Document:

Exhibit 10.1

 

[Names of certain individuals to whom the knowledge of Nabors
Drilling Canada Limited is attributed have been redacted from section 1.3]

 

Execution Version

 

 

NABORS
DRILLING CANADA LIMITED‎

 

as Vendor

 

‎-and-‎

 

ENSIGN
DRILLING INC.‎

 

as Purchaser

 

‎-and-‎

 

NABORS
GLOBAL HOLDINGS II LIMITED‎

 

as Guarantor

 

‎- regarding - ‎

 

The Acquisition of the Purchased Assets of the
Vendor

 

 

 

ASSET
PURCHASE AGREEMENT

 

JUNE 23, 2021‎

 

 

 

     

     

    

 

Table of Contents

 

	Article 1 INTERPRETATION	1
	 	 	 
	1.1	Definitions	1
	1.2	Schedules	8
	1.3	Knowledge	8
	1.4	Interpretation	8
	1.5	Conflicts	9
	 	 	 
	Article 2 PURCHASE AND SALE	9
	 	 	 
	2.1	Purchase and Sale of Purchased Assets	9
	2.2	Purchase Price	9
	2.3	Sales Tax	10
	2.4	Final Invoicing and Vendor’s Receivables	10
	2.5	Assumption of Liabilities	11
	2.6	Excluded Liabilities	11
	2.7	Allocation of Purchase Price	13
	 	 	 
	Article 3 REPRESENTATIONS AND WARRANTIES	13
	 	 	 
	3.1	Representations and Warranties of the Vendor	13
	3.2	Survival	19
	3.3	Representations and Warranties of the Purchaser	20
	3.4	Survival	21
	 	 	 
	Article 4 EMPLOYEES	22
	 	 	 
	4.1	The Vendor to Continue to Employ until Closing Date	22
	4.2	The Purchaser to Offer Employment	23
	4.3	Employment Liabilities	24
	 	 	 
	Article 5 PURCHASER’S CONDITIONS	25
	 	 	 
	5.1	Correctness and Accuracy of Representations and Warranties	25
	5.2	Performance of Obligations	25
	5.3	Material Change	25
	5.4	Competition Act Approval	25
	5.5	No Injunctions or Restraints	25
	 	 	 
	Article 6 VENDOR’S CONDITIONS	25
	 	 	 
	6.1	Correctness and Accuracy of Representations and Warranties	25
	6.2	Performance of Obligations	25
	6.3	Competition Act Approval	26
	6.4	No Injunctions or Restraints	26
	 	 	 
	Article 7 covenants regarding Competition Act	26
	 	 	 
	7.1	Competition Act Filing	26

 

     

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	Article 8 CLOSING	27
	 	 	 
	8.1	Date, Time and Place of Closing	27
	8.2	Vendor's Closing Deliveries	28
	8.3	Purchaser's Closing Deliveries	29
	8.4	Assumed Contracts	30
	 	 	 
	Article 9 ‎PRECLOSING matters	30
	 	 	 
	9.1	Covenants	30
	9.2	Inspection	30
	9.3	Casualty	31
	 	 	 
	Article 10 INDEMNITY	31
	 	 	 
	10.1	Indemnity by the Vendor	31
	10.2	General Limitation of Liability	32
	10.3	Indemnity by Purchaser	33
	10.4	Direct Claims	33
	10.5	Third Party Claims	34
	10.6	Settlement of Third Party Claims	34
	10.7	Survival Period	34
	 	 	 
	Article 11 TERMINATION	35
	 	 	 
	11.1	Termination	35
	11.2	Notice of Termination	35
	11.3	Effect of Termination	35
	 	 	 
	Article 12 MISCELLANEOUS	36
	 	 	 
	12.1	Notices	36
	12.2	Further Assurances	36
	12.3	Confidentiality	37
	12.4	Press Releases	37
	12.5	Filing this Agreement	37
	12.6	Unenforceable Terms	37
	12.7	Amendments	38
	12.8	Default	38
	12.9	Assignment	38
	12.10	Entire Agreement	38
	12.11	No Waiver	38
	12.12	Construction	38
	12.13	Governing Law and Submission to Jurisdiction	38
	12.14	Survival	39
	12.15	Counterpart and Facsimile Execution of Documents	39
	12.16	Enurement	39
	12.17	Costs	39
	12.18	No Third Party Beneficiaries	39
	12.19	Removal of Name	39
	12.20	Privacy	39

 

     

     

    

 

ASSET
PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT dated effective
the 23rd day of June, 2021.‎

 

AMONG:‎

 

NABORS
DRILLING CANADA LIMITED, an Alberta corporation (the "Vendor")‎

 

‎-and-‎

 

ENSIGN
DRILLING INC., an Alberta corporation (the "Purchaser")‎

 

‎-and-‎

 

NABORS
GLOBAL HOLDINGS II LIMITED, an exempted company under the laws of Bermuda ("Guarantor")‎

 

WHEREAS
the Vendor is the owner of the Purchased Assets; ‎

 

AND WHEREAS
the Vendor desires to sell the Purchased Assets to the Purchaser ‎and the Purchaser desires to purchase the Purchased Assets from
the Vendor all in ‎accordance with the terms and provisions of this Agreement;‎

 

AND WHEREAS
the Vendor is an Affiliate of the Guarantor and the Guarantor ‎has agreed to guarantee certain obligations of the Vendor as specified
hereunder; ‎

 

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

 

Article 1

INTERPRETATION

 

		1.1	Definitions

 

The following terms and expressions shall have
the meanings set forth below ‎whenever used in this Agreement:‎

 

‎"Acquired Employees" means
has the meaning set out in ‎Section 4.2(a);

 

‎"Affiliate" means, with
respect to any Person, any other Person directly or indirectly ‎controlling, controlled by or under common control with the first
Person. For the purposes of this Agreement, ‎‎"control", when used with respect to any Person, means the possession,
directly or ‎indirectly, of the power to (a) vote 50% or more of the securities having ordinary voting ‎power for the election
of directors (or comparable positions) of such Person or (b) direct or ‎cause the direction of the management and policies of
such Person, whether through the ‎ownership of voting securities, by contract or otherwise, and the terms "controlling"
and ‎‎"controlled" have meanings correlative to the foregoing;‎

 

‎"Agreement" means this Asset
Purchase Agreement and all Schedules and Exhibits hereto and all instruments in ‎amendment or confirmation of it;‎

 

‎"Amended UST Remedial Estimate"
has the meaning given to it in Section 2.7(c);

 

"Applicable Law" shall mean with
respect to any Person, any international, foreign, national, federal, ‎state, provincial, ‎territorial, municipal or local law
(statutory, common law or otherwise), constitution, ‎treaty, ‎convention, ordinance, code, rule, regulation, judgment, order or
other similar requirement ‎enacted, ‎adopted, promulgated or applied by a Governmental Authority that is binding upon or ‎applicable
to ‎such Person;‎

 

     

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‎"Assigned Licenses" has
the meaning given to it in Section 3.1(j);‎

 

‎"Assumed Contracts" means
those Material Contracts listed in Schedule J;‎

 

‎"Assumed Liabilities" has
the meaning given to it in Section 2.5;‎

 

"Benefit Plan" means any plan,
fund, or program, pursuant to which benefits of material economic value are provided to, or ‎may ‎reasonably be anticipated by,
any Acquired Employee, or any present or former beneficiary, ‎‎dependent or assignee of any Acquired Employee, other than: (a) regular
salary, wages or ‎‎commissions paid as compensation for the performance of services by any Acquired ‎Employees ‎prior
to the Closing Date, (b) reasonable arrangements made in the ordinary ‎course of ‎Business for reimbursement of expenses
and vehicle and travel allowances, ‎and (c) ‎worker's compensation benefits, Canada Pension Plan benefits and ‎Employment
Insurance ‎benefits;

 

‎"Business" means the land
rig drilling business carried on by the Vendor in Canada as of the Closing ‎Date and for greater certainty does not include Canrig
Drilling Technology Canada Ltd., Nabors Drilling Solutions, RigWatch, or any other business of the Vendor or any Affiliate of the Vendor
carried on in Canada or elsewhere;‎

 

‎"Business Day" means any
day of the year, other than Saturday, Sunday or any day on ‎which banks in Calgary, Alberta are authorized or required to close;‎

 

‎"Canrig Lease" means the
unwritten arrangement between the Vendor, as landlord, and Canrig Drilling Technology Canada Ltd., as tenant, pursuant to which the tenant
is entitled to use one bay located in the Owned Premises;

 

"Claim(s)" means, any and all
debts, costs, expenses, liabilities, obligations, losses and ‎damages, penalties, proceedings, actions suits or claims of whatsoever
nature or kind ‎including, as the context requires, any administrative, arbitral, regulatory or judicial ‎proceedings, actions
or suits; lawsuits; demands; demand letters; damages; punitive ‎damages; claims; strict liability claims, including those under Environmental
Laws; liens; ‎notices of noncompliance or violation; judgments; fines; penalties; losses; investigations or ‎proceedings; and
costs, including reasonable accountants' and attorneys' and consultants' ‎fees and costs, court costs, amounts paid in settlement
and costs and expenses of ‎investigations;‎

 

‎"Closing" means the completion
of the Transaction contemplated in ‎this Agreement;‎

 

‎"Closing Date" means:‎

 

		(a)	‎the later of June 30, 2021 or the date that is six (6) Business Days following the ‎‎day
on which the Competition Act Approval has been obtained; or

 

		(b)	such other time or date or both as may be agreed on in writing by the Parties;‎

 

‎"Closing Time" means 10:00
a.m., on the Closing Date;‎

 

‎"Commissioner" means the
Commissioner of Competition appointed under section 7(1) of the ‎Competition Act and includes any Person designated by the Commissioner
to act on his or her behalf‎;‎

 

‎"Competition Act" means
the Competition Act, R.S.C. 1985, c. C-34;

 

     

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‎"Competition Act ‎Approval"
means:‎

 

		(a)	the issuance of an advance ruling certificate pursuant to section 102 of the Competition Act‎ in respect
of the Transaction; or

 

		(b)	the applicable waiting ‎period under section 123 of the Competition Act has expired or been waived
in accordance with ‎the Competition Act;‎ or the obligation to give the requisite notice has been waived pursuant to section 113(c) of
the ‎Competition Act; and the Commissioner shall advised in writing that he does not, at that time, intend to make an application
under section 92 of the ‎Competition Act in respect of the Transaction, on terms and ‎conditions satisfactory to the Purchaser,
acting reasonably, and such advice has not been ‎rescinded or amended‎;

 

‎‎"Competition Bureau"
means the Canadian Competition Bureau;‎

 

“Confidentiality
Agreement” means the Mutual Confidentiality Agreement dated March 31, 2021, by
and between Nabors Corporate Services, Inc., a Delaware corporation, on behalf of itself and its Affiliates (including the Vendor)
and the Purchaser;

 

“Contaminants of Concern” means
petroleum hydrocarbon contaminants typically associated with a former UST;

 

"Contract" means any written
agreement, indenture, commitment, contract, lease, purchase order, ‎deed of trust, option, instrument or other commitment;‎

 

‎"CRA" means the Canada Revenue
Agency;‎

 

‎"Designated Employees" means
those employees of the Vendor specifically identified as such in the Employment Matters Disclosure Letter;

 

“Direct Claim” has the meaning
given to it in Section 10.4;

 

"Dollars" or "$"
means the lawful currency of Canada;

 

"Disclosure Schedule" means the
Vendor’s disclosure schedule set out in Schedule I;

 

‎‎"Employees" means all
individuals who are employees of the ‎‎Vendor and who are employed or similarly engaged for valuable ‎consideration in ‎connection
with the Business, (including deferred or ‎contingent compensation) for regular ‎and ongoing services rendered, including those
 ‎employees of the Vendor on disability ‎leave, parental leave or other leave of ‎absence, but excluding any Protected Employees;

 

‎"Employment Matters Disclosure Letter"
means the letter provided by the Vendor to the Purchaser ‎on the date hereof;‎

 

‎"Encumbrance" means any
encumbrance, lien, charge, pledge, mortgage, title retention ‎agreement, security interest of any nature, adverse claim, easement,
 ‎right of occupation, any matter capable of registration against title, right of pre-‎emption or privilege or any contract to
create any of the foregoing;‎

 

‎"Environmental Claim(s)"
means the following environmental matters: (i) an ‎Environmental Condition that is now, at the time of discovery or will in the
future be ‎required by a Governmental Authority to be remediated under the Environmental Laws at, on or ‎under or arising or emanating
from the Owned Premises, the Purchased Assets or any of ‎them, including but not limited to payment of penalties and fines assessed
or imposed by ‎any Governmental Authority arising from such an Environmental Condition; (ii) a Claim arising ‎from the Release,
handling, generation, management, control, processing, transportation, ‎disposal, storage, treatment and/or recycling of or exposure
to any Hazardous Materials ‎associated with the Business, the Owned Premises, the Purchased Assets, or any of them, ‎including
but not limited to Hazardous Materials generated by the Vendor in connection ‎with the Business or any aspect thereof, and transported
or caused to be transported to an ‎offsite location prior to the Closing Date;‎

 

     

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‎"Environmental Condition"
means any condition existing on, at or originating from, any ‎property or assets included with the Purchased Assets which constitutes,
(a) a Release on, at ‎or from such property of any Hazardous Materials, (b) a violation of any Environmental ‎Laws or
any Environmental Permits, or (c) a condition that otherwise could result in liability ‎under any Environmental Laws;‎

 

‎"Environmental Laws" means
any and all Applicable Laws or orders, rules, codes, ‎policies, directives, standards, guidelines, Licenses or permits of any Governmental
Authority ‎relating to clean-up, remediation, Hazardous Materials, or the abatement of pollution, ‎protection or restoration of
the environment, or the ensuring of public health and safety ‎from environmental or occupational or workplace hazards as in effect
on the Closing Date, ‎specifically including, but not limited to, those relating to the exposure to, use, Release, ‎threatened
Release, emission, presence, storage, treatment, generation, transportation, ‎processing, handling, management or control of Hazardous
Materials, all as in effect on the ‎Closing Date;‎

 

‎"Environmental Permits"
means all permits, approvals, certificates, identification numbers, ‎Licenses and other authorizations required under any applicable
Environmental Law to own ‎or operate the Purchased Assets as currently configured and as operated;‎

 

‎"Equipment" means all of
the Vendor’s rigs, vehicles, and other equipment used in the Business;‎

 

‎”ETA”
means the Excise Tax Act, R.S.C. , 1985, c. E-15;

 

"Excluded Assets" means those
assets listed in Schedule D, and includes for certainty (a) the Vendor’s ‎interest in the Leased Premises, (b) the
Material Contracts which are not Assumed Contracts, and (c) the Prohibited Names and Marks;

 

‎"Excluded Liabilities" means
all liabilities of the Vendor other than Assumed Liabilities;‎

 

"Goodwill" means the goodwill
of the Business, including: (a) the right, as presently held ‎‎by the Vendor, for the Purchaser to represent itself as carrying
on the Business in ‎‎continuation of and in succession to the Vendor and the right to use any words indicating ‎‎that
the Business is so carried on; (b) all records of sales, customer lists and supplier lists ‎of ‎or used in connection with
the Business; and (c) to the extent transferable, the ‎telephone ‎numbers and telephone listings used by the Vendor in connection
with the ‎Business, but for greater certainty shall not include any rights to own or use in any way of the Prohibited Names and Marks
unless as specifically provided for in this Agreement;

 

‎"Governmental Authority"
means any: (a) Canadian national, provincial, county, city, town, ‎village, district, territory, or other jurisdiction of any
nature; (b) Canadian federal, ‎provincial, local, municipal or other government; (c) governmental authority of any nature
 ‎‎(including any governmental agency, branch, department, official or entity and any court or ‎other tribunal); (d) arbitrator,
agency or body exercising, or entitled to exercise, any ‎administrative, executive, judicial, legislative, police, regulatory, licensing,
permitting or ‎taxing authority or power of any nature; or (e) any stock exchange or securities commission ‎or similar body;‎

 

‎"GST" means goods and services
tax under the ETA;

 

"GST 44 Election" has the meaning
given to it in Section 2.3;

 

‎"Guarantor" means Nabors
Global Holdings II Limited‎;

 

     

    - 5 

    

 

‎‎‎"Hazardous Material"
means: (a) any chemicals, materials or substances defined as ‎‎"hazardous waste", "hazardous substance",
 "extremely hazardous substance", "toxic ‎chemical", "hazardous material", "hazardous chemical",
 "toxic pollutant", "contaminants", ‎‎"chemical", "chemical substance", "hazardous
air pollutant", "pollutant", "pesticide", "toxic" ‎or "quantity of asbestos", as such
terms are defined, listed, identified under or described in ‎any of the Environmental Laws in such quantities, condition or concentrations
as are ‎regulated by applicable Environmental Laws; (b) any urea formaldehyde, PCBs, radon ‎gas, crude oil or any fraction
thereof, brine, all forms of natural gas, petroleum and other ‎hydrocarbons or by-products, any toxic, infectious, reactive, radioactive,
explosive, ‎corrosive, ignitable or flammable chemical, chemical compound or mixture thereof, and ‎any other hazardous or dangerous
substance, material or waste, all as defined in or for ‎purposes of any Environmental Law, whether solid, liquid or gas, or any combination
 ‎thereof; and (c) Contaminants of Concern;‎

 

‎"HSBC Lien" means those
certain security interests, assignments, mortgages and charges granted to and in favour of HSBC Bank of Canada and registered pursuant
to the respective Personal Property Security Act for the provinces of British Columbia, Alberta and Saskatchewan‎;

 

‎"Indemnitees" has the meaning
given to it in Section 10.1;‎

 

‎"Informal Storage Yard Leases"
has the meaning given to it in Section 8.5;

 

"Inventory" means all inventory
of the Vendor acquired for the purpose of being used or consumed in connection with the operation of the Business (other than the Excluded
Assets), ‎including:

 

		(a)	all spare parts, raw materials, replacement parts, materials and equipment in all ‎stages of manufacture,
raw materials and new and unused ‎production, ‎packing and shipping supplies; and ‎

 

		(b)	all other materials and supplies on hand to be used or consumed in connection with the operation of the
Business;‎

 

‎"Leased Premises" means
the properties identified as the Leased Premises in Schedule D;

 

‎"Licenses" has the meaning
given to it in Section 3.1(j);‎

 

‎“Major Customers” has
the meaning given to it in Section 3.1(q);

 

“Major Suppliers” has the meaning
given to it in Section 3.1(q);

 

‎‎"Material Contracts"
has the meaning given to it in Section 3.1(i);‎

 

"Offers" has the meaning given
to it in Section 4.2(a);

 

“Outside Date” means August 31,
2021;

 

"Owned Premises" means the properties
listed in Schedule C and all buildings and improvements thereon;‎

 

‎"Parties" means Vendor and
Purchaser, and "Party" means any one of them;‎

 

‎"‎Permitted Encumbrances"
means ‎the ‎Encumbrances set out in Schedule F and (a) liens for Taxes not yet due and payable or being contested in good
faith by appropriate procedures, (b) mechanics’, carriers’, workmen’s, repairmen’s or other like liens arising
or incurred in the ordinary course of business, (c) easements, encroachments, rights of way, zoning ordinances and other similar
Encumbrances affecting the Owned Premises, (d) other than with respect to the Owned Premises, liens arising under original purchase
price conditional sales contracts and equipment leases with Third Parties entered into in the ordinary course of business, ‎and (e) minor
imperfections of title or other minor encumbrances which do not individually or in the aggregate detract ‎from ‎the value of,
or impair the use of, any of the Purchased Assets;

 

     

    - 6 

    

 

‎"Person" includes an individual,
corporation, partnership, limited liability company, joint ‎venture, association, trust or other entity or organization or Governmental
Authority;‎

 

‎"Personal Information" means
any information about an identifiable individual;‎

 

‎"Privacy Laws" means the
Personal Information Protection Act (Alberta), the Personal Information ‎Protection and Electronic Documents Act (Canada),
and any substantially ‎similar privacy legislation in Canada applicable to any Person; ‎

 

"Prohibited Name and Marks" has
the meaning given to it in Section 12.19;

 

‎"Protected Employees" means
those employees of the Vendor specifically identified as such in the Employment Matters Disclosure Letter;

 

‎"PST" has the meaning given
to it in Section 2.3(a);

 

"Purchase Price" has the meaning
given to it in Section 2.2;‎

 

‎"Purchased Assets" means
in respect of the Business:‎

 

		(a)	the Equipment;‎

 

		(b)	all Inventory, wherever located and listed on Schedule B;‎

 

		(c)	the Assumed Contracts;‎

 

		(d)	the Assigned Licenses;‎

 

		(e)	the Owned Premises;‎

 

		(f)	all books and records of the Vendor relating to the Purchased Assets, including all ‎customer and
supplier lists, title information, maintenance and ‎inspection reports, equipment maintenance and warranty ‎information, operating
manuals, all correspondence material to the ongoing operation of the Business with any customers, ‎suppliers, Acquired Employees or
Governmental Authority, all personnel records related to ‎the Acquired Employees, environmental reports and files and any other material
reports ‎prepared by ‎or on behalf of the Vendor related to the Purchased Assets, including data stored ‎electronically;‎

 

		(g)	all rights of the Vendor to manufacturers' warranties and indemnities with respect to ‎the Purchased
Assets; and

 

		(h)	the Goodwill of the Vendor;‎

 

but excluding for certainty in each case, the
Excluded Assets and the books and records related thereto;

 

‎"Purchaser" means Ensign
Drilling Inc.;

 

"Purchaser’s Conditions"
has the meaning given to it in Article 5;

 

“Purchaser Indemnitees” has
the meaning given to it in Section 10.1

 

     

    - 7 

    

 

"Purchaser's Counsel" means DLA
Piper (Canada) LLP;‎

 

‎"Release" or "Released"
means any spilling, leaking, pumping, pouring, emitting, emptying, ‎discharging, injecting, escaping, leaching, dumping, migrating
or disposing (including, but ‎not limited to, the abandoning or discarding of barrels, containers and other materials or ‎refuse
containing any Hazardous Material) of a substance into the environment;‎

 

‎"Seconded
Employee" means the employee identified as such in the Employment Matters Disclosure Letter as such;

 

“Site Building C” means that
portion of the Owned Premises identified as Site Building C in the Phase I Environmental Site Assessment dated May 18, 2021, prepared
by Pinchin Ltd. on behalf of the Vendor.

 

"Software License" collectively
means a limited, royalty-free (for a period of one (1) year from the Closing Date), non-exclusive and non-transferable license between
Vendor (or the applicable ‎Affiliate of Vendor which owns the software) and Purchaser pursuant to which Vendor will: (i) license
certain rig control ‎software (AC Rigs (Academy) and SMARTROS) to Purchaser, substantially in the form of Schedule G hereto;
and (ii) license certain rig control ‎software (ROCKit and REVit), in accordance with the standard terms and conditions of the
Vendor (or the applicable Affiliate of the Vendor) attached hereto as Schedule M at a daily operating price of three hundred dollars ($300)
plus applicable Tax, for each of ROCKit and REVit per each applicable drilling rig;

 

‎"Tax Act" means the Income
Tax Act (Canada), as amended from time to time;‎

 

‎"Taxes" means any and all
federal, provincial, municipal, local and other taxes, ‎‎assessments, interest, penalties, deficiencies, fees and other charges
or impositions ‎charged ‎or imposed by any taxation authority including, without limitation, all income tax, ‎‎employment
insurance, sales and use, excise, privilege, real, personal and other ‎property, ad ‎valorem, license, school and any other tax
or similar governmental charge ‎or imposition‎;

 

‎"Third Party" means any
Person other than Vendor, Purchaser, Guarantor, and their ‎respective Affiliates;

 

‎"Third Party Claim” has
the meaning given to it Section 10.5;

 

"Transaction" means the transaction
of purchase and sale contemplated in this Agreement;‎

 

“UST” has the meaning given
to it in Section 2.7(a);

 

“UST Phase II Assessment” has
the meaning give to it in Section 2.7(a);

 

“UST Phase II Report” has the
meaning give to it in Section 2.7(a);

 

“UST Remedial Estimate” has
the meaning given to it in Section 2.7(a);

 

"Vendor" means Nabors Drilling
Canada Limited;

 

‎"Vendor Benefit Plan" means
a Benefit Plan at any time sponsored or ‎maintained by ‎Vendor or to which Vendor makes or made contributions, or which was ‎sponsored
or ‎maintained by the Vendor prior to the Closing Date, or to which the ‎Vendor made ‎contributions prior to the Closing Date;

 

"Vendor’s Conditions" has
the meaning given to it in Article 6;

 

"Vendor’s
Counsel" means Miller Thomson LLP and Haynes and Boone, LLP;

 

“Vendor Indemnitees” has the
meaning given to it in Section 10.3;

 

     

    - 8 

    

 

“Vendor’s
Receivables” has the meaning given to it in Section 2.4; and

 

“Written Lease” has the meaning
set out in Section 8.3(k).

 

		1.2	Schedules

 

The following Schedules are expressly incorporated
into and form part of this ‎Agreement:‎

 

Schedule A - Equipment

Schedule B -‎ Inventory

Schedule C – Owned Premises

Schedule D -‎ Excluded Assets

Schedule E -‎ Assigned Licenses

Schedule F - Permitted Encumbrances

Schedule G - Form of Software License

Schedule H - Allocation of Purchase Price

Schedule I - Disclosure Schedule

Schedule J - Assumed Contracts

Schedule K- Material Contracts

Schedule L- Informal Storage Yard Leases

Schedule M- ROCKit and REVit Standard
Terms and Conditions

 

Any information set forth in one Schedule or one section of a Schedule will be deemed to apply to another
Schedule or section of a Schedule to the extent its relevance to such other Schedule or section of a Schedule is reasonably apparent
(notwithstanding the omission of a reference or cross-reference thereto on, or the absence of, any Schedule relating to such other section
of the Agreement).

 

		1.3	Knowledge

 

The knowledge of the Vendor consists of the
actual knowledge or ‎awareness of [ _____ ] [ _____ ] and [ _____ ]. The knowledge of the Purchaser consists of the actual
knowledge or ‎awareness of the current officers and managers of the Purchaser whose normal responsibilities relate to the
subject matter in question. For these purposes, ‎knowledge and awareness do not include the knowledge of any Third Party or
constructive ‎or imputed knowledge. Neither Party nor any of such designated Persons ‎has any obligation to make inquiry of
any Third Party or of any files and records of any ‎Third Party in connection with representations and warranties that are made
to the Party’s ‎knowledge or awareness. ‎

 

		1.4	Interpretation

 

Unless otherwise stated or the context otherwise
necessarily requires, in this Agreement:‎

 

		(a)	references herein to any agreement or instrument, including this Agreement, shall be ‎a reference
to the agreement or instrument as varied, amended, modified, ‎supplemented or replaced from time to time;‎

 

		(b)	the terms "in writing" or "written" include printing, typewriting, email or facsimile
 ‎transmission;‎

 

		(c)	references to a statute shall be a reference to:‎

 

		(i)	that enactment as amended or re-enacted from time to time and every statute ‎that may be substituted
therefor; and

 

     

    - 9 

    

 

		(ii)	the regulations, bylaws or other subsidiary legislation made pursuant to that ‎statute;‎

 

		(d)	words importing the singular number only shall include the plural and vice versa, ‎and words importing
the use of any gender shall include all genders;‎

 

		(e)	a reference to time shall, unless otherwise specified, refer to Mountain Standard ‎Time or Mountain
Daylight Savings Time during the respective intervals in ‎which each is in force in the Province of Alberta;‎

 

		(f)	‎"including", "includes" and like terms means "including without limitation"
and ‎‎"includes without limitation";‎

 

		(g)	the terms "this Agreement", "hereto", "hereunder" and similar expressions
refer to ‎this Agreement in its entirety;‎

 

		(h)	the headings of Articles, Sections and paragraphs in this Agreement are for ‎convenience of reference
only and shall not affect the construction or ‎interpretation of this Agreement;‎

 

		(i)	unless something in the subject matter or context is inconsistent therewith, ‎references herein to
Articles, Sections and paragraphs are to Articles, ‎Sections and paragraphs of this Agreement, and references herein to ‎Schedules
are references to Schedules to this Agreement; and

 

		(j)	where a term is defined herein, a capitalized derivative of that term shall have a ‎corresponding
meaning unless the context otherwise requires.

 

		1.5	Conflicts

 

Except as specifically provided herein, if there
is any conflict or inconsistency between a ‎provision of the body of this Agreement and that of a Schedule or a conveyance document,
 ‎the provision of the body of this Agreement shall prevail.‎

 

		1.6	Guarantee

 

Guarantor hereby guarantees the ‎payment of
the amounts required to be paid by the Vendor pursuant to Article 10 and covenants with Purchaser ‎that ‎Guarantor is, and
that it shall be, directly liable as principal obligor for the performance of ‎such payment without necessity or requirement for ‎Purchaser
to ‎pursue or exhaust their remedies or recourse against Vendor.‎ Notwithstanding anything else herein contained, the maximum
liability of the Guarantor pursuant to this Agreement shall not exceed 20% of the Purchase Price.

 

Article 2

PURCHASE AND SALE

 

		2.1	Purchase and Sale of Purchased Assets

 

Subject to the terms set forth in this Agreement,
the Vendor hereby agrees to sell, ‎assign, transfer, convey and deliver to the Purchaser, and the Purchaser hereby agrees to ‎purchase
from the Vendor, free and clear of any and all Encumbrances (other than ‎Permitted Encumbrances and the HSBC Lien) whatsoever as at
the Closing Date, all of the Purchased Assets.‎

 

		2.2	Purchase Price

 

		(a)	Subject to adjustments set forth herein, the aggregate purchase price payable by the Purchaser to the
Vendor for the Purchased Assets ‎shall be One Hundred Seventeen Million Five Hundred Thousand ‎Dollars ($117,500,000.00) plus
applicable Taxes (if any) (the "Purchase ‎Price").‎

 

     

    - 10 

    

 

		(b)	At Closing, the Purchaser shall pay the Purchase Price, plus or minus any adjustments, to the Vendor by
wire transfer of immediately available funds.

 

		2.3	Sales Tax

 

		(a)	‎Vendor and Purchaser will make a joint election under section 167 of the ETA so ‎‎that the
GST will not be payable on the transfer of the Purchased Assets. The ‎‎Purchaser and Vendor will both execute the GST 44 "Election
Concerning the ‎‎Acquisition of a Business or Part of a Business" (the "GST 44 Election") to effect
 ‎‎that election. Purchaser will file the GST 44 Election with its GST return for the ‎‎reporting period in which the Closing
Date occurs.‎ Vendor and Purchaser agree that they will cooperate and use commercially reasonable efforts, in accordance with Applicable
Laws, regarding any provincial sales tax (“PST”) that may be exigible in respect of the sale of the Purchased Assets
under this Agreement, including but not limited to the Purchaser providing to the Vendor, at or before the time of Closing, a duly completed,
signed and dated certificate of exemption for any production machinery and equipment or oil and gas drilling rigs eligible for exemption.

 

		(b)	If, however, any GST or PST, is determined to be payable on or after Closing, in respect of the purchase
and sale of the Purchased Assets, the Purchaser shall pay to the Vendor, immediately upon demand, such GST or PST, which the Vendor shall
forthwith remit to the CRA (or other applicable Governmental Authority) and provide to the Purchaser evidence in writing of such remittance.
In addition, the Purchaser shall indemnify and hold harmless the Vendor Indemnitees against and in respect of any and all interest and
penalties assessed by the Minister of National Revenue (Canada) or the corresponding Governmental Authority, together with any and all
reasonable legal and professional fees incurred by Vendor Indemnitees, as a consequence of the election provided for under section 167
of the ETA not being available in respect of the Transaction, or any PST being payable in respect of the Transaction.

 

		2.4	Final Invoicing and Vendor’s Receivables

 

On or immediately prior to the Closing Date, the
Vendor shall render a final invoice for services rendered up until the Closing Date to all of its customers in respect of the Business.
The Vendor shall retain all accounts receivable of the Business accruing up to the Closing Date (the “Vendor’s Receivables”).
The Vendor shall continue to collect the Vendor’s Receivables after Closing, provided that (i) if for any reason the Purchaser
receives any of the Vendor’s Receivables, it shall hold any monies received by it on account of the Vendor’s Receivables in
trust for the Vendor, and shall remit all such monies to the Vendor on a monthly basis, and (ii) if for any reason the Vendor receives
any accounts receivable of the Business accruing after the Closing Date, it shall hold any monies received by it on account thereof in
trust for the Purchaser, and shall remit all such monies to the Purchaser on a monthly basis. The Purchaser shall, acting reasonably,
and upon request from the Vendor, assist the Vendor with the collection of the Vendor’s Receivables. Vendor will reimburse Purchaser
for Purchaser’s reasonable out-of-pocket expenses in connection with such assistance. For certainty, the limitations, caps and thresholds
in Article 10 shall not apply to the payment obligations of either Party pursuant to this Section 2.4.

 

     

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		2.5	Assumption of Liabilities

 

Effective as of the Closing Date, the Purchaser
shall assume the obligations and ‎liabilities of the Vendor in respect of:

 

		(a)	‎any liability or obligation accruing or arising on or after the Closing Date under or in ‎respect
of ‎the Assumed Contracts, the Assigned Licenses, and other ‎commitments of the Vendor relating in ‎any manner whatsoever
to the ‎Business or the Purchased Assets (other than any liability or ‎obligation ‎arising out of or relating to a breach
or default that occurred prior to the ‎‎Closing Date);

 

		(b)	any Third Party product liability or warranty liability arising at any time in respect of ‎products
or services of the Business provided by the Purchaser on or after the ‎Closing Date;

 

		(c)	subject to Section 2.7, any liability relating to an Environmental Claim or Environmental Condition
associated directly or indirectly with the Owned Premises arising at any time or migrating therefrom;

 

		(d)	any liability relating to or arising out of the conduct or operation of the Business by ‎the Purchaser
on or after the Closing Date, including without limitation, those ‎arising from: (i) personal injury (including death) or property
damage ‎Claims; or (ii) any Third Party relationship, representation, agreement or joint ‎venture; and

 

		(e)	the obligations assumed by the Purchaser under Article 4 in respect of the Acquired ‎Employees,

 

(collectively the "Assumed Liabilities")‎.

 

		2.6	Excluded Liabilities

 

Except for the Assumed Liabilities, the Purchaser
shall not assume and shall have ‎no obligation to discharge, perform or fulfill any other liabilities or obligations, contingent ‎or
otherwise, known or unknown, of the Vendor, or related to the Business or the ‎Purchased Assets (collectively the "Excluded
Liabilities") including without limitation the following in ‎connection with the conduct of the Business:‎

 

		(a)	any debt or trade payables owed by the Vendor, whether or not arising in the ‎ordinary course of business,
whether recorded or unrecorded, from sales or ‎services rendered to the Vendor prior to the Closing Date;‎

 

		(b)	any assessment or reassessment for Taxes, including income, corporate, capital, ‎sales, excise or
other taxes or duties of any kind whatsoever of the Vendor, ‎or relating to the Business or the Purchased Assets for any period prior
to the ‎Closing Date;‎

 

		(c)	any Third Party product liability or warranty liability arising at any time in respect of ‎products
or services of the Business provided by the Vendor prior to the ‎Closing Date;‎

 

		(d)	any liability or obligation accruing before, on or after the Closing Date in respect ‎of any Employee
who is not an Acquired Employee, and any liability or obligation in respect of any Acquired Employee accruing before the Closing Date
(in their capacity as a director, officer or employee);

 

		(e)	any liability arising out of any default, breach or penalty by, of or against the ‎Vendor under any
Contract not assumed by the Purchaser, or for any ‎liability relating to the period prior to the Closing Date in the case of any ‎Contracts
assumed by the Purchaser;‎

 

		(f)	any liability relating to the execution, delivery and consummation of this Agreement ‎by the Vendor,
 ‎including without limitation any and all Taxes incurred by the Vendor as a ‎result of the Transaction contemplated by this Agreement,
except as may ‎otherwise be expressly assumed herein; and‎

 

     

    - 12 

    

 

		(g)	any liability relating to or arising out of the conduct or operation of the Business by ‎the Vendor
prior to the Closing Date, including without limitation, those ‎arising from: (i) personal injury (including death) or property
damage ‎Claims; (ii) any Third Party relationship, representation agreement or joint ‎venture not specifically assumed hereunder;
(iii) any indebtedness of the ‎Vendor other than that expressly assumed hereunder; or (iv) other than as ‎set forth
in Article 4, any relationship with Employees or employee related ‎obligation.‎

 

		2.7	UST Phase II and Remedial Estimate

 

		(a)	The Vendor has undertaken and the Purchaser has received and reviewed a Phase I Environmental Site Assessment
(Phase I ESA) prepared by a qualified environmental consultant relating to the Owned Premises, which identified the presence of a former
underground storage tank (“UST”) adjacent to the northwest portion of Site Building C. The Vendor has initiated further
investigation consistent with a Phase II Environmental Site Assessment in the area of the former UST for purposes of identifying the presence
of Contaminants of Concern in soil or groundwater in, on or under the former UST area at Site Building C (hereafter the “UST
Phase II Assessment”). The Vendor shall pay for the costs of the investigation proposed in the UST Phase II Assessment. The
results of the UST Phase II investigation shall be provided to the Purchaser within five (5) Business Days of receipt of same by
the Vendor in a report (the “UST Phase II Report”), it being agreed that one or more of the UST Phase II Assessment
or UST Phase II Report are not required in advance of the Closing Date and may be completed after Closing.

 

		(b)	In the event that the UST Phase II Report finds Contaminants of Concern
are present in, on or under Site Building C, and such presence (i) requires remediation under the Alberta Tier 1 or Tier 2
Soil and Groundwater Remediation Guidelines, dated January 10, 2019, as applicable, for the Contaminants of Concern, and (ii) is
feasible, it being understood and agreed by the Parties that the presence of Contaminants of Concern may not require remediation or such
remediation may not be feasible depending on the location of such Contaminants of Concern in relation to Site Building C, then the Vendor
shall obtain an estimate for the remedial costs to remedy, mitigate or otherwise manage the presence of Contaminants of Concern (the “UST
Remedial Estimate”) to bring the concentration of the Contaminants of Concern into compliance with Applicable Laws.

 

		(c)	The Vendor shall provide a copy of the UST Remedial Estimate to the Purchaser.

 

		(d)	The Purchaser may elect to proceed with the work proposed in the UST Remedial Estimate or not in its sole
discretion. If the Purchaser elects to proceed with the work proposed in the UST Remedial Estimate with amendments, provided (i) such
amendments do not increase the costs to be incurred by more than 10% (excluding Taxes); (ii) the Purchaser provides such amended
form of the UST Remedial Estimate to the Vendor within thirty (30) days of receipt of the original UST Remedial Estimate; and (iii) the
Vendor accepts such amendments, acting reasonably, then such amended UST Remedial Estimate form will be considered the approved UST Remedial
Estimate (hereafter the “Amended UST Remedial Estimate”).

 

		(e)	For the following paragraphs, UST Remedial Estimate includes an Amended UST Remedial Estimate, as applicable:

 

		(i)	provided the Purchaser proceeds and completes the remediation under the UST Remedial Estimate within a
period of two (2) years from the date of the UST Remedial Estimate (or Amended UST Remedial Estimate, whichever is later), the Vendor
and Purchaser agree as follows in respect of the costs:

 

		A.	Vendor shall be responsible for any amounts up to and including the first one hundred thousand dollars
($100,000) of the costs incurred under the UST Remedial Estimate;

 

     

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		B.	Vendor and Purchaser shall be equally responsible for costs incurred under the UST Remedial Estimate which
are in excess of the first one hundred thousand dollars ($100,000) and less than or equal to five hundred thousand dollars ($500,000);
and

 

		C.	Purchaser shall be solely responsible for costs incurred under the UST Remedial Estimate in excess of
five hundred thousand dollars ($500,000);

 

and in no event shall the Vendor be responsible
for any remedial, mitigative or management costs relating to the presence of the Contaminants of Concern in excess of the amounts stated
above.

 

		(ii)	In each case above where the Vendor has obligations for any portion of the costs incurred, the Purchaser
shall submit proof of payment as well as the original invoicing from the applicable Third Party for the work conducted pursuant to the
UST Remedial Estimate to the Vendor in accordance with Section 12.1. The Vendor shall remit payment as determined in accordance with
this Section 2.7, within thirty (30) days after receipt by the Vendor of such proof of payment and original invoicing from the applicable
Third Party.

 

		(f)	For greater certainty, the Vendor’s indemnification for an Environmental Condition under and as
restricted herein does not create any general indemnity by the Vendor for Environmental Conditions and there is no indemnification under
Article 10 relating to Environmental Conditions other than as explicitly set out thereunder.

 

		2.8	Allocation of Purchase Price

 

The Purchase Price shall be allocated among the
Purchased Assets as set forth in ‎Schedule H. The Parties will file all tax returns and related forms in accordance with ‎Schedule
H and will not make any inconsistent statement or take any inconsistent position ‎on any tax returns, in any refund claim or during
the course of any CRA or other tax audit. ‎Each Party will notify the other Party if it receives notice that CRA proposes any allocation
 ‎that is different from the allocation as set forth in Schedule H.

 

Article 3

REPRESENTATIONS AND WARRANTIES

 

		3.1	Representations and Warranties of the Vendor

 

The Vendor represents and warrants as of the date
hereof, to the Purchaser as follows, and acknowledges and confirms that the Purchaser is relying on such ‎representations and warranties
in connection with the completion of Closing, it being understood that except as set out in this Agreement and subject to the representations
and warranties made by the Vendor herein, (i) the Purchaser agrees that the Purchased Assets are being sold by the Vendor to the
Purchaser, and purchased by the Purchaser, on an “as is, where is” basis, and (ii) further in regards to the Owned Premises,
without regard for the state of repair or condition of the Owned Premises, including, without limitation, the presence or existence of
any Hazardous Material, or Environmental Condition in, on or under, or flowing onto or from the Owned Premises or affecting or regarding
the status, state of repair, condition or use of the Owned Premises. Further, except as set out in this Agreement and subject to the representations
and warranties made by the Vendor herein, the Vendor has made no representation or warranty in respect of the physical condition, zoning
or use (past or present) of the Owned Premises, or its suitability for any intended present or future use, except as expressly provided
herein. The Purchaser acknowledges that, except as expressly set forth in this Agreement (including the representations and warranties
made by the Vendor herein) there are no agreements, representations, promises, warranties, guarantees or conditions of any kind whatsoever,
statutory or otherwise, express or implied, with respect to the Purchased Assets.

 

     

    - 14 

    

 

		(a)	Corporate Status

 

Vendor is a corporation duly incorporated
and organized and validly existing under the laws ‎of the Province of Alberta and has the corporate power to own its property, to
carry on the ‎Business and to enter into this Agreement and to perform its obligations hereunder. The ‎Vendor is duly qualified
to do business in Alberta and each other jurisdiction in which the ‎nature of the Business or the Purchased Assets makes such qualification
necessary except ‎where the failure to be so qualified would not have a material adverse effect on the ‎Business or the Purchased
Assets.‎

 

		(b)	Authorization, Enforceability

 

This Agreement has been duly authorized,
executed and delivered by the Vendor and is a legal, valid ‎and binding obligation of the Vendor, enforceable against it by the Purchaser
in accordance ‎with its terms‎, subject to bankruptcy, winding-up, insolvency, moratorium, arrangement, ‎reorganization and
other ‎similar laws affecting creditors’ rights generally, and to general ‎principles of equity.‎

 

		(c)	Bankruptcy

 

Vendor is not an insolvent Person within
the meaning of the Applicable Law and has not ‎made an assignment in favour of its creditors or a proposal in bankruptcy to its creditors
or ‎any class thereof, and no petition for a receiving order has been presented in respect of it. It ‎has not initiated proceedings
with respect to a compromise or arrangement with its creditors ‎or for its winding up, liquidation or dissolution. No receiver or
interim receiver has been ‎appointed in respect of it or any of its undertakings, property or assets (including any of the ‎Purchased
Assets) and no execution or distress has been levied on any of its undertakings, ‎property or assets (including any of the Purchased
Assets), nor have any proceedings been ‎commenced in connection with any of the foregoing.‎

 

		(d)	No Other Agreements to Purchase

 

The Vendor has not entered into any written
or oral agreement or option or any right or ‎privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement
or ‎option for the purchase or acquisition from the Vendor of any of the Purchased Assets.‎

 

		(e)	No Violation

 

The execution, delivery and performance
of this Agreement by the Vendor, and the ‎completion by the Vendor of the Transaction contemplated by this Agreement does not ‎
result in the breach or violation of any of the provisions of, or constitute a ‎default under, or conflict with or cause the acceleration
of any obligation of the Vendor‎, except in the cases of clauses (i) (iii), (iv) and (v), where the breach, violation, default,
conflict, or acceleration would not have a material adverse effect under:‎

 

		(i)	any Assumed Contract or other Contracts by which the Purchased Assets are bound;‎

 

		(ii)	any provision of the constating documents or by-laws or resolutions of the ‎board of directors of
the Vendor;‎

 

		(iii)	any judgment, decree, order or award of any court, Governmental Authority or ‎arbitrator having jurisdiction
over the Vendor;‎

 

		(iv)	any Assigned License, or

 

     

    - 15 

    

 

		(v)	any Applicable Law, statute, ordinance, regulation or rule.‎

 

		(f)	Title to Purchased Assets

 

The Vendor has good and marketable title
to the Purchased Assets, free and clear of all ‎Encumbrances, except for (i) Permitted Encumbrances and (ii) the HSBC Lien.

 

		(g)	Purchased Assets

 

Except as set out in the Disclosure Schedule,

 

		(i)	Schedule A contains a complete list of all drilling rigs included as part of the Equipment of the Vendor,
 ‎together with the current location of all such drilling rigs; ‎

 

		(ii)	the spare parts, raw materials, replacement parts, materials and other similar assets forming part of
the Purchased Assets are in amounts which have been sufficient for the Vendor to carry on the Business in the ordinary course; and ‎

 

		(iii)	the Purchased Assets together with the Excluded Assets ‎constitute all ‎of the assets used or
held by the Vendor in the operation of the ‎Business.

 

		(h)	Equipment

 

Except as set out in the Disclosure Schedule,
the drilling rigs forming part of the Equipment that are in operation as at the date hereof have been operated and maintained in compliance
 ‎with good and prudent ‎oilfield practices in Canada and all Applicable Laws, are in ‎good condition and are ‎useable
in the ordinary course of the Business, except to the extent of ‎ordinary wear and ‎tear and the need for periodic repair and
replacement in the ordinary course ‎of the ‎Business.‎

 

		(i)	Contracts

 

		(i)	Attached as Schedule K is a complete list of all Contracts ‎which
are material to the conduct of the Business as it is currently ‎being carried on (collectively, the "Material Contracts").

 

		(ii)	Each of the Assumed Contracts is in full force and effect and constitutes a ‎legal, valid and ‎binding
obligation of the Vendor, enforceable ‎against it in accordance with its terms. To the ‎knowledge of the ‎Vendor, none of
the parties to any Assumed Contract is in material ‎‎breach of its obligations thereunder and no act or event has occurred ‎which,
with the notice or ‎lapse of time or both, would constitute a ‎material breach of any of the Assumed Contracts. To the knowledge
of the Vendor, the ‎Vendor is ‎entitled to all of the material benefits, rights and privileges under each such ‎Assumed Contract.‎

 

     

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		(j)	Compliance with Laws; Governmental Authorization

 

Except as set out in the Disclosure Schedule,
the Vendor (i) has materially complied with all laws, statutes, ordinances, regulations, rules, ‎judgments, decrees or orders
applicable to the Business as currently conducted or to the Purchased Assets as currently used and (ii) holds ‎all licenses,
permits, approvals, consents, certificates, registrations and authorizations ‎‎(whether governmental, regulatory or otherwise)
(the "Licenses") required in ‎connection with the ownership of the Purchased Assets, except where the failure to
obtain such ‎other licenses, permits, approvals, consents, certificates, registrations or ‎authorizations necessary to own or
operate any of the Purchased Assets would not have a material adverse effect. ‎ Schedule E sets out all ‎of the Licenses and identifies
which Licenses will be assigned to the Purchaser at Closing ‎‎(the "Assigned Licenses"). Each Assigned License
is valid, existing and in good standing and Vendor is not in default or breach ‎of any Assigned License and no proceeding is pending
or, to the knowledge of the Vendor, ‎threatened to revoke or limit any Assigned License. The Vendor has provided a true and complete
 ‎copy of each Assigned License and all amendments thereto to the Purchaser.

 

		(k)	Consents and Approvals

 

		(i)	No material authorizations are required on the part of the Vendor in ‎connection with the Transaction
or the performance of its other ‎obligations under this Agreement other than the Competition Act ‎Approval.‎

 

		(ii)	Except as set forth in the Disclosure Schedule, there is no requirement ‎under any Contract relating
to the Business or Purchased Assets to ‎which the Vendor is a party or by which it is bound to give any ‎notice to, or to obtain
the consent or approval of, any party to such ‎agreement, instrument or commitment relating to the consummation ‎of the Transaction
contemplated by this Agreement.‎

 

		(l)	Books and Records

 

The books of account, financial records
and other records of the Vendor as they relate to ‎the Purchased Assets, all of which have been made available to the Purchaser, are
complete ‎and correct in all material respects.‎

 

		(m)	Litigation

 

There are no actions, suits or proceedings
filed or, to the knowledge of the Vendor, ‎threatened against or affecting any of the Purchased Assets at law or in ‎equity or
before or by any federal, provincial, municipal or other governmental department, ‎court, commission, board, bureau, agency or instrumentality,
domestic or foreign, or before ‎or by an arbitrator or arbitration board.‎

 

		(n)	Insurance

 

The Purchased Assets are insured against
loss or damage by all insurable ‎hazards ‎or risks on replacement cost basis and such insurance coverage will be continued in
 ‎full force ‎and effect with all premiums paid up to and including the Closing Date. ‎

 

		(o)	Environmental

 

Except as set out in the Disclosure Schedule:

 

		(i)	to the knowledge of the Vendor, for the last two (2)  years in respect
of the Purchased Assets, the Vendor has been in material compliance with all Environmental Laws.

 

		(ii)	the Vendor holds all Environmental Permits required for the use and operation of ‎the Purchased Assets.
To the knowledge of the Vendor, each Environmental ‎Permit is valid, existing and in good standing, and the Vendor is not ‎in
default or breach of any Environmental Permit and no proceeding ‎is pending or threatened to revoke, amend or limit any ‎Environmental
Permit;

 

     

    - 17 

    

 

		(iii)	in the last two (2) years, the Vendor has not, in respect of the Owned Premises and the ‎Purchased
Assets, received any notice of any Environmental Claims ‎or been prosecuted for non-compliance with any Environmental ‎Laws, nor
has Vendor settled any allegation of non-compliance short ‎of prosecution. There are not presently any Environmental Claims pending
against or relating to the Owned Premises. There are no orders or directions relating to ‎environmental matters requiring any work,
repairs or construction or ‎capital expenditures to be made with respect to the ‎Owned Premises or the Purchased Assets, nor has
Vendor received ‎notice of any of the same and to the knowledge of the Vendor, there ‎is no basis for any such proceeding;

 

		(iv)	the Vendor has not received any notice that the Vendor is potentially ‎responsible for a federal,
provincial, municipal or local clean-up site ‎or corrective action under any Environmental Laws in connection ‎with the Purchased
Assets or the Owned Premises; and

 

		(v)	to the knowledge of the Vendor there are no Environmental Conditions on, ‎under or relating to the
Owned Premises, and there has not been any ‎spill, burial, release, migration or removal of any Hazardous Material ‎into, on or
under the Owned Premises, or into, on or under any lands ‎adjacent thereto, in violation of Environmental Laws.‎

 

		(p)	Owned Premises

 

Except as set out
in the Disclosure Schedule:

 

		(i)	The Vendor has indefeasible title in fee simple to the Owned Premises, and ‎no party has any rights
in, or to acquire, lease (other than the Canrig Lease) or use any of the ‎Owned Premises. ‎

 

		(ii)	The improvements located on the Owned Premises are operated in ‎material compliance with all Applicable
Laws, insurance requirements, ‎contracts, leases, permits, Licenses, covenants, reservations and ‎easements. Vendor has not received
any notice, written or oral, ‎claiming any violation of any of the same or requesting or requiring ‎the performance of any repairs,
alterations, or other work in order to ‎so comply.‎

 

		(iii)	To the knowledge of the Vendor, the Owned Premises are not subject to any ‎zoning classification which
is inconsistent with the Business, and to ‎the knowledge of the Vendor there are no proceedings pending or ‎contemplated to alter
such classification.‎

 

		(iv)	There are no leases (other than the Canrig Lease), subleases, licenses, concessions or other agreements,
 ‎written or oral, granting to any Third Party the right to use or ‎occupancy of the Owned Premises or any portion thereof.‎

 

		(v)	All buildings located on the Owned Premises are adequate and ‎suitable for the purposes for which
they are currently being used. ‎None of the buildings, nor the operation or maintenance thereof, materially ‎violates any restrictive
covenant or to the knowledge of the Vendor, any provision of any federal, ‎provincial or municipal law, ordinance, rule or regulation,
or ‎encroaches on any property owned by others.‎

 

     

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		(q)	Customers and Suppliers

 

The Vendor has provided to the Purchaser
a list of the twenty largest customers of the Business (the “Major Customers”) and the twenty ‎largest suppliers
of the Business (the “Major Suppliers”) that during the calendar year ending December 31, ‎‎2020 supplied
to the Business or purchased ‎services or goods from the Business. Since January 1, 2021, there has been no termination or cancellation
of, and ‎to the knowledge of the Vendor, no material deterioration in, the business relationship of ‎the Vendor with any of the
Major Customers or Major Suppliers. To the knowledge of the Vendor, there are no threatened cancellation of any business relationships
by ‎any Major Customers of the Business that would have a material adverse effect on the Business.‎

 

		(r)	Vendor Benefit Plans

 

		(i)	The Employment Matters Disclosure Letter contains a complete and accurate list of all Vendor Benefit ‎Plans.
Vendor has provided Purchaser with true and correct copies of ‎all Vendor Benefit Plans. The Vendor Benefit Plans for the Business
do not ‎include any defined benefit pension plans. ‎

 

		(ii)	Vendor has not contributed to and has no liability with respect to a "multiemployer plan" with
respect to the Acquired Employees.

 

		(iii)	No Proceedings with respect to any Benefit Plan are pending or, to the Vendor’s knowledge, threatened
and no facts exist which could reasonably be expected to give rise ‎to any such actions, suits, proceedings or claims for which the
Purchaser would be responsible. ‎

 

		(s)	Employment Matters

 

		(i)	Except as set out in the Employment Matters Disclosure Letter there are no complaints, charges or claims
against the Vendor pending or, to the Vendor’s knowledge, threatened to be brought or filed with ‎any Governmental Authority
based on, arising out of, in connection ‎with, or otherwise relating to the employment by Vendor of any ‎Employee, including any
claim for workers' compensation benefits.

 

		(ii)	To the Vendor’s knowledge, no Acquired Employee is a party to, or is otherwise bound by, any confidentiality,
 ‎non-competition, proprietary rights agreement or similar agreement ‎that would affect: (i) the performance of his or her
duties as an ‎Employee; or (ii) the ability of the Purchaser to use and operate the Purchased Assets ‎after the Closing Date.‎

 

		(iii)	The Employment Matters Disclosure Letter contains a complete list of all Employees of the Vendor (including
 ‎any Employee who is on a leave of absence, including ‎any type of military, family, medical, bereavement or other leave of ‎absence)
and sets forth, with respect to each Employee, such Employee’s job title, current annual ‎salary and/or hourly rate of pay,
work location, hire date and ‎active/inactive status.

 

		(iv)	‎Except as otherwise set out in the Employment Matters Disclosure Letter, within the last three years,
Vendor has not:

 

		A.	violated any Applicable Law relating to employment and employment practices, terms and conditions of employment,
or wages and hours in connection with the employment of any of the Acquired Employees;

 

     

    - 19 

    

 

		B.	been party to or bound by, either directly or by operation of law, any collective bargaining agreement
or other labour union agreement with any trade union or association which may qualify as a trade union in relation to the Business, including
any collective bargaining agreement or other agreement subject to enforcement under the Alberta Labour Relations Code, and none
of the Acquired Employees are subject to any such agreement;

 

		C.	been subject to any labour strike, or other collective work stoppage or slowdown in relation to the
Employees. To the Vendor’s knowledge, there are no union organizing efforts involving the Employees, and no such efforts have been
threatened; or

 

		D.	implemented any plant closing, mass layoff or redundancy that would require notice and/or consultation
(without regard to any actions that could be taken by Purchaser following the Closing) under Applicable Law that have not been satisfied
prior to the Closing, excluding any such plant closing or mass layoff that takes effect as of the Closing.

 

		(v)	There are no unfair labour practice charges or complaints pending or to the Vendor’s knowledge,
threatened against Vendor in relation to the Employees.

 

		(t)	‎Finder's Fee

 

Save and except for amounts payable solely
by the Vendor, there is no investment banker, ‎broker, finder or other intermediary that has been retained by or is authorized to
act on ‎behalf of the Vendor who might be entitled to any fee or other commission in connection ‎with the Transactions contemplated
by this Agreement.‎

 

		(u)	Residency

 

Vendor is not a non-resident of Canada
within the meaning of the Tax Act.‎

 

		(v)	GST Registration

 

The Vendor is a GST registrant and its
GST registration number under the ETA is 852865591 RT0002. Solely for GST purposes, the Purchased Assets form all or substantially all
of the property that can reasonably be regarded as necessary for the Purchaser to be capable of carrying on the Business.

 

		(w)	Full Disclosure

 

To the knowledge of the Vendor, the Vendor
has provided to the Purchaser all material information in its possession that is relevant ‎to the Business and the Purchased Assets.‎

 

		3.2	Survival

 

The representations and warranties of the Vendor
contained in this Agreement shall survive ‎the Closing for a period of one (1) year from the Closing Date (and shall not merge
thereon ‎or therein), provided that, the representations and warranties of the Vendor contained in (i) ‎Section 3.1(o) (environmental)
shall survive the Closing Date for two (2) years; (ii) Section 3.1(f) (title) ‎and any breach by the Vendor of
any representations and warranties contained in this ‎Agreement that constitute fraud or willful misconduct, shall survive the Closing
Date indefinitely, but subject to applicable limitation periods imposed by Applicable Law.‎

 

     

    - 20 

    

 

		3.3	Representations and Warranties of the Purchaser

 

The Purchaser represents and warrants as of the
date hereof to the Vendor, and acknowledges and confirms that ‎the Vendor is relying on such representations and warranties in connection
with the ‎completion of Closing by the Vendor:‎

 

		(a)	Organization and Standing of the Purchaser

 

Purchaser is a corporation duly incorporated
and organized and validly ‎existing under the laws of the Province of Alberta and has the corporate ‎power to enter into this
Agreement and to perform its obligations hereunder.

 

		(b)	Authorization

 

This Agreement has been duly authorized,
executed and delivered by the ‎Purchaser and is a legal, valid and binding obligation of the Purchaser, ‎enforceable against the
Purchaser by the Vendor in accordance with its ‎terms‎, subject to bankruptcy, winding-up, insolvency, moratorium, ‎arrangement,
reorganization and other ‎similar laws affecting creditors’ rights ‎generally, and to general principles of equity.‎

 

		(c)	Bankruptcy

 

Purchaser is not an insolvent Person within
the meaning of Applicable ‎Law and has not made an assignment in favour of its creditors or a ‎proposal in bankruptcy to its creditors
or any class thereof, and no petition ‎for a receiving order has been presented in respect of it. It has not initiated ‎proceedings
with respect to a compromise or arrangement with its creditors ‎or for its winding up, liquidation or dissolution. No receiver or
interim ‎receiver has been appointed in respect of it or any of its undertakings, ‎property or assets (including any of the Purchased
Assets) and no ‎execution or distress has been levied on any of its undertakings, property ‎or assets (including any of the Purchased
Assets), nor have any ‎proceedings been commenced in connection with any of the foregoing.‎

 

		(d)	No Violation

 

The execution and delivery and performance
of this Agreement by the Purchaser and the ‎consummation of the Transactions contemplated by this Agreement do not result in the ‎violation
of, or constitute a default under, or conflict with or cause the ‎acceleration of any obligation of the Purchaser under:‎

 

		(i)	any Contract to which the Purchaser is a party or by which it ‎is bound;‎

 

		(ii)	any provision of the constating documents or by-laws or resolutions of the ‎boards of directors of
the Purchaser;‎

 

		(iii)	any judgment, decree, order or award of any court, Governmental Authority or ‎arbitrator having jurisdiction
over the Purchaser; or

 

		(iv)	any Applicable Law.‎

 

		(e)	Consents and Approvals

 

No material authorizations are required
on the part of the Purchaser in ‎connection with the Transaction or the performance of its other obligations ‎under this Agreement
other than the Competition Act Approval.‎

 

     

    - 21 

    

 

		(f)	GST Registration

 

The Purchaser is a GST registrant and
its GST registration number ‎under the ETA is 13501 5527 RC0004 RT0001. Solely for GST purposes, the Purchased Assets form all or
substantially all of the property that can reasonably be regarded as necessary for the Purchaser to be capable of carrying on the Business.

 

		(g)	PST Registration

 

		(i)	The Purchaser is a Saskatchewan
PST registrant and its PST registration number ‎under The Provincial Sales Tax Act (Saskatchewan) is 5410808.

 

		(ii)	The Purchaser is a British Columbia
PST registrant and its PST registration number ‎under The Provincial Sales Tax Act (British Columbia) is 1055-5948.

 

		(h)	Independent Investigation

 

Purchaser has conducted its own independent
investigation, review and analysis of the Business and the Purchased Assets, and acknowledges that it has been provided adequate access
to the personnel, properties, assets, premises, books and records, and other documents and data of Vendor for such purpose. The Purchaser
acknowledges and agrees that: (a) in making its decision to enter into this Agreement and to consummate the transactions contemplated
hereby, the Purchaser has relied solely upon its own investigation and the express representations and warranties of the Vendor set forth
in Section 3.1 (including related portions of the Disclosure Schedules); and (b) neither the Vendor nor any other Person has
made any representation or warranty as to the Vendor, the Business, the Purchased Assets or this Agreement, except as expressly set forth
in 3.1 (including the related portions of the Disclosure Schedules).

 

		(i)	Sufficiency of Funds

 

The Purchaser on the Closing Date will
have, sufficient cash on hand or other sources of immediately available funds to enable it to make payment of the Purchase Price and consummate
the Transaction contemplated by this Agreement.

 

		3.4	‎Survival

 

The representations and warranties of the Purchaser
contained in this Agreement shall ‎survive the Closing for a period of one (1) year from the Closing Date (and shall not merge
 ‎thereon or therein), provided that, any breach by the Purchaser of any representations and ‎warranties contained in this Agreement
that constitute fraud or willful misconduct shall ‎survive the Closing Date indefinitely, but subject to applicable limitation periods
imposed by Applicable Law.‎‎

 

		3.5	Representations and Warranties of the Guarantor

 

The Guarantor represents and warrants as of the
date hereof to the Purchaser and acknowledges and confirm that the Purchaser is relying on such ‎representations and warranties in
connection with the completion of Closing, as follows:‎

 

		(a)	Corporate Status

 

Guarantor is an exempted company duly
incorporated and organized and validly existing under the ‎laws of Bermuda and has the corporate power to enter into this Agreement
and to perform ‎its obligations hereunder.

 

     

    - 22 

    

 

		(b)	Authorization

 

This Agreement has been duly authorized,
executed and delivered by the Guarantor ‎and is a legal, valid and binding obligation of the Guarantor, enforceable ‎against it
by the Purchaser in accordance with its terms‎, subject to ‎bankruptcy, winding-up, insolvency, moratorium, arrangement, ‎reorganization
and other ‎similar laws affecting creditors’ rights generally, ‎and to general principles of equity.‎

 

		(c)	Bankruptcy

 

Guarantor is not an insolvent Person within
the meaning of Applicable ‎Law and has not made an assignment in favour of its creditors or a ‎proposal in bankruptcy to its creditors
or any class thereof, and no petition ‎for a receiving order has been presented in respect of it. It has not initiated ‎proceedings
with respect to a compromise or arrangement with its creditors ‎or for its winding up, liquidation or dissolution. No receiver or
interim ‎receiver has been appointed in respect of it or any of its undertakings, ‎property or assets (including any of the Purchased
Assets) and no ‎execution or distress has been levied on any of its undertakings, property ‎or assets (including any of the Purchased
Assets), nor have any ‎proceedings been commenced in connection with any of the foregoing.‎

 

		(d)	No Violation

 

The execution, delivery and performance
of this Agreement by the Guarantor, and the ‎transactions contemplated by this Agreement do not result in the breach or ‎violation
of any of the provisions of, or constitute a default under, or conflict with or cause ‎the acceleration of any obligation of the Guarantor
under:‎

 

		(i)	any Contract to which the Guarantor is a party or by which it is bound;‎

 

		(ii)	any provision of the constating documents or by-laws or resolutions of the ‎board of directors of
the Guarantor;‎

 

		(iii)	any judgment, decree, order or award of any court, Governmental Authority or ‎arbitrator having jurisdiction
over the Guarantor; or

 

		(iv)	any Applicable Law.‎

 

		3.6	Survival

 

The representations and warranties of the Guarantor
contained in this Agreement shall ‎survive the Closing for a period of one (1) year from the Closing Date (and shall not merge
 ‎thereon or therein), provided that, any breach by the Guarantor of any representations and ‎warranties contained in this Agreement
that constitute fraud or willful misconduct shall ‎survive the Closing Date indefinitely, but subject to applicable limitation periods
imposed by Applicable Law.‎‎

 

Article 4

EMPLOYEES

 

		4.1	The Vendor to Continue to Employ until Closing Date

 

The Vendor will employ all of the Employees until 11:59 p.m. on
the day ‎immediately preceding the Closing Date on the same terms and conditions as ‎are in effect on the date hereof and shall
not make any changes to the terms ‎and conditions of employment outside the ordinary course of business, unless approved by the Purchaser.
 ‎

 

     

    - 23 

    

 

		4.2	The Purchaser to Offer Employment

 

		(a)	‎The Purchaser will offer employment to all Employees other than the Protected Employees conditional
upon Closing and effective as of the Closing Date. The offers to all Employees other than Designated Employees will be on substantially
similar in the aggregate ‎terms and conditions of ‎employment to those currently in effect ‎with such Employees in ‎connection
with their employment with the Vendor and recognizing the Employee’s past service with the Vendor ‎‎(the "Offers").

 

		(b)	The Purchaser shall provide to the Vendor for its approval, not to be unreasonably
 ‎withheld, the form of Offer to be presented to the Employees ‎which shall be provided to the Vendor at least five (5) Business
Days prior to the day on which the Competition Act Approval is expected to be obtained, and Vendor will approve the form of Offer (subject
to any reasonable comments or changes having been made) as aforesaid no later than the day on which the Competition Act Approval is obtained.

 

		(c)	The Offers ‎shall be delivered to the Employees on the Business Day following the Vendor’s approval
set forth in paragraph 4.2(b) and be open for acceptance by the Employees for at least three (3) Business Days.‎ Any Employee
who accepts an Offer shall, conditional upon Closing, ‎become an employee of the Purchaser as of the Closing Date and shall be referred
to ‎herein as an ‎‎"Acquired Employee". The hiring of the Acquired Employees by the ‎Purchaser shall
not be deemed a violation of any non-‎compete agreements or related ‎agreements by and between the Vendor and ‎any Acquired
Employee‎.‎

 

		(d)	The offers to Designated Employees will be in Purchaser’s sole discretion.

 

		(e)	Effective as of the Closing Date, and conditional upon Closing occurring, the employment of the Acquired
Employees by the Vendor and the participation of Acquired Employees in the Vendor Benefit Plans will cease.‎

 

		(f)	Effective as of the Closing Date the employment of the Employees (other than the Acquired Employees) by
the Vendor and the participation of such Employees in the Vendor Benefit Plans may, at Vendor’s option, cease.‎ In respect of
such Employees who are Designated Employees, the Vendor will be responsible for 50% of the severance liability arising as a result of
such Designated Employee’s length or ‎term of service with the Vendor or any of its predecessors, ‎subsidiaries and Affiliates,
and the Purchaser will be responsible for the other 50% of such liability. In respect of all such Employees to whom this subsection (f) applies,
other than Designated Employees, the Vendor will be responsible for 100% of such liability.

 

		(g)	From the date hereof to the Closing Date, the Vendor shall encourage the ‎Employees who receive an
Offer to accept the Offer and shall not take ‎any action to offer the Employees alternate employment.‎

 

		(h)	Notwithstanding the foregoing, the Purchaser shall not offer employment to the Protected Employees.

 

		(i)	The Employment Matters Disclosure Letter sets forth, for each of the Employees, accrued but unused vacation
time as of the date hereof. Vendor ‎shall be solely responsible, and Purchaser shall have no obligation for any compensation or other
amounts payable to any Employee or any of Vendor’s former employees employed by the Business, including ‎without limitation
hourly pay, commission, bonus, salary, accrued vacation, overtime, fringe benefit, pension, profit sharing benefits or severance pay,
 ‎for any period relating to the service of the Employee or former employee with Vendor at any time prior to ‎the Closing Date.‎

 

     

    - 24 

    

 

		(j)	Nothing in this Section 4.2: (i) is intended to or shall confer upon any Person other ‎than
the parties to this Agreement, including any current or former employee, or labour union, any right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement; or (ii) shall confer upon any current or former employee, officer, director, or consultant
any ‎right to employment or continued employment or continued service with‎ Purchaser or any of its Affiliates, or constitute
or create an employment agreement with any employee.‎

 

		(k)	Effective upon Closing, the Purchaser shall provide the Acquired Employees with ‎immediate coverage
under, or participation in, the Purchaser's employee benefits plan, subject to the terms and conditions of those plans, and shall ensure
that any wait times, pre-existing condition requirements or other pre-conditions to immediate coverage under the Purchaser’s employee
benefit plans are waived.

 

		(l)	‎Purchaser shall be solely responsible, and Vendor shall have no obligation for any compensation or
other amounts payable to any Acquired Employee, including without limitation hourly pay, commission, bonus, salary, accrued vacation,
overtime, fringe benefit, pension, profit sharing benefits or severance pay for any period relating to the service of the Acquired Employee
with the Purchaser on or after the Closing Date.

 

		(m)	In the event that the Seconded Employee becomes an Acquired Employee, on the Closing Date, the Purchaser
and Vendor shall enter into a secondment agreement in respect of the Seconded Employee (the “Secondment Agreement”)
whereby the Seconded Employee will provide services to the Vendor in accordance with the terms of a Secondment Agreement, the form of
which to be mutually agreed to by the Purchaser and Vendor, acting reasonably.

 

		4.3	Employment Liabilities

 

		(a)	The Purchaser agrees to assume liability for and indemnify the Vendor and its ‎Affiliates, successors
and assigns from and against any Claim or loss ‎suffered or incurred by the Vendor or its Affiliates, successors or assigns that ‎accrues
on or after the Closing Date arising from the employment of any Acquired Employees, or the termination or constructive ‎dismissal
of any Acquired Employees, including but not limited to:‎

 

		(i)	severance liability arising as a result of such Acquired Employee’s length or ‎term of service
with the Vendor or any of its predecessors, ‎subsidiaries and affiliates;‎ and

 

		(ii)	any liability arising as a result of changes to the terms and conditions of ‎such Acquired Employee’s
employment.

 

		(b)	‎The Vendor agrees to assume liability for and indemnify the Purchaser and its ‎Affiliates, ‎successors
and assigns from and against any Claim or loss ‎suffered or incurred by the ‎Purchaser and its Affiliates, and their successors
or assigns, that ‎arises on or after the ‎Closing Date relating to the employment of an Acquired Employee prior to the Closing
 ‎Date‎, with the exception of any liability expressly assumed by the Purchaser in Section 4.3(a).

 

     

    - 25 

    

 

Article 5

PURCHASER’S CONDITIONS

 

The obligation of Purchaser to complete the Transaction
in accordance with this Agreement ‎shall be subject to the satisfaction of, or compliance with, as of the Closing Date, ‎each
of the following conditions (collectively, the "Purchaser’s Conditions") each of ‎which is acknowledged to
be inserted for the exclusive benefit of Purchaser and may be ‎waived by Purchaser in whole or in part:‎

 

		5.1	Correctness and Accuracy of Representations and Warranties

 

The representations and warranties of Vendor and
the Guarantor contained in Section 3.1 and 3.5 shall be correct and accurate in all material respects as at the Closing Date with
the same effect as if made ‎at and as of the Closing Date, and Purchaser shall have received a certificate to that effect as of the
Closing Date from officers of the Vendor and Guarantor.‎

 

		5.2	Performance of Obligations

 

Vendor shall, as of the Closing Date, have performed
or complied in all material ‎respects with all its obligations, covenants and agreements under this Agreement required to ‎be
performed or complied with by it prior to or on the Closing Date including delivery of ‎the items which Vendor is required to deliver
pursuant to Section 8.2; and Purchaser shall ‎have received a certificate to that effect at or before the Closing Date from an
officer of ‎Vendor.‎

 

		5.3	Material Change

 

Subject to Section 9.3, no ‎substantial
unrepaired damage or physical alteration of the Assets ‎will have ‎occurred from the date hereof to the Closing Date which could
 ‎‎reasonably have a material adverse effect on the value or operation ‎of the ‎Purchased Assets.

 

		5.4	Competition Act Approval

 

The Competition Act Approval shall have been obtained
on terms satisfactory to Purchaser ‎acting reasonably and shall be in full force and effect.‎

 

		5.5	No Injunctions or Restraints

 

There is no extant injunction or restraining order
issued by a court of competent ‎jurisdiction preventing the completion of the Transaction.‎

 

Without derogating from any Party’s rights
or obligations under this Agreement, it is agreed ‎that Vendor shall act in good faith and use commercially reasonable efforts to
satisfy, or ‎cause to be satisfied, all of the Purchaser’s Conditions set forth in Article 5.‎

 

Article 6

VENDOR’S CONDITIONS

 

The obligation of Vendor to complete the Transaction
in accordance with this Agreement ‎shall be subject to the satisfaction of, or compliance with, as of the Closing Date, ‎each
of the following conditions (collectively, the "Vendor’s Conditions") each of which is ‎acknowledged to be
inserted for the exclusive benefit of Vendor and may be waived by ‎Vendor in whole or in part:‎

 

		6.1	Correctness and Accuracy of Representations and Warranties

 

The representations and warranties of Purchaser
contained in Section 3.3 shall be correct ‎and accurate in all material respects as at the Closing Date with the same effect
as if made at ‎and as of the Closing Date, and ‎Vendor shall have received a certificate to that effect as of the Closing Date
from an ‎officer of Purchaser.

 

		6.2	Performance of Obligations

 

Purchaser shall, as of the Closing Date, have
performed or complied with, in all ‎material respects, all its obligations, covenants and agreements under this Agreement ‎required
to be performed or complied with by it prior to or on the Closing Date including ‎paying all amounts of money due on Closing in the
form stipulated in this Agreement and ‎delivering the items which Purchaser is required to deliver pursuant to Section 8.3, and
 ‎Vendor shall have received a certificate to that effect as of the Closing Date from an ‎officer of Purchaser.‎

 

     

    - 26 

    

 

		6.3	Competition Act Approval

 

The Competition Act Approval shall have been obtained
on terms satisfactory to Vendor ‎acting reasonably and shall be in full force and effect.‎

 

		6.4	No Injunctions or Restraints

 

There is no extant injunction or restraining order
issued by a court of competent ‎jurisdiction preventing the completion of the Transaction.‎

 

Without derogating from any Party’s rights
or obligations under this Agreement, it is agreed ‎that Purchaser shall act in good faith and use commercially reasonable efforts
to satisfy, or ‎cause to be satisfied, all of the Vendor’s Conditions set forth in Article 6.‎

 

Article 7

covenants regarding Competition Act

 

		7.1	Competition Act Filing

 

		(a)	‎Purchaser and Vendor shall promptly and expeditiously use commercially reasonable ‎efforts to
obtain Competition Act Approval so as to permit the closing of the ‎Transaction to occur as promptly as reasonably practicable, and
in so doing shall ‎cooperate in good faith with each other.‎

 

		(b)	As soon as practicable following the date of this Agreement:

 

		(i)	promptly, and within two (2) Business Days after the date of this Agreement, or such other date the
Parties may agree, Purchaser shall submit to the Commissioner an application for an advance ruling certificate;

 

		(ii)	Purchaser and Vendor will file pre-merger notifications pursuant to Part IX of the Competition Act
within two (2) Business Days after the date of this Agreement, or such other date the Parties may agree;

 

		(iii)	Vendor shall promptly furnish to Purchaser such information, documents, and assistance as Purchaser may
reasonably request in order to prepare the submissions and application referred to in this subsection 7.1 (b) as well as, or any
other submissions to the Commissioner or the Competition Bureau;

 

		(iv)	Purchaser and Vendor shall use all commercially reasonable efforts to promptly furnish, or cause to be
furnished, any additional information or documents requested by and to respond to all inquires and requests received from the Commissioner
or the Competition Bureau; and

 

		(v)	consult and cooperate in connection with any investigation, review or other ‎inquiry in ‎each
case concerning the Transaction commenced by ‎the Competition ‎Bureau.

 

     

    - 27 

    

 

		(c)	Each Party shall:‎

 

		(i)	promptly inform the other Party of any material communication received by ‎that Party from the Competition
Bureau or any representative thereof regarding the Transaction;‎

 

		(ii)	not agree to participate in any communications, meetings or discussions with the Competition ‎Bureau
or any representative thereof in respect of any filings, ‎investigation or inquiry concerning the Purchase contemplated by ‎this
Agreement, whether oral or in person, unless it consults with the ‎other Party in advance and, to the extent permitted by the Competition
Bureau or ‎any representative thereof, gives the other Party the opportunity to ‎attend and participate thereat; and if that participation
is either ‎declined or not permitted, to furnish promptly thereafter a ‎memorandum setting forth the material terms of that meeting
or those ‎discussions;

 

		(iii)	furnish the other Party in advance with copies of all correspondence, filings ‎and communications
between them and their Affiliates and their ‎respective representatives, on the one hand, and the Competition Bureau or any ‎representative
thereof or members of its staff, on the other hand, ‎with respect to this Agreement and the Purchase and provide the ‎other Party
a reasonable opportunity to comment thereon and agrees ‎to consider those comments in good faith;‎ and

 

		(iv)	not extend any waiting period under the Competition Act without the prior written consent of the other
Party (such consent not to be unreasonably withheld, conditioned or delayed).

 

Notwithstanding the foregoing, where such
written submissions, communications or ‎meetings ‎include the communications of confidential competitively-sensitive ‎information,
such ‎information shall be shared on an external counsel only basis‎.

 

		(d)	The Vendor and Purchaser shall each be responsible for 50% of the applicable ‎filing fee.‎

 

		(e)	Purchaser shall advise Vendor promptly in advance of any understandings, ‎undertakings or agreements
which Purchaser proposes to make or enter into ‎with the Competition Bureau in connection with the Purchase.

 

		(f)	Purchaser shall provide Vendor with copies of the Competition Act Approval ‎immediately on receipt
of same.

 

		(g)	Purchaser and Vendor shall use their reasonable commercial efforts to cooperate with each other in connection
with the performance by the other of their obligations under this ‎Section 7.1 of the Agreement, cooperate as promptly as reasonably
practicable in all ‎respects with Purchaser in connection with the application for an advance ruling ‎certificate and maintain
ongoing communications as between the Parties‎.

 

Article 8

CLOSING

 

		8.1	Date, Time and Place of Closing

 

The Closing shall take place at the offices of
DLA Piper (Canada) LLP in Calgary, ‎Alberta on the Closing Date, or electronically by exchange of documents in electronic form, or
at such other location as the Parties shall agree.‎

 

     

    - 28 

    

 

		8.2	Vendor's Closing Deliveries

 

At or prior to the Closing, the Vendor shall take
all reasonably necessary steps and proceedings ‎to cause the Purchased Assets to be duly and validly transferred to the Purchaser
and, in ‎that regard, shall deliver to the Purchaser:‎

 

		(a)	all bills of sale, deeds, transfers, assignments and consents as may be reasonably necessary to ‎vest
good and marketable title to the Purchased Assets in the name of the ‎Purchaser, free and clear of all Encumbrances, except Permitted
 ‎Encumbrances and HSBC Lien;‎

 

		(b)	certified copies of:‎

 

		(i)	all resolutions of the board of directors of Vendor and the Guarantor ‎approving the entering into
and completion of the Transaction and ‎the guarantee contemplated in Section 1.6; and

 

		(ii)	a list of the officers and directors of Vendor and the Guarantor ‎authorized to sign agreements and
any certificates, transfers and ‎other writings in respect of the Transaction, together with their ‎specimen signatures;‎

 

		(c)	certificates of status dated as of the Closing Date with respect to Vendor ‎and the Guarantor;‎

 

		(d)	closing certificates confirming the matters described in Sections 5.1 and 5.2;‎

 

		(e)	a list of the locations of all of the drilling rigs forming part of the Equipment, or if any of the drilling
rigs forming part of the Equipment is still located in the locations set out in Schedule A, a statement to that effect;

 

		(f)	a copy of the Competition Act Approval;‎

 

		(g)	a registrable transfer of the Owned Premises, duly executed by the ‎Vendor;‎

 

		(h)	a duly signed release and undertaking to discharge from HSBC Bank of Canada, or a no interest letter,
either case, in a form mutually acceptable to the Parties, acting reasonably, regarding the HSBC Lien;‎

 

		(i)	an assignment of all Assumed Contracts, duly executed by the Vendor and ‎acknowledged by the applicable
Third Party where required; ‎

 

		(j)	the GST 44 Election duly executed by the Vendor;‎

 

		(k)	software service support agreements, duly executed by the Purchaser;

 

		(l)	the Software License, duly executed by Vendor or the applicable Affiliate thereof; ‎

 

		(m)	an assignment of each of the Assigned Licenses, duly executed by the Vendor;

 

		(n)	a written lease to replace the Canrig Lease, effective as of the Closing Date which will provide for the
Canrig Lease to continue for a period of six months after the Closing Date (subject to mutually agreed extensions) at market rates, duly
executed by the tenant thereunder (the “Written Lease”);

 

		(o)	the Secondment Agreement, duly executed by the Vendor; and

 

     

    - 29 

    

 

		(p)	such further documents, certificates, resolutions and assurances as may be ‎reasonably required by
the Purchaser's Counsel in order to complete the ‎Transactions contemplated herein.‎

 

		8.3	Purchaser's Closing Deliveries

 

At the Closing the Purchaser shall deliver or
cause to be delivered to the Vendor:‎

 

		(a)	payment of the Purchase Price as contemplated in Section 2.2;‎

 

		(b)	certified copies of:‎

 

		(i)	all resolutions of the board of directors of Purchaser approving the entering ‎into and completion
of the Transaction; and

 

		(ii)	a list of the officers and directors of the Purchaser authorized to sign agreements ‎and any certificates,
transfers and other writings in respect of the ‎Transaction, together with their specimen signatures;‎

 

		(c)	certificate of status dated as of the Closing Date with respect to Purchaser;‎

 

		(d)	a closing certificate confirming the matters described in Sections 6.1 and 6.2;‎

 

		(e)	a copy of the Competition Act Approval;‎

 

		(f)	the GST 44 Election duly executed by the Purchaser;‎

 

		(g)	the certificate of exemption referenced in Section 2.3(a), duly executed by the Purchaser, if applicable;

 

		(h)	software service support agreements, duly executed by the Purchaser;

 

		(i)	the Software License duly executed by Purchaser;

 

		(j)	an assignment of the Assumed Contracts, duly executed by the Purchaser;

 

		(k)	an assignment of each of the Assigned Licenses, duly executed by the Purchaser;

 

		(l)	the Written Lease, duly executed by the Purchaser;

 

		(m)	the Secondment Agreement, duly executed by the Purchaser; and

 

		(n)	such further documents, certificates, resolutions and assurances as may be reasonably required by Vendor's
 ‎Counsel in order to complete the Transactions contemplated herein.‎

 

     

    - 30 

    

 

		8.4	Assumed Contracts

 

To the extent that the Vendor's rights under any
Assumed Contract included in the ‎Purchased Assets may not be assigned without the ‎consent of another person which has ‎not
been obtained by the Vendor prior to the Closing Date, ‎neither this ‎Agreement nor any of the instruments of transfer delivered
to the Purchaser ‎and ‎which relate to the assignment of that Asset shall constitute an ‎agreement to assign the same if ‎an
attempted assignment would constitute a ‎breach thereof or be unlawful. If any such consent ‎has not been obtained or ‎if
any attempted assignment would be ineffective or would impair the ‎‎Purchaser's rights under the instrument in question so that
the Purchaser ‎would not in effect ‎acquire the benefit of all such rights, then the Vendor, to ‎the maximum extent permitted
by Applicable Law ‎and the instrument and at the sole ‎expense of the Purchaser, shall act as the Purchaser's agent ‎in order
to obtain ‎for the Purchaser the benefits thereunder and shall cooperate, to the ‎maximum ‎extent permitted by Applicable
Law and the instrument with the Purchaser in ‎any other reasonable ‎arrangement designed to provide such benefits to the ‎Purchaser
(including, without limitation, by ‎entering into an equivalent ‎arrangement). The Purchaser will indemnify the Vendor against
all ‎‎liabilities, costs and expenses incurred by the Vendor in acting as the ‎Purchaser's agent. ‎Notwithstanding the
Purchaser's decision to consummate ‎the Closing in the absence of any such ‎consent, after the Closing Date, the ‎Vendor shall
use its reasonable commercial efforts to obtain ‎all such ‎consents and, if and when any is obtained, shall promptly assign the
 ‎instrument in ‎question to the Purchaser.

 

		8.5	Storage Yard Leases

 

The Parties acknowledge that there are a number
of informal storage yard leases (“Informal Storage Yard Leases”), the locations of which are set forth in Schedule
L attached hereto. The Vendor currently stores inactive drilling rigs at the locations subject to the Informal Storage Yard Leases. On
or before Closing, the Vendor shall terminate all of the Informal Storage Yard Leases and satisfy in full any remaining rent payable thereunder.
The Purchaser acknowledges that the Equipment will remain at the existing locations as at the Closing Date and on or after Closing, the
Purchaser is responsible for any subsequent storage yard lease arrangements.

 

Article 9

 ‎PRECLOSING matters

 

		9.1	Covenants

 

From the date of this Agreement until the Closing
Date, Vendor shall:‎

 

		(a)	conduct the Business in the ordinary course consistent with past practice and as otherwise specifically
 ‎contemplated or ‎permitted by this Agreement;‎

 

		(b)	maintain the Purchased Assets in the ordinary course consistent with past practice and good oilfield practice;‎

 

		(c)	use commercially reasonable efforts to maintain good relations with Persons having ‎‎business
relationships with the Vendor; and

 

		(d)	use commercially reasonable efforts to comply in all material respects with (i) all Applicable Laws
and (ii) all Material Contracts.‎

 

		9.2	Inspection

 

Until the Closing Date, upon Purchaser's reasonable
request and upon seventy two (72) ‎hours prior written notice, Vendor shall permit Purchaser, its agents and ‎advisors, reasonable
access to the Purchased Assets during normal business ‎hours (but without disturbance to the Vendor’s on-site operations) for
the purpose of Purchaser's familiarization with the operation of ‎the Purchased Assets, while accompanied by the Person, if any, ‎designated
by Vendor to accompany Purchaser, its agents and advisors ‎during such access, all at the sole cost, risk and expense of Purchaser.
 ‎Purchaser agrees to comply fully with all instructions issued by Vendor or ‎its agents regarding Purchaser's actions while upon,
entering or leaving the ‎site of the Purchased Assets. ‎

 

     

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		9.3	Casualty

 

If, after the date of this Agreement but prior
to Closing Date, any part of the ‎Purchased Assets is ‎destroyed by fire or other casualty, or is damaged in any ‎way, or
is expropriated or taken in condemnation or under right of ‎eminent ‎domain, the Parties shall nevertheless be required to close.
If the amount ‎of the loss ‎exceeds $500,000, Purchaser and Vendor shall, acting reasonably, attempt to determine a mutually acceptable
solution. If the Purchaser and the Vendor, acting reasonably, are not able to agree on a mutually acceptable solution within five (5) Business
Days from the date of casualty, or such other date the Parties may agree, then the Purchaser must elect by written notice to ‎Vendor
prior to Closing to:‎

 

		(a)	cause the Purchased Assets affected by any casualty to be repaired or restored, at ‎Vendor’s
sole cost, as ‎promptly as reasonably practicable (which ‎work may extend after the Closing Date); ‎or

 

		(b)	to complete the transaction provided for in this Agreement without reduction of the Purchase Price in
which event all proceeds of insurance or compensation for fire, appropriation, expropriation or seizure shall be payable to the Purchaser
and all right and claim of the Vendor to any such amounts not paid by the Closing Time shall be assigned to the Purchaser,

 

except to the ‎extent the Parties
otherwise agree in writing.‎

 

Article 10

INDEMNITY

 

		10.1	Indemnity by the Vendor

 

The Vendor shall be liable for and shall indemnify
and ‎save harmless the Purchaser, together with all officers, directors and agents of the Purchaser ‎‎(the "Purchaser
Indemnitees") from and against all liabilities, losses, costs, damages, expenses ‎‎(including, without limitation, the
full amount of all legal fees, costs, charges and expenses ‎on a solicitor and his own client full indemnity basis), disbursements,
fines, penalties, all ‎manner of actions, causes of actions, claims, demands, suits and proceedings, all of ‎whatever kind or
nature, which all or any of the Purchaser Indemnitees, directly or indirectly may ‎sustain, pay or incur or which may be brought or
made against all or any of the ‎Indemnitees, (and whether or not incurred in connection with any actions, or other ‎proceedings,
or claims or demands made by a Third Party against Purchaser Indemnitees arising directly or indirectly from all or any of the ‎following:‎

 

		(a)	any breach by the Vendor of any of the representations, warranties, covenants or ‎agreements made
in this Agreement or in any other agreements made in ‎connection with this Transaction;‎

 

		(b)	any Third Party Claim arising, occurring or existing, or alleged to have arisen, ‎occurred or existed
in connection with the Purchased ‎Assets at any time prior to the Closing Date, excluding any Environmental Claim arising, occurring
or existing, or alleged to have arisen, occurred or existed at any time prior to the Closing Date; and

 

		(c)	any Excluded Liability. ‎

 

     

    - 32 

    

 

The provisions of this Section 10.1 shall
not affect or derogate from any of the warranties ‎and representations given by the Vendor hereunder. The time limitation set forth
in Section 10.7 shall apply to Section 10.1(a), but with respect to any and all Third Party Claims giving rise ‎to an indemnity
under this Section 10.1, the time period for seeking such indemnity shall be ‎deemed to begin on the date when the indemnified
party receives actual notice of such Third ‎Party Claim, and shall expire on the second anniversary of such date.‎

 

		10.2	General Limitation of Liability

 

Notwithstanding anything herein to the contrary,
the Vendor's obligations to the Purchaser Indemnitees ‎pursuant to Section 10.1(a) are limited as follows:‎

 

		(a)	The Vendor shall have no liability to Purchaser Indemnitees pursuant to
 ‎Section 10.1(a) with respect to a particular breach or nonfulfillment of a ‎representation or warranty, if the liability
resulting from such breach or ‎nonfulfillment does not exceed a per item threshold of $100,000; ‎

 

		(b)	The Vendor shall only be liable to Purchaser Indemnitees with respect to ‎liabilities described in
Section 10.1(a) to the extent that the sum of the ‎aggregate of such liabilities (each exceeding the per item threshold
described ‎in clause (a) above) exceeds an amount equal to $750,000;

 

		(c)	The Vendor shall have no liability to Purchaser Indemnitees with respect
to ‎liabilities described in Section 10.1(a), to the extent that the sum of such ‎liabilities exceeds an amount equal to
50% of the Purchase Price;

 

		(d)	Vendor shall not be liable under this Article 10 for
any Claim based upon or arising out of any inaccuracy in or breach of any of the representations or warranties of Vendor set out in this
Agreement if Purchaser had knowledge of such inaccuracy or breach before the Closing; and

 

		(e)	The Vendor’s liability to the Purchaser Indemnitees shall be limited to the amount of any liability
or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment received
or reasonably expected to be received by the Purchaser Indemnitees in respect of any such Claim. The Purchaser Indemnitees shall use its
commercially reasonable efforts to recover under insurance policies or indemnity, contribution or other similar agreements for any losses
before seeking indemnification under this Agreement.

 

For the purpose of this Section 10.2, any
materiality qualifications in this Agreement shall be disregarded in determining the amount of damages arising from a breach, nonfulfillment
or other matter giving rise to liability hereunder.

 

The foregoing limitations shall not apply to (a) fraud
or intentional misrepresentations on ‎the part of Vendor, or (b) Claims arising under Section 3.1(b) [Authorization],
3.1(d) [No Other ‎Agreements to Purchase], and 3.1(f) [Title to Purchased Assets], in which case the amount of liability
of the Vendor shall not exceed the Purchase Price.

 

     

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		10.3	Indemnity by Purchaser

 

The Purchaser shall be liable for and shall ‎indemnify
and save harmless the Vendor together with all officers, directors, shareholders ‎and agents of the Vendor (“Vendor Indemnitees”)
from and against all liabilities, losses, costs, damages, ‎expenses (including, without limitation, the full amount of all legal
fees, costs, charges and ‎expenses on a solicitor and his own client full indemnity basis), disbursements, fines, ‎penalties,
all manner of actions, causes of actions, claims, demands, suits and proceedings, ‎all of whatever kind or nature, which the Vendor
Indemnitees directly or indirectly may sustain, pay or incur or which may be brought or made ‎against the Vendor Indemnitees (and
whether or not ‎incurred in connection with any actions, or other proceedings, or claims or demands made ‎by a Third Party against
Vendor Indemnitees arising ‎directly or indirectly from all or any of the following:‎

 

		(a)	any breach by the Purchaser of any of its representations, warranties, covenants or ‎agreements made
in this Agreement or in any other agreements made in ‎connection with this transaction;

 

		(b)	any matter, condition or event regarding or relating to all or ‎any part of the Business or the Purchased
Assets arising, occurring or ‎existing on or after the Closing Date;

 

		(c)	any Third Party Claim arising, occurring or existing, or alleged to have arisen, ‎occurred or existed
in connection with the Business or the Purchased ‎Assets at any time on or after the Closing Date;

 

		(d)	the matters referenced in Section 2.3(b); and

 

		(e)	any Assumed Liabilities.

 

The time limitation set forth in Section 10.7
shall apply to Section 10.3(a), but with respect to ‎any and all Third Party Claims giving rise to an indemnity under this Section 10.3,
the time ‎period for seeking such indemnity shall be deemed to begin on the date when the ‎indemnified party receives actual notice
of such Third Party Claim, and shall expire on the ‎second anniversary of such date.‎

 

		10.4	Direct Claims

 

In the case of a Claim by an indemnified party
on account of a Claim which does not result from a Third Party Claim (“Direct Claim”), the indemnified party shall
give the indemnifying party prompt written notice thereof. The failure or delay to give such prompt written notice shall relieve the indemnifying
party of its indemnification obligations to the extent that the indemnifying party is adversely affected or has diminished rights or forfeits
rights or defences by reason of such failure or delay. Such notice by the indemnified party shall (i) describe the direct claim in
reasonable detail, (ii) include copies of all material written evidence thereof, and (iii) indicate the estimated amount, if
reasonably practicable, of the loss that has been, or may be, sustained by the indemnified party. The indemnifying party shall have sixty
(60) days from ‎receipt of notice of the claim within which to make such investigation of the claim as the ‎indemnifying party
considers necessary or desirable. For the purpose of such investigation, ‎the indemnified party shall make available to the indemnifying
party the information relied ‎upon by the indemnified party to substantiate the claim, together with all such other ‎information
as the indemnifying party may reasonably request. If both parties agree at or ‎before the expiration of such sixty (60) day period
(or any mutually agreed upon extension ‎thereof) to the validity and amount of such claim, the indemnifying party shall immediately
 ‎pay to the indemnified party the full agreed upon amount of the claim, failing which the ‎matter shall be determined by a court
of competent jurisdiction.‎

 

     

    - 34 

    

 

		10.5	Third Party Claims

 

If the indemnified party receives notice of the
assertion or commencement of any Claim made or brought by any Third Party (“Third Party Claim”) against such indemnified
party with respect to which the indemnifying party is obligated to provide indemnification under this Agreement, the indemnified party
shall give the indemnifying party prompt written notice thereof. The failure or delay to give such prompt written notice shall relieve
the indemnifying party of its indemnification obligations to the extent that the indemnifying party is adversely affected or has diminished
rights or forfeits rights or defences by reason of such failure or delay. Such notice by the indemnified party shall (i) describe
the Third Party Claim in reasonable detail, (ii) include copies of all material written evidence thereof, and (iii) indicate
the estimated amount, if reasonably practicable, of the loss that has been, or may be, sustained by the indemnified party. The indemnifying
party shall have the right to participate in or, by giving written notice to the indemnified party, to assume the defence of any Third
Party Claim at the indemnifying party's expense and by the indemnifying party's own counsel, and the indemnified party shall cooperate
in good faith in such defence. If the indemnifying party assumes the defence of any Third Party Claim, subject to Section 10.6, it
shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counter-claims pertaining to
any such Third Party Claim in the name and on behalf of the indemnified party. The indemnified party shall have the right, at its own
cost and expense, to participate in the defence of any Third Party Claim with counsel selected by it subject to the indemnifying party's
right to control the defence thereof. For greater certainty, the indemnifying party shall not be responsible for the costs of more than
one (1) law firm in connection with any Third Party Claim. If the indemnifying party elects not to compromise or defend such Third
Party Claim or fails to promptly notify the indemnified party in writing of its election to defend as provided in this Agreement, the
indemnified party may, subject to Section 10.6, pay, compromise, defend such Third Party Claim and seek indemnification for any,
and all, losses based upon, arising from or relating to such Third Party Claim. Vendor and Purchaser shall cooperate with each other in
all reasonable respects in connection with the defence of any Third Party Claim, including making available (subject to the provisions
of Section 12.3) records relating to such Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket
expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of
the defence of such Third Party Claim.

 

		10.6	Settlement of Third Party Claims

 

Notwithstanding any other provision of this Agreement,
the indemnifying party shall not enter into settlement of any Third Party Claim without the prior written consent of the indemnified party
(which consent shall not be unreasonably withheld or delayed), except as provided in this 10.6. If a firm offer is made to settle a Third
Party Claim without leading to liability or the creation of a financial or other obligation on the part of the indemnified party and provides,
in customary form, for the unconditional release of each indemnified party from all liabilities and obligations in connection with such
Third Party Claim and the indemnifying party desires to accept and agree to such offer, the indemnifying party shall give written notice
to that effect to the indemnified party. If the indemnified party fails to consent to such firm offer within ten (10) days after
its receipt of such notice, the indemnified party may continue to contest or defend such Third Party Claim and, in such event, the maximum
liability of the indemnifying party as to such Third Party Claim shall not exceed the amount of such settlement offer. If the indemnified
party fails to (i) consent to such firm offer and (ii) assume the defence of such Third Party Claim, the indemnifying party
may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the indemnified party
has assumed the defence under Section 10.5, it shall not agree to any settlement without the written consent of the indemnifying
party (which consent shall not be unreasonably withheld or delayed).

 

		10.7	Survival Period

 

Notwithstanding any other provision of this Agreement,
the ‎indemnification obligations of the Vendor set out in Section 10.1, and the ‎indemnification obligations of the Purchaser
set out in Section 10.3, shall survive ‎for a period of two years following the Closing Date, except ‎for claims based on
title ‎to the Purchased Assets, intentional misrepresentation or fraud, which may be brought at any time, but subject to applicable
limitation periods imposed by Applicable Law and except for Claims based on Taxes which shall survive for a period of ninety (90) days
after expiry of the normal reassessment period described in Applicable Law in relation to such Taxes and any further time during which
a reassessment may be made on account of neglect, carelessness or wilful default and will not merge thereon or therein.

 

     

    - 35 

    

 

Article 11

TERMINATION

 

		11.1	Termination

 

Completion of the Transaction may be terminated
 ‎at any time before Closing:‎

 

		(a)	by mutual written consent of Vendor and Purchaser;‎

 

		(b)	by Purchaser, if any of Purchaser’s Conditions shall have not been fulfilled by the ‎time required
or shall have become incapable of fulfillment other than as a ‎result of Purchaser’s breach of this Agreement, and shall not
have been ‎waived by Purchaser;‎

 

		(c)	by Vendor, if any of Vendor’s Conditions shall have not been fulfilled by the time ‎required
or shall have become incapable of fulfillment other than as a result ‎of Vendor’s breach of this Agreement, and shall not have
been waived by ‎Vendor;‎

 

		(d)	by either Vendor or Purchaser, if the Closing does not occur on or before the ‎Outside Date; provided
that the right to terminate this Agreement under this ‎Section 11.1(d) shall not be available to a Party whose failure to
fulfill any ‎obligation under this Agreement has caused or resulted in the failure of the ‎Closing to occur on or before the Outside
Date.‎

 

		11.2	Notice of Termination

 

If Vendor or Purchaser elects to terminate completion
of the Transaction pursuant to this Article 11, written notice of that termination shall forthwith ‎be given to the other Party
and the Guarantor and the transactions contemplated by this ‎Agreement (including the Parties’ obligation to consummate the
Transaction) shall be ‎terminated without further action by either Party. If the Transaction is terminated as provided herein:‎

 

		(a)	Purchaser shall return to Vendor all documents and copies and other materials ‎received from or on
behalf of Vendor relating to the transactions ‎contemplated hereby, whether so obtained before or after the execution of ‎this
Agreement; and

 

		(b)	all confidential information received by Purchaser with respect to the Business and ‎the Purchased
Assets shall be treated in accordance with the terms and ‎conditions of the Confidentiality Agreement, which shall remain in full
 ‎force and effect notwithstanding the termination of the completion of the ‎transactions contemplated by this Agreement.‎

 

		11.3	Effect of Termination

 

		(a)	Each Party’s right of termination under this Article 11 is in addition to any other ‎rights
it may have under or in respect of this Agreement, as may be ‎applicable, and the exercise of a right of termination will not be an
election ‎of remedies.‎

 

		(b)	Nothing in this Article 11 shall limit or affect any other rights or causes of action ‎either
Purchaser or Vendor may have with respect to the representations, ‎warranties, covenants and indemnities in its favour contained in
this ‎Agreement.

 

		(c)	Nothing in this Article 11 shall be deemed to release either Party from ‎any liability arising
out of any breach of the terms and provisions of this ‎Agreement that occurs prior to termination or to impair the right of either
 ‎Party to compel specific performance by the other Party of its obligations ‎under this Agreement.‎

 

     

    - 36 

    

 

Article 12

MISCELLANEOUS

 

		12.1	Notices

 

The Parties hereto agree each with the
other that any notice or other communication ‎required or permitted to be given hereunder shall be in writing and shall be given by
 ‎personal service, sent by registered mail, courier or transmitted by facsimile to the addresses set forth below:‎

 

	If to the Purchaser:‎	
    Ensign Drilling Inc.

    400, 5th Avenue SW, Suite 1000

    Calgary, Alberta T2P 0L6

     

    Attention: Suzanne Davies, Vice President Legal, Corporate Secretary

    Email: Suzanne.Davies@ensignenergy.com

    Fax: (403) 262-8215

	 	 
	With a copy (which copy shall not constitute notice) to:‎	
    DLA Piper (Canada) LLP

    250 2nd St SW, Suite 1000

    Calgary, AB T2P 0C1

     

    Attention: Trevor Wong-Chor

    Email: trevor.wong-chor@dlapiper.com

    Fax: +1 403 213 4473

	 	 
	If to the Vendor:‎	
    Nabors Drilling Canada Limited

    c/o Nabors Corporate Services Inc.

    515 W. Greens Rd., Suite 1200

    Houston, Texas 77067-4525

     

    Attention: Michael Rasmuson, Senior Vice President, General Counsel &
    Chief Compliance Officer

    Email: Michael.rasmuson@nabors.com

    Fax: 281-775-8431

	 	 
	With a copy (which copy shall not constitute notice) to each of:	
    Haynes and Boone, LLP

    1221 McKinney St #4000

    Houston, TX 77010

     

    Attention: Arthur Cohen

    Email: arthur.cohen@haynesboone.com

    Fax: +1 202 654 4259

     

    And to

    Miller Thomson LLP

    3000, 700-9th Avenue SW

    Calgary, Alberta T2P 3V4

     

    Attention: Michael Morcom

    Email: mmorcom@millerthomson.com

    Fax: 403-262-0007

 

Any notice delivered personally, sent by registered
mail, courier, or by facsimile shall be deemed to be received on the day ‎of delivery if delivery is during business hours and, if
not, on the next Business Day. Notice may also be sent by e-mail as a copy only and which copy shall not constitute notice. Any party
may designate a new address by giving written notice to the other ‎parties hereto as herein provided.

 

		12.2	Further Assurances

 

The Parties hereto each covenant and agree that
they will each ‎take such actions, execute and make all such documents, instruments and assurances and do all things ‎necessary
or appropriate to carry out the intent and accomplish the purposes of this ‎Agreement or otherwise consummate the Transaction ‎according
to its terms.

 

     

    - 37 

    

 

		12.3	Confidentiality

 

Vendor and Purchaser and Guarantor agree to keep
the terms of this Agreement ‎‎confidential, except to the extent required by Applicable Laws or for financial ‎reporting ‎purposes
or as otherwise provided herein and except that the Parties and ‎Guarantor may ‎disclose those terms to their respective representatives
as necessary ‎in connection with the ‎ordinary conduct of their respective businesses (so long as ‎those Persons agree to
keep the ‎terms of this Agreement confidential).‎

 

		12.4	Press Releases

 

No Party or Guarantor will make any press release
respecting the existence ‎of this ‎Agreement, the contents hereof or the transaction contemplated hereby ‎without the consent
 ‎of the other Party except to the extent the other Party ‎unreasonably withholds or delays ‎consent; provided however, the
foregoing shall ‎not restrict disclosures by any Party or ‎Guarantor or its Affiliates:‎

 

		(a)	to the extent that those disclosures are required by Applicable Laws;‎

 

		(b)	to Governmental Authorities and Third Parties holding rights of consent or other ‎rights ‎that
may be applicable to the Transaction contemplated by this ‎Agreement, as ‎reasonably necessary to provide notice, seek waivers
 ‎amendments or ‎terminations of those rights, or seek such consents; or

 

		(c)	to its Affiliates.‎

 

A Party or Guarantor which proposes to make such
a ‎press release shall, to the ‎extent reasonably possible, provide the other Party with a draft of ‎that release at least
one ‎Business Day prior to its release to enable the other Party to review ‎that draft and advise of ‎any comments it may
have with respect thereto. The Party or ‎Guarantor proposing to make ‎the press release will not unreasonably refuse to incorporate
 ‎the requested changes in the ‎public announcement except to the extent its counsel advises ‎that doing so will result in
non-‎compliance with Applicable Laws.‎

 

		12.5	Filing this Agreement

 

		(a)	Neither Party nor the Guarantor shall file this Agreement on ‎SEDAR or EDGAR or ‎otherwise make
this Agreement publicly available without ‎the other Party’s ‎prior consent, which consent may not be unreasonably withheld,
but which ‎‎consent may be subject to Vendor’s requiring that competitively sensitive ‎information ‎is redacted
from the filed version of this Agreement. ‎

 

		(b)	Notwithstanding subsection (b), ‎each Party and the Guarantor consents to the public ‎filing on
SEDAR or EDGAR of a redacted form of this Agreement as may ‎be ‎required by applicable securities regulatory authorities, provided
that ‎prior notice of the intention ‎to so file has been provided to the other Party ‎together with an opportunity for the
other Party to review and, acting ‎‎reasonably, provide comments on any such redacted form. ‎

 

		12.6	Unenforceable Terms

 

If any term, covenant or condition of this Agreement
or the application thereof to ‎any Party or circumstance shall be invalid or unenforceable to any extent the remainder of ‎this
Agreement or application of such term, covenant or condition to a party or ‎circumstance other than those to which it is held invalid
or unenforceable shall not be ‎affected thereby and each remaining term, covenant or condition of this Agreement shall be ‎valid
and shall be enforceable to the fullest extent permitted by law.‎

 

     

    - 38 

    

 

		12.7	Amendments

 

This Agreement may only be amended by a written
instrument executed by the Parties hereto.‎

 

		12.8	Default

 

The Parties recognize and acknowledge that a breach
by any Party of any material ‎obligations contained in this Agreement, including a breach of the obligation by such Party ‎to
complete the Transaction, may cause the other Party to ‎sustain irreparable injury for which such other Party would not have an adequate
remedy ‎at law for monetary damages. Accordingly, in the event of any such breach, any aggrieved ‎Party shall be entitled, at
its option, to the remedy of specific performance of such ‎obligations and interlocutory, preliminary and permanent injunctive and
other equitable ‎relief to prevent such breaches of this Agreement, any requirement for the securing or ‎posting of any bond in
connection with the obtaining of any such injunctive or other ‎equitable relief hereby being expressly waived.‎

 

		12.9	Assignment

 

Neither of the Parties to this Agreement may assign
in whole or in part its rights or ‎obligations under this Agreement without the prior written consent of the other Party.

 

		12.10	Entire Agreement

 

This Agreement and the agreements and other documents
delivered by the Parties at ‎Closing together constitute the entire agreement between the Parties hereto relating to the ‎subject
matter hereof and thereof, and supersede all prior and contemporaneous ‎agreements, understandings, negotiations and discussions,
whether oral or written, of the ‎Parties, unless specifically excluded herein or therein and there are no general or specific ‎warranties,
representations or other agreements by or among the Parties in connection with ‎the entering into of this Agreement or the subject
matter hereof except as specifically set ‎forth herein.‎

 

		12.11	No Waiver

 

No consent or waiver, express or implied, by any
Party to or of any breach or ‎default by any other party in the performance by such other Party of its obligations ‎hereunder
shall be deemed or construed to be a consent or waiver to or of any other breach ‎or default in the performance of obligations hereunder
by such other Party hereunder. ‎Failure on the part of any Party to complain of any act or failure to act of any other Party or ‎to
declare any other party in default, irrespective of how long such failure continues shall ‎not constitute a waiver by such first Party
of its rights hereunder.‎

 

		12.12	Construction

 

This Agreement has been negotiated by each Party
with the benefit of legal ‎‎representation, and any rule of construction to the effect that any ambiguities are to be ‎‎resolved
against the drafting Party shall not apply to the construction or interpretation of ‎this ‎Agreement.‎

 

		12.13	Governing Law and Submission to Jurisdiction

 

The interpretation, validity, performance and
enforcement of this Agreement shall ‎be governed by the Laws of the Province of Alberta and the federal laws of Canada ‎applicable
therein, without giving effect to the principles of conflicts of law thereof. For the ‎purpose of all legal proceedings this Agreement
shall be deemed to have been performed in ‎the Province of Alberta and the courts of the Province of Alberta shall have exclusive
 ‎jurisdiction to entertain any action arising under this Agreement.

 

     

    - 39 

    

 

		12.14	Survival

 

Where specifically stated herein, certain of the
provisions of this Agreement shall survive the Closing including, without ‎limitation, delivery and acceptance of the documents and
the taking of possession of the ‎Purchased Assets by the Purchaser, and further, shall not be merged therein or therewith.‎

 

		12.15	Counterpart and Facsimile Execution of Documents

 

This Agreement may be executed in any number of
counterparts, by facsimile or ‎other electronic means, each of which, when executed, shall be deemed to be an original ‎and all
of which together shall be deemed to be one and the same instrument.‎

 

		12.16	Enurement

 

This Agreement shall enure to the benefit of and
be binding upon the Parties and ‎their respective successors and permitted assigns.‎

 

		12.17	Costs

 

It is understood and agreed that each Party shall
be responsible for and pay all ‎expenses incurred by it or on its behalf, including, without limiting the generality of the ‎foregoing,
fees and expenses of agents, counsel, solicitors, consultants and accountants ‎employed by each Party in connection with the authorization,
preparation, negotiation, ‎execution and performance of this Agreement, and in connection with all matters ‎concerning the Transaction.
In the event that any legal ‎action is commenced to enforce or interpret this Agreement, or any part thereof the non-‎prevailing
party shall pay all reasonable solicitors fees (on a solicitor and his own client full ‎indemnity basis) and all reasonable costs
and expenses of the prevailing party incurred as a ‎result thereof.‎

 

		12.18	No Third Party Beneficiaries

 

No third party benefits in favor of any Person,
including the Employees, will be ‎created, implied or inferred from the provisions of this Agreement.‎

 

		12.19	Removal of Name

 

Following the Closing, Purchaser will not be entitled
to use the name "Nabors" or any ‎variation or derivation thereof, including any logo, trademark or design containing that
 ‎name (the "Prohibited Name and Marks"). Accordingly, promptly following the Closing, ‎Purchaser shall within
sixty (60) days following Closing remove the Prohibited Name and Marks ‎from the Purchased Assets and cause the destruction, disposal
or replacement of stationery, ‎business cards and similar assets containing that Prohibited Name and Marks, and shall avoid the use
of the Prohibited ‎Names and Marks.‎ Notwithstanding anything else contained herein, in respect of the drilling rigs forming part
of the Equipment that are in operation as at the Closing Date, the Purchaser shall remove all Prohibited Name and Marks within thirty
(30) days of the Closing Date.

 

		12.20	Privacy

 

		(a)	The Vendor and Purchaser agree:

 

		(i)	to restrict the collection, use and disclosure of Personal Information between them to purposes which
relate to the Transaction;

 

		(ii)	that the Personal Information is necessary for the Parties to determine whether to proceed with the Transaction,
and, if the Parties agree to proceed with the Transaction that the Personal Information is necessary for them to carry out and complete
the Transaction.

 

     

    - 40 

    

 

		(b)	After Closing, the Vendor shall use and disclose the Personal Information for those purposes for which
it was initially collected; and, the Parties agree that such transferred Personal Information relates solely to the carrying on of the
business or activity or the carrying out of the objects for which the business transaction took place.

 

		(c)	If the business transaction does not proceed or is not completed, the Purchaser must, if the Personal
Information provided to the Purchaser by the Vendor is still under the Purchaser’s custody or control, at the sole discretion of
the Vendor, either destroy the information or return it to the Vendor.

 

		(d)	The Vendor and Purchaser shall at all time act in accordance with applicable Privacy Laws.

 

[Signature page follows.]

 

     

    - 41 

    

 

IN WITNESS WHEREOF
the parties have executed this Agreement all on the day ‎and year first above written.‎

 	 	NABORS DRILLING CANADA LIMITED‎
	 	 
	 	 
	 	Per:	/s/
    Michael Niedermaier
	 	 	Name: Michael Niedermaier

                                Title: Director

	 	 	 
	 	ENSIGN DRILLING INC.‎
	 	 
	 	 
	 	Per:	/s/
    Robert H. Geddes
	 	 	Name: Robert H. Geddes

                                Title: President

	 	 	 
	 	 	 
	 	Per:	/s/
    Michael Gray
	 	 	Name: Michael Gray

                                Title: Chief Financial Officer

	 	 	 
	 	NABORS GLOBAL HOLDINGS II LIMITED‎
	 	 
	 	 
	 	Per:	/s/
    Mark D. Andrews
	 	 	Name: Mark D. Andrews

                                Title: Director, PresidentDocument

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

Exhibit 4.1

COLLABORATION AGREEMENT

This COLLABORATION AGREEMENT (the “Agreement”) is entered into on December 14, 2009 (the “Effective Date”) by and between Seattle Genetics, Inc., a Delaware corporation, with its principal place of business at 21823 30th Drive SE, Bothell, WA 98021 (“SGI”), and Millennium Pharmaceuticals, Inc., with its principal place of business at 40 Landsdowne Street, Cambridge, MA 02139 (“MPI”). SGI and MPI are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS

WHEREAS, SGI is developing a proprietary antibody-drug conjugate product, brentuximab- vedotin, generally referred to as “SGN-35”, for the treatment of CD30-positive malignancies, including Hodgkin lymphoma and anaplastic large cell lymphoma, as well as potentially autoimmune diseases;

WHEREAS, MPI possesses substantial resources and expertise in the development, marketing and commercialization of pharmaceutical products; and

WHEREAS, MPI desires to collaborate with SGI on the development of SGN-35, and to obtain exclusive rights to market and commercialize SGN-35 in the Licensed Territory (as defined below), and SGI is willing to so collaborate and to grant such rights on the terms and conditions set forth below.

NOW THEREFORE, in consideration of the foregoing premises and the mutual promises, covenants and conditions contained in this Agreement, the Parties agree as follows:

Article 1

DEFINITIONS

As used in this Agreement, the following initially capitalized terms, whether used in the singular or plural form, shall have the meanings set forth in this Article 1.

1.1    “13D Group” has the meaning set forth in Section 15.6(a).

1.2    “Accounting Standard” has the meaning set forth in the definition of “Cost of Goods Sold” in this Article 1.

1.3    “Acquired Party” has the meaning set forth in Section 15.7.

1.4    “Acquisition” has the meaning set forth in Section 15.6(f).

1.5    “Advertising, Marketing, Medical Affairs and Promotion Expenses” has the meaning set forth in Section 6.3(a).
1

1.6    “Affiliate” means, with respect to a particular Person, a Person that controls, is controlled by or is under common control with such first Person. For the purposes of this definition, the word “control” (including, with correlative meaning, the terms “controlled by” or “under the common control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of [***] or more of the voting stock of such entity, or by contract or otherwise. Notwithstanding the foregoing, [***] shall be deemed an Affiliate of [***].

1.7    “Alliance Manager” has the meaning set forth in Section 3.19.

1.8    “Antibody” means an antibody, or fragment thereof, or a molecule that is derived from nucleotide sequences encoding, or amino acid sequences of, any such antibody or fragment.

1.9    “Audited Party” has the meaning set forth in Section 8.11.

1.10    “Auditing Party” has the meaning set forth in Section 8.11.

1.11    “Best Knowledge” means, as applied to SGI, that one or more of SGI’s Chief Executive Officer, Chief Medical Officer, Chief Financial Officer, Chief Business Officer, Executive Vice President, Development, Executive Vice President, Technical Operations, Senior Vice President, Commercial, general counsel, most senior internal intellectual property counsel and Senior Vice President, Regulatory is actually aware (or unaware, as the context may require) of a particular fact or other matter, after reasonable inquiry, but without any duty to conduct any patent searches or obtain any patent opinions that it has not already conducted or obtained in the course of its commercially reasonable intellectual property diligence efforts as of the Effective Date (including any country- specific patent searches or patent opinions in the Licensed Territory).

1.12    “Business Day” means a day other than Saturday or Sunday on which the banks in Seattle, Washington and Boston, Massachusetts are open for business.

1.13    “Buy-In Right” has the meaning set forth in Section 4.7(b).

1.14    “Calendar Quarter” means each successive period of three months commencing January 1, April 1, July 1, and October 1.

1.15    “Calendar Year” means, for the first Calendar Year, the period commencing on the Effective Date and ending on December 31 of the year during which the Effective Date occurs, and each successive period of twelve (12) months commencing on January 1.

1.16    “CD30 Product Activities” has the meaning set forth in Section 9.5(b)(ii).

1.17    “CDA” has the meaning set forth in the definition of “Confidential Information” in this Article 1.

2
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.18    “Change of Control” means, with respect to a Party, (a) the closing of a merger, tender offer, share exchange, reorganization, consolidation or other similar transaction involving such Party or any of its Affiliates that control (as defined in Section 1.6) such Party in which either its shareholders or the shareholders of such Affiliate immediately prior to such transaction would hold [***] or less of the securities or other ownership or voting interests representing the equity of the surviving or resulting entity immediately after such transaction, or (b) the closing of any sale of all or substantially all of the assets of such Party, other than a sale of all or substantially all of the assets of such Party to an entity of which more than [***] of the securities or other ownership or voting interests representing the equity of such entity are owned after such sale by shareholders of such Party in substantially the same proportions as their ownership of such Party immediately prior to such sale.

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

1.20    “CMC” means Chemistry, Manufacturing and Controls.

1.21    “[***]” means (a) [***], or (b) [***].

1.22    “Commercialization” means all activities, whether undertaken before and/or after obtaining Regulatory Approvals of an MAA or NDA, relating specifically to the pre-launch, launch, promotion, marketing, branding, sales, and distribution of the Licensed Product within the Field, including: (a) strategic marketing, sales force detailing, advertising, medical education and liaison, reimbursement (other than Pricing Approval) and market access activities and market and Licensed Product support; and (b) all customer support, Licensed Product distribution, invoicing and sales activities. For clarity, Commercialization shall exclude any Manufacturing activities. “Commercialize” shall have a correlative meaning.

1.23    “Commercially Reasonable Efforts” means, with respect to a Party, the application by or on behalf of such Party [***].

1.24    “Commercial Quality Agreement” has the meaning set forth in Section 7.4.

1.25    “Commercial Supply Agreement” has the meaning set forth in Section 7.4.

1.26    “Completion” has the meaning set forth in Section 2.6(d).

1.27    “Confidential Information” means, with respect to a Party, all Information of such Party or its Affiliates that is disclosed to the other Party under this Agreement, whether in oral, written, graphic, or electronic form (except as provided in Section 12.1). All Information relating to a Licensed Product disclosed by either Party or its Affiliates pursuant to the Non-Disclosure Agreement between SGI and MPI dated [***], as amended, and the [***] between [***], [***] and [***] dated [***] (each, a “CDA” and collectively, the “CDAs”), shall be deemed to be such Party’s Confidential Information disclosed hereunder.

3
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.28    “Control” means, with respect to a Party and any material, Information, or intellectual property right and with respect to a particular point in time, that such Party or any of its Affiliates owns or has a license to such material, Information, or intellectual property right and has the ability to grant to the other Party access, a license, or a sublicense (as applicable) to such material, Information, or intellectual property right on the terms and conditions set forth herein without violating the terms of any agreement or other arrangement with any Third Party existing at such time.

1.29    “Cost Allocation” has the meaning set forth in Section 8.2(b).

1.30    “Cost of Goods Sold” means, with respect to Licensed Product supplied by a Party to the other Party hereunder, [***]:

(a)    The amounts paid by the supplying Party or its Affiliates to a Third Party for (i) [***], and (ii) [***]; and

(b)    To the extent not included in subsection (a), [***].

For the avoidance of doubt, when calculating Cost of Goods Sold, [***]. For the sake of clarity, (i) [***], and (ii) [***].

1.31    “Develop” or “Development” means the conduct of research, pre-clinical and clinical drug development activities pertaining to a Licensed Product, including toxicology, pharmacology, test method development, stability testing, process development, technology transfer, formulation development, delivery system development, quality assurance and quality control development, statistical analysis, clinical studies (including investigator-sponsored clinical trials, Phase 4 Clinical Trials and any post-approval studies required by the relevant Regulatory Authority), regulatory affairs, pharmacovigilance, Regulatory Approval and Pricing Approval, and clinical study regulatory activities (including regulatory activities directed to obtaining pricing and reimbursement approvals).

1.32    “Developing Party” has the meaning set forth in Section 2.6(d).

1.33    “Development Budget” has the meaning assigned thereto in Section 4.2(a).

1.34    “Distributor” means any Third Party appointed by the relevant Party or its Affiliates, in accordance with such Party’s or its Affiliate’s typical practices for its proprietary products, to distribute, market, and sell Licensed Products, where such Third Party is not granted any right to make or have made or conduct clinical Development of Licensed Products.

1.35    “Dollar” means a U.S. dollar, and “$” shall be interpreted accordingly.

1.36    “[***]” has the meaning set forth in Section [***].
4
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.37    “EMEA” means the European Medicines Agency, or any successor entity thereto.

1.38    “EU” means the countries of the European Union, as its membership may be altered from time to time, and any successor thereto.

1.39    “Executive Officer” means, with respect to SGI, the chief executive officer of SGI (or senior executive designee of such chief executive officer), and, with respect to MPI, the chief executive officer of MPI (or senior executive designee of such chief executive officer).

1.40    “Existing Third Party Agreement” has the meaning set forth in Section 8.6.

1.41    “FDA” means the U.S. Food and Drug Administration, or any successor entity thereto.

1.42    “FD&C Act” means the U.S. Federal Food, Drug, and Cosmetic Act, as amended.

1.43    “Field” means the diagnosis, prevention, control, and/or treatment of any and all therapeutic indications.

1.44    “First [***] Indication” has the meaning set forth in Section 8.3(e).

1.45    “First Commercial Sale” means the first sale to a Third Party of a Licensed Product in a given regulatory jurisdiction [***] has been obtained in such jurisdiction or, [***], after [***]. For clarity, First Commercial Sale [***].

1.46    “First Opt-In Costs” has the meaning set forth in Section 2.6(d).

1.47    “First Opt-In Point” has the meaning set forth in Section 2.6(d).

1.48    “First Opt-In Right” has the meaning set forth in Section 2.6(d).

1.49    “Force Majeure” has the meaning set forth in Section 15.2.

1.50    “FTE” means the equivalent of a full-time employee of either Party (including normal vacations, sick leave, and other similar matters) to the extent performing scientific, medical, technical, managerial, or other activities (other than patent activities, accounting and other finance activities, and other G&A activities). An FTE charged to either Party shall represent the actual time a full-time employee of such Party spends working on activities assigned to such Party under the Global Product Development Plan or for services provided pursuant to Section 4.2(c), as recorded in such Party’s project time reporting system. For the avoidance of doubt, the time shall be recorded in a manner such that no employee of either Party can report him/herself as more than one (1) FTE in any given month. An FTE is measured on the basis of a total of [***] per [***].
5
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.51    “FTE Rate” means the rate for an FTE to be charged to the Joint Development Costs for Joint Development activities or for services provided pursuant to Section 4.2(c). The initial FTE rate shall be [***] and [***] beginning [***] based on the [***]. [***].

1.52    “Future Third Party Agreement” means any license agreement entered into between SGI or MPI and any Third Party following the Effective Date pursuant to Section 2.1(f), except as provided as in Section 2.1(f)(iv)(2).

1.53    “Generic Market Data” has the meaning set forth in Section 8.5(c).

1.54    “Generic Product” means a Third Party product (a) [***], and (b) [***]. Notwithstanding the foregoing, [***].

1.55    “Global Product Development Plan” means the plan pursuant to which the Parties will conduct certain collaborative activities relating to the Development of the Licensed Product in the Territory, as further set forth in Section 4.2(a), and includes the relevant Development Budget.

1.56    “Global Regulatory Plan” has the meaning set forth in Section 5.1(a).

1.57    “Good Clinical Practices” or “GCP” means the then-current standards, practices and procedures promulgated or endorsed by the FDA as set forth in the guidelines entitled “Guidance for Industry E6 Good Clinical Practice: Consolidated Guidance,” including related regulatory requirements imposed by the FDA.

1.58    “Good Laboratory Practices” or “GLP” means the then-current good laboratory practice standards promulgated or endorsed by the FDA as defined in 21 C.F.R. Part 58.

1.59    “Good Manufacturing Practices” or “GMP” means the then-current good manufacturing practices required by the FDA, as set forth in the FD&C Act and the regulations promulgated thereunder, for the manufacture and testing of pharmaceutical materials, and comparable laws or regulations applicable to the manufacture and testing of pharmaceutical materials in jurisdictions outside the U.S., as they may be updated from time to time. Good Manufacturing Practices shall include applicable quality guidelines promulgated under the International Conference on Harmonization (“ICH”).

1.60    “Governmental Authority” means any multi-national, federal, state, local, municipal or other government authority of any nature (including any governmental division, prefecture, subdivision, department, agency, bureau, branch, office, commission, council, court or other tribunal).

1.61    “[***] Indication” has the meaning set forth in Section 8.3(d).

1.62    “ICH” has the meaning set forth in the definition of “Good Manufacturing Practices” in this Article 1.
6
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.63    “Incremental Activity” has the meaning set forth in Section 4.7(a).

1.64    “IND” means (a) an Investigational New Drug Application as defined in the FD&C Act and applicable regulations promulgated hereunder by the FDA, or (b) the equivalent application to the equivalent agency in any other regulatory jurisdiction outside the U.S., the submission of which is necessary to commence or conduct clinical testing of a pharmaceutical product in humans in such jurisdiction, including a Clinical Trial Authorization (CTA).

1.65    “Indemnified Party” has the meaning set forth in Section 11.3.

1.66    “Indemnifying Party” has the meaning set forth in Section 11.3.

1.67    “Independent Activity” has the meaning set forth in Section 4.7(b).

1.68    “Information” means any data, results, technology, business information and information of any type whatsoever, in any tangible or intangible form, and any tangible materials, including know how, trade secrets, practices, techniques, methods, processes, inventions, developments, specifications, formulations, formulae, materials or compositions of matter of any type or kind (patentable or otherwise) (including biological materials, cell lines and assays), software, algorithms, marketing reports, expertise, technology, test data (including pharmacological, biological, chemical, biochemical, toxicological, preclinical and clinical test data), analytical and quality control data, stability data, other study data and procedures.

1.69    “Initial Global Product Development Plan” has the meaning set forth in Section 4.2(c).

1.70    “Initiation” means, with respect to a given clinical trial, the first dosing of the first person to be dosed pursuant to the protocol for such clinical trial.

1.71    “Japan Development Activities” means those Development activities solely related to Development in Japan or solely required for obtaining Regulatory Approval and Pricing Approval in Japan.

1.72    “Joint Commercialization Committee” or “JCC” means the committee formed by the Parties as described in Section 3.9.

1.73    “Joint Development” means the respective activities of each Party to conduct the activities that are included within the Global Product Development Plan.

1.74    “Joint Development Committee” or “JDC” means the committee formed by the Parties as described in Section 3.5.

1.75    “Joint Development Costs” means all [***] by a Party or for its account and [***].
7
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.76    “Joint Inventions” has the meaning set forth in Section 9.1.

1.77    “Joint Manufacturing Committee” or “JMC” means the committee formed by the Parties as described in Section 3.13.

1.78    “Joint Patent” has the meaning set forth in Section 9.3(c).

1.79    “Joint Results” has the meaning set forth in Section 4.6.

1.80    “Joint Steering Committee” or “JSC” means the committee formed by the Parties as described in Section 3.1.

1.81    “Key Country” means each of the following countries: [***].

1.82    “Laws” means all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision, domestic or foreign, including applicable national and international (e.g., ICH, GCP, GLP, and GMP) guidelines.

1.83    “Lead Development Party” has the meaning set forth in Section 4.2(b).

1.84    “Licensed Product” means SGN-35, as described in more detail in Exhibit D, including all formulations and dosage forms thereof.

1.85    “Licensed Technology” means, collectively, the SGI Patent Rights, the SGI Know How, SGI’s rights under the SGI Third Party Patent Rights, and SGI’s interest in any Joint Inventions and Joint Patents (to the extent relating to a Licensed Product).

1.86    “Licensed Territory” means the Territory except the SGI Territory.

1.87    “Linker-Conjugate” means one or more [***] or any [***], which [***] or [***] are owned or Controlled by SGI or MPI (or one of their respective Affiliates).

1.88    “Linker-Conjugate Allocation” has the meaning set forth in Section 2.6(d).

1.89    “Major European Countries” means [***].

1.90    “Manufacture” means, with respect to a Licensed Product, those manufacturing-related activities that support the Development (including the seeking and obtaining of Regulatory Approvals) and Commercialization of such Licensed Product, including manufacturing process development and scale-up, validation, qualification and audit of clinical and commercial manufacturing facilities, bulk production, fill/finish work and stability testing, related quality assurance technical support activities and CMC activities, and including, in the case of a clinical or commercial supply of such Licensed Product, the synthesis, manufacturing, processing, formulating, packaging, labeling, holding, quality control testing and release of such Licensed Product. “Manufacturing” has a correlative meaning.
8
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.91    “Marketing Authorization Application” or “MAA” means an application to the appropriate Regulatory Authority for approval to sell the Licensed Product (but excluding Pricing Approval) in any particular jurisdiction outside the U.S.

1.92    “Material Adverse SGI Breach” has the meaning set forth in Section 13.6.

1.93    “Measured Commercial Year” has the meaning set forth in Section 6.3(a).

1.94    “MHLW” means the Ministry of Health, Labour and Welfare in Japan, or any successor entity thereto.

1.95    “MPI Collaboration Technology” means the Sole Inventions (other than MPI Drug- Linker Inventions) made by MPI or its Affiliates’ employees, agents, or independent contractors in the course of conducting its activities under this Agreement (to the extent relating to a Licensed Product) (the “MPI Collaboration Know How”), together with all Patents claiming such inventions (the “MPI Collaboration Patent Rights”). MPI Collaboration Know How includes all Information, and MPI Collaboration Patent Rights includes all Patents, that are [***]. Notwithstanding anything to the contrary set forth in this definition, [***].

1.1    “MPI Drug-Linker Invention” has the meaning set forth in Section 9.1.

1.2    “MPI Indemnitees” has the meaning set forth in Section 11.1.

1.3    “MPI Independent Activities” means Independent Activities undertaken by MPI pursuant to Section 4.7(b).

1.4    “MPI Know How” means MPI Collaboration Know How and MPI Non-Collaboration Know How, collectively.

1.5    “MPI Non-Collaboration Know How” means all Information Controlled by MPI as of the Effective Date or during the Term [***], other than the MPI Collaboration Know How.

1.6    “MPI Non-Collaboration Patent Rights” means all Patents (other than Joint Patents and MPI Collaboration Patent Rights) Controlled by MPI as of the Effective Date or at any time during the Term (a) that claim a [***], the manufacture or use thereof or any other process or method to the extent that such process or method is used by MPI or its Affiliates to [***], or (b) [***].

1.7    “MPI Patent Rights” means MPI Collaboration Patent Rights and MPI Non-Collaboration Patent Rights, collectively.

1.8    “MPI Technology” means the MPI Patent Rights, the MPI Know How, and MPI’s interest in any Joint Inventions and Joint Patents.
9
[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.9    “NDA” means a New Drug Application or Biologics License Application in the United States, as defined in the FD&C Act or United States Public Health Service Act, as applicable, and applicable regulations promulgated thereunder by the FDA, or any successor application thereto.

1.10    “Net Sales” means the [***] of Licensed Products (including [***], subject to the remainder of this Section 1.105) sold or otherwise disposed of for consideration by MPI, its Affiliates, or their respective sublicensees, to independent Third Parties [***]: (a) [***]; (b) [***]; (c) [***]; (d) [***]; and (e) [***]. For the avoidance of doubt, if a single item falls into more than one of the categories set forth in clauses (a) – (e) above, such item shall [***]. For the sake of clarity, a Distributor shall [***].

If MPI, its Affiliates, or their respective sublicensees [***]. For clarity, [***]. In addition, [***]; provided, however that, [***].

If the Licensed Product is sold as part of a [***], the Net Sales from the [***], for the purposes of determining sales milestones and royalties, shall be determined by [***]. If such average sale price cannot be determined for all other [***]. If such average sale price cannot be determined [***]. [***].

1.11    “Non-Commercial Quality Agreement” has the meaning set forth in Section 7.3.

1.12    “Non-Commercial Supply Agreement” has the meaning set forth in Section 7.3.

1.13    “Patents” means (a) pending patent applications (including provisional applications) and patents issuing therefrom, issued patents, utility models and designs; and (b) reissues, substitutions, confirmations, registrations, validations, re-examinations, additions, continuations, continued prosecution applications, continuations-in-part, or divisions of or to any patents, patent applications, utility models or designs, in each case applied for or being enforceable within any country in the Territory.

1.14    “Patent Term Extension” means  any term  extensions,  supplementary protection certificates, Regulatory Exclusivity and equivalents thereof offering patent or patent-like protection beyond the initial term with respect to any issued Patents.

1.15    “Person” means a person, corporation, partnership, or other entity.

1.16    “PFMP” has the meaning set forth in Section 7.6(a).

1.17    “Pharmacovigilance Agreement” has the meaning set forth in Section 5.5.

1.18    “Phase 3 Clinical Trial” means one or more clinical trials on sufficient numbers of patients, which trial(s) are designed to (a) establish that a drug is safe and efficacious for its intended use; (b) define warnings, precautions and adverse reactions 

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that are associated with the drug in the dosage range to be prescribed; and (c) support approval of an application to a Regulatory Authority for the commercial sale of such drug.

1.19    “Phase 4 Clinical Trial” means a product support clinical trial of a product that is conducted after receipt of Regulatory Approval of an MAA or NDA in the country where such trial is conducted. A Phase 4 Clinical Trial may include epidemiological studies, modeling and pharmacoeconomic studies and post-marketing surveillance trials.

1.20    “Pricing Approval” means the approval, agreement, determination or governmental decision establishing the price or level of reimbursement for the Licensed Product, as required in a given jurisdiction prior to sale of such Licensed Product in such jurisdiction.

1.21    “Product Complaint” means any written, verbal or electronic expression of dissatisfaction regarding the Licensed Product, including reports of actual or suspected product tampering, contamination, mislabeling or inclusion of improper ingredients.

1.22    “Proof of Activity Study” has the meaning set forth in Section 2.6(d).

1.23    “Regulatory Approvals” means all approvals (including supplements and amendments, [***], licenses, registrations or authorizations of any national, supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, necessary for the Development or Commercialization of a Licensed Product, which may include the approval of a NDA or MAA, and satisfaction of all applicable regulatory and notification requirements.

1.24    “Regulatory Authority” means, in a particular country or jurisdiction, any applicable Governmental Authority involved in granting Regulatory Approval in such country or jurisdiction, including the FDA, the EMEA, and the MHLW.

1.25    “Regulatory Exclusivity” means any exclusive marketing rights or data exclusivity rights conferred by any Governmental Authority with respect to the Licensed Product, but excluding the rights conferred by a Patent.

1.26    “Regulatory Materials” means regulatory applications, submissions, notifications, communications, correspondence, registrations, Regulatory Approvals, Pricing Approvals and/or other submissions made to, received from or otherwise conducted with a Regulatory Authority that are necessary or reasonably desirable in order to Develop, Manufacture, market, sell or otherwise Commercialize Licensed Products in a particular country, territory or possession. Regulatory Materials include INDs, MAAs, NDAs and applications for Pricing Approvals.

1.27    “Royalty Term” has the meaning set forth in Section 8.5(f).

1.28    “SEC” has the meaning set forth in Section 12.3(c).
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[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.29    “[***]” means any product that contains an Antibody that [***], including such an Antibody that is [***], excluding the Licensed Product. For purposes of [***], one [***] shall be distinct from another (a) [***], or (b) [***]. A particular [***] includes [***].

1.30    “Second Opt-In Costs” has the meaning set forth in Section 2.6(d).

1.31    “Second Opt-In Point” has the meaning set forth in Section 2.6(d).

1.32    “Second Opt-In Right” has the meaning set forth in Section 2.6(d).

1.33    “SGI Bankruptcy Event” means (a) the entry of an order for relief under the U.S. Bankruptcy Code (or any other bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect) by SGI; (b) the commencement of an involuntary proceeding under the U.S. Bankruptcy Code or any other bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect against SGI, if not dismissed, bonded or stayed within ninety (90) days after such commencement; (c) the making by SGI of a general assignment for the benefit of creditors; or (d) the appointment of or taking possession by a receiver, liquidator, assignee, custodian, or trustee of all or substantially all of the business or property of SGI.

1.34    “SGI Indemnitees” has the meaning set forth in Section 11.2.

1.35    “SGI Independent Activities” means Independent Activities undertaken by SGI pursuant to Section 4.7(b).

1.36    “SGI Know How” means all Information Controlled by SGI as of the Effective Date or during the Term that [***]. For clarity, SGI Know-How includes all Information that is [***] (a) [***] (b) a [***] (a) or (b), [***].

1.37    “SGI Linker-Conjugate Technology” means (a) cytotoxic or cytostatic compounds Controlled by SGI, including the composition and methods of making and using such cytotoxic or cytostatic compounds, such as [***], (b) compositions and methods useful for attaching the cytotoxic or cytostatic compounds described in clause (a) to Antibodies, and (c) [***].

1.38    “SGI Manufacturing Period” has the meaning set forth in Section 7.2(a).

1.39    “SGI Patent Rights” means SGI Platform Patent Rights and SGI Product Patent Rights, collectively. The SGI Patent Rights existing as of the Effective Date are listed in Exhibit A.

1.40    “SGI Platform Know How” means all Information (other than Joint Inventions) that relates primarily to the SGI Linker-Conjugate Technology.

1.41    “SGI Platform Patent Rights” means all Patents (other than Joint Patents and SGI Third Party Patent Rights) that are Controlled by SGI as of the Effective Date or at any time during the Term that claim SGI Platform Know How or the manufacture or use
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thereof and that are necessary or useful for the Development, Manufacture, or Commercialization of Licensed Products. SGI Platform Patent Rights includes all Patents that are licensed to SGI or its Affiliates pursuant to a [***]. [***].

1.42    “SGI Product Know How” means all SGI Know How other than SGI Platform Know How.

1.43    “SGI [***]” means all Patents (other than Joint Patents, SGI Platform Patent Rights and
SGI Third Party Patent Rights) Controlled by SGI as of the Effective Date or at any time during the Term (a) that claim a [***] or any other process or method to the extent that such process or method is or was used by SGI or its Affiliates [***], or (b) that [***] if not for the licenses granted hereunder, or in the case of pending patent applications, that, if issued, [***] if not for the licenses granted hereunder. SGI [***] includes all Patents that are licensed to SGI or its Affiliates pursuant to a Future Third Party Agreement entered into by SGI or its Affiliates solely to the extent that such Patents satisfy the first sentence of this definition of SGI [***]. [***].

1.44    “SGI Territory” means the U.S., Canada and their respective territories and possessions.

1.45    “SGI Third Party Patent Rights” means those Patents licensed to SGI pursuant to the Existing Third Party Agreements (a) that claim a Licensed Product or the manufacture or use thereof or any other process or method to the extent that such process or method is or was used by SGI or its Affiliates to Manufacture, Develop or Commercialize a Licensed Product, or (b) that would be infringed by the manufacture, use, import, offer for sale or sale of a Licensed Product if not for the licenses granted hereunder would be infringed by the manufacture, use, import, offer for sale or sale of a Licensed Product if not for the licenses granted hereunder. or in the case of pending patent applications, that, if issued, would be infringed by the manufacture, use, import, offer for sale or sale of a Licensed Product if not for the licenses granted hereunder. The SGI Third Party Patent Rights existing as of the Effective Date are listed in Exhibit A.

1.46    “Sole Inventions” has the meaning set forth in Section 9.1.

1.47    “SOPs” has the meaning set forth in Section 5.7(b).

1.48    “Standstill Provisions” has the meaning set forth in Section 15.6(c).

1.49    “Supply Negotiation Trigger Date” has the meaning set forth in Section 7.6(a).

1.50    “Supply Price” means, with respect to a unit of Licensed Product, the sum of (a) [***], and (b) [***].
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[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

1.51    “Taxes” means taxes (other than income taxes), duties, tariffs or other governmental charges levied on the sale of Products, including consumption and value added taxes.

1.52    “Term” has the meaning set forth in Section 13.1.

1.53    “Terminated Country” means with respect to a termination of this Agreement, the country(ies) subject to such termination, to the extent applicable to terminations by SGI as provided in Section 13.3, or with respect to termination of this Agreement in its entirety, all countries in the Licensed Territory.

1.54    “Territory” means the entire world.

1.55    “Third Party” means any Person other than SGI or MPI or an Affiliate of either of them.

1.56    “Trigger Event” has the meaning set forth in Section 15.6(e).

1.57    “U.S.” means the United States of America and its territories and possessions.

1.58    “Voting Stock” has the meaning set forth in Section 15.6(d).

1.59    “Working Group” has the meaning set forth in Section 3.18.

ARTICLE 2

LICENSES

2.1    Licenses to MPI.

(a) Co-Development Activities. Subject to the terms and conditions of this Agreement, SGI hereby grants MPI and its Affiliates a co-exclusive (with SGI), royalty-free, non- transferable (except in accordance with Section 15.5) license, under the Licensed Technology to Develop, import, and use Licensed Products in the Field solely in accordance with MPI’s rights and responsibilities under the Global Product Development Plan. MPI and its Affiliates shall be permitted to sublicense the license granted under this Section 2.1(a) [***].

(b) Independent Development Activities. Subject to the terms and conditions of this Agreement, SGI hereby grants MPI and its Affiliates an exclusive, royalty-free, non-transferable (except in accordance with Section 15.5) license, with the right to grant sublicenses as provided below, under the Licensed Technology, to undertake, with respect to Licensed Products in the Field, [***] in the Licensed Territory and in the SGI Territory, [***]. MPI and its Affiliates shall be permitted to sublicense the license granted under this Section 2.1(b) to Third Parties.

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(c) Commercialization in Licensed Territory. Subject to the terms and conditions of this Agreement, SGI hereby grants MPI and its Affiliates an exclusive, royalty-bearing, non- transferable (except in accordance with Section 15.5) license, with the right to grant sublicenses as provided below, under the Licensed Technology, to distribute, import, sell, offer for sale and otherwise Commercialize Licensed Products in the Field, solely in the Licensed Territory. MPI and its Affiliates shall be permitted to sublicense the license granted under this Section 2.1(c) to Third Parties (including Distributors), subject to Section 2.5(b).

(d) Manufacturing. Subject to the terms and conditions of this Agreement, SGI hereby grants MPI and its Affiliates a co-exclusive (with SGI), non-transferable (except in accordance with Section 15.5) license, with the right to grant sublicenses solely to MPI’s Third Party contract manufacturers or MPI’s sublicensees pursuant to Sections 2.1(b) or 2.1(c), under the Licensed Technology to make, have made, and otherwise Manufacture Licensed Products in the Territory solely (i) for use by MPI and its Affiliates and their respective sublicensees for Development as permitted under this Agreement or for Commercialization in the Licensed Territory, or (ii) for any other obligations of MPI under Article 7.

(e) Exhibit A. SGI shall update Exhibit A from time to time to reflect the then-current list of SGI Patent Rights and shall use reasonable efforts to update Exhibit A from time to time to reflect the then-current list of SGI Third Party Patent Rights; provided, however, that any Patent that otherwise is an SGI Patent Right or an SGI Third Party Patent Right remains so even if it is not listed on Exhibit A.

(f) Sublicensed Rights.

(i) The licenses granted under this Section 2.1 are subject to and limited by the licenses granted, and other obligations owed, by SGI to a Third Party pursuant to the Existing Third Party Agreements and the Future Third Party Agreements. MPI agrees to comply with all applicable terms and conditions of the Existing Third Party Agreements and the Future Third Party Agreements entered into by SGI, [***]. Subject to Section 2.1(f)(iii), SGI agrees to comply with all applicable terms and conditions of the Future Third Party Agreements entered into by MPI. SGI shall notify MPI promptly if SGI breaches an Existing Third Party Agreement or upon receiving any written notice from a counterparty under an Existing Third Party Agreement that alleges that SGI has breached such agreement.

(ii) MPI shall be responsible for paying (A) (i) [***], (ii) [***], and (iii) [***], and (B) [***].

(iii) If a Party identifies any Third Party Information or Patents that may be necessary or useful to Develop, Manufacture or Commercialize the Licensed Product in the Territory, such Party shall promptly notify the other Party thereof and the Parties shall discuss the need for a license to such Information or Patents, taking into consideration any commercial advantages associated with the timing of licensing such Information or Patents, the usefulness or necessity of such Information or Patents to the
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[ *** ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

success of the Development, Manufacture or Commercialization of the Licensed Product and any other factors the Parties deem relevant. If the Parties agree about whether to seek a license to any Third Party Information or Patent, then the Parties shall determine which Party shall have primary responsibility for negotiating any agreement to obtain a license to such Information or Patents. Such responsible Party shall keep the other Party reasonably informed regarding such negotiation, shall allow such other Party to review and comment on any draft received from or provided to the relevant Third Party and shall not enter into any agreement to obtain a license to such Information or Patents, except with such other Party’s prior written consent, which shall not be unreasonably withheld, following which such agreement shall be a Future Third Party Agreement hereunder. In addition, the Parties shall reasonably allocate responsibility for paying upfront and maintenance fees, milestones, and other compensation owed to Third Parties pursuant to such Future Third Party Agreements (other than (A) royalties to the extent due as a result of Development, use, manufacture, importation, sale or offering for sale of the Licensed Product in the Licensed Territory by [***], and (B) royalties to the extent due as a result of Development, use, manufacture, importation, sale or offering for sale of the Licensed Product in the SGI Territory by SGI, its Affiliates or their respective (sub)licensees, [***]. Such allocation shall take into account the relative value that the intellectual property licensed under the applicable Future Third Party Agreement [***]. The Parties shall cooperate and provide such exchange of information as reasonably necessary with respect thereto. Each Future Third Party Agreement entered into by a Party shall include the obligation for the counterparty thereto to provide the other Party with written notice of any alleged breach by the contracting Party of any provisions thereunder and the right for the other Party, in such other Party’s sole discretion, to cure such breach, provided that the contracting Party shall have the first opportunity to cure such breach and such other Party provides the contracting Party with [***] written notice that it intends to cure such breach, or such shorter written notice period that may be necessary under the circumstances to avoid any material loss of rights. Each Party shall use commercially reasonable efforts to maintain any Future Third Party Agreement entered into by such Party or its Affiliate in full force and effect during the Term and will not amend any such agreement in a manner that would materially adversely affect the rights and obligations of the other Party under this Agreement, except with such other Party’s prior written consent.

(iv) If the Parties disagree about whether to seek a license to any Third Party Information or Patent and are unable to resolve these differences after reasonable attempts to do so, then such dispute shall be resolved in accordance with Article 14; [***].

(1) If the decision of such [***] is that such Third Party Information or Patent [***], the Parties shall be [***] and any license agreement with respect to such Third Party Information or Patent shall [***].

(2) If the decision of such [***] is that such Third Party Information or Patent [***], either Party [***] (A) [***] (B) [***] and the agreement with respect to such Third Party Information or Patent shall [***].
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(3) The Parties acknowledge and agree that such [***] may determine that such Third Party Information or Patent is [***]. As a result, the Parties agree that clauses (1) and (2) above shall be applied in an [***] consistent with such determination, including, if necessary, by applying clauses (1) and (2) to [***].

(v) Subject to the next-to-last sentence of Section 2.1(f)(iii), [***].

(g) Certain Understandings Regarding Future IP Rights. Both Parties have agreed that the licenses granted by SGI to MPI and its Affiliates under any SGI Know How, SGI Patent Rights, Joint Inventions, or Joint Patents that are developed after the Effective Date (collectively, “Future Intellectual Property”) are not intended to, and shall not, create (i) future performance obligations of SGI to develop any such Future Intellectual Property or (ii) a right of MPI to cause any of the consideration otherwise paid or to be paid by MPI to SGI to be refunded or diminished if no Future Intellectual Property is so developed. Notwithstanding the preceding sentence, this Section 2.1(g) shall in no way diminish those obligations of SGI that are otherwise explicitly provided for in this Agreement, including SGI’s Development obligations under the Global Product Development Plan, as provided for in Article 4, and SGI’s Manufacturing obligations during the SGI Manufacturing Period, as provided for in Article 7.

2.2 Licenses to SGI.

(a) Co-Development Activities. Subject to the terms and conditions of this Agreement, MPI hereby grants SGI and its Affiliates a co-exclusive (with MPI), royalty-free, non- transferable (except in accordance with Section 15.5) license, under the MPI Collaboration Technology, to Develop, import, and use Licensed Products in the Field solely in accordance with SGI’s responsibilities under the Global Product Development Plan. SGI and its Affiliates shall be permitted to sublicense the license granted under this Section 2.2(a) solely to those Third Party contractors (i) that are [***] (ii) that are approved [***].

(b) Independent Development Activities. Subject to the terms and conditions of this Agreement, MPI hereby grants SGI and its Affiliates an exclusive, royalty-free, non-transferable (except in accordance with Section 15.5) license, with the right to grant sublicenses as provided below, under the MPI Collaboration Technology, to undertake, with respect to Licensed Products in the Field, [***] in the SGI Territory and in the Licensed Territory, [***] SGI and its Affiliates shall be permitted to sublicense the license granted under this Section 2.2(b) to Third Parties, subject to Section 2.5(a).

(c) Commercialization in SGI Territory. Subject to the terms and conditions of this Agreement, MPI hereby grants SGI and its Affiliates a non-exclusive, royalty-free, non-transferable (except in accordance with Section 15.5) license, with the right to grant sublicenses as provided below, under the MPI Collaboration Technology to distribute, import, sell, offer for sale and otherwise Commercialize Licensed Products in the Field, solely in the SGI Territory. SGI and its Affiliates shall be permitted to sublicense the license granted under this Section 2.2(c) to Third Parties (including Distributors), subject to Section 2.5(a).
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(d) Manufacturing. Subject to the terms and conditions of this Agreement, MPI hereby grants SGI and its Affiliates a co-exclusive (with MPI), non-transferable (except in accordance with Section 15.5) license, with the right to grant sublicenses solely to SGI’s Third Party contract manufacturers or SGI’s sublicensees pursuant to Sections 2.2(b) or 2.2(c) (subject to Section 2.5(a)), under the MPI Collaboration Technology to make, have made, and otherwise Manufacture Licensed Products in the Territory solely (i) for use by SGI and its Affiliates and their respective sublicensees for Development as permitted under this Agreement or for Commercialization in the SGI Territory; or (ii) for any other obligations of SGI under Article 7.

(e) Covenant Not to Sue. MPI hereby covenants, on behalf of itself and its Affiliates, not to sue or otherwise bring a claim against SGI or its Affiliates, or the other Persons specified in the following sentence, during the Term, to the extent that their conducting of the following activities infringes any MPI Non-Collaboration Technology: (i) Development, importation, and use of Licensed Products in the Field solely in accordance with SGI’s responsibilities under the Global Product Development Plan, (ii) undertaking, with respect to Licensed Products in the Field, [***] and in the [***], (iii) distribution, importation, sale, offer for sale and other Commercialization of Licensed Products in the Field, solely in the SGI Territory, (iv) making, having made, and otherwise Manufacturing Licensed Products in the Territory solely (A) for Development and Commercialization in the SGI Territory; or (B) for any other obligations of SGI under Article 7. In addition to SGI and its Affiliates, such covenant shall extend as follows: clause (i) shall extend solely to those Third Party contractors (y) [***] or (z) [***]; clause (ii) shall extend to Third Parties to whom SGI has granted sublicenses pursuant to Section 2.2(b), subject to Section 2.5(a); clause (iii) shall extend to Third Parties to whom SGI or its Affiliates has granted sublicenses pursuant to Section 2.2(c), including Distributors, in each case subject to Section 2.5(a), and to any customers who purchase or otherwise receive Licensed Product from SGI, its Affiliates, or any such Third Parties; and clause (iv) shall extend solely to SGI’s Third Party contract manufacturers and SGI’s sublicensees pursuant to Sections 2.2(b) or 2.2(c) (subject to Section 2.5(a)) with respect to the Licensed Product.

2.3 No Implied License; Negative Covenant. Except as expressly provided herein, no rights, express or implied, to any intellectual property of a Party are granted to the other Party. In addition, neither Party shall use or practice any of the other Party’s intellectual property rights licensed to it under this Article 2 (or that are the subject of a covenant not to sue granted under this Agreement) except for the purposes expressly permitted in this Agreement.

2.4 Territorial Limitations. Each Party hereby covenants and agrees that it and its Affiliates shall not, either directly or indirectly, Commercialize Licensed Products except in accordance with this Agreement. Specifically and without limitation, MPI shall not deliver or tender (or cause to be delivered or tendered) any Licensed Product outside of the Licensed Territory or offer for sale any Licensed Product that could reasonably be expected to be reimported into the SGI Territory. SGI shall not deliver or tender (or cause to be delivered or tendered) any Licensed Product outside of the SGI Territory or offer for 
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sale any Licensed Product that could reasonably be expected to be reimported into the Licensed Territory.

2.5 [***].

(a) If SGI determines to, directly or indirectly, [***] to the Licensed Product not licensed to MPI under this Agreement, including [***], to any Third Party [***], then SGI shall promptly provide MPI with written notice of such determination. Provided that MPI notifies SGI in writing, no later than [***] after receiving such notice from SGI, [***] from SGI’s receipt of such notice from MPI. During such period, the Parties will [***]. If (i) MPI fails to notify SGI of its [***], or (ii) MPI notifies SGI [***], or (iii) no [***] of such rights [***] provided above, then SGI will [***] following the expiration of the above- mentioned [***] negotiation period. If SGI does not [***] period, then SGI shall be [***]. For clarity, the [***] granted to MPI under this Section 2.5(a) shall not apply to any [***].

(b) If MPI determines to, directly or indirectly, [***] the Licensed Product in a [***], to any Third Party [***] then MPI shall promptly provide SGI with written notice of such determination. Provided that SGI notifies MPI in writing, no later than [***] after receiving such notice from MPI, indicating that [***] from MPI’s receipt of such notice from SGI. During such period, the Parties will [***]. If (i) SGI fails to notify MPI of [***], or (iii) [***] period following the expiration of the above- mentioned [***]. If MPI does not [***] period, then MPI shall [***]. For clarity, the granted to SGI under this Section 2.5(b) shall not apply to [***].

2.6 [***].

(a) If a Party or one of its Affiliates plans to conduct, in-license or otherwise acquire rights with respect to, or license to a Third Party the right to conduct, IND-enabling research, development or commercialization of a [***] in the Field, it shall provide written notice thereof to the other Party (which notice shall include a summary [***] (as applicable to the stage of the [***]) prepared in good faith) and the Parties shall discuss the [***].

(b) Upon request of the non-proposing Party, the non-proposing Party may conduct due diligence on the applicable [***] for up to [***] after its receipt of the summary described in Section 2.6(a), and the proposing Party shall reasonably cooperate with the non-proposing Party with respect to such [***] activities. Upon further request of the non-proposing Party, the Parties shall [***] in the Field, subject to Section 2.6(c); provided, however, that such terms shall include the following:

(i) the Parties will [***] (and not pursuant to Section 2.6(d)(ii) or 2.6(d)(iii)), the non-proposing Party will [***]. For the sake of clarity, [***];

(ii) [***];

(iii) if a Licensed Product is then being Commercialized in the SGI Territory or Licensed Territory under this Agreement, [***];

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(iv) for any indications and/or territories not covered by clause (iii) above, the commercial responsibilities of the Parties will be allocated by the Parties [***];

(v) [***]; and

(vi)     the Parties shall have audit rights comparable to those in this Agreement with respect to [***].

(a) If, within [***] after the non-proposing Party’s receipt of the summary described in Section 2.6(a), the non-proposing Party requests in writing a negotiation of the terms under which the Parties would collaborate on the research, development, and/or commercialization of the [***] in the Field, as contemplated by Section 2.6(b), then the Parties shall negotiate a definitive written agreement on the terms set forth in Section 2.6(b)(i) through (vi) and other terms to be negotiated by the Parties in good faith. If, [***] after the non-proposing Party’s receipt of the summary described in Section 2.6(a) [***], the Parties do not enter into such a [***].

(b) If, [***] after the non-proposing Party’s receipt of the summary described in Section 2.6(a), the non-proposing Party fails to request in writing a negotiation of the terms under which the Parties would collaborate on the [***] in the Field, as contemplated by Section 2.6(b), then the proposing Party (the “Developing Party”) shall be free to [***]:

(i) The other Party shall grant to the Developing Party licenses and/or covenants not to sue comparable to those set forth in Section 2.1 or 2.2, as applicable, adjusted as necessary to reflect any distinctions with respect to such [***] and the worldwide nature of such license, and, to the extent that the [***] by such other Party or its Affiliates, the other Party shall provide reasonable assistance to the Developing Party with respect to the development and manufacture of such [***], in accordance with a transition plan to be agreed upon by the Parties in good faith, with the Developing Party [***].

(ii) At the time [***] with respect to such [***], the non-Developing Party shall have the [***], subject to the terms set forth below. At the [***], the Developing Party shall provide to the other Party a summary [***], and shall reasonably answer the non-Developing Party’s questions with respect thereto, including, if applicable, providing additional information if reasonably necessary for the non-Developing Party to decide whether to [***]. If, within [***], the non-Developing Party notifies the Developing Party of its decision to [***], the Developing Party shall promptly disclose to the non-Developing Party, in reasonable detail, [***]. Thereafter, the Parties [***] on the terms set forth in Section 2.6(b)(i) through (vi) and other terms to be negotiated by the Parties in good faith, [***] of the [***]. The “[***]” means, with respect to the relevant [***]. If, within [***] after the non-Developing Party’s exercise of its [***], the Parties do [***] setting forth the terms under which the Parties will [***], then the terms of such definitive written agreement shall be determined by arbitration in accordance with Section 2.6(e).
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(iii) If the non-Developing Party does not exercise its [***] provided above, or if the applicable [***] was, at the time the Developing Party acquired rights to the [***], beyond the [***], then at the time of [***], the non-Developing Party shall have the right to elect to participate in the further development, manufacture and commercialization of such [***], subject to the terms set forth below. At the Second Opt-In Point, the Developing Party shall provide to the other Party a summary of all clinical data with respect to such [***], as applicable, and shall reasonably answer the non- Developing Party’s questions with respect thereto, including, if applicable, providing additional information if reasonably necessary for the non-Developing Party to decide whether to exercise its [***]. If, within [***] after Completion [***], the non-Developing Party notifies the Developing Party of its decision to exercise its [***], the Developing Party shall promptly disclose to the non-Developing Party, in reasonable detail, the total amounts then-expended by the Developing Party in connection with the research and development of such [***] (for the sake of clarity, [***]. Thereafter, the Parties shall negotiate in good faith the terms of a [***] and other terms to be negotiated by the Parties in good faith, [***]. [***]. The Parties agree that the [***] include the activities covered by the [***], but the amounts included in the [***] for those activities included in the written notice provided to the non- Developing Party by the Developing Party pursuant to Section 2.6(d)(ii) shall not [***]. [***]. [***] after the non-Developing Party’s exercise of its [***] do not enter into a [***].

(iv) If the non-Developing Party does not exercise its [***] within the [***] provided above, or if the applicable [***] was, at the time the Developing Party acquired rights to the [***], beyond the [***], then (provided that Developing Party has fully complied with the terms of Sections 2.6(a) and (b) (and Sections 2.6(c) and (d), if applicable)) [***].

(c) Any arbitration proceedings required by Section 2.6(c), 2.6(d)(ii), or 2.6(d)(iii) shall be conducted through [***]. Each Party would present the arbitrator with [***] (and to the extent applicable, the [***] and a written summary of its rationale for any key terms (such summary not to exceed five (5) pages), and the arbitrator shall have the [***]. The foregoing [***] shall not take longer than [***] from the date of submission of the positions to the arbitrator. Each Party shall [***].

ARTICLE 3 

OVERVIEW; MANAGEMENT

3.1 Joint Steering Committee. Within [***] after the Effective Date, the Parties shall establish
a Joint Steering Committee (or “JSC”) for the overall coordination and oversight of the Parties’ activities under this Agreement. The JSC shall have an initial term of [***] and [***] unless one of the Parties provides written notice to the other Party at least [***]. The JSC shall have only the powers assigned expressly to it in this Section 3.1 and elsewhere in this Agreement, and the JSC shall not have any power to amend, modify or waive compliance with this Agreement. The JSC shall conduct its discussions in good faith with a view to operating to the mutual benefit of the Parties and in furtherance of the
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successful Development and Commercialization of Licensed Products. The role of the JSC shall be:

(a) to oversee the collaborative activities of the Parties under this Agreement;

(b) to discuss and establish, with input from the JDC, the overall strategy for the Development of Licensed Products in the Field and the content of the core global label for Licensed Products;

(c) to discuss and establish, with input from the JCC, the overall strategy for the branding and Commercialization of Licensed Products in the Field;

(d) to review and approve updates or amendments to the Initial Global Product Development Plan and any subsequent versions of the Global Product Development Plan;

(e) to review and approve updates or amendments to the Global Regulatory Plan and any subsequent versions of the Global Regulatory Plan;

(f) to review and coordinate the Parties’ respective activities for the Development, Manufacture and Commercialization of Licensed Products within the Licensed Territory and the SGI Territory, including Independent Activities;

(g) to oversee, and attempt to resolve disputes arising on, the JDC, JCC, JMC or any other subcommittee;

(h) to appoint other subcommittees as the JSC deems appropriate, which subcommittees shall consist of equal numbers of appropriately qualified representatives appointed by the respective Parties, and to oversee, and attempt to resolve disputes arising on, such subcommittees; and

(i) to perform such other functions as appropriate to further the purposes of this Agreement, as mutually determined by the Parties.

3.2 Joint Steering Committee Membership. Each Party shall initially appoint [***] to the JSC, each of whom will be an officer or employee of such Party and will have sufficient seniority within the applicable Party to make decisions arising within the scope of the JSC’s responsibilities and will have appropriate expertise in clinical development, regulatory, and/or commercial/business matters. The JSC may change its size from time to time by mutual consent of its members. Each Party may replace its JSC representatives at any time upon written notice to the other Party. The JSC may invite non-members (including consultants and advisors of a Party) who are under an obligation of confidentiality consistent with this Agreement to participate in the discussions and meetings of the JSC, provided that such participants shall have no voting authority at the JSC. The JSC shall have a chairperson. Each Party shall have the right, on an [***] basis, to select from among its JSC representatives [***]. Such Party shall have the right during [***]. The [***]. The

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role of the chairperson shall be to convene and preside at meetings of the JSC, to prepare agendas (with due input from the other Party’s representatives), circulate agendas and to ensure the preparation of meeting minutes, but the chairperson shall have no additional powers or rights beyond those held by the other JSC representatives.

3.3 Joint Steering Committee Meetings. The JSC shall meet as frequently as required, but in no event less than [***]. The meetings of the JSC may be held in person or by audio or video conference, with in person meetings taking place at least [***] and alternating between the Parties’ business locations or as otherwise decided by the JSC. Meetings of the JSC shall be effective only if at least [***] of each Party are present or participating. Each Party shall [***] of its respective members' participation in JSC meetings. The chairperson of the JSC shall be responsible for preparing and issuing minutes of each such meeting within fifteen (15) days thereafter. Such minutes shall not be finalized until each Party reviews and confirms the accuracy of such minutes in writing; provided that any minutes shall be deemed approved unless a member of the JSC objects to the accuracy of such minutes within thirty (30) days after the circulation of the minutes by the chairperson of the JSC.

3.4 Joint Steering Committee Decisions. Actions to be taken by the JSC shall be taken only following [***] vote, with each Party having [***]. If the Joint Steering Committee fails to reach [***] on a matter before it for decision for a period in excess of [***], the JSC shall submit the respective positions of the Parties with respect to such matter for discussion in good faith by the Parties’ respective Executive Officers in accordance with Section 14.2. If such individuals are not able to mutually agree upon the resolution to such matter within the timeframe set forth in such Section 14.2, then instead of resolution in accordance with Section 14.3:

(a) [***] with regard to matters relating primarily to the Development, Regulatory Approval, Pricing Approval or Commercialization of Licensed Products in the Field in the [***];

(b) [***] with regard to matters relating primarily to the Development, Regulatory Approval, Pricing Approval or Commercialization of Licensed Products in the Field in the [***]; and

(c) Matters not subject to Sections 3.4(a) or 3.4(b) ([***]) shall be subject to the dispute resolution procedure set forth in Article 14, beginning with the referral of such matters to the mediation as set forth in Section 14.3.

Notwithstanding the foregoing, neither Party may exercise its final decision-making authority to unilaterally:

(i) increase the other Party’s obligations or reduce the other Party’s rights under this Agreement, including any obligation to devote personnel or financial resources to a specific activity or project;
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(ii) [***];

(iii) increase the Joint Development Costs for the other Party except as expressly provided herein;

(iv) determine that the events required for payments have occurred;

(v) determine that it has fulfilled any obligations under this Agreement or that the other Party has breached any obligation under this Agreement;

(vi) unilaterally make a decision that is expressly stated under this Agreement to require the mutual agreement of the Parties; or

(vii) otherwise expand such Party’s rights or reduce such Party’s obligations under this Agreement.

3.5 Joint Development Committee. Within [***] after the Effective Date, the Parties shall establish a Joint Development Committee (or “JDC”) as a subcommittee of the JSC. The JDC shall have an initial term of [***] and [***] terms unless one of the Parties provides written notice to the other Party at least [***]. The JDC shall have only the powers assigned expressly to it in this Section 3.5 and elsewhere in this Agreement, and the JDC shall not have any power to amend, modify or waive compliance with this Agreement. The JDC shall conduct its discussions in good faith with a view to operating to the mutual benefit of the Parties and in furtherance of the successful Development of Licensed Products. The role of the JDC shall be to:

(a) discuss, prepare and approve for submission to the JSC all updates or amendments to the Global Product Development Plan;

(b) oversee the conduct of the Joint Development under this Agreement;

(c) create, implement and review the overall strategy for Development and the design of all clinical trials conducted under the Global Product Development Plan;

(d) oversee the conduct of all clinical trials conducted under the Global Product Development Plan;

(e) coordinate the use of clinical trial sites by the Parties for clinical trials for Licensed Product, whether conducted under the Global Product Development Plan or as Independent Activities;

(f) facilitate the flow of information between the Parties with respect to the Development of the Licensed Product;

(g) discuss the requirements for Regulatory Approval in the Territory and review the regulatory strategy with respect to the Licensed Product;
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(h) facilitate the flow of information between the Parties with respect obtaining Regulatory Approval for the Licensed Product; and

(i) perform such other functions as appropriate to further the purposes of this Agreement, as mutually determined by the Parties.

3.6 Joint Development Committee Membership. Each Party shall initially appoint [***] representatives to the JDC, each of whom will be an officer or employee of such Party and will have sufficient seniority within the applicable Party to make decisions arising within the scope of the JDC’s responsibilities and will have appropriate expertise in clinical development or regulatory matters. The JDC may change its size from [***] by [***] of its members. Each Party may replace its JDC representatives at any time upon written notice to the other Party. The JDC may invite non-members (including consultants and advisors of a Party) who are under an obligation of confidentiality consistent with this Agreement to participate in the discussions and meetings of the JDC, provided that such participants shall have no voting authority at the JDC. The JDC shall have a chairperson. Each Party shall have the right, on an [***] basis, to select from among its JDC representatives a [***]. Such Party shall have the right during such [***]. [***]. The role of the chairperson shall be to convene and preside at meetings of the JDC, to prepare agendas (with due input from the other Party’s representatives), circulate agendas and to ensure the preparation of meeting minutes, but the chairperson shall have no additional powers or rights beyond those held by the other JDC representatives.

3.7 Joint Development Committee Meetings. The JDC shall meet as frequently as required, but in no event less than [***] every [***]. The meetings of the JDC may be held in person or by audio or video conference, with in person meetings taking place at least once per [***] and alternating between the Parties’ business locations or as otherwise decided by the JDC. Meetings of the JDC shall be effective only if at least [***] representatives of each Party are present or participating. Each Party shall [***] of its respective members' participation in JDC meetings. The chairperson of the JDC shall be responsible for preparing and issuing minutes of each such meeting within fifteen (15) days thereafter. Such minutes shall not be finalized until each Party reviews and confirms the accuracy of such minutes in writing; provided that any minutes shall be deemed approved unless a member of the JDC objects to the accuracy of such minutes within thirty (30) days after the circulation of the minutes by the chairperson of the JDC.

3.8 Joint Development Committee Decisions. Actions to be taken by the JDC shall be taken only following [***], with each Party having [***] vote. If the JDC fails to reach [***] on a matter before it for decision for a period in excess of [***], the JDC shall submit the respective positions of the Parties with respect to such matter for resolution by the JSC.

3.9 Joint Commercialization Committee. Within [***] after the Effective Date, the Parties shall establish a Joint Commercialization Committee (or “JCC”) as a subcommittee of the JSC. The JCC shall have an initial term of [***] and shall [***] for successive [***]. The JCC shall have only the powers assigned expressly to it in this

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Section 3.9 and elsewhere in this Agreement, and the JCC shall not have any power to amend, modify or waive compliance with this Agreement. The JCC shall conduct its discussions in good faith with a view to operating to the mutual benefit of the Parties and in furtherance of the successful Commercialization of Licensed Products. The role of the JCC shall be to:

(a) review, discuss and coordinate the Commercialization activities of the Parties with respect to the Licensed Products in the Parties’ respective territories;

(b) develop, update and annually approve a global plan for Commercializing the Licensed Product, which plan shall include the strategy for the Commercialization of the Licensed Product on a worldwide basis, certain shared global Commercialization activities (i.e., [***]), and, subject to mutual written agreement of the Parties, the appropriate allocation of responsibilities and, if applicable, [***] for such activities;

(c) oversee the implementation of the global plans for the branding and Commercialization of the Licensed Product and ensure consistency with the global plan for Commercialization of the Licensed Product;

(d) review and discuss [***] and developments with regards to the Licensed Product, as described in Section 6.5, and establish a strategy for obtaining Pricing Approvals for the Licensed Product;

(e) facilitate the sharing of information between the Parties as necessary to support the Commercialization of the Licensed Product; and

(f) perform such other functions as appropriate to further the purposes of this Agreement, as mutually determined by the Parties.

3.10 Joint Commercialization Committee Membership. Each Party shall initially appoint [***] representatives to the JCC, each of whom will be an officer or employee of such Party and will have sufficient seniority within the applicable Party to make decisions arising within the scope of the JCC’s responsibilities and will have appropriate expertise in clinical development, regulatory, and/or commercial/business matters. The JCC may change its size from [***] by [***] of its members. Each Party may replace its JCC representatives at any time upon written notice to the other Party. The JCC may invite non-members (including consultants and advisors of a Party) who are under an obligation of confidentiality consistent with this Agreement to participate in the discussions and meetings of the JCC, provided that such participants shall have no voting authority at the JCC. The JCC shall have a chairperson. Each Party shall have the right, on an [***] basis, to select from among its JCC representatives [***]. Such Party shall have the right during such [***]. [***]. The role of the chairperson shall be to convene and preside at meetings of the JCC, to prepare agendas (with due input from the other Party’s representatives), circulate agendas and to ensure the preparation of meeting minutes, but the chairperson shall have no additional powers or rights beyond those held by the other JCC representatives.
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3.11 Joint Commercialization Committee Meetings. The JCC shall meet as frequently as required, but in no event less than [***] meeting every [***]. The meetings of the JCC may be held in person or by audio or video conference, with in person meetings taking place at least [***] per [***] and alternating between the Parties’ business locations or as otherwise decided by the JCC. Meetings of the JCC shall be effective only if at least [***] representatives of each Party are present or participating. Each Party shall [***] of its respective members' participation in JCC meetings. The chairperson of the JCC shall be responsible for preparing and issuing minutes of each such meeting within fifteen (15) days thereafter. Such minutes shall not be finalized until each Party reviews and confirms the accuracy of such minutes in writing; provided that any minutes shall be deemed approved unless a member of the JCC objects to the accuracy of such minutes within thirty (30) days after the circulation of the minutes by the chairperson of the JCC.

3.12 Joint Commercialization Committee Decisions. Actions to be taken by the JCC shall be taken only following [***], with each Party having [***] vote. If the JCC fails to reach [***] on a matter before it for decision for a period in excess of [***], the JCC shall submit the respective positions of the Parties with respect to such matter for resolution by the JSC.

3.13 Joint Manufacturing Committee. Within [***] after the Effective Date, the Parties shall establish a Joint Manufacturing Committee (or “JMC”) as a subcommittee of the JSC. The JMC shall have an initial term of [***] and shall [***] for successive [***]. The JMC shall have only the powers assigned expressly to it in this Section 3.13 and elsewhere in this Agreement, and the JMC shall not have any power to amend, modify or waive compliance with this Agreement. The JMC shall conduct its discussions in good faith with a view to operating to the mutual benefit of the Parties and in furtherance of the successful Manufacture, Development and Commercialization of Licensed Products. The role of the JMC shall be to:

(a) oversee the conduct of the Manufacturing of the Licensed Product by or on behalf of SGI and MPI under this Agreement, the Non-Commercial Supply Agreement and the Commercial Supply Agreement;

(b) develop, update and annually approve a global plan for Manufacturing the Licensed Product, which plan shall include the strategy for the Manufacturing of the Licensed Product on a worldwide basis, and may include certain shared global Manufacturing activities (i.e., activities that benefit the Licensed Product in both the SGI Territory and the Licensed Territory, including such activities that relate to further process development, quality control release testing and quality assurance disposition, and inventory management, and, subject to mutual written agreement of the Parties, the appropriate allocation of responsibilities and, if applicable, [***]);

(c) facilitate the sharing of information between the Parties as necessary to support the Manufacturing of the Licensed Product;
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(d) oversee the implementation of the global plans for the Manufacturing of the Licensed Product and the introduction of second sourcing and/or Manufacturing process improvements for the Licensed Product; and

(e) perform such other functions as appropriate to further the purposes of this Agreement, as mutually determined by the Parties.

3.14 Joint Manufacturing Committee Membership. Each Party shall initially appoint [***] representatives to the JMC, each of whom will be an officer or employee of such Party and will have sufficient seniority within the applicable Party to make decisions arising within the scope of the JMC’s responsibilities and will have appropriate expertise in manufacturing matters. The JMC may change its size from [***] by [***] of its members. Each Party may replace its JMC representatives at any time upon written notice to the other Party. The JMC may invite non-members (including consultants and advisors of a Party) who are under an obligation of confidentiality consistent with this Agreement to participate in the discussions and meetings of the JMC, provided that such participants shall have no voting authority at the JMC. The JMC shall have a chairperson. Each Party shall have the right, on an alternating [***]. Such Party shall have the right during such [***]. [***]. The role of the chairperson shall be to convene and preside at meetings of the JMC, to prepare agendas (with due input from the other Party’s representatives), circulate agendas and to ensure the preparation of meeting minutes, but the chairperson shall have no additional powers or rights beyond those held by the other JMC representatives.

3.15 Joint Manufacturing Committee Meetings. The JMC shall meet as frequently as required, but in no event less than [***] meeting every [***]. The meetings of the JMC may be held in person or by audio or video conference, with in person meetings taking place at least [***] per [***] and alternating between the Parties’ business locations or as otherwise decided by the JMC. Meetings of the JMC shall be effective only if at least [***] representatives of each Party are present or participating. Each Party shall [***] of its respective members' participation in JMC meetings. The chairperson of the JMC shall be responsible for preparing and issuing minutes of each such meeting within [***] thereafter. Such minutes shall not be finalized until each Party reviews and confirms the accuracy of such minutes in writing; provided that any minutes shall be deemed approved unless a member of the JMC objects to the accuracy of such minutes within [***] after the circulation of the minutes by the chairperson of the JMC.

3.16 Joint Manufacturing Committee Decisions. Actions to be taken by the JMC shall be taken only following [***], with each Party having [***] vote. If the JMC fails to reach [***] on a matter before it for decision for a period in excess of [***], the JMC shall submit the respective positions of the Parties with respect to such matter for resolution by the JSC.

3.17 [***].

3.18 Working Groups. From time to time, the JDC, JCC and JMC may establish working groups (each, a “Working Group”) to oversee particular projects or activities, and
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each such Working Group shall be constituted and shall operate as the JDC, JCC or JMC, respectively, determines, including with respect to the number and qualification of representatives, frequency of meetings and reporting obligations. Each Working Group shall make decisions only following [***], with each Party having [***] vote. If a Working Group fails to reach [***] on a matter before it for decision for a period in excess of [***], it shall submit the respective positions of the Parties with respect to such matter for resolution by the JDC, JCC or JMC, as applicable. The Parties anticipate that the JDC shall form a Working Group(s) to coordinate clinical and regulatory activities under this Agreement and that the JCC shall form a Working Group to coordinate global branding and commercialization activities under this Agreement

3.19 Alliance Managers. Promptly following the Effective Date, each Party shall designate an individual to facilitate communication and coordination of the Parties’ activities under this Agreement relating to Licensed Products and to provide support and guidance to the JSC (each, an “Alliance Manager”). Each Alliance Manager may also serve as a representative of its respective Party on the JSC.

3.20 Collaboration Guidelines. Subject to the terms of this Agreement, the activities and resources of each Party shall be managed by such Party, acting independently and in its individual capacity. The relationship between SGI and MPI is that of independent contractors and neither Party shall have the power to bind or obligate the other Party in any manner, other than as may be expressly set forth in this Agreement.

ARTICLE 4 

DEVELOPMENT

4.1 Overview; Objectives. The Parties desire and intend to collaborate with respect to the Development of Licensed Products for Regulatory Approval in the Territory, as and to the extent set forth in this Agreement. It is understood and acknowledged by each Party that such Party will participate in the Development of the Licensed Product as set forth in the Global Product Development Plan, and share equally (50/50) the Joint Development Costs incurred in connection therewith, as set forth in, and in accordance with, Section 8.2. The Parties agree at all times to act in good faith and in a cooperative manner to conduct Development, to share (to the extent required under this Agreement) all Information reasonably necessary to facilitate each Party’s performance of its Development obligations hereunder, and to use reasonable efforts to cause its representatives on the JSC to reach consensus on decisions regarding Development. Each Party shall provide the JSC with regular reports detailing its respective Development activities under the Global Product Development Plan and the results thereof. Each Party and its Affiliates shall only conduct Development activities with respect to the Licensed Product (a) in accordance with the Global Product Development Plan or (b) as Independent Activities.
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4.2 Global Product Development Plan and Development Budget.

(a) General. The Parties shall conduct Joint Development of the Licensed Product pursuant to a comprehensive development plan (the “Global Product Development Plan”). Such Global Product Development Plan shall include a detailed budget for all Joint Development activities set forth in the Global Product Development Plan (the “Development Budget”), including the resource allocations by the Parties. The Development Budget shall include, with respect to Joint Development activities:

(i) [***];

(ii) [***]; and

(iii) [***].

(b) Allocation of Joint Development Activities between the Parties. The Global Product Development Plan shall set forth the specific Joint Development activities to be conducted by each Party and the timelines therefor. Except as otherwise agreed by the Parties, the Parties shall, in preparing the Global Product Development Plan (including any updates or amendments thereto), (i) endeavor to take advantage of the respective resources, capabilities and expertise of SGI and MPI; (ii) endeavor to (A) maintain, to the extent reasonably practical and appropriate, continuity in functions and commitments of personnel and physical resources of the Parties, (B) avoid duplication of efforts by the Parties and (C) foster efficient use by the Parties of resources and personnel, consistent with this Agreement and the Global Product Development Plan and Development Budget; and (iii) act in the best interests of the collaboration. The Global Product Development Plan shall specify, for each Development activity (including clinical studies), which Party shall have the lead responsibility for the conduct of such Development activity (such Party, the “Lead Development Party”), provided that [***], and [***]. For the sake of clarity, MPI shall be responsible for the conduct and costs of all Japan Development Activities. The Parties will discuss global Phase 3 Clinical Trials of the Licensed Product in good faith and consider [***] into such clinical trials, and, if they mutually agree to do so, MPI shall be responsible for operational control of such [***] and shall [***] exclusively attributable to the conduct of such [***].

(c) Initial Global Product Development Plan and Development Budget. The Parties have agreed upon an initial Global Product Development Plan covering the initial Development activities under this Agreement (the “Initial Global Product Development Plan”), including an associated Development Budget, which, along with the MPI Independent Activities mutually agreed upon as of the Effective Date, sets forth (i) those non-clinical, clinical, manufacturing and other Developmental activities that the Parties believe, as of the Effective Date, to be necessary for submission and obtaining approval of an NDA for the Licensed Product in the U.S. and an MAA for the Licensed Product in the EU and the Key Countries (other than Japan, except as provided in Section 4.2(b)). The Parties agree that, with respect to those [***] mutually agreed upon as of the Effective Date, and any other [***] for which the Parties mutually agree that [***] shall

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provide services to [***], [***] shall, at [***] reasonable request, assist [***] performance of those [***], for which [***]. Within a reasonable period of time following the end of each [***] during which [***] has provided such assistance, [***] will prepare and deliver to [***] a [***], in a mutually agreed upon format, [***]. [***] shall have [***] after its receipt of [***] report to request additional information related to the [***]. [***] shall make such payment in Dollars to [***] within [***] after its receipt of such report. [***] shall have the right to audit the records of [***] with respect to any such costs in accordance with Section 8.11 of this Agreement.

(d) Updates. On a [***] basis (no later than [***] and [***] of each [***], commencing in [***]), or more often as the Parties deem appropriate, the JSC shall update and amend, as appropriate, the then-current Global Product Development Plan and Development Budget. Such updates and amendments shall reflect any agreed changes, re-prioritization of, or additions to the agreed upon Development activities. Once approved by the JSC, each updated or amended Global Product Development Plan and Development Budget shall become effective and supersede the previous Global Product Development Plan and Development Budget as of the date of such approval or at such other time as decided by the JSC.

4.3 Development Decision-Making. All matters regarding the Joint Development of the Licensed Product under the Global Product Development Plan shall be decided [***] by the JSC, subject to the provisions of Section 3.4.

4.4 Standards of Performance. Each Party shall use Commercially Reasonable Efforts to carry out the tasks assigned to it under the Global Product Development Plan. Should either Party not timely perform activities it is responsible for pursuant to the Global Product Development Plan, the other Party would have the right, if the responsible Party has not begun, or presented to the other Party a reasonable plan to conduct, such activity within [***] after written notice from such other Party, to perform such activities, with the [***] as [***]. Each Party shall provide financial and other support for the Development of the Licensed Product as necessary to achieve the objectives of this Agreement in accordance with the Global Product Development Plan and the Development Budget. Each Party shall conduct its activities and perform all its obligations under this Agreement and under the Global Product Development Plan in good scientific manner and in compliance in all material respects with all applicable Laws.

4.5 Development Costs. Subject to Section 5.2, the Parties will share Joint Development Costs equally in accordance with the reimbursement procedures set forth in Section 8.2. Except as set forth in Section 8.2, each Party shall be responsible for all costs and expenses (internal and external) incurred by it or its Affiliates in the course of performing Development activities with respect to Licensed Product under this Agreement. For the avoidance of doubt, any costs or expenses exclusively attributable to the performance of Japan Development Activities shall be borne solely by MPI, except to the extent expressly agreed by the Parties.

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4.6 Joint Results. All data and results (the “Joint Results”) generated by or resulting from the Global Product Development Plan, whether generated by one or both Parties, shall be owned jointly by the Parties and deemed the Confidential Information of both Parties, and subject to the restrictions on use and disclosure set forth in Article 12, with each Party deemed to be the receiving Party of such Confidential Information for purposes of Article 12.

4.7 Incremental Activities; Independent Activities.

(a) In the event that either MPI or SGI wishes to conduct any [***], in each case with respect to the Licensed Product, that are not included in the then-current Global Product Development Plan [***] (each, an “Incremental Activity”), the proposing Party shall present the proposed design and associated costs of such Incremental Activity to the JSC. If the JSC agrees (including the actual consent of the non-proposing Party) within [***] after the submission of such proposal, the Parties shall amend the Global Product Development Plan to include such Incremental Activity as a [***] activity under the Global Product Development Plan, such Incremental Activity shall be considered Joint Development and the [***].

(b) If the non-proposing Party, through the JSC, [***] as part of the Global Product Development Plan, then the proposing Party shall be [***], subject to Section 4.7(c). The proposing Party shall be [***] responsible for the [***] and the non-proposing Party shall have [***]. Notwithstanding the foregoing, the non-proposing Party will [***]. [***]. The proposing Party shall promptly disclose to the non-proposing Party a summary of such data and a description, in reasonable detail, of the total amounts then-expended by the proposing Party in connection with such Independent Activity, and shall reasonably answer the non-proposing Party’s questions with respect thereto, including, if applicable, providing additional information if reasonably necessary for the non- proposing Party to decide whether to [***].

(c) If the non-proposing Party reasonably and in good faith objects to the conduct of a proposed Incremental Activity on the grounds that (i) [***] or (ii) [***], then the JSC shall discuss the non-proposing Party’s concerns in good faith, and for so long as the non-proposing Party continues to object in good faith on such grounds, the proposing Party shall [***].

4.8 Records, Reports and Information. Each Party shall maintain complete, current and accurate records of all work conducted by it under the Global Product Development Plan, and all data and other Information resulting from such work. Such records shall fully and properly reflect all work done and results achieved in the performance of the Development activities in good scientific manner appropriate for regulatory and patent purposes. Each Party shall document all preclinical studies and clinical trials in formal written study reports according to applicable national and international (e.g., ICH, GCP, GLP, and GMP) guidelines. Each Party shall have the right to review such records maintained by the other Party at reasonable times, upon written request, which shall not exceed [***]. During the Term, on a regular basis, each Party shall present reports at JSC

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meetings on its Joint Development activities, including without limitation any significant formal or informal meetings between such Party and the applicable Regulatory Authorities, at a level of detail to be agreed upon by the JSC; provided, however, that any such presentation shall include at least a summary of the resulting data for all studies conducted by a Party with the Licensed Product under the Global Product Development Plan, and provided further, upon request from the other Party, such Party conducting the studies shall provide the other Party with a copy of written study reports and access to data underlying any such study report, for use consistent with Articles 4 and 5.

4.9 Exchange of Information. Within [***] after the Effective Date, the Parties shall agree upon a written plan for SGI to provide MPI with all SGI Know How necessary or useful for MPI to undertake its activities under the Global Product Development Plan or Develop, Manufacture or Commercialize the Licensed Product for the Licensed Territory, including any final data and study reports and all raw data. Such plan shall thereafter be approved by the JDC. The Parties shall then implement such plan. In addition, SGI shall promptly provide MPI with a hard-copy of or electronic access to all such SGI Know How reasonably requested by MPI at any time after the Effective Date. From time to time throughout the Term, each Party shall provide to the other Party a hard-copy of or electronic access to all Joint Results, including any final data and study reports and all raw data.

ARTICLE 5

REGULATORY MATTERS

5.1 Regulatory Submissions and Regulatory Approvals.

(a) Global Regulatory Plan. The JDC shall develop a global regulatory plan for the Licensed Product that describes the regulatory actions to be taken by each Party under the Global Product Development Plan and how such activities shall be coordinated if necessary (the “Global Regulatory Plan”). On an approximately [***] basis, or more often as the Parties deem appropriate, the JDC shall update and amend, as appropriate, the then-current Global Regulatory Plan. Such updates and amendments shall reflect any agreed changes, re-prioritization of, or additions to the agreed upon regulatory activities for the Licensed Product. The initial and any updated or amended Global Regulatory Plan shall be subject to approval by the JSC. Once approved by the JSC, each updated or amended Global Regulatory Plan shall become effective and supersede the previous Global Regulatory Plan as of the date of such approval or at such other time as decided by the JSC.

(b) Responsibilities.

(i) Except as otherwise expressly provided in the Global Product Development Plan, the Lead Development Party for a particular clinical trial under the Global Product Development Plan shall (A) be responsible for preparing and submitting all Regulatory Materials with respect to such clinical trial and interactions with the relevant Regulatory Authorities and institutional review boards with respect thereto, (B) be

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responsible for the preparation of the final reports of such clinical trial, and (C) provide to the other Party copies of such reports in a format reasonably acceptable to the other Party, and other information relating to such clinical trial reasonably necessary for such other Party to seek Regulatory Approval or Pricing Approval for the Licensed Product in such other Party’s territory.

(ii) The Party conducting an Independent Activity shall be responsible for preparing and submitting all Regulatory Materials with respect to such activities and interactions with the relevant Regulatory Authorities and institutional review boards with respect thereto.

(iii) In addition, each Party shall assist the other Party in preparing Regulatory Materials for such other Party’s territory (to the extent based on such Party’s Regulatory Materials, such Party’s or its contractors’ activities with respect to the Licensed Product, or Joint Results, to the extent the relevant information is in such Party’s possession). [***]. To the extent that the Regulatory Materials being prepared by a Party will form the basis for the Regulatory Materials to be submitted by the other Party to Regulatory Authorities in such other Party’s territory (which may include non-clinical information and CMC information), the Party preparing such Regulatory Materials shall permit the other Party the right to review and comment, in a timely manner, on such Regulatory Materials and the Parties shall use reasonable efforts to ensure that such Regulatory Materials are sufficient for submission in each Party’s territory.

(iv) Except as provided in Sections 5.1(b)(i), (ii) or (iii) or Section 5.6(c) or as otherwise agreed by the Parties:

(1) MPI shall be solely responsible for preparing any and all Regulatory Materials to seek Regulatory Approval or Pricing Approval for the Licensed Product in the Licensed Territory and for submitting, and shall own, such Regulatory Materials in the Licensed Territory, consistent with the Global Regulatory Plan or pursuant to the MPI Independent Activities, and shall be solely responsible for interactions with the relevant Regulatory Authorities with respect thereto. SGI shall not submit any Regulatory Materials or seek Regulatory Approvals or Pricing Approvals for the Licensed Product in the Field in the Licensed Territory without the prior written consent of MPI.

(2) SGI shall be solely responsible for preparing any and all Regulatory Materials to seek Regulatory Approval or Pricing Approval for the Licensed Product in the SGI Territory and for submitting, and shall own, such Regulatory Materials in the SGI Territory, consistent with the Global Regulatory Plan or pursuant to the SGI Independent Activities, and shall be solely responsible for interactions with the relevant Regulatory Authorities with respect thereto. MPI shall not submit any Regulatory Materials or seek Regulatory Approvals or Pricing Approvals for the Licensed Product in the Field in the SGI Territory without the prior written consent of SGI.

(c) Rights of Reference. Each Party hereby grants to the other Party a right of reference to all Regulatory Materials submitted by such Party in its respective territory
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for the Licensed Product, subject to the following limitations. The right of reference granted to SGI herein shall be solely for the purpose of SGI, its Affiliates or any Third Party sublicensees of SGI (i) obtaining Regulatory Approvals or Pricing Approvals in the SGI Territory for the Licensed Product, (ii) conducting activities (including conducting clinical trials) assigned to SGI under the Global Product Development Plan or (iii) conducting SGI Independent Activity. The right of reference granted to MPI herein shall be solely for the purpose of MPI, its Affiliates or any Third Party sublicensees of MPI (A) obtaining Regulatory Approvals or Pricing Approvals in the Licensed Territory for the Licensed Product, (B) conducting activities (including conducting clinical trials) assigned to MPI under the Global Product Development Plan or (C) conducting MPI Independent Activity. The rights of reference granted to a Party hereunder shall not include any portion of the other Party’s Regulatory Materials that is supported by Independent Activities that [***]. Upon request, each Party will furnish the other with an electronic copy or electronic access to and a hard copy of its Regulatory Materials for such purposes.

(d) Reporting and Review. Each Party shall keep the other Party reasonably and regularly informed of the preparation of all Regulatory Materials, Regulatory Authority review of Regulatory Materials, meetings with Regulatory Authorities, and Regulatory Approvals and Pricing Approvals for the Licensed Products, in each case in such Party’s territory, pursuant to procedures to be developed by the JSC.

5.2 Regulatory Costs. Each Party shall be responsible for all costs and expenses of preparing, maintaining, formatting, and submitting Regulatory Materials for Licensed Products in its respective territory and for all other costs and expenses in connection with seeking and maintaining Regulatory Approval and Pricing Approval for Licensed Products in its respective territory, except for those regulatory items (A) specifically set forth in the Global Product Development Plan and included in the Development Budget as to which the other Party explicitly agrees to share the costs or (B) conducted by the other Party through its Independent Activities.

5.3 MPI’s Performance. MPI shall use Commercially Reasonable Efforts to prepare and submit the appropriate Regulatory Materials for Licensed Products in the Licensed Territory, as determined on a country-by-country basis, and to seek to obtain Regulatory Approvals (and, if applicable, Pricing Approvals) for Licensed Products in the Licensed Territory, as determined on a country-by-country basis. [***]:

(a) [***], and thereafter use Commercially Reasonable Efforts to [***] unless (i) [***] or (ii) [***] (a),[***];

(b) [***];

(a) [***] and [***]; and

(b) [***].
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5.4 Communications. Except as may be required by applicable Laws, SGI shall not communicate regarding any Licensed Product with any Regulatory Authority having jurisdiction in the Licensed Territory unless necessary to fulfill its obligations pursuant to the Global Product Development Plan as set forth in Section 5.1(b) above or explicitly requested or permitted in writing to do so by MPI or as necessary to perform SGI Independent Activities, or unless so ordered by such Regulatory Authority in the Licensed Territory, in which case SGI shall provide promptly to MPI notice of such order. Except as may be required by applicable Laws, MPI shall not communicate regarding any Licensed Product with any Regulatory Authority having jurisdiction in the SGI Territory unless necessary to fulfill its obligations pursuant to the Global Product Development Plan as set forth in Section 5.1(b) above or explicitly requested or permitted in writing to do so by SGI or as necessary to perform MPI Independent Activities, or unless so ordered by such Regulatory Authority, in which case MPI shall provide promptly to SGI notice of such order.

5.5 Pharmacovigilance Agreement. Details regarding the management of information of adverse events related to the clinical development and the use of the Licensed Product in the Licensed Territory and the SGI Territory will be delineated in a separate pharmacovigilance agreement that shall be agreed to by the Parties prior to the earlier of (a) Commercialization of the Licensed Product in any country in the Territory or (b) the preparation of any Regulatory Materials by MPI (the “Pharmacovigilance Agreement”). Each Party will be primarily responsible for submission of all required reports with respect to adverse events where such Party is obligated to do so under applicable Law. As of the Effective Date, the Parties acknowledge SGI maintains the global safety database for the Licensed Product. The Parties shall discuss which Party should maintains the database and, if the Parties mutually agree that such database shall be maintained by MPI, the Parties shall cooperate to transition such database to MPI. The maintaining [***] included in such database.

5.6 Regulatory Authority Communications Received by a Party.

(a) General. Each Party shall keep the other Party informed, in a timely manner of notification, of any action by, or notification or other information which it receives (directly or indirectly) from, any Regulatory Authority in such Party’s territory (whether before or after receipt of MAA or NDA approval) which: (i) raises any material concerns regarding the safety or efficacy of the Licensed Product; (ii) indicates or suggests a potential material liability of either Party to Third Parties in connection with the Licensed Product; (iii) is reasonably likely to lead to (A) a delay of planned MAA or NDA approval, (B) the imposition of Regulatory Approval requirements beyond those planned, or (C) recall or market withdrawal of the Licensed Product; or (iv) relates to expedited and periodic reports of adverse events with respect to the Licensed Product, or Product Complaints, and which may have a material impact on Regulatory Approval or the Commercialization of the Licensed Product. The other Party will fully cooperate with and assist such Party in complying with regulatory obligations and communications, including by providing to such Party, within [***] after a request (unless sooner required by the relevant Regulatory Authority), such information and documentation in the other Party’s possession as may

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be necessary or helpful for the Party to prepare a response to an inquiry from a Regulatory Authority. If a Party is required to respond to any Regulatory Authority in the other Party’s territory, such Party shall use Commercially Reasonable Efforts to seek the input and approval of the other Party before responding. Each Party shall also provide the other Party in a timely manner with a copy of all correspondence received from a Regulatory Authority specifically regarding the matters referred to above.

(b) Prior Review. Each Party shall provide to the other, a reasonable time prior to submission or promptly after receipt, any material Regulatory Materials. The Party submitting any such material Regulatory Materials shall consider in good faith any timely comments provided by such other party. The JDC or one of its working groups shall determine appropriate timeframes and mechanisms for such coordination and review.

(c) Interaction with Regulatory Authorities. Each Party shall be responsible for the scheduling, conduct and preparation of materials for meetings, interactions or communications with Regulatory Authorities in its territory, subject to Section 5.1(b)(i). Each Party shall [***] notify the other Party of any meeting (whether in person or by conference call) requested or scheduled with, and shall promptly provide to the other any communications sent to or from, the FDA, EMEA, Health Canada or such other Regulatory Authorities reasonably requested by a Party. The other Party may, on reasonable prior notice to the first Party, have no more than [***] representatives participate in any such meeting. In addition, the other Party shall send relevant subject matter experts to any such meeting if requested by the first Party. In addition, each Party shall assist such other Party in answering any questions or issues from, and shall provide any data requested by or required for Regulatory Materials to be prepared and submitted by such other Party with Regulatory Authorities or other Governmental Authorities in such other Party’s territory, including, as applicable, such questions or issues regarding Manufacturing.

(d) Regulatory Non-Compliance. In addition to its obligations under Section 5.5 and 5.6(a), each Party shall disclose to the other Party any information pertaining to notices from Regulatory Authorities in the Territory of non-compliance with applicable Laws in connection with the Licensed Product including, without limitation, receipt of a warning letter or other notice of alleged non- compliance from any Regulatory Authority relating to the Licensed Product.

5.7 Regulatory Actions.

(a) Audit. If a Regulatory Authority desires to conduct an inspection or audit of a Party’s facility or a facility under contract with such Party with regard to the Licensed Product or any data relating to the Licensed Product obtained by or on behalf of a Party, such Party (i) shall promptly notify the other Party of such inspection or audit, (ii) shall cooperate and cause the contract facility to cooperate with such Regulatory Authority during such inspection or audit, (iii) shall immediately update the other Party during (in the case of multi-day inspections or audits) and following such inspection or audit of any information relevant to the Licensed Product, (iv) shall immediately provide to the other Party the inspection or audit observations of such Regulatory Authority relevant to the

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Licensed Product, (v) shall prepare the response to any such observations, (vi) shall provide a copy of such planned response to the other Party, and (vii) shall conform its activities under this Agreement to any commitments made in such a response, except to the extent it believes in good faith that such commitments violate applicable Laws. Both Parties agree to use Commercially Reasonable Efforts to cause their Third Party sublicensees to accept an audit mechanism substantially similar to the mechanism described above in this Section 5.7(a).

(b) Recalls and Voluntary Withdrawals. The Parties shall exchange their internal standard operating procedures (“SOPs”) for conducting product recalls reasonably in advance of the First Commercial Sale of any Licensed Product in the Territory, and shall discuss and resolve in writing any conflicts between such SOPs and issues relating thereto promptly after such exchange. If either Party becomes aware of information relating to any Licensed Product that indicates that a unit or batch of such Licensed Product may not conform to the specifications therefor, or that potential adulteration, misbranding, and/or other issues have arisen that relate to the safety or efficacy of Licensed Products, it shall promptly so notify the other Party. The Party having the right to control such recall pursuant to this Section 5.7(b) may, at its sole discretion, take appropriate courses of action, which shall be consistent with the internal SOP of such Party; provided however that such controlling Party shall promptly notify the other Party of any recall action being considered, and where practicable, consider the views of the non-controlling Party prior to taking any recall action. MPI shall have the right, [***] to control any recalls, field corrections, field alerts or withdrawals of any Licensed Product in the Licensed Territory. SGI shall have the right, [***], to control all recalls, field corrections, field alerts and withdrawals of any Licensed Product in the SGI Territory. MPI and SGI shall maintain complete and accurate records of any recall of Licensed Product according to its then current SOPs for such periods as may be required by applicable Laws, but in no event for less than [***].

ARTICLE 6

COMMERCIALIZATION

6.1 Commercialization in the Licensed Territory. As between the Parties, MPI shall have sole responsibility for Commercializing all Licensed Products in the Licensed Territory, as provided in this Article 6, and MPI shall bear all of the costs and expenses incurred in connection with all such Commercialization activities, unless otherwise expressly agreed by the Parties.

6.2 Commercialization in the SGI Territory. As between the Parties, SGI shall have sole responsibility for Commercializing all Licensed Products in the SGI Territory, as provided in this Article 6, and SGI shall bear all of the costs and expenses incurred in connection with all such Commercialization activities, unless otherwise expressly agreed by the Parties.
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6.3 MPI’s Performance.

(a) MPI shall use Commercially Reasonable Efforts to Commercialize the Licensed Product in the Licensed Territory, as determined on a country-by-country basis, for each indication for which it receives Regulatory Approval of an MAA and, if Commercialization of Licensed Product is not reasonably practicable prior to receipt of Pricing Approval, Pricing Approval. Without limiting the generality of the foregoing but subject to Section 6.3(b), during each of the [***], MPI, itself or through its Affiliates, sublicensees and Distributors, [***]:

(i) [***];

(ii) [***]; and

(iii) [***].

As used herein, “[***] of (i) [***], or (ii) [***]. As used herein, “[***].

(b) The Parties will enter into good faith negotiations to [***]. [***].

(c) At least once per [***], in addition to MPI’s obligations under Section 6.4 and the [***] JCC meetings arranged between the Parties, MPI will reasonably inform the JSC or the JCC regarding the Commercialization of the Licensed Product throughout the Licensed Territory by MPI, its Affiliates and sublicensees. Such reports submitted by MPI to the JSC or JCC shall cover subject matter at a level of detail reasonably sufficient to enable SGI to determine MPI’s compliance with its diligence obligations pursuant to this Section 6.3.

6.4 Reports. Each Party shall provide to the JCC quarterly sales reports, including, without limitation, specific marketing efforts and planning and sales execution. The JCC shall update the JSC at each meeting regarding significant Commercialization activities for Licensed Products in the Territory, including a [***] for the following [***] sales of such Licensed Products.

6.5 Coordination of Marketing Activities. The JCC and/or the JSC, as appropriate, shall be responsible for coordinating the Commercialization of Licensed Product throughout the Territory (i.e., by MPI for the Licensed Territory and by SGI for the SGI Territory) and for approving any Commercialization activities that relate to, or require activities in, or would reasonably be expected to materially impact, the other Party’s territory. Unless prohibited by Law, the Parties agree to [***]. Notwithstanding the agreement to [***].

6.6 Compliance. Each Party shall comply in all material respects with all applicable Laws in Commercializing Licensed Products in the Territory under this Agreement.
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6.7 Use of Distributors. Subject to Section 2.5(a), each Party shall have the right to engage Distributors to distribute Licensed Products in particular countries within its territory in accordance, on a country-by-country basis, with such Party’s standard practices for selecting Distributors for its other products having market potential comparable to that of Licensed Products in such country.

ARTICLE 7

MANUFACTURE AND SUPPLY

7.1 Coordination. The provisions of this Article 7 shall apply unless otherwise mutually agreed by the Parties.

7.2 Non-Commercial Supply of Licensed Product.

(a) For Joint Development. From the Effective Date and continuing until at least [***] following [***] in a first country in the Licensed Territory (the “SGI Manufacturing Period” and, the [***] of such First Commercial Sale, the (“[***]”), SGI shall, itself or through one or more Third Party contract manufacturers, supply in a timely fashion all quantities of the Licensed Product as required by the Parties to carry out all Development activities (including pre-clinical and clinical) for the Licensed Product pursuant to the Global Product Development Plan, on the terms set forth in the Non- Commercial Supply Agreement. Such quantities of the Licensed Product and the schedule of such supply shall be confirmed by the JSC and consistent with the Initial Global Product Development Plan and subsequent Global Product Development Plans. The Cost of Goods Sold of such Licensed Product shall be shared by the Parties as a Joint Development Cost; provided, however, that MPI shall pay for any such preclinical or clinical supply of Licensed Product it uses for Japan Development Activities [***]. [***] prior written notice to MPI, provided that [***].

(b) For Independent Development. During the SGI Manufacturing Period, SGI shall, itself or through one or more Third Party contract manufacturers, supply to MPI quantities of the Licensed Product reasonably required by MPI to carry out MPI Independent Activities, on the terms set forth in the Non-Commercial Supply Agreement. [***].

7.3 Non-Commercial Supply Agreement. Forecasting and ordering procedures, Licensed Product specifications, and other operational matters relating to the supply of Licensed Product under Sections 7.2(a) and 7.2(b) shall be set forth in a manufacturing and supply agreement mutually agreed upon by the Parties not later than ninety (90) days after the Effective Date (the “Non-Commercial Supply Agreement”) and shall include the provisions set forth in Exhibit C and such other customary terms, including lead times, delivery, rolling forecasts and purchase orders. In connection with such Non-Commercial Supply Agreement, the Parties shall enter into a quality agreement governing the agreed upon specifications and other technical aspects of supply of the Licensed Product for non- Commercial activities by the Parties (the “Non-Commercial Quality Agreement”).
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7.4 Commercial Supply of Licensed Product. [***], the Parties shall negotiate in good faith and enter into a manufacturing and supply agreement (the “Commercial Supply Agreement”) under which SGI will agree to supply during the SGI Manufacturing Period, itself or through one or more Third Party contract manufacturers, Licensed Product to MPI for Commercialization in the Licensed Territory. Such Commercial Supply Agreement shall contain the provisions set forth in Exhibit C and such other customary terms governing such manufacturing and supply relationships, and shall provide that such Licensed Product [***]. Included as part of such Commercial Supply Agreement, the Parties shall enter into a quality agreement governing the agreed upon specifications and other technical aspects of supply of the Licensed Product for Commercialization by the Parties (the “Commercial Quality Agreement”). For the sake of clarity, [***].

7.5 SGI Supply Agreements. As of the Effective Date, SGI has made arrangements for the Manufacture of the Licensed Product for the Licensed Territory through Third Party contract manufacturer(s) and/or SGI’s Affiliates. Within a reasonable period of time prior to entering into any material future supply agreement during the SGI Manufacturing Period with a Third Party contract manufacturer relating to the Licensed Product, [***]. In addition, during the [***], it being understood that SGI shall be the [***]. During the SGI Manufacturing Period, [***].

7.6 Manufacture of Licensed Products by MPI.

(a) Following the end of the SGI Manufacturing Period, [***] (i) for use by the MPI for its Joint Development activities and (ii) for use by MPI and its Affiliates, and their respective sublicensees, for MPI Independent Activities and for Commercialization in the Licensed Territory; provided that SGI [***]. Subject to any limitations set forth in the Commercial Supply Agreement or any existing supply agreements between SGI and Third Parties for the supply of Licensed Product for Commercial purposes under Section 7.4 above, MPI may, upon not less than [***] prior written notice to SGI during the SGI Manufacturing Period, manufacture Licensed Product (or certain portions thereof) for Commercialization in the Licensed Territory or for MPI Independent Activities or for MPI’s Joint Development activities (or have such Licensed Product manufactured for such purpose by a Third Party manufacturer(s) identified by MPI) at the end of such notice period. Commencing on the earliest of (i) [***], (ii) [***] or (iii) [***]. [***]. [***].

(b) Upon request by MPI, SGI shall transfer, or use commercially reasonable efforts to cause its Third Party manufacturer(s) to transfer, to MPI (or MPI Affiliate(s) or Third Party manufacturer(s) identified by MPI) the technology and other information in SGI’s possession or control reasonably necessary to Manufacture Licensed Product, subject to reimbursement of SGI’s and/or its Third Party manufacturers’ reasonable costs therefor.

(c) Following any transfer of Manufacturing rights and responsibilities to MPI hereunder, MPI shall consider in good faith any request by SGI to provide SGI with a back-up supply of Licensed Product for the SGI Territory if requested by SGI. All supplies of

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Licensed Product by MPI shall be sold to SGI at [***], but SGI shall [***] of any changes to the specifications for the SGI Territory.

(d) Following any transfer of Manufacturing rights and responsibilities to MPI hereunder, SGI shall consider in good faith any request by MPI to provide MPI with a back-up supply of Licensed Product for the Licensed Territory if requested by MPI. All such supplies of Licensed Product by SGI shall be sold to MPI at [***], but MPI shall [***] of any changes to the specifications for the Licensed Territory.

7.7 Second or Additional Source. Each Party has the right at any time (notwithstanding any implications to the contrary hereunder) to establish a second or additional source (i.e., in addition to SGI’s Third Party manufacturers existing as of the Effective Date) for the supply of Licensed Product or any component thereof at such Party’s expense. To the extent that the Parties agree to jointly establish a second or additional source to one or more of SGI’s Third Party manufacturers existing as of the Effective Date, the relevant activities with respect to establishing such second or additional source shall be included in the Global Product Development Plan and [***].

7.8 Records; Audit Rights. Each Party will maintain complete and accurate records in sufficient detail to permit the other Party to confirm the accuracy of the calculation of Cost of Goods Sold or Supply Price under this Agreement. Upon reasonable prior notice, such records shall be available during regular business hours for a period of [***] from the creation of individual records for examination at the [***], and not more often than once each [***], by an independent certified public accountant selected by the auditing Party and reasonably acceptable to the other Party subject to the inspection, for the sole purpose of verifying the accuracy of the Cost of Goods Sold or Supply Price for any Licensed Product supplied pursuant to this Agreement. Any such auditor shall not disclose the audited Party’s Confidential Information, except to the extent such disclosure is necessary to verify the accuracy of the calculation of Cost of Goods Sold or Supply Price. Any amounts shown to have been overpaid by a Party shall be [***] within [***] from the accountant’s report, or shall be [***] to such Party for Licensed Product. The auditing Party shall [***] of such audit unless such audit [***] of more than [***], in which case the audited Party [***].

ARTICLE 8

COMPENSATION

8.1 Upfront Payment. [***], MPI shall pay to SGI a non-refundable, non-creditable upfront payment of $60 million by wire transfer of immediately available funds into an account designated by SGI.

8.2 Reimbursement of Shared Joint Development Costs.

(a) Within [***] following the end of each [***] beginning from the Effective Date, each Party will prepare and deliver to the other Party a [***] report, in a mutually agreed upon format, detailing its Joint Development Costs incurred during such period (or
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estimates thereof, to the extent necessary). Each Party shall have [***] after its receipt of the other Party’s quarterly report to request additional information related to the Joint Development Costs included in such quarterly report.

(b) Within [***] after the end of the applicable [***], SGI will prepare a composite report that: (i) summarizes the Joint Development Costs incurred by each Party for such Calendar Quarter, (ii) calculates the costs for which each Party is responsible (the “Cost Allocation”), which shall amount to fifty percent (50%) of the total Joint Development Costs incurred by the Parties for such [***], subject to Section 8.2(d); and (iii) computes the amount in Dollars due to MPI or SGI, as the case may be, for such [***] based upon the Parties’ respective Cost Allocations. If a Party owes any amount to the other Party for a particular [***], then such Party shall make such payment in Dollars to the other Party within [***] after its receipt or provision of the applicable composite report, as the case may be. Each Party shall have the right to audit the records of the other Party with respect to any purported Joint Development Costs included in such reports, in accordance with Section 8.11 of this Agreement.

(c) To the extent that any such Joint Development Costs reported pursuant to Section 8.2(a) were estimated, the relevant Party shall provide actual cost information with the next [***] report, and the provisions of Section 8.2(b) shall apply to properly allocate between the Parties any amount by which such actual costs exceeded or were less than the estimated costs.

(d) For any [***] period described in Section 4.2(d), SGI and MPI shall each be permitted to recover Joint Development Costs with respect to such Party’s Development activities for such [***] period up to a maximum of [***] of the amounts allocated to such Development activities in the Development Budget. Notwithstanding the foregoing, either Party shall be entitled to recover any [***], which approval may be granted either in advance of such costs being incurred or retroactively.

8.3 Development Milestone Payments. MPI shall make the following milestone payments to SGI within [***] after the achievement of each of the following milestone events by MPI or, with respect to the [***], SGI, or, as applicable, their respective Affiliates or sublicensees. Each such milestone payment shall be made by wire transfer of immediately available funds into an account designated by SGI. Each such milestone payment shall be [***].

(a) [***]. The milestone payments listed in the table below shall be payable to SGI for the [***] to achieve the designated milestone event with respect to relapsed/refractory Hodgkin lymphoma.
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	Milestone Event
	Milestone Payment

	Receipt of notice of acceptance of submission of first MAA with EME
	$5 million

	Approval for marketing in the third (3rd) Key Country in the Licensed Territo
	[ *** ]

	Approval of MAA by EMEA
	[ *** ]

	Approval of MAA by and receipt of Pricing Approval from MH
	[ *** ]

(b) [***]. The milestone payments listed in the table below shall be payable to SGI for the [***] to achieve the designated milestone event with respect to [***], including anaplastic large cell lymphoma.

						
	Milestone Event
	Milestone Payment

	Approval for marketing in the third (3rd) Key Country in the Licensed Territo
	$1 million

	Approval of MAA by EMEA
	[ *** ]

	Approval of MAA by and receipt of Pricing Approval from MH
	[ *** ]

(c) [***]. The milestone payments listed in the table below shall be payable to SGI for the first Licensed Product to achieve the designated milestone event with respect to frontline Hodgkin lymphoma.

						
	Milestone Event
	Milestone Payment

	[***]
	[***]

	Approval of MAA by EMEA
	$30 million

	Approval of MAA by and receipt of Pricing Approval from MH
	$10 million

(d) [***]. The milestone payments listed in the table below shall be payable to SGI for the [***] to achieve the designated milestone event with respect to [***]. Notwithstanding the foregoing,with respect to each such milestone payment, in the event that MPI reasonably determines in good faith, and shares its determination with SGI at least [***] before the reasonably anticipated achievement of the relevant milestone event, [***]. If SGI disputes such [***]. If SGI does not provide such notice and [***].

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	Milestone Event
	Milestone Payment

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

(e) [***]. The milestone payments listed in the table below shall be payable to SGI for the [***] to achieve the designated milestone event with respect to the [***]. Notwithstanding the foregoing, with respect to each such milestone payment, in the event that [***]. If SGI disputes such [***]. If SGI does not provide such notice and [***].

						
	Milestone Event
	Milestone Payment

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

(f) Clarifications. For clarity, in the event that MPI, or its Affiliates or sublicensees submits an MAA for a Licensed Product with EMEA for a [***] or a [***], and at such time, [***]. [***]. For further clarity, for purpose of this Section 8.3, [***] of (i) [***] and (ii) [***]. For further clarity, each milestone payment specified in Sections 8.3(a) through (e) shall be [***].

8.4 Sales Milestone Payments. MPI shall make the following [***], [***] sales milestone payments to SGI within [***] after the end of the Calendar Year in which aggregated annual Net Sales of the Licensed Product in such Calendar Year in all countries in the Licensed Territory reach the following thresholds for the first time:

						
	Annual Net Sales Threshold
	Sales Milestone Payment

	$100 million
	$5 million

	$200 million
	$20 million

	[***]
	[***]

[***]. [***].

8.5 Royalties.

(a) Royalty Rates. During the Royalty Term, MPI shall pay to SGI a royalty at the following royalty rates, on aggregate Net Sales of the Licensed Product in a Calendar Year by MPI, its Affiliates and its sublicensees in the Licensed Territory:
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	Calendar Year Net Sales of Licensed Product in the Licensed Territory
	Royalty Rate for Net Sale

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

(b) Clarifications. For the avoidance of doubt, the incremental royalty percentage rates set forth in Section 8.5(a) shall [***]. The obligation to pay royalties shall be imposed [***].

(c) Adjustments Related to Generic Products If, on a country-by-country basis, sales in the Field on a [***] basis of Generic Products in such country [***] of all Generic Products and Licensed Products in such country as measured at the end of a [***], then any royalties due under Section 8.5(a) shall be [***], starting with the [***], by:

(i) [***]; and

(ii) [***];

provided, however, that in no event shall the royalties due under Section 8.5(a) be [***].

Sales levels for Generic Products shall be based on information provided by a qualified market research firm selected by mutual agreement of the Parties (collectively, the “Generic Market Data”). Notwithstanding anything to the contrary, where Generic Market Data is not available on a country-by-country basis for a country but Generic Market Data (x) is available on a regional basis for the geographic region containing such country, such available regional sales data across all countries in the applicable geographical region (e.g., Europe, South America, Africa, Asia) shall be used in the determination of the volume of sales of Generic Products in such country or (y) is available for the major market country(ies) in such geographical region accounting for at least [***] of the total market for Generic Products across such geographic region, the Generic Market Data for the applicable major market countries will be used to determine the volume of sales for all countries within the applicable geographical region. Where no Generic Market Data is available for a particular geographical region, the Parties will determine the level of sales of Generic Products in such region in good faith based on the totality of the information then available for global sales of Licensed Products and Generic Products.
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(d) Third Party Royalties. To the extent that MPI pays, pursuant to Section 8.6, amounts due under an Existing Third Party Agreement or Future Third Party Agreement, MPI shall be entitled to [***]; provided that such [***]. MPI may [***].

(e) Limitation on [***]. Notwithstanding Sections 8.5(c) and 8.5(d) above, in no event shall the [***] of the amounts set forth in Section 8.5(a). For example, if, [***]. [***].

(f) Royalty Term. Royalties payable under this Section 8.5 with respect to a particular Licensed Product in a particular country in the Licensed Territory, will commence on the Effective Date and will continue for so long as such Licensed Product is sold in such country (such period, the “Royalty Term”).

(g) Royalty Payments and Reports. MPI shall calculate all royalty amounts payable to SGI pursuant to this Section 8.5 with respect to Net Sales at the end of each Calendar Quarter, which amounts shall be converted to Dollars at such time in accordance with Section 8.9. MPI shall provide such calculation to SGI within twenty (20) Business Days after the end of each Calendar Quarter. Each such calculation shall include a statement of the amount of gross sales of the Licensed Products in the Licensed Territory during the applicable Calendar Quarter, an itemized calculation of Net Sales in the Licensed Territory showing deductions, to the extent practicable, provided for in the definition of “Net Sales” during such Calendar Quarter, and a calculation of the amount of royalty payment due on such sales for such Calendar Quarter. MPI shall require its sublicensees to account for their Net Sales and to provide such reports with respect thereto as if such sales were made by MPI. SGI shall promptly invoice MPI after receipt of such report and MPI shall pay such invoice within twenty (20) Business Days after receipt of such invoice.

8.6 Third Party Royalties. Subject to Section 8.5(d), [***], and all [***], in each case to the extent due as a result of Development, use, manufacture, importation, sale, or offering for sale of the Licensed Product in the Licensed Territory by MPI, its Affiliates, or their respective sublicensees. For purposes of the calculation of [***], MPI shall reasonably estimate the amount of such payments pursuant to any such agreement to which MPI is not a party, shall report such calculation in the report it provides pursuant to Section 8.5(g), [***]. SGI shall promptly confirm or update such calculation, along with reasonable detail to support any update thereof, and (a) [***], and (b) [***]. With respect to any tiered royalties based on sales of Licensed Product in the Licensed Territory and the SGI Territory, each Party shall pay [***].

8.7 Taxes.

(a) Cooperation and Coordination. The Parties acknowledge and agree that it is their mutual objective and intent to appropriately minimize, to the extent feasible and legal, the Taxes payable with respect to their collaborative efforts under this Agreement and that they shall use all commercially reasonable efforts to cooperate and coordinate with each other to achieve such objective.
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(b) Payment of Taxes. A Party receiving a payment pursuant to this Article 8 shall pay any and all Taxes levied on such payment. If applicable Laws require that Taxes be deducted and withheld from a payment made pursuant to this Article 8, the remitting Party shall (i) deduct those Taxes from the payment; (ii) pay the Taxes to the proper taxing authority; and (iii) send evidence of the obligation together with proof of payment to the other Party within [***] following that payment.

(c) Assessment. Either Party may, at its own expense, protest any assessment, proposed assessment, or other claim by any Governmental Authority for any additional amount of Taxes, interest or penalties or seek a refund of such amounts paid if permitted to do so by applicable Law. The Parties shall cooperate with each other in any protest by providing records and such additional information as may reasonably be necessary for a Party to pursue such protest.

8.8 Blocked Currency. In each country where the local currency is blocked and cannot be removed from the country, royalties accrued on Net Sales in that country shall be paid to SGI in the equivalent amount in Dollars unless the Parties otherwise agree.

8.9 Foreign Exchange. The rate of exchange to be used in converting a foreign currency into Dollars for the purpose of computing any payments hereunder shall be the average month end rates of exchange for the applicable foreign currency published in [***].

8.10 Late Payments. If a Party does not receive payment of any sum due to it on or before the due date, [***] shall thereafter accrue on the sum due to such Party until the date of payment at the per annum rate of [***] over the then-current prime rate quoted by Citibank in New York City or the maximum rate allowable by applicable Law, whichever is lower.

8.11 Records; Audits. MPI will maintain complete and accurate records in sufficient detail to permit SGI to confirm the accuracy of the calculation of royalty payments under this Agreement. Each Party will maintain complete and accurate records in sufficient detail to permit the other Party to confirm the accuracy of all Joint Development Costs and, except as provided in Section 7.8, any other costs shared by the Parties or other payments made by one Party to the other under this Agreement. Upon reasonable prior notice, such records shall be available during regular business hours for a period of [***] from the creation of individual records for examination [***] the Party requesting the audit (the “Auditing Party”), and not more often than [***], by an independent certified public accountant selected by the Auditing Party and reasonably acceptable to the Party being audited (the “Audited Party”), for the sole purpose of verifying the accuracy of the financial reports furnished by the Audited Party pursuant to this Agreement. Any such auditor shall not disclose the Audited Party’s Confidential Information, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by that Party or the amount of payments due by MPI or SGI under this Agreement. Any amounts shown to be [***] within thirty (30) days from the accountant’s report, plus interest (as set forth in Section 8.9) from the original due date. Any amounts shown to have been [***] within sixty (60) days from the accountant’s report. The Auditing Party shall bear the full cost of such audit

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unless such audit discloses an underpayment of the amount actually owed during the applicable [***] of more than [***], in which case the Audited Party shall [***].

8.12 Calendar Days. Any payment which becomes due on any day which is not a Business Day shall instead be due on the next Business Day.

ARTICLE 9

INTELLECTUAL PROPERTY MATTERS

9.1 Ownership of Inventions. Each Party shall own any inventions made solely by its or its Affiliates’ employees, agents, or independent contractors in the course of conducting its activities under this Agreement, together with all intellectual property rights therein (“Sole Inventions”). The Parties shall jointly own any inventions that are made jointly by employees, agents, or independent contractors of SGI or its Affiliates, on the one hand, and MPI or its Affiliates, on the other hand, in the course of performing activities under this Agreement, together with all intellectual property rights therein (“Joint Inventions”). Notwithstanding the above, if any Sole Invention made by [***] or Joint Invention relates primarily to or is derived directly from the [***] (but not derived from the Licensed Product more generally) (a "[***]”), (i) [***] shall, and hereby does, assign to [***] its interest in such [***] (which shall thereafter be [***]), (ii) subject to Section 9.3, [***] shall have the sole right and authority to prepare, file, prosecute and maintain Patents claiming such assigned inventions and they shall be considered [***]. Inventorship shall be determined in accordance with U.S. patent laws. Sole Inventions owned by MPI and MPI’s interest in Joint Inventions shall be included in the MPI Technology, as applicable. Sole Inventions owned by SGI and SGI’s interest in Joint Inventions shall be included in the Licensed Technology, as applicable.

9.2 Disclosure of Inventions. Each Party shall promptly disclose to the other any invention disclosures, or other similar documents, submitted to it by its or its Affiliates’ employees, agents or independent contractors describing inventions that are Joint Inventions or Sole Inventions, and all Information relating to such Joint Inventions or Sole Inventions.

9.3 Prosecution of Patents.

(a) SGI Patent Rights. SGI shall use reasonable efforts to prepare, file, prosecute and maintain the SGI Patent Rights in coordination with MPI, as set forth below.

(i) SGI Platform Patent Rights. Except as otherwise provided in this Section 9.3(a)(i), SGI shall have the sole right and authority to prepare, file, prosecute and maintain the SGI Platform Patent Rights on a worldwide basis. [***] of such filing, prosecution and maintenance shall be [***]. SGI shall provide MPI reasonable opportunity to review and comment on such efforts regarding such SGI Platform Patent Rights in the Licensed Territory applicable to the Licensed Product, including by providing MPI with a copy of material communications from any patent authority in the Licensed Territory
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regarding such SGI Platform Patent Rights, and by providing at least one draft of any material filings or responses substantially in the form to be filed with such patent authorities in advance of submitting such filings or responses. SGI shall consider MPI’s comments in good faith.

(ii) SGI Product Patent Rights. Except as otherwise provided in this Section 9.3(a)(ii), SGI shall have the sole right and authority to prepare, file, prosecute and maintain the SGI Product Patent Rights on a worldwide basis. [***] of such filing, prosecution and maintenance shall [***]; provided, however, that if MPI elects not to [***] with respect to an SGI Product Patent Right in a country(ies) in the Licensed Territory, it shall notify SGI, [***]. SGI shall provide MPI reasonable opportunity to review and comment on such efforts regarding such SGI Product Patent Rights in the Licensed Territory, including by providing MPI with a copy of material communications from any patent authority in the Licensed Territory regarding such SGI Product Patent Rights, and by providing drafts of any material filings or responses to be made to such patent authorities in advance of submitting such filings or responses. SGI shall consider MPI’s comments in good faith. If SGI determines in its sole discretion to abandon or not maintain any SGI Product Patent Right in any country in the Licensed Territory (other than any SGI Product Patent Right to which [***]), then SGI shall provide MPI with written notice of such determination within a period of time reasonably necessary to allow MPI to assume responsibility for the filing, prosecution and maintenance of such SGI Product Patent Right in such country. In the event MPI provides written notice to SGI expressing its interest in such SGI Product Patent Right in such country, MPI shall thereafter have the right to direct the filing, prosecution and maintenance of such SGI Product Patent Right in such country on SGI’s behalf, and [***]. Notwithstanding the foregoing, if SGI determines that continued prosecution of any SGI Product Patent Right in any country in the Licensed Territory will unreasonably affect SGI’s ability to prosecute and obtain patent protection for any SGI Platform Patent Right in the country in the Licensed Territory, SGI shall have the right, after reasonable consultation with MPI, to [***]. For the avoidance of doubt, SGI shall have the unilateral right, [***], to [***].

(b) MPI Patent Rights. Except as otherwise provided in this Section 9.3(b), MPI shall have the sole right and authority to prepare, file, prosecute and maintain the MPI Patent Rights (other than Joint Patents) on a worldwide basis. The [***], with SGI responsible for such [***], and MPI responsible for such [***]; provided, however, that if SGI elects not to [***], it shall notify MPI and such [***]. MPI shall provide SGI reasonable opportunity to review and comment on such efforts regarding the MPI Collaboration Patent Rights in the SGI Territory, including by providing SGI with a copy of material communications from any patent authority regarding such MPI Collaboration Patent Rights, and by providing drafts of any material filings or responses to be made to such patent authorities in advance of submitting such filings or responses. If MPI determines in its sole discretion to abandon or not maintain any MPI Collaboration Patent Rights in any country in the SGI Territory, then MPI shall provide SGI with written notice of such determination within a period of time reasonably necessary to allow SGI to assume responsibility for the filing, prosecution and maintenance of such MPI Collaboration Patent Rights. In the event

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SGI provides written notice to MPI expressing its interest in such MPI Collaboration Patent Rights, SGI shall thereafter have the right to direct the filing, prosecution and maintenance of such MPI Collaboration Patent Rights on MPI’s behalf, and the costs of such filing, prosecution and maintenance shall be borne by SGI.

(c) Joint Patents. Except as otherwise provided in this Section 9.3(c), SGI shall have the primary right and authority to prepare, file, prosecute and maintain the Patents included in the Joint Inventions (“Joint Patents”) on a worldwide basis. The [***], with SGI responsible for such [***], and MPI responsible for such [***], unless the Parties otherwise [***]. SGI shall provide MPI with the reasonable opportunity to review and comment on such efforts regarding such Joint Patents in the Territory, including by providing MPI with a copy of material communications from any patent authority in such country(ies) regarding such Joint Patents, and by providing drafts of any material filings or responses to be made to such patent authorities in advance of submitting such filings or responses, and SGI shall give due consideration to any reasonable comments made by MPI. If SGI determines in its sole discretion to abandon or not maintain any Joint Patent(s) in any country(ies) of the world, then SGI shall provide MPI with written notice of such determination within a period of time reasonably necessary to allow MPI to assume responsibility for the filing, prosecution and maintenance of such Joint Patents. In the event MPI provides written notice to SGI expressing its interest in such Joint Patents, MPI shall thereafter have the right to direct the filing, prosecution and maintenance of such Joint Patents on the Parties’ behalf, and [***].

(d) Cooperation in Prosecution. Each Party shall provide the other Party all reasonable assistance and cooperation in the Patent prosecution efforts provided above in this Section 9.3, including providing any necessary powers of attorney and executing any other required documents or instruments for such prosecution, as well as further actions as set forth below.

(i) The Parties shall respectively prepare, file, maintain and prosecute the SGI Patent Rights, MPI Patent Rights and Joint Patents as set forth in this Section 9.3. As used herein, “prosecution” of such Patents shall include, without limitation, all communication and other interaction with any patent office or patent authority having jurisdiction over a patent application throughout the world in connection with pre- and post-grant proceedings.

(ii) All communications between the Parties relating to the preparation, filing, prosecution or maintenance of the SGI Patent Rights, MPI Patent Rights and Joint Patents, including copies of any draft or final documents or any communications received from or sent to patent offices or patenting authorities with respect to such Patents, shall be considered Confidential Information of both Parties (provided, however, that communications (if any) with respect to MPI Patent Rights shall be considered Confidential Information of MPI) and subject to the confidentiality provisions of Article 12.

(iii) Assignments in the Patents claiming Sole Inventions or Joint Inventions shall be effected as follows:

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(1) employees or agents of MPI or its Affiliates that are properly named as inventors on any Patents claiming a Sole Invention or Joint Invention shall assign their interest in such Patents to MPI; and

(2) employees or agents of SGI or its Affiliates that are properly named as inventors on any Patents claiming a Sole Invention or Joint Invention shall assign their interest in such Patents to SGI.

9.4 Patent Term Extensions. The JSC will discuss and recommend for which, if any, of the Patents within the SGI Patent Rights, MPI Collaboration Patent Rights and Joint Patents in the Licensed Territory the Parties should seek Patent Term Extensions in the Licensed Territory. [***]. [***]. All filings for such extensions shall be made by the Party Controlling such Patent or, in the case of Joint Patents, by the Party responsible for filing, prosecuting and maintaining such Joint Patents in accordance with Section 9.3(c). The Party that does not apply for an extension hereunder will cooperate fully with the other Party in making such filings or actions, for example and without limitation, making available all required regulatory data and information and executing any required authorizations to apply for such Patent Term Extension. [***].

9.5 Infringement of Patents by Third Parties.

(a) Notification. Each Party shall promptly notify the other Party in writing of any existing or threatened infringement of the SGI Patent Rights, MPI Collaboration Patent Rights or Joint Patents of which it becomes aware, shall provide all evidence in such Party’s possession demonstrating such infringement, and share with the other Party all information available to it regarding such alleged infringement.

(b) Infringement of SGI Patent Rights.

(i) SGI shall have the first right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce SGI Platform Patent Rights anywhere in the world or SGI Product Patent Rights in the SGI Territory, [***].

(ii) With respect to any alleged infringement of SGI Platform Patent Rights in the Licensed Territory based on the making, using, selling, offering for sale or importing a product targeting CD30 (“CD30 Product Activities”), SGI shall have a period of [***] after the first notice under Section 9.5(a) to elect to enforce SGI Platform Patent Rights against such infringement in the Licensed Territory. In the event SGI does not so elect in the Licensed Territory, SGI shall so notify MPI in writing of its decision and its reasons for not electing to file suit, and in such notice, notify MPI whether MPI is permitted to initiate a suit or take other appropriate action to enforce such SGI Platform Patent Rights in the Licensed Territory against such infringement, in which case MPI may, in its discretion, initiate a suit or take other appropriate action to enforce such SGI Platform Patent Rights in the Licensed Territory at [***]. In this case, SGI shall take appropriate actions in order
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to enable MPI to commence a suit or take the actions set forth in the preceding sentence. [***].

(iii) MPI shall have the first right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce SGI Product Patent Rights in the Licensed Territory against allegedly infringing CD30 Product Activities, [***]. In this case, SGI shall take appropriate actions in order to enable MPI to commence a suit or take the actions set forth in the preceding sentence. MPI shall have a period of [***] after the first notice under Section 9.5(a) to elect to enforce such SGI Product Patent Rights against such infringement in the Licensed Territory. In the event MPI does not so elect, MPI shall so notify SGI in writing, and SGI may, in its discretion, initiate a suit or take other appropriate action to enforce such SGI Product Patent Rights in the Licensed Territory against such infringement [***]. In this case, MPI shall take appropriate actions in order to enable SGI to commence a suit or take the actions set forth in the preceding sentence.

(c) Infringement of MPI Patents.

(i) MPI shall have the first right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce MPI Non-Collaboration Patent Rights anywhere in the world or MPI Collaboration Patent Rights in the Licensed Territory at its own cost and expense.

(ii) With respect to any alleged infringement of MPI Collaboration Patent Rights in the Licensed Territory based on CD30 Product Activities, MPI shall have a period of [***] after the first notice under 9.5(a) to elect to enforce such MPI Collaboration Patent Rights against such infringement in the Licensed Territory. In the event MPI does not so elect, MPI shall so notify SGI in writing, and SGI may, in its discretion, initiate a suit or take other appropriate action to enforce such MPI Collaboration Patent Rights in the Licensed Territory against such CD30 Product Activities, [***]. In this case, MPI shall take appropriate actions in order to enable SGI to commence a suit or take the actions set forth in the preceding sentence.

(iii) SGI shall have the first right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce MPI Collaboration Patent Rights in the SGI Territory against allegedly infringing CD30 Product Activities, [***]. SGI shall have a period of [***] after the first notice under 9.5(a) to elect to enforce such MPI Collaboration Patent Rights against such infringement in the SGI Territory. In the event SGI does not so elect, SGI shall so notify MPI in writing, and MPI may, in its discretion, initiate a suit or take other appropriate action to enforce such MPI Collaboration Patent Rights in the SGI Territory against such infringement [***]. In this case, SGI shall take appropriate actions in order to enable MPI to commence a suit or take the actions set forth in the preceding sentence.
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(d) Infringement of Joint Patents. If a Third Party infringes any Joint Patents, the Parties shall discuss such infringement and SGI and MPI shall have the joint right, but neither Party shall be obligated, to initiate a suit or take other appropriate action that one or both Parties believe is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce such Joint Patents against such infringement. If both Parties agree to so enforce such Joint Patents, they shall be jointly responsible for, and [***] of any suit brought by them and shall [***]. If one Party elects not to enforce such Joint Patents against such infringement, then the other Party shall have the right, but not the obligation, to take action to enforce such Joint Patents against such infringement [***].

(e) Cooperation. Each Party shall provide to the Party enforcing any such rights under this Section 9.5 reasonable assistance in such enforcement, at such enforcing Party’s request [***], including joining such action as a party plaintiff if required by applicable Law to pursue such action. Except with respect to the MPI Non-Collaboration Patent Rights, the enforcing Party shall keep the other Party regularly informed of the status and progress of such enforcement efforts, shall reasonably consider the other Party’s comments on any such efforts, and shall seek consent of the other Party in any important aspects of such enforcement including, without limitation, determination of litigation strategy, filing of important papers to the competent court, which consent shall not be unreasonably withheld or delayed.

(f) Separate Representation. The Party not bringing an action with respect to an infringement in the Licensed Territory under this Section 9.5 shall be entitled to separate representation in such matter by counsel of its own choice and [***], but such Party shall at all times cooperate fully with the Party bringing such action.

(g) Allocation of Recoveries. If either Party recovers monetary damages from any Third Party in a suit or action brought under Section 9.5(b) or Section 9.5(c), whether such damages result from the infringement of SGI Patent Rights or MPI Collaboration Patent Rights, such recovery shall be allocated (i) [***]; and (ii) [***]; provided, however, that, (A) with respect to any such suit or action brought by MPI pursuant to Section 9.5(b)(ii) or 9.5(b)(iii), the amount of such remainder shall be [***]; (B) with respect to any such suit or action brought by SGI pursuant to Section 9.5(b)(iii), the amount of such remainder shall be [***]; and (C) with respect to any such suit or action brought by SGI pursuant to Section 9.5(b)(ii), SGI shall [***], provided, however, that if [***].

9.6 Infringement of Third Party Rights in the Licensed Territory.

(a) Notice. If any Licensed Product manufactured, used or sold by either Party, its Affiliates, licensees or sublicensees becomes the subject of a Third Party’s claim or assertion of infringement of a Patent granted by a jurisdiction within the Licensed Territory or other jurisdictions where the Licensed Product is manufactured, the Party first having notice of the claim or assertion shall promptly notify the other Party, the Parties shall agree on and enter into an “identity of interest agreement” wherein such Parties agree to their

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shared, mutual interest in the outcome of such potential dispute, and thereafter, the Parties shall promptly meet to consider the claim or assertion and the appropriate course of action.

(b) Defense. Each Party shall have the first right, but not the obligation, to defend any such Third Party claim or assertion of infringement of a Patent brought against such Party as described in subsection (a) above, at such Party’s expense. If such Party does not commence actions to defend such claim within [***] after it receives notice thereof (or within [***] after it should have given notice thereof to the other Party as required by Section 9.6(a)), then to the extent allowed by applicable Laws, such other Party shall have the right, but not the obligation, to control the defense of such claim by counsel of its choice, at such other Party’s expense. The non-defending Party shall reasonably cooperate with the Party conducting the defense of the claim or assertion, including, if required to conduct such defense, furnishing a power of attorney.

(c) Settlement. Each Party shall have an equal right to participate in any settlement discussions that are held with Third Parties described in this Section 9.6, and neither Party shall enter into any settlement of any claim described in this Section 9.6 that materially adversely affects the other Party’s rights or interests without such other Party’s written consent, which consent shall not be unreasonably withheld or delayed.

9.7 Patent Invalidity Claim. Each Party shall promptly notify the other Party in writing of any legal or administrative action by any Third Party against a MPI Collaboration Patent Right, SGI Patent Right or Joint Patent Right of which it becomes aware, including any nullity, revocation, reexamination or compulsory license proceeding. Responsibility for defending against any such action shall be determined in the same manner as enforcement of the relevant Patent Rights pursuant to Section 9.5.

9.8 Patent Marking. To the extent required by Law in order to protect Patent rights, (a) MPI (or its Affiliate or sublicensee) shall mark Licensed Products marketed and sold by MPI (or its Affiliate or sublicensee) hereunder with appropriate patent numbers or indicia of SGI Patent Rights at SGI’s request, and (b) SGI (or its Affiliate or sublicensee) shall mark Licensed Products marketed and sold by SGI (or its Affiliate or sublicensee) hereunder with appropriate patent numbers or indicia of MPI Patent Rights at MPI’s request.

9.9 License Registration. Wherever applicable, for each SGI Patent Right in the Licensed Territory, SGI shall register MPI’s exclusive license to such SGI Patent Right before the applicable patent authority, [***]. In addition, SGI shall allow MPI to file appropriate information with the Regulatory Authorities in the Licensed Territory listing any SGI Patents or Joint Patents in the orange book equivalent, if any, as a patent relating to the Licensed Product.

9.10 Trademarks. Both Parties shall use the same brand name and associated trademarks for Licensed Products to create a worldwide brand for Licensed Products unless a Party has cause to use a different brand name (such as for regulatory or Third Party infringement reasons) in its territory and informs the JSC thereof. Neither Party shall, without the other Party’s consent, use any trademarks that include, in whole or part, any

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corporate logo or name of the other Party or marks confusingly similarly thereto, in connection with such Party’s marketing or promotion of the Licensed Product, except as otherwise agreed by the JCC or JSC or as otherwise required by applicable Law. Except as otherwise agreed by the JCC or JSC, (a) SGI shall be responsible for the selection, registration, maintenance and defense of all trademarks for use in connection with the sale or marketing of the Licensed Product in the SGI Territory at [***], and SGI shall own such trademarks, and (b) MPI shall be responsible for the selection, registration, maintenance and defense of all trademarks for use in connection with the sale or marketing of the Licensed Product in the Licensed Territory at [***], and MPI shall own such trademarks. Subject to applicable Laws, and to the extent agreed upon by the JDC, any development materials used by a Party (i.e., abstracts, journal materials and listing of clinical studies) relating to the Licensed Product shall include the other Party’s name and a trademark owned by and designated by such other Party, and shall display the names and trademarks of both Parties in equal prominence. To the extent a Party reasonably requests to use the other Party’s trademarks, including the Party’s name and trademarks (including any use of SGI’s name and trademarks by MPI pursuant to the preceding sentence), such other Party shall provide a non-exclusive, worldwide, royalty-free, fully-paid, license to such trademarks to the requesting Party solely for the purpose of fulfilling its obligations under this Agreement, subject to the licensed Party complying with the licensing Party’s trademark guidelines and quality control provisions. Such license shall be sublicensable only to such Party’s Affiliates, and its permitted Distributors and commercial sublicensees necessary to Commercialize a Licensed Product or otherwise fulfill its obligations hereunder.

ARTICLE 10

REPRESENTATIONS AND WARRANTIES

10.1 Mutual Representations and Warranties. Each Party hereby represents, warrants, and covenants (as applicable) to the other Party as follows:

(a) Corporate Existence and Power. It is a company or corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement, including, without limitation, the right to grant the licenses granted by it hereunder.

(b) Authority and Binding Agreement. As of the Effective Date, (i) it has the corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; (ii) it has taken all necessary corporate action on its part required to authorize the execution and delivery of the Agreement and the performance of its obligations hereunder; and (iii) the Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, and binding obligation of such Party that is enforceable against it in accordance with its terms.
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(c) No Conflict; Covenant. It is not a party to any agreement that would materially prevent it from granting the rights granted to the other Party under this Agreement or performing its obligations under the Agreement.

(d) No Debarment. In the course of the Development of Licensed Products, such Party has not used, prior to the Effective Date, and shall not use, during the Term, any employee or consultant who has been debarred by any Regulatory Authority, or, to the best of such Party’s knowledge, is the subject of debarment proceedings by a Regulatory Authority.

10.2 Additional Representations, Warranties and Covenants of SGI. SGI represents, warrants and covenants to MPI as follows:

(a) Non-Infringement of SGI Patent Rights by Third Parties. As of the Effective Date, to SGI’s Best Knowledge, there are no activities by Third Parties that would [***].

(b) No Claims of Third Party Rights. To SGI's Best Knowledge as of the Effective Date, (i) (A) the Development, use and Manufacture of the Licensed Product in the Territory [***], and (B) [***], and (ii) [***].

(c) Ownership. As of the Effective Date, SGI owns or has rights to the Licensed Technology, [***]. SGI shall [***]).

(d) Validity and Enforceability. To SGI’s Best Knowledge, the issued patents included in the SGI Patent Rights and SGI Third Party Patent Rights as of the Effective Date are valid and enforceable. To SGI’s Best Knowledge as of the Effective Date, [***]. [***]. To SGI’s Best Knowledge, [***].

(e) No Action or Claim. As of the Effective Date, there are no actual, pending or, to SGI’s Best Knowledge, [***].

(f) Completeness. Exhibit A includes a complete and correct list, in all material respects, of all SGI Patent Rights existing as of the Effective Date and to SGI’s Best Knowledge, all SGI Third Party Patent Rights existing as of the Effective Date.

(g) IP Disclosure. SGI has provided MPI with access to (i) [***] and (ii) [***].

(h) Third Party Agreements. Exhibit E sets forth a true and complete list of (i) all Existing Third Party Agreements (including all royalties and milestones to be paid thereunder) and (ii) all material agreements in effect as of the Effective Date between SGI or its Affiliates, on the one hand, and any Third Party manufacturer with respect to the antibody, drug-linker, conjugation and fill/finish of the Licensed Product (or any component thereof, other than raw materials), on the other hand. SGI has, prior to the Effective Date, provided MPI with access to true and complete copies of each of the agreements listed in Exhibit E and any prior agreements for the manufacture of the License Product where
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[***]. As of the Effective Date, to SGI’s Best Knowledge, [***]. As of the Effective Date, [***]. As of the Effective Date, the agreements listed in Exhibit E are in full force and effect. SGI shall use commercially reasonable efforts to maintain and perform its obligations under the Existing Third Party Agreements and the other agreements listed in Exhibit E in full force and effect during the Term and [***].

(i) Manufacturing Agreements. Except as has been specifically disclosed to MPI or included in Third Party manufacturing agreements provided to MPI prior to the Effective Date, [***]. SGI shall not amend any such agreement in a manner that would [***]. As of the Effective Date, the Manufacturing process for the Licensed Product [***].

(j) Compliance with Laws. The Development, use and Manufacture of Licensed Products in the Territory on or prior to the Effective Date has been conducted by SGI and its Affiliates and its and their subcontractors, in compliance (in all material respects) with all applicable Laws ([***]). To SGI’s Best Knowledge, neither SGI nor any of its Affiliates, nor any of their respective officers, employees or agents, [***].

(k) Product Disclosure. As of the Effective Date, SGI has provided MPI with all material information in SGI’s or its Affiliates’ possession or control [***].

10.3 Disclaimer. MPI understands that the Licensed Products are the subject of ongoing Development by SGI and that SGI cannot assure the safety, usefulness or commercial potential of Licensed Products. In addition, SGI makes no warranties except as expressly set forth in this Article 10 concerning the Licensed Products and Licensed Technology.

10.4 No Other Representations or Warranties. EXCEPT AS EXPRESSLY STATED IN THIS ARTICLE 10, NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS, IS MADE OR GIVEN BY OR ON BEHALF OF A PARTY. ALL IMPLIED REPRESENTATIONS AND WARRANTIES, WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE, ARE HEREBY EXPRESSLY EXCLUDED.

ARTICLE 11

INDEMNIFICATION

11.1 Indemnification by SGI. SGI shall defend, indemnify, and hold MPI and its Affiliates and
MPI’s and its Affiliates’ officers, directors, employees, and agents (collectively, the “MPI Indemnitees”) harmless from and against any and all Third Party claims, suits, proceedings, damages, expenses (including court costs and reasonable attorneys’ fees and expenses), and recoveries (collectively, “Claims”) to the extent that such Claims arise out of, are based on, or result from (a) the Commercialization of Licensed Products by or on behalf of SGI or its Affiliates, or their respective Distributors or licensees in the SGI 
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Territory; (b) any SGI Independent Activities; (c) a breach of any of SGI’s representations, warranties, or obligations under the Agreement; (d) the willful misconduct or negligent acts of SGI, its Affiliates, or the officers, directors, employees, or agents of SGI or its Affiliates under this Agreement; or (e) the development, manufacture, use or commercialization of any [***] by or on behalf of SGI or its Affiliates, or their respective Distributors or licensees (except as otherwise provided in any written agreement between the Parties). The foregoing indemnity obligation shall not apply to the extent that the MPI Indemnitees fail to comply with the indemnification procedures set forth in Section 11.3 and SGI’s defense of the relevant Claims is prejudiced by such failure, or to the extent that any Claim arises from, is based on, or results from (i) a breach of any of MPI’s representations, warranties, or obligations under the Agreement; or (ii) the willful misconduct or negligent acts of MPI or its Affiliates, or the officers, directors, employees, or agents of MPI or its Affiliates.

11.2 Indemnification by MPI. MPI shall defend, indemnify, and hold SGI and its Affiliates and SGI’s and its Affiliates’ officers, directors, employees, and agents (collectively, the “SGI Indemnitees”) harmless from and against any and all Claims to the extent that such Claims arise out of, are based on, or result from (a) the Commercialization of the Licensed Products by or on behalf of MPI or its Affiliates, or their respective Distributors or sublicensees in the Licensed Territory; (b) any MPI Independent Activities, (c) a breach of any of MPI’s representations, warranties, or obligations under the Agreement; (d) the willful misconduct or negligent acts of MPI or its Affiliates, or the officers, directors, employees, or agents of MPI or its Affiliates under this Agreement; or (e) the development, manufacture, use or commercialization of any [***] by or on behalf of MPI or its Affiliates, or their respective Distributors or licensees (except as otherwise provided in any written agreement between the Parties). The foregoing indemnity obligation shall not apply to the extent that the SGI Indemnitees fail to comply with the indemnification procedures set forth in Section 11.3 and MPI’s defense of the relevant Claims is prejudiced by such failure, or to the extent that any Claim arises from, is based on, or results from (i) a breach of any of SGI’s representations, warranties, or obligations under the Agreement; or (ii) the willful misconduct or negligent acts of SGI or its Affiliates, or the officers, directors, employees, or agents of SGI or its Affiliates.

11.3 Indemnification Procedures. A Party claiming indemnity under this Article 11 (the “Indemnified Party”) shall give written notice to the Party from whom indemnity is being sought (the “Indemnifying Party”) promptly after learning of such Claim. The Indemnified Party shall provide the Indemnifying Party with reasonable assistance, at the Indemnifying Party’s expense, in connection with the defense of the claim for which indemnity is being sought. The Indemnifying Party shall have the right to assume and conduct the defense of the claim with counsel of its choice; provided the Indemnified Party may participate in and monitor such defense with counsel of its own choosing [***]; provided further, that the Indemnifying Party shall obtain the prior written consent (such consent to not be unreasonably withheld, delayed or conditioned) of any such Indemnified Party as to any settlement which would materially diminish or materially adversely affect the scope, exclusivity or duration of any Patents licensed under this Agreement, would require any payment by such Indemnified Party, would require an admission of legal wrongdoing in

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any way on the part of an Indemnified Party, would effect an amendment of this Agreement or would otherwise materially adversely affect the Indemnified Party. So long as the Indemnifying Party is actively defending the claim in good faith, the Indemnified Party shall not settle any such claim without the prior written consent of the Indemnifying Party. If the Indemnifying Party does not assume and conduct the defense of the claim as provided above, (a) the Indemnified Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to the claim in any manner the Indemnified Party may deem reasonably appropriate (and the Indemnified Party need not consult with, or obtain any consent from, the Indemnifying Party in connection therewith), and (b) the Indemnifying Party will remain responsible to indemnify the Indemnified Party as provided in this Article 11.

11.4 Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 11.4 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 11.1 OR 11.2, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF (A) CONFIDENTIALITY OBLIGATIONS IN ARTICLE 12,
(B) THE EXCLUSIVE OR CO-EXCLUSIVE LICENSES GRANTED TO THE OTHER PARTY PURSUANT TO SECTION 2.1, OR (C) SECTION 2.5.

11.5 Insurance. Each Party shall secure and maintain in full force and effect throughout the term of this Agreement (and for at least [***] thereafter for claims made coverage), insurance with coverage and minimum policy limits set forth as follows:

(a) [***];

(b) [***];

(c) [***]; and

(d) [***].

Notwithstanding the foregoing, MPI may elect to self-insure all or a portion of its insurance obligations set forth herein. During the period that this Section 11.5 requires a Party to secure and maintain insurance in full force and effect, such Party shall furnish to the other Party, upon request, a certificate from an insurance carrier (having a [***]) demonstrating the insurance requirements set forth above, naming the other Party as an additional insured (except on the policy for Workers' Compensation), or in the event of MPI’s self-insurance, MPI shall provide written evidence of such self-insurance. During the period that this Section 11.5 requires a Party to secure and maintain insurance in full force and effect, such Party shall provide that [***] advance written notice will be given to the other Party of any material change or cancellation in coverage or limits.
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ARTICLE 12

CONFIDENTIALITY

12.1 Confidentiality. Except to the extent expressly authorized by this Agreement or
otherwise agreed in writing by the Parties, during the Term and for a period of [***] thereafter ([***]), each Party agrees that it shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement any of the other Party’s Confidential Information except for that portion of such information or materials that the receiving Party can demonstrate by competent written proof:

(a) was already known to the receiving Party or its Affiliate, other than under an obligation of confidentiality, at the time of disclosure by the other Party;

(b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party;

(c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement;

(d) was disclosed, other than under an obligation of confidentiality, to the receiving Party or its Affiliate by a Third Party who has a legal right to make such disclosure; or

(e) was independently discovered or developed by the receiving Party or its Affiliate without the aid, application, or use of the disclosing Party’s Confidential Information.

12.2 Authorized Disclosure. Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the following situations:

(a) regulatory submissions and other filings with Governmental Authorities, including filings with the Securities and Exchange Commission or other relevant exchange on which such Party is listed;

(b) prosecuting or defending litigation;

(c) filing, prosecuting, maintaining or enforcing Patents to the extent expressly provided in this Agreement;

(d) complying with applicable Laws, including regulations promulgated by securities agencies, court order, and administrative subpoena or order;

(e) disclosure to its employees, agents, consultants, other persons, and any bona fide Third Party sublicensees and Distributors only on a need-to-know basis and
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solely as necessary in connection with the performance of or as otherwise contemplated by this Agreement, provided that in each case the recipient of such Confidential Information must agree to be bound by similar obligations of confidentiality and non-use at least as equivalent in scope as those set forth in this Article 12 prior to any such disclosure and with respect to any Confidential Information received from a Third Party, subject to any specific provisions in an agreement with such Third Party governing disclosure of such information, provided that the receiving Party has first been notified of such provisions and agreed to be bound by them; and

(f) disclosure of the material financial terms of this Agreement to any actual or bona fide potential investor, investment banker, acquiror, merger partner, licensee, sublicensee or other potential financial or collaborative partner; provided, that in connection with such disclosure, the disclosing Party shall use all reasonable efforts to inform each disclosee of the confidential nature of such Confidential Information and obtain from each recipient of such Confidential Information an agreement similar in scope to the restrictions set forth herein regarding Confidential Information and to treat such Confidential Information as confidential.

Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to clause (a) through (c) of this Section 12.2, it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use best efforts to secure confidential treatment of such information. In any event, each Party agrees to take all reasonable action to avoid disclosure of the other Party’s Confidential Information hereunder.

12.3 Publicity; Terms of Agreement.

(a) The Parties agree that the material terms of this Agreement are included within the Confidential Information of both Parties, subject to the special authorized disclosure provisions set forth below in this Section 12.3 or in Section 12.2. The Parties shall issue a joint press release regarding the execution of this Agreement in the form set forth on Exhibit B and on the date mutually agreed by the Parties, which date shall not be later than [***] after the Effective Date.

(b) After release of such press release, if either Party desires to make a public announcement concerning the material terms of this Agreement or either Party’s activities under the Global Product Development Plan, such Party shall give reasonable prior advance notice of the proposed text of such announcement to the other Party for its prior review and approval (except as otherwise provided herein), such approval not to be unreasonably withheld or delayed. A Party commenting on such a proposed public announcement shall provide its comments, if any, within [***] after receiving the public announcement for review. To the extent required by law or by the regulations of the applicable securities exchange upon which a Party may be listed, such Party shall have the right to make a public announcement concerning the material terms of this Agreement or either Party’s activities under the Global Product Development Plan, including public

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announcements of the achievement of milestones under this Agreement as they are achieved, and the achievements of MAA or NDA approvals in the Licensed Territory as they occur, as well as any financial information necessary for its required financial disclosures, including, as applicable, the amount of milestone payment, royalty revenue and upfront payments, subject only to the review procedure set forth in the preceding sentences. In relation to the other Party’s review of such an announcement, such other Party may make specific, reasonable comments on such proposed press release within the prescribed time for commentary, but shall not withhold its consent to disclosure of the information that the relevant milestone has been achieved and triggered a payment hereunder, that MAA or NDA approval has occurred or that such revenue or payments have been earned or received. Notwithstanding the foregoing, except as disclosed in the joint press release in the form attached as Exhibit B, SGI acknowledges that the Parties intend to preserve as confidential the royalty rates and royalty tiers under this Agreement, to the extent disclosure thereof is not required by law or by the regulations of the applicable securities exchange upon which a Party may be listed, and SGI shall not disclose MPI’s Net Sales without MPI’s prior written consent. Neither Party shall be required to seek the permission of the other Party to repeat any information regarding the terms of this Agreement or either Party’s activities under the Global Product Development Plan that has already been publicly disclosed by such Party, or by the other Party, in accordance with this Section 12.3.

(c) The Parties acknowledge that each Party may in the future be obligated to file a copy of this Agreement with the U.S. Securities and Exchange Commission or other applicable entity having regulatory authority over such Party’s securities (the “SEC”). Such Party shall be entitled to make such a required filing, provided that it requests confidential treatment of certain commercial terms and technical terms hereof to the extent such confidential treatment is reasonably available to such Party. In the event of any such filing, such Party will provide the other Party, a reasonable time prior to filing, with a copy of the Agreement marked to show provisions for which the filing Party intends to seek confidential treatment and shall reasonably consider and incorporate the other Party’s comments thereon to the extent consistent with the legal requirements governing redaction of information from material agreements that must be publicly filed. Such other Party will as promptly as practical provide any such comments. Each Party recognizes that applicable Laws and SEC policies and regulations to which the filing Party is and may become subject to may require such filing Party to publicly disclose certain terms of this Agreement that the other Party may prefer not be disclosed, and that the filing Party is entitled hereunder to make such required disclosures to the minimum extent necessary to comply with such Laws and SEC policies and regulations.

12.4 Publications. The JDC shall prepare and approve [***] with respect to the Licensed Product and results of studies carried out under this Agreement. Neither Party may publish manuscripts (whether peer-reviewed or not), or give other forms of public disclosure such as abstracts and presentations, of results of studies carried out under this Agreement, without the opportunity for prior review by the other Party or [***]. A Party seeking publication shall provide the other Party and the JDC the opportunity to review

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and comment on any proposed manuscripts, abstracts, scientific presentations or other similar public disclosures which relate to any Licensed Product at least [***] prior to their intended submission for publication or presentation. The other Party shall provide the Party seeking publication with its comments in writing, if any, within [***] after receipt of such proposed manuscripts or presentations. The Party seeking publication shall consider such comments of the other Party and shall remove any and all of the other Party’s Confidential Information (other than the Joint Results) at the request of such other Party. In addition, the Party seeking publication shall delay the submission for a period up to [***] in the event that the other Party can demonstrate reasonable need for such delay, including without limitation, the preparation and filing of a patent application. If such Party fails to provide its comments to the Party seeking publication within such [***], such other Party shall be deemed to not have any comments, and the Party seeking publication shall be free to publish in accordance with this Section 12.4 after the [***] has elapsed. The Party seeking publication shall provide the other Party a copy of the manuscript at the time of the submission. The Party seeking publication shall not have the right to publish or present the other Party’s Confidential Information without prior written consent of the other Party, except as expressly permitted in this Agreement. With respect to any proposed abstracts, manuscripts or summaries of presentations by investigators or other Third Parties, such materials shall be subject to review under this Section 12.4 to the extent that SGI or MPI, as the case may be, has the right and ability (after using reasonable efforts) to do so.

ARTICLE 13

TERM AND TERMINATION

13.1 Term. This Agreement shall become effective on the Effective Date and shall remain in effect until terminated in accordance with Sections 13.2, 13.3 or 13.4, or by mutual written agreement, or until the expiration of all payment obligations under Article 8 (the “Term”).

13.2 Unilateral Termination by MPI. MPI shall have the right to terminate this Agreement in its entirety [***] prior written notice to SGI.

13.3 Termination for Breach. Subject to Section 13.6, each Party shall have the right to terminate this Agreement upon written notice to the other Party if the other Party materially breaches an obligation under this Agreement, and, after receiving written notice from the non-breaching Party identifying such material breach in reasonable detail, fails to cure such material breach (including failure to pay any amounts due hereunder) within [***] from the date of such notice (which may be extended for an additional [***] if such breach cannot be cured within such initial [***] period, provided the breaching Party (a) has begun to cure such breach within such initial [***] period, (b) provides the non-breaching Party with a reasonable plan to cure such breach, and (c) uses reasonable efforts to implement such plan during such additional [***] period). Notwithstanding anything to the contrary herein, [***]. If the alleged breaching Party disputes in good faith the existence or materiality of a breach specified in a notice provided by the other Party,

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then the non-breaching Party shall not have the right to terminate this Agreement under this Section 13.3 unless and until an arbitrator or court, in accordance with Article 14, has determined that the alleged breaching Party has materially breached this Agreement and such Party fails to cure such breach within [***] following such decision of such arbitrator or court (except to the extent such breach involves the failure to make a payment when due, which breach must be cured within [***] following such decision of such arbitrator or court). It is understood and agreed that during the pendency of such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations hereunder.

13.4 [***]. [***].

13.5 Effect of Early Termination of the Agreement. Upon the early termination of this Agreement by MPI under Section 13.2, or by SGI under Section 13.3 due to MPI’s material uncured breach (whether this Agreement is terminated in its entirety or with respect to a country(ies)), or Section 13.4, the following shall apply (in addition to any other rights and obligations under Sections 13.2, 13.3, or 13.4 or otherwise under this Agreement with respect to such termination or material breach of this Agreement):

(a) Regulatory Materials. To the extent permitted by applicable Laws, [***].

(b) Trademarks. [***].

(c) MPI License. MPI hereby grants to SGI, effective only in event of such termination, an [***] (i) [***] and (ii) [***]. In addition, for clarity, [***].

(d) Transition Assistance.

(i) MPI shall provide reasonable assistance, [***], as may be reasonably necessary for SGI to commence or continue Developing, manufacturing and Commercializing the Licensed Products in the Terminated Countries to the extent MPI is then performing or having performed such activities, including without limitation upon request of SGI, using reasonable efforts to (A) transfer any agreements or arrangements with Distributors, suppliers or vendors which apply solely to the sale or supply of Licensed Products in the Terminated Countries, and (B) amend any agreement or arrangements with Distributors, suppliers or vendors which apply to some extent to the sale or supply of Licensed Products in the Terminated Countries to transfer to SGI the rights solely with respect to Licensed Products in the Terminated Countries, in each case without requiring the payment of additional consideration to such Distributor, supplier or vendor.

(ii) In addition, [***], [***] to complete any ongoing clinical studies included in such Global Product Development Plan, in each case [***] for the Development of the Licensed Product for the Terminated Countries on or before the later of (A) the [***] of the effective date of such termination of this Agreement and (B) [***] of the [***] in which this Agreement is so terminated.
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(iii) To the extent that MPI or its Affiliate is then Manufacturing Licensed Products for the Terminated Countries, MPI shall continue to Manufacture, and shall supply to SGI, [***], such Licensed Products for SGI’s use in the Terminated Countries [***] in order to permit SGI to establish sufficient manufacturing capacity for Licensed Product in the Terminated Countries, in addition to the manufacturing capacity that SGI had in place for its use in the SGI Territory. Such period shall be no more than [***] unless otherwise agreed by the Parties.

(e) Remaining Inventories. SGI shall have the right to purchase from MPI, [***], all or part of the inventory of the Licensed Product held by MPI for the Terminated Countries as of the effective date of such termination of this Agreement. SGI shall notify [***] after receiving notice from MPI reporting such inventory as of the date of such termination of this Agreement. If SGI does not exercise such right, then subject to Article 8 hereof, [***].

13.6 Effects of Material Adverse Breach by SGI.

(a) If MPI has the right to terminate this Agreement pursuant to Section 13.3 due to a Material Adverse SGI Breach, then MPI may, by written notice to SGI, elect to waive its right to terminate this Agreement due to the relevant occurrence of such Material Adverse SGI Breach (but shall retain its rights under Section 13.3 to terminate this Agreement with respect to any other material uncured breach of this Agreement by SGI) and continue the Agreement, in which case, effective as of the date MPI would have had the right to terminate this Agreement, [***], and, for the sake of clarity, all other provisions of this Agreement shall remain in full force and effect without change.

(b) “Material Adverse SGI Breach” means (i) [***], (ii) [***], (iii) [***], (iv) [***], (v) [***],
 (vi) [***], or (vii) [***].

(c) In the event MPI [***] (i) [***]; or (ii) [***].

13.7 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by SGI and MPI are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code or any comparable provision of any Law in any other jurisdiction, licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code or any comparable provision of any Law in any other jurisdiction. The Parties agree that each Party, as licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any comparable Law in any other jurisdiction. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against a Party under the U.S. Bankruptcy Code or any comparable Law in any other jurisdiction, the other Party shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, which, if not already in such other Party’s possession, shall be promptly delivered to such other Party (a) upon any such commencement of a bankruptcy proceeding upon such other Party’s written request therefor, unless such Party elects to continue to perform

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all of its obligations under this Agreement, or (b) if not delivered under clause (a), following the rejection of this Agreement by such Party upon written request therefor by such other Party.

13.8 Survival. The following provisions shall survive any expiration or termination of this Agreement for the period of time specified (or indefinitely, as applicable): [***]. For the sake of clarity and notwithstanding anything to the contrary in this Agreement, termination of this Agreement shall be in addition to, and shall not prejudice, the Parties’ remedies at law or in equity, including the Parties’ ability to receive legal damages and/or equitable relief with respect to any breach of this Agreement, regardless of whether or not such breach was the reason for the termination.

ARTICLE 14

DISPUTE RESOLUTION

14.1 Disputes. The Parties recognize that disputes as to certain matters may from time to time arise during the Term which relate to either Party’s rights and/or obligations hereunder. It is the objective of the Parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the Parties agree to follow the procedures set forth in this Article 14 (except where a different procedure is otherwise specified in this Agreement) to resolve any controversy or claim arising out of, relating to or in connection with any provision of this Agreement, if and when a dispute arises under this Agreement.

14.2 Referral to Executive Officers. With respect to disputes arising from or not resolved by the JSC, or any other disagreement, dispute or claim arising between the Parties, relating to, but not limited to, the Development of the Licensed Products or otherwise, either Party may, by written notice to the other Party, have such dispute referred to the Executive Officers for each Party for attempted resolution by good faith efforts, which efforts shall include at least one in person meeting within [***] after such notice is received. If the Executive Officers designated by the Parties are not able to resolve such dispute within [***] after such matter is referred to them, then, except as otherwise specified in this Agreement, the Parties shall try to resolve such dispute through mediation pursuant to Section 14.3, which mediation may be initiated by either Party at any time after the conclusion of such [***] period.

14.3 Mediation. Mediation shall be administered by JAMS or another independent mediator as may be mutually selected by the Parties. The mediation shall take place in [***]. The Parties shall use good faith efforts to resolve any disputes referred to mediation as expeditiously as practicable. If the Parties fail to resolve any such dispute through mediation within [***] after the initiation thereof, the dispute shall be resolved by binding arbitration pursuant to Section 14.4.
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14.4 Binding Arbitration. Disputes not resolved by mediation pursuant to Section 14.3 shall be resolved through binding arbitration administered by JAMS, which arbitration may be initiated by either Party at any time after the conclusion of such period, on the following basis:

(a) The place of arbitration shall be [***].

(b) The arbitration shall be conducted by [***] arbitrators with not less than [***] of relevant experience in the subject matter of the dispute, one selected by each of the Parties and the third mutually agreed upon by the respective individuals selected by the Parties.

(c) The arbitration shall be made in accordance with the Comprehensive Arbitration Rules and Procedures of JAMS then in effect.

(d) The award shall be made in writing, shall be binding on the Parties and may be entered as a judgment by any court or forum having jurisdiction.

(e) Either Party may apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Further, either Party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of such Party pending the arbitration award.

(f) The arbitrators shall have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages, except as provided in Section 11.4.

(g) Each Party shall [***] of arbitration.

(h) Except to the extent necessary to confirm an award, as may be required by Law or as may be required to be disclosed to a Party’s auditors, neither Party nor any arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both Parties.

(i) In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute, controversy or claim would be barred by the applicable statute of limitations.

14.5 Patent and Trademark Dispute Resolution. Notwithstanding Sections 14.2, 14.3 and 14.4, any dispute, controversy or claim relating to the scope, validity, enforceability or infringement of any Patent covering the Manufacture, use or sale of any Licensed Product or of any trademark rights relating to any Licensed Product shall be submitted to a court of competent jurisdiction in the Territory in which such Patent or trademark rights were granted or arose.
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14.6 Injunctive Relief. Nothing herein may prevent either Party from seeking preliminary injunction or temporary restraint order in order to prevent any Confidential Information from being disclosed without appropriate authorization under this Agreement.

ARTICLE 15

MISCELLANEOUS

15.1 Entire Agreement; Amendment. This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes, as of the Effective Date, all prior agreements and understandings between the Parties with respect to the subject matter hereof, including, without limitation, the CDAs (provided, however, that each Party shall remain subject to the [***]. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties other than as are set forth herein and therein. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.

15.2 Force Majeure. Both Parties shall be excused from the performance of their obligations under this Agreement to the extent that such performance is prevented by Force Majeure and the nonperforming Party promptly provides notice of the prevention to the other Party. Such excuse shall be continued so long as the condition constituting Force Majeure continues and the nonperforming Party takes reasonable efforts to remove the condition. For purposes of this Agreement, “Force Majeure” shall mean conditions beyond the reasonable control of a Party, including without limitation, an act of God, war, civil commotion, terrorist act, labor strike or lock-out, epidemic, failure or default of public utilities or common carriers, destruction of production facilities or materials by fire, earthquake, storm or like catastrophe, and failure of plant or machinery (provided that such failure could not have been prevented by the exercise of skill, diligence, and prudence that would be reasonably and ordinarily expected from a skilled and experienced person engaged in the same type of undertaking under the same or similar circumstances). Notwithstanding the foregoing, a Party shall not be excused from making payments owed hereunder because of a Force Majeure affecting such Party.

15.3 Notices. Any notice required or permitted to be given under this Agreement shall be in writing, shall specifically refer to this Agreement, and shall be addressed to the appropriate Party at the address specified below or such other address as may be specified by such Party in writing in accordance with this Section 15.3, and shall be deemed to have been given for all purposes (a) when received, if hand-delivered or sent by a reputable international courier service, or (b) five (5) Business Days after mailing, if mailed by first class certified or registered airmail, postage prepaid, return receipt requested.
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If to SGI:                           Seattle Genetics, Inc. 
21823 30th Drive SE 
Bothell, WA 98021
Attn: Chief Executive Officer 
cc: General Counsel

If to MPI:                           Millennium Pharmaceuticals, Inc.
40 Landsdowne Street
Cambridge, MA 02139 
Attn: Chief Medical Officer
and EVP-Commercial 
cc: General Counsel

15.4 No Strict Construction; Headings; Interpretation. This Agreement has been prepared jointly and shall not be strictly construed against either Party. Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision. The headings of each Article and Section in this Agreement have been inserted for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section. In construing this Agreement, unless expressly specified otherwise, (a) references to Sections and Exhibits are to sections of, and exhibits to, this Agreement; (b) except where the context otherwise requires, use of either gender includes the other gender, and use of the singular includes the plural and vice versa; (c) any list or examples following the word “including” or “include” shall be interpreted without limitation to the generality of the preceding words; and (d) except where the context otherwise requires, the word “or” is used in the inclusive sense.

15.5 Assignment.

(a) Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other, except that a Party may make such an assignment without the other Party’s consent to (1) an Affiliate(s) of the assigning Party, or (2) a successor to substantially all of the business of such Party to which this Agreement relates, whether in a merger, sale of stock, sale of assets or other transaction. Notwithstanding the foregoing, (i) in no event shall either Party assign this Agreement to a Third Party [***], (ii) in no event shall either Party assign the Licensed Technology or MPI Collaboration Technology (as applicable) to any Affiliate or Third Party [***], and (iii) in no event shall either Party assign [***]; provided, however, that, for the sake of clarity, the provisions of clauses (i) through (iii) shall not apply to a Party’s assignment of only its right to receive payments under this Agreement.
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(b) Any successor to or permitted assignee of rights and/or obligations hereunder shall, in writing to the other Party, expressly assume performance of such rights and/or obligations.

(c) The Licensed Technology, in the case of SGI as assignor or transferor, or the MPI Technology, in the case of MPI as assignor or transferor, shall exclude any intellectual property which the permitted assignee or transferee which was a Third Party immediately prior to such assignment owned or otherwise controlled prior to the effective date of such assignment or transfer of this Agreement to such assignee or transferee which was not developed in connection with the Licensed Product.

(d) This Agreement shall be binding on the successors to or any permitted assignee of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 15.5 shall be null, void and of no legal effect.

15.6 [***].

(a) MPI agrees that upon the Effective Date and for a period lasting until the earlier of the [***] of the Effective Date or the expiration or termination of this Agreement, [***]:

(i) [***];

(ii) [***];

(iii) [***];

(iv) [***];

(v) [***]; or

(vi) [***].

(b) Nothing in this Section 15.6 shall [***].

(c) The prohibitions set forth in the foregoing Section 15.6(a) ([***]) shall not apply to (i) [***]; or (ii) [***], or (iii) [***].

(d) [***].

(e) For purposes of this Agreement, a [***]:

(i) [***];

(ii) [***];

(iii) [***]; or
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(iv) [***].

15.7 Change of Control.

(a) Upon a Change of Control of a Party (the “Acquired Party”) (including, for the sake of clarity, such Party’s assignment of this Agreement pursuant to Section 15.5(a)(1)), (a) the Acquired Party shall maintain the same level of diligence in performing its obligation under the Global Product Development Plan after the Change of Control as had been applied prior to the Change of Control, unless otherwise agreed by the Parties; and (b), [***]. Any option pursuant to clauses (b)(i) or (b)(ii), if applicable, must be exercised by such other Party by written notice to the Acquired Party no later than [***]. Any option pursuant to clause b(iii), if applicable, must be exercised by such other Party by written notice to the Acquired Party no later than [***].

(b) Until the earliest of the [***] of the Effective Date, the expiration or termination of this Agreement or MPI’s receipt of written notice from SGI that [***], SGI shall notify MPI [***]. [***]. Notwithstanding anything to the contrary in this Section 15.7(b) above, SGI’s notice under this Section 15.7(b) shall only be required to include [***]. [***].

15.1 Performance by Affiliates. Each Party may discharge any obligations and exercise any right hereunder through any of its Affiliates. Each Party hereby guarantees the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in connection with such performance. Any breach by a Party’s Affiliate of any of such Party’s obligations under this Agreement shall be deemed a breach by such Party, and the other Party may proceed directly against such Party without any obligation to first proceed against such Party’s Affiliate.

15.2 Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

15.3 Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable by any court of competent jurisdiction from which no appeal can be or is taken or by the arbitrators pursuant to an arbitration provided hereunder, the provision shall be considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the Parties when entering this Agreement may be realized.

15.4 No Waiver. Any delay in enforcing a Party’s rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement, except with respect to an express written and signed waiver relating to a particular matter for a particular period of time.
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15.5 Independent Contractors. Each Party shall act solely as an independent contractor, and nothing in this Agreement shall be construed to give either Party the power or authority to act for, bind, or commit the other Party in any way. Nothing herein shall be construed to create the relationship of partners, principal and agent, or joint-venture partners between the Parties.

15.6 English Language; Governing Law. This Agreement was prepared in the English language, which language shall govern the interpretation of, and any dispute regarding, the terms of this Agreement. This Agreement and all disputes arising out of or related to this Agreement or any breach hereof shall be governed by and construed under the laws of the State of New York, without giving effect to any choice of law principles that would require the application of the laws of a different jurisdiction.

15.7 Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate originals by their duly authorized officers to be effective as of the Effective Date.

						
	MILLENNIUM PHARMACEUTICALS, INC.	SEATTLE GENETICS, INC.
	By:    /s/ Deborah Dunsire	By:    /s/ Clay B. Siegall
	Name: Deborah Dunsire	Name: Clay B. Siegall
	Title: President and CEO	Title: President and CEO

-Execution Page-
[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

EXHIBIT A

SGI PATENT RIGHTS

[***]

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EXHIBIT B
PRESS RELEASE

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For release:    Tuesday, December 15, 2009 
12:00 a.m. Pacific Time

SEATTLE GENETICS AND MILLENNIUM: THE TAKEDA ONCOLOGY COMPANY ANNOUNCE STRATEGIC COLLABORATION FOR NOVEL LATE STAGE LYMPHOMA PROGRAM BRENTUXIMAB VEDOTIN (SGN-35)

--Seattle Genetics to receive $60 million upfront payment and retain full commercialization rights to brentuximab vedotin in US and Canada; Takeda Group to commercialize in the rest of the world--

--Seattle Genetics to host conference call December 15, 2009 at 8:30 a.m. Eastern Time--

BOTHELL, Wash., CAMBRIDGE, Mass., and OSAKA, Japan, December 15, 2009 – Seattle Genetics, Inc. (Nasdaq: SGEN) and Millennium: The Takeda Oncology Company with its parent company Takeda Pharmaceutical Company Limited (TSE: 4502) today jointly announced that Seattle Genetics and Millennium have entered into an agreement to globally develop and commercialize brentuximab vedotin (SGN-35).
Brentuximab vedotin is an antibody-drug conjugate (ADC) targeting CD30 that is in late-stage clinical trials for the treatment of relapsed and refractory Hodgkin lymphoma (HL) and systemic anaplastic large cell lymphoma (ALCL).

Data from a pivotal phase II trial of brentuximab vedotin in relapsed or refractory HL, which is fully enrolled, are expected in the second half of 2010. The trial is being conducted under a special protocol assessment with the U.S. Food and Drug Administration (FDA) and is designed to provide the basis for regulatory submissions in the United States and Europe in 2011.

Under the collaboration, Seattle Genetics will receive an upfront payment of $60 million and retains full commercialization rights for brentuximab vedotin in the United States and Canada. The Takeda Group will have exclusive rights to commercialize the product candidate in all countries other than the United States and Canada. Seattle Genetics is entitled to receive progress- and sales-dependent milestone payments in addition to tiered double-digit royalties based on net sales of brentuximab vedotin within the Takeda Group’s licensed territories. Milestone payments to Seattle Genetics could total more than $230 million. Seattle Genetics and

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the Takeda Group will jointly fund worldwide development costs on a 50:50 basis. Development funding by the Takeda Group over the first three years of the collaboration is expected to be at least $75 million. In Japan, the Takeda Group will be solely responsible for development costs.

“This collaboration aligns with our goal of rapidly bringing brentuximab vedotin to patients worldwide. Takeda is an ideal collaborator given its global presence, demonstrated commitment to oncology, and experience in the sales and marketing of first-in-class, targeted therapies for unmet medical needs,” said Clay B. Siegall, Ph.D., President and Chief Executive Officer, Seattle Genetics. “Our retention of full commercial rights in the U.S. and Canada along with the financial terms from this agreement gives us a strong basis to begin building a commercial infrastructure for the planned launch of brentuximab vedotin. We expect to utilize this infrastructure in the future for other product candidates in our pipeline.

“The addition of the late-stage product candidate brentuximab vedotin to our oncology development pipeline supports our mission to develop innovative new medicines where there is a high unmet need for patients,” said Deborah Dunsire, M.D., President and CEO, Millennium. “This collaboration closely aligns with our growth strategy, which includes both internal and external opportunities. We are very excited to bring forward a novel medicine which will help us increase our reach in oncology throughout Europe and the rest of the world.”

ADCs are monoclonal antibodies that carry potent, cell-killing drugs targeted precisely to tumor cells. Seattle Genetics has developed proprietary technology employing synthetic, highly potent drugs that can be attached to antibodies through stable linker systems. The linkers are designed to be stable in the bloodstream and release the drugs under specific conditions once inside targeted cells. This approach is intended to spare non-targeted cells and thus reduce many of the toxic side effects of traditional chemotherapy. Earlier this year, Millennium obtained an exclusive license to Seattle Genetics’ ADC technology for an antigen expressed on solid tumors, as well as options for two other licenses.

About Brentuximab Vedotin
Brentuximab vedotin is an ADC targeting CD30 utilizing Seattle Genetics’ proprietary technology. Brentuximab vedotin is currently being investigated in patients with relapsed or refractory HL or systemic ALCL. Brentuximab vedotin has received orphan drug designation from the FDA and the European Medicines Agency for both HL and ALCL and has received Fast Track designation by the FDA for HL. In two separate phase I clinical trials, brentuximab vedotin achieved objective responses in greater than 50 percent of patients treated at higher dose levels, including greater than 30 percent with complete remissions. Brentuximab vedotin was generally well tolerated. The majority of adverse events were Grade 1 and 2, with the most clinically important events being fatigue, fever, peripheral neuropathy, diarrhea, nausea and neutropenia.

Conference Call Details
Seattle Genetics’ management will host a conference call and webcast to discuss the collaboration on December 15, 2009 at 5:30 a.m. Pacific Time (PT); 8:30 a.m. Eastern Time (ET). The live event will be available from Seattle Genetics’ website at

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www.seattlegenetics.com, under the Investors and News section, or by calling (877) 941-8632 (domestic) or (480) 629-9821 (international). The access code is 4193888. A replay of the discussion will be available beginning at approximately 7:30 a.m. PT on December 15, 2009 from Seattle Genetics’ website or by calling (800) 406-7325 (domestic) or (303) 590-3030 (international), using access code 4193888. The telephone replay will be available until approximately 8:00 a.m. PT on December 17, 2009.

About Seattle Genetics
Seattle Genetics is a clinical stage biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune disease. The company’s lead product candidate, brentuximab vedotin, is in a pivotal trial under a special protocol assessment with the FDA. In addition, Seattle Genetics has four other product candidates in ongoing clinical trials: lintuzumab (SGN-33), dacetuzumab (SGN-40), SGN-70 and SGN-75. Seattle Genetics has collaborations for its ADC technology with a number of leading biotechnology and pharmaceutical companies, including Genentech, Bayer, CuraGen, a subsidiary of Celldex Therapeutics, Progenics, Daiichi Sankyo, MedImmune, a subsidiary of AstraZeneca, and Millennium: The Takeda Oncology Company, as well as an ADC co-development agreement with Agensys, an affiliate of Astellas. More information can be found at www.seattlegenetics.com.

About Takeda Pharmaceutical Company Limited
Located in Osaka, Japan, Takeda is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders of the industry, Takeda is committed to striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products. Additional information about Takeda is available through its corporate website, www.takeda.com

About Millennium
Millennium: The Takeda Oncology Company, a leading biopharmaceutical company based in Cambridge, Mass., markets a first-in-class proteasome inhibitor, and has a robust clinical development pipeline of product candidates. Millennium Pharmaceuticals, Inc. was acquired by Takeda Pharmaceutical Company Ltd. in May, 2008. The Company’s research, development and commercialization activities are focused in oncology. Additional information about Millennium is available through its website, www.millennium.com

Forward-Looking Statements
Certain of the statements made in this press release are forward looking, such as those, among others, relating to the therapeutic potential and future clinical progress, regulatory approval and commercial launch of products utilizing Seattle Genetics’ ADC technology, including brentuximab vedotin. Actual results or developments may differ materially from those projected or implied in these forward-looking statements, including the milestones or royalties to be received by Seattle Genetics as a result of this collaboration. Factors that may cause such a difference include risks related to adverse clinical results as our

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brentuximab vedotin or our collaborators’ product candidates move into and advance in clinical trials, risks inherent in the regulatory approval process for pharmaceutical products and the risk that Seattle Genetics is not able to maintain the collaboration with the Takeda Group. More information about the risks and uncertainties faced by Seattle Genetics is contained in the Company’s Form 10-Q for the quarter ended September 30, 2009 filed with the Securities and Exchange Commission. Seattle Genetics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

# # #

Editors’ Note: This press release is also available under the Media section of Millennium’s website at www.millennium.com, and under the Investors and News section of Seattle Genetics’ website at www.seattlegenetics.com.

Contacts:
Seattle Genetics
Peggy Pinkston
+1 425-527-4160
ppinkston@seagen.com

Takeda
Seizo Masuda
+81 33 278 2037
Masuda_Seizo@takeda.co.jp

Millennium
Lauren Musto
+1 617-551-7848
Lauren.Musto@mpi.com

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EXHIBIT C

[***]

C-1
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EXHIBIT D

LICENSED PRODUCT

SGN-35 as described in the USAN published "Statement on a Nonproprietary Name Adopted by the USAN Council" for Brentuximab Vedotin and related information in the USAN application for Brentuximab Vedotin
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EXHIBIT E

[***]
E-1
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