Document:

Exhibit

Exhibit 10.3

	
						
	Notice of Grant of Restricted Stock Unit Award
and Award Agreement (Performance-Based)
	 
	SVB FINANCIAL GROUP
ID:  94-2875288
3003 Tasman Drive
Santa Clara, CA 95054
 

	Grant Agreement:

	Participant Name:        <Name>
	 Grant Name:             <MM/DD/YYYY RSU 0.00 
(TEST)>

	Employee Number:        <Emp ID No>
	 Issue Date/Date of Grant:               <Issue Date>

	Total RSUs:        Up to <Amount>
	 Grant Price:               <$**.** USD>

	 
	 Plan:                            <2006 Equity Incentive Plan>

	 
	Vesting Schedule - RSU

	 
	The vesting of the RSUs (as defined below) granted hereunder are both performance-based and time-based, as follows:

•    Performance Condition – [Insert conditions]

•    Time Vesting – To the extent the RSUs are deemed earned, the RSUs will be subject to further vesting and will cliff vest on [       _______  ___, 20___] (the “Vesting Date”) provided the Participant remains a Service Provider as of such Vesting Date (except as otherwise provided in this Award Agreement).

	Vesting Conditions
	Number of RSUs Earned

	[Condition 1]
	0

	[Condition 2]
	<Vest Qty 2>

	[Condition 3]
	<Vest Qty 3>

	[Condition 4]
	<Vest Qty 4>

	

Effective on the Date of Grant listed above, you have been granted an Award of Restricted Stock Units (“RSUs”) under the SVB Financial Group 2006 Equity Incentive Plan, as amended from time to time (the “Plan”).  Unless otherwise defined herein or in the Award Agreement, capitalized terms herein or in the Award Agreement will have the defined meanings ascribed to them in the Plan.
  
RSUs in each period will vest in increments on the dates shown in the Vesting Schedule (“Vesting Dates”), subject to you continuing to be a Service Provider through each such date.  Notwithstanding the foregoing, if your status as a Service Provider terminates as a result of your death or Disability, and such termination occurs prior to the satisfaction of the Performance Condition(s) listed above, then the number of RSUs that will vest upon your termination will be calculated on a pro-rata basis based on the level of achievement of the Performance Condition(s): (i) as of the end of the applicable performance period (for any Performance Condition(s) where the level of achievement is calculated based on Company performance), or (ii) as of the date of your termination (for any Performance Condition(s) where the level of achievement is calculated based on your individual performance), and in either case, with the level of achievement determined by the Company in its sole discretion.  Such pro-rata amount will be calculated based on the number of calendar days that have elapsed between the commencement date of the applicable performance period relating to the Performance Condition(s) listed above and the date of your termination compared to the total number of days in the performance period.   If your status as a Service Provider terminates as a result of your death or Disability, and such termination occurs prior to satisfying the Time Vesting conditions listed above, then 100% of the RSUs subject to Time Vesting will fully vest.  Unless otherwise specified in the Restricted Stock Unit Election Form (the “Election”), the Settlement Dates for the RSUs shall be the Vesting Dates.  Any RSUs that vest in accordance with Section 3 will be paid to you (or in the event of your death, pursuant to Section 6 of the Award Agreement) in whole Shares, less applicable Tax-Related Items.  The Company shall issue to you, on a date within thirty (30) days following the Settlement Date, a number of whole Shares to equal to the vested RSUs.  

The RSUs and any Shares, cash, or other property paid upon settlement of the RSUs will be subject to the terms and conditions of any clawback policy adopted by the Company and as may be in effect from time to time, which will survive your termination as a Service Provider.

 
	
	
	By your acceptance and the Company’s signature below, you and the Company agree that these RSUs are granted under and governed by the terms and conditions of the Company’s 2006 Equity Incentive Plan and this Award Agreement including any country appendix, all of which are attached and made a part of this document.

 
	
			
	 
	 
	 

	SVB Financial Group
	 
	Date

	 
	 
	 

	 
	 
	 

	Participant Name
	 
	Date

SVB FINANCIAL GROUP
GLOBAL RESTRICTED STOCK UNIT AWARD AGREEMENT
1.    Grant.  The Company hereby grants to the Participant under the Plan an Award of the number of RSUs set forth on the first page hereof (the “Notice of Grant”), subject to all of the terms and conditions in this Global Restricted Stock Unit Award Agreement, including any country-specific terms and conditions for your country set forth in the Appendix for Non-U.S. Participants (the “Appendix”) attached hereto as Appendix A (together with the Global Restricted Stock Unit Award Agreement, the “Award Agreement”) and the Plan.
2.    Company’s Obligation.  Each RSU represents the right to receive a share of Common Stock (“Share”) on the date it becomes vested.  Unless and until the RSUs will have vested in the manner set forth in Sections 3 and 4, the Participant will have no right to issuance of Shares in connection with any such RSUs.  Prior to actual payment of any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.  
3.    Vesting Schedule.  Subject to Section 4, the RSUs awarded by this Award Agreement will vest in the Participant according to the vesting schedule set forth on the first page hereof, subject to the Participant continuing to be a Service Provider through the Vesting Date.  Notwithstanding the foregoing, if the Participant’s status as a Service Provider terminates as a result of his or her death or Disability, then some or all of the RSUs subject to this Award may vest as set forth in the Notice of Grant.
4.    Forfeiture upon Termination of Status as a Service Provider.  Notwithstanding any contrary provision of this Award Agreement (but subject to the provisions of Section 3), if the Participant ceases to be a Service Provider for any or no reason (other than due to the Participant’s death or Disability) prior to the Vesting Date, the then-unvested RSUs awarded by this Award Agreement will thereupon be forfeited at no cost to the Company or its Affiliate and the Participant will have no further rights thereunder.
In the event of the Participant’s termination as a Service Provider (regardless of the reason for such termination and whether or not later to be found invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), the Participant’s right to vest in the RSUs under the Plan, if any, will terminate effective as of the date that the Participant is no longer employed by the Participant’s employer (the “Employer”) and any notice period has ended.  For the avoidance of doubt, employment shall include any contractual notice period or period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any.  The Committee shall have the exclusive discretion to determine when the Participant is no longer employed for purposes of the RSUs.
5.    Issuance after Vesting.  Any RSUs that vest in accordance with Section 3 will be settled in whole Shares delivered to the Participant (or in the event of the Participant’s death, pursuant to Section 6 hereof), provided that to the extent determined appropriate by the Company, less any Tax-Related Items (as defined in Section 7 below) withholding.  The Company shall issue such Shares to the Participant within thirty (30) days of the Settlement Date.
6.    Issuance after Death.  Any issuance to be made to the Participant under this Award Agreement will, if the Participant is then deceased, be made to the Participant’s designated beneficiary (provided such beneficiary has been designated prior to the Participant’s death in a form acceptable to the Administrator), or if no beneficiary survives the Participant, the personal representative, administrator or executor of the Participant’s estate.  Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

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7.    Withholding of Taxes.  The Company or one of its Affiliates shall assess tax and social insurance liability and requirements in connection with the Participant’s participation in the Plan, including, without limitation, income tax, social insurance, payroll tax, fringe benefit tax, payment of account or other tax related items related to the Participant’s participation in the Plan and legally applicable to the Participant (the “Tax-Related Items”).  These requirements may change from time to time as laws or interpretations change.  Regardless of the actions of the Company or if different, the Employer, the Participant hereby acknowledges and agrees that the Tax-Related Items liability is and remains the Participant’s responsibility and  liability.
The Participant acknowledges that the Company’s obligation to issue Shares in connection with the RSUs shall be subject to satisfaction of the Tax-Related Items liability.  Unless otherwise determined by the Company or set forth in the Appendix, Tax-Related Items withholding obligations shall be satisfied by having the Company and/or the Employer withhold the cash equivalent of all or a portion of any Shares that otherwise would be issued to the Participant upon settlement of the vested RSUs.  The Company and/or the Employer may withhold or account for Tax-Related Items by considering statutory withholding amounts or other withholding rates, including maximum applicable rates in the Participant’s jurisdiction(s), in which case the Participant may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent amount in Shares.  For tax purposes, the Participant is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares is held back solely for the purpose of paying the Tax-Related Items withholding.  The Company or the Employer may also satisfy the Tax-Related Items withholding liability by deduction from the Participant’s wages or other cash compensation paid to the Participant by the Company or the Employer.  Alternatively, by the Participant’s acceptance of the RSUs, the Participant authorizes and directs the Company or any brokerage firm determined acceptable to the Company to sell on the Participant’s behalf a whole number of Shares from those Shares issued to the Participant as the Company determines to be sufficient to satisfy the obligation for Tax-Related Items.  Finally, the Participant agrees to pay the Company or the Employer any Tax-Related Items withholding liability that cannot be satisfied by deduction from the Participant’s wages or other cash compensation paid to the Participant by the Company or the Employer or sale of the Shares acquired under the Plan.
8.    Dividend Equivalents.  If the Company declares a cash dividend with respect to Shares, the Participant will receive credits equal to the amount of the cash dividends payable on the cash dividend payment date with respect to the number of Shares represented by the RSUs outstanding as of the cash dividend record date.  The credits will be subject to the same terms and conditions that apply to the RSUs (including vesting conditions), such that no payment shall be made to the Participant unless and until the corresponding RSUs have vested in accordance with Section 3.  The credits will be settled in Shares or cash as determined by the Company in its sole discretion on the date the underlying RSUs are settled, subject to the Company’s collection of the Tax-Related Items pursuant to Section 7.  If an RSU is settled before a cash dividend payment date, but after the cash dividend record date, the Participant will be entitled to be paid for the credits that relate to such RSUs on the cash dividend payment date, or as soon as reasonably practicable thereafter.  If the credit is settled in Shares, the number of Shares payable will equal the dollar value of such credits on the settlement date divided by the Fair Market Value of a Share on the settlement date rounded down to the nearest whole Share.  In the event of a dividend or distribution paid in Shares or any other adjustment made upon a change in the capital structure of the Company as described in Section 16 of the Plan, appropriate adjustments will be made to the RSUs so that they represent the right to receive upon settlement any and all new, substituted or additional securities or other property (other than cash dividends) to which the Participant would be entitled by reason of the Shares issuable upon settlement of the RSUs, and all such new, substituted or additional securities or other property will be immediately subject to the same vesting conditions as are applicable to the RSUs.
9.    Rights as Stockholder.  Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a stockholder of the Company in respect of any 

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Shares deliverable hereunder unless and until certificates representing such Shares have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Participant.
10.    Acknowledgements.  The Participant acknowledges and agrees to the following:
		
	•
	the Plan is discretionary in nature and the Administrator may amend, suspend, or terminate it at any time;

		
	•
	the grant of the RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of the RSUs even if the RSUs have been granted in the past;

		
	•
	all determinations with respect to future RSUs or other grants, if any, will be at the sole discretion of the Administrator;

		
	•
	the Participant’s participation in the Plan is voluntary;

		
	•
	the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, holiday pay, pension or retirement or welfare benefits or similar payments;

		
	•
	the future value of the Shares is unknown, indeterminable and cannot be predicted with certainty;

		
	•
	the RSUs and any Shares, cash, or other property paid upon settlement of the RSUs will be subject to the terms and conditions of any clawback policy adopted by the Company and as may be in effect from time to time, which will survive the Participant’s termination as a Service Provider;

		
	•
	no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from the termination of the Participant's employment or other service relationship (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any);

		
	•
	the RSU grant and the Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or services contract with the Company, the Employer or any Affiliate and shall not interfere with the ability of the Company, the Employer or any Affiliate, as applicable, to terminate the Participant’s employment or service relationship (if any);

		
	•
	unless otherwise provided in the Plan or by the Company in its discretion, the RSUs and the benefits evidenced by this Award Agreement do not create any entitlement to have the RSUs or any such benefits transferred to, or assumed by, another company nor be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; and

		
	•
	the following provisions apply only if the Participant is providing services outside the United States:

		
	§
	the RSUs and the Shares subject to the RSUs, and the income from and value of the same, are not part of normal or expected compensation or salary for any purpose; and

		
	§
	neither the Company, the Employer nor any Affiliate shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United 

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States Dollar that may affect the value of the RSUs or of any amounts due to the Participant pursuant to the settlement of the RSUs or the subsequent sale of any Shares acquired upon settlement.

11.    No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares.  The Participant should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
12.    Address for Notices.  Any notice to be given to the Company under the terms of this Award Agreement will be addressed to the Company at 80 E Rio Salado Parkway Suite 600, Tempe, AZ 85281, Attn: Stock Administration, or at such other address as the Company may hereafter designate in writing.
13.    Grant is Not Transferable.  Except to the limited extent provided in Section 6, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.
14.    Binding Agreement.  Subject to the limitation on the transferability of this grant contained herein, this Award Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
15.    Additional Conditions to Issuance of Stock.  If at any time the Company will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any U.S. or non-U.S. local, state, or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company.  Where the Company determines that the issuance of any Shares will violate U.S. or non-U.S. local, state or federal securities laws or other applicable laws, the Company will defer delivery until the earliest date at which the Company reasonably anticipates that the delivery of Shares will no longer cause such violation.  The Company will make all reasonable efforts to meet the requirements of any law or securities exchange and to obtain any such consent or approval of any such governmental authority.  
16.    Plan Governs.  This Award Agreement is subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Award Agreement and one or more provisions of the Plan, the provisions of the Plan will govern.
17.    Administrator Authority.  The Administrator will have the power to interpret the Plan and this Award Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any RSUs have vested).  All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Company and all other interested persons.  No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Award Agreement.

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18.    Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Award Agreement.
19.    Agreement Severable.  In the event that any provision in this Award Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Award Agreement.
20.     Modifications to the Agreement.  This Award Agreement, including the Appendix, and the Plan constitute the entire understanding of the parties on the subjects covered.  The Participant expressly warrants that he or she is not accepting this Award Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Modifications to this Award Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company.  
21.    Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to RSUs awarded under the Plan or future RSUs that may be awarded under the Plan by electronic means or request the Participant’s consent to participate in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.  Electronic execution of this Award Agreement and/or other documents shall have the same binding effect as a written or hard copy signature and accordingly, shall bind the Participant and the Company to all of the terms and conditions set forth in the Plan, this Award Agreement and/or such other documents.
22.    Compliance with Applicable Laws.  The vesting of the RSUs under the Plan and the issuance, transfer, assignment, sale, or other dealings of the Shares shall be subject to compliance by the Company (or any Affiliate) and the Participant with all Applicable Laws.
23.    Language.  The Participant acknowledges that he or she is proficient in the English language, or has consulted with an advisor who is sufficiently proficient in English, so as to allow the Participant to understand the terms and conditions of this Award Agreement.  If the Participant has received this Award Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
24.    Appendix.  Notwithstanding any provisions in this Award Agreement, if the Participant resides outside the United States at any time during the life of the Award, the Participant’s participation in the Plan shall be subject to the Appendix for Non-U.S. Participants attached hereto as Appendix A.  Moreover, if the Participant relocates to one of the countries included in the Appendix, the special terms and conditions will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  The Appendix constitutes part of this Award Agreement.
25.    Governing Law and Venue.  This Award Agreement will be governed by the laws of the State of California, without giving effect to the conflict of law principles thereof.  For purposes of litigating any dispute that arises under this Award of RSUs or this Award Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be conducted in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Award of RSUs is made and/or to be performed.
26.    Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, 

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and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
27.      Insider Trading/Market Abuse Restrictions.  By accepting the RSUs, the Participant acknowledges that he or she is bound by all the terms and conditions of the Company’s insider trading policy as may be in effect from time to time.  The Participant further acknowledges that, depending on the Participant’s or his or her broker’s country or the country in which the Shares are listed, he or she may be subject to insider trading restrictions and/or market abuse laws which may affect the Participant’s ability to accept, acquire, sell or otherwise dispose of Shares, rights to Shares (e.g., RSUs) or rights linked to the value of Shares under the Plan during such times as the Participant is considered to have “inside information” regarding the Company (as defined by the laws in the applicable jurisdictions.  Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before the Participant possessed inside information.  Furthermore, the Participant could be prohibited from (i) disclosing the inside information to any third party, which may include fellow employees and (ii) “tipping” third parties or causing them otherwise to buy or sell securities.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under the Company’s insider trading policy as may be in effect from time to time. The Participant acknowledges that it is the Participant’s responsibility to comply with any applicable restrictions, and the Participant should speak to his or her personal advisor on this matter.
28.     Foreign Asset/Account, Exchange Control and Tax Reporting.  Depending on the Participant’s country, the Participant may be subject to foreign asset/account, exchange control, tax reporting or other requirements which may affect the Participant’s ability acquire or hold RSUs or Shares under the Plan or cash received from participating in the Plan (including dividends and the proceeds arising from the sale of Shares) in a brokerage/bank account outside the Participant’s country.  The applicable laws of the Participant’s country may require that he or she report such RSUs, Shares, accounts, assets or transactions to the applicable authorities in such country and/or repatriate funds received in connection with the Plan to the Participant’s country within a certain time period or according to certain procedures.  The Participant acknowledges that he or she is responsible for ensuring compliance with any applicable requirements and should consult his or her personal legal advisor to ensure compliance with applicable laws.
29.    Waiver.  The Participant acknowledges that a waiver by the Company of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by the Participant or any other participant.

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APPENDIX A
SVB FINANCIAL GROUP
GLOBAL RESTRICTED STOCK UNIT AWARD AGREEMENT

APPENDIX FOR NON-U.S. PARTICIPANTS

Terms and Conditions

This Appendix includes additional terms and conditions that govern the RSUs granted to the Participant under the Plan if he or she is in one of the countries listed below.  If the Participant is a citizen or resident of a country (or are considered as such for local law purposes) other than the one in which the Participant is currently residing and/or working or if the Participant moves to another country after receiving the grant of RSUs, the Company will, in its discretion, determine the extent to which the terms and conditions herein will be applicable to the Participant.  Certain capitalized terms used but not defined in this Appendix have the meanings set forth in the Plan and/or the Award Agreement.

Notifications

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to his or her participation in the Plan.  The information is based on the securities, exchange control, and other laws in effect in the respective countries as of April 2019.  Such laws are often complex and change frequently.  As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of the Participant’s participation in the Plan because the information may be out of date at the time the RSUs vest, the Shares underlying the RSUs are issued or the Participant sells Shares acquired under the Plan.

In addition, the information contained herein is general in nature and may not apply to the Participant’s particular situation, and the Company is not in a position to assure the Participant of a particular result.  Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in his country may apply to the Participant’s situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, or is considered a resident of another country for local law purposes, or if the Participant transfers employment and/or residency to another country after the RSUs have been granted, the notifications contained herein may not be applicable in the same manner.

DATA PRIVACY PROVISIONS APPLICABLE TO PARTICIPANTS IN THE EUROPEAN UNION/EUROPEAN ECONOMIC AREA AND THE UK

To the extent that the Company collects, holds, uses or processes Personal Data (as defined below), it shall do so in accordance with its Privacy Notice for Employees. The following section shall be read so as to incorporate all relevant parts of the Company’s Privacy Notice for Employees:
Personal Data Subject to Processing. In addition to the types of personal data listed in the Privacy Notice for Employees,  the Company collects, processes and uses the following types of personal data about the Participant in connection with this Award Agreement: details of any shares of stock or directorships held in the Company by the Participant, details of all RSUs or any other entitlement to Shares awarded, canceled, 

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settled, vested, unvested or outstanding in the Participant’s favour, which the Company receives from the Participant or the Employer (“Personal Data”).
Purposes and Legal Bases of Processing.  The Company processes the Personal Data in accordance with the Company’s Privacy Notice for Employees. The Participant and the Company acknowledge that such Personal Data shall be controlled and processed by the Company for the purpose of performing its contractual obligations under this Award Agreement, granting RSUs, implementing and administering and managing the Participant’s participation in the Plan and that the Participant’s consent is not required for the collection, use or transfer of that Personal Data.
Stock Plan Administration Service Providers.  In addition to the third parties set out in the Privacy Notice for Employees, the Company transfers Personal Data to Solium Capital, LLC and its affiliated companies (collectively, “Solium”), an independent stock plan administrator with operations, relevant to the Company, in the United States, which assists the Company with the implementation, administration and management of the Plan.  The Company’s stock plan administrator acts as an independent data controller and will open an account for the Participant to receive and trade Shares.  The Participant will be asked to agree on separate terms and data processing practices with the service provider, which is a condition of the Participant’s ability to participate in the Plan.  The Participant understands that the Participant may request a list with the names and addresses of any potential recipients of Personal Data by contacting the Participant’s local human resources representative.

CANADA
Terms and Conditions
The following provisions apply if the Participant is a resident of Quebec:  

Language Consent.

The parties acknowledge that it is their express wish that the Award Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.

Les parties reconnaissent avoir exigé la rédaction en anglais de la convention, ainsi que de tous documents exécutés, avis donnés et procédures judiciaries intentées, directement ou indirectement, relativement à ou suite à la présente convention.

Authorization to Release and Transfer Necessary Personal Information.

The Participant hereby authorizes the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan.  The Participant further authorizes the Company, any Affiliate and the plan administrators to disclose and discuss the Plan with their advisors.  The Participant further authorizes the company and any Affiliate to record such information and to keep such information in the Participant’s employee file.

Notifications
Securities Law Notification.  

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The Participant is permitted to sell Shares acquired under the Plan through the designated broker appointed under the Plan, if any, provided the resale of Shares acquired under the Plan takes place outside of Canada through the facilities of a stock exchange on which the Shares are listed.  The Shares are currently listed on the Nasdaq market in the United States.
Foreign Asset/Account Reporting Information.  
Foreign specified property, including Shares and other rights to receive Shares (e.g., RSUs), must be reported annually on a Form T1135 (Foreign Income Verification Statement) if the total cost of the foreign specified property exceeds CAD100,000 at any time during the year.  Thus, the RSUs must be reported - generally at a nil cost - if the CAD100,000 cost threshold is exceeded because of other foreign specified property.  When Shares are acquired, their cost generally is the adjusted cost base (“ACB”) of the Shares.  The ACB would ordinarily equal the fair market value of the Shares at the time of acquisition, but if other Shares are also owned, this ACB may have to be averaged with the ACB of the other Shares.  The Form T1135 generally must be filed by April 30 of the following year.  The Participant should consult with his or her personal advisor to ensure compliance with the applicable reporting requirements.
CHINA

Terms and Conditions

Unless otherwise required by the State Administration of Foreign Exchange (“SAFE”), the following provisions apply only to Participants who are nationals of the People’s Republic of China (“PRC”) and reside in the PRC, as determined by the Company in its sole discretion.

Issuance After Vesting.
This provision replaces Section 5 of the Award Agreement:
Upon the vesting of RSUs in accordance with Section 3, the Participant (or in the event of the Participant’s death, to his or her estate) shall be paid an amount in local currency through local payroll that is equal in value to the Fair Market Value of the applicable number of whole Shares otherwise issuable at vesting, provided that to the extent determined appropriate by the Company, any Tax-Related Items withholding with respect to such RSUs shall be deducted from the amount of cash otherwise payable to the Participant.

Dividend Equivalents.
This provision supplements Section 8 of the Award Agreement:
To the extent that dividend equivalents shall be credited on RSUs, such credits shall be settled in cash, not in Shares.

GERMANY

Exchange Control Information. 

Cross-border payments in excess of €12,500 must be reported monthly to the German Federal Bank.  No report is required for payments less than €12,500.  In case of payments in connection with securities (including proceeds realized upon the sale of Shares), the report must be filed electronically by the 5th day of the month following the month in which the payment was received. The form of report (“Allgemeine Meldeportal Statistik”) can be accessed via the Bundesbank’s website (www.bundesbank.de) and is available in both German and English.  The Participant is responsible for satisfying the reporting obligation.

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INDIA
Terms and Conditions
Issuance after Vesting.  
The following provision supplements Section 5 of the Award Agreement.
Any RSUs that vest in accordance with Section 3 will be paid in cash to the Participant (or in the event of the Participant’s death, to his or her estate) based on the value equivalent to the number of applicable whole Shares, provided that to the extent determined appropriate by the Company, any Tax-Related Items withholding with respect to such RSUs will be paid by reducing the amount otherwise payable to the Participant. 
Dividend Equivalents.
To the extent that pursuant to Section 8 of the Award Agreement dividend equivalents shall be credited on RSUs, such credits shall be settled in cash, not in Shares.
ISRAEL
Terms and Conditions
The following provision applies to the Participant if the Participant is in Israel on the Date of Grant. 
Trust Arrangement.  
The Participant understands and agrees that the RSUs are offered subject to and in accordance with the terms of the Plan,  Israeli Subplan (the “Subplan”), Award Agreement and Israel Beneficiary 102 Undertaking.  The Participant understands that the RSUs shall be allocated under the provisions of the track referred to as the “Capital Gain Route,” according to Section 102(b)(2) and 102(b)(3) of the Israeli Income Tax Ordinance (“Section 102”) and shall be held by the trustee for the periods stated in Section 102.  The Participant hereby confirms that he or she has: (i) read and understands the Plan, Subplan, Award Agreement and Israel Beneficiary 102 Undertaking; (ii) received all the clarifications and explanations that the Participant has requested; and (iii) had the opportunity to consult with his or her advisers before accepting the Award Agreement. In the event of any inconsistencies between the provisions of this Israeli Appendix and the Award Agreement, the provisions of this Appendix shall govern the RSUs and any Shares and in no event shall any term require shareholder approval as set out in Section 21(b) of the Plan.
Limited Transferability.  
This provision supplements Section 13 of the Award Agreement:
As long as the RSUs or any issued Shares are held by the Trustee on the Participant’s behalf, all of the Participant’s rights over the RSUs or the Shares are personal and cannot be transferred, assigned, pledged or mortgaged, other than by will or the laws of descent and distribution.
Subject to the provisions of the Plan, Section 102 and any rules or regulations or orders or procedures promulgated thereunder, to obtain favorable tax treatment for Capital Gain Route awards, the Participant may not sell or release from trust any Shares received upon vesting of the RSUs and/or any Shares received subsequently following any realization of rights, including without limitation, bonus shares, until the lapse of the holding period required under Section 102. Notwithstanding the above, if any such sale or release 

A-4

occurs during the holding period, the sanctions under Section 102 and under any rules or regulation or orders or procedures promulgated thereunder will apply to and will be borne by the Participant.
Issuance of Shares. 
This provision supplements Sections 5 and 6 of the Award Agreement:
If the Shares are to be issued during the holding period, such Shares shall be restricted and will be held by the Trustee on the Participant’s behalf.  In the event that the Shares are to be issued after the expiration of the holding period, the Participant may elect to have the Shares issued and delivered directly to him or her, provided that the Participant first complies with any Tax-Related Items stipulated under this Award Agreement to the Trustee’s and the Company’s satisfaction, or in trust on the Participant’s behalf to the Trustee.
Withholding of Taxes. 
This provision supplements Section 7 of the Award Agreement:
The Participant hereby agrees to indemnify the Company (or any Affiliate) and/or the Trustee and hold them harmless against and from any and all liability for any Tax-Related Items and other amounts, or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such amounts from any payment made to the Participant.  Any reference to the Company or the Employer shall include a reference to the Trustee.  The Participant hereby undertakes to release the Trustee from any liability in respect of any action or decisions duly taken and bona fide executed in relation to the Plan or any RSUs or Shares acquired under the Plan.  The Participant agrees to execute any and all documents which the Company or the Trustee may reasonably determine to be necessary in order to comply with the Israeli Income Tax Ordinance.
The Participant shall not be liable for the Employer’s components of payments to the national insurance institute, unless otherwise agreed by the Participant and allowed by applicable tax laws.  Furthermore, the Participant agrees to indemnify the Company, the Employer and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon that Participant has agreed to pay, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Participant for which the Participant is responsible.
Notwithstanding anything to the contrary in the Award Agreement, no Tax-Related Items will be settled by withholding Shares, unless the ITA approves otherwise in writing. 
Governing Law.  
This section supplements Section 26 of the Award Agreement:
To the extent any covenant, condition, or other provision of the Award Agreement and the rights of the Participant hereunder are intended to be rights granted under Section 102 and therefore determined to be subject to Israeli law, such covenant, condition, or other provision of the Award Agreement shall be subject to applicable Israeli law, but shall in no way affect, impair or invalidate any other provision of the Award Agreement, and the applicability of the Plan to such covenant, condition, or other provision of the Award Agreement. 
Written Acceptance.  
The Participant must print, sign and deliver the signed copy of the Israel Beneficiary 102 Undertaking within 45 days to: 80 E Rio Salado Parkway Suite 600, Tempe, AZ 85281, Attn: Stock Administration.  If the 

A-5

Company does not receive the signed Israel Beneficiary 102 Undertaking within 45 days, the RSUs may not qualify for preferential tax treatment.
The following provision applies if the Participant transfers into Israel after the Date of Grant.
Issuance after Vesting.  
The following provision replaces Section 5 of the Award Agreement.
Any RSUs that vest in accordance with the vesting schedule in the Notice of Grant will be paid to the Participant (or in the event of the Participant's death, to his or her estate), upon satisfaction, as determined by the Company, of any Tax-Related Items as set forth in Section 7 of this Award Agreement.  At the discretion of the Company, the Shares will be subject to an immediate forced sale restriction, pursuant to which all Shares acquired at vesting will be immediately sold and the Participant will receive the sale proceeds less Tax-Related Items and applicable broker fees and commissions.  In this case, the Participant will not be entitled to hold any Shares acquired at vesting.

A-6

SVB FINANCIAL GROUP
GLOBAL RESTRICTED STOCK UNIT AWARD AGREEMENT
ISRAEL BENEFICIARY 102 UNDERTAKING

If the Participant has not already executed an Israel Beneficiary 102 Undertaking in connection with grants made under the Israeli Subplan, the Participant must print, sign and deliver the signed copy of this Israel Beneficiary 102 Undertaking within 45 days to: 80 E Rio Salado Parkway Suite 600, Tempe, AZ 85281, Attn: Stock Administration.  If the Company does not receive the signed Israel Beneficiary 102 Undertaking within 45 days, the RSUs may not qualify for preferential tax treatment.

		
	1.
	I hereby agree that any shares (the “Shares”) (as defined by Section 102 of the Income Tax Ordinance [New Version], 1961) (the “Tax Ordinance”) issued to me by SVB Financial Group according to and under the terms and conditions of the Plan and the Israeli Subplan adopted by SVB Financial Group as of January 8, 2014 (collectively, the "Plan") are granted to me to qualify under the capital gain tax treatment in accordance and pursuant to Section 102(b)(2) of the Tax Ordinance after 132 amendment (“Section 102”) and the Income Tax Rules (Tax Relief upon the Allotment of Shares to Employees), 2003 (the “Rules”) unless I am otherwise notified subject to SVB Financial Group’s absolute discretion to change such election on future grants and subject to the Tax Authorities’ approval.

		
	2.
	I declare and confirm that I am familiar with the terms of Section 102, the Rules, and the implications and consequences of the chosen tax arrangement with respect to the Shares, and consent that all the terms and conditions set forth in Section 102 and the Rules, as shall be amended from time to time, shall apply to me and bind me.

		
	3.
	I hereby declare and confirm that I am familiar with the provisions of the trust agreement signed between SVB Israel Advisors Ltd. and Tamir Fishman Trusts 2004 Ltd., or its successor in interest (the “Trustee”) (the “Trust Agreement”), including the deed of trust, attached to the Trust Agreement and constitute an integral part thereto (“Deed of Trust”), and I consent that the Trust Agreement and the Deed of Trust shall fully bind me.

		
	4.
	Without derogating from the generality of the aforesaid, I agree that the Shares will be deposited in trust with the Trustee and be held in trust in accordance with Section 102, the Rules and the Trust Agreement. 

		
	5.
	I hereby declare and consent that any and all the rights that I shall be entitled to with respect to the Shares, including, without limitation, dividend, dividend equivalents, bonus shares and shares issued pursuant to adjustments made by SVB Financial Group, shall be issued in the name of the Trustee and be deposited with the Trustee,] and shall be subject to Section 102, the Rules and the Trust Agreement.

		
	6.
	Without derogating from the generality of the aforesaid, I acknowledge that during the “Holding Period” as determined by the Tax Ordinance I am prevented from selling the Shares, or releasing them from the Trustee, before the termination of the “Holding Period” and I understand the tax implications and consequences that may be applied as a result of breaching such obligation, as set by Section 102, which I am familiar with.

A-7

		
	7.
	If I will cease to be an Israeli resident or if my employment will be terminated for any reason, the Shares shall remain subject to section 102, the Rules and the Trust Agreement. 

		
	8.
	I hereby agree that any tax liability whatsoever arising from the grant, vesting or exercise of any awards, sale of Shares, release of Shares from the Trustee or any other event or act with respect to the Shares granted to me, shall be borne solely by me. I declare and consent that the SVB Financial Group, SVB Israel Advisors Ltd. and/or the Trustee shall make any tax payment due, out of the proceeds of any sale of Shares, to any tax authority, according to Section 102, the Rules, the Trust Agreement or any other compulsory payments or applicable law.

		
	9.
	I understand that this grant of Shares under the capital gain track is conditioned upon the receipt, inter alia, of all required approvals from the tax authorities. Accordingly, to the extent that for whatever reason SVB Israel Advisors Ltd. shall not be granted an approval by the Israeli Tax Authorities under section 102, I shall bear and pay any and all taxes and any other compulsory payments applicable to the grant, exercise, sale or other disposition of options or stocks; I hereby declare and consent for the  SVB Financial Group, SVB Israel Advisors Ltd. and/or the Trustee to deduct  any tax payment due, out of the proceeds of any sale of Shares, for any payment to The tax authorities, according to the Rules, or any other applicable compulsory payments. 

		
	10.
	I confirm that SVB Financial Group and/or the Trustee shall not be required to release any Shares or any proceeds deriving from the sale of Shares, to me, until all required tax payments according to section 102, the Rules and the Trust Agreement, including any other compulsory payments, or applicable law, have been fully assured.

		
	11.
	I acknowledge that the Trustee is not a tax advisor and it is recommended that I consult a tax advisor before I accept this letter, any restricted stock units vest, sell any Shares or release them from the Trustee, or any other act.

		
	12.
	I agree to indemnify SVB Financial Group, SVB Israel Advisors Ltd. and/or the Trustee and to hold them harmless against and from any and all liability for any damage and/or loss and/or expense that might occur regarding the tax liability and/or the execution of the Trust Agreement.  

		
	13.
	I hereby agree to bear all the applicable fees and commissions involved in establishing and maintaining trust account in the Trustee’s name, and in performing any action in the trust account.

		
	14.
	I hereby agree to sign any document reasonably required at the Company’s and/or the Trustee’s request.

		
	15.
	I hereby confirm that I read this letter thoroughly, received all the clarifications and explanations I requested, I understand the contents of this letter and the obligations I undertake in signing it.

___________________        _______________        ___________________        
Name of the Beneficiary            I.D Number               Signature

A-8

UNITED KINGDOM

Terms and Conditions

RSUs Payable Only in Shares.

RSUs granted to the Participant resident in the United Kingdom shall be paid in Shares only and do not provide any right for the Participant to receive a cash payment, notwithstanding any discretion contained in the Plan to the contrary.

Dividend Equivalents
To the extent that pursuant to Section 8 of the Award Agreement, dividend equivalents shall be credited on RSUs to a Participant resident in the United Kingdom, the credits shall be settled in whole Shares only and do not provide any right for the Participant to receive a cash payment, notwithstanding any discretion contained in the Award Agreement to the contrary.

Withholding of Taxes.  

The following provision supplements Section 7 of the Award Agreement:

Without limitation to Section 7 of the Award Agreement, the Participant agrees that the Participant is liable for all Tax-Related Items and hereby covenants to pay all such Tax-Related Items, as and when requested by the Company or the Employer or by Her Majesty’s Revenue and Customs (“HMRC”) (or any other tax authority or any other relevant authority).  The Participant also agrees to indemnify and keep indemnified the Company and the Employer against any Tax-Related Items that they are required to pay or withhold or have paid or will pay to HMRC (or any other tax authority or any other relevant authority) on the Participant’s behalf.
 
Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), the immediately foregoing provision will not apply; instead, the amount of any uncollected income tax may constitute a benefit to the Participant on which additional income tax and national insurance contributions may be payable.  The Participant is responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying the Company or the Employer (as applicable) for the value of any employee national insurance contributions due on this additional benefit, which may also be recovered from the Participant by the Company or the Employer by any of the means referred to in Section 7 of the Award Agreement.

A-9Exhibit

Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the Company, if publicly disclosed.  Double asterisks denote omissions.

EXCLUSIVE LICENSE AGREEMENT

This Agreement, effective as of July 22, 2019 (the “Effective Date”), is between the University of Massachusetts (“University”), a not-for-profit, public institution of higher education of the Commonwealth of Massachusetts, established by Chapter 75 of the Massachusetts General Laws, as represented by and solely on behalf of its Medical School (Worcester campus) and IVERIC bio, Inc. (“Company”), a Delaware corporation.

RECITALS

WHEREAS, University owns certain intellectual property rights which relate to gene therapies of the CEP290 gene for the treatment of Leber Congenital Amaurosis (LCA) type 10, as described in University's docket UMMS 17-04, entitled “Novel Gene Therapeutic Molecules for CEP290-LCA” and associated patent applications, as further described in Exhibit A; 

WHEREAS, Company is engaged in business relating to the development and commercialization of products that use or incorporate University's intellectual property rights and has the capability of developing commercial applications of the intellectual property;

WHEREAS, Company desires to obtain an exclusive license to University's intellectual property rights, and University is willing to grant an exclusive license to its intellectual property rights under the following conditions so that these intellectual property rights may be developed to their fullest and the benefits enjoyed by the general public; and

WHEREAS, the license that is granted in this Agreement promotes the development of publicly funded intellectual property to practical application for the public good.

THEREFORE, University and Company agree as follows: 

1.     Definitions. 

1.1.    “Affiliate” means an entity that controls, is controlled by, or is under common control with a party to this Agreement.  The term “control” as used in the preceding sentence means possession of the power to direct or call for the direction of the management and policies of an entity, whether through ownership of a majority of the outstanding voting securities, by contract, or otherwise. 

1.2.    "Biological Materials" means tangible biological materials that are necessary for the effective exercise of the Patent Rights, which materials are described on Exhibit B, as well as tangible materials that are produced by or on behalf of Company, its Affiliates or Sublicensees through use of the original materials, including, for example, any progeny derived from a cell line, monoclonal antibodies produced by hybridoma cells, DNA or RNA replicated from isolated DNA or RNA, recombinant proteins produced through use of isolated DNA or RNA, and substances purified from a source material included in the original materials (such as, recombinant proteins isolated from a cell extract or supernatant by non-proprietary affinity purification methods). 

1.3.    “Confidential Information” means any confidential or proprietary information furnished by one party (the “Disclosing Party”) to the other party (the “Receiving Party”) in connection with this Agreement that is specifically designated as confidential, as further described in Article 7. 

1.4.    “FDA” means the U.S. Food and Drug Administration or any successor agency.

1.5.    “Field” means the prevention, treatment, cure or control of any human indication, disease, disorder or condition relating to the CEP290 gene.  Any commercial sale of research reagents covered by the Patent Rights is specifically excluded from the Field.  

1.6.    “IND” means an Investigational New Drug Application, as defined in the U.S. Federal Food, Drug and Cosmetic Act.

1.7.    “Licensed Product” means any product that cannot be developed, manufactured, used, or sold without infringing one or more Valid Claims. 

1.8.    "Licensed Know-How" means know-how owned or controlled by University as of the Effective Date, that (i) is not generally known, and (ii) is necessary or reasonably useful to research, develop, manufacture, use and/or sell the Licensed Product and/or to practice the Patent Rights or the Biological Materials.

1.9.    “Net Sales” means, the gross amount billed or invoiced on sales of Licensed Products by Company, its Affiliates and Sublicensees, less deductions actually taken or applied, as determined in accordance with, and as permitted by, U.S. generally accepted accounting principles as consistently applied across Company’s, its Affiliates’ and Sublicensees’ (as applicable) pharmaceutical products generally, including the following:
(a) customary trade quantity, or cash discounts to non-affiliated brokers or agents to the extent actually allowed and taken;
(b)    amounts repaid or credited by reason of rejection or return or because of chargebacks, rebates or retroactive price reductions; 
(c) to the extent separately stated on purchase orders, invoices, or other documents of sale, any taxes or other governmental charges levied on the production, sale, transportation, delivery, or use of a Licensed Product which is paid by or on behalf of Company, its Affiliates or Sublicensees; 
and (d) outbound transportation costs prepaid or allowed and costs of insurance in transit. 
In any transfers of Licensed Products between any of Company and its Affiliates and Sublicensees, Net Sales are calculated based on the final sale of the Licensed Product to an independent third party.  If Company or an Affiliate or Sublicensee receives non-monetary consideration for any Licensed Products, Net Sales are calculated based on the fair market value of that consideration.  If Company or any of its Affiliates or Sublicensees uses or disposes of a Licensed Product in the provision of a commercial service, the Licensed Product is sold and the Net Sales are calculated based on the sales price of the Licensed Product billed or invoiced by such entity to an independent third party during the same Royalty Period or, in the absence of sales, on the fair market value of the Licensed Product as determined by Company and University in good faith.

1.10.    “Patent Rights” means the United States and PCT patent applications listed or referred to in Exhibit A and patent applications covering invention disclosures listed or referred to in Exhibit A, if any, and any divisional, continuation, or continuation-in-part of those patent applications to the extent the claims are directed to subject matter specifically described therein as well as any patents issued on these patent applications or resulting from post-grant proceedings and any reissues, substitutions, reexaminations or extensions of the patents, and any foreign counterparts to any of the foregoing. 

1.11.    “Royalty Period” means the partial calendar quarter commencing on the date on which the first Licensed Product is sold and every complete or partial calendar quarter thereafter during which either (a) this Agreement remains in effect or (b) Company has the right to complete and sell work-in-progress and inventory of Licensed Products pursuant to Section 8.5.

1.12.    “Sublicense Agreement” means any agreement in which Company grants, or promises to grant, rights to the Patent Rights, Biological Materials, or Licensed Know-How pursuant to Section 2.2, including by way of example but not limitation, sublicenses, options, rights of first refusal, rights of first negotiation, etc.  For the avoidance of doubt, any agreement that confers or promises to confer rights under this Agreement, regardless of its name or title, shall be deemed to be a Sublicense Agreement. For clarity, distribution agreements and manufacturing agreements are considered Sublicense Agreements if the distributor or manufacturer entering into these agreements with the Company makes payments to the Company (other than payments for sales of Licensed Products) for obtaining distribution and manufacturing rights.   

1.13.    “Sublicense Income” means any payments or other value that Company or any of its Affiliates receives from a Third Party Sublicensee in consideration of the Sublicense Agreement, including without limitation, upfront fees, option fees, license fees, equity, milestone payments, and license maintenance fees, etc., but excluding the following payments: (a) payments made in consideration for the issuance of equity or debt securities of Company at fair market value, (b) payments specifically committed to the further development or manufacture of Licensed Products and (c) royalties. [**].

1.14.    “Sublicensee” means any permitted sublicensee of the rights granted to Company under this Agreement, as further described in Section 2.2.  
1.15.    “Third Party” means any entity or person other than University and its Affiliates, on the one hand, and Company and its Affiliates, on the other hand.
1.16.    “Valid Claim” means (a) a claim of an issued and unexpired patent covering the Patent Rights which has not been permanently revoked or held unenforceable or invalid by an un-appealable or un-appealed decision of a court or government agency of competent jurisdiction or (b) a claim of a pending patent application within the Patent Rights that has not been abandoned or finally disallowed without the possibility of appeal or refiling.

2.      Grant of Rights

2.1.    License Grant.  University hereby grants to Company an exclusive, worldwide, royalty-bearing license in the Patent Rights and the Biological Materials and a non-exclusive license to the Licensed Know-How to make, have made, use, offer to sell, sell, have sold and import Licensed Products in the Field, including research for development of Licensed Products.

2.2.    Sublicenses.  Company may grant sublicenses of its rights under Section 2.1.  All Sublicense Agreements executed by Company pursuant to this Section 2.2 shall expressly bind the Sublicensee to the terms of this Agreement.  Company shall promptly furnish University with a fully executed, un-redacted copy of any Sublicense Agreement.  

2.3.    Retained Rights.

(a)    University.  University retains the right to use the Patent Rights for academic research, teaching, and non-commercial patient care, without payment of compensation to Company.  University may license its retained rights under this Subsection 2.3(a) to non-commercial research collaborators of University faculty members, post-doctoral fellows, and students.  

(b)    Federal Government.  University informs Company and Company understands that the federal government has funded certain inventions claimed in the Patent Rights and therefore this Agreement and the grant of any rights in Patent Rights are subject to the federal law set forth in 35 U.S.C. §§ 201-211 and the regulations promulgated thereunder, as amended, or any successor statutes or regulations. Company acknowledges that these statutes and regulations reserve to the federal government a royalty-free, non-exclusive, non-transferrable license to practice any government-funded invention claimed in the Patent Rights.  If any term of this Agreement 

fails to conform to those laws and regulations, the relevant term is invalid, and the parties shall modify the term pursuant to Section 10.11.
 
3.     Company Obligations Relating to Development and Commercialization.

3.1.     Diligence Requirements. Company shall use diligent efforts or cause its Affiliates and Sublicensees to use diligent efforts to develop Licensed Products and to introduce Licensed Products into the commercial market.  Following marketing approval, Company or its Affiliates or Sublicensees shall make Licensed Products reasonably available to the public.  Specifically, Company shall fulfill the following obligations:

(a)    Financing the Company.  University acknowledges that Company is a public company. Company shall maintain adequate financial resources to fulfill its diligence obligations under this Agreement.   

(b)    Development of Licensed Products.

(i)    On or before execution of this Agreement, Company shall furnish University with a written research and development plan under which Company intends as of the Effective Date to develop Licensed Products.  

(ii)    Within [**] after the start of each calendar year, beginning with calendar year 2020, Company shall furnish University with a written report on progress during the prior year to develop and commercialize Licensed Products, including without limitation research and development, efforts to obtain regulatory approval, marketing, and sales figures.  The Company shall also include in the report a discussion of its intended development and commercialization efforts for the current year. 

(iii)     Within [**] after the Effective Date, Company, its Affiliate or Sublicensee shall have [**].  

(iv)    Within [**] after the Effective Date, Company, its Affiliate or Sublicensee shall have [**].  

(v)    Within [**] after the Effective Date, Company, its Affiliate or Sublicensee shall have [**].   

(vi)     Within [**] after the Effective Date, Company, its Affiliate or Sublicensee shall have [**].

(vii)     Within [**] after [**], Company, its Affiliate or Sublicensee shall [**]. 

3.2.      Extensions of Diligence Obligations. If the Company requires an extension of any milestones or due dates set forth in Section 3.1(b)(iii)-(vii), Company shall inform University of such extension in writing at least [**] prior to the required due date, fully describing Company’s efforts to achieve the milestone to date, establishing the new due date, and describing Company’s plan to meet such new due date.  Later-in-time milestone due dates shall automatically be deemed to have been extended by the same amount of time.  However, if University reasonably objects to such extension within [**] after receipt of Company’s extension notice, the terms of such extension (including whether to grant such extension) shall be negotiated by the parties in good faith, unless Company sends to University documentation demonstrating that Company, its Affiliates and its Sublicensees have collectively spent the below amounts in respect of the Licensed Product whose milestones Company is seeking to extend, in which case University’s objection as to whether to grant an extension shall be deemed to have been overcome, and the parties shall agree on reasonable extension dates; however, Company may only use such justification for an extension [**] per milestone. 

	
		
	Timing of Extension Request
	Amount Spent by Company, its Affiliates and Sublicensees for the relevant Licensed Product in the [**] Prior to Extension Request

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

If at any time University reasonably determines that Company has not fulfilled its obligations under Subsection 3.1(b), University shall furnish Company with written notice of the determination.  Within [**] after receipt of the notice if Company is not entitled to an extension, Company shall either (a) fulfill the relevant obligation or (b) negotiate with University a mutually acceptable schedule of revised diligence obligations, failing which University may, immediately upon written notice to Company, terminate this Agreement or convert the exclusive license into a non-exclusive license.

3.3.     Indemnification.

(a)     Indemnity.  Company shall indemnify, defend, and hold harmless University and its trustees, officers, faculty, students, employees, and agents and their respective successors, heirs and assigns (the “Indemnitees”), against any liability, damage, loss, or expense (including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon any of the Indemnitees in connection with any Third Party claims, suits, actions, demands or judgments arising out of any theory of liability (including without limitation actions in the form of tort, warranty, or strict liability and regardless of whether the action has any factual basis) concerning any product, process, or service that is made, used, or sold pursuant to any right or license granted under this Agreement.  However, indemnification does not apply to any liability, damage, loss, or expense to the extent directly attributable to (i) the gross negligence or intentional misconduct of the Indemnitees or (ii) the settlement of a claim, suit, action, or demand by Indemnitees without the prior written approval of Company.

(b)    Procedures.  The Indemnitees agree to provide Company with prompt written notice of any claim, suit, action, demand, or judgment for which indemnification is sought under this Agreement.  Company agrees, at its own expense, to provide attorneys reasonably acceptable to University to defend against any such claim.  The Indemnitees shall cooperate fully with Company in the defense and will permit Company to conduct and control the defense and the disposition of the claim, suit, or action (including all decisions relative to litigation, appeal, and settlement).  However, any Indemnitee may retain its own counsel, at the expense of Company, if representation of the Indemnitee by the counsel retained by Company would be inappropriate because of actual or potential conflicts in the interests of the Indemnitee and any other party represented by that counsel.  Company agrees to keep University informed of the progress in the defense and disposition of the claim and to consult with University regarding any proposed settlement.

(c)    Insurance.  Company shall maintain insurance or self-insurance that is reasonably adequate to fulfill any potential obligation to the Indemnitees, but not less than [**] dollars ($[**]) for injuries to any one person arising out of a single occurrence and [**] dollars ($[**]) for injuries to all persons arising out of a single occurrence. Company shall provide University with written evidence of insurance or self-insurance; provided that Company shall increase the coverage for injuries to all persons to at least [**] dollars ($[**]), prior to commencing any clinical trials with a Licensed Product. Company shall purchase insurance for clinical trials covering the relevant geographies to take effect no later than the start of dosing in human patients. Company shall continue to maintain the insurance or self-insurance after the expiration or termination of this Agreement while Company, its Affiliate or Sublicensee continues to make, use, or sell a Licensed Product and thereafter for [**]; provided, that, if pursuant to Section 8.5, Company elects for any Sublicensee to survive as a direct licensee of University following early termination of this Agreement, such Sublicensee shall continue to be bound by the insurance obligations of this Section but only as an independent licensee of University and no longer as a Sublicensee of Company. 

3.4.    Use of University Name.  Except as permitted by Section 7.2, Company and its Affiliates and Sublicensees may not use the name “University of Massachusetts” or any variation of that name in connection with the marketing or sale of any Licensed Products.

3.5.    Marking of Licensed Products.  To the extent commercially feasible and consistent with prevailing business practices, Company shall mark and shall cause its Affiliates and Sublicensees to mark all Licensed Products that are manufactured or sold under this Agreement with the number of each issued patent under the Patent Rights that applies to a Licensed Product.

3.6.    Compliance with Law.  Company shall comply with, and shall ensure that its Affiliates and Sublicensees comply with, all applicable local, state, federal, and international laws and regulations relating to the development, manufacture, use, and sale of Licensed Products.  Company expressly agrees to comply with the following:

(a)    Company or its Affiliates or Sublicensees shall obtain all necessary approvals from the FDA and any similar foreign governmental authorities in which Company or Affiliate or Sublicensee intends to make, use, or sell Licensed Products.

(b)    Company and its Affiliates and Sublicensees shall comply with all United States laws and regulations controlling the export of commodities and technical data, including without limitation all Export Administration Regulations of the United States Department of Commerce.  Among other things, these laws and regulations prohibit or require a license for the export of certain types of commodities and technical data to specified countries and foreign nationals.  Company hereby gives written assurance that it will comply with and will cause its Affiliates and Sublicensees to comply with all United States export control laws and regulations, that it bears sole responsibility for any violation of those laws and regulations by itself or its Affiliates or Sublicensees, and that it will indemnify, defend, and hold University harmless (in accordance with Section 3.3) for the consequences of any violation.

(c)    If any invention claimed in the Patent Rights has been funded by the United States government, and only to the extent required by applicable laws and regulations, Company agrees that any Licensed Products used or sold in the United States will be manufactured substantially in the United States or its territories. Current law provides that if domestic manufacture is not commercially feasible under the circumstances, University may seek a waiver of this requirement from the relevant federal agency on behalf of Company.

4.     Consideration for Grant of Rights.  

4.1.     License Fee.  In partial consideration of the rights granted Company under this Agreement, Company shall pay to University on the Effective Date a license fee of four hundred thousand Dollars ($400,000).  This license fee payment is nonrefundable and not creditable against any other payments due to University under this Agreement.  

4.2.    Upfront Shares.  In partial consideration of the rights granted Company under this Agreement, and on the basis of the representations, warranties and acknowledgments described in Section 10.1.2 of this Agreement, Company shall issue to University, promptly after the Effective Date, 75,000 shares of the Company’s common stock, par value $0.001 per share (“Company Common Stock”) (such shares, the “Upfront Shares”). 

4.3.    License Maintenance Fee.  During the term of this Agreement, on each anniversary of the Effective Date until the expiration of the Royalty Term, commencing on July 22, 2020, Company shall pay to University [**] Dollars ($[**]).  This annual license maintenance fee is nonrefundable and is not creditable against any other payments due to University under this Agreement.

4.4.    Milestone Payments.  Company shall pay University the following one-time (for all Licensed Products) milestone payments within [**] after the first occurrence of the applicable event for any Licensed Product:

	
			
	 
	Clinical or Regulatory Milestone
	Payment

	A
	[**]
	75,000 shares of Company Common Stock

	B
	[**]
	[**]

	C
	[**]
	[**]

	D
	[**]
	[**]

	E
	[**]
	[**]

	F
	[**]
	[**]

	G
	[**]
	[**]

These milestone payments are nonrefundable and are not creditable against any other payments due to University under this Agreement.  Company shall make all milestone payments that are achieved, in addition to any of milestones [**] if such milestone event has not been achieved prior to the achievement of a later milestone (and, for clarity, there shall be [**] with respect to milestones [**]).  For example, if Company [**], the milestone payments for [**] are due upon achievement of the [**] milestone event.  Also, as a further example, if Company [**], then upon [**] in [**] above, [**] milestone payments are due.

Additionally, with respect to the milestone set forth in A above, (a) the number of shares of Company Common Stock that will be issuable or issued upon the achievement of such milestone (such shares, if any, the “Milestone Shares” and, together with the Upfront Shares, the “Shares”), will be adjusted equitably by the Company in the manner determined by its board of directors in the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, or other similar change in the capitalization of or event affecting the Company before issuance of such shares, including any distribution to holders of Company Common Stock other than ordinary cash dividends, and (b) in the event of a Reorganization Event occurring before achievement of the milestone and in which holders of Company Common Stock receive cash, securities or other property upon consummation of the Reorganization Event, the milestone payment obligation shall remain outstanding and upon achievement of the milestone, University shall receive a milestone payment in the same type as (e.g., cash, securities, or other property) and equal in amount to what such holders of Company Common Stock holding 75,000 shares of Company Common Stock immediately prior to consummation of such Reorganization Event would have received (and if holders of Company Common Stock were offered a choice of consideration or provided different kinds of consideration, then the type of consideration chosen by or given to the holders of a majority of the outstanding shares of Company Common Stock), less any applicable tax withholdings. For purposes of the foregoing, a “Reorganization Event” is: (i) any merger or consolidation of the Company with or into another entity as a result of which all Company Common Stock is converted into or exchanged for the right to receive cash, securities or other property or is cancelled, (ii) any transfer or disposition of all Company Common Stock for cash, securities or other property pursuant to a share exchange or other transaction, or (iii) any liquidation or dissolution of the Company. In connection with and as a condition to any payment of milestone A above, University agrees to deliver a certificate to Company (or its successor) substantially in the form of Exhibit C hereto.  In the event of any payment of milestone A above made prior to any occurrence of a Reorganization Event, Company agrees to deliver a certificate to University substantially in the form of Exhibit D hereto. In the event of any payment of milestone A above made after any occurrence of a Reorganization Event, Company or its successor or acquirer agrees to deliver a certificate to University in which Company or such successor or acquirer certifies to the accuracy of representations and warranties set forth in Section 10.1.1 as modified appropriately for Company or such successor or acquirer and for the type of consideration to be paid for milestone A. 

	
		
	Commercial Milestone
	Payment

	First instance of calendar year worldwide Net Sales of $[**]
	[**]

	First instance of calendar year worldwide Net Sales of $[**]
	[**]

	First instance of calendar year worldwide Net Sales of $[**]
	[**]

	First instance of calendar year worldwide Net Sales of $[**]
	[**]

By way of example, if Company achieves $[**] of calendar year worldwide Net Sales of a Licensed Product in Year 1; $[**] of calendar year worldwide Net Sales of a Licensed Product in Year 2; and $[**] of calendar year worldwide Net Sales of a Licensed Product in Year 3, then Licensee will owe [**] commercial milestones for Year 1; $[**] in commercial milestones for Year 2 and $[**] in commercial milestones for Year 3.

4.5.    Royalties.  Company shall pay to University a royalty of [**] percent ([**]%) of Net Sales of each Licensed Product in each country where a Valid Claim covers the sale of such Licensed Product in such country. These royalties are payable, on a Licensed Product-by-Licensed Product and country-by-country basis, for the longer of: (i) so long there remains any Valid Claim covering the sale of such Licensed Product in such country; or  (ii) ten (10) years from the first commercial sale of such Licensed Product in such country (the “Royalty Term”); provided, however that any royalties that are due under this Agreement during the Royalty Term but after the expiration of the Patent Rights shall be a deferred royalty for the period from the Effective Date until start of the Royalty Period during which no royalty shall have otherwise been due. 

4.6.    Minimum Royalty.  During the term of this Agreement, within [**] after the beginning of each calendar year following receipt of FDA marketing approval for any Licensed Product and until the expiration of the Royalty Term, Company shall pay to University a minimum royalty of [**] Dollars ($[**]).  Company may credit the minimum royalty paid under this Section 4.6 against actual royalties due and payable for the same calendar year.  Waiver of any minimum royalty payment by University is not a waiver of any subsequent minimum royalty payment.  If Company fails to make any required minimum royalty payment within the [**] period, that failure is a material breach of its obligations under this Agreement, and University may terminate this Agreement in accordance with Section 8.3 (subject to Company’s cure right set forth therein).

4.7.    Sublicense Income. Company shall pay University the following percentages of all Sublicense Income:  

(a)[**] percent ([**]%) for Sublicense Agreements that are executed by Company from the Effective Date and prior to [**];

(b)[**] percent ([**]%) for Sublicense Agreements that are executed by Company from and after [**]; 

(c)    [**] percent ([**]%) for Sublicense Agreements that are executed by Company from and after [**]; and

(d)    [**] percent ([**]%) for Sublicense Agreements that are executed by Company from and after [**]. 

Sublicense Income is due within [**] after Company receives the relevant payment from the Third Party Sublicensee.  

4.8.    Priority Review Voucher. If Company is awarded a priority review voucher by the FDA or other U.S. governmental agency based on a regulatory approval of a Licensed Product (a “Voucher”) and Company or any of its Affiliates realizes any Net Profit (as defined below) from the sale to a Third Party of any such Voucher, 

then Company shall pay to University an amount equal to [**] percent ([**]%) of all such Net Profit.  If such a Voucher is not sold by Company or any of its Affiliates, but instead is used by Company or any of its Affiliates for the benefit of any product outside the Agreement that is not a Licensed Product, then, (a) at the time of receipt of marketing approval from the FDA of the product to which such Voucher was applied, Company shall pay to University an amount equal to [**] percent ([**]%) of the fair market value of such Voucher, and (b) after the first instance of the Company (and its Affiliates and (sub)licensees) achieving worldwide net sales for such approved product of $[**] or greater in any calendar year, Company shall pay to University an amount equal to [**] percent ([**]%) of the fair market value of such Voucher.  In each such case, the fair market value shall be agreed by the parties based on recent sales of comparable vouchers, as of the occurrence of the event in (a). As used herein, the term “Net Profits” shall mean (i) the aggregate sale price received by Company and its Affiliates from a sale of the Voucher to a Third Party, including all monies, cash equivalents and the fair market value of other consideration, less (ii) all reasonable out-of-pocket expenses incurred by Company and its Affiliates directly related to marketing and selling the Voucher, including legal fees, financial advisor fees and third party broker or finder fees paid to Third Parties. 

5.      Royalty Reports; Payments; Records.

5.1.    First Sale. Company shall report to University the date of first commercial sale of each Licensed Product within [**] after occurrence in each country.

5.2.    Reports and Payments.

(a)    Within [**] after the conclusion of each Royalty Period, Company shall deliver to University a report containing the following information:

 (i)     the number of Licensed Products sold to independent third parties in each country and the number of Licensed Products used by Company, its Affiliates and Sublicensees in the provision of services in each country;

(ii)     the gross sales price for each Licensed Product by Company, its Affiliates and Sublicensees during the applicable Royalty Period in each country;

(iii)     calculation of Net Sales for the applicable Royalty Period in each country, including a listing of applicable deductions;

(iv)     total royalty payable on Net Sales in United States dollars, together with the exchange rates used for conversion; and

(v)     Sublicense Income due to University for the applicable Royalty Period from each Sublicensee.

(b)    Concurrent with this report, Company shall remit to University any payment due for the applicable Royalty Period.  If no royalties are due to University for any Royalty Period, the report shall so state.

5.3.    Payments in United States Dollars.  Company shall make all payments in United States dollars. Company shall convert foreign currency to United States dollars at the conversion rate existing in the United States (as reported in the Wall Street Journal) on the last working day of the applicable Royalty Period.  Company may not deduct exchange, collection, or other charges.

5.4.    Payments in Other Currencies.  If by law, regulation, or fiscal policy of a particular country, conversion into United States dollars or transfer of funds of a convertible currency to the United States is restricted or forbidden, Company shall give University prompt written notice of the restriction within the [**] payment deadline described in Section 5.2.  Company shall pay any amounts due University through whatever lawful methods University reasonably designates.  However, if University fails to designate a payment method within [**] 

after University is notified of the restriction, Company may deposit payment in local currency to the credit of University in a recognized banking institution selected by Company and identified by written notice to University, and that deposit fulfills all obligations of Company to University with respect to that payment.

5.5.    Records.  Company shall maintain and shall cause its Affiliates and Sublicensees to maintain complete and accurate records of Licensed Products that are made, used, or sold under this Agreement and any amounts payable to University in relation to Licensed Products with sufficient information to permit University to confirm the accuracy of any reports delivered to University under Section 5.2.  The relevant party shall retain records relating to a given Royalty Period for at least [**] after the conclusion of that Royalty Period, during which time University may, at its expense, cause its internal accountants or an independent, certified public accountant to inspect records during normal business hours for the sole purpose of verifying any reports and payments delivered under this Agreement.  The accountant may not disclose to University any information other than information relating to accuracy of reports and payments delivered under this Agreement.  The parties shall reconcile any underpayment or overpayment within [**] after the accountant delivers the results of the audit.  If any audit performed under this Section 5.5 reveals an underpayment in excess of [**] percent ([**]%) in any Royalty Period, Company shall bear the full cost of the audit.  University may exercise its rights under this Section 5.5 only [**] and only with reasonable prior notice to Company.

5.6.    Late Payments.  Any payments by Company that are not paid on or before the date payments are due under this Agreement, unless such payments are being disputed in good faith, shall bear interest at [**]% per month (or if such rate exceeds the maximum rate permitted by law, then at the maximum rate permitted by law), calculated on the number of days that payment is delinquent.

5.7.    Method of Payment.  All payments under this Agreement should be made to the “University of Massachusetts” and sent to the address identified below in Section 10.10 or as otherwise instructed by the University from time to time.  Each payment should reference this Agreement and identify the obligation under this Agreement that the payment satisfies. 

5.8.    Withholding and Similar Taxes.  Royalty payments and other payments due to University under this Agreement may not be reduced by reason of any withholding or similar taxes applicable to payments to University.  Therefore, all amounts owed to University under this Agreement are net amounts and shall be grossed-up to account for any withholding taxes, value-added taxes or other taxes, levies or charges.

6.     Patents and Infringement.

6.1.    Responsibility for Patent Rights.

(a)    University has primary responsibility at the expense of Company for the preparation, filing, prosecution, and maintenance of all Patent Rights, using patent counsel reasonably acceptable to Company.  University shall consult with Company as to the strategy for prosecution of the Patent Rights (for example, whether to prosecute certain patents or patent applications, and/or in certain countries) and as to preparation, filing, prosecution, and maintenance of all Patent Rights reasonably prior to any deadline or action with the United States Patent & Trademark Office (USPTO) or any foreign patent office, and shall furnish Company with copies of relevant documents reasonably in advance of consultation.  University shall give due consideration to any comments of Company or its patent counsel on strategy for prosecution of the Patent Rights, any patent filings for the Patent Rights and any responses to correspondence from or actions of the USPTO or any foreign patent office relating to the Patent Rights.

(b)    If University desires to abandon any patent or patent application within the Patent Rights, University shall provide Company with reasonable prior notice of the intended abandonment, and Company may, at its expense, prepare, file, prosecute, and maintain the relevant Patent Rights.

6.2.    Cooperation.  Each party shall provide reasonable cooperation in the preparation, filing, prosecution, and maintenance of all Patent Rights.  Cooperation includes, without limitation, promptly informing 

the other party of matters that may affect the preparation, filing, prosecution, or maintenance of Patent Rights (such as, becoming aware of an additional inventor who is not listed as an inventor in a patent application).

6.3.    Payment of Expenses.

(a)    Within [**] after University invoices Company, Company shall reimburse University for all previously unreimbursed expenses incurred as of the Effective Date in connection with obtaining the Patent Rights.  

(b)    Within [**] after University invoices Company, Company shall reimburse University for all patent-related expenses that have not been paid under Subsection 6.3(a) and that are incurred by University pursuant to Section 6.1.  Company may elect, upon [**] written notice to University, to cease payment of the expenses associated with obtaining or maintaining patent protection for one or more Patent Rights in one or more countries.  If Company elects to cease payment of any patent expenses, Company loses all rights under this Agreement with respect to the particular Patent Rights in those one or more countries.

6.4.    Infringement. 

(a)    Notification of Infringement.  Each party agrees to provide written notice to the other party promptly after becoming aware of any infringement of the Patent Rights, including any proceedings instituted by a Third Party seeking a declaratory judgment that any of the Patent Rights are unenforceable or invalid or not infringed by such Third Party, or any post-grant or inter partes review proceedings with similar effect.

(b)    Company Right to Prosecute.  As long as Company remains the exclusive licensee of the Patent Rights in the Field, Company may, under its own control and at its own expense, prosecute any third party infringement of the Patent Rights in the Field or, together with licensees of the Patent Rights in other fields (if any), defend the Patent Rights in any declaratory judgment action brought by a Third Party which alleges invalidity, unenforceability, or non-infringement of the Patent Rights.  Prior to commencing any action, Company shall consult with University and shall consider the views of University regarding the advisability of the proposed action and its effect on the public interest.  Company may not enter into any settlement, consent judgment, or other voluntary final disposition (each, a “Settlement”) of any infringement action under this Subsection 6.4(b), without the prior written consent of University, which consent may not be unreasonably withheld or delayed. Any recovery obtained in an action under this Subsection 6.4(b) shall be distributed as follows: (i) first, each party shall be reimbursed for any expenses incurred in the action; and (ii) second, as to ordinary damages, Company shall receive an amount equal to its lost profits or a reasonable royalty on the infringing sales (whichever measure of damages the court applied), less a reasonable approximation of the royalties that Company would have paid to University if Company had sold the infringing products and services rather than the infringer, which amount the University shall receive, and as to the remainder of ordinary damages, if any, the parties shall share equally, and as to special, treble or punitive damages, the parties shall share equally in any award.  

(c)    University as Indispensable Party.  University shall permit any action under Subsection 6.4(b) to be brought in its name if required by law, provided that Company shall hold University harmless from, and if necessary indemnify University against, any costs, expenses, or liability that University may incur in connection with the action.

(d)    University Right to Prosecute.  If Company fails to initiate an infringement action within a reasonable time after it first becomes aware of the basis for the action, or to answer a declaratory judgment action within a reasonable time after the action is filed, University may prosecute the infringement or answer the declaratory judgment action under its sole control and at its sole expense, and any recovery obtained shall be given to University.  If University takes action under this Subsection 6.4(d), University shall keep Company reasonably informed of material actions taken by University with respect to the infringement or declaratory action, provided that, University may not enter into any Settlement of such infringement or declaratory judgment action if such Settlement would create a financial obligation for or admission of liability by Company, without the prior written consent of Company, which consent may not be unreasonably withheld or delayed.

(e)    Cooperation.  Both parties shall cooperate fully in any action under this Section 6.4. which is controlled by the other party, provided that the controlling party reimburses the cooperating party promptly for any reasonable costs and expenses incurred by the cooperating party in connection with providing assistance.

7.    Confidential Information; Publications; Publicity. 

7.1. Confidential Information.

(a)    Designation.  The Disclosing Party shall mark Confidential Information that is disclosed in writing with a legend indicating its confidential status (such as, “Confidential” or “Proprietary”).  The Disclosing party shall document Confidential Information that is disclosed orally or visually in a written notice and deliver the notice to the Receiving Party within [**] of the date of disclosure.  The notice shall summarize the Confidential Information that was disclosed and reference the time and place of disclosure.

(b)    Obligations.  For [**] after disclosure of any portion of Confidential Information, the Receiving Party shall (i) maintain Confidential Information in confidence, except that the Receiving Party may disclose or permit the disclosure of any Confidential Information to its Affiliates, actual or potential Sublicensees, trustees or directors, officers, employees, contractors, consultants, and advisors who are obligated to maintain the confidential nature of Confidential Information and who need to know Confidential Information for the purposes of this Agreement, or with respect to any of the parties, to its actual or potential investors, collaborators, acquirers or financing sources who have a need to know the Confidential Information and who are subject to substantially similar obligations of confidentiality and non-use; (ii) use Confidential Information solely for the purposes of this Agreement; and (iii) allow its Affiliates, Sublicensees, trustees or directors, officers, employees, contractors, consultants, and advisors, and in the case of Company, investors, collaborators, acquirers and financing sources, to reproduce the Confidential Information only to the extent necessary for the purposes of this Agreement, with all reproductions being Confidential Information.

(c)    Exceptions.  The obligations of the Receiving Party under Subsection 7.1(b) do not apply to the extent that the Receiving Party can demonstrate that Confidential Information (i) was in the public domain prior to the time of its disclosure under this Agreement; (ii) entered the public domain after the time of its disclosure under this Agreement through means other than an unauthorized disclosure resulting from an act or omission by the Receiving Party; (iii) was already known or independently developed or discovered by the Receiving Party without use of the Confidential Information; (iv) is or was disclosed to the Receiving Party at any time, whether prior to or after the time of its disclosure under this Agreement, by a Third Party having no obligation of confidentiality with respect to the Confidential Information; or (v) is required to be disclosed to comply with applicable laws or regulations or with a court or administrative order, provided that the Disclosing Party receives reasonable prior written notice of the disclosure.

(d)    Ownership and Return. The Receiving Party acknowledges that the Disclosing Party (or a Third Party entrusting its own information to the Disclosing Party) owns the Confidential Information in the possession of the Receiving Party subject, in the case of Licensed Know-How, to the license granted hereunder.  Upon expiration or termination of this Agreement, or at the request of the Disclosing Party, the Receiving Party shall return to the Disclosing Party all originals, copies, and summaries of documents, materials, and other tangible manifestations of Confidential Information in the possession or control of the Receiving Party, except that the Receiving Party may retain one copy of the Confidential Information in the possession of its legal counsel solely for the purpose of monitoring its obligations under this Agreement. Notwithstanding the foregoing, Company may retain Licensed Know-How (and any copies and summaries of documents, materials, and other tangible manifestations thereof) subject to the license granted hereunder during the term of this Agreement and following expiration (but not early termination) of this Agreement. 

7.2.    Publicity Restrictions.  Company may not use the name of University or any of its trustees, officers, faculty, students, employees, or agents, or any adaptation of their names, or any terms of this Agreement in any promotional material or other public announcement or disclosure without the prior written consent of University.  

The foregoing notwithstanding, Company may without the consent of University (a) disclose that information, including the terms of this Agreement, in any prospectus, offering memorandum, or other document or filing required by applicable securities laws or other applicable law or regulation, provided that Company provides University at least [**] (or a shorter period in order to enable Company to make a timely announcement to fulfill applicable securities laws or other applicable law or regulation, while affording University the maximum feasible time to review the announcement) prior written notice of the proposed text for the purpose of giving University the opportunity to comment on the text, and (b) identify University as needed to convey that this Agreement and the licenses hereunder exist.

8.      Term and Termination.

8.1.    Term.  This Agreement commences on the Effective Date and remains in effect until the expiration of the Royalty Term (see Section 4.5) unless earlier terminated in accordance with the provisions of this Agreement. Upon the expiration of the Royalty Term, the licenses granted to Company hereunder shall automatically become perpetual, royalty-free, fully paid up and irrevocable.  

8.2.    Voluntary Termination by Company.  Company may terminate this Agreement for any reason upon ninety (90) days’ prior written notice to University; provided, however that if Company elects to terminate this Agreement during the Royalty Term, Company agrees that it shall lose all rights hereunder to make, use, sell, have made, have used or have sold Licensed Products.

8.3.    Termination for Default.  If either party commits a material breach of its obligations under this Agreement and fails to cure that breach within [**] after receiving written notice of the breach, the other party may terminate this Agreement immediately upon written notice to the party in breach.  Notwithstanding the foregoing, if Company commits a breach of its payment obligations under this Agreement and fails to cure the breach within the applicable cure periods as specified under subparts (a), (b) or (c) of this Section 8.3, which cure periods begin upon delivery of notice of breach by University to Company, University may terminate this Agreement upon written notice to Company: (a) [**] following the first notice of payment breach, (b) [**] following the second notice of a payment breach, (c) [**] following the third notice of a payment breach, and (d) immediately upon receipt of the fourth or subsequent notice of a payment breach, for which no cure period will be available.  In addition, following the third notice of an uncured payment breach, any subsequent material breach by Company will entitle University to terminate this Agreement immediately upon written notice to Company, without any cure period. For avoidance of doubt, with respect to any purported payment obligation that is disputed by Company in good faith, Company’s non-payment with respect to such purported payment obligation shall not be considered a breach. 

8.4.    Force Majeure. Neither party is responsible for delays resulting from causes beyond its reasonable control, including without limitation fire, explosion, flood, war, strike, act of terrorism or riot, provided that the nonperforming party uses commercially reasonable efforts to remove those causes of nonperformance and continues performance under this Agreement with reasonable dispatch whenever the causes are removed.

8.5.    Effect of Termination. The following provisions survive the termination of this Agreement: Articles 1 and 9; Sections 3.3., 3.4., 3.6(b)., 5.2. (obligation to provide final report and payment), 5.3., 5.4., 5.5., 5.6., 5.7., 5.8., 6.3. (but only for patent-related expenses incurred until date of termination), 7.1., 7.2., 8.5., 10.7., 10.8., 10.9. and 10.10.  Upon the early termination of this Agreement, Company and its Affiliates and Sublicensees may complete and sell any work-in-progress and inventory of Licensed Products that exist as of the effective date of termination, provided that (a) Company is current in payment of all amounts due University under this Agreement, (b) Company pays University the applicable royalty and Sublicense Income on sales of Licensed Products in accordance with the terms of this Agreement, and (c) Company and its Affiliates and Sublicensees complete and sell all work-in-progress and inventory of Licensed Products within [**] after the effective date of termination.  Furthermore, upon any early termination of this Agreement, Company shall have the right to elect that any then-existing Sublicense Agreements survive as direct licenses from University (so long as the applicable Sublicensees are not in breach of any material obligation under this Agreement and its Sublicense Agreement) and University will accept any such survival elected by Company, provided however such Sublicense Agreement is modified to reflect University’s status as a tax exempt agency of the Commonwealth of Massachusetts (e.g., state law, 

indemnification). Each surviving Sublicense Agreement will remain in full force and effect with University as the licensor instead of Company, but the duties and obligations of University under the surviving Sublicense Agreement will not be greater than those of the University under this Agreement and the rights of University under the Sublicense Agreement will not be less than its rights under this Agreement. 

9.     Dispute Resolution.

9.1.    Procedures Mandatory.  The parties shall resolve any dispute arising out of or relating to this Agreement solely by means of the procedures set forth in this Article.  These procedures constitute legally binding obligations that are an essential provision of this Agreement.  If either party fails to observe the procedures of this Article, as modified by their written agreement, the other party may bring an action for specific performance in any court of competent jurisdiction.

9.2.    Dispute Resolution Procedures.

(a)    Negotiation.  In the event of any dispute arising out of or relating to this Agreement, the affected party shall notify the other party, and the parties shall attempt in good faith to resolve the matter within [**] after the date of notice (the “Notice Date”).  Any disputes not resolved by good faith discussions shall be referred to senior executives of each party, who shall meet at a mutually acceptable time and location within [**] after the Notice Date and attempt to negotiate a settlement.

(b)    Mediation.  If the matter remains unresolved within [**] after the Notice Date, or if the senior executives fail to meet within [**] after the Notice Date, either party may initiate mediation upon written notice to the other party, and both parties shall engage in a mediation proceeding under the then current CPR Institute for Dispute Resolution (“CPR”) Model Procedure for Mediation of Business Disputes.  Specific provisions of this Subsection 9.2(b) override inconsistent provisions of the CPR Model Procedure.  The parties shall select the mediator from the CPR Panels of Neutrals.  If the parties cannot agree upon the selection of a mediator within [**] after the Notice Date, then upon the request of either party, the CPR shall appoint the mediator.  The parties shall attempt to resolve the dispute through mediation until one of the following occurs: (i) the parties reach a written settlement; (ii) the mediator notifies the parties in writing that they have reached an impasse; (iii) the parties agree in writing that they have reached an impasse; or (iv) the parties have not reached a settlement within [**] after the Notice Date.

(c)    Trial Without Jury.   If the parties fail to resolve the dispute through mediation, or if neither party elects to initiate mediation within [**] of the Notice Date, each party may, subject to Section 10.9, pursue any other remedies legally available to resolve the dispute.  However, THE PARTIES EXPRESSLY WAIVE THE RIGHT TO A JURY TRIAL in any legal proceeding under this Subsection 9.2(c).

9.3.     Preservation of Rights Pending Resolution.

(a)    Performance to Continue.  Each party shall continue to perform its obligations under this Agreement pending final resolution of any dispute arising out of or relating to this Agreement.  However, a party may suspend performance of its obligations during any period in which the other party fails or refuses to perform its obligations.

(b)    Provisional Remedies.  Although the procedures specified in this Article are the exclusive procedures for resolution of disputes arising out of or relating to this Agreement, either party may seek a preliminary injunction or other equitable relief if, in its reasonable judgment, that action is necessary to avoid irreparable harm to itself or to preserve its rights under this Agreement.

(c)    Statute of Limitations.  The parties agree that all applicable statutes of limitation and time-based defenses (such as, estoppel and laches) are tolled while the procedures set forth in Subsections 9.2(a) and 9.2(b) are pending.  The parties shall take any actions necessary to effectuate this result.

10.     Representations and Warranties; Miscellaneous.

10.1.    IP Representations and Warranties.  University represents that (a) its employees have assigned to University their entire right, title, and interest in the Patent Rights and Biological Materials, and that it has authority to grant the rights and licenses set forth in this Agreement, (b) every person who may be involved in the development of the Patent Rights and Biological Materials has signed the University Participation Agreement, which assigns to University all rights in the Patent Rights and commercial rights in the Biological Materials, (c) to its knowledge, for any federal government-funded inventions claimed by the Patent Rights, University has made all notifications required under the Patent and Trademark Law Amendments Act of 1980 (Public Law 96-518; 35 U.S.C. 200-212), including any amendments thereto and all regulations promulgated thereunder, and (d) it has not granted any rights in the Patent Rights, Biological Materials or Licensed Know-How to any Third Party or University Affiliate that is inconsistent with the grant of rights in this Agreement. UNIVERSITY MAKES NO OTHER WARRANTIES CONCERNING THE PATENT RIGHTS, INCLUDING WITHOUT LIMITATION ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  Specifically, University makes no warranty or representation (i) regarding the validity or scope of the Patent Rights, (ii) that the exploitation of the Patent Rights or any Licensed Product will not infringe any patents or other intellectual property rights of a Third Party, and (iii) that any Third Party is not currently infringing or will not infringe the Patent Rights.

10.1.1     Company’s Representations and Warranties. Company hereby represents to University as forth below. 

(a)    Organization and Standing.  Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its businesses as now conducted. Company is qualified or licensed to do business as a foreign corporation in all jurisdictions where such qualification or licensing is required, except where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate, have a material adverse effect upon Company.

(b)     Corporate Power and Authority; Valid and Binding Agreement.  Company has all requisite power and authority to enter into this Agreement and to issue the Shares. This Agreement is a valid and binding obligation of Company enforceable against Company in accordance with its terms, except as the same may be limited by (i) bankruptcy, insolvency, moratorium, and other laws of general application affecting the enforcement of creditors' rights or (ii) laws related to the availability of specific performance, injunctive relief or other equitable remedies.

(c)    Valid Issuance.  The Shares, when issued in compliance with the provisions of this Agreement, will be duly authorized, validly issued, fully paid and nonassessable and will be free of any liens or encumbrances caused or created by Company, other than, in each case, restrictions imposed by this Agreement and applicable securities laws.
(d)    Offering. Subject to the truth and accuracy of University’s representations set forth in Section 10.1.2 of this Agreement, the issuance of the Shares as contemplated by this Agreement is in compliance with applicable federal securities laws.

10.1.2    University’s Representations and Warranties. University hereby represents to Company as forth below. 

(a)    Organization and Standing.  University is a not-for-profit, public institution of higher education duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts and has all requisite power and authority to carry on its businesses as now conducted. 

(b)    Power and Authority; Valid and Binding Agreement.  University has all requisite power and authority to enter into this Agreement and to acquire the Shares. This Agreement is a valid and binding obligation of 

University enforceable against University in accordance with its terms, except as the same may be limited by (i) bankruptcy, insolvency, moratorium, and other laws of general application affecting the enforcement of creditors' rights or (ii) laws related to the availability of specific performance, injunctive relief or other equitable remedies.

(c)    Not an Underwriter.  University acknowledges that the Shares to be issued hereunder shall be received by University for its own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof.  University can bear the economic risk of holding the Shares indefinitely and a total loss with respect to such investment.  

(d)    Disclosure of Information.  University has received or has had full access to all the information from Company and its management that University considers necessary or appropriate for deciding whether to consummate an investment in the Shares.  University further represents that it has had an opportunity to ask questions and receive answers from Company regarding Company, its financial condition, results of operations and prospects and the terms and conditions of the offering of the Shares sufficient to enable it to evaluate its investment.  

(e)     Status.  University is a public institution of higher learning and agency of the Commonwealth of Massachusetts established under the Massachusetts General Laws Part 1, Title XII, Chapter 75 § 1 and is a tax exempt state agency under the doctrine of intergovernmental tax immunity and has total assets in excess of $5,000,000.  University has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of owning the Shares.

(f)    No “Bad Actor” Disqualification.  University has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of Rule 506(d)(1) of the Securities Act of 1933, as amended.  

(g)    Securities Laws.  University represents that it is familiar with Rule 144 of the Securities Act (“Rule 144”), as presently in effect.  University acknowledges that it is responsible for making any securities filings imposed on it under Sections 13 and 16 of the Securities Exchange Act of 1934, as amended, on account of its and its Affiliates’ ownership of securities of the Company and any transactions with respect thereto.

(h)    Restricted Securities; Legends.  University understands that the Shares, when issued, shall be “restricted securities” under the federal securities laws, and, as such, any certificates representing the Shares shall bear the following legends:

(A)    “These securities have not been registered under the Securities Act of 1933.  They may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under the Securities Act or an opinion of counsel (which counsel shall be reasonably satisfactory to the Company) that such registration is not required or unless sold pursuant to Rule 144 of the Securities Act.”; and
(B)    any legend required by applicable state securities laws.
10.1.3. Removal of Legends. The parties hereby acknowledge and agree as follows:

(a)    Certificates evidencing the Shares shall not contain the legend set forth in Section 10.1.2(h)(A): (i) following a sale of such Shares pursuant to a registration statement covering the resale of such Shares, while such registration statement is effective under the Securities Act, (ii) following any sale, distribution or other disposition of such Shares pursuant to Rule 144 or (iii) if such Shares are eligible for sale, distribution or disposition under Rule 144, without the requirement for Company to be in compliance with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale restrictions under Rule 144.

(b)    Company agrees that at such time as any legend set forth in Section 10.1.2(i) is no longer required under this Section 10.1.3, Company will, no later than [**] following the delivery by University to 

Company or notice by University to Company of delivery by University to the transfer agent for the Shares of a certificate representing Shares issued with such legend (together with any legal opinion required by the transfer agent), deliver or cause to be delivered to University a certificate representing such Shares that is free from such legend, or, in the event that such shares are uncertificated, remove any such legend in Company’s stock records.  
10.2.    Compliance with Law and Policies.  Company agrees to comply with applicable law and the applicable policies of University in the area of technology transfer of which the Company is aware and shall promptly notify University of any violation that Company knows or has reason to believe has occurred or is likely to occur.  The University policies currently in effect at the Worcester campus are the Intellectual Property Policy, Policy on Conflicts of Interest Relating to Intellectual Property and Commercial Ventures, and Policy on Faculty Consulting and Outside Activities at https://umassmed.edu/bridge/Inventors/forms-policies-and-agreements/, each of which are accessible to the Company at https://www.umassmed.edu/ofa/governance-policies/coi/. 

10.3.    Tax-Exempt Status.  Company acknowledges that University, as a public institution of the Commonwealth of Massachusetts, is an exempt organization under the United States Internal Revenue Code of 1986, as amended.  Company also acknowledges that certain facilities in which the licensed inventions were developed may have been financed through offerings of tax-exempt bonds.  If the Internal Revenue Service determines, or if counsel to University reasonably determines, that any term of this Agreement jeopardizes the tax-exempt status of University or the bonds used to finance University facilities, the relevant term is invalid and shall be modified in accordance with Section 10.11.

10.4.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which is an original, and all of which together are one instrument.

10.5.    Headings.  All headings are for convenience only and do not affect the meaning of any provision of this Agreement.

10.6.    Binding Effect.  This Agreement is binding upon and inures to the benefit of the parties and their respective permitted successors and assigns.

10.7.    Assignment.  University may not assign this Agreement or any rights or obligations hereunder to any Third Party without the prior written consent of the Company, which consent may not be unreasonably withheld or delayed. University may without consent of the Company assign this Agreement and the rights and obligations hereunder to an Affiliate of University. Furthermore, University may not assign all or substantially all of the Patent Rights, Biological Materials or Licensed Know-How licensed hereunder without assigning this Agreement to the same assignee.  Company may freely assign this Agreement and the rights and obligations hereunder, provided that in no event shall the Company (or any successor), without the prior written consent of University, delegate all or substantially all of its obligations hereunder to an entity without assigning all or substantially all of its rights hereunder to the same entity. 

10.8.    Amendment and Waiver.  The parties may only amend, supplement, or otherwise modify this Agreement through a written instrument signed by both parties. The waiver of any rights or failure to act in a specific instance relates only to that instance and is not an agreement to waive any rights or fail to act in any other instance.

10.9.    Governing Law.  This Agreement is governed by and construed in accordance with the laws of the Commonwealth of Massachusetts irrespective of any conflicts of law principles.  The parties may only bring legal action that arises out of or in connection with this Agreement in the Massachusetts Superior Court in Suffolk County.

10.10.    Notice.  Any notices required or permitted under this Agreement shall be in
writing, shall specifically refer to this Agreement, and shall be sent by recognized national overnight courier, or registered or certified mail, postage prepaid, return receipt requested, to the following addresses:

If to University:                If to Company:

Office of Technology Management        IVERIC bio, Inc.
University of Massachusetts            One Penn Plaza, Suite 3520
55 Lake Avenue North, S4-110            New York, NY 10119
Worcester, MA 01655-0002            Attention:  Legal Department
Attention:  Executive Director        

With a copy to (which shall not constitute 
notice):
WilmerHale LLP
60 State Street
Boston, MA 02109
Attn: Steven D. Barrett, Esq.

All notices under this Agreement are effective upon receipt. A party may change its contact information immediately upon written notice to the other party in the manner provided in this Section 10.10.

10.11.    Severability.  If any provision of this Agreement is held invalid or unenforceable for any reason, the invalidity or unenforceability does not affect any other provision of this Agreement, and the parties shall negotiate in good faith to modify the Agreement to preserve (to the extent possible) their original intent.  If the parties fail to reach a modified agreement within [**] after the relevant provision is held invalid or unenforceable, then the dispute shall be resolved in accordance with the procedures set forth in Article 9.  While the dispute is pending resolution, this Agreement shall be construed as if the provision were deleted by agreement of the parties.

10.12.    Entire Agreement.  This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements or understandings between the parties relating to its subject matter. However, any sponsored research agreement and/or material transfer agreement entered into between the parties relating to the subject matter hereof shall remain in full force and effect in accordance with their respective terms. 

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The parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

UNIVERSITY OF MASSACHUSETTS        IVERIC BIO, INC.

By:/s/ James P. McNamara                By:_/s/ Glenn P. Sblendorio__________

Name:    James P. McNamara, Ph.D.,            Name:    Glenn P. Sblendorio
Title:    Executive Director,                Title:    CEO & President
Office of Technology Management

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