain specific performance and injunctive and other equitable relief as a remedy for any breach or threatened breach of this Article 12.
13.    REPRESENTATIONS, WARRANTIES AND COVENANTS
13.1    Mutual Representations and Warranties.  Each Party represents and warrants to the other Party that, as of the Effective Date:  (a) it is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof; (b) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate, partnership or member action; and (c) this Agreement is legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument, or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation of any court, governmental body, or administrative or other agency having jurisdiction over it.
13.2    Mutual Covenants.
(a)    Employees, Consultants, and Contractors.  Each Party covenants that it has obtained or will obtain written agreements from each of its employees, consultants, and contractors who perform Development activities pursuant to this Agreement, which agreements will obligate such persons to obligations of confidentiality and non-use and to assign inventions in a manner consistent with the provisions of this Agreement.
(b)    Debarment.  Each Party represents, warrants, and covenants to the other Party that it is not debarred or disqualified under the U.S. Federal Food, Drug and Cosmetic Act, as may be amended, or comparable laws in any country, Region, or jurisdiction other than the U.S., and it does not, and will not during the Term, knowingly employ or use the services of any person who is debarred or disqualified in connection with any activities relating to any Licensed Product.  In the event that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing services to such Party, including the Party itself or its Affiliates or Sublicensees (as to Licensee) or other licensees (as to Mirati), that directly or indirectly relate to activities contemplated by this Agreement, such Party shall immediately notify the other Party in writing and such Party shall cease employing, contracting with, or retaining any such person to perform any such services.
(c)    Each Party covenants that all manufacture and Development (including non-clinical studies) related to the Compound or any Licensed Product conducted on behalf of such Party or its Affiliates will be conducted in accordance with all Applicable Laws, including cGCP, cGLP and cGMP.
(d)    Each Party represents, warrants, and covenants that, (i) at the time it delivers the written notice to the other Party in accordance with Section 5.4(f) confirming its Control and rights with respect to a Joint Global Study, it Controls and may grant and provide to, and, (ii) during the remainder of the Term, it will Control, grant a license, and provide to, in each case of (i) and (ii), the other Party the Reference Data, Regulatory Filings, and any other Know-How or
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Patents resulting from the conduct of such Joint Global Study in such Party’s territory as Licensed Technology or Licensee Technology, as applicable, in accordance with the terms of this Agreement (including Sections 2.1, 4.1, 4.2, 5.8, 6.3(b), and 6.3(d)).  For clarity, a Party shall not be deemed to have breached this covenant if such Party fails to provide the other Party with a portion of Reference Data, Regulatory Filings, or any other Know-How or Patents resulting from the conduct of such Joint Global Study in such Party’s territory as Licensed Technology or Licensee Technology, provided that, upon the other Party’s request to do so, the first Party shall reasonably promptly provide such missing item or items to the other Party.
(e)    Compliance.
(i)    In the performance of its obligations under this Agreement, each Party shall comply, and shall cause its and its Affiliates’ employees and contractors to comply with all Applicable Laws.
(ii)    Each Party, and its and its Affiliates’ employees and contractors, shall not, and Licensee will ensure that its Sublicensee’s shall not, in connection with the performance of this Agreement, directly or indirectly through Third Parties, pay, promise, or offer to pay, or authorize the payment of, any money or give any promise or offer to give, or authorize the giving of anything of value to any Public Official or other person or entity for the purpose of obtaining or retaining business for or with, or directing business to, any person, including, without limitation, either Party, or with respect to Licensee any Sublicensee (it being understood that, without any limitation to the foregoing, such Party, and to its knowledge, its and its Affiliates’ employees and contractors, has not directly or indirectly promised, offered, or provided any corrupt payment, gratuity, emolument, bribe, kickback, illicit gift or hospitality, or other illegal or unethical benefit to a Public Official or any other person or entity in connection with the performance of such Party’s obligations under this Agreement, and shall not, directly or indirectly, engage in any of the foregoing).
(iii)    In connection with the performance of its obligations under this Agreement, each Party shall comply and shall cause its and its Affiliates’ employees and contractors to comply with such Party’s own anti-corruption and anti-bribery policy, a copy of which shall be provided to the other Party upon such other Party’s written request.
(iv)    Each Party will have the right, upon reasonable prior written notice and during the other Party’s regular business hours, to audit such other Party’s books and records in the event that the first Party reasonably and in good faith suspects that a violation of any of the representations, warranties, or covenants in this Section 13.2(e) has occurred.
(v)    In the event that a Party has violated or been suspected of violating any of the representations, warranties, or covenants in this Section 13.2(e), such Party will cause its or its Affiliates’ personnel or others working under its direction or control to submit to periodic training regarding anti-corruption law compliance.
(vi)    Each Party will, at the other Party’s written request, but no more frequently than [***], certify to such other Party in writing such Party’s
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compliance, in connection with the performance of such Party’s obligations under this Agreement, with the representations, warranties, or covenants in this Section 13.2(e).
13.3    Additional Mirati Representations, Warranties, and Covenants.  Mirati represents, warrants, and covenants to Licensee that as of the Effective Date:
(a)    To the Knowledge of Mirati, all Licensed Patents existing as of the Effective Date are listed on Exhibit 1.84;
(b)    To Mirati’s Knowledge, (i) all Licensed Patents, are subsisting and in good standing and being diligently prosecuted in the respective patent offices in accordance with Applicable Laws, and have been filed and maintained properly and correctly and all applicable fees have been paid on or before the due date for payment; and (ii) all issued Licensed Patents are valid and enforceable;
(c)    Mirati has not received written notice, including from any Third Party, that the Development of Compound or Licensed Product conducted by or on behalf of Mirati or its Affiliates infringes or misappropriates any Patents or other intellectual property rights of any Third Party in the Licensed Territory;
(d)    Mirati owns or is the exclusive licensee of the rights, title, and interest in and to the Licensed Patents, and have the right to grant the licenses to Licensee set forth in Section 2.1 of this Agreement;
(e)    Neither Mirati nor any of its Affiliates has granted any right or license to any Third Party relating to any of the Licensed Patents or Licensed Know-How that conflicts with, or limits the scope of, any of the rights or licenses granted to Licensee hereunder;
(f)    Neither Mirati nor any of its Affiliates has granted any mortgage, pledge, claim, security interest, encumbrance, lien or other charge of any kind on the Licensed Patents or Licensed Know-How in the Licensed Territory, and the Licensed Patents and Licensed Know-How are free and clear of any mortgage, pledge, claim, security interest, encumbrance, lien or charge of any kind in the Licensed Territory;
(g)    No legal claim or action has been brought or, to Mirati’s Knowledge, threatened against Mirati by any Third Party alleging that the Licensed Patents are invalid or unenforceable and no Licensed Patent is the subject of any interference, opposition, cancellation, or other protest proceeding;
(h)    There are no pending legal actions, claims, suits, or proceedings against Mirati or any of its Affiliates, at law or in equity, or before or by any Regulatory Authority or other government authority in the Licensed Territory, and neither Mirati nor any of its Affiliates has received any written notice regarding any pending or threatened legal actions, claims, suits, or proceedings against Mirati, at law or in equity, or before or by any Regulatory Authority or other government authority in the Licensed Territory, in either case with respect to the Licensed Patents or the Development of the Compound or any Licensed Product;
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(i)    Mirati (and any of its Affiliates and to Mirati’s Knowledge, Third Parties acting under its authority) has complied in all material respects with all Applicable Laws and applicable governmental regulations and industrial standards (including GLP, GCP, and GMP) in connection with the Development, manufacture, storage and disposition of the Compound and Licensed Product (including information and data provided to Regulatory Authorities);
(j)    All Upstream Agreements as of the Effective Date are listed in Exhibit 1.145. With respect to each Upstream Agreement in existence as of the Effective Date, (i) it is in full force and effect; (ii) neither Mirati nor any of its Affiliates is in breach thereof in a manner that could result in the termination of any rights that are sublicensed to Licensee hereunder; (iii) neither Mirati nor any of its Affiliates has received any notice of breach or notice of threatened breach thereof, or any request of a material amendment of, or the termination of any Upstream Agreement; and (iv) neither Mirati nor any of its Affiliates is aware of any other facts that would result in a material amendment or termination of the Upstream Agreement.
(k)    Mirati and its Affiliates (i) will not breach the terms and conditions of each Upstream License in a manner that could result in termination of any rights that are sublicensed to Licensee hereunder; (ii) will ensure that the Upstream Agreements are in full force and effect for so long as any Licensed Technology licensed to Mirati under such Upstream Agreements are necessary or reasonably useful for the Exploitation of the Compound or any Licensed Products in the Field in the Licensed Territory; (iii) will provide prompt notice to Licensee of its receipt of any written notice that alleges breach or default by Mirati of, requests a material amendment of, or termination of any Upstream Agreement in a manner that could result in termination of any rights that are sublicensed to Licensee hereunder and provide to Licensee a copy of each of the foregoing and any amendment to any Upstream Agreement; and (iv) during the Term, will not amend, modify or terminate any Upstream Agreements in a manner that would terminate rights that are sublicensed to Licensee hereunder or otherwise diminish the scope or exclusivity of the licenses granted to Licensee under the technology licensed to Licensee hereunder.
13.4    Additional Licensee Covenant.  Neither Licensee nor any of its Affiliates (or any of their respective Sublicensees, employees and contractors), in connection with the exercise of Licensee’s rights or performance of Licensee’s obligations under this Agreement, shall knowingly cause Mirati to be in violation of any applicable U.S. or foreign export control laws and regulations.
13.5    Disclaimer.  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, EACH PARTY MAKES NO AND EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE PRODUCTS, PATENTS, KNOW-HOW, OR ANY OTHER SUBJECT MATTER OF THIS AGREEMENT, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.  EXCEPT TO THE EXTENT EXPRESSLY PROVIDED FOR HEREIN, NOTHING IN THIS AGREEMENT WILL BE CONSTRUED AS A REPRESENTATION OR WARRANTY BY MIRATI THAT THE LICENSED PATENTS OR LICENSED KNOW-HOW IS NOT INFRINGED BY ANY THIRD PARTY OR THAT THE PRACTICE OF SUCH RIGHTS DOES NOT INFRINGE ANY PUBLISHED INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD
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PARTY.  Without limiting the generality of the foregoing, (a) neither Party represents or warrants that any data obtained from conducting clinical trials in one country, Region or jurisdiction will comply with the laws and regulations of any other country, Region or jurisdiction, and (b) neither Party represents or warrants the success of any study or test conducted pursuant to this Agreement or the safety or usefulness for any purpose of the technology it provides hereunder.
14.    INDEMNIFICATION AND LIMITATION OF LIABILITY
14.1    Indemnification by Licensee.  Licensee hereby agrees to defend, indemnify, and hold harmless Mirati and its Affiliates, and their respective directors, officers, employees and agents (each, a “Mirati Indemnitee”) from and against any and all liabilities, judgments, damages, expenses, and losses, including reasonable legal expenses and attorneys’ fees, (collectively, “Losses”) to which any Mirati Indemnitee may become subject as a result of any claim, demand, allegation, suit, action, or other proceeding (each, a “Claim”) by any Third Party against any Mirati Indemnitee to the extent such Losses arise directly or indirectly out of:  (a) the Development, manufacture, use, handling, storage, sale, offer for sale, import, export or other Commercialization (including Co-Commercialization) of the Compound or any Licensed Product by Licensee or its Affiliates or Sublicensees (excluding, for clarity, Mirati and its Affiliates and their licensees); (b) the breach by Licensee or its Affiliate or Sublicensee of any warranty, representation, covenant, or agreement made by Licensee in this Agreement; or (c) the negligence or willful misconduct of any Licensee Indemnitee; except in each case (a)-(c) above to the extent such Losses or Claim arise out of any activity by Mirati or a Mirati Indemnitee, as applicable, within the criteria set forth in Section 14.2(a)-(d) for which Mirati is obligated to indemnify Licensee under Section 14.2.
14.2    Indemnification by Mirati.  Mirati hereby agrees to defend, indemnify, and hold harmless Licensee and its Affiliates, and their respective directors, officers, employees, and agents (each, a “Licensee Indemnitee”) from and against any and all Losses to which any Licensee Indemnitee may become subject as a result of any Claim by any Third Party against a Licensee Indemnitee to the extent such Losses arise out of:  (a) the Development, manufacture, or if Mirati Exercises the Co-Commercialization Option, Co-Commercialization, of the Compound or any Licensed Product by Mirati or any of its Affiliates or sublicensees (excluding, for clarity, Licensee and its Affiliates and their licensees) in the Licensed Territory; (b) the development, manufacture, use, handling, storage, sale, offer for sale, import, export or other commercialization of the Compound or any Licensed Product by Mirati or any of its Affiliates or sublicensees (excluding, for clarity, Licensee and its Affiliates and their licensees) outside the Licensed Territory; (c) the breach by Mirati of any warranty, representation, covenant, or agreement made by Mirati in this Agreement; or (d) the negligence or willful misconduct of any Mirati Indemnitee; except in each case (a)-(d) above to the extent such Losses or Claim arise out of any activity set forth in Section 14.1 (a)-(c) for which Licensee is obligated to indemnify Mirati under Section 14.1.
14.3    Indemnification Procedures for Claims.  The Party claiming indemnity under Section 14.1 or 14.2, either on behalf of itself or its Indemnified Party, with respect to a particular Third Party Claim against such Indemnified Party, shall give written notice to the Party from whom indemnity hereunder is being sought (the “Indemnifying Party”, as to such Claim) promptly after learning of such Claim, however, that the failure or delay by an Indemnified Party to give such notice of a Claim shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been prejudiced as a result of such failure or delay to give notice.
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The Indemnified Party shall provide the Indemnifying Party with reasonable assistance, at the Indemnifying Party’s expense, in connection with the defense of the Claim for which indemnity is being sought.  The Indemnified Party (and including such Party) may participate in and monitor such defense with counsel of its own choosing at its own expense; provided, however, that the Indemnifying Party shall have the right to assume and conduct the defense of the Claim with counsel of its choice.  The Indemnifying Party shall not settle any such Claim without the prior written consent of the Indemnified Party (such consent not to be unreasonably withheld, conditioned, or delayed), unless the settlement involves only the payment of money, and no admission of wrong-doing or fault by the Indemnified Party.  So long as the Indemnifying Party is actively defending the Claim in good faith, the Indemnified Party shall not settle any such Claim without the prior written consent of the Indemnifying Party.  If the Indemnifying Party does not assume and conduct the defense of the Claim as provided above, (i) the Indemnified Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to the Claim in any manner the Indemnified Party may deem reasonably appropriate, all at Indemnifying Party’s cost and expense (and the Indemnified Party need not consult with, or obtain any consent from, the Indemnifying Party in connection therewith), and (ii) the Indemnifying Party will remain responsible to indemnify and hold harmless the Indemnified Party as provided in this Article 14.
14.4    Insurance.  Each Party, at its own expense, shall maintain product liability and other appropriate insurance (or self-insure) during the Term and for [***] thereafter in an amount consistent with sound business practice and industry standards, and reasonable in light of the risks involved in its activities hereunder and its obligations under this Agreement.  Each Party shall provide a certificate of insurance (or evidence of self-insurance) evidencing such coverage to the other Party upon request.
14.5    Limitation of Liability.  NEITHER PARTY NOR ANY OF ITS AFFILIATES WILL BE LIABLE TO THE OTHER PARTY OR ITS AFFILIATES UNDER ANY CONTRACT, WARRANTY, NEGLIGENCE, TORT, STRICT LIABILITY, OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, MULTIPLIED, LOST PROFITS, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.  Notwithstanding the foregoing, the limitation of liability set forth in this Section 14.5 shall not apply to the extent such liability (a) is subject to indemnification under Section 14.1 or 14.2 or (b) arises in connection with a Party’s (i) gross negligence or willful misconduct or (ii) breach of its confidentiality obligations under Article 12.
15.    TERM AND TERMINATION; CESSATION OF DEVELOPMENT
15.1    Term.  The term of this Agreement shall commence on the Effective Date and, unless earlier termination of the Agreement as provided in this Article 15 or by mutual written agreement of the Parties, shall continue until it expires as follows (the “Term”):  (a) on a Licensed Product-by-Licensed Product basis and on a Region-by-Region basis in the Licensed Territory, at the end of the applicable Royalty Term under this Agreement for each Licensed Product, (b) with respect to any Licensed Product for which a Co-Commercialization Option has been exercised pursuant to Section 7.4, on a Region-by-Region basis, the end of the Co-Commercialization Term,
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and (c) in its entirety, upon the expiration of all payment obligations under this Agreement with respect to all Licensed Product in all Regions in the Licensed Territory.
15.2    Termination of Agreement.
(a)    Unilateral Right to Terminate.  Licensee may terminate this Agreement at any time by providing not less than twelve (12) months’ prior written notice to Mirati.
(b)    Breach.
(i)    Breach Notice; Cure Period.  Each Party shall have the right to terminate this Agreement upon written notice to the other Party if such other Party materially breaches this Agreement and, after receiving written notice from the non-breaching Party identifying such material breach in reasonable detail (herein, “Breach Notice”), fails to cure such material breach within [***] from the date of such Breach Notice.  Notwithstanding the foregoing, if such material breach (other than any payment breach), by its nature, is curable, but is not reasonably curable within the applicable cure period and the breaching Party provides a written plan for curing such breach to the non-breaching Party, then such [***] cure period will be extended for as long as the breaching Party uses Commercially Reasonable Efforts to cure such breach in accordance with such written plan, but for no longer than an additional [***].
(ii)    Dispute.  If the allegedly breaching Party reasonably and in good faith disagrees that there has been a material breach (that is the subject of the Breach Notice pursuant to this Section 15.2(b)) then the Party that disputes that there has been a material breach may contest the allegation by referring such matter, within [***] following receipt of such Breach Notice, for resolution to the Parties’ Chief Executive Officers, who will meet promptly to discuss the matter and determine, within [***] following referral of such matter, whether or not a material breach has occurred pursuant to this Section 15.2(b).  If the Chief Executive Officers are unable to resolve such dispute within such [***] period after it is referred to them, (i) the matter and alleged breach will be resolved as provided in Article 16; (ii) the cure period with respect thereto will be tolled through the resolution of such dispute in accordance with the applicable provisions of this Agreement so long as the alleged breaching Party is in good faith participating in the dispute resolution proceedings under Article 16; (iii) this Agreement shall not be terminated and during the pendency of such dispute, all of the terms and conditions of this Agreement will remain in effect and the Parties will continue to perform all of their respective obligations hereunder; (iv) if it is ultimately determined under the dispute resolution process that the breaching Party committed such material breach, then the breaching Party will have the right to cure such material breach for a period not to exceed [***] from the date of such determination, and if such material breach is cured by the breaching Party prior to the end of such period, the Agreement shall remain in force (subject to all other terms and conditions), and if not, the other Party may terminate the Agreement on written notice; and (v) if it is ultimately determined under the dispute resolution process that the allegedly breaching Party did not commit such material breach, then the Agreement shall remain in force (subject to all other terms and conditions).
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(c)    Bankruptcy.  Each Party shall have the right to terminate this Agreement in its entirety upon written notice to the other Party if the other Party makes a general assignment for the benefit of creditors, files a petition under bankruptcy or insolvency, petitions for or acquiesces in the appointment of any receiver, trustee, or similar officer to liquidate or conserve its business or any substantial part of its assets, commences under the laws of any jurisdiction any proceeding involving its insolvency, bankruptcy, reorganization, adjustment of debt, dissolution, liquidation, or any other similar proceeding for the release of financially distressed debtors or becomes a party to any proceeding or action of the type described above.
(d)    Patent Challenge.  If Licensee or its Affiliate conducts or materially participates in any Patent Challenge (as defined below), then Mirati may terminate this Agreement on written notice, unless all such Patent Challenge activities are permanently ceased and terminated within [***] of Licensee’s receipt of such notice from Mirati.  As used herein, a “Patent Challenge” means any direct or indirect through the actions of another person acting on Licensee’s or its Affiliate’s or Sublicensee’s behalf dispute or challenge by Licensee or its Affiliate or Sublicensee, or any willful assistance (other than as compelled by subpoena or other legal process) by Licensee or its Affiliate or Sublicensee in the dispute or challenge by another person or entity, of the validity, patentability, or enforceability of any Licensed Patent, or any equivalent Patent of Mirati outside the Licensed Territory, or any claim thereof, or opposition or assistance in the opposition of the grant of any letters patent within the Licensed Patents, or any equivalent Patent of Mirati outside the Licensed Territory, in any legal or administrative proceedings in a court of law, before any patent office or other similar agency or tribunal with appropriate jurisdiction in any country, Region, territory or jurisdiction, including by reexamination, inter partes review, opposition, interference, post-grant review, nullity proceeding, preissuance submission, third party submission, derivation proceeding or declaratory judgment action.  If any Sublicensee of Licensee or its Affiliate conducts or materially participates in any Patent Challenge (as defined above), then Mirati may terminate this Agreement on written notice, unless (i) such Patent Challenge activities are permanently ceased and terminated within [***] of Licensee’s receipt of such notice from Mirati, (ii) Licensee or its Affiliate terminates the applicable Sublicense Agreement in accordance with Section 2.2 within [***] of Licensee’s receipt of such written notice from Mirati, or (iii) such Patent Challenge is based solely on the scope of a Licensed Patent or whether a claim therein qualifies as a Valid Claim and was made in defense of a breach claim first brought by Mirati against Licensee or its Affiliates.
(e)    Termination for Mutual Agreement.  This Agreement may be terminated by the Parties’ mutual written agreement.
15.3    Consequences of Termination.  Upon any termination of this Agreement under Section 15.2 for any reason:
(a)    License Grants to Licensee.  The licenses granted by Mirati to Licensee pursuant to Section 2.1 shall automatically terminate and Licensee shall have no further right to use or cross-reference Mirati’s Regulatory Approvals and Regulatory Filings or to use Licensed Technology for any purpose.
(b)    License Grants to Mirati.  The licenses granted by Licensee to Mirati in Section 2.4 and 6.3(d)(i) shall continue in full force and effect following such termination.
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(c)    Reversion Licenses.  Effective upon the effective date of termination of this Agreement, Licensee hereby grants to Mirati an exclusive, fully-paid, perpetual, irrevocable, royalty-free, with the right to grant multiple tiers of sublicenses, under the Licensee Know-How, Licensee Patents to Develop, manufacture and Commercialize the Compound and any Licensed Products in the Field in the Licensed Territory.
(d)    Regulatory Materials; Data.
(i)    Within [***] of the effective date of such termination, to the extent permitted under Applicable Laws, (A) Licensee shall transfer and assign to Mirati, all Regulatory Filings, Regulatory Approvals, Regulatory Exclusivity, copies of material correspondence and conversation logs, pre-clinical and clinical study reports, clinical study protocols, and all pharmacovigilance data (including all adverse event databases) Controlled by Licensee relating to any Licensed Product in the Licensed Territory, and (B) Licensee shall take all steps necessary to transfer ownership of all such assigned Regulatory Filings, Regulatory Approvals and Regulatory Exclusivity to Mirati, including submitting to each applicable Regulatory Authority a letter or other necessary documentation (with a copy to Mirati) notifying such Regulatory Authority of the transfer of such ownership of each Regulatory Filing, Regulatory Approval and Regulatory Exclusivity.  In addition, at Mirati’s request, Licensee shall provide Mirati with reasonable assistance with any additional inquiries and correspondence with Regulatory Authorities regarding any Licensed Product in the Licensed Territory for up to [***] after such termination.
(ii)    Licensee shall grant to Mirati a right of reference under all Regulatory Filings, Regulatory Approvals and Regulatory Exclusivity for any Licensed Products that are Controlled by Licensee or its Affiliates or Sublicensees, unless and until assigned to Mirati pursuant to Section 15.3(d)(i).
(e)    Know-How Transfer.  Licensee shall provide reasonable consultation and assistance for a period of no more than [***] for the purpose of disclosing and providing to Mirati, all Licensee Know-How not already in Mirati’s possession that is relevant to the Compound and any Licensed Product.
(f)    Development Wind-Down.  Licensee shall, as directed by Mirati, either (i) complete or wind-down in an orderly fashion any ongoing Development activities (including any Clinical Trials) with respect to any Licensed Product in the Licensed Territory, and thereafter comply with subclause (ii), or (ii) promptly transfer all Development activities to Mirati or its designee, in any case in compliance with all Applicable Laws.
(g)    Commercial Wind-Down.      If at the time of termination any Licensed Products are being Commercialized in the Licensed Territory, then Licensee shall, as directed by Mirati, (i) continue certain ongoing Commercialization activities with respect to such Licensed Products in the Licensed Territory for a period of up to [***] as determined by Mirati, or (ii) hand off all, or specified, Commercialization activities to Mirati or its designee, on a timetable to be set by Mirati, not to exceed [***], in each case in compliance with all Applicable Laws.  During such commercial wind-down period, Licensee shall continue to book sales and pay royalties to Mirati in accordance with Section 9.3, except as otherwise specified by Mirati.  Except
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as necessary to conduct the foregoing activities as directed by Mirati or to exercise its rights to sell inventories for the Sell-Off Period stipulated in Section 15.3(j), Licensee shall immediately discontinue its (and shall ensure that its Affiliates and Sublicensees immediately discontinue their respective) promotion, marketing, offering for sale, and servicing of the Licensed Products.  In addition, Licensee shall immediately assign and transfer to Mirati all of Licensee’s rights, title, and interests in and to all samples, demonstration equipment, sales materials, catalogs, promotional materials, training materials, medical education materials, packaging and labeling, and all other literature, information or similar materials related to the Licensed Products in Licensee’s possession or control and copyrights and any registrations for the foregoing, at Licensee’s costs of goods at the end of the Sell-Off Period.
(h)    Transition Assistance.  Licensee shall seek an orderly transition of the Development and Commercialization of the Compound and Licensed Products in the Licensed Territory to Mirati or its designee.  Licensee shall provide reasonable consultation and assistance after termination for the purpose of transferring or transitioning to Mirati or its designee all then-existing development and commercial arrangements, including assignment of Licensee’s Third Party contracts to Mirati as Mirati shall require, relating to the Licensed Products that Licensee is able to transfer or transition to Mirati or its designee, in each case, to the extent reasonably necessary or useful for Mirati or its designee to continue the Development or Commercialization of the Compound and Licensed Products in the Licensed Territory.  If any such contract between Licensee and a Third Party is not assignable to Mirati or its designee (whether by such contract’s terms or because such contract does not relate specifically to the Licensed Products) but is otherwise reasonably necessary or useful for Mirati or its designee to continue the Development or Commercialization of the Compound and Licensed Products in the Licensed Territory, or if Licensee is performing such work for the Compound and Licensed Product itself (and thus there is no contract to assign), then Licensee shall reasonably cooperate with Mirati to negotiate for the continuation of such services for Mirati from such entity, or Licensee shall continue to perform such work for Mirati, as applicable, for up to [***] after termination at Mirati’s cost until Mirati establishes an alternate, validated source of such services.
(i)    Supply Obligations.  Unless and until the necessary Third Party manufacturing agreements are assigned to Mirati pursuant to the preceding sentences, or if Licensee manufactures the Licensed Products itself (and thus there is no contract to assign), Licensee shall: (i) to the extent allowable under such agreements, assign to Mirati or its Affiliates the portion of Licensee’s agreement(s) with its Third Party manufacturing provider related to the Licensed Product(s), or alternatively, use Commercially Reasonable Efforts to facilitate Mirati’s entering into a direct supply agreement with such Third Party manufacturing provider of Licensed Product(s) on comparable terms to those between Licensee and such Third Party manufacturing provider (in each case assuming Licensee is then obtaining supply of Licensed Products from a Third Party manufacturing provider) and (ii) to the extent Licensee or its Affiliate is producing its own supply of the Licensed Products, supply such bulk finished Licensed Product, as applicable, to Mirati for a reasonable period [***].  The cost to Mirati for such supply shall be [***] of Licensee’s Manufacturing Cost for such Licensed Products.  Without limiting the foregoing, in either case Mirati shall additionally have the right to immediately have Licensee commence the transfer of the manufacturing process for such Licensed Product(s) to Mirati or its designee.
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(j)    Remaining Inventories.  Unless this Agreement is terminated by Mirati pursuant to Section 15.2(b), Licensee will have the right, for a period of [***] following termination of this Agreement, to sell or otherwise dispose of any Licensed Products in the Licensed Territory on hand at the time of such termination or in the process of manufacturing(the “Sell-Off Period”).  Upon the expiration of the Sell-Off Period, if applicable, Mirati shall have the right, at its discretion, to purchase from Licensee or its Affiliates any or all of the inventory of the Licensed Products held by Licensee or its Affiliates as of the date of termination at a price equal to [***] of either (i) the transfer price paid by Licensee or its Affiliates to acquire such inventory from Mirati, or (ii) Licensee’s Manufacturing Cost for such inventory of Licensed Product, as applicable.  Mirati shall notify Licensee within [***] after the date of termination whether Mirati elects to exercise such right.
(k)    Trademarks.  Licensee shall promptly assign and transfer to Mirati all of Licensee’s rights, title, and interest (including all goodwill and related rights) in and to trademarks pertaining to all Licensed Products that are owned by Licensee (or its Affiliate or Sublicensee) and used for such Licensed Products in the Field in the Licensed Territory, but not any house marks, or logos or any trademark of Licensee or its Affiliates, containing the word “Zai” or any such Affiliate.
(l)    Further Actions.  Licensee shall execute all documents and take all such further actions as may be reasonably requested by Mirati to give effect to the foregoing subsections (c) – (k).
(m)    Transition Costs.  Except as otherwise stipulated in each relevant Sections, Mirati will reimburse Licensee for the internal and external costs incurred in performing such transition activities or providing such assistance under Sections 15.3(d), 15.3(f) through 15.3(i), 15.3(k), 15.3(h) and 15.3(l), unless this Agreement is terminated by Mirati in accordance with Section 15.2(b) or Section 15.2(d) or by Licensee in accordance with Section 15.2(a).  
(n)    Rights in Bankruptcy.  The Parties acknowledge that this Agreement constitutes an executory contract under Section 365 of the Code for the license of “intellectual property” as defined under Section 101 of the Code and constitutes a license of “intellectual property” for purposes of any similar laws in any other country.  The Parties further acknowledge that each Party, as licensee of certain rights and licenses under this Agreement, will retain and may fully exercise all of its protections, rights and elections under the Code, including, but not limited to, Section 365(n) of the Code, and any similar laws in any other country.  In the event of the commencement of a bankruptcy proceeding by or against Mirati under the Code and any similar laws in any other country, Licensee will be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and the same, if not already in its possession, will be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon its written request therefor, unless Mirati 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 Mirati upon written request therefor by Licensee, provided Licensee elects to retain its rights under the Agreement in accordance with Section 365(n)(1)(B) of the Code and complies with the requirements of Section 365(n)(2) of the Code.  All rights, powers and remedies of Licensee provided for in this Section
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15.3(n) are in addition to and not in substitution for any and all other rights, powers and remedies now or hereafter existing at law or in equity (including, without limitation, under the Code and any similar laws in any other country).
15.4    Confidential Information.  Upon expiration or termination of this Agreement in its entirety, each Party shall promptly return to the other Party or destroy all records and materials in such Party’s possession or control containing Confidential Information of the other Party; provided that (i) such Party may keep one copy of such materials for archival purposes to be used in connection with the interpretation and enforcement hereof and subject to continuing confidentiality obligations in accordance with Article 12; and (ii) Mirati shall not be required to return or destroy Licensee’s Confidential Information to the extent reasonably necessary or useful for Mirati to continue to Develop, manufacture, and Commercialize the Compound and Licensed Product.
15.5    Survival.  Expiration or termination of this Agreement shall not relieve the Parties of any obligation or right accruing prior to such expiration or termination.  Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under the following provisions of this Agreement shall survive expiration or termination of this Agreement: Section 8.3 (for the [***] specified therein), Section 9.2 (solely with respect to payment obligations accrued prior to such expiration or termination), Section 9.3 (solely with respect to payment obligations accrued prior to such expiration or termination, provided Section 9.3(b) shall only survive upon the expiration of this Agreement or on a Licensed Product-by-Licensed Product and Region-by Region basis, upon the expiration of the Royalty Term and payments to Mirati for such Licensed Product in such Region as stipulated therein), Section 11.1, Section 11.2 through Section 11.5 (solely with respect to Joint Patents), Section 13.5, Section 15.3 through Section 15.7, Article 1, Article 10 (solely with respect to payment obligations accrued prior to such expiration or termination, and for Section 10.5, for the [***] specified therein), Article 12 (for the [***] specified therein), Article 14 (excluding Section 14.4, which Section 14.4 shall only survive for the [***] specified therein), Article 16, Article 17 (as applicable).
15.6    Exercise of Right to Terminate.  The use by either Party hereto of a termination right provided for under this Agreement shall not in and of itself give rise to the payment of damages or any other form of compensation or relief to the other Party with respect thereto; provided, however, that termination of this Agreement shall not preclude either Party from claiming any other damages, compensation, or relief that it may be entitled to upon such termination.
15.7    Damages; Relief.  Subject to Section 15.6, termination of this Agreement shall not preclude either Party from claiming any other damages, compensation, or relief that it may be entitled to upon such termination.
15.8    Cessation of Development of Compound by Mirati.  Mirati may cease all development activities pertaining to Compound outside the Licensed Territory by providing not less than [***] prior written notice to Licensee.  In such case, (a) Mirati’s ongoing obligations (solely to the extent arising after such cessation) under Sections 5.4, 5.6, 5.8, 6.3(b)(ii), and Article 8 (excluding Section 8.5) herein, and under any Clinical Supply Agreement, Licensee Commercial Supply Agreement and Mirati Commercial Supply Agreement,
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as applicable, shall cease and be of no further force or effect (for clarity, Mirati’s obligation to provide Licensee with access or copies to Reference Data, Regulatory Filing, and correspondence generated prior to such cessation shall be unaffected), (b) all Mirati rights under Sections 5.4 shall cease, and (c) this Agreement shall otherwise continue in full force and effect.
16.    DISPUTE RESOLUTION
16.1    Disputes.  In the event of any dispute, controversy, or claim arising out of or in connection with this Agreement, the Parties shall, through their respective Chief Executive Officers or Chief Operating Officers, first meet and attempt to resolve the dispute in face-to-face negotiations unless otherwise mutually agreed to.  This meeting shall occur within [***] after either Party provides notice to the other Party that it wishes to invoke such negotiations.
16.2    Arbitration.  If the Parties are unable to resolve any dispute through such negotiations as are described in Section 16.1, within [***] of notice from a Party about such dispute, then, the dispute shall be resolved by binding arbitration administered by the International Chamber of Commerce (“ICC”) in accordance with the ICC’s then current rules governing commercial disputes as modified herein.
(a)    Within [***] following the commencement of arbitration, each of the Parties shall select a mutually acceptable independent, impartial, and conflicts-free arbitrator to act as an arbitrator, and such two arbitrators shall select a third independent, impartial, and conflicts-free arbitrator who shall serve as the president of the tribunal (such arbitrators, the “Arbitrators”).  None of the Arbitrators may be current or former employees, officers, or directors of either Party or its Affiliates.  Each of the Arbitrators shall have relevant expertise and experience with respect to the matter at issue.
(b)    The place, or legal seat, of arbitration shall be New York, New York.
(c)    After the Arbitrators are appointed, at the earliest convenient date (not to exceed [***] after the Arbitrator’s appointment), the Arbitrators shall convene a preliminary conference with the Parties to fix the schedule for the arbitration and determine the discovery that shall take place.  Discovery is to be completed within [***] of the preliminary conference unless this period of time is extended by the Arbitrator for good cause.  The evidentiary hearing on the merits is to commence within [***] of the discovery cutoff.
(d)    The hearing shall be conducted on no more than [***] unless the Arbitrator determines that the number of witnesses warrants additional hearing days (not to exceed [***]).  The Parties shall each receive equal time during the hearing, using the chess clock approach.  The Arbitrators shall issue a reasoned award, deciding each disputed issue within [***] following completion of the hearing.  The Arbitrator(s) shall have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages.  The arbitral award shall be final and binding, and judgment on the award may be entered in any court having jurisdiction.
(e)    Failure to meet any of the foregoing deadlines will not render the award invalid, unenforceable, or subject to being vacated.  The Arbitrators, however, may impose
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appropriate sanctions and draw appropriate adverse inferences against a Party responsible for the failure to meet any such deadlines.
(f)    Each Party shall bear its own attorneys’ fees, costs, and disbursements arising out of the arbitration, and shall pay an equal share of the fees and costs of the Arbitrators; provided, however, that the Arbitrators shall be authorized to determine whether a Party is the prevailing Party, and if so, to award to that prevailing Party reimbursement for its reasonable attorneys’ fees, costs, and disbursements (including, for example, expert witness fees and expenses, travel expenses, etc.) or the fees and costs of the Arbitrators.
(g)    Any arbitration shall be conducted in English and the Arbitrators shall apply the governing law specified in Section 17.1.
(h)    Except to the extent necessary to confirm or enforce an award or as may be required by law, neither a Party nor any Arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both Mirati and Licensee.  In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute, controversy, or claim would be barred by the applicable statute of limitations.
(i)    Excluded Claims.  As used in this Section 16.2, the term “Excluded Claim” means a dispute, controversy, or claim that concerns (i) the validity, scope, enforceability, or infringement of a patent, trademark, or copyright; (ii) any antitrust, anti-monopoly, or competition law or regulation, whether or not statutory; or (iii) subject to Section 16.3 below, the request for equitable relief.  Disputes regarding Excluded Claims shall be brought in a court of competent jurisdiction in which such patent or trademark rights or copyright was granted or arose, or in which such law or regulation applies, or in which equitable relief is properly sought.
16.3    Court Actions.  Nothing contained in this Agreement shall deny either Party the right to seek, upon good cause, injunctive or other equitable relief from a court of competent jurisdiction in the context of an emergency or prospective irreparable harm, and such an action may be filed and maintained notwithstanding any ongoing dispute resolution discussions or arbitration proceedings.
17.    GENERAL PROVISIONS
17.1    Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding its conflicts of laws principles.  The Parties agree to exclude the application to this Agreement of the United Nations Conventions on Contracts for the International Sale of Goods.
17.2    Entire Agreement; Modification.  This Agreement is both a final expression of the Parties’ agreement and a complete and exclusive statement with respect to all of its terms.  This Agreement supersedes all prior and contemporaneous agreements and communications, whether oral, written, or otherwise, concerning any and all matters contained herein.  This Agreement may only be modified or supplemented in a writing expressly stated for such purpose and signed by authorized representatives of the Parties.
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17.3    Relationship Between the Parties.  The Parties’ relationship, as established by this Agreement, is solely that of independent contractors.  This Agreement does not create any partnership, joint venture, or similar business relationship between the Parties.  Neither Party is a legal representative of the other Party, and neither Party can assume or create any obligation, representation, warranty, or guarantee, express or implied, on behalf of the other Party for any purpose whatsoever.
17.4    Non-Waiver.  The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance.  Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party.
17.5    Assignment.
(a)    Except as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either Party, without the prior written consent of the other Party; provided, however, that either Party may assign or otherwise transfer this Agreement and its rights and obligations hereunder without the other Party’s consent to an Affiliate (for so long as such Person remains an Affiliate), and either Party may assign or otherwise transfer this Agreement without the other Party’s consent in connection with the transfer or sale to a Third Party of all or substantially all of the business or assets of such Party relating to the Compound or any Licensed Product whether by merger, consolidation, divesture, restructure, sale of stock, sale of assets, or otherwise.  The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties specified above, and the name of a Party appearing herein will be deemed to include the name of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this section.  Any assignment not in accordance with this Agreement shall be null and void.
(b)    Notwithstanding anything to the contrary in Section 17.5(a) or elsewhere in this Agreement, Mirati may assign to a Third Party its right to receive all of the milestone payments and the royalty payments owed under Article 9 (such assignment, a “Securitization Transaction”) [***].  Further, in connection with a contemplated Securitization Transaction, Mirati may disclose to such Third Party the terms of this Agreement and the royalty reports contemplated under Section 10.1, [***] to the extent reasonably necessary to enable such Third Party to evaluate the Securitization Transaction opportunity (provided that such Third Party is under obligations of confidentiality and non-use with respect to such Confidential Information that are no less stringent than the terms of Article 12), and to allow such Third Party to exercise its rights under this Section 17.5(b).  As part of any consummated Securitization Transaction, Mirati may assign, [***], its right to receive the royalty reports and to conduct audits under Section 10.1 and Section 10.5 to the counterparty in such Securitization Transaction, and to allow such counterparty to exercise its rights under such Sections; provided that after such assignment Mirati shall have no further right to receive the royalty reports or to conduct audits under Section 10.1 and Section 10.5.
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(c)    Change of Control of a Party.  Notwithstanding anything to the contrary herein, (i) no Patents, Know-How or other intellectual property rights Controlled by an acquiror or successor in a Change of Control of either Party (“Acquiror”) or any of its Affiliates (as such determination of affiliation is made immediately prior to such Change of Control) will be deemed Controlled by a Party for purposes of this Agreement after such Change of Control and (ii) with respect to the Party undergoing a Change of Control, no compounds, products or other assets or subject matter of an Acquiror or any of its Affiliates (as such determination of affiliation is made immediately prior to such Change of Control), including the items listed in clause (i) above, will be subject to the terms of this Agreement, including Section 2.7 so long as such Acquiror Segregates any Competitive Product until the expiration of such Party’s exclusivity obligations in Section 2.7.
17.6    Performance by Affiliates.  Each Party may discharge any obligations (other than the payment obligations set forth under Article 9) and exercise any right hereunder through any of its Affiliates (for so long as such Person remains an Affiliate), without notice to and without consent from, the other Party, and each Party hereby guarantees the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in connection with such performance.
17.7    No Third Party Beneficiaries.  This Agreement is neither expressly nor impliedly made for the benefit of any party other than those executing it, except for the persons expressly entitled to indemnification as provided in Article 14.
17.8    Severability.  If for any reason any part of this Agreement is adjudicated invalid, unenforceable, or illegal by a court of competent jurisdiction, such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Agreement.  All remaining portions shall remain in full force and effect and the Parties will in such an instance use their best efforts to replace the invalid, illegal, or unenforceable provision(s) with valid, legal, and enforceable provision(s) that implement the purposes of this Agreement.
17.9    Notices.  Any notice to be given under this Agreement must be in writing and delivered either in person, by air mail (postage prepaid) requiring return receipt, or by a recognized overnight courier, to the Party to be notified at its address(es) given below, or at any other address such Party may designate by written notice to the other in accordance with this Section 17.9.  Notice shall be deemed sufficiently given for all purposes upon the earliest of the date of actual receipt if personally delivered; if air mailed, [***] after the date of postmark; or if delivered by overnight courier, the next Business Day.
If to Mirati, notices must be addressed to:
Mirati Therapeutics, Inc.
3545 Cray Court
San Diego, CA 92121 USA
Attention:  Chief Executive Officer
Tel:  [***] 
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With a copy (which shall not constitute notice) to:
Mirati Therapeutics, Inc.
3545 Cray Court
San Diego, CA 92121 USA
Attention:  General Counsel and Corporate Secretary
Tel:  [***] 
If to Licensee, notices must be addressed to:
Zai Lab (Hong Kong) Limited
Room 2301, 23/F, Island Place Tower 
510 King’s Road, North Point
Hong Kong
Attention:  Chief Executive Officer
With copies to:
F. Ty Edmondson
Chief Legal Officer
Zai Lab Limited
314 Main Street, 4th Floor
Cambridge, MA 02142
[***] 
+ [***] 
17.10    Force Majeure.  Each Party shall be excused from liability for the failure or delay in performance of any obligation under this Agreement (other than failure to make payment when due) by reason of any event beyond such Party’s reasonable control including acts of God, fire, flood, explosion, earthquake, pandemic illness, or other natural forces, war, civil unrest, acts of terrorism, accident, destruction or other casualty, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, or any other event similar to those enumerated above.  Such excuse from liability shall be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the nonperforming Party has not caused such event(s) to occur and uses reasonable efforts to remove the condition.  The nonperforming Party shall notify the other Party of a failure or delay in performance due to force majeure event within [***] after its occurrence.  All delivery dates under this Agreement that have been affected by force majeure shall be tolled for the duration of such force majeure.  In no event shall any Party be required to prevent or settle any labor disturbance or dispute.
17.11    Interpretation.  The headings of clauses contained in this Agreement preceding the text of the sections, subsections, and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or construction.  All references in this Agreement to the singular shall include the plural where applicable.  Unless otherwise specified, references in this Agreement to any Article shall include all sections, subsections, and paragraphs in such Article, references to any section shall include all subsections and paragraphs in such Section, and references in this Agreement to
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any subsection shall include all paragraphs in such subsection.  The word “including” and similar words means “including without limitation”, and shall not be deemed to limit the generality or breadth of any words or phrase preceding such word.  The word “or” means “and/or” unless the context dictates otherwise because the subjects of the conjunction are mutually exclusive.  The words “herein”, “hereof”, and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section or other subdivision.  All references to days in this Agreement shall mean calendar days, unless otherwise specified.  All references to “will” are interchangeable with the word “shall” and shall be understood to be imperative or mandatory in nature.  Ambiguities and uncertainties in this Agreement, if any, shall not be interpreted against either Party, irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist.  This Agreement has been prepared in the English language and the English language shall control its interpretation.  In addition, all reports, communications, notices required or permitted to be given hereunder, and all written, electronic, oral, or other communications between the Parties regarding this Agreement shall be in the English language or include an English translation, if applicable.
17.12    Counterparts; Electronic or Facsimile Signatures.  This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one instrument.  This Agreement may be executed and delivered electronically and upon such delivery such electronic signature will be deemed to have the same effect as if the original signature had been delivered to the other Party.
17.13    Exhibits and Schedules.  All exhibits or schedules referred to in this Agreement are attached hereto and incorporated herein by this reference.
{Signature Page Follows}
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In Witness Whereof, the Parties hereto have caused this Agreement to be executed and entered into by their duly authorized representatives as of the Effective Date.
						
	Mirati Therapeutics, Inc.	Zai Lab (Hong Kong) Limited
	By:     /s/ Charles M. Baum    
	By:     /s/ Samantha Du    

	Name:    Charles M. Baum, MD, PhD    
	Name:    Samantha Du    

	Title:     CEO    
	Title:     CEO    

			
	

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EXHIBIT 1.41
COMPOUND STRUCTURE
[***]

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EXHIBIT 1.84 
LICENSED PATENTS
																					
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]	[***]	[***]

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        Confidential
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EXHIBIT 1.141 
TARGET
[***] 
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        Confidential
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EXHIBIT 1.145 
UPSTREAM AGREEMENT
[***] 

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EXHIBIT 5.2
CLINICAL DEVELOPMENT PLAN

[***] 

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EXHIBIT 5.4
EXISTING GLOBAL STUDIES
•KRYSTAL-010: A randomized Phase 3 study of adagrasib in combination with cetuximab versus chemotherapy in second-line colorectal cancer (CRC) patients with KRAS G12C mutations
•KRYSTAL-012: A randomized Phase 3 study of adagrasib versus docetaxel in second-line non-small cell lung cancer (NSCLC) patients with KRAS G12C mutations
•[***]
•[***]
•[***]
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*** Certain Confidential Information Omitted.

        Confidential
Execution Version

EXHIBIT 12.4
JOINT PRESS RELEASE
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*** Certain Confidential Information Omitted.

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