Document:

EX-10.15

 Exhibit 10.15 
 Confidential Materials omitted and filed separately with the Securities and Exchange Commission. 
 Triple asterisks denote omissions. 
 EXECUTION COPY 

BI Contract No. 43032525 
 COLLABORATION AND LICENSE AGREEMENT 
 BY AND BETWEEN 

BOEHRINGER INGELHEIM INTERNATIONAL GMBH 
 AND 
 MACROGENICS, INC. 

OCTOBER 18, 2010 
  

 

 Confidential Materials omitted and filed separately with the Securities and Exchange
Commission. 
 Triple asterisks denote omissions. 

TABLE OF CONTENTS 
  

							
	 ARTICLE I DEFINITIONS
	  	 	2	  
		
	 ARTICLE II GOVERNANCE
	  	 	16	  
			
	 2.1
	  	      Project Leaders	  	 	16	  
	 2.2
	  	      Joint Steering Committee.	  	 	16	  
	 2.3
	  	      Subcommittees	  	 	17	  
	 2.4
	  	      Meetings	  	 	18	  
	 2.5
	  	      Decision-making.	  	 	18	  
	 2.6
	  	      Limitations on JSC Authority	  	 	19	  
		
	 ARTICLE III RESEARCH PROGRAM
	  	 	19	  
			
	 3.1
	  	      General.	  	 	19	  
	 3.2
	  	      Selection of Collaboration Targets.	  	 	20	  
	 3.3
	  	      Conduct of the Programs.	  	 	21	  
	 3.4
	  	      Research Target Profile; Lead Candidate Identification.	  	 	22	  
	 3.5
	  	      Start of Pre-Clinical Development Candidate Criteria; SOPD Candidate Identification.	  	 	23	  
	 3.6
	  	      Materials and Know-How Transfer.	  	 	24	  
	 3.7
	  	      Third Party Intellectual Property	  	 	25	  
	 3.8
	  	      Manufacturing of Research Material	  	 	25	  
	 3.9
	  	      Records and Reports.	  	 	25	  
		
	 ARTICLE IV DEVELOPMENT AND COMMERCIALIZATION OF PRODUCTS; DILIGENCE
	  	 	26	  
			
	 4.1
	  	      Responsibility for Development, Manufacturing and Commercialization.	  	 	26	  
	 4.2
	  	      Development and Commercialization Activities.	  	 	26	  
	 4.3
	  	      ***	  	 	27	  
	 4.4
	  	      Co-Development.	  	 	27	  
	 4.5
	  	      Co-Promotion.	  	 	28	  
		
	 ARTICLE V GRANTS OF RIGHTS
	  	 	29	  
			
	 5.1
	  	      Licenses to BI.	  	 	29	  
	 5.2
	  	      Recordation	  	 	29	  
	 5.3
	  	      Non-Exclusive Research License to MacroGenics	  	 	30	  
	 5.4
	  	      Sublicenses.	  	 	30	  
	 5.5
	  	      Covenant not to Sue	  	 	30	  
	 5.6
	  	      Rights Retained by the Parties.	  	 	30	  
	 5.7
	  	      Section 365(n) of the Bankruptcy Code	  	 	31	  
	 5.8
	  	      Exclusivity	  	 	31	  

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

							
		
	 ARTICLE VI PAYMENTS; ROYALTIES AND REPORTS
	  	 	32	  
			
	 6.1
	  	      Initial License Payment	  	 	32	  
	 6.2
	  	      Equity Investment	  	 	32	  
	 6.3
	  	      Programs Funding.	  	 	33	  
	 6.4
	  	      Development Milestone Payments.	  	 	34	  
	 6.5
	  	      Sales Milestone Payments.	  	 	35	  
	 6.6
	  	      Royalties	  	 	36	  
	 6.7
	  	      Reports; Payments	  	 	37	  
	 6.8
	  	      Books and Records; Audit Rights	  	 	37	  
	 6.9
	  	      Taxes	  	 	38	  
	 6.10
	  	      United States Dollars	  	 	38	  
	 6.11
	  	      Payment Method and Currency Conversion	  	 	38	  
	 6.12
	  	      Blocked Payments	  	 	39	  
	 6.13
	  	      Late Payments	  	 	39	  
		
	 ARTICLE VII PATENTS
	  	 	39	  
			
	 7.1
	  	      Ownership.	  	 	39	  
	 7.2
	  	      BI Prosecution and Maintenance of Patent Rights	  	 	40	  
	 7.3
	  	      MacroGenics Prosecution and Maintenance of Patent Rights	  	 	40	  
	 7.4
	  	      Prosecution and Maintenance of Joint Patent Rights and Collaboration DART Patent Rights	  	 	40	  
	 7.5
	  	      Third Party Infringement.	  	 	42	  
	 7.6
	  	      Patent Invalidity Claim.	  	 	43	  
	 7.7
	  	      Patent Term Extensions	  	 	44	  
	 7.8
	  	      Patent Marking	  	 	44	  
		
	 ARTICLE VIII CONFIDENTIALITY AND PUBLICATION
	  	 	44	  
			
	 8.1
	  	      Nondisclosure Obligation	  	 	44	  
	 8.2
	  	      Authorized Disclosure	  	 	44	  
	 8.3
	  	      Scientific Publications	  	 	45	  
	 8.4
	  	      Press Releases and Other Permitted Disclosures.	  	 	45	  
		
	 ARTICLE IX REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION
	  	 	47	  
			
	 9.1
	  	      Representations and Warranties of the Parties	  	 	47	  
	 9.2
	  	      Representations and Warranties of MacroGenics	  	 	47	  
	 9.3
	  	      No Other Warranties	  	 	48	  
	 9.4
	  	      Indemnification by BI	  	 	48	  
	 9.5
	  	      Indemnification by MacroGenics	  	 	48	  
	 9.6
	  	      Procedure	  	 	49	  
	 9.7
	  	      Insurance	  	 	49	  
	 9.8
	  	      No Consequential or Punitive Damages.	  	 	49	  

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

							
		
	 ARTICLE X TERM AND TERMINATION
	  	 	50	  
			
	 10.1
	  	      Term and Expiration	  	 	50	  
	 10.2
	  	      Termination.	  	 	50	  
	 10.3
	  	      Effect of Termination on Licenses.	  	 	51	  
	 10.4
	  	      Change of Control	  	 	53	  
	 10.5
	  	      Effect of Expiration or Termination; Survival.	  	 	53	  
		
	 ARTICLE XI DISPUTE RESOLUTION
	  	 	54	  
			
	 11.1
	  	      Seeking Consensus	  	 	54	  
	 11.2
	  	      Arbitration.	  	 	54	  
	 11.3
	  	      Jury Waiver	  	 	55	  
		
	 ARTICLE XII MISCELLANEOUS
	  	 	55	  
			
	 12.1
	  	      Governing Law	  	 	55	  
	 12.2
	  	      Waiver	  	 	55	  
	 12.3
	  	      Notices	  	 	55	  
	 12.4
	  	      Entire Agreement; Amendment	  	 	56	  
	 12.5
	  	      Headings	  	 	56	  
	 12.6
	  	      Severability	  	 	56	  
	 12.7
	  	      Assignment	  	 	57	  
	 12.8
	  	      Counterparts	  	 	57	  
	 12.9
	  	      Force Majeure	  	 	57	  
	 12.10
	  	      Third-Party Beneficiaries	  	 	57	  
	 12.11
	  	      Relationship of the Parties	  	 	57	  
	 12.12
	  	      Performance by Affiliates	  	 	58	  
	 12.13
	  	      Construction	  	 	58	  
	 12.14
	  	      Create Act	  	 	58	  

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Confidential Materials omitted and filed separately with the Securities and Exchange
Commission. 
 Triple asterisks denote omissions. 

SCHEDULES 
  

			
	Schedule 1.5	  	BI Exclusive Targets
		
	Schedule 1.28	  	DART Platform
		
	Schedule 1.47	  	Initial Collaboration Targets
		
	Schedule 1.50	  	Draft Invoice
		
	Schedule 1.58	  	MacroGenics Patent Rights
		
	Schedule 1.77	  	RTP Criteria Template
		
	Schedule 1.81	  	SOPD Candidate Criteria Template
		
	Schedule 4.5(b)(I)	  	Co-Promotion Terms and Conditions
	Schedule 4.5(b)(II)	  	Dispute Resolution Procedures
		
	Schedule 8.4	  	Press Release

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 COLLABORATION AND LICENSE AGREEMENT 

This Collaboration and License Agreement (this “Agreement”), is entered into as of October 18, 2010 (the
“Effective Date”), by and between Boehringer Ingelheim International GmbH, a corporation organized and existing under the laws of Germany and having a principal office located at Binger Strasse 173, 55216 Ingelheim am Rhein, Germany
(“BI”), and MacroGenics, Inc. a corporation organized and existing under the laws of the State of Delaware and having a principal office located at 1500 East Gude Drive Rockville, MD 20850, USA (“MacroGenics”).

 INTRODUCTION 
 WHEREAS, MacroGenics has developed the DART Platform (as defined below), which is focused on dual specificity “antibody-like” therapeutic proteins capable of targeting multiple different
epitopes with a single recombinant molecule, and certain intellectual property useful in connection with the application of the DART Platform; 
 WHEREAS, BI is a company that is a member of the Boehringer Ingelheim group of companies which group possesses expertise and resources relating to the research, development, manufacturing and marketing of
pharmaceutical and biopharmaceutical products; 
 WHEREAS BI has developed certain know-how and expertise relating to the same
and holds certain intellectual property covering the same; 
 WHEREAS, BI has developed certain know-how and expertise in the
research and development of therapeutic agents for the prevention and treatment of a variety of human and animal diseases, and holds certain intellectual property covering the same; 

WHEREAS, MacroGenics and BI wish to enter into an agreement to collaborate on and to use their respective know-how and expertise for the
generation, formatting, testing and development of DART Platform products against a series of Collaboration Targets (as defined below), which BI will have exclusive rights to develop, manufacture and commercialize; 

WHEREAS, MacroGenics and BI may enter a future co-promotion agreement in the event that MacroGenics exercises its non-transferable option
to co-promote in the United States *** whose initial indication is Detailed by *** and 
 WHEREAS, MacroGenics and BI or any of
its Affiliates wish to enter a stock purchase investment, whereby BI or any of its Affiliates would purchase Preferred Stock in MacroGenics, upon the terms and conditions set forth in a definitive stock purchase agreement. 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt of
which is hereby acknowledged, MacroGenics and BI agree as follows: 

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE I 
 DEFINITIONS 
 Unless specifically set forth to the contrary herein,
the following terms, whether used in the singular or plural, shall have the respective meanings set forth below: 
 1.1
“Accounting Standards”. Accounting Standards means, with respect to MacroGenics and its Affiliates, generally accepted accounting principles as practiced in the United States or, to the extent applicable, IFRS (International
Financial Reporting Standards) or with respect to BI and its Affiliates German HGB (Handelsgesetzbuch), in each case as they exist from time to time, consistently applied. 
 1.2 “Affiliate”. Affiliate means with respect to a Party, any entity that directly or indirectly controls, is controlled by, or is under common control with such Party. As used in this
definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or
otherwise. For purposes of this definition, “control” shall be presumed to exist if one of the following conditions are met: (a) in the case of corporate entities, direct or indirect ownership of more than fifty percent (50%) of
the stock or shares having the right to vote for the election of directors, and (b) in the case of non-corporate entities, direct or indirect ownership of more than fifty percent (50%) of the equity interest with the power to direct the
management and policies of such non-corporate entities. 
 1.3 “Annual Net Sales”. Annual Net Sales means
worldwide Net Sales of Products by BI or its Affiliates or Sublicensees in any Calendar Year on a Product-by-Product basis, or in the first year and last year of the Royalty Term, the portion of such Calendar Year during which the Royalty Term is in
effect. 
 1.4 “Antibody(ies)”. Antibody(ies) means a molecule which comprises or contains: (a) one or
more immunoglobulin variable domains; (b) fragments, variants, modifications or derivatives of such immunoglobulin variable domains irrespective of origin or source; or (c) the nucleic acid consisting of a sequence of nucleotides encoding
(or complementary to a nucleic acid encoding) the foregoing molecules in (a) or (b). The term “Antibody” shall include any monospecific antibodies and less than full-length antibody forms such as Fv, Fab, and F(ab’). 

1.5 “BI Exclusive Targets” BI Exclusive Targets means the *** set forth on Schedule 1.5 which are available
Targets for Programs under this Agreement. 
 1.6 “BI Biopharmaceutical Technology” BI Biopharmaceutical
Technology means with respect to any Lead Candidate, SOPD Candidate or Product, any Patent or Know-How conceived or generated solely by employees, agents or service providers of BI or its Affiliates or Sublicensees and that result from
biopharmaceutical activities performed under this Agreement, including ***for ***and ***. 

  
 2 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.7 “BI Intellectual Property”. BI Intellectual Property means the BI
Know-How and the BI Patent Rights. 
 1.8 “BI Know-How”. BI Know-How means Know-How that (a) is Controlled
by BI or its Affiliates as of the Effective Date or during the Term, and (b) is necessary or useful to conduct any Program or to research, Develop, make and have made, use, offer for sale, sell or import a Collaboration DART or a Product. BI
Know-How does not include Collaboration DART Know-How or Joint Know-How. 
 1.9 “BI Patent Rights”. BI Patent
Rights means any Patent Rights Controlled by BI or its Affiliates as of the Effective Date or during the Term that describe or claim BI Know-How. BI Patent Rights do not include Collaboration DART Patent Rights or Joint Patent Rights. 

1.10 “Business Day”. Business Day means a day that is not a Saturday, Sunday or a day on which banking institutions in
Washington, DC, USA or Ingelheim am Rhein, Germany are authorized by Law to remain closed. 
 1.11 “Calendar
Quarter”. Calendar Quarter means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31. 

1.12 “Calendar Year”. Calendar Year means each successive period of twelve (12) months commencing on January 1
and ending on December 31. 
 1.13 “Change of Control”. Change of Control means any of the following
events (a) the acquisition by any person or group or entity (other than any venture capital or other institutional investor) of “beneficial ownership” (as hereinafter defined) directly or indirectly, of more than fifty percent
(50%) of the shares of MacroGenics’ capital stock or other voting securities, the holders of which have general voting power under ordinary circumstances to elect at least a majority of MacroGenics’ board of directors or equivalent
body (the “Voting Stock”); (b) the approval by the shareholders of MacroGenics of a merger, share exchange, reorganization, consolidation or other similar transaction of MacroGenics and the consummation of such transaction (a
“Transaction”), other than a Transaction which would result in the beneficial owners of Voting Stock of MacroGenics immediately prior thereto continuing to beneficially own (either by such voting Stock remaining outstanding or being
converted into voting securities of the surviving or resulting entity) more than fifty percent (50%) of the Voting Stock of MacroGenics or such surviving or resulting entity immediately after such Transaction; or (c) the approval by the
shareholders of MacroGenics of a complete liquidation or dissolution of MacroGenics or a sale or disposition of all or substantially all of the assets of MacroGenics and the consummation of such Transaction. For the purpose of this definition,
“beneficial ownership” shall mean ownership of a security by any person or group or entity who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power which
includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which includes the power to dispose or to direct the disposition of such security. Change of Control shall not include any public offering of
the shares of MacroGenics. 

  
 3 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.14 “Clinical Development Costs”. Clinical Development Costs means the
costs and expenses incurred by or on behalf of a Party that are specific to the conduct of *** for a Product. Clinical Development Costs shall include *** 
 1.15 “Clinical Trial(s)”. Clinical Trial(s) means a Phase I Clinical Trial, a Phase II Clinical Trial, a Phase III Clinical Trial, and/or a Phase IV Clinical Trial. 

1.16 “Collaboration DART”. Collaboration DART means any (a) molecule created from (i) any MacroGenics
Collaboration Antibody or (ii) any Antibody provided by BI under this Agreement, in each case using the DART Platform or (b) derivative thereof, in each case that is Directed to a Collaboration Target. 

1.17 “Collaboration DART Know-How”. Collaboration DART Know-How means any Know-How created by or on behalf of
MacroGenics or BI or their respective Affiliates during the Research Term in the conduct of any Program that is specifically related to a Collaboration DART and any Joint Know-How that is specifically related to a Collaboration DART. However ***
“Collaboration DART Know-How” does not include (a) Know-How specifically related to improvements to the DART Platform *** (b) Know-How that is *** (c) Know-How specifically related to the *** (d) any Antibody and any
related Know-How created outside the conduct of any Program and provided to MacroGenics or its Affiliates by BI or its Affiliates under this Agreement; and (e) any Antibody and any related Know-How created outside the conduct of any Program and
provided to BI or its Affiliates by MacroGenics or its Affiliates under this Agreement. 
 1.18 “Collaboration DART
Intellectual Property”. Collaboration DART Intellectual Property means the Collaboration DART Know-How and Collaboration DART Patent Rights. 
 1.19 “Collaboration DART Patent Rights”. Collaboration DART Patent Rights means any Patent Rights filed after the Effective Date by MacroGenics, BI or their respective Affiliates or the
Joint Counsel that specifically describe or claim Collaboration DART Know-How, including Patent Rights that specifically describe or claim a Collaboration DART. 
 1.20 “Collaboration Target”. Collaboration Target means Dual Target Combinations ***with *** selected by BI and agreed to by the Parties for inclusion in the Programs in
accordance with Section 3.2. 
 1.21 “Collaboration Target List”. Collaboration Target List means the list
of all Collaboration Targets, as such list may be updated from time to time in accordance with Section 3.2. 
 1.22
“Combination Product”. Combination Product means a pharmaceutical formulation containing as its active ingredients both a Product and one or more other therapeutically active ingredients. 

1.23 “Commercially Reasonable Efforts”. Commercially Reasonable Efforts means the efforts required in order to carry out
a task in a diligent and sustained manner without undue interruption or delay, which level is at least commensurate with the level of effort that a 

  
 4 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Party would devote to a product of similar market potential and having similar commercial and scientific advantages and disadvantages resulting from its own research efforts or to which it has
rights, taking into account its safety and efficacy, regulatory status, the competitiveness of the marketplace, its proprietary position, pricing, reimbursement, launching strategy and other market-specific factors, and all other relevant factors.

 1.24 “Commercialization” or “Commercialize”. Commercialization or Commercialize means any
activities directed to obtaining pricing and/or reimbursement approvals, marketing, promoting, distributing, importing, offering to sell, and/or selling a product. 
 1.25 “Confidential Information”. Confidential Information means any and all information and data, including all BI Know-How, MacroGenics Know-How, Collaboration DART Know-How and Joint
Know-How, and all other scientific, pre-clinical, clinical, regulatory, manufacturing, marketing, financial and commercial information or data, whether communicated in writing or orally or by any other method, which is provided by one Party to the
other Party in connection with this Agreement or the Prior Confidentiality Agreement. Notwithstanding the foregoing, Confidential Information excludes information that, in each case as demonstrated by competent written documentation: 

(a) is publicly disclosed and made generally available to the public by the disclosing Party, either before or after it becomes known to
the receiving Party; 
 (b) was known to the receiving Party, without obligation to keep it confidential, prior to the date of
disclosure by the disclosing Party; 
 (c) is subsequently disclosed to the receiving Party by a Third Party lawfully in
possession thereof without obligation to keep it confidential and without a breach of such Third Party’s obligations of confidentiality; 
 (d) has been publicly disclosed or made generally available to the public other than through any act or omission of the receiving Party in breach of this Agreement; or 

(e) has been independently developed by the receiving Party without the aid, application or use of the disclosing Party’s
Confidential Information (the competent written proof of which must be contemporaneous with such independent development). 

1.26 “Control”. Control means, with respect to any item of or right under Patent Rights or Know-How, subject to
Section 3.7, the possession of (whether by ownership or license, other than pursuant to this Agreement) the ability of a Party to grant access to, or a license or sublicense of, such items or right as provided for herein without violating the
terms of any agreement or other arrangement with any Third Party existing prior to the time such Party would be required hereunder to grant the other Party such access or license or sublicense. 

1.27 “Cover”, “Covering” or “Covered”. Cover, Covering or Covered means, with respect
to a product, technology, process or method that, in the absence of ownership of or a license granted under a Valid Claim, the manufacture, use, offer for sale, sale or importation of 

  
 5 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
such product or the practice of such technology, process or method would infringe such Valid Claim (or, in the case of a Valid Claim that has not yet issued, would infringe such Valid Claim if it
were to issue). 
 1.28 “DART Platform”. DART Platform means the Dual Affinity Re-Targeting platform described
in Schedule 1.28. 
 1.29 “Detail”. Detail means a sales presentation by a professional sales representative to
a target physician involved in prescribing the Product in which the primary purpose is to discuss the benefits and features of the Product. 
 1.30 “Default” means with respect to a Party that (i) any representation or warranty of such Party set forth herein shall have been untrue in any material respect when made or
(ii) such Party shall have failed to perform any material obligation set forth in this Agreement. 
 1.31
“Development” or “Develop” means, with respect to a compound, preclinical and clinical drug development activities, including, among other things: test method development and stability testing, toxicology,
formulation, process development, manufacturing scale-up, development-stage manufacturing, quality assurance/quality control procedure development and performance with respect to clinical materials, statistical analysis and report writing and
clinical studies, regulatory affairs, and all other pre-Regulatory Approval activities. When used as a verb, “Develop” means to engage in Development. Development shall include any Phase IV Clinical Trials or other post-approval studies
required by a Regulatory Authority. 
 1.32 “Directed”. Directed means binding specifically to a Target, as
measured by a cellular or biochemical assay. 
 1.33 “Dual Target Combination”. Dual Target Combination means
(i) a combination of two (2) different Targets or (ii) a combination of two (2) different epitopes on the same Target. 
 1.34 “EMA”. EMA means The European Medicines Agency, or any successor agency. 
 1.35 “European Union”. European Union means the countries that are members of the European Union, as redefined from time to time. 

1.36 “FDA” or “Food and Drug Administration”. FDA or Food and Drug Administration means the United
States Food and Drug Administration, or any successor agency. 
 1.37 “Field”. Field means any and all uses,
including the use of a Product for the diagnosis, treatment, palliation and/or prevention of a disease or medical condition in humans and/or animals. 
 1.38 “Filing”. Filing means the acceptance by the applicable Regulatory Authority of a NDA for filing. 

  
 6 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.39 “First Commercial Sale”. First Commercial Sale means, with respect to
any Product, the first sale for end use or consumption of such Product in a country after all required approvals, including Regulatory Approval, have been granted by the Regulatory Authority of such country. For avoidance of doubt, sales for test
marketing, sampling and promotional uses, clinical trials purposes or compassionate use shall not constitute a First Commercial Sale. 
 1.40 “FTE”. FTE means *** hours of work devoted to or in support directly of (a) a Program in accordance with a Research Plan that is carried out by one or more qualified scientific
or technical employees or full-time contract personnel of MacroGenics or its Affiliates, measured in accordance with MacroGenics’ normal time allocation practices from time to time. Overtime, and work on weekends, holidays and the like shall
not be counted with any multiplier (e.g. time-and-a-half or double time) toward the number of hours that are used to calculate the FTE contribution. The portion of an FTE billable by a Party for one (1) individual during a Calendar Quarter
shall be determined by dividing the number of hours worked directly by said individual on the Program, during such accounting period by *** hours per Calendar Quarter. 
 1.41 “FTE Rate”. FTE Rate means *** per FTE, increased or decreased annually by the percentage increase or decrease in the Consumer Price Index–Urban Wage Earners and Clerical
Workers, U.S. City Average, All Items, 1982-84 = 100, published by the United States Department of Labor, Bureau of Labor Statistics (or its successor equivalent index) in the United States (“CPI”) as of December 31 of the then
most recently ended calendar year over the level of the CPI on December 31, 2010 (i.e., the first such increase or decrease would occur on January 1, 2012). The FTE Rate for each FTE includes compensation for all laboratory supplies
and equipment, equipment maintenance costs, utilities, waste removal and a pro rata allocation of general and administrative expenses plus facilities expenses, including allocated building operating costs, allocated depreciation, and repairs and
maintenance. 
 1.42 “Generic Competition”. Generic Competition means, with respect to a given Calendar Quarter
with respect to a Product in any country, that during such Calendar Quarter, one (1) or more Third Parties sell in such country a Generic Product, such Generic Product shall be commercially available in such country and such Generic Product
shall have, in the aggregate, a *** or more market share of the aggregate of Products and Generic Products (based on data provided by IMS Health Incorporated, Fairfield, Connecticut (together with its affiliates, “IMS”) as
measured ***, or if such data is not available, the Parties shall agree upon a methodology for estimating the percentage of *** of Generic Products in such country. 
 1.43 “Generic Products”. Generic Products means, with respect to a particular Product commercialized by BI in a particular country, any product (other than Products commercialized by BI,
its Affiliates or Sublicensees pursuant to this Agreement) that either (a) is a “follow-on biologic” (FOB) or biosimilar or equivalent version to a Product, as defined by the competent Regulatory Authority, and administered in an
equivalent dosage form as such Product or (b) for which a Third Party has received Regulatory Approval (based upon then-current applicable Laws governing approval of biological products) whose application for approval relies to a large extent
(but not exclusively) on data generated by BI, including Regulatory Approval under section 505(b)(2) of the Federal Food Drug, and Cosmetic Act. 

  
 7 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.44 “GLP Toxicology Study”. GLP Toxicology Study means a toxicology study
that is conducted in compliance with the then-current good laboratory practice standards promulgated or endorsed by the FDA, as defined in U.S. 21 C.F.R. Part 58 (or such other comparable regulatory standards in jurisdictions outside the U.S. to the
extent applicable to the relevant toxicology study, as they may be updated from time to time) and is required to meet the requirements for filing an IND. 
 1.45 “Governmental Authority”. Governmental Authority means any United States federal, state or local or any foreign government, or political subdivision thereof, or any multinational
organization or authority or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division
thereof), or any governmental arbitrator or arbitral body. 
 1.46 “IND”. IND means an Investigational New Drug
application or similar application or submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority. 

1.47 “Initial Collaboration Targets”. Initial Collaboration Targets means the Collaboration Targets set forth on
Schedule 1.47. 
 1.48 “Initial Research Term”. Initial Research Term means the period commencing on the
Effective Date and ending on the ***of the Effective Date. 
 1.49 “Invention”. Invention means any new
and useful process, article of manufacture, compound, composition of matter, formulation or apparatus, or any improvement thereof, patentable or unpatentable, discovery or finding. 

1.50 “Invoice”. Invoice means an original invoice sent by MacroGenics to BI with respect to payment due hereunder
substantially in the form attached hereto as Schedule 1.50. 
 1.51 “Joint Ownership” or “Jointly
Owned” or “Jointly Own”. Joint Ownership or Jointly Owned or Jointly Owns means that each Party shall own a fifty percent (50%) undivided interest in the relevant Invention, Know-How or Patent Right. 

1.52 “Know-How”. Know-How means (a) any scientific or technical information, results and data of any type
whatsoever, in any tangible or intangible form whatsoever, that is not in the public domain or otherwise publicly known, including databases, practices, methods, techniques, specifications, formulations, formulae, protein sequences, DNA sequences,
knowledge, know-how, skill, experience, test data including pharmacological, medicinal chemistry, biological, chemical, biochemical, toxicological and clinical test data, analytical and quality control data, stability data, studies and procedures,
and manufacturing process and development information, results and data, and (b) any biological, chemical, or physical materials that are not in the public domain or otherwise available to the public; all to the extent not claimed or disclosed
in a published Patent Right. 

  
 8 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.53 “Law”. Law means all laws, statutes, rules, codes, regulations,
orders, judgments or ordinances applicable to the Parties, this Agreement or the activities contemplated hereunder. 
 1.54
“Lead Candidate”. Lead Candidate means a Collaboration DART which meets the Research Target Profile and has been accepted by BI, or is otherwise deemed a Lead Candidate in accordance with Section 3.4(d). 

1.55 “MacroGenics Collaboration Antibodies”. MacroGenics Collaboration Antibodies means Antibodies either
(a) created by MacroGenics for the purposes of any Program, or (b) provided by MacroGenics in its sole discretion if such Antibodies were either existing and Controlled by MacroGenics prior to the Effective Date or created or acquired by
MacroGenics after the Effective Date outside of the conduct of any Program. 
 1.56 “MacroGenics Intellectual
Property”. MacroGenics Intellectual Property means the MacroGenics Know-How and the MacroGenics Patent Rights. 
 1.57
“MacroGenics Know-How”. MacroGenics Know-How means Know-How that is (a) Controlled by MacroGenics as of the Effective Date or during the Term, and (b) necessary or useful to conduct any Program or for BI to research,
Develop, make and have made, use, offer for sale, sell or import a Collaboration DART or a Product. MacroGenics Know-How does not include *** created by MacroGenics for the purposes of any Program, ***. 

1.58 “MacroGenics Patent Rights”. MacroGenics Patent Rights means any Patent Rights Controlled by MacroGenics as of the
Effective Date or during the Term that describe or claim MacroGenics Know-How, and are necessary or useful to conduct any Program or for BI to research, Develop, make and have made, use, offer for sale, sell or import a Collaboration DART or a
Product. MacroGenics Patent Rights include the Patent Rights listed on Schedule 1.58. MacroGenics Patent Rights do not include Collaboration DART Patent Rights or Joint Patent Rights. 

1.59 “Major EU Country”. Major EU Country means any of the following countries: *** 

1.60 “Major Country”. Major Country means any of the following: *** 

1.61 “MHW”. MHW means the Japanese Ministry of Health and Welfare, or any successor agency. 

1.62 “NDA”. NDA means a New Drug Application or Biologics License Application, filed with the FDA and/or any other
application required for the purpose of marketing or selling or using a therapeutic or prophylactic product to be filed with a governmental agency in a non-U.S. country or group of countries, including a Product License Application or Marketing
Authorization in the European Union. 

  
 9 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.63 “Net Sales”. Net Sales means the gross amount of sales of Products
invoiced by BI, its Affiliates and Sublicensees to unaffiliated Third Parties, less: 
 (a) sales returns and allowances
actually paid, granted or accrued, including trade, quantity and cash discounts and any other adjustments, including those granted on account of price adjustments or billing errors; 

(b) rejected goods, damaged or defective goods, recalls, returns; 

(c) rebates, chargeback rebates, compulsory rebates, reimbursements or similar payments granted or given to wholesalers or other
distributors, buying groups, health care insurance carriers or other institutions; 
 (d) adjustments arising from consumer
discount programs or other similar programs; 
 (e) non collectable receivables related to Product; 

(f) customs or excise duties, sales tax, consumption tax, value added tax, and other taxes (except income taxes); or 

(g) charges for packing, freight, shipping and insurance (to the extent that BI, its Affiliates and Sublicensees bear such
costs).
 Each of the foregoing deductions shall be determined as incurred in the ordinary course of business in type and amount consistent with
good industry practice and in accordance with the applicable Accounting Standards of the selling party on a basis consistent with the applicable selling party’s audited consolidated financial statements. For sake of clarity and avoidance of
doubt, sales by BI, its Affiliates or Sublicensees of a Product to a permitted Recognized Agent or Third Party Distributor of such Product in a given country shall be considered a sale to a Third Party customer. All such discounts, allowances,
credits, rebates, and other deductions shall be fairly and equitably allocated to the Products and other products of BI and its Affiliates and Sublicensees such that the Product does not bear a disproportionate portion of such deductions.

 Supply of Products other than for cash shall be substituted to price on bona fide arms length sales; whereas the price shall be the average
price of sold product for cash during the period based on quantity of drug substance sold. 
 Any Products used for promotional or advertising
purposes (in reasonable and customary amounts) or used for clinical trials or other research purposes shall not be included in Net Sales. Donations for charity reasons shall also not be Net Sales. 

“Recognized Agent” or “Third Party Distributor” for the purpose of this definition shall mean any Third Party which
distributes (but does not Develop) Products directly to customers in countries where BI has no Affiliate or Sublicensee. 

  
 10 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 In the event a Product is sold as a Combination Product, Net Sales of the Combination
Product will be calculated as follows: 
 (1) If Product and other active component(s) within such Combination Product are sold separately, Net
Sales will be calculated by multiplying the total Net Sales (as described above) of the Combination Product by the fraction A/(A+B), where A is the average gross selling price in the applicable country in the Territory of the Product sold separately
in the same formulation and dosage, and B is the sum of the average gross selling prices in the applicable country in the Territory of such other active component(s) sold separately in the same formulation and dosage, during the applicable Calendar
Year.
 (2) If the Product within the particular Combination Product is sold independently of the other active component(s) therein, but the
average gross selling price of such other active component(s) cannot be determined, Net Sales will be calculated by multiplying the total Net Sales (as described above) of the Combination Product by the fraction A/C where A is the average gross
selling price of such Product sold independently and C is the average gross selling price of the entire Combination Product. 
 (3) If the other
active component(s) within the Combination Product are sold independently of the Product therein, but the average gross selling price of such Product cannot be determined, Net Sales will be calculated by multiplying the total Net Sales (as described
above) of the Combination Product by the fraction [1-B/C], where B is the average gross selling price of such other active component(s) and C is the average gross selling price of the entire Combination Product.

(4) If the Product and other active component(s) within the Combination Product are not sold separately, or if they are sold separately but the average
gross selling price of neither such Product and other active component(s) within can be determined, Net Sales of the Combination Product shall be equal to Net Sales of the Combination Product multiplied by a mutually agreed percentage. 

With respect to such other active component(s), the average gross selling price for a particular product shall be calculated for each Calendar Year by
dividing the sales amount by the units of such product, as published by IMS or another mutually agreed independent source. 
 For purposes of
the foregoing, in the initial Calendar Year during which a Combination Product is sold, a forecasted average gross selling price shall be used for the Product and other active component(s) therein, to be determined in good faith mutually by the
Parties. Any over or under payment due to a difference between forecasted and actual average gross selling prices shall be paid or credited in the first royalty payment of the following Calendar Year. In the following Calendar Year the average gross
selling price of both the Product and the other active component(s) included in the Combination Product in the previous year shall apply. 
 1.64 “Party” and “Parties”. Party means BI or MacroGenics individually, and Parties means BI and MacroGenics collectively. 

1.65 “Patent Rights”. Patent Rights means patents, patent applications and/or provisional patent applications, utility
models and utility model applications, design patents or registered industrial designs and design applications or applications for registration of industrial designs, petty patents, innovation patents, patents of addition, inventor’s
certificates and all substitutions, divisionals, continuations, continuation-in-part applications, continued prosecution applications, requests for continued examinations, reissues, renewals, reexaminations and extensions and supplementary
protection certificates granted in relation thereto, in any country of the world. For clarity, Patent Rights shall include any Patent Rights that claim priority to or common priority with such Patent Rights. 

  
 11 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.66 “Phase I Clinical Trial”. Phase I Clinical Trial means a
human clinical trial in any country that meets the requirements of 21 CFR §312.21(a) or a similar clinical study in a country other than the United States. Each Phase I Clinical Trial shall be deemed commenced upon dosing of the first
participant in such trial. 
 1.67 “Phase II Clinical Trial”. Phase II Clinical Trial means a human
clinical trial in any country that meets the requirements of 21 CFR §312.21(b) or a similar clinical study in a country other than the United States. Each Phase II Clinical Trial shall be deemed commenced upon dosing of the first
participant in such trial. 
 1.68 “Phase III Clinical Trial”. Phase III Clinical Trial means a human
clinical trial in any country in the Territory that meets the requirements of 21 CFR §312.21(c) or a similar clinical study in a country other than the United States. Each Phase III Clinical Trial shall be deemed commenced upon dosing of
the first participant in such trial. 
 1.69 “Phase IV Clinical Trial”. Phase IV Clinical Trial means a
post-registrational Clinical Trial conducted in any country or countries and required as a condition to, or for the maintenance of, any Regulatory Approval for a Product. 
 1.70 “Prior Confidentiality Agreement”. Prior Confidentiality Agreement means the Confidentiality Agreements between MacroGenics and Boehringer Ingelheim Pharmaceuticals, Inc, dated
*** 
 1.71 “Product”. Product means any preparation in final form, either for sale by prescription,
over-the-counter or any other method, or for administration to human patients or to animals in Clinical Trials, for any and all uses, which preparation contains a Collaboration DART. All references to Products in this Agreement shall be deemed to
include Combination Products. 
 1.72 “Program”. Program means a program conducted pursuant to this Agreement
and directed to the research, Development, manufacturing and Commercialization of Collaboration DARTs and Products which bind to the same specific Collaboration Target. 
 1.73 “Prosecution and Maintenance”. Prosecution and Maintenance means, with respect to a Patent Right, the preparing, filing, prosecuting and maintenance of such Patent Right, as well as
re examinations, reissues and the like with respect to such Patent Right, together with the conduct of interferences, the defense of oppositions and other similar proceedings with respect to the particular Patent Right; and “Prosecute and
Maintain” shall have the correlative meaning. 
 1.74 “Regulatory Approval”. Regulatory Approval means
the technical, medical and scientific licenses, registrations, authorizations and approvals (including approvals of NDAs and labeling approvals) of any national, supra-national, regional, state or local regulatory agency, department, bureau,
commission, council or other governmental entity, necessary for the distribution, marketing, promotion, offer for sale, use, import, export or sale of Product(s) in a regulatory jurisdiction. 

  
 12 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.75 “Regulatory Authority”. Regulatory Authority means any applicable
government regulatory authority involved in granting approvals for the manufacturing, marketing, reimbursement and/or pricing of a Product in the Territory, including the FDA, EMA and MHW (in each case as applicable), and any successor governmental
authority having substantially the same function. 
 1.76 “Research Plan”. Research Plan means, with respect to
each Program, a research plan developed by the Parties that sets forth the activities to be undertaken during the Research Term with respect to such Program, including the assignment of each Party’s responsibilities and the allocated number of
MacroGenics FTEs in the course of such Program with respect to each Collaboration DART in such Program through ***, applicable RTP criteria, criteria for selecting Antibodies for the Collaboration DART, Materials to be provided by each Party and the
number of Lead Candidates to be developed under each Program, which research plan which may be amended from time to time upon the agreement of the JSC. 
 1.77 “Research Target Profile” or “RTP”. Research Target Profile or RTP means for any Collaboration DART in a Program the written, quantifiable criteria agreed to by the
Parties upon the commencement of such Program using the format as set forth in Schedule 1.77 (which may be amended from time to time upon mutual agreement of the Parties) and included in the Research Plan for such Program. 

1.78 “Research Term”. Research Term means the Initial Research Term and, if applicable, the Extended Research Term.
 
 1.79 “Senior Executives”. Senior Executives means, in the case of MacroGenics, the Chief Executive
Officer of MacroGenics (or a senior executive officer designated by the Chief Executive Officer of MacroGenics) and in the case of BI, depending on the actual status of the Product, the board member responsible for research, development and medicine
or the board member responsible for marketing and sales; or in each case such individual’s nominated designee, who is a member of BI’s senior management with appropriate decision making authority. 

1.80 “Start of Pre-Clinical Development Candidate” or “SOPD Candidate”. Start of Pre-Clinical
Development Candidate or SOPD Candidate means each Collaboration DART that has been accepted by BI in accordance with Section 3.5. 
 1.81 “Start of Pre-Clinical Development Candidate Criteria” or “SOPD Candidate Criteria”. Start of Pre-Clinical Development Candidate Criteria or SOPD Candidate Criteria
means the *** (using the format as set forth in Schedule 1.81 (which may be amended from time to time upon mutual agreement of the Parties)) after the first Collaboration DART in such Program has been deemed a Lead Candidate and included in the
Research Plan for such Program. 

  
 13 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.82 “Sublicensee”. Sublicensee means a Third Party to whom BI (or its
Affiliate) has granted a license or sublicense under the MacroGenics Intellectual Property, Collaboration DART Intellectual Property and/or Joint Intellectual Property to research, Develop, make and have made, offer for sale, sell or import a
Product; provided, however, that a Sublicensee shall not include any distributor, dealer or reseller. 
 1.83
“Target”. Target means (a) an antigen composed of a polypeptide, a complex or more than one polypeptide or a post-translational modification of a polypeptide (e.g., glycosylation, phosphorylation, etc.) that is recognized by an
Antibody through direct binding to such antigen; or (b) a gene encoding an antigen and the products encoded by such gene, including any homologues, variants, alternatively spliced variants, mutants, deletions or fragments or partial sequences
of such antigen. 
 1.84 “Terminated Product”. Terminated Product means (a) with respect to the
termination of a Program pursuant to Section 10.2(b), each Collaboration DART and Product included in such Program; and (b) with respect to termination of this Agreement in its entirety, all Collaboration DARTs and Products. 

1.85 “Terminated Target”. Terminated Target means (a) the Collaboration Target to which a Terminated Product is
Directed; or (b) any Collaboration Target that is removed from the Collaboration Target List pursuant to Section 3.2(d). 
 1.86 “Territory”. Territory means all countries in the world. 

1.87 “Third Party”. Third Party means an entity other than BI and its Affiliates, and MacroGenics and its Affiliates.

 1.88 “Valid Claim”. Valid Claim means (a) a claim of an issued patent that has not expired or been
abandoned, or been revoked, held invalid or unenforceable by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment from which no appeal was taken within the allowable time
period) or (b) a claim within a patent application which application has not been pending for *** from the date of its priority filing date and which claim has not been revoked, cancelled, withdrawn, held invalid or abandoned or finally
determined to be unallowable in a decision from which an appeal cannot or can no longer be taken. 
 1.89 Each of the following
definitions is set forth in the section of this Agreement indicated below: 
  

			
	 Definition:
	  	Section:
	 Acquiring/Acquired Party
	  	5.8(c)(iii)
	 Additional Cure Period
	  	10.2(a)
	 Agreement
	  	Preamble
	 Audited Party
	  	6.8
	 Auditing Party
	  	6.8
	 Bankruptcy Code
	  	5.7
	 BI
	  	Preamble

  
 14 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

			
	 Definition:
	  	Section:
	 BI Indemnitees
	  	9.5
	 Clinical Development Plan
	  	4.2(a)
	 Co-Development Budget
	  	4.4(a)
	 Co-Development Obligations
	  	4.4(b)(i)
	 Co-Development Product
	  	4.4(a)
	 Commercialization Plan
	  	4.5(a)
	 Co-Promotion Option
	  	4.5(a)
	 CPI
	  	1.41
	 Defaulting Party
	  	10.2(a)
	 Development Data Package
	  	4.4(a)
	 Dispute
	  	11.1
	 Effective Date
	  	Preamble
	 Excluded Claim
	  	11.2
	 Extended Research Term
	  	3.1(c)
	 IMS
	  	1.42
	 Initial Research Plans
	  	3.1(b)
	 Initiating Party
	  	7.5(d)
	 Joint Counsel
	  	7.4(a)
	 Joint Counsel Patent Rights
	  	7.4(a)
	 Joint Intellectual Property
	  	7.1(a)
	 Joint Know-How
	  	7.1(a)
	 Joint Patent Rights
	  	7.1(a)
	 JDC
	  	2.3(b)(i)
	 JRC
	  	2.3
	 JSC
	  	2.2(a)
	 Lead Candidate Review Period
	  	3.4(c)
	 M&A Event
	  	12.7
	 MacroGenics
	  	Preamble
	 MacroGenics Indemnitees
	  	9.4
	 MacroGenics Shared Percentage
	  	4.4(a)
	 Maintenance Payment
	  	6.3(a)
	 Materials
	  	3.6
	 Non-Defaulting Party
	  	10.2(a)
	 Project Leader
	  	2.1
	 Records
	  	3.9(a)
	 Replacement Product
	  	6.4(a)
	 Royalty Term
	  	6.6(b)
	 SEC Filing
	  	8.4(c)
	 SOPD Candidate Review Period
	  	3.5(b)
	 Term
	  	10.1
	 Third Party Claim
	  	9.4

  
 15 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE II 
 GOVERNANCE 
 2.1 Project Leaders. Within fifteen
(15) Business Days after the Effective Date, each Party will appoint for each Program (and provide written notice to the other Party of the identity of) a senior representative having a general understanding of pharmaceutical discovery and
development issues to act as its project leader under this Agreement (the “Project Leader”). A Project Leader may support multiple ongoing Programs. The Project Leaders will serve as the contact point between the Parties, and will
be primarily responsible for: (a) facilitating the flow of information and otherwise promoting communication, coordination of the day-to-day work and collaboration between the Parties with respect to a particular Research Plan;
(b) providing single point communication for seeking consensus both internally within the respective Party’s organization; and (c) raising cross-Party and/or cross-functional disputes in a timely manner. The Project Leaders shall
ensure regular biweekly telephone conferences or more frequently as deemed necessary or appropriate, to exchange informal information regarding the progress of the relevant Program. Each Party may change its designated Project Leader from time to
time upon prior written notice to the other Party. Any Project Leader may designate a substitute to temporarily perform the functions of that Project Leader by prior written notice to the other Party. 

2.2 Joint Steering Committee. 
 (a) Composition. Promptly after the Effective Date, the Parties shall establish a joint steering committee (the “JSC”). The JSC shall be comprised of three (3) named
representatives of BI and three (3) named representatives of MacroGenics (or such other number as the Parties may agree). As soon as practicable after the Effective Date (but in no event more than fifteen (15) Business Days after the
Effective Date), each Party shall designate by written notice to the other Party its initial representatives on the JSC. Each Party may replace one or more of its representatives, in its sole discretion, effective upon written notice to the other
Party of such change. These representatives shall have appropriate technical credentials, experience and knowledge, and ongoing familiarity with the Programs. Either Party may, from time to time, invite additional representatives or consultants to
attend JSC meetings; provided that at least ten (10) Business Days prior written notice is given of a Party’s intention to invite such other representatives or consultants and providing full details about the name, employer and
professional background of such other representatives or consultants, and subject to such representative’s and consultant’s written agreement to comply with confidentiality obligations substantially the same as those set forth in ARTICLE
VIII. Each Party shall bear its own expenses related to the attendance at JSC meetings by its representatives. The JSC shall be co-chaired by a representative from each Party. The chairpersons shall set the agendas for the JSC meeting in advance.
The JSC shall be disbanded upon expiration of the Research Term. 
 (b) Function and Powers of the JSC. During the
Research Term, the JSC’s responsibilities shall include: (i) approving each Research Plan, RTP and any amendments thereto; (ii) approving the *** Candidate Criteria; (iii) providing a forum for discussion of the Research Plan,
RTP, the status of the Programs, and relevant data; (iv) reallocating resources within and/or among the Programs and the prioritization of Programs; (v) serving as a forum for 

  
 16 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
informal resolution of disagreements that may arise in the relation to the Parties activities under the Programs; (vi) determining and approving the overall strategy for publications and
presentations pursuant to Sections 8.3 and 8.4; and (vii) considering and acting upon such other matters as specified in this Agreement. 
 2.3 Subcommittees. The JSC may establish and disband such subcommittees as deemed necessary by the JSC. Each such subcommittee shall consist of the same number of representatives designated by each
Party, which number shall be mutually agreed by the Parties. Each Party shall be free to change its representatives on written notice to the other Party or to send a substitute representative to any subcommittee meeting. Each Party’s
representatives and any substitute for a representative shall be bound by the obligations of confidentiality set forth in ARTICLE VIII. Except as expressly provided in this Agreement, no subcommittee shall have the authority to bind the Parties
hereunder and each subcommittee shall report to the JSC. The initial subcommittee of the JSC will be the Joint Research Committee (“JRC”). The Parties may elect to establish a single JRC or may elect to establish a separate JRC for
each Program. 
 (a) Joint Research Committee. 

(i) Promptly after the Effective Date, the Parties shall establish the JRC (or, if multiple JRCs are to be established,
promptly after each Program commences). The JRC shall be comprised of three (3) named representatives of BI and three (3) named representatives of MacroGenics (or such other number as the Parties may agree). As soon as practicable after
the establishment of the JRC, each Party shall designate by written notice to the other Party its initial representatives on the JRC. Each Party may replace one or more of its representatives, in its sole discretion, effective upon notice to the
other Party of such change. These representatives shall have appropriate technical credentials, experience and knowledge, and ongoing familiarity with the relevant Program(s). Either party may, from time to time, invite additional representatives or
consultants to attend JRC meetings; provided that at least ten (10) Business Days prior written notice is given of a Party’s intention to invite such other representatives or consultants and providing full details about the name,
employer and professional background of such other representatives or consultants, and subject to such representative’s and consultant’s written agreement to comply with confidentiality obligations substantially the same as those set forth
in ARTICLE VIII. Each Party shall bear its own expenses related to the attendance at JRC meetings by its representatives. The JRC shall be co-chaired by a representative of each Party. The chairpersons shall set the agendas for the JRC meeting in
advance. The JRC shall be disbanded upon expiration of the Research Term. 
 (ii) During the Research Term, the
JRC’s responsibilities shall include: (A) prioritizing research on Collaboration Targets; (B) developing the Research Plan, RTP and any amendments thereto for approval by the JSC; (C) establishing the *** Candidate Criteria for
each Program; (D) reviewing and tracking the exchange and use of Materials pursuant to Section 3.6; (E) considering and advising on technical issues and issues of priority that arise in the conduct of the relevant Program(s); and
(F) considering and acting upon such other matters as specified in this Agreement. 

  
 17 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Joint Development Committee. 

(i)***, the Parties will establish the Joint Development Committee (“JDC”) and each Party shall
designate by written notice to the other Party its initial representatives on the JDC. The JDC shall be comprised of two (2) named representatives of BI and two (2) named representatives of MacroGenics (or such other number as the Parties
may agree). Each Party may replace one or more of its representatives, in its sole discretion, effective upon written notice to the other Party of such change. These representatives shall have appropriate technical credentials, experience and
knowledge, and ongoing familiarity with the relevant Program(s). Either Party may, from time to time, invite additional representatives or consultants to attend JDC meetings; provided that at least ten (10) Business Days prior written
notice is given of a Party’s intention to invite such other representatives or consultants and providing full details about the name, employer and professional background of such other representatives or consultants, and subject to such
representative’s and consultant’s written agreement to comply with confidentiality obligations substantially the same as those set forth in ARTICLE VIII. Each Party shall bear its own expenses related to the attendance at JDC meetings by
its representatives. The JDC shall be co-chaired by a representative of each Party. The chairpersons shall set the agendas for the JDC meeting in advance. The JDC shall be disbanded upon completion of the relevant ***. 

(ii) The JDC’s responsibilities shall include coordinating activities related to the *** in accordance with
Section 4.3 and considering and acting upon such other matters as specified in this Agreement. 
 2.4 Meetings.
Commencing in the fourth Calendar Quarter of 2010, the JSC shall hold at least *** per Calendar Year and each of the subcommittees shall each hold at least one (1) meeting per Calendar Quarter. Either Party shall be entitled to request any
additional meetings of the JSC. Meetings of the JSC and the subcommittees, respectively, shall be effective only if at least two (2) representative of each Party are present or participating. The location of meetings shall be as agreed by the
Parties, and may be held in person, alternating locations between the Parties, or by telephone conference call or by videoconference; provided, however, that at least *** of the JSC and each subcommittee per Calendar Year are held in
person. Each Party shall be responsible for all of its own expenses incurred in connection with preparing for and participating in all such meetings. Within ten (10) Business Days prior to each scheduled meeting, the Parties shall, in
accordance with Section 3.9(b), provide a report to the JSC or JRC (in each case as applicable) detailing its progress with respect to the respective Programs. The Parties will rotate the responsibility for recording, preparing and issuing
minutes for each JSC, and any subcommittee within fifteen (15) Business Days thereafter. 
 2.5 Decision-making.

 (a) Initial Dispute Resolution Procedures. Subject to the provisions of this Section 2.5, actions to be taken by
the JSC and each of the subcommittees shall be taken only following a unanimous vote, with each Party, through its representatives, having one (1) vote. If any subcommittee fails to reach unanimous agreement on a matter before it for decision
***, the matter shall be referred to the JSC unless the JSC has been disbanded, in which case such matter shall be referred to *** MacroGenics and *** of BI for resolution in accordance with Section 2.5(b). 

  
 18 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Referral of Unresolved Matters to Executives. If, in accordance with
Section 2.5(a), the JSC does not resolve any matter considered by it within *** after the matter is first considered by it, the matter may be referred by either Party to the *** of MacroGenics and *** of BI to be resolved by negotiation
in good faith as soon as practicable but in no event *** after referral. Such resolution, if any, of a referred issue by the *** and *** shall be final and binding on the Parties. 

(c) Final Decision-Making. If a dispute referred to the *** and *** has not been resolved in accordance with
Section 2.5(b), then, subject to Section 2.5(d), *** ***. Any *** under this Section 2.5(c) shall be deemed a decision of the JSC for purposes of this Agreement. 

(d) Exceptions. Notwithstanding Section 2.5(c), *** to exercise such decision-making authority (i) ***;
(ii) in a manner that excuses BI from any of its obligations specifically enumerated under this Agreement, (iii) in a manner that negates any consent rights or other rights specifically allocated to MacroGenics under this Agreement;
(iv) to resolve any dispute regarding whether a milestone event set forth in Section 6.4 has been achieved; (v) in a manner that would require MacroGenics to perform activities (A) for which BI *** (except as expressly set forth
in this Agreement); (B) which MacroGenics has not agreed to perform as set forth in this Agreement or an Initial Research Plan, or as otherwise agreed in writing by MacroGenics; or (C) which require MacroGenics to use any Know-How or other
technology not contemplated in an Initial Research Plan and that are not developed internally by MacroGenics; (vi) *** or (vii) in a manner that would require MacroGenics to perform any act that it reasonably believes to be inconsistent
with any Law or any approval, order, policy, guidelines of a Regulatory Authority or ethical requirements or ethical guidelines. 
 2.6 Limitations on JSC Authority. The JSC and any subcommittee shall have only the powers assigned expressly to it in this ARTICLE II and elsewhere in this Agreement, and shall not have any power
to amend, modify or waive compliance with this Agreement. In furtherance thereof, each Party shall retain the rights, powers and discretion granted to it under this Agreement and no such rights, powers or discretion shall be delegated or vested in
the JSC or any subcommittee unless such delegation or vesting of rights is expressly provided for in this Agreement or the Parties expressly so agree in writing. 
 ARTICLE III 
 RESEARCH PROGRAM 

3.1 General. 
 (a) Objectives. The initial objective of each Program is to develop Collaboration DARTs Directed to a specific Collaboration Target and to Develop such Collaborative DARTs to meet the SOPD
Candidate Criteria and being declared SOPD 

  
 19 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Candidates. The Parties may also agree to collaborate on additional exploratory projects related to the Programs. Up to ten (10) Programs shall be undertaken through the generation of Lead
Candidates meeting RTP criteria and eventually SOPD Candidate Criteria under this Agreement. For each Collaboration DART that is deemed an SOPD Candidate, BI shall, in accordance with ARTICLE IV, have full responsibility for further Development,
manufacture and Commercialization activities. 
 (b) Research Plans. The Parties shall agree to a Research Plan for each
Program and shall conduct each Program in accordance with the applicable Research Plan. The Parties shall agree to *** (the “Initial Research Plans”), which Initial Research Plans shall include ***Collaboration Targets
and shall set forth the tasks to be undertaken by the Parties (including relevant technology to be used and Materials (as defined below) to be provided) under each Program. 
 (c) Extended Research Term. In the event that BI reasonably believes that the Parties will not complete the activities under the Research Plan for any Program initiated during the first
*** of the Initial Research Term, then BI, at its sole discretion, may extend the Research Term to complete the goals of such Research Plan as then in effect for a *** period (the “Extended Research Term”) from the
expiration of the Initial Research Term. BI may extend the Research Term by giving written notice to MacroGenics at least *** prior to the expiration of the Initial Research Term. The Parties shall mutually agree upon the number of
FTEs at MacroGenics needed to perform the research during the Extended Research Term and BI shall provide funding for such FTEs in accordance with Section 6.3(b)(ii). The Parties may further prolong the Extended Research Term by mutual written
agreement of the Parties. 
 3.2 Selection of Collaboration Targets. 

(a) Initial Collaboration Targets. As of the Effective Date the Parties have agreed to include the Initial Collaboration Targets
set forth on Schedule 1.47 as Collaboration Targets under this Agreement. 
 (b) Additional Collaboration Targets.
Within *** from the Effective Date, BI may submit in writing to MacroGenics additional Dual Target Combinations (which must be accompanied by the Entrez Gene ID, HUGO or official symbol and any common synonyms, if available, for each Target included
in such Dual Target Combination) which BI in good faith wishes to include as Collaboration Targets; provided that in no event shall there be more than *** Collaboration Targets at any time during the Research Term. For purposes of clarity, BI
shall have the right to substitute Collaboration Targets in accordance with Section 3.2(d). MacroGenics shall, subject to Section 3.2(c), provide BI written notice of whether any such additional Dual Target Combinations shall be included
as Collaboration Targets within *** Business Days after receipt of notice of such additional Dual Target Combinations. 

(c) Limitation on MacroGenics Rejection of Proposed Collaboration Targets. MacroGenics may reject a proposed Dual Target
Combination submitted by BI in accordance with Section 3.2(b) only if prior to BI’s submission of such proposed Dual Target Combination: (i) *** in such proposed Dual Target Combination (but only if such Target is included in a
written list of no more than *** Targets (which must be accompanied by the Entrez 

  
 20 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Gene ID, HUGO or official symbol and any common synonyms, if available, for each Target) provided by MacroGenics to a Third Party gatekeeper that is mutually acceptable to MacroGenics and BI
prior to the Effective Date and which is subject to *** of such list for each *** not to exceed ***Targets in total at any given time, by MacroGenics and which is shared prior to the end of each *** with such Third Party
gatekeeper), provided however that under this clause (i) MacroGenics will not reject more than *** Dual Target Combinations in the *** period after the Effective Date and each consecutive *** period
thereafter; provided that BI shall *** under this Section 3.2(c) unless mutually agreed to by the Parties; (ii) MacroGenics or its Affiliates have entered into an agreement with a Third Party pursuant to which MacroGenics or its
Affiliates have committed any *** included in such *** to such Third Party; or (iii) MacroGenics is in good faith active partnering discussions with a Third Party *** included in such *** (as supported by written evidence *** BI’s
submission of any Dual Target Combination according to Section 3.2(b))), and in each case (i), (ii) and (iii), MacroGenics shall provide BI with written documentation on the reason for its rejection of any proposed *** included in
MacroGenics’ Target list and BI shall be entitled to confirm any such rejection under clause (i) directly with a Third Party gatekeeper to the then current MacroGenics Target list; provided that MacroGenics shall not be required to
provide any written documentation or other disclosure that would violate its confidentiality obligations to a Third Party. 

(d) Removal of Collaboration Targets from Collaboration Targets List. At any time during the Initial Research Term, BI may remove
a Collaboration Target from the Collaboration Targets List (i) prior to the Parties commencing activities under a Research Plan with respect to such Collaboration Target or (ii) at any time after commencing research under the Research Plan
with respect to a Collaboration Target in the event that BI reasonably and in good faith concludes that a Collaboration DART can not meet the applicable RTP. In the event of the removal of a Dual Target Combination from the Collaboration Targets
List in accordance with this Section 3.2(d)(ii), (A) such removal shall be treated as a *** with respect to the Program for such Collaboration Target; and (B) BI may submit an additional replacement Dual Target Combination to
MacroGenics in accordance with Section 3.2(b). Notwithstanding the foregoing, in no event shall the cumulative number of Collaboration Targets pursued under this Agreement by the Parties (including any Collaboration Targets that are removed
from the Collaboration Targets List pursuant to this Section 3.2(d)(i) or (ii)) exceed *** unless mutually agreed by the Parties. 
 3.3 Conduct of the Programs. 
 (a) MacroGenics and BI shall each use
Commercially Reasonable Efforts to conduct each Program in good scientific manner and in accordance with the applicable Research Plan. 
 (b) Either Party shall have the right to utilize the services of a Third Party to perform its Program obligations under the Research Plan. Each Party shall remain at all times fully liable for its
responsibilities under each Program and this Agreement. 
 (c) MacroGenics and BI shall conduct each Program in accordance with
all applicable Laws, including, all current governmental regulatory requirements concerning Good Laboratory Practices. To the best of its knowledge, each Party hereby certifies that it will not employ or otherwise use in any capacity the services of
any person debarred under 21 USC §335a in performing any activities hereunder. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 3.4 Research Target Profile; Lead Candidate Identification. 

(a) The Research Plan for a Program shall set forth the applicable RTP for Collaboration DARTs in such Program. The JRC shall develop,
and the JSC shall approve, such RTP based on the template provided in Schedule 1.77 *** (as agreed by JSC)” in Schedule 1.77. 
 (b) Following approval of the RTP for a Program, the JRC may, from time to time during the Research Term, nominate a Collaboration DART from such Program that meets the RTP for consideration as a Lead
Candidate. For each such nominated Collaboration DART the JRC shall prepare and deliver to BI a data package for BI to evaluate. Such data package shall include the results from all tests and other measures included in the RTP. Within ***
after delivery to BI of such data package, BI shall provide MacroGenics written notice whether BI (i) accepts such Collaboration DART as a Lead Candidate and intends to continue the relevant Program for such Lead Candidate in accordance with
the terms of this Agreement, in which case such Collaboration DART shall be deemed a Lead Candidate; (ii) does not accept such Collaboration DART as a Lead Candidate, but either desires to continue evaluation of such Collaboration DART in
accordance with subsection (c) or continue the relevant Program with respect to other Collaboration DARTs; or (iii) does not accept such Collaboration DART as a Lead Candidate and does not desire to continue the relevant Program, in which
case this Agreement shall terminate with respect to such Program and such termination shall be treated as a termination under Section 10.2(b). 
 (c) If a Collaboration DART that has achieved the Lead Candidate Criteria is not accepted by BI as a Lead Candidate in accordance with Section 3.4(b), then within *** (the “Lead
Candidate Review Period”) BI shall have the right, by providing written notice to MacroGenics to accept any such Collaboration DART as a Lead Candidate, and the Parties shall continue the relevant Program for such Lead Candidate in
accordance with the terms of this Agreement. If upon expiration of the applicable Lead Candidate Review Period the relevant Collaboration DART has not been accepted by BI as a Lead Candidate, then (i) the licenses granted to BI under ARTICLE V
with respect to such Collaboration DART shall terminate and (ii) if no Collaboration DART has been accepted as a Lead Candidate for the relevant Program, BI shall provide MacroGenics written notice of whether BI (A) desires to continue the
relevant Program with respect to other Collaboration DARTs; or (B) does not desire to continue the relevant Program, in which case this Agreement shall terminate with respect to such Program and such termination shall be treated as a
termination under Section 10.2(b). 
 (d) Upon the initiation by BI of any ***, BI shall provide MacroGenics
written notice of such initiation, BI shall be deemed to have accepted such Collaboration DART as a Lead Candidate and such Collaboration DART shall be deemed a Lead Candidate. 

(e) BI shall *** for the first Collaboration DART from each Program that BI accepts as a Lead Candidate pursuant to subsections (b),
(c) or (d) of this Section 3.4. For the sake of clarity, BI has the right to select additional Collaboration DARTs from the same Program as Lead Candidates. 

  
 22 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 3.5 Start of Pre-Clinical Development Candidate Criteria; SOPD Candidate
Identification. 
 (a) Within *** following the date on which a Collaboration DART in a Program is deemed a Lead
Candidate, the JRC shall determine and the JSC shall approve, the Start of Pre-Clinical Development Candidate Criteria applicable to such Program. The JRC shall develop, and the JSC shall approve, such Start of Pre-Clinical Development Candidate
Criteria based on the template provided in Schedule 1.81 and shall *** Following approval of the Start of Pre-Clinical Development Candidate Criteria for a Program and subject to the approval of the JSC, the JRC may, from time to time
during the Research Term, nominate a Collaboration DART from such Program that has achieved the Start of Pre-Clinical Development Candidate Criteria for consideration as an SOPD Candidate. The JSC shall have the right to approve any such nomination.
For each such nominated Collaboration DART the JRC shall prepare and deliver to BI a data package for BI to evaluate such Collaboration DART for designation as an SOPD Candidate. Such data package shall include the results from all tests and other
measures included in the SOPD Criteria. Within ***after delivery to BI of the data package, BI shall provide MacroGenics written notice whether BI (i) accepts such Collaboration DART as an SOPD Candidate and intends to Develop and/or
Commercialize such SOPD Candidate in accordance with the terms of this Agreement, in which case such Collaboration DART shall be deemed an SOPD Candidate; (ii) does not accept such Collaboration DART as an SOPD Candidate, but either desires to
continue evaluation of such Collaboration Dart in accordance with subsection (b) or to continue the relevant Program with respect to other Collaboration DARTs; or (iii) does not accept such Collaboration DART as an SOPD Candidate and does
not desire to continue the relevant Program, in which case this Agreement shall terminate with respect to such Program and such termination shall be treated as a termination under Section 10.2(b). 

(b) If a Collaboration DART that has achieved the SOPD Candidate Criteria is not accepted by BI as an SOPD Candidate in accordance with
Section 3.5(a), then within *** after such Collaboration DART was first submitted to BI as an SOPD Candidate (the “SOPD Candidate Review Period”) BI shall have the right, by providing written notice to MacroGenics to accept any
such Collaboration DART as an SOPD Candidate, and BI shall research, Develop, manufacture and Commercialize such SOPD Candidate in accordance with the terms of this Agreement. If upon expiration of the applicable SOPD Candidate Review Period the
relevant Collaboration DART has not been accepted by BI as an SOPD Candidate, then (i) the licenses granted to BI under ARTICLE V with respect to such Collaboration DART shall terminate and (ii) if no Collaboration DART has been accepted
as an SOPD Candidate for the relevant Program, BI shall provide MacroGenics written notice of whether BI (A) desires to continue the relevant Program with respect to other Collaboration DARTs; or (B) does not desire to continue the
relevant Program, in which case this Agreement shall terminate with respect to such Program and such termination shall be treated as a termination under Section 10.2(b). 
 (c) In the event that BI initiates *** with respect to any Collaboration DART that has not previously been accepted by BI in accordance with Section 3.5(b), BI shall provide MacroGenics
written notice of such initiation, BI shall ***. 

  
 23 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (d) BI shall pay any applicable milestone payment as set forth in Section 6.4(a)(ii)
for the *** from each Program that BI accepts as an SOPD Candidate pursuant to subsections (a), (b) or (c) of this Section 3.5. For the sake of clarity, BI has the right to select additional Collaboration DARTs from the same
Program. 
 (e) If following end of the Research Term and any SOPD Candidate Review Period ongoing at the end of the Research
Term there is any Program for which no Collaboration DART has been accepted by BI as an SOPD Candidate, whether pursuant to subsections (a), (b) or (c) of this Section 3.5, then this Agreement shall terminate with respect to such
Program and such termination shall be treated as a termination under Section 10.2(b). 
 3.6 Materials and Know-How
Transfer. 
 (a) In order to facilitate any Program, each Party shall, as set forth in the applicable Research Plan,
provide to the other Party certain tangible biological materials including *** (“Materials”) and, subject to Section 3.7, Know-How Controlled by the supplying Party (other than under this Agreement) for use by the other
Party in furtherance of such Program. MacroGenics shall furthermore transfer to BI the ***. The transfer of any such Materials shall be conducted pursuant to the terms of this Agreement, including the following: 

(b) All Materials and Know-How supplied by one Party to the other Party shall remain the sole property of the supplying Party, except
those MacroGenics Collaboration Antibodies as further outlined in Section 3.6(c) below, and shall be used (i) only for the specific purpose provided for in the applicable Research Plan, and (ii) solely under the control of the
receiving Party. In the event a receiving Party uses Materials provided by the supplying Party for purposes other than for the specific purpose provided in the applicable Research Plan, the supplying Party shall solely own any results, discoveries
or inventions arising out of such use and the receiving Party hereby assigns to the supply Party all right, title and interest in such results, discoveries or inventions. The Materials may not be used or delivered to or for the benefit of any Third
Party without the prior written consent of the supplying Party, and shall not be used in research or testing involving human subjects, except as expressly contemplated in the applicable Research Plan or in accordance with this Agreement. Any
Materials supplied by one Party to the other Party must be used with prudence and appropriate caution in any experimental work, since not all of their characteristics may be known. All Materials shall be returned to the supplying Party or destroyed
(at the election of the supplying Party) promptly after completion of the permitted use. The use of the Materials shall comply with restrictions and conditions on use (if any) imposed by Third Parties. 

(c) MacroGenics Collaboration Antibodies created in accordance with Section 1.55(a), including Know-How that is solely and
specifically related to such MacroGenics Collaboration Antibodies, shall be solely owned by BI, and MacroGenics shall not use such MacroGenics Collaboration Antibodies and/or such Know-How for any other purpose, either alone or in collaboration with
any Third Party. 
 (d) THE MATERIALS ARE PROVIDED “AS IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
PARTICULAR PURPOSE OR ANY WARRANTY THAT THE USE OF THE MATERIALS WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY. 

3.7 Third Party Intellectual Property. In developing each Research Plan, the Parties shall discuss whether any Third Party Patent
Rights or Know-How will be utilized in the conduct of activities under the applicable Research Plan. MacroGenics shall disclose to BI the details of the payment obligations of which it is aware that would be triggered by such use of Third Party
Patent Rights or Know-How in the respective Program. To the extent that the Parties mutually agree to utilize any Patent Right or Know-How that is licensed to or has been acquired by MacroGenics and such utilization would require the payment of
additional consideration to the Third Party from which the Patent Rights or Know-How was licensed or acquired, such Patent Rights or Know-How shall not be deemed under the Control of MacroGenics unless the Parties agree ***. For purposes of clarity,
nothing in this Section 3.7 shall limit BI’s rights to, independent of MacroGenics, obtain from a Third Party a license or other right with respect to such Third Party’s Patent Rights or Know-How. 

3.8 Manufacturing of Research Material. MacroGenics shall be responsible for the production of all Collaboration DARTs and
Products for research testing purposes in accordance with the Research Plans. For clarity, BI shall be entitled to manufacture Collaboration DARTs and Products during the Research Term. 

3.9 Records and Reports. 
 (a) Records. Each Party shall maintain records, in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which shall fully and properly reflect all work
done and results achieved in the performance of each Program by or on behalf of such Party (the “Records”), including the procedures, techniques and methodologies used, the progress made, and any inventions conceived and/or reduced
to practice or otherwise made within the scope of or in connection with each Program. As part of keeping the Records, each Party shall ensure that all of its personnel, and all of its agents that are involved in each Program will keep accurate
laboratory notebooks, which laboratory notebooks: (i) shall be duly signed, dated and witnessed; and (ii) shall be created and maintained in accordance with its standard operating procedures that would be sufficient to allow for said
laboratory notebooks to be used in any proceedings before the United States Patent and Trademark Office or United States courts, in order to establish the date of invention for any inventions in accordance with the United States patent laws. During
the Term of this Agreement, MacroGenics shall upon written request by BI, which shall not be unreasonably made: (A) make all Records available for inspection and review by BI during normal business hours in a timely manner; and (B) provide
copies of the Records or any part(s) thereof to BI, as reasonably requested by BI. After each Collaboration DART has been accepted by BI as SOPD Candidate, BI shall have the right to request a copy of the relevant portions of the laboratory
notebooks relating to the generation of such SOPD Candidate be provided by MacroGenics to BI. After such request by BI, MacroGenics shall provide such copies of the laboratory notebooks promptly to BI. 

(b) Reports to the JSC and JRC. Within ten (10) Business Days prior to each scheduled JSC and JRC meeting, the Parties shall
provide to the JSC and JRC a written 

  
 25 

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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
report on the progress of each Program, summarizing the work performed under the Program and evaluating the work performed in relation to the goals of each Program. Each Party shall provide such
other information required by each Program or reasonably requested by the other Party and reasonably available, relating to the progress of the goals or performance of each Program. 

ARTICLE IV 

DEVELOPMENT AND COMMERCIALIZATION OF PRODUCTS; DILIGENCE 

4.1 Responsibility for Development, Manufacturing and Commercialization. 

(a) Following acceptance of an SOPD Candidate, BI shall have full responsibility, at its sole expense, for the worldwide research,
Development, manufacturing and Commercialization of such SOPD Candidate and any Products that include such SOPD Candidate. BI shall use Commercially Reasonable Efforts (itself or through an Affiliate or Sublicensee) to Develop and, following
Regulatory Approval, Commercialize at least *** Product with respect to each Collaboration Target in at least *** of the following *** (i) ***, (ii) *** and (iii) ***. 

(b) MacroGenics shall, following BI’s reasonable request therefor and at BI’s expense, provide to BI, or its designated
Affiliate or Third Party manufacturer selected by BI to manufacture the Products, reasonable technical assistance, manufacturing Know-How, including Materials, and material specifications Controlled by MacroGenics that are necessary for BI, its
Affiliate or such Third Party manufacturer to manufacture the Products. 
 4.2 Development and Commercialization
Activities. 
 (a) Clinical Development Plans. For each Product for which BI initiates a ***, BI shall prepare a
clinical development plan outlining the major clinical Development activities that BI expects to undertake, including anticipated timescales, relating to the Product up to the submission of the initial NDA for the applicable Product (each, a
“Clinical Development Plan”). It is understood that each Clinical Development Plan is intended to be a fluid document and is subject to change by BI based on, among other things, changes in the market, discussions with investigators
and Regulatory Authorities and the results of studies undertaken. Subject to the provisions of ARTICLE VIII, during the Term, BI shall provide MacroGenics a copy of ***. The Clinical Development Plans will be created, approved, and amended
according to BI’s then-current internal standards and processes for such Clinical Development Plans. The responsibility to provide a Clinical Development Plan for a particular Product shall terminate if BI ceases further Clinical Development of
such Product. 
 (b) Progress Reports. After the end of the Research Term and continuing until the First Commercial Sale
of the respective SOPD Candidate or Product, BI shall provide within *** days after *** of each Calendar Year a written progress report to MacroGenics which summarizes the activities undertaken and the data obtained in the prior *** to
Develop each SOPD Candidate or Product for which BI has paid a milestone according to Section 6.4(a)(i). 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 4.3 Conduct of Phase I Clinical Trial. In the event that either Party reasonably
desires for ***, such Party shall submit a written request to the other Party, together with a draft protocol, clinical plan and a proposed budget prepared in good faith by such Party; provided that ***. In the event that the Parties
agree to the conduct of such ***, the Parties shall establish the JDC in accordance with Section 2.3(b). *** its out-of-pocket expenses, specifically identifiable and documented and FTE costs incurred in connection with any such ***. Together
with each Invoice, ***. For avoidance of doubt, ***. All results and data of such ***. 
 4.4 Co-Development. 

(a) Generally. Within *** months prior to the initiation of a *** for any Product, BI shall provide MacroGenics
with (i) an updated progress report (in accordance with Section 4.2(b)); (ii) BI’s then current Development Plan and budget for the Clinical Development Costs (the “Co-Development Budget”) with respect to such
Product; (iii) then available documentation for IND update for such Product, and MacroGenics may reasonably request that BI provides additional information to such Product and BI shall provide MacroGenics with such information as reasonably
available for such Product unless such information is proprietary and confidential information of BI related to BI Biopharmaceutical Technology; (iv) clinical study summaries from prior Clinical Trials conducted with such Product; and
(v) copies of material correspondence with Regulatory Authorities with respect to such Product relevant for *** (collectively, the “Development Data Package”). MacroGenics shall have the option, exercisable with respect to
*** Products, to co-fund up to *** of BI’s Clinical Development Costs which are incurred after the date of such written notice and *** for such Product. MacroGenics may exercise such option by providing BI written notice within
*** days after receipt of the Development Data Package, and such Product shall be deemed to be a “Co-Development Product”. MacroGenics shall specify in such notice the percentage of BI’s Clinical Development Costs for
the Co-Development Product that MacroGenics intends to co-fund (the “MacroGenics Shared Percentage”). In the event, MacroGenics does not provide a written notification to BI within such ***day period, such Product will
automatically be excluded from such co-development option under this Section 4.4 and MacroGenics shall automatically be deemed to have waived its co-development option right with regard to such Product. 

(b) Effects of Co-Development Opt-In. If MacroGenics delivers such written notice as described above for a Co-Development
Product, the following shall apply: 
 (i) MacroGenics shall be responsible for the applicable MacroGenics
Shared Percentage of BI’s Clinical Development Costs which are incurred for such Co-Development Product after the date of such written notice and until the Filing of the first NDA in a Major Country (including Filing of an NDA with the EMA) for
such Product (the “Co-Development Obligations”); provided in no event shall MacroGenics be obligated to fund any portion of such Clinical Development Costs that exceeds *** of the Clinical Development Costs provided
for in the Co-Development Budget (with a corresponding pro rata reduction in the royalty increase MacroGenics would receive as set forth in more detail in Section 4.4(b)(iii)). BI shall remain solely responsible for Development and
manufacturing activities for such Co-Development Product. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (ii) After MacroGenics has delivered such written notice and within ***
following each of the Calendar Quarters I (January to March), II (April to June), and III (July to September), BI shall issue an invoice to MacroGenics for the MacroGenics Shared Percentage of the Clinical Development Costs based on budgeted cost
for the respective Calendar Quarter. Within *** following the end of the Calendar Quarter IV (October to December), BI shall provide to MacroGenics *** with respect to such Co-Development Product, as certified by BI’s senior controlling staff.
Simultaneously, BI shall issue an invoice in the amount of the MacroGenics Shared Percentage of the Clinical Development Costs actually incurred by BI for such Calendar Year deducting the payments received for Calendar Quarters I, II and III. In the
event the actual Clinical Development Costs for the Calendar Year surpass the budgeted amount by more than ***, the stipulations of Section 4.4(b)(i) will apply. MacroGenics shall pay all amounts payable under any such invoice within
thirty (30) days after its receipt of such invoice. ***. 
 (iii) The applicable royalty rates set forth in
Section 6.6 payable on each Co-Development Product shall be increased by *** of the Clinical Development Cost co-funded by MacroGenics. For example, if MacroGenics co-funds *** of the Clinical Development Costs for such
Co-Development Product, the applicable *** by ***. If MacroGenics co-funds less than the MacroGenics Shared Percentage of the Clinical Development Costs for a Co-Development Product because actual expenses exceeded BI’s budget forecast
by more than *** of the Clinical Development Costs for such Co-Development Product, then MacroGenics shall receive *** on such Co-Development Product based on its percentage share of the actual Clinical Development Costs in accordance with
the formula set forth in this Section 4.4(b)(iii). 
 (c) Termination of Co-Development. Upon not less than
*** prior written notice to BI, MacroGenics may elect to discontinue its Co-Development Obligations with respect to a Co-Development Product in which case the following shall apply: 

(i) Upon the effective date of termination of the Co-Development Obligations, MacroGenics shall have no further
obligations to co-fund the Clinical Development Costs with respect to such Co-Development Product. 
 (ii) The
*** payable on such Co-Development Product shall be calculated based on the formula set forth in Section 4.4(b)(iii) above. 
 4.5 Co-Promotion. 
 (a) Generally. MacroGenics shall have the
non-transferable option to co-promote in the United States up to *** Products whose initial indication is Detailed by *** (the “Co-Promotion Option”). Within *** prior to BI’s anticipated commercial launch for any
such Product, BI shall provide MacroGenics *** and BI’s then-current Commercialization plans (“Commercialization Plan”) with respect to such Product, which Commercialization Plan shall include*** 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Effects of Exercise of Co-Promotion Option. If MacroGenics exercises its
Co-Promotion Option the Parties shall promptly and in good faith negotiate a definitive co-promotion agreement consistent with the terms and conditions outlined in Schedule 4.5(b)I, prior to the initiation of the co-promotion efforts
contemplated hereby with the procedures described in Schedule 4.5(b)II applying to any failure by the Parties to agree on the terms of such separate agreement within *** days following the start of such negotiations. Such co-promotion
agreement shall require MacroGenics to comply with all applicable Laws and with BI’s policies and guidelines relating to the marketing of the co-promoted Product. Notwithstanding the foregoing, in the event that a Product for which MacroGenics
exercised its Co-Promotion Option ***. 
 (c) Waiver of Co-Promotion Option. In the event MacroGenics does not exercise
its Co-Promotion Option during the specified period described above, then (i) MacroGenics shall automatically be deemed to have waived its Co-Promotion Option with regard to the applicable Product; and (ii) the rights granted to BI
hereunder with respect to such Product in the United States shall remain exclusive. 
 ARTICLE V 

GRANTS OF RIGHTS 
 5.1 Licenses to BI. 
 (a) Non-Exclusive Research License to BI.
Subject to the terms and conditions of this Agreement, MacroGenics hereby grants to BI: (i) during the Research Term and any applicable Lead Candidate Review Period or SOPD Candidate Review Period, a worldwide, royalty-free, non-exclusive
license, with the right to grant sublicenses in accordance with Section 5.4, under the MacroGenics Intellectual Property solely to the extent necessary to (A) conduct activities assigned to it under each Research Plan or (B) evaluate
the data developed in the conduct of activities under the Research Plans during any applicable Lead Candidate Review Period or SOPD Candidate Review Period. 
 (b) Exclusive License to BI. Subject to the terms and conditions of this Agreement, MacroGenics hereby grants to BI an exclusive (even as to MacroGenics), worldwide, royalty-bearing, license,
including the right to grant sublicenses in accordance with Section 5.4, under the MacroGenics Intellectual Property and MacroGenics’ interest in the Joint Intellectual Property and Collaboration DART Intellectual Property to research,
Develop, make and have made, use, offer for sale, sell, export and import Collaboration DARTs and Products in the Territory and in the Field. 
 5.2 Recordation. Following the execution of this Agreement or at any time during the Term, MacroGenics at the request and expense of BI shall promptly register or record the licenses granted to BI
under this Agreement with the appropriate patent offices in all applicable countries of the Territory; provided that such registration or recordation specifies the applicable limitations of such license, and provided further
that such registration shall have no 

  
 29 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
effect on the allocation of Prosecution and Maintenance rights and obligations set forth in ARTICLE VII. In the event the licenses granted to BI under this Agreement are terminated, BI shall
promptly take such actions and execute such documents as are reasonably requested by MacroGenics to cancel such registration(s) or recordation(s) in the applicable countries with respect to the terminated license grants. 

5.3 Non-Exclusive Research License to MacroGenics. Subject to the terms and conditions of this Agreement, during the Research
Term, BI grants to MacroGenics, and MacroGenics accepts, a worldwide, royalty-free non-exclusive license, with the right to grant sublicenses in accordance with Section 5.4, under the BI Intellectual Property solely to the extent necessary to
conduct activities assigned to it under each Research Plan. 
 5.4 Sublicenses. 

(a) BI shall have the right to grant sublicenses under the licenses granted to it under Section 5.1 to (i) Affiliates of BI at
any time, and (ii) (A) under Section 5.1(a) to Third Parties that are specifically approved in a Research Plan or otherwise approved by the JSC, in each case solely to the extent necessary to carry out obligations under such Research
Plan; and (B) under Section 5.1(b) to Third Parties; provided that any sublicense granted to a Third Party under this Agreement shall be pursuant to a written agreement that subjects such sublicensee to all relevant restrictions and
limitations set forth in this Agreement. ***BI shall remain responsible for the performance of its sublicensees, and shall insure that each sublicensee comply with the applicable terms and conditions of this Agreement. 

(b) MacroGenics may grant sublicenses under the rights granted to it in Section 5.2 to (i) Affiliates of MacroGenics, or
(ii) Third Parties that are specifically approved in a Research Plan or otherwise approved by the JSC, in each case solely to the extent necessary to carry out obligations under each Research Plan; provided that any sublicense granted to
a Third Party under this Agreement shall be pursuant to a written agreement that subjects such sublicensee to all relevant restrictions and limitations set forth in this Agreement. 

5.5 Covenant not to Sue. In the event the making, having made, use, offer for sale, sale or import by BI and/or its Affiliates of
Product(s) in accordance with the terms and conditions of this Agreement would infringe during the Term a claim of issued letters patent which, subject to Section 3.7, MacroGenics Controls and which patent is not covered by the licenses granted
to BI pursuant to Section 5.1 MacroGenics hereby covenants not to sue BI and/or its Affiliates under such issued letters patent solely for the development, making, having made, using, selling, offering for sale or importing Product(s) in the
Territory and in the Field. 
 5.6 Rights Retained by the Parties. 

(a) Except as expressly set forth in this Agreement, neither Party shall acquire any license or other intellectual property interest, by
implication or otherwise, in any Confidential Information disclosed to it under this Agreement or under any Patent Rights or Know-How Controlled by the other Party or its Affiliates. Without limiting the generality of the foregoing, any of
MacroGenics’ rights to MacroGenics Intellectual Property not specifically licensed to BI shall be retained by MacroGenics, and any of BI’s rights to BI Intellectual Property not specifically licensed to MacroGenics shall be retained by BI.

  
 30 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Notwithstanding the licenses granted to BI pursuant to Section 5.1, MacroGenics
retains the right to practice under the MacroGenics Intellectual Property: (i) solely to perform (and to sublicense Third Parties to perform) its obligations under this Agreement and (ii) to perform, and grant Third Parties the
non-exclusive right to perform, internal research related *** existing *** prior to the Effective Date or created or acquired by *** of the conduct of any Program; provided that any such license granted to a Third Party does not specifically
include a license to research any Collaboration DART or Product. 
 5.7 Section 365(n) of the Bankruptcy Code. All
rights and licenses granted under or pursuant to any section of this Agreement are and will otherwise be deemed to be for purposes of Section 365(n) of the United States Bankruptcy Code (Title 11, U.S. Code), as amended (the “Bankruptcy
Code”), licenses of rights to “intellectual property” as defined in Section 101(35A) of the Bankruptcy Code. The Parties will retain and may fully exercise all of their respective rights and elections under the Bankruptcy
Code. Each Party agrees that the other Party, as licensee of such rights under this Agreement, will retain and may fully exercise all of its rights and elections under the Bankruptcy Code or any other provisions of applicable Law outside the United
States that provide similar protection for “intellectual property.” 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 analogous provisions of
applicable Law outside the United States, the other Party will be entitled to a complete duplicate of (or complete access to, as appropriate) such intellectual property and all embodiments of such intellectual property, which, if not already in such
Party’s possession, will be promptly delivered to it upon such Party’s written request thereof. Any agreements supplemental hereto will be deemed to be “agreements supplementary to” this Agreement for purposes of
Section 365(n) of the Bankruptcy Code. 
 5.8 Exclusivity. During *** the Parties agree to work exclusively with one
another within the scope of the collaboration, *** of molecules, derivatives thereof, or products created from ***. In addition, each Party agrees as follows: 
 (a) MacroGenics Exclusivity. 
 (i) Subject to the
exceptions set forth in Section 5.8(c), except with respect to research, Development and Commercialization activities pursuant to this Agreement, MacroGenics and its Affiliates shall not, nor shall MacroGenics or its Affiliates grant rights to
Third Parties to, research, Develop or Commercialize any *** or *** using ***. 
 (ii) On a BI Exclusive
Target-by-BI Exclusive Target basis, MacroGenics and its Affiliates shall not, nor shall MacroGenics or its Affiliates grant rights to Third Parties to, research, Develop or Commercialize any molecule or product using *** that is *** during the
earlier of *** 

  
 31 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) BI Exclusivity. Subject to the exceptions set forth in Section 5.8(c),
except with respect to ***. For the avoidance of doubt, and subject to the immediately preceding sentence, BI shall have the right to research, Develop and Commercialize any molecule or product *** 

(c) Exceptions. The prohibitions set forth in Sections 5.8(a) and 5.8(b) do not apply to any of the following: 

(i) with respect to activities by MacroGenics, subject to Section 5.8(a)(ii), the Development and Commercialization
of molecules and products Directed to Terminated Targets, however without using any MacroGenics *** created by ***, including Know-How that is solely and specifically related to such MacroGenics ***; 

(ii) subject to Section 5.8(a)(ii), any molecule or product Directed against a single Target included in a
Collaboration Target, however with respect to activities by MacroGenics without using any MacroGenics *** created by ***, including Know-How that is solely and specifically related to such MacroGenics ***; and 

(iii) where a Party’s or its Affiliate’s (the “Acquiring/Acquired Party”) involvement in such
activity results from its acquisition of or by a Third Party (by merger or otherwise), and such Third Party was engaged in such activity prior to such acquisition or merger; provided that (A) the Acquiring/Acquired Party shall not
provide any such Third Party with rights or access to MacroGenics Intellectual Property (where MacroGenics or its Affiliate is the Acquiring/Acquired Party ) or BI Intellectual Property (where BI or its Affiliate is the Acquiring/Acquired Party )
for use in connection with activities prohibited by Section 5.8 if undertaken by the Acquiring/Acquired Party, and (B) in the case where the Acquiring/Acquired Party acquires a Third Party (by merger or otherwise), the Acquiring/Acquired
Party does not expand the scope of, or increase the financial commitment to, such Third Party activities, from what it was immediately prior to the acquisition. 
 For the avoidance of doubt and for purposes of this Section 5.8(c) product shall not be inclusive of any Product including Collaboration DARTs. 

ARTICLE VI 

PAYMENTS; ROYALTIES AND REPORTS 
 6.1 Initial License Payment. In consideration of the rights to MacroGenics Intellectual Property granted herein within *** of the later of the Effective Date and receipt of Invoice and duly signed
original of the Agreement, BI shall pay to MacroGenics a non-creditable and non-refundable sum of Fifteen Million Dollars ($15,000,000). 
 6.2 Equity Investment. BI or any of its Affiliates and MacroGenics shall enter good faith negotiations with the objective of completing such negotiations within *** after the Effective Date
regarding the terms and conditions of a definitive stock purchase agreement 

  
 32 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
whereby BI or any of its Affiliates shall purchase Ten Million Dollars ($10,000,000.00) of Preferred Stock of MacroGenics. The pricing of such Preferred Stock shall be no less than $0.6521 per
share. The other terms will be no less favorable to MacroGenics’ current investors as the terms and conditions established in the Series D-2 equity documentation. If BI and MacroGenics are not able to conclude and execute a definitive stock
purchase agreement within *** of the Effective Date, *** and require that *** of Preferred Stock on the same terms and conditions as purchased by existing Series D-2 investors, including a share price of ***, under a definitive stock purchase
agreement executed by both Parties. ***. 
 6.3 Programs Funding. 

(a) Maintenance Payments. In consideration of the rights to MacroGenics Intellectual Property granted herein, BI shall pay
MacroGenics the following non-refundable, non-creditable, non-accountable amounts: (*** within ***of receipt of an Invoice, which shall be provided by MacroGenics to BI on or after***of the Effective Date; ***within
*** of receipt of a written Invoice, which shall be provided by MacroGenics to BI on or after***of the Effective Date; and ***within ***of receipt of a written Invoice, which shall be provided by MacroGenics to BI on or
after ***of the Effective Date (each a “Maintenance Payment”). 
 (b) Out-of Pocket Costs and FTE
Payments. 
 (i) Out-of-Pocket Costs. BI shall reimburse MacroGenics all out-of-pocket costs
specifically identifiable, documented and incurred by MacroGenics and payable to Third Parties in connection with any Program, as specifically contemplated in the applicable Research Plan, in accordance with agreed upon budget for such expenses set
forth in each such Research Plan or as otherwise agreed to by BI. BI shall reimburse such out-of-pocket costs within thirty (30) days after receipt of an Invoice issued by MacroGenics within thirty (30) days after the end of each Calendar
Quarter describing such costs in reasonable detail and providing appropriate supporting documentation. For avoidance of doubt, no out-of-pocket costs will be reimbursed by BI unless covered by an agreed upon budget for such expenses set forth in a
Research Plan. 
 (ii) MacroGenics Committed FTEs. It is the Parties’ intent that the Research Plans
will require *** FTEs each Calendar Quarter in the performance of the activities under the Research Plans during the Initial Research Term, and both Parties will use reasonable efforts to limit substantial reductions *** from Calendar
Quarter to Calendar Quarter). During the Research Term, on or before the later of thirty (30) days of BI’s receipt of an Invoice thereof, and the first day of each Calendar Quarter, BI shall pay MacroGenics the FTE Costs for ***
during such Calendar Quarter; provided that such payment shall be pro-rated in the first and last Calendar Quarters of the Research Term. For purpose of clarity, during the period of time from the Effective Date through the end of 2011, such
quarterly payment shall be equal to ***. Together with each Invoice, MacroGenics shall provide supporting documentation certified by MacroGenic’s chief financial officer for the purpose of verifying the calculation of the FTE charges
paid by BI, for the previous Calendar Quarter. In the event that MacroGenics provides *** in a Calendar Quarter to perform activities under the Research Plans, then following the end of such Calendar Quarter MacroGenics shall provide a
written Invoice for such additional 

  
 33 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
FTEs together with supporting documentation certified by MacroGenics’ chief financial officer for the purpose of verifying the calculation of FTEs to be charged to and paid by BI. BI shall
pay such Invoiced amounts within thirty (30) days after receipt of the respective Invoice after each Calendar Quarter. In case that the supporting documentation shows that BI has overpaid the FTE payments for such Calendar Quarter, MacroGenics
will, together with the supporting documentation, send BI a credit note for the amount overpaid, upon which BI may credit the amount overpaid against any FTE payments due by BI, or in case no further FTE payments are due by BI, MacroGenics will
within thirty (30) days refund the amount overpaid to BI. Notwithstanding the foregoing, BI shall not be entitled to a credit for any such overpayment in the event that such overpayment is a result of BI modifying any of the then current
Research Plans to require *** MacroGenics FTEs in the aggregate, provided that MacroGenics had the capacity and was willing to commit the number of FTEs required under the original Research Plan. 

(iii) Additional MacroGenics FTEs. In the event that BI requests, and MacroGenics agrees to provide, *** to
perform activities under the Research Plans, the number of FTEs set forth in subclause (ii) above shall be increased to account for such additional FTEs and BI shall reimburse MacroGenics its FTE Costs for such additional FTEs in accordance
with subclause (ii) above. 
 6.4 Development Milestone Payments. 

(a) Development Milestone Payments. BI shall pay to MacroGenics the following non-refundable, non-creditable milestone payments
with respect to the *** Collaboration DART or Product in the each Program, as applicable, upon the *** occurrence of the applicable milestone event by such Collaboration DART or Product in each Program. In the event *** Product is
developed in the same Program which is not a Replacement Product, then the development and sales milestone payments set forth in Sections 6.4(a)(ii—xi) and 6.5(a)(i – iii), respectively shall be reduced by*** for such additional
Product achieving each specified milestone event. *** Notwithstanding the foregoing, if (x) Development of a Product in a Program is terminated after milestone payment(s) have been made with respect to such Product; and (y) a
different Product in such Program is selected to replace the terminated Product (“Replacement Product”), then there shall be *** due upon achievement of the same milestones by such Replacement Product for which MacroGenics
already received a milestone payment for the original Product. For the purposes of this Section 6.4 and Section 6.5, a Product in a Program shall be different from another Product in such Program ***. 

 

			
	 Milestone Event
	  	 Payment

		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***

  
 34 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

			
	 Milestone Event
	  	 Payment

		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***
		
	 ***
	  	***

 (b) If the milestone set forth in Section 6.4(a)(ii) is achieved with respect to the ***
Product in a Program prior to the achievement of the milestone set forth in Section 6.4(a)(i) for such Product, then the milestone payment set forth in Section 6.4(a)(i) shall be due and payable simultaneously with the payment of the later
milestone event. 
 (c) If any milestone set forth in Section 6.4(a)(iii) is achieved with respect to the ***
Product in a Program prior to the achievement of the milestone set forth in Section 6.4(a)(i) or (ii) for such Product, then (x) with respect to the *** such Product the milestone payments set forth in Section 6.4(a)(i)
and/or (ii) and (y) with respect to the *** such Product the milestone payment set forth in Section 6.4(a)(ii) shall be due and payable simultaneously with the payment for achievement of the later milestone event. 

(d) Payment of Milestones. BI shall provide written notice to MacroGenics of the achievement of any milestone event set forth in
Section *** after the occurrence of such milestone event and shall make the corresponding milestone payment within thirty (30) days after receipt of an Invoice therefor. 

6.5 Sales Milestone Payments. 
 (a) Sales Milestone Payments. BI shall make the non-refundable, non-creditable payments to MacroGenics set forth below upon the earliest achievement of each of the corresponding milestone events by
the *** Product within each Program to achieve such milestone: 
  

			
	 Milestone Event
	  	 Payment

		
	(i) First occurrence of aggregate worldwide Net Sales of the Product of greater than*** in a Calendar Year	  	***

  
 35 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

			
	 Milestone Event
	  	 Payment

		
	(ii) First occurrence of aggregate worldwide Net Sales of the Product of greater than *** in a Calendar Year	  	***
		
	(iii) First occurrence of aggregate worldwide Net Sales of the Product of greater than *** in a Calendar Year	  	***

 (b) Payment of Milestones. BI shall make the milestone payments required by Section 6.5(a)
in accordance with Section 6.7. For purposes of clarity, more than one of the sales milestone payments may be earned concurrently based on the same Net Sales of the applicable Product. *** 

6.6 Royalties. On a Product-by-Product basis, BI shall pay to MacroGenics royalties on the worldwide Net Sales as provided in this
Section 6.6: 
 (a) Royalty Rate. BI shall pay MacroGenics royalties on Net Sales of Products at the following
rates *** with respect *** achieved during the applicable Calendar Year: 
  

			
	 Annual Net Sales Threshold
	  	 Royalty Rate

		
	 (i) On the first *** in Annual Net Sales
	  	***
		
	 (ii) On that portion of Annual Net Sales greater than *** but less than ***
	  	***
		
	 (iii) On that portion of Annual Net Sales greater than ***
	  	***

 (b) Royalty Term. BI’s royalty obligations to MacroGenics under this Section 6.6 shall
expire on a country-by-country and Product-by-Product basis on the later of: (i) ***or (ii) *** (the “Royalty Term”). 
 (c) Royalty Adjustments. 
 (i) Non Patented Product. In the event a
Product is sold in a country and the composition of matter of the Product, or the use of such Product for an indication for which it has received Regulatory Approval and has been commercialized in such country is not covered by a Valid Claim within
MacroGenics Patent Rights, Joint Patent Rights and/or Collaboration DART Patent Rights in such country, then the royalty rate for such Product in such country shall be reduced by ***. 

(ii) Generic Competition. In the event that a Product faces Generic Competition in a particular country of the Territory, the
applicable royalty rate for such country for such Product shall be reduced to by *** during the applicable Calendar Quarter in which such Generic Competition exists. 

  
 36 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (iii) Third Party Offset. If BI determines in good faith that, in order to avoid
infringement of any Patent Right not licensed hereunder that Covers a Collaboration DART or Product, it is reasonably necessary to obtain a license from a Third Party in order to Develop, Commercialize, make, have made, use, offer for sale, sell or
import such Collaboration DART or Product in a country in the Territory and to pay a royalty or other consideration under such license (including in connection with the settlement of a patent infringement claim), then (A) the royalty payments
due under Article VI with respect to Net Sales for such Product in such country shall be reduced by *** of the amount payable by BI to such Third Party that are reasonably and appropriately allocable to the Collaboration DART or Product in
such country, and/or (B) the milestone Payments due under Section 6.4(a)(iv-xi) and Section 6.5 with respect to the respective milestone payment for such Product if the Product is the *** Product in a Program for which
milestones are due shall be reduced by *** of the amount payable by BI to such Third Party that are reasonably and appropriately allocable to the Collaboration DART or Product, provided, however, that (1) BI shall not be
*** related to a Collaboration DART or Product to a Third Party that occur prior to *** for the relevant Collaboration DART or Product; and (2) in no event shall the aggregate deductions under this Section 6.6(c) reduce the
royalty rate paid by BI in respect of Net Sales of such Product pursuant to Section 6.6(a) to less than *** and with respect to the milestone payments due under *** and Section 6.5 more than *** for such ***
Product in a Program. For purposes of clarity, milestone payments which are due for the *** Product in a Program that is not a Replacement Product shall not be subject to any offset under this Section 6.6(c)(iii). BI shall be entitled to
accumulate amounts permitted to be deducted in a prior period, but not deducted on account of such minimum royalty percentage, and deduct such amounts in a future period. 
 (d) No Further Deductions. Except as expressly provided in this Section 6.6, there shall not be any offsets to or deductions from the royalties payable pursuant to this Section 6.6.

 6.7 Reports; Payments. Within *** after the end of each Calendar Quarter during which there are Net Sales
giving rise to a payment obligation under Section 6.5 or 6.6, BI shall submit to MacroGenics a report identifying for each Product, the Net Sales for such Product for each country for such Calendar Quarter, the calculation of royalties
(including gross sales and all deductions taken from gross sales), and the royalties and the sales milestones payable to MacroGenics. Concurrently with each such report, BI shall pay to MacroGenics all royalties and sales milestones payable by it
under Sections 6.5 and 6.6. 
 6.8 Books and Records; Audit Rights. Each Party (the “Audited
Party”) shall keep (and, in the case of BI, shall cause its Affiliates and Sublicensees to keep) complete, true and accurate books and records in accordance with its Accounting Standards in sufficient detail for the other Party (the
“Auditing Party”) to determine the payments due and costs incurred under this Agreement. Each Auditing Party shall have the right, once annually at its own expense, to have an independent, certified public accounting firm of
nationally recognized standing, selected by the Auditing Party and reasonably acceptable to the Audited Party, review any such records of the Audited Party in the location(s) where such records are maintained by the

  
 37 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Audited Party upon reasonable notice (which shall be no less than *** prior notice) and during regular business hours and under obligations of strict confidence, for the sole purpose of verifying
the accuracy of the amounts paid under this Agreement within a *** period preceding the date of the request for review. The report of such accounting firm shall be limited to a certificate stating whether any report made or invoice or payment
submitted by the Audited Party during such period is accurate or inaccurate and the actual amounts of Clinical Development Costs, FTE Costs, MacroGenics out-of-pocket expenses under Section 6.3(b)(i), and any payments under Section 3.7,
and the amount of any Net Sales, milestone or royalty discrepancy. No other information shall be provided to the Auditing Party. The Audited Party shall receive a copy of each such report concurrently with receipt by the Auditing Party. Should such
inspection lead to the discovery of a discrepancy to the Auditing Party’s detriment, the Audited Party shall pay the amount of the discrepancy within *** after its receipt from the accounting firm of the certificate showing the amount of the
discrepancy. The Auditing Party shall pay the full cost of the review unless the underpayment of milestones, royalties, FTE Costs, MacroGenics out-of-pocket expenses under Section 6.3(b)(i) and/or Clinical Development Costs is greater than
*** of the amount due for the applicable period, in which case the Audited Party shall pay the reasonable costs charged by such accounting firm for such review. Any overpayment of royalties by BI revealed by an inspection shall be
fully-creditable against future royalty payments under Section 6.6. 
 6.9 Taxes. 

(a) If Laws require withholding by BI of any taxes imposed upon MacroGenics on account of any royalties and/or payments, paid under this
Agreement, such taxes shall be deducted by BI as required by Law from such remittable royalty and/or payment and shall be paid by BI to the proper tax authorities. Official receipts of payment of any withholding tax shall be secured and sent to
MacroGenics as evidence of such payment. The Parties shall exercise their best efforts to ensure that any withholding taxes imposed are reduced as far as possible under the provisions of any relevant tax treaty. 

6.10 United States Dollars. All dollar ($) amounts specified in this Agreement are United States dollar amounts. 

6.11 Payment Method and Currency Conversion. Except as otherwise provided herein, all payments due to a Party hereunder shall be
due and payable within *** after receipt of an invoice from the other Party and shall be paid via a bank wire transfer to such bank account as such Party shall designate. For the purposes of determining the amount of any sales milestone payment
under Section 6.5 or royalties due for the relevant Calendar Quarter under Section 6.6, the amount of Net Sales in any foreign currency shall be converted into United States dollars in accordance with the normal business practice of BI. In
accordance with BI’s normal business practice, when Products are sold for monies other than Euro, the earned royalties in such countries will be determined by (a) converting the Net Sales in each country in the Territory into Euro, using
the monthly exchange rates as customarily used by BI in its regular accounting system (as of the Effective Date, using the monthly exchange rates published by the European Central Bank (ECB) in Frankfurt/Main, Germany) and (b) calculating the
respective royalty payments per country based on the respective Euro values. 

  
 38 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 6.12 Blocked Payments. If by reason of applicable Laws in any country in the
Territory, it becomes impossible or illegal for BI or its Affiliates or Sublicensees to transfer, or have transferred on its behalf, milestones, royalties or other payments to MacroGenics, BI shall promptly notify MacroGenics of the conditions
preventing such transfer and such royalties or other payments shall be deposited in local currency in the relevant country to the credit of MacroGenics in a recognized banking institution with a good creditworthiness designated by MacroGenics or, if
none is designated by MacroGenics within thirty (30) days, in a recognized banking institution selected by BI or its Affiliate or Sublicensee, as the case may be, and identified in a written notice given to MacroGenics. If so deposited in a
foreign country, BI shall provide, or cause its Affiliate or Sublicensee to provide, reasonable cooperation to MacroGenics so as to allow MacroGenics to assume control over such deposit as promptly as practicable. 

6.13 Late Payments. Payments not made within *** after the due dates pursuant to the terms of this Agreement, shall bear interest
at a rate of the *** U.S. dollar LIBOR rate effective for the date that payment was due (as published in The Wall Street Journal, Eastern Edition) *** annum, Calculation of interest will be made for the exact number of days the payment was
past due based on a year of 360 days (actual/360). 
 ARTICLE VII 

PATENTS 
 7.1 Ownership. 
 (a) Each Party shall exclusively own all Know-How and
Inventions, invented solely by employees, agents and consultants of such Party or its Affiliates, and any Patent Rights related thereto subject to the licenses granted under ARTICLE V and except as set forth in Section 7.1(b). Inventions
invented jointly by employees, agents, or consultants of the Parties or their Affiliates (“Joint Intellectual Property” and any Patent Rights included in such Joint Intellectual Property, “Joint Patent Rights” and
any Know-How included in such Joint Intellectual Property, “Joint Know-How”) shall be Jointly Owned, subject to the licenses granted under ARTICLE V. Inventorship shall be determined in accordance with U.S. patent Laws for purposes
of determining ownership in accordance with the foregoing. 
 (b) Notwithstanding Section 7.1(a), Collaboration DART
Patent Rights regardless of the inventorship shall be Jointly Owned by the Parties, subject to the licenses granted under ARTICLE V and (i) MacroGenics hereby assigns to BI a *** undivided interest in any such Collaboration DART Patent
Right that is solely owned by MacroGenics and (ii) BI hereby assigns to MacroGenics a *** undivided interest in any such Collaboration DART Patent Right that is solely owned by BI. 

(c) Except as expressly provided in this Agreement, and subject to any restrictions herein (including the licenses granted under ARTICLE
V), with respect to Joint Intellectual Property (other than Collaboration DART Patent Rights), each joint owner may assign, license, sell or otherwise encumber or transfer any such interest without the prior written approval of the other Party and
without obligation to account or provide compensation to the other Party. 

  
 39 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (d) With respect to Collaboration DART Patent Rights, (i) each joint owner may only
assign, license, sell or otherwise encumber or transfer any such interest *** of the other Party, subject to Section 5.4, which shall not be unreasonably withheld; provided, however, (ii) that either Party may, ***, assign
its interest in such Collaboration DART Patent Rights, in whole or in part, to any of ***; provided further that such Affiliate agrees to be bound by the obligations hereunder with respect to such Collaboration DART Patent Rights and the
assigning Party shall remain jointly and severally liable with such Affiliate in respect of all obligations so assigned. Any such *** assignment, license or other disposition under (i) or (ii) of such Collaboration DART Patent Rights shall
at all times be and remain subject to the rights granted and accompanying conditions and obligations with respect thereto under this Agreement. ***. 
 7.2 BI Prosecution and Maintenance of Patent Rights. Subject to Section 7.4, BI shall be responsible for the Prosecution and Maintenance of the BI Patent Rights, including any related
interference, opposition, re-examination, re-issue, revocation or any official proceeding involving patents and patent applications, at its sole expense. 
 7.3 MacroGenics Prosecution and Maintenance of Patent Rights. Subject to Section 7.4 MacroGenics shall be responsible for the Prosecution and Maintenance of the MacroGenics Patent Rights,
including any related interference, opposition, re-examination, re-issue, revocation or any official proceeding involving patents and patent applications, at its sole expense. 
 7.4 Prosecution and Maintenance of Joint Patent Rights and Collaboration DART Patent Rights. The Prosecution and Maintenance of any Joint Patent Right and/or Collaboration DART Patent Right shall
be through a mutually selected U.S. patent counsel. Within sixty (60) days following the Effective Date, the Parties shall agree on a patent counsel (“Joint Counsel”) who shall be engaged by both Parties for the Prosecution and
Maintenance of all Collaboration DART Patent Rights and Joint Patent Rights (the “Joint Counsel Patent Rights”). The following terms shall apply to each Joint Counsel Patent Right: 

(a) Joint Counsel shall give BI and MacroGenics (or each Party’s designee) an opportunity to review the text of each application,
office action response or other substantive document for a Joint Counsel Patent Right before filing with any patent office in the Territory, shall incorporate BI’s and MacroGenics’ (or each Party’s designee) reasonable comments with
respect thereto, and shall supply BI and MacroGenics (or each party’s designee) with a copy of each such application, office action response or other substantive document as filed, together with notice of its filing date and serial number. In
the event that MacroGenics and BI provide Joint Counsel with conflicting instructions regarding filing, prosecuting and maintaining a Joint Counsel Patent Right, Joint Counsel shall make the Parties aware of such conflicting instructions and, if the
Parties are not able to resolve such conflict within a reasonable time prior to the applicable filing deadline, the Joint Counsel shall take such action as would reasonably expected to maximize the scope, extent and coverage of such Joint Counsel
Patent Right. For any Collaboration DART Patent Right that claims an invention which was solely invented by MacroGenics and Covers improvements to the DART Platform not specifically related to the *** shall become solely owned by MacroGenics
(and BI shall and hereby does assign all right, title, and interest it has in such Collaboration DART Patent Right to 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
MacroGenics) and become a MacroGenics Patent Right subject to the licenses granted under ARTICLE V. For any Collaboration DART Patent Right that claims an invention which was solely invented by
BI and Covers *** such Collaboration DART Patent Right shall become solely owned by BI (and MacroGenics shall and hereby does assign all right title and interest it has in such Collaboration DART Patent Right to BI) and become a BI Patent Right. In
the event that such Collaboration DART Patent Right becomes a MacroGenics Patent Right or a BI Patent Right, the Parties shall cooperate with each other to (1) amend the MacroGenics Patent Right or a BI Patent Right to delete any claims
Covering the Collaboration DART or its method of use or method of manufacture, and (2) file, prosecute and maintain a divisional or continuation application of said Collaboration DART Patent Right having claims Covering the Collaboration DART
or its method of use or method of manufacture and which will remain a Collaboration DART Patent Right Jointly Owned by the Parties. 
 (b) Both Parties shall cooperate with Joint Counsel in Prosecution and Maintenance of patent applications for Joint Counsel Patent Rights, including providing Joint Counsel with data and other information
as appropriate with respect thereto. 
 (c) Joint Counsel shall keep BI and MacroGenics advised of the status of the
Prosecution and Maintenance of Joint Counsel Patent Rights, including actual and prospective patent filings for Joint Counsel Patent Rights and shall provide each Party with advance copies of any papers related thereto. Joint Counsel shall promptly
give notice to BI and MacroGenics of the grant, lapse, revocation, surrender, invalidation, or abandonment of any Joint Counsel Patent Rights. 
 (d) The Parties shall *** charged by Joint Counsel with respect to the Prosecution and Maintenance of Joint Counsel Patent Rights and all other mutually agreed and approved out-of-pocket costs and
expenses incurred by either Party in connection with such Prosecution and Maintenance of Joint Counsel Patent Rights. 
 (e)
Should BI decide that it does not wish to continue paying for the Prosecution and Maintenance of a particular Joint Counsel Patent Right, BI shall notify MacroGenics and Joint Counsel at least ***in advance of the next deadline and shall
allow MacroGenics to assume responsibility for such Prosecution and Maintenance payments incurred after *** after receipt of BI’s notice. If MacroGenics assumes such responsibility, then: (i) MacroGenics may designate any counsel of
its choice to handle the Prosecution and Maintenance of such Joint Counsel Patent Right and it shall cease to be part of the Joint Counsel Patent Rights and no further royalty obligations shall exist under this Agreement with respect thereto,
(ii) BI shall lose its licenses to such Joint Counsel Patent Right under ARTICLE V and the covenant not to sue under Section 5.5 shall not apply with respect to such Joint Counsel Patent Right, and (iii) BI shall and hereby does
transfer and assign all right, title and interest in said Joint Counsel Patent Right to MacroGenics as the sole owner. If MacroGenics decides not to assume such responsibility, then it shall instruct Joint Counsel to abandon the Prosecution and
Maintenance of such Collaboration DART Patent Right and/or Joint Patent Right. 
 (f) Should MacroGenics decide that it does
not wish to continue paying for the Prosecution and Maintenance of a particular Joint Counsel Patent Right, MacroGenics shall notify BI and Joint Counsel at least *** in advance of the next deadline and

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
shall allow BI to assume responsibility for such Prosecution and Maintenance payments incurred after ***after receipt of MacroGenics’ notice. If BI assumes such responsibility, then:
(i) BI may designate any counsel of its choice to handle the Prosecution and Maintenance of such Joint Counsel Patent Right and it shall no longer be considered a Joint Patent Right or Collaboration DART Patent Right, as applicable,
(ii) such Joint Counsel Patent Right shall be deemed a BI Patent Right; and (iii) MacroGenics shall and hereby does transfer and assign all right, title and interest in said Joint Counsel Patent Right to BI as the sole owner. If BI decides
not to assume such responsibility, then it shall instruct Joint Counsel to abandon the Prosecution and Maintenance of such Joint Counsel Patent Right. 
 7.5 Third Party Infringement. 
 (a) Notice. Each Party shall
promptly report in writing to the other Party any known or suspected (i) infringement of any of the MacroGenics Patent Rights, BI Patent Rights, Joint Patent Rights, or Collaboration DART Patent Rights, or (ii) unauthorized use or
misappropriation of any of the MacroGenics Know-How, BI Know-How, Joint Know-How or Collaboration DART Know-How of which such Party becomes aware, and shall provide the other Party with all available evidence regarding such known or suspected
infringement or unauthorized use. 
 (b) Initial Right to Enforce. Subject to Section 7.5(c), BI shall have the
first right, but not the obligation, to initiate a lawsuit or take other reasonable action to (i) enforce the Joint Patent Rights and Collaboration DART Patent Rights and (ii) enforce the MacroGenics Patent Rights solely with respect to an
infringement by a Third Party infringing the relevant MacroGenics Patent Rights by making, using or selling a product that competes with a Product. Notwithstanding the foregoing sentence, BI shall not initiate any such lawsuit or other enforcement
action asserting any such MacroGenics Patent Rights, Joint Patent Rights or Collaboration DART Patent Rights without first consulting with MacroGenics and giving good faith consideration to any reasonable objection from MacroGenics regarding
BI’s proposed course of action. MacroGenics shall cooperate in the prosecution of such suit as may be reasonably requested by BI, including joining any action as party-plaintiff at BI’s sole discretion; provided that BI shall
promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) agreed by BI in advance and actually incurred by MacroGenics in connection with such cooperation. 

(c) Step-In Right. If BI does not initiate a lawsuit or take other reasonable action pursuant to Section 7.5(b) with respect
to any MacroGenics Patent Rights, Joint Patent Rights or Collaboration DART Patent Rights, then MacroGenics shall have the right (in cases where MacroGenics has standing), but not the obligation, to initiate such lawsuit or take such other action,
*** and giving good faith consideration to BI’s reason(s) for not initiating a lawsuit or taking other action. For this purpose, BI shall cooperate in the prosecution of such suit as may be reasonably requested by MacroGenics, including
joining any action as party-plaintiff at BI’s sole discretion; provided that MacroGenics shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) agreed by MacroGenics in advance and actually
incurred by BI in connection with such cooperation. 

  
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treatment. An unredacted 
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 (d) Conduct of Certain Actions; Costs. The Party initiating legal action shall have
the sole and exclusive right to select counsel for any suit initiated by it pursuant to Section 7.5(b) or 7.5(c) (the “Initiating Party”). The Initiating Party shall bear its own out-of-pocket costs incurred in any such legal
action, including the fees and expenses of the counsel selected by it. The other Party shall have the right to participate and be represented in any such legal action (in cases where such other Party has standing) by its own counsel at its own
expense. The Initiating Party shall have the final say about the strategy and decisions in the suit and any settlement. 
 (e)
Recoveries. Any amounts recovered in any action or settlement of any such action shall be allocated first to *** incurred in such action and any reward remaining shall be allocated to the Initiating Party; provided that if BI is the
Initiating Party, with respect to any remaining portion of such recovery, MacroGenics shall receive either (i) ***. 
 (f)
Section on Patent Disputes under U.S. Biologics Price Competition and Innovation Act of 2009. Each Party shall immediately give written notice to the other Party of any notice received from a Third Party of an application for FDA approval
under the U.S. Biologics Price Competition and Innovation Act of 2009 (or any amendment or successor statute thereto) for a biosimilar biologic product referencing a Product or any certification under a similar statutory or regulatory requirement in
any non-United States country in the Territory claiming that a Collaboration DART Patent Right, Joint Patent Right or MacroGenics Patent Right covering any Product is invalid or unenforceable or that infringement will not arise from the Development,
manufacture or Commercialization of a proposed biosimilar biologic product by a Third Party. Upon the giving or receipt of such notice, BI shall have the first right, but not the obligation, to bring an infringement action against such Third Party
in connection with such certification. In the case of a MacroGenics Patent Right, Joint Patent Right or Collaboration DART Patent Right, BI shall notify MacroGenics in writing of its intent to exercise, or not exercise, this right at least
*** prior to the date set forth by statute or regulation for the patent owner to take its initial action in such proceedings. MacroGenics shall have the right to initiate such an action if BI provides written notice of its intent not to
exercise such right or fails to provide any notice of intent at least *** prior to the date set forth by statute or regulation for the patent owner to take its initial action in such proceedings. The non-Initiating Party in any such action
shall cooperate with the Initiating Party in accordance with Sections 7.5(b) and (c), as applicable. All other prelitigation, litigation, settlement, costs, and recovery matters in a patent dispute under the U.S. Biologics Price Competition and
Innovation Act of 2009 or any certification under a similar statutory or regulatory requirement in any non-United States country in the Territory shall additionally be governed by the provisions of Section 7.5(a) to 7.5(e) for Third Party
Infringement generally. 
 7.6 Patent Invalidity Claim. Each Party shall promptly notify the other in the event of any
legal or administrative action by any Third Party against a MacroGenics Patent Right, BI Patent Right, Joint Patent Right or Collaboration DART Patent Right of which it becomes aware, including any nullity, revocation, reexamination or compulsory
license proceeding. BI shall have the first right, but not the obligation, at its expense, to defend against any such action relating to the BI Patent Rights, Joint Patent Rights and/or Collaboration DART Patent Rights. If BI does not defend against
any such action involving a Joint Patent Right and/or Collaboration DART Patent Right, then MacroGenics shall have the right, but not the 

  
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treatment. An unredacted 
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obligation, to defend such action at MacroGenics’ expense. MacroGenics shall have the first right, but not the obligation, at its expense, to defend against any such action relating to the
MacroGenics Patent Rights. 
 7.7 Patent Term Extensions. BI shall have full and exclusive right to determine and control
all filings of requests for any patent term extensions or supplemental patent certificates or their equivalents in any country in the Territory for any Joint Patent Right, Collaboration DART Patent Right and BI Patent Right, and all costs and
expenses relating thereto shall be paid by BI. MacroGenics shall have full and exclusive right to determine and control all filings of requests for any patent term extensions or supplemental patent certificates or their equivalents in any country in
the Territory for any MacroGenics Patent Right and all costs and expenses relating thereto shall be paid by MacroGenics. The Parties shall reasonably cooperate with each other in obtaining patent term extensions or supplemental protection
certificates or their equivalents in any country in the Territory, where applicable to MacroGenics Patent Rights. 
 7.8
Patent Marking. BI shall mark Products sold by BI, its Affiliates and/or Sublicensees in such countries and to such extent where BI and MacroGenics mutually agree and as otherwise required to comply with patent marking statutes in the
applicable country. 
 ARTICLE VIII 
 CONFIDENTIALITY AND PUBLICATION 
 8.1 Nondisclosure
Obligation. The Parties agree that during the Term, and for a period of *** thereafter, a Party receiving Confidential Information of the other Party shall (a) maintain in confidence such Confidential Information to the same extent
such Party maintains its own confidential information, (b) not disclose such Confidential Information to any Third Party without the prior written consent of the other Party, and (c) not use such Confidential Information for any purpose
except those permitted by this Agreement. 
 8.2 Authorized Disclosure. Notwithstanding Section 8.1, a Party may
disclose Confidential Information of the other Party to the extent such disclosure is reasonably necessary in the following instances: 
 (a) Prosecuting and Maintaining Patent Rights; 
 (b) filings with Regulatory
Authorities; 
 (c) complying with applicable Laws and/or submitting information to tax or other Governmental Authorities;
provided that if the receiving Party is required by Law to make any public disclosures of Confidential Information of the disclosing Party, to the extent it may legally do so, it will give reasonable advance notice to the disclosing Party of
such disclosure and will use its reasonable efforts to secure confidential treatment of such Confidential Information prior to its disclosure (whether through protective orders or otherwise); 

(d) to its Affiliates, and to prospective and actual acquirers, licensees, Sublicensees, employees, consultants, agents, accountants,
lawyers, advisors and investors, on a 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
need to know basis, each of whom prior to disclosure must be bound by written obligations of confidentiality and non-use equivalent in scope to those set forth in this ARTICLE VIII and that are
of reasonable duration in view of the circumstances of the disclosure; and 
 (e) to the extent mutually agreed to in writing
by the Parties. 
 8.3 Scientific Publications. During the Research Term, neither Party shall first publish or first
present in a public forum the scientific or technical results of any activities performed pursuant to this Agreement without the opportunity for prior review and comment by the other Party. Each Party agrees to provide the other Party with the
opportunity to review any proposed abstracts, manuscripts or scientific presentations (including verbal presentations) which relate to its activities performed pursuant to this Agreement at least *** prior to its intended submission for
publication and agrees, upon request, not to submit any such abstract or manuscript for publication until the other Party is given a reasonable period of time *** secure patent protection for any material in such publication which it believes
to be patentable. Both Parties understand that a reasonable commercial strategy may require delay of publication of information or filing of patent applications first. The Parties agree to review and decide whether to delay publication to permit
filing of patent applications. Neither Party shall have the right to publish or present Confidential Information of the other Party. Nothing contained in this Section 8.3 shall prohibit the inclusion of information necessary for a patent
application, provided that the non-filing Party is given a reasonable opportunity to review the information to be included prior to submission of such patent application. For avoidance of doubt any publication shall be consistent with BI’s
internal publication strategy. After the Research Term, BI and its Affiliates may publish or present any results, data or scientific findings of any activities performed pursuant to this Agreement without the prior review of MacroGenics. After the
Research Term, neither MacroGenics nor its Affiliates may publish or present any results, data or scientific findings of any activities performed pursuant to this Agreement without prior review and prior written consent of BI. 

8.4 Press Releases and Other Permitted Disclosures. 
 (a) MacroGenics and BI each agree not to disclose any terms and conditions of this Agreement to any Third Party, except as described below in this Section 8.4. The press release announcing the
collaboration contemplated by this Agreement is set forth in Schedule 8.4, and the Parties will cooperate in the release thereof as soon as practicable after the Effective Date. Subject to the other provisions of this Agreement, no other
press release, public statement or disclosure concerning the existence or terms of this Agreement shall be made, either directly or indirectly, by either Party, without first obtaining the written approval of the other Party, which such approval
shall not be unreasonably withheld or delayed *** following submission to the approving Party of a draft of the respective press release, public statement or disclosure. In no event shall such subsequent press releases, public statements or
disclosures by MacroGenics disclose, if previously undisclosed, ***; provided that MacroGenics may disclose the receipt of any milestone event but not the actual amount of such milestone payment under this Agreement. Once any public statement
or disclosure has been approved in accordance with this Section 8.4, then either Party may appropriately communicate information contained in such permitted statement or disclosure. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Either Party may disclose the existence and terms of this Agreement in confidence:

 (i) (A) to its attorneys, professional accountants, and auditors, and (B) bankers or other financial
advisors in connection with an initial public offering, private financing or other strategic transaction, or corporate valuation for internal purposes; provided that any such disclosure to such professional accountants, auditors, bankers or
other financial advisors is under an agreement to keep the terms of confidentiality and non-use no less rigorous than the terms contained in this Agreement and to use such information solely for the applicable purpose permitted pursuant to this
Section 8.4(b)(i); 
 (ii) to potential acquirers (and their respective attorneys and professional
advisors), in connection with a potential merger, acquisition or reorganization; provided that (A) the Party making the disclosure has a bona fide offer (e.g., a signed letter of intent) from such Third Party for such a transaction, and
(B) such disclosure is under an agreement to keep the terms of confidentiality and non-use no less rigorous than the terms contained in this Agreement and to use such information solely for the purpose permitted pursuant to this
Section 8.4(b)(ii); 
 (iii) to existing or potential investors, lenders or permitted assignees of such
Party (and their respective attorneys and professional advisors); provided that such disclosure is under an agreement to keep the terms of confidentiality and non-use no less rigorous than the terms contained in this Agreement; and

 (iv) to potential licensees or sublicensees or potential acquirors of such Party (and their respective
attorneys and professional advisors); provided that *** 
 (c) Notwithstanding the foregoing provisions of this
ARTICLE VIII, a Party may disclose the existence and terms of this Agreement, however excluding, as far as legally possible, Schedules 1.5, 1.47, 1.77, and 1.81, or a Party’s or the Parties’ activities under this Agreement where required,
as reasonably determined by the legal counsel of the disclosing Party, by applicable Law, by applicable stock exchange regulation or by order or other ruling of a competent court, although, to the extent practicable, the other Party shall be given
*** notice of any such legally required disclosure to comment and reasonably consider such comments provided by such Party on the proposed disclosure. To the Parties’ common understanding, in case that either Party is obliged to publish
the Agreement as “material agreement” in accordance with the U.S. stock exchange regulations (“SEC Filing”), the Agreement shall be redacted by the filing Party as far as legally possible, and the filing Party shall
cooperate with the other Party reasonably in advance to such SEC Filing to enable the other Party to review and comment on the scope of such redaction. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE IX  

REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION 
 9.1 Representations and Warranties of the Parties. BI and MacroGenics each represent, warrant and covenant to the other that: 

(a) as of the Effective Date it has the authority and right to enter into and perform this Agreement and grant the rights embodied
herein, and it is not aware of any legal impediment that could inhibit its ability to perform its obligations under this Agreement; 
 (b) as of the Effective Date its execution, delivery and performance of this Agreement does not conflict with, or constitute a breach of, any order, judgment, agreement or instrument to which it is a
party or is otherwise bound; 
 (c) it shall comply in all material respects with all Laws applicable to its actions under this
Agreement; 
 (d) as of the Effective Date no consent of any Third Party is required for such Party to grant the licenses and
rights granted to the other Party under this Agreement or to perform its obligations hereunder; 
 (e) all of such Party’s
personnel and employees, and Third Parties, including agents and consultants, hired by such Party and involved in each Program or in the research, Development, manufacture or Commercialization of Collaboration DARTs or Products are or will be under
a written obligation to assign to such Party any rights they may have in any Invention first invented, discovered, made, conceived and/or reduced to practice in the conduct of activities pursuant to the Programs or in the research, Development,
manufacture or Commercialization of any Collaboration DARTs or Product; and 
 (f) it will not, after the Effective Date, enter
into any written or oral contractual obligation with a Third Party that would be inconsistent with the obligations that arise on its part out of this Agreement or that would deprive the other Party of the benefits of or rights granted under this
Agreement. 
 9.2 Representations and Warranties of MacroGenics. MacroGenics represents, warrants and covenants to BI, as
of the Effective Date, that: 
 (a) MacroGenics will use commercially reasonable efforts in the Prosecution and Maintenance of
the MacroGenics Patent Rights. 
 (b) MacroGenics has not previously assigned, transferred, conveyed or otherwise encumbered
its right, title and interest in MacroGenics Intellectual Property in a manner inconsistent with the terms hereof; 
 (c)
MacroGenics’ execution, delivery and performance of this Agreement does not conflict with, or constitute a breach of, any term or condition of any agreement to which MacroGenics is a party; 

  
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treatment. An unredacted 
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 (d) except with respect to patent and patent applications licensed to MacroGenics,
MacroGenics is the legal and beneficial owner of the MacroGenics Patent Rights existing as of the Effective Date, free and clear of any liens, charges and encumbrances, and MacroGenics has valid and existing licenses to the MacroGenics Patent Rights
not owned by MacroGenics; 
 (e) except as previously disclosed in writing to BI, to MacroGenics’ knowledge, the
conception, development and reduction to practice of the MacroGenics Intellectual Property has not constituted or involved the misappropriation of trade secrets of any Third Party or the infringement of issued Patent Rights of any Third
Party;
 (f) except as previously disclosed in writing to BI, MacroGenics has not received any written notice of any
unauthorized use, infringement, misappropriation, or dilution by any person, including any current or former employee or consultant of MacroGenics, of any MacroGenics Intellectual Property; and 

(g) that there are no claims, judgments, settlements pending or, to the knowledge of MacroGenics, any threatened actions with respect,
to the extent licensed hereunder, to the MacroGenics Intellectual Property. 
 9.3 No Other Warranties. EXCEPT AS
OTHERWISE EXPRESSLY SET FORTH HEREIN, THE PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND PARTICULARLY THAT PRODUCT(S) WILL BE SUCCESSFULLY DEVELOPED HEREUNDER, AND IF PRODUCT(S) ARE DEVELOPED,
WITH RESPECT TO SUCH PRODUCT(S), THE PARTIES DISCLAIM ALL IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 
 9.4 Indemnification by BI. BI shall indemnify, hold harmless and defend MacroGenics, its Affiliates and all of their respective officers, directors, employees, agents, licensors and shareholders
(collectively, the “MacroGenics Indemnitees”) from and against any and all losses, damages, liabilities, judgments, fines, amounts paid in settlement, expenses and costs of defense (including reasonable attorneys’ fees and
witness fees) resulting from any demand, claim, action or proceeding brought or initiated by a Third Party (each a “Third Party Claim”) against any MacroGenics Indemnitees(s) arising out of (a) a Default by BI; (b) the
gross negligence or willful misconduct of BI or its Affiliates; or (c) the conduct of any Program or use of Collaboration DART or Product by, on behalf of or under authority of, BI (except with respect to the conduct of such activities by a
MacroGenics Indemnitee); provided that (i) the MacroGenics Indemnitees shall comply with the procedures set forth in Section 9.6; and (ii) such indemnity shall not apply to the extent such Third Party Claim is caused by the
negligence, willful misconduct or violation of Law by a MacroGenics Indemnitee. 
 9.5 Indemnification by MacroGenics.
MacroGenics shall indemnify, hold harmless and defend BI, its Affiliates and all of their respective officers, directors, employees, agents, licensors and shareholders (collectively, the “BI Indemnitees”) from and against any and
all losses, damages, liabilities, judgments, fines, amounts paid in settlement, expenses and costs of defense (including reasonable attorneys’ fees and witness fees) resulting from any Third Party

  
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treatment. An unredacted 
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Claim against any BI Indemnitees(s) arising out of (a) a Default by MacroGenics; (b) the gross negligence or willful misconduct of MacroGenics or its Affiliates; or (c) the conduct
of any Program or use of Collaboration DART or Product by, on behalf of or under authority of (except with respect to the conduct of such activities by a BI Indemnitee), MacroGenics, provided that (i) the BI Indemnitees shall comply with
the procedures set forth in Section 9.6; and (ii) such indemnity shall not apply to the extent such Third Party Claim is caused by the negligence, willful misconduct or violation of Law by a BI Indemnitee. 

9.6 Procedure. To be eligible for the MacroGenics Indemnitees to be indemnified hereunder, MacroGenics shall provide BI with
prompt notice of the Third Party Claim giving rise to the indemnification obligation under this ARTICLE IX and the exclusive ability to defend or settle any such claim; provided however that BI shall not enter into any settlement for
damages without MacroGenics’ prior written consent, such consent not to be unreasonably withheld, delayed or conditioned. MacroGenics shall have the right to participate, at its own expense and with counsel of its choice, in the defense of any
claim or suit that has been assumed by BI. To be eligible for the BI Indemnitees to be indemnified hereunder, BI shall provide MacroGenics with prompt notice of the Third Party Claim giving rise to the indemnification obligation under this ARTICLE
IX and the exclusive ability to defend or settle any such claim; provided however that MacroGenics shall not enter into any settlement for damages without BI’s prior written consent, such consent not to be unreasonably withheld,
delayed or conditioned. BI shall have the right to participate, at its own expense and with counsel of its choice, in the defense of any claim or suit that has been assumed by MacroGenics. 

9.7 Insurance. BI shall procure and maintain insurance or self-insurance, including product liability insurance, adequate to cover
its obligations hereunder and which are consistent with normal business practices of prudent companies similarly situated, at all times during which any Product is being developed, clinically tested in human subjects or commercially distributed or
sold by or on behalf of BI, its Affiliates or Sublicensees. MacroGenics shall procure and maintain insurance or self-insurance, including product liability insurance, adequate to cover its obligations hereunder and which are consistent with normal
business practices of prudent companies similarly situated, at all times during which any Product is being developed, clinically tested in human subjects or commercially distributed or sold by or on behalf of MacroGenics, its Affiliates or
Sublicensees. It is understood that such insurance or self-insurance shall not be construed to create a limit of a Party’s liability with respect to its indemnification obligations under this ARTICLE IX. Each Party shall provide the other Party
with written evidence of such insurance or self-insurance upon request. Each Party shall provide the other Party with written notice at least thirty (30) days prior to the cancellation, non renewal or material change in such insurance or
self-insurance which could adversely affect rights hereunder. 
 9.8 No Consequential or Punitive Damages. EXCEPT WITH
RESPECT TO (a) THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER THIS AGREEMENT WITH RESPECT TO THIRD PARTY CLAIMS; AND (b) A BREACH OF THE CONFIDENTIALITY OBLIGATIONS OF ARTICLE VIII, AND (c) A PARTY’S WILLFULL
MISCONDUCT, NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, ARISING FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES.

  
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treatment. An unredacted 
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 ARTICLE X 
 TERM AND TERMINATION 
 10.1 Term and Expiration. This
Agreement shall be effective as of the Effective Date and unless terminated earlier pursuant to Section 10.2, this Agreement shall continue in effect *** hereunder (the “Term”). 

10.2 Termination. 
 (a) Termination of Agreement for Cause. This Agreement may be terminated at any time during the Term upon written notice by either Party (the “Non-Defaulting Party”) upon Default
of the other Party (the “Defaulting Party”), which Default remains uncured *** written notice requesting cure of such Default. The Non-Defaulting Party shall provide written notice to the Defaulting Party, which notice shall
identify the Default, the intent to so terminate and the actions or conduct that it considers would be an acceptable cure of such Default. If the Defaulting Party disputes the Default under this Section 10.2(a), then the issue of whether the
Non-Defaulting Party may properly terminate this Agreement on expiration of the applicable cure period shall be resolved in accordance with ARTICLE XI. If as a result of such dispute resolution process, it is determined that the alleged Defaulting
Party committed a Default and the Defaulting Party does not cure such Default within *** after the date of such dispute resolution award (the “Additional Cure Period”), then such termination shall be effective as of the
expiration of the Additional Cure Period. If the Parties dispute whether such Default was so cured, either Party alone may request the same tribunal to determine whether it was so cured, and the Parties shall cooperate to allow such determination to
be made within *** after such request by either Party. Such dispute resolution proceeding does not suspend any obligations of either Party hereunder, and each Party shall use reasonable efforts to mitigate any damage. If as a result of such
dispute resolution proceeding it is determined that the alleged Defaulting Party did not commit such Default (or such Default was cured in accordance with this Section 10.2(a), the Additional Cure Period), then no termination shall be
effective, and this Agreement shall continue in full force and effect. Notwithstanding the foregoing, in case that MacroGenics was previously subject to a Change of Control, MacroGenics shall not have the right to terminate this Agreement for ***.

 (b) Termination With Respect to a Program. BI may elect to terminate the research, Development and/or
Commercialization of any Program by providing MacroGenics with *** prior written notice and this Agreement shall terminate following such *** period solely with respect to the Program that is the subject of such termination notice; provided
that during the ***. 
 (c) Termination if BI Challenges MacroGenics Patent Rights or Collaboration DART Patent Rights.
If BI or any of its Affiliates or Sublicensees, directly or indirectly, (i) initiates or requests an interference or opposition proceeding with respect to any MacroGenics Patent Right or Collaboration DART Patent Right, (ii) makes, files
or maintains any 

  
 50 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
claim, demand, lawsuit, or cause of action to challenge the validity or enforceability of any MacroGenics Patent Right or Collaboration DART Patent Right in a tribunal or forum, or
(iii) opposes any extension of, or the grant of a supplementary protection certificate with respect to, any MacroGenics Patent Right or Collaboration DART Patent Right, MacroGenics shall have the right to terminate this Agreement upon ***
written notice to BI. Any such termination shall only become effective if BI or its Affiliate or Sublicensee, as applicable, has not withdrawn such action before the end of the above notice period. 

(d) Termination for Convenience. *** BI shall have the right to terminate this Agreement at any time in its sole
discretion by giving MacroGenics *** prior written notice; provided that *** invoiced prior to the effective date of such termination. 
 (e) Termination if MacroGenics Challenges Collaboration DART Patent Rights. If MacroGenics or any of its Affiliates or Sublicensees, directly or indirectly, (i) initiates or requests an
interference or opposition proceeding with respect to any Collaboration DART Patent Right, (ii) makes, files or maintains any claim, demand, lawsuit, or cause of action to challenge the validity or enforceability of any Collaboration DART
Patent Right in a tribunal or forum, or (iii) opposes any extension of, or the grant of a supplementary protection certificate with respect to, any Collaboration DART Patent Right, BI shall have the right to terminate this Agreement upon
*** written notice to MacroGenics. Any such termination shall only become effective if MacroGenics or its Affiliate or Sublicensee, as applicable, has not withdrawn such action before the end of the above notice period. 

10.3 Effect of Termination on Licenses. 
 (a) If BI terminates this Agreement under Section 10.2(a) or Section 10.2(e): (i) BI’s license pursuant to this Agreement, shall continue; provided however that BI shall
continue to fulfill BI’s payment and/or royalty obligations as specified herein; and provided further BI may ***, as determined (A) in a final decision of the arbitrators in accordance with Section 11.2 or a court of
competent jurisdiction, which decision is not appealable or has not been appealed within the time allowed for appeal, or (B) by the Parties in a settlement agreement; and (ii) MacroGenics shall, within *** after the effective date
of such termination, return or cause to be returned to BI, copies of all BI Confidential Information and BI Intellectual Property and all Materials provided by BI, in each case with respect to any Terminated Product, except that MacroGenics may
retain one copy of the BI Confidential Information solely for legal archive purposes, (iii) BI shall be released of its ongoing disclosure and information exchange obligations under ARTICLES III and IV, (iv) the JSC and its subcommittees
shall not meet anymore, except to address matters relating to Patent Rights; and (v) MacroGencics’ co-promotion option stipulated under Section 4.5 and the co-development option stipulated under Section 4.4 shall terminate.

 (b) Upon termination of this Agreement in whole or with respect to a Terminated Product by BI under Section 10.2(b) or
10.2(d) or by MacroGenics under Section 10.2(a) or Section 10.2(c), then: 
 (i) BI’s licenses
pursuant to Section 5.1 shall terminate as of the effective date of termination with respect to all Terminated Products; 

  
 51 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (ii) the Collaboration Targets to which the Terminated Products are
Directed shall be deemed Terminated Targets; 
 (iii) BI shall, within *** after the effective date of
termination, return or cause to be returned to MacroGenics, copies of all MacroGenics Confidential Information and MacroGenics Intellectual Property and all Materials owned and provided by MacroGenics, in each case with respect to any Terminated
Product; except that BI may retain one copy of the MacroGenics Confidential Information solely for legal archive purposes; 
 (iv) MacroGenics shall, within *** after the effective date of termination, return or cause to be returned to BI, copies of all BI Confidential Information and BI Intellectual Property and all
Materials provided by BI, in each case with respect to any Terminated Product, except that (A) MacroGenics may retain one copy of the BI Confidential Information solely for legal archive purposes and (B) MacroGenics may retain such BI
Confidential Information, BI Intellectual Property and Materials solely to the extent necessary to research, Develop, make, have made, use, offer for sale, sell and import the Terminated Products in the Field in the Territory; 

(v) At MacroGenics’ request within *** after the effective date of termination, BI will either *** (the
choice of (A) or (B) being in BI’s sole discretion), and (C) at MacroGenics’ request BI will grant to MacroGenics a non-exclusive, worldwide, license to BI Intellectual Property, including the regulatory documentation
defined in Section 10.3(b)(ix) below, however excluding BI Biopharmaceutical Technology, solely to the extent that such licenses are necessary to research, Develop, make, have made, use, offer for sale, sell and import the Terminated Products
in the Field in the Territory. If MacroGenics has been *** pursuant to this Section 10.3(b)(v)(A) or (B), MacroGenics shall pay to BI (i) *** Notwithstanding the foregoing, if MacroGenics has been *** pursuant to
Section 10.3(b)(v)(C) only and has not been *** under Section 10.3(b)(v)(A) or (B), MacroGenics shall *** a Product-by-Product basis, in each case in accordance with the applicable terms of ARTICLE VI (such as duration, adjustments,
reports, audits and the like); 
 (vi) For a period of ***, BI and its Affiliates shall be entitled to
finish work in progress and to sell any Collaboration DART(s) and/or Products remaining in inventory in accordance with the terms of this Agreement. Such sales shall be subject to the royalty provisions of this Agreement. Thereafter, MacroGenics
shall have the option, exercisable within *** following such *** period, to obtain BI’s inventory of Terminated Products at a *** for such inventory of Terminated Product to be ***. MacroGenics may exercise such option by written
notice to BI during such *** period; 
 (vii) In the event a Terminated Product has commenced ***
before the effective date of termination, the Parties will negotiate in good faith an *** to MacroGenics of BI’s and its Affiliates’ *** for the Terminated Products in the Field in the Territory) relating solely to the Terminated Product
and owned by BI; 

  
 52 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (viii) BI shall, in exchange for commercially reasonable terms to be
negotiated in good faith between the Parties, use Commercially Reasonable Efforts to supply MacroGenics with comparable quantities of the Terminated Products in the dosage strength, formulation and presentation as were being Developed or
Commercialized as of the effective date of termination until the earlier of ***  
 (ix) BI shall
promptly *** and *** all *** and related rights *** and any other *** and other materials relating to *** of any Terminated Product, or *** or sell a Terminated Product); provided, that BI may retain a single copy of such items for its
records; 
 (x) BI shall, and hereby *** to MacroGenics *** Collaboration DART included in *** that were
invented solely by employees, agents or consultants of MacroGenics or its Affiliates. *** and 
 (xi) In the
event that BI grants to MacroGenics an *** with respect to Collaboration DART Patent Rights, MacroGenics shall be solely responsible for the Prosecution and Maintenance of such Collaboration DART Patent Rights and with respect to any such
Collaboration DART Patent Rights licensed to MacroGenics, MacroGenics *** 
 10.4 Change of Control. In the event
of a Change of Control, provided all payments provided for herein are paid to MacroGenics’s successor, BI shall have the following rights: 
 (a) BI shall be released of its ongoing disclosure and information exchange obligations under Sections 3.9(b) and 4.2; provided that BI on *** and 

(b) The JSC shall not meet anymore, except to address matters relating to Patent Rights. 

(c)***  

10.5 Effect of Expiration or Termination; Survival. 
 (a) Expiration or termination of the Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. Any expiration or termination of this Agreement shall be
without prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to expiration or termination, including the obligation to pay royalties for Product(s) sold prior to such expiration or termination.
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. 

  
 53 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) The provisions of Articles 1, 8, 11 and 12 and Sections 3.6(c), 7.1, 9.3,
9.4, 9.5, 9.6, 9.7, 9.8, 10.3, 10.4 and 10.5 shall survive the expiration or termination of the Agreement. 
 ARTICLE XI

 DISPUTE RESOLUTION 
 11.1 Seeking Consensus. If any dispute arises out of, in connection with or related to this Agreement, including disputes over the interpretation, performance, enforcement or breach of this
Agreement, including any dispute that is not within the jurisdiction of the JSC (a “Dispute”), however excluding any dispute resolved in accordance with Section 2.5(c), then upon the written request of either Party, the matter
shall be referred to the ***, who shall meet in a good faith effort to resolve the dispute within ***. If the Parties’ *** cannot agree on a resolution of the Dispute within such ***period, then it shall be resolved
pursuant to the remaining provisions of this ARTICLE XI. 
 11.2 Arbitration. The Parties shall negotiate in good faith
and use reasonable efforts to settle any Dispute in accordance with Section 11.1. If the Parties do not fully settle a Dispute, and a Party wishes to pursue the matter, each such Dispute that is not an “Excluded Claim” shall be
finally resolved by binding arbitration in accordance with the *** and judgment on the arbitration award may be entered in any court having jurisdiction thereof. 
 (a) The arbitration shall be conducted by ***. Within *** after initiation of arbitration, each Party shall select *** The place of arbitration shall be ***, and all
proceedings and communications shall be in English. 
 (b) Either Party may apply to the arbitrators for interim injunctive
relief until the arbitration award is rendered or the controversy is otherwise resolved. 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 that Party pending the arbitration award. The scope of the authority of the arbitrators shall be limited to the strict application of law. The arbitrators shall have no authority to award punitive or any other
type of damages not measured by a Party’s compensatory damages. Each Party participating in an arbitration pursuant to the terms of this Agreement shall, subject to the award of the arbitrators, pay an equal share of the arbitrator’s fees.
The arbitrators shall have the power to award recovery of all costs (including reasonable attorney’s fees, administrative fees, arbitrator’s fees and court costs) to the prevailing party. 

(c) Neither Party shall be required to give general discovery of documents, but may be required to produce documents or testimony which
are relevant or considered relevant by the arbitrators to the dispute. It is the objective and intent of the Parties that any arbitration proceeding be conducted in such a manner that a decision will be rendered by the arbitrators ***, and
the Parties and the panel selected in the manner provided above will adopt rules and procedures intended to implement such objective and intent. 

  
 54 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (d) Except to the extent necessary to confirm or vacate an award or as may be required by
law (including applicable securities laws or the rules of any stock exchange on which a Party’s securities may then be listed), neither a Party nor an arbitrator may disclose the existence, content, or results of arbitration without the prior
written consent of both Parties. In no event shall 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. 
 (e) The Parties agree that any payments made pursuant to this Agreement pending resolution of the dispute shall
be refunded or credited if an arbitrator or court determines that such payments are not due. 
 As used in this Section, the term
“Excluded Claim” shall mean a Dispute that concerns (a) the validity or infringement of a patent, trademark or copyright; or (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory.

 11.3 Jury Waiver. Each of the Parties hereto irrevocably und unconditionally waives trial by jury in any legal action
or proceeding relating to this Agreement. 
 ARTICLE XII  

MISCELLANEOUS 
 12.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the ***, other than any principle of conflict or choice of laws that would cause the
application of the laws of any other jurisdiction. 
 12.2 Waiver. Waiver by a Party of a breach hereunder by the other
Party shall not be construed as a waiver of any succeeding breach of the same or any other provision. No delay or omission by a Party to exercise or avail itself of any right, power or privilege that it has or may have hereunder shall operate as a
waiver of any right, power or privilege by such Party. No waiver shall be effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the Party granting
the waiver. 
 12.3 Notices. All notices, instructions and other communications hereunder or in connection herewith shall
be in writing, shall be sent to the address specified in this Section 12.3 and shall be: (a) delivered personally; (b) sent by registered or certified mail, return receipt requested, postage prepaid; or (c) sent via a reputable
nationwide overnight courier service. Any such notice, instruction or communication shall be deemed to have been delivered upon receipt if delivered by hand or when transmitted with electronic confirmation of receipt, if transmitted by facsimile (if
such transmission is on a Business Day; otherwise, on the next Business Day following such transmission), provided that an original document is sent via an internationally recognized overnight delivery service (receipt requested), three
(3) Business Days after it is sent by registered or certified mail, return receipt requested, postage prepaid, one (1) Business Day after it is sent via a reputable nationwide overnight courier service. 

  
 55 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

			
	 If to
 MacroGenics,

to:
	  	 MacroGenics, Inc.
 1500 East
Gude Drive
 Rockville, MD 20850

Attention: Chief Executive Officer
 Facsimile:
***

		
	with a copy to:	  	 Wilmer Cutler Pickering Hale and Dorr LLP
 399 Park Avenue
 New York, NY 10022
 Attention: *** 
 Facsimile: ***

		
	If to BI, to:	  	 Boehringer Ingelheim International GmbH
 Binger Strasse 173
 55216 Ingelheim am Rhein

Germany
 Attention: ***

Facsimile: ***

		
	with a copy to:	  	 Boehringer Ingelheim International GmbH
 Binger Strasse 173
 55216 Ingelheim am RheinGermany

Attn: ***
 Facsimile: ***

 or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in
accordance herewith. 
 12.4 Entire Agreement; Amendment. This Agreement (including any Exhibits and Schedules) contains
the complete understanding of the Parties with respect to the Development, manufacture and commercialization of Products and supersedes all prior understandings and writings relating to such subject matter. In particular, it supersedes and replaces
the Prior Confidentiality Agreement and any and all term sheets relating to the transactions contemplated by this Agreement and exchanged between the Parties prior to the Effective Date. No amendment, change or addition to this Agreement will be
effective or binding on either Party unless reduced to writing and duly executed on behalf of both Parties. 
 12.5
Headings. Headings in this Agreement are for convenience of reference only and shall not be considered in construing this Agreement. 
 12.6 Severability. If any provision or portion thereof in this Agreement is for any reason held to be invalid, illegal or unenforceable, the same shall not affect any other portion of this
Agreement, as it is the intent of the Parties that this Agreement shall be construed in such fashion as to maintain its existence, validity and enforceability to the greatest extent possible. In any such event, this Agreement shall be construed as
if such clause of portion thereof had never 

  
 56 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
been contained in this Agreement, and there shall be deemed substituted therefor such provision as will most nearly carry out the intent of the Parties as expressed in this Agreement to the
fullest extent permitted by applicable law. 
 12.7 Assignment. Neither this Agreement nor any right or obligation
hereunder may be assigned or otherwise transferred by any Party without the consent of the other Party; provided, however, that any Party may, without such consent, assign this Agreement, in whole or in part: (a) to any of its
respective Affiliates; provided that the assigning Party shall remain jointly and severally liable with such Affiliate in respect of all obligations so assigned, or (b) to any successor in interest by way of merger, acquisition or sale
of all or substantially all of its assets to which this Agreement relates (an “M&A Event”); provided that such successor agrees in writing to be bound by the terms of this Agreement as if it were the assigning party. Any
assignment not in accordance with this Section 12.7 shall be void. Each Party agrees that, notwithstanding any provisions of this Agreement to the contrary, if this Agreement is assigned by a Party in connection with an M&A Event, such
assignment shall not provide the non-assigning Party with rights or access to any intellectual property or technology of the acquirer of the assigning Party. If BI assigns its rights and obligations hereunder to an Affiliate or Third Party ***

 12.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. Signatures provided by facsimile transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail shall be deemed to be original signatures.

 12.9 Force Majeure. No Party shall be liable for failure of or delay in performing obligations set forth in this
Agreement, and no Party shall be deemed in breach of its obligations, if such failure or delay is due to a natural disaster, explosion, fire, flood, tornadoes, thunderstorms, earthquake, war, terrorism, riots, embargo, losses or shortages of power,
labor stoppage, substance or material shortages, events caused by reason of laws of any Governmental Authority, events caused by acts or omissions of a Third Party, or any other cause reasonably beyond the control of such Party, if the Party
affected gives prompt notice of any such cause to the other Party. The Party giving such notice shall thereupon be excused from such of its obligations hereunder as it is thereby disabled from performing for so long as it is so disabled,
provided, however, that such affected Party commences and continues to use its Commercially Reasonable Efforts to cure such cause. 
 12.10 Third-Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party other than a MacroGenics Indemnitee under Section 9.4 or
BI Indemnitee under Section 9.5. No such Third Party shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise) against
either Party. 
 12.11 Relationship of the Parties. Each Party shall bear its own costs incurred in the performance of
its obligations hereunder without charge or expense to the other, except as expressly provided in this Agreement. Neither Party shall have any responsibility for the hiring, termination or compensation of the other Party’s employees or for any
employee compensation 

  
 57 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
or benefits of the other Party’s employees. No employee or representative of a Party shall have any authority to bind or obligate the other Party for any sum or in any manner whatsoever, or
to create or impose any contractual or other liability on the other Party without said other Party’s approval. For all purposes, and notwithstanding any other provision of this Agreement to the contrary, the legal relationship under this
Agreement of each Party to the other Party shall be that of independent contractor. Nothing in this Agreement shall be construed to establish a relationship of partners or joint venturers between the Parties. 

12.12 Performance by Affiliates. To the extent that this Agreement imposes obligations on Affiliates of a Party, such Party agrees
to cause its Affiliates to perform such obligations and shall guarantee performance of this Agreement by its Affiliates. If any disagreement arises out of the performance of this Agreement by an Affiliate of a Party, or the alleged failure of an
Affiliate or the alleged failure of an Affiliate to comply with the conditions and obligations of this Agreement, the Party seeking to resolve such dispute shall have the right do so directly with the other Party, without any obligation to first
pursue an action against, or recovery from, the Affiliate which is alleged to have caused a breach of this Agreement. 
 12.13
Construction. Each Party acknowledges that it has been advised by counsel during the course of negotiation of this Agreement, and, therefore, that this Agreement shall be interpreted without regard to any presumption or rule requiring
construction against the Party causing this Agreement to be drafted. Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit shall be deemed to be a reference to any Article, Section, subsection,
paragraph, clause, Schedule or Exhibit, of or to, as the case may be, this Agreement. Except where the context otherwise requires, (a) wherever used, the use of any gender will be applicable to all genders; (b) the word “or” is
used in the inclusive sense (and/or); (c) any definition of or reference to any agreement, instrument or other document refers to such agreement, instrument other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein or therein); (d) any reference to any Laws refers to such Laws as from time to time enacted, repealed or amended; (e) the words
“herein”, “hereof” and hereunder”, and words of similar import, refer to this Agreement in its entirety and not to any particular provision hereof; and (f) the words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “but not limited to”, “without limitation” or words of similar import. 
 12.14 Create Act. It is the intention of the Parties that this Agreement is a “joint research agreement” as that phrase is defined in 35 U.S.C. § 103(c)(3).

[Remainder of page intentionally left blank] 

  
 58 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective
Date. 
  

									
	BOEHRINGER INGELHEIM INTERNATIONAL GMBH	 		 	MACROGENICS, INC
					
	ppa.	 		 		 		 	
					
	BY:	 	 /s/ Dr. Klaus Wilgenbus
	 		 	BY:	 	 /s/ Scott Koenig

					
	NAME:	 	 Dr. Klaus Wilgenbus
	 		 	NAME:	 	Scott Koenig
					
	TITLE:	 	AUTHORIZED SIGNATORY	 		 	TITLE:	 	Chief Executive Officer

  

			
		
	BY:	 	 /s/ Dorothee Schwall-Rudolph

		
	NAME:	 	 Dorothee Schwall-Rudolph

		
	TITLE:	 	AUTHORIZED SIGNATORY

  
 59 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Schedule 1.5 
 BI EXCLUSIVE TARGETS 
 1.***  *** 

2.***        *** 
 *** 

  
 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

 Schedule 1.28 

DART PLATFORM 
 DART
Platform comprises bispecific or monospecific proteins having at least two covalently linked polypeptide chains, A and B, where chain A comprises the *** and chain B comprises the ***. 

DART Platform proteins include but are not limited to: 
  

																	
		 		  	***	 		  		  		  		  		  	

 *** 

  
 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

 Schedule 1.47 

INITIAL COLLABORATION TARGETS 
  

																																													
	1.***	  		 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 		 	***	 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	2.***	  		 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	3.***	  		 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  	    ***	 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	4.***	  		 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 		 	***	 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	5.***	  		 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 		 	***	 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	6.***	  		 		 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 		 	***	 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
	   ***	  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		 	***	 		 		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	

  
 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

 Schedule 1.50 

DRAFT INVOICE 
  

							
	Invoice To:	 		 	Invoice No.	 	#
	<<Company name>>	 		 	Invoice Date:	 	<<date>>
	<<address>>	 		 		 	

  

	
	 Attention: <<name, title>>

	 BI Contract No.:

	
	Invoice From:
	<<Company name>>
	 <<address>>

  

							
	 Description
	 	 	  	Amount	 
	 Pursuant to <<contract and section reference>>
	 		  			
		 		  			
		 		  			
	 <<payment type>>
	 		  	$	0.00	  
		 	 (i)
	  			
		 		  	  
	  
	 
		 	(ii)                 Total	  	$	            0.00	  
	 Payment Due
	 		  			
		 		  	  
	  
	 
		 	 (iii)
	  			

 Wire Instructions: 
  

					
	 Bank Name:
	  	  
	  	
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	 Routing/transit:
	  	  
	  	
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 Payment Due:
                    <<contract payment terms>> 

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Schedule 1.58 
 MACROGENICS PATENT RIGHTS 
  

									
	 Country
	  	 Application Serial
 No.
	  	 Date Filed
	  	 Publication No.
	  	 Status

	 	 	 	 	 
	
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Schedule 1.77 

RTP CRITERIA TEMPLATE 
  

							
	 	 	 	 
	
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	 ***

	 	 	 	 
	
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

							
	 	 	 	 
	
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 Key: 
  

																					
		 	
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 2 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Schedule 1.81 

SOPD CANDIDATE CRITERIA TEMPLATE 
  

							
	 	 	 	 
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 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

							
	 	 	 	 
	***	  	 	  	 	  	 
	 
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 Key: 
  

																							
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 2 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Schedule 4.5(b)I 

CO-PROMOTION TERMS AND CONDITIONS 
 *** 

  
 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

 Schedule 4.5(b)II 

DISPUTE RESOLUTION PROCEDURES 
 *** 

  
 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

 Schedule 8.4 

PRESS RELEASE 
  

					
	 

	  		  	 

 Boehringer Ingelheim and MacroGenics Announce Global Alliance to Discover, 

Develop and Commercialize DARTTM-Based Antibody Therapeutics 
 INGELHEIM, Germany and ROCKVILLE, MD, USA,             , 2010 — Boehringer Ingelheim and MacroGenics today jointly announced that
they have entered into a global alliance to discover, develop and commercialize antibody-based therapeutics which may span multiple therapeutic areas, including immunology, oncology, respiratory, cardiometabolic and infectious diseases. These
developmental drug candidates will be based on MacroGenics’ Dual-Affinity Re-Targeting (DARTTM) platform and will be directed against up to ten combinations of molecular targets. 
 “This alliance represents the largest external commitment to our DART platform to date and the latest validation of our ongoing efforts” said Dr. Scott Koenig, MacroGenics’ President
and Chief Executive Officer. “We are very pleased to be collaborating with the global pharmaceutical research-driven company Boehringer Ingelheim toward the goal of developing next-generation, antibody-based therapeutics.” 

“Combining MacroGenics’ innovative DART-based antibody platform with our experience and capabilities in drug discovery and development has the
potential to generate breakthrough medicines that will help patients with a range of diseases which cannot be adequately treated at present,” said Prof Wolfgang Rettig, Senior Vice President Corporate Research of Boehringer Ingelheim.

 Both companies will share responsibility for discovery and certain preclinical activities. In addition, Boehringer Ingelheim will have sole
responsibility for all subsequent preclinical, clinical, regulatory, commercial and manufacturing activities for any DART-based product resulting from the collaboration. 
 During the first three years of the collaboration, MacroGenics expects to receive payments of about $60 million, which includes an upfront cash payment, annual maintenance fees, R&D funding, and
near-term research-based milestones. Boehringer Ingelheim also expects to make a future equity investment in MacroGenics. In addition, MacroGenics may be eligible to receive development, regulatory and commercial milestone payments that can reach up
to $210 million for each of the ten DART programs in case of full commercial success of multiple DART 

  
 *** =
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. An unredacted 
 version of this
exhibit has been filed separately with the Commission. 

 
products. MacroGenics may also receive tiered royalties on net product sales. MacroGenics has the option to co-promote certain DART products in the United States. Further financial details were
not disclosed. 
 DART Background 
 The DART platform is a bispecific antibody technology that enables the generation of highly stable antibody-based therapeutic molecules that can simultaneously target two different antigens. DART
therapeutics can accommodate virtually any variable region sequence in a “plug-and-play” fashion and have very favorable manufacturing properties. DART proteins are available in both bacterial and mammalian expression systems. DARTs have
also been engineered with an Fc domain, which confers them with additional properties, such as Fc receptor binding and extended half-life. 

About MacroGenics 
 MacroGenics is a
private, venture-backed biotechnology company that focuses on the discovery, development and delivery to patients of novel biologics for autoimmune disorders, cancer and infectious diseases. Since its founding in 2000, the company has built a
fully-integrated set of capabilities in antibody-based product development. The company has generated a proprietary pipeline of innovative product candidates by leveraging its three core technology platforms. These proprietary platforms include:
(1) cancer stem-like cells; (2) DART technology, which allows the company to incorporate multiple specificities within a single molecule; and (3) Fc optimization, which enhances antibody-dependent effector functions. The
company’s lead program, teplizumab, is an anti-CD3 antibody. Teplizumab is being investigated in Phase 3 trials for the treatment of autoimmune diseases in collaboration with Eli Lilly and Company. For more information about MacroGenics, please
visit www.macrogenics.com. 
 About Boehringer Ingelheim 
 The Boehringer Ingelheim group is one of the world’s 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, it operates globally with 142 affiliates in 50 countries and more than
41,500 employees. Since it was founded in 1885, the family-owned company has been committed to researching, developing, manufacturing and marketing novel products of high therapeutic value for human and veterinary medicine. 

In 2009, Boehringer Ingelheim posted net sales of 12.7 billion euro while spending 21% of net sales in its largest business segment Prescription
Medicines on research and development. For more information about Boehringer Ingelheim, please visit www.boehringer-ingelheim.com. 

  
 2 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Statements made in this news release that are not historical facts are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “intends,” and similar expressions are intended to identify forward-looking statements. Actual results may differ
materially from those projected in any forward-looking statement. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated, such as MacroGenics’ ability to raise
additional capital, and risks related to MacroGenics’ and Boehringer Ingelheim’s ability to initiate, and enroll patients in, planned clinical trials. You should not place undue reliance on any forward-looking statements. Neither
MacroGenics nor Boehringer Ingelheim assume any obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by law. 

Contacts: 
  

			
	MacroGenics:	 	Boehringer Ingelheim GmbH:
	Scott Koenig, M.D., Ph.D., President and CEO	 	Director Corporate Communications
	or Jim Karrels, Vice President, CFO	 	Julia Meyer-Kleinmann
	+1-301-251-5172	 	+49/6132/77 82 71
	info@macrogenics.com	 	press@boehringer-ingelheim.com

 ### 

  
 3 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission.EX-10.16

 Exhibit 10.16 
 EXECUTION COPY 
 Confidential Materials omitted and filed separately
with the Securities and Exchange Commission. 
 Triple asterisks denote omissions. 

LICENSE AGREEMENT 
 BY AND BETWEEN 
 MACROGENICS, INC. 

AND 

GILEAD SCIENCES, INC. 
  

 Table of Contents 

 

							
	 	 	 	  	Page	 
			
	 ARTICLE 1
	 	DEFINITIONS	  	 	1	  
			
	 ARTICLE 2
	 	GOVERNANCE	  	 	21	  
			
	 ARTICLE 3
	 	RESEARCH PROGRAMS	  	 	23	  
			
	 ARTICLE 4
	 	GRANT OF RIGHTS; EXCLUSIVITY	  	 	29	  
			
	 ARTICLE 5
	 	DEVELOPMENT	  	 	34	  
			
	 ARTICLE 6
	 	REGULATORY MATTERS	  	 	39	  
			
	 ARTICLE 7
	 	COMMERCIALIZATION	  	 	41	  
			
	 ARTICLE 8
	 	PAYMENTS	  	 	44	  
			
	 ARTICLE 9
	 	OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS	  	 	51	  
			
	 ARTICLE 10
	 	CONFIDENTIALITY	  	 	60	  
			
	 ARTICLE 11
	 	REPRESENTATIONS AND WARRANTIES	  	 	64	  
			
	 ARTICLE 12
	 	INDEMNIFICATION AND INSURANCE	  	 	67	  
			
	 ARTICLE 13
	 	TERM AND TERMINATION	  	 	70	  
			
	 ARTICLE 14
	 	STANDSTILL	  	 	74	  
			
	 ARTICLE 15
	 	MISCELLANEOUS	  	 	76	  
			
	Exhibits:	 		  			
			
	Exhibit A	 	Access Territory as of the Effective Date	  			
	Exhibit B	 	DART Platform	  			
	Exhibit C	 	MacroGenics Patents	  			
	Exhibit D	 	Content of Pre-Clinical Data Package for *** Research Program	  			
	Exhibit E	 	Research Plan for the *** Research Program	  			
	Exhibit F	 	Press Release	  			

 Schedules: 
 Schedule 11.2.3  

  
 i 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 LICENSE AGREEMENT 

This License Agreement (this “Agreement”) is entered into and made effective as of the 3rd day of January, 2013 (the “Effective Date”), by and
between MacroGenics, Inc., a corporation organized and existing under the laws of the State of Delaware, having a principal office located at 9640 Medical Center Drive, Rockville, MD 20850, USA (“MacroGenics”), and Gilead Sciences,
Inc., a company organized and existing under the laws of the State of Delaware, having a principal office located at 333 Lakeside Drive, Foster City, CA 94404 (“Gilead”). MacroGenics and Gilead are each referred to herein by name or
as a “Party” or, collectively, as “Parties.” 
 RECITALS 

WHEREAS, Gilead possesses expertise in the Research, Development, Manufacturing and Commercialization (each as defined below) of
pharmaceutical products; 
 WHEREAS, MacroGenics controls certain intellectual property related to DARTs (as defined
below) generally, as well as certain DARTs targeting *** (as defined below) and certain DARTs targeting *** (as defined below);  
 WHEREAS, Gilead is interested in receiving exclusive licenses under which it may further Research, Develop, Manufacture and Commercialize DARTs targeting ***selected by Gilead, in each case in the
Gilead Territory (as defined below), and, to the extent provided herein, in the MacroGenics Territory (as defined below), and MacroGenics is willing to grant Gilead such licenses on the terms and conditions set forth in this Agreement; and

 WHEREAS the Parties desire to set forth herein the terms and conditions of exclusive licenses to enable Gilead to Research,
Develop, Manufacture and Commercialize the above mentioned DARTs. 
 NOW, THEREFORE, in consideration of the premises and mutual
covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 ARTICLE 1 
 DEFINITIONS 

As used in this Agreement, the following terms will have the meanings set forth in this ARTICLE 1 unless context dictates otherwise:

 1.1 “Access Territory” means, with respect to a Licensed Product (other than a *** Licensed Product),
any and all countries and territories where Gilead (itself or through its Affiliates) has publicly announced a policy to generally sell or otherwise make available such Licensed Product and one or more other Gilead products at a significantly
discounted price to patients in such countries or territories. The list of countries and territories included in the Access Territory as of the Effective Date is set forth in Exhibit A, which list shall be ***. 

  
 1 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.2 “Accounting Standards” means generally accepted accounting principles
as practiced in the United States. 
 1.3 “Active Research Program” means an active program to develop products
that bind a Target, in which MacroGenics has generated or is actively engaged in generating antibodies directed against such Target. 
 1.4 “Affiliate” means, as to a Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with said
first Person, regardless of whether such Affiliate is an Affiliate on the Effective Date or becomes an Affiliate after the Effective Date. A Person shall be deemed to “control” another Person if it (a) owns, directly or indirectly,
beneficially or legally, more than fifty percent (50%) of the outstanding voting securities or capital stock (or such lesser percentage which is the maximum allowed to be owned by a Person in a particular jurisdiction) of such other Person, or
has other comparable ownership interest with respect to any Person other than a corporation; or (b) has the power, whether pursuant to contract, ownership of securities or otherwise, to direct the management and policies of the Person.

 1.5 “Affordable Basis” means, with respect to a Licensed Product (other than a *** Licensed Product)
in the Access Territory, selling or otherwise making such Licensed Product available to patients at a cost no more than the sum of (a) *** plus (b) an additional amount not to exceed all costs and expenses of Gilead or its
Affiliates’ Commercialization activities with respect to such Licensed Product in the Access Territory. 
 1.6
“Agreement Term” means the period commencing on the Effective Date and ending on the expiration or earlier termination of this Agreement in its entirety. 
 1.7 “Annual Net Sales” means, for any Licensed Product in any Calendar Year, aggregate Net Sales of such Licensed Product in such Calendar Year (or, in the first year of the Royalty Term,
the portion of such Calendar Year during which the Royalty Term is in effect). 
 1.8 “BLA” means a Biologics
License Application and any amendments or supplements thereto filed with the FDA pursuant to 21 C.F.R. Part 601 or any other application that is required for the purpose of marketing and selling a biological product and is filed with a Regulatory
Authority outside the United States, including with respect to the EU a Product License Application, Marketing Authorization Application and/or manufacturing and importation license. 

1.9 “Business Day” means a day on which banking institutions in Washington, D.C. and San Francisco, CA are open for
business, excluding any Saturday or Sunday. 
 1.10 “Calendar Quarter” means a period of three
(3) consecutive months ending on the last day of March, June, September, or December, respectively. 
 1.11
“Calendar Year” means a period of time commencing on January 1 and ending on the following December 31. 

  
 2 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.12 “***” means the Target *** comprising the ***
identified by Entrez Gene ***, respectively (including any subtypes, alleles, and splice variants). 
 1.13
“***” means the Target referred to as *** (including any subtypes, alleles, and splice variants). 
 1.14 “*** Licensed Program” means the Licensed Program directed to the *** and *** Targets. 
 1.15 “*** Licensed Territory” means the entire world. 

1.16 “*** Research Program” means the Research Program directed to the *** *** Targets. 

1.17 “Change of Control” means (a) a transaction or series of related transactions that results in the sale or
other disposition of all or substantially all of MacroGenics’ assets; or (b) a merger or consolidation in which the shareholders of MacroGenics immediately prior to the consummation of such merger or consolidation do not, immediately after
consummation of such merger or consolidation, own stock or other securities of the surviving corporation that possess a majority of the voting power of all of the surviving corporation’s outstanding stock and other securities and the power to
elect a majority of the members of the surviving corporation’s board of directors; or (c) a transaction or series of related transactions (which may include without limitation a tender offer for MacroGenics’ stock or the issuance,
sale or exchange of stock of MacroGenics), excluding any public offering of MacroGenics’ equity securities pursuant to a registration statement under the Securities Act of 1933, as amended, if the shareholders of MacroGenics immediately prior
to the initial such transaction do not, immediately after consummation of such transaction or any of such related transactions, own stock or other securities of MacroGenics that possess a majority of the voting power of all of the MacroGenics’
outstanding stock and other securities and the power to elect a majority of the members of MacroGenics’ board of directors. 
 1.18 “Clearance Date” means, for each of the *** Licensed Program, the *** Licensed Program and the *** Licensed Program, (a) if Gilead notifies MacroGenics
pursuant to Section 3.2.2(c) that Gilead has determined in good faith that no HSR Filing is required with respect to such Licensed Program, the date on which Gilead delivers the Research Program Initiation Notice for such Licensed Program; and
(b) if Gilead notifies MacroGenics pursuant to Section 3.2.2(c) that Gilead has determined in good faith that an HSR Filing is required with respect to such Licensed Program, the date on which the Parties have actual knowledge that all
applicable waiting periods under the HSR Act with respect to the exclusive license grants contemplated under this Agreement relating to such Licensed Program (after giving effect to Gilead’s delivery of the Research Program Initiation Notice
for such Licensed Program) have expired or have been terminated. 
 1.19 “Clinical Trial(s)” means individually
and collectively a Phase 1 Clinical Trial, Phase 2 Clinical Trial, a Phase 3 Clinical Trial, a Phase 4 Study and a Post Approval Study. 

  
 3 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.20 “Commercialization” or “Commercialize” means any
activities directed to obtaining pricing and/or reimbursement approvals, marketing, promoting, distributing, importing, offering to sell, and/or selling a product, including promotional activities conducted at scientific conferences or similar
events. 
 1.21 “Commercially Reasonable Efforts” means, with respect to a Party, such level of efforts
required to carry out an obligation in a sustained manner consistent with the efforts normally used ***, for a similar activity with respect to the Research, Development and Commercialization of products (a) that are at a similar stage
in their Research, Development, Commercialization or product life as the relevant Program DART or Licensed Product; (b) that have commercial and market potential similar to the relevant Program DART or Licensed Product, taking into account
issues of intellectual property scope, subject matter and coverage, safety and efficacy, product profile, competitiveness with respect to Third Party products in the marketplace, and profitability (including pricing and reimbursement status achieved
or likely to be achieved); and (c) solely owned by them or to which they have exclusive rights (but excluding from consideration any financial obligations owed to a Third Party with respect to such rights). 

1.22 “Combination Product” means a Licensed Product that (a) includes a Program DART as an active pharmaceutical
ingredient, together with one or more other active ingredients, and (b) is sold either as a fixed dose or with separate doses in a single package. 
 1.23 “Competing Product” means any therapeutic or prophylactic product that comprises or incorporates, as an active pharmaceutical ingredient alone or in combination with one or more
other active pharmaceutical ingredients, a bispecific molecule that binds both Target members of any Program Target. Upon a Change of Control of MacroGenics, a Competing Product means any therapeutic or prophylactic product that comprises or
incorporates, as an active pharmaceutical ingredient alone or in combination with one or more other active pharmaceutical ingredients, any DART that binds both Target members of any Program Target. 

1.24 “Competitive Infringement” means any infringement or misappropriation that involves the Development, Manufacture,
use or Commercialization of a product or product candidate that binds to the same Program Target as a Program DART or Licensed Product. 
 1.25 “Complete” or “Completing” means, for a Clinical Trial, the date upon which all patients have completed protocol-defined drug administration and study database lock
has occurred. 
 1.26 “Compulsory Licensee” means, with respect to a Licensed Product in a country or
territory, a Third Party to whom a governmental agency within such country or territory grants the right to sell or offer for sale such Licensed Product in such country or territory under any patent rights owned or controlled by Gilead or its
Affiliates, without direct or indirect authorization from Gilead or its Affiliates, ***. 
 1.27
“Control,” “Controls,” “Controlled” or “Controlling” means, with respect to any item of Know-How, Patent, Regulatory Documentation or other intellectual property right, the
possession (whether by ownership or license, other than pursuant to this Agreement) of the 

  
 4 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
ability of a Party to grant access to, or a license or sublicense under, such item or right as provided for herein without violating the terms of any agreement or other arrangement with any Third
Party existing at the time such Party would be required hereunder to grant the other Party such access or license or sublicense; provided that any Know-How, Patent, Regulatory Documentation or other intellectual property right that is
licensed or acquired by a Party after the Effective Date that would otherwise be considered to be under the Control of such Party shall not be deemed to be under the Control of such Party if (a) the application of such definition in the context
of any licenses or sublicenses granted to the other Party under this Agreement would require the granting Party to make any additional payments or royalties to a Third Party in connection with such license or sublicense grants, unless the other
Party agrees to pay the additional payments or royalties to the Third Party and (b) with respect to Know-How, Patents, Regulatory Documentation or any other intellectual property right licensed to or obtained by MacroGenics pursuant to an
agreement with a Third Party, unless and until the agreement pursuant to which such rights are obtained becomes a MacroGenics Third Party Agreement pursuant to Section 4.6. 

1.28 “Cover”, “Covering” or “Covered” means, with respect to a product, technology,
process or method, that, in the absence of ownership of or a license granted under a Valid Claim, the composition, manufacture, use, offer for sale, sale or importation of such product or the practice of such technology, process or method would
infringe such Valid Claim (or, in the case of a Valid Claim that has not yet issued, would infringe such Valid Claim if it were to issue). 
 1.29 “CPI” means the average annual Consumer Price Index for the United States as reported by the United States Bureau of Labor Statistics. 

1.30 “DART” means a dual affinity bispecific re-targeting molecule as further described in Exhibit B. 

1.31 “Develop” or “Development” means drug development activities relating to the development of
compounds, products, or processes, and submission of information to a Regulatory Authority for the purpose of obtaining Regulatory Approval of a product. Development includes non-clinical activities, pharmacology studies, toxicology studies,
formulation, chemical analysis, bioanalytical analysis, material performance studies (such as measurements of stability, physical form, dissolution, or visual or spectroscopic analysis, and the like), pharmacokinetic studies, clinical studies,
biomarker and companion diagnostic discovery and development, regulatory affairs activities, and all other activities relating to seeking, obtaining or maintaining any Regulatory Approvals from the FDA or any other applicable Regulatory Authority.

 1.32 “Diagnostic” means (a) with respect to Gilead, any diagnostic for a Target included in a Program
Target that is used in combination with a Licensed Product if (i) such diagnostic is Covered by a Valid Claim of any MacroGenics Patent or Joint Patent in the country in the Gilead Territory in which it is Manufactured or Commercialized or
(ii) the Manufacture or Commercialization of such diagnostic by or on behalf of Gilead in such country would, but for the licenses granted to Gilead under Section 4.1, infringe or misappropriate MacroGenics’ rights in the MacroGenics
Know-How or Know-How included in the Joint IP, and (b) with respect to 

  
 5 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
MacroGenics, any diagnostic for a Target included in a Program Target that is used in combination with a Licensed Product if (i) such diagnostic is Covered by a Valid Claim of any Gilead
Collaboration Patent or Joint Patent in the country in the MacroGenics Territory in which it is Manufactured or Commercialized or (ii) the Manufacture or Commercialization of such diagnostic by or on behalf of MacroGenics in such country would,
but for the licenses granted to MacroGenics under Section 4.2, infringe or misappropriate Gilead’s rights in the Gilead Collaboration Know How or Know-How included in the Joint IP. 

1.33 “Dollars” or “$” means the legal tender of the United States. 

1.34 “EMA” means the European Medicines Agency, or any successor entity thereto. 

1.35 “Emerging Market Countries” means ***. 

1.36 “Evaluation Period” means (a) for the *** Licensed Program, the period beginning on the Effective Date
and ending on the later of (i) receipt of the Preclinical Data Package for the *** Licensed Program or (ii) *** from the Effective Date, and (b) for each of the *** Licensed Program, the *** Licensed
Program and the *** Licensed Program, the period beginning on the Clearance Date for such Licensed Program and ending on the later of (i) receipt of the Preclinical Data Package for such Licensed Program or (ii) *** from the
Effective Date, in each case ((a) and (b)) as such period may be extended pursuant to Section 3.3.2(b). 
 1.37
“EU” means the European Union, as its membership may be expanded from time to time, and any successor thereto. Any country that is a member country of the European Union (or any successor thereto) as of the Effective Date or at any
time during the term of this Agreement shall be deemed included in the EU for all purposes hereunder even if such country subsequently ceases to be a member country thereof. For clarity, the member countries of the European Union as of the
Effective Date are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia,
Spain, Sweden, and United Kingdom. 
 1.38 “Executive Officers” means, for each Party, a senior executive
***. 
 1.39 “FDA” means the U.S. Food and Drug Administration, or any successor entity thereto.

 1.40 “FD&C Act” means the United States Federal Food, Drug, and Cosmetic Act, as amended. 

1.41 “Field” means any use in humans, including diagnosis, prophylaxis and treatment of human disease. 

1.42 “First Commercial Sale” means the first sale of a Licensed Product by Gilead, its Affiliates or its Sublicensees
for use or consumption of such Licensed Product in a country in the Gilead Territory where Marketing Approval of such Licensed Product has been obtained or such sale is otherwise permitted by the Governmental Authority of such country. Sale of a
Licensed 

  
 6 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Product by Gilead to an Affiliate of Gilead or a Sublicensee of Gilead shall not constitute a First Commercial Sale unless such Affiliate or such Sublicensee is the end user of a Licensed
Product. In no event shall any sales for premarketing, testing or sampling be deemed a First Commercial Sale. 
 1.43
“Fourth DART Targets” means a combination of two Targets that are nominated by Gilead pursuant to the second sentence of Section 3.2.1(a) and both accepted by MacroGenics pursuant to Section 3.2.1(b). 

1.44 “Fourth DART Licensed Program” means the Licensed Program directed to the Fourth DART Targets. 

1.45 “Fourth DART Licensed Territory” means the entire world. 

1.46 “Fourth DART Research Program” means the Research Program directed to the Fourth DART Targets. 

1.47 “FTE” means ***hours of work per Calendar Year devoted to or in support of the Research, Development or
Manufacture of Program DARTs and Licensed Products in accordance with a Research Program, that is carried out by one or more qualified scientific or technical employees or contract personnel of MacroGenics or its Affiliates, as such hours are
measured in accordance with the relevant Party’s normal time allocation practices. 
 1.48 “FTE Cost”
means, for any period, the FTE Rate multiplied by the number of FTEs in such period. 
 1.49 “FTE Rate” means a
rate of *** per FTE per Calendar Year (pro-rated for the period beginning on the Effective Date and ending at the end of the first Calendar Year) for personnel engaged in Research, Development and Manufacturing activities. The FTE Rate is
“fully burdened” and covers employee salaries and benefits and the cost of facilities, equipment and other materials and services including ordinary laboratory and manufacturing consumables. The FTE Rate will be adjusted annually to
reflect any changes in the CPI as of December 31 of the then most recently ended calendar year over the level of the CPI on December 31, 2012 (i.e., the first such increase or decrease would occur on January 1, 2014).

 1.50 “Generic Licensee” means a Third Party licensee of Gilead or any of its Affiliates (or a Third Party
sublicensee of any Third Party licensee of Gilead or any of its Affiliates) that (a) has been granted a sublicense by Gilead or such Affiliate (or such other Third Party licensee) which (except as consented to by MacroGenics pursuant to
Section 4.3) excludes rights to MacroGenics Know-How and (b) is authorized (i) ***. “Generic Licensee” shall include *** under any license granted to *** by Gilead or any of its Affiliates under any
intellectual property related to the manufacture or sale of Licensed Products or the active pharmaceutical ingredient therein. 

1.51 “Generic Product” means, with respect to any Licensed Product, a version of such Licensed Product (or a product
containing the same or highly similar active pharmaceutical ingredient as such Licensed Product in a comparable dosage form and formulation as such 

  
 7 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Licensed Product (e.g., adult-to-adult and pediatric-to-pediatric)) that has received, under applicable Law in any country in the Access Territory, any required Regulatory Approval analogous to
being licensed as a biosimilar or interchangeable biological product by the FDA pursuant to Section 351(k) of the Public Health Service Act (42 U.S.C. § 262(k)), as may be amended, or any subsequent or superseding law, statute or
regulations. 
 1.52 “Gilead Collaboration IP” means the Gilead Collaboration Know-How and the Gilead
Collaboration Patents. 
 1.53 “Gilead Collaboration Know-How” means all Gilead Information and Inventions
except to the extent disclosed by published Gilead Collaboration Patents. 
 1.54 “Gilead Collaboration
Patent(s)” means Patents Controlled by Gilead and its Affiliates during the Agreement Term Covering Gilead Information and Inventions. Gilead Collaboration Patents excludes Joint Patents. 

1.55 “Gilead Indemnitees” means Gilead, its Affiliates and its Sublicensees and the directors, officers and employees of
Gilead, its Affiliates and its Sublicensees. 
 1.56 “Gilead Information and Inventions” means Know-How
Controlled by Gilead or its Affiliates during the Agreement Term that (a) (i) was created by or on behalf of Gilead or its Affiliates in the course of conducting activities pursuant to this Agreement (including pursuant to
Section 3.2.3), including any improvement, modification, enhancement or novel use of a Program DART or Licensed Product, or a Manufacturing process or formulation of a Program DART or Licensed Product or any improvement, modification or
enhancement of a Manufacturing process or formulation of a Program DART or Licensed Product or (ii) is used by Gilead or its Affiliates in the Research, Development, Manufacturing or Commercialization of a Program DART or Licensed Product and
is disclosed to MacroGenics or its Affiliates by or on behalf of Gilead or its Affiliates pursuant to this Agreement; and (b) is necessary or useful to Research, Develop, Manufacture or Commercialize any Program DART or Licensed Product in the
Field. Gilead Information and Inventions excludes Gilead’s interest in the Joint IP and any Know-How that relates solely to any active pharmaceutical ingredient in a Combination Product other than a Program DART. 

1.57 “Gilead Territory” means (a) for the *** Licensed Program, the *** Licensed Territory,
(b) *** (c) for the *** Licensed Program, the *** Licensed Territory, and (d) for the *** Licensed Program, the *** Licensed Territory. 

1.58 “Good Clinical Practices” or “GCP” means the then-current standards, practices and procedures
(a) 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; (b) set forth
in Directive 2001/20/EC of the European Parliament and of the Council of 4 April 2001 and Commission Directive 2005//28/EC of 8 April 2005; (c) ICH Guideline for Good Clinical Practice E6; (d) analogous Laws of an applicable
Regulatory Authority; and (e) all additional Regulatory Authority documents or regulations that replace, amend, modify, supplant or complement any of the foregoing. 

  
 8 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.59 “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, as such regulations may be amended from time to time, and analogous Laws of an applicable Regulatory Authority. 

1.60 “Good Manufacturing Practices” or “GMP” means then-current standards for the manufacture of
pharmaceutical products, pursuant to (a) the FD&C Act (21 U.S.C. 321 et seq.); (b) relevant United States regulations in Title 21 of the United States Code of Federal Regulations (including Parts 11, 210, and 211); (c) European
Community Directives 2003/94 and 91/356/EC; (d) the European Community Guide to Good Manufacturing Practice for Medicinal Intermediate Products; (e) ICH Q7A Good Manufacturing Practice Guidance for Active Pharmaceutical Ingredients;
(f) analogous Laws of an applicable Regulatory Authority at the time of Manufacture; and (g) all additional Regulatory Authority documents or regulations that replace, amend, modify, supplant or complement any of the foregoing. 

1.61 “Governmental Authority” means any United States federal, state or local or any non-United States government, or
political subdivision thereof, or any multinational organization or authority or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any
court or tribunal (or any department, bureau or division thereof), or any governmental arbitrator or governmental arbitral body. 
 1.62 “Government or Public Official” means any officer or employee or anyone acting in an official capacity on behalf of: a government or any department or agency thereof; a public
international organization (such as the United Nations, the International Monetary Fund, the International Red Cross, and the World Health Organization), or any department, agency or institution thereof; or a government-owned or controlled company,
institution, or other entity, including a government-owned hospital or university. 
 1.63 “HSR Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 1.64 “ICH” means the International
Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use. 
 1.65
“IND” means an Investigational New Drug Application filed with FDA or a similar application filed with an applicable Regulatory Authority outside of the United States such as a clinical trial application (CTA). 

1.66 “Indication” means a discrete clinically recognized form of a disease or any precursor condition thereof. By
way of example, the following diseases shall be considered separate Indications: ***. 
 1.67 “Insolvency
Event” means with respect to a Party, (a) the entry of an order for relief under the Bankruptcy Code or any other bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect by such
Party; (b) the 

  
 9 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
commencement of an involuntary proceeding under the Bankruptcy Code or any other bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect
against such Party, if not dismissed, bonded or stayed within ninety (90) days after such commencement; (c) the making by such Party 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 such Party. 
 1.68 “Joint IP” means all inventions and discoveries (and Patents claiming patentable inventions therein) first made or discovered jointly by one or more employees, consultants or agents
of MacroGenics or its Affiliates, together with one or more employees, consultants or agents of Gilead or its Affiliates, in the course of the Research, Development, Manufacture or Commercialization of Program DARTs and/or Licensed Products.

 1.69 “Joint Patents” means Patents comprising claims Covering patentable inventions included in the Joint
IP. 
 1.70 “Know-How” means all tangible and intangible (a) information, techniques, technology,
practices, trade secrets, inventions (whether patentable or not), methods, knowledge, know-how, skill, experience, data, results (including pharmacological, toxicological and non-clinical and clinical test data and results, and Research or
Development data, reports and batch records), analytical and quality control data, analytical methods (including applicable reference standards), full batch documentation, packaging records, release, stability, storage and shelf-life data,
Manufacturing process information, results and descriptions, and software and algorithms and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material. 

1.71 “Law” or “Laws” means all laws, statutes, rules, regulations, orders, judgments, or ordinances
having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision. 
 1.72 “Licensed Product” means any therapeutic or prophylactic product that comprises or incorporates a Program DART as an active pharmaceutical ingredient alone or in combination with one
or more other active agents. For the avoidance of doubt, Licensed Product excludes any diagnostic products (including Diagnostics). 
 1.73 “Licensed Program” means Research, Development, Manufacturing and/or Commercialization activities conducted by or on behalf of Gilead and/or MacroGenics with respect to Program DARTs
and/or Licensed Products for a particular Program Target. 
 1.74 “License Grant Date” means (a) with
respect to the *** Licensed Program, the Effective Date and (b) with respect to the *** Licensed Program, the *** Licensed Program and the *** Licensed Program, the Clearance Date for the *** Licensed Program,
the *** Licensed Program or the *** Licensed Program, as applicable. 
 1.75 “License Term”
means, with respect to a Licensed Program, each period commencing upon the License Grant Date for such Licensed Program and ending on the date of expiration or termination of this Agreement with respect to such Licensed Program in accordance with
the provisions of ARTICLE 13. 

  
 10 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.76 “MacroGenics Information and Inventions” means Know-How that
(a) is Controlled by MacroGenics or its Affiliates on the Effective Date or thereafter during the Agreement Term; (b)(i) is or relates to a Program DART or Licensed Product or an improvement, modification, enhancement or novel use of a Program
DART or Licensed Product, or a Manufacturing process or formulation of a Program DART or Licensed Product or any improvement, modification or enhancement of a Manufacturing process or formulation of a Program DART or Licensed Product; or
(ii) is used by MacroGenics or its Affiliates in the Research, Development, Manufacturing or Commercialization of a Program DART or Licensed Product and is disclosed to Gilead or its Affiliates by or on behalf of MacroGenics or its Affiliates
pursuant to this Agreement; and (c) is necessary or useful to Research, Develop, Manufacture or Commercialize any Program DART or Licensed Product in the Field in the Gilead Territory. MacroGenics Information and Inventions excludes
MacroGenics’ interest in the Joint IP and any Know-How that relates solely to any active pharmaceutical ingredient in a Combination Product other than a Program DART. 
 1.77 “MacroGenics Indemnitees” means MacroGenics, its Affiliates and its Sublicensees and the directors, officers and employees of MacroGenics, its Affiliates and its Sublicensees.

 1.78 “MacroGenics IP” means the MacroGenics Know-How and the MacroGenics Patents. 

1.79 “MacroGenics Know-How” means all MacroGenics Information and Inventions except to the extent disclosed by published
MacroGenics Patents. 
 1.80 “MacroGenics Patents” means Patents Controlled by MacroGenics or its Affiliates on
the Effective Date or thereafter during the Agreement Term that Cover MacroGenics Information and Inventions. The MacroGenics Patents existing as of the Effective Date are set forth on Exhibit C. MacroGenics Patents excludes Joint Patents.

 1.81 “MacroGenics Territory” means, for the *** Licensed Program only, the entire world excluding the
*** Licensed Territory. 
 1.82 “MacroGenics Third Party Agreements” means any agreement (other than
this Agreement) (a) pursuant to which MacroGenics in-licenses or otherwise acquires the right to practice Patents or Know-How that relates to the Program DARTs or Licensed Products in the Field in the Gilead Territory and (b) that Gilead
accepts pursuant to Section 4.6. 
 1.83 “Manufacture” or “Manufacturing” means all
activities related to the manufacturing of a DART or product, including test method development and stability testing, formulation, process development, manufacturing scale-up, manufacturing for use in non-clinical and clinical studies,
manufacturing for commercial sale, packaging, release of product, quality assurance/quality control development, quality control testing (including in-process, release and stability testing) and release of product or any component or ingredient
thereof, and regulatory activities related to all of the foregoing. 

  
 11 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.84 “Marketing Approval” means, for any Licensed Product in any country,
all approvals (including pricing and reimbursement approvals), licenses, registrations or authorizations of any federal, state or local regulatory agency, department, bureau or other governmental entity, necessary for the sale of such Licensed
Product in such country. If no such approvals, licenses, registrations or authorization are necessary for the sale of a Licensed Product in a particular country, then “Marketing Approval” for such Licensed Product in such country
shall be deemed to have occurred on First Commercial Sale of such Licensed Product in such country. 
 1.85 “Mixed
Patent” means any Patent that ***. 
 1.86 *** 

1.87 “Net Receipts” means all amounts actually received by Gilead or its Affiliates from any Generic Licensee or
Compulsory Licensee in consideration of the sale of a Licensed Product less any withholding tax or other taxes as may be required under Law and actually paid from such payment due to Gilead; provided, however, that if such Licensed Product is sold
as a Combination Product, Net Receipts with respect to the Combination Product shall be calculated in a manner consistent with the last paragraph of Section 1.88. 
 1.88 “Net Sales” means the gross amounts billed or invoiced by Gilead, its Affiliates or its Sublicensees to Third Parties that are not Sublicensees for the sale or other commercial
disposition of Licensed Products, less the following deductions, determined in each case in accordance with the Accounting Standards, and only to the extent attributable to Licensed Products: 

(a) trade, quantity and cash discounts allowed and taken; 
 (b) refunds, chargebacks and any other allowances given and taken which effectively reduce the gross amounts billed or invoiced; 
 (c) product returns, credits and allowances and bad debt (provided that if any such bad debt is subsequently collected, such collected amounts shall be included in Net Sales in the period in which they
are subsequently collected); 
 (d) rebates, reimbursements, fees, taxes or similar payments to (i) wholesalers and other
distributors, pharmacies and other retailers, buying groups (including group purchasing organizations), health care insurance carriers, pharmacy benefit management companies, health maintenance organizations, governmental entities, or other
institutions or health care organizations to the extent actually paid or credited; or (ii) patients and other Third Parties arising in connection with any program that provides low income, uninsured or other patients the opportunity to obtain
discounted Licensed Products; 

  
 12 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (e) discounts mandated by, or granted to meet the requirements of, applicable state,
provincial or federal Law, including required chargebacks and retroactive price reductions; 
 (f) transportation, freight,
postage charges and other charges such as insurance, relating thereto, in each case included as a specific line item on a bill or an invoice to such Third Parties; and 
 (g) taxes, excises or other governmental charges upon or measured by the production, sale, transportation, delivery or use of goods, in each case included as a specific line item on a bill or an invoice
to such Third Parties. 
 Except as otherwise specified above, any and all set-offs against gross amounts billed or invoiced shall be calculated
in accordance with the Accounting Standards. Sales or other commercial dispositions of Licensed Products (1) between Gilead and its Affiliates and/or its Sublicensees (except where such Affiliates or Sublicensees are an end user of the Licensed
Product); (2) provided to Third Parties without charge, in connection with research and development, Clinical Trials, compassionate use, humanitarian and charitable donations, or indigent programs or for use, in reasonable and customary
quantities, as samples; and (3) provided by Gilead, its Affiliates and/or Sublicensees to government agencies, not-for-profit non-governmental organizations, physicians, pharmacies, other entities, or directly to patients, in each case in the
Access Territory on an Affordable Basis, shall in each case, be excluded from the computation of Net Sales, and no payments will be payable on such sales or such other commercial dispositions. For clarity, Net Sales shall exclude Net Receipts and
amounts invoiced for Licensed Products by any Generic Licensee or Compulsory Licensee. Notwithstanding anything herein to the contrary, if there are material sales of Licensed Products by Gilead, its Affiliates or Sublicensees to unaffiliated Third
Parties at a price in excess of the Affordable Basis in a country or territory in the Access Territory, the Parties shall determine a mechanism to include the amounts invoiced for such sales within Net Sales hereunder. 

If a Licensed Product is sold or otherwise commercially disposed of for consideration other than cash or in a transaction that is not at arm’s
length between the buyer and the seller, then the gross amount to be included in the calculation of Net Sales shall be the amount that would have been invoiced had the transaction been conducted at arm’s length and for cash. Such amount that
would have been invoiced shall be determined, wherever possible, by reference to the average selling price of the relevant Licensed Product in arm’s length transactions in the relevant country. 

Notwithstanding the foregoing, to the extent a Licensed Product is sold as a Combination Product, Net Sales with respect to the Combination Product for a
particular country shall be calculated by multiplying the actual Net Sales of the Combination Product by the fraction A/(A+B), where A is the total weighted (by sales volume) average Net Sales price of the Licensed Product if sold by Gilead, its
Affiliates or Sublicensees separately in a country and B is the total weighted (by sales volume) average Net Sales price of the other active ingredients included in the Combination Product if sold separately in such country. If, on a
country-by-country basis, such other active ingredients in the Combination Product are not sold separately in 

  
 13 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
such country, but the Licensed Product component of the Combination Product is sold separately in such country, Net Sales for the purpose of determining royalties due hereunder for the
Combination Product will be calculated by multiplying the actual Net Sales of such Combination Product by the fraction A/C, where A is the total weighted (by sales volume) average Net Sales price of such Licensed Product component if sold
separately, and C is the total weighted (by sales volume) average Net Sales price of the Combination Product. If, on a country-by-country basis, such Licensed Product component is not sold separately in such country, Net Sales for the purposes of
determining royalties due hereunder for the Combination Product will be calculated by multiplying the actual Net Sales of such Combination Product by the fraction D/(D+E), where D is the worldwide average Net Sales price of the portion of the
Combination Product that contains the Licensed Product, and E is the worldwide average Net Sales price of the portion of the Combination Product containing the other active ingredients included in such Combination Product. 

1.89 “Other Claims” means Patent claims other than Platform Claims and Product Claims. 

1.90 “Other Patents” means any Gilead Collaboration Patents, MacroGenics Patents or Joint Patents that (in each case)
contain only Other Claims. 
 1.91 “Out-of-Pocket Costs” means, with respect to certain activities hereunder,
direct expenses actually paid by a Party or its Affiliates to Third Parties and specifically identifiable and incurred to conduct such activities for a Licensed Product, but excluding (with respect to MacroGenics’ Research activities) any costs
included in the FTE Rate. 
 1.92 “Patent” means (a) all patents and patent applications in any country or
supranational jurisdiction, and (b) any substitutions, divisionals, continuations, continuations-in-part, provisional applications, reissues, renewals, registrations, confirmations, re-examinations, extensions, supplementary protection
certificates and the like of any such patents or patent applications. 
 1.93 “Person” means any individual,
partnership, joint venture, limited liability company, corporation, firm, trust, association, unincorporated organization, governmental authority or agency, or any other entity not specifically listed herein. 

1.94 “Phase 1 Clinical Trial” means a human clinical trial that is intended to initially evaluate the safety and/or
pharmacological effect of a product or that would otherwise satisfy the requirements of 21 C.F.R. 312.21(a) or an equivalent clinical trial in a country other than the United States. 

1.95 “Phase 2 Clinical Trial” means a human clinical trial for which the primary endpoints include a determination of
dose ranges or an indication of efficacy of a product in patients being studied as described in 21 C.F.R. §312.21(b), or an equivalent clinical trial in a country other than the United States. 

  
 14 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.96 “Phase 3 Clinical Trial” means a human clinical trial that is
prospectively designed to demonstrate statistically whether a product is safe and effective for use in humans in the indication being investigated in a manner sufficient to obtain Regulatory Approval to market such product in patients having the
disease or condition being studied as described in 21 C.F.R. §312.21(c), or an equivalent clinical trial in a country other than the United States. 
 1.97 “Phase 4 Study” means (a) a human clinical trial for a Licensed Product for an Indication that is required by a Regulatory Authority as a condition of (but is not completed
before) obtaining the initial Regulatory Approval for such Licensed Product for such Indication and (b) any trial, test or study that is required or requested by a Regulatory Authority as a condition of maintaining the initial Regulatory
Approval for a Licensed Product for an Indication, excluding any Post Approval Study. 
 1.98 “PMDA” means the
Japanese Pharmaceuticals and Medical Devices Agency or any successor agency thereto. 
 1.99 “Platform Claims”
means Patent claims that Cover ***, but excluding any Product Claims. 
 1.100 “Platform IP” means
(a) Platform Claims and (b) Know-How that relates to the *** (y) relates specifically to ***). 

1.101 “Platform Patents” means, subject to Sections 9.3.1(c) and 9.3.2(c), any Gilead Collaboration Patents, MacroGenics
Patents or Joint Patents that (in each case) contain at least one Platform Claim but no Product Claims. 
 1.102 “Post
Approval Study” means any human clinical study or other test or study with respect to a Licensed Product for an Indication that is not required in order to obtain or maintain Regulatory Approval for such Licensed Product for such
Indication. For clarity, any human clinical study that is intended to expand the product labeling for such Licensed Product shall be deemed not to be a Post Approval Study. Subject to the foregoing, Post Approval Study may include epidemiological
studies, modeling and pharmacoeconomic studies, post-marketing surveillance studies, investigator or company sponsored or initiated studies and health economics studies. 
 1.103 “Preclinical Data Package” means (a) for the *** Licensed Program, a written report containing the information and data set forth in Exhibit D and (b) for
each of the *** Licensed Program, the *** Licensed Program and the *** Licensed Program, a written report containing the information and data to be agreed upon by the Parties in accordance with Section 3.2.2(d). 

1.104 “Product Claims” means Patent claims that Cover Know-How that (a) relates to aspects of the ***.

 1.105 “Product Patents” means, subject to Sections 9.3.1(c) and 9.3.2(c), any Gilead Collaboration Patents,
MacroGenics Patents or Joint Patents that (in each case) contain at least one Product Claim but no Platform Claims. 

  
 15 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.106 “Product Trademarks” means the Gilead Product Trademarks and
MacroGenics Product Trademarks. 
 1.107 “Program DART” means any DART that binds a Program Target. 

1.108 “Program Target” means any of the following Target pairs: (a) *** and ***; (b) ***
and ***; (c) the *** Targets; or (d) the *** Targets. 
 1.109 “Reasonable Research
Efforts” means, with respect to a Party, such level of efforts required to carry out an obligation in a sustained manner consistent with the efforts normally used by pharmaceutical or biopharmaceutical companies, as applicable, of
comparable size and resources to such Party, for a similar activity with respect to the Research of products (a) that are at a similar stage in their Research as the relevant Program DART or Licensed Product; (b) that have scientific
attributes similar to those of the relevant Program DART or Licensed Product; and (c) that are solely owned by them or to which they have exclusive rights (but excluding from consideration any financial obligations owed to a Third Party with
respect to such rights). 
 1.110 “Regulatory Approval” means all approvals, licenses or authorizations of any
applicable Regulatory Authority necessary for Development and/or Commercialization of a Program DART and/or a Licensed Product for a particular Indication in a country. 
 1.111 “Regulatory Authority” means the FDA in the United States or any health regulatory authority in another country that is a counterpart to the FDA and holds responsibility for
regulating development of and/or granting Regulatory Approval for a Program DART or Licensed Product in such country, including the EMA, and any successor(s) thereto. 
 1.112 “Regulatory-Based Exclusivity Period” means, with respect to a Licensed Product, that period of time during which Gilead or any of its Affiliates or Sublicensees has been granted
the exclusive legal right by a Regulatory Authority either to market and sell a Licensed Product in a country in the Gilead Territory or the exclusive right to use or reference clinical data in relation to a Licensed Product. 

1.113 “Regulatory Documentation” means, with respect to the Program DARTs or Licensed Products, all INDs, BLAs, and
other regulatory applications submitted to any Regulatory Authority, copies of Regulatory Approvals, regulatory materials, drug dossiers, master files (including Drug Master Files, as defined in 21 C.F.R. §314.420 and any non-United States
equivalents), and any other reports, records, regulatory correspondence, meeting minutes, telephone logs, and other materials relating to Regulatory Approval of the Program DARTs or Licensed Products (including any underlying safety and
effectiveness data whether or not submitted to any Regulatory Authority), or required to Develop, Manufacture or Commercialize Licensed Products including any information that relates to pharmacology, toxicology, chemistry, manufacturing and
controls data, batch records, safety and efficacy, and any safety database required to be maintained for Regulatory Authorities. 

  
 16 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.114 “Research” means the discovery, identification, research,
characterization, modification, derivatization and optimization of pharmaceutical compounds. 
 1.115 “Research
Plan” means a research plan developed by the Parties that sets forth the activities to be undertaken during the Research Term for a specific Research Program and the budget therefor, which research plan may be amended from time to time by
the Parties. 
 1.116 “Research Program” means Research activities conducted by or on behalf of MacroGenics and
Gilead during the applicable Research Term in accordance with a Research Plan with respect to Program DARTs for a particular Program Target. 
 1.117 “Research Term” means the period (a) commencing on (i) with respect to the *** Research Program, the Effective Date, and (ii) with respect to the ***
Research Program, the *** Research Program and the *** Research Program, the Clearance Date for the Licensed Program associated with such Research Program; and (b) ending, for any Research Program, on the earlier of
(i) delivery of the Preclinical Data Package; or (ii) the *** of the License Grant Date. 
 1.118
“Right of Reference or Use” means a “Right of Reference or Use” as that term is defined in 21 C.F.R. §314.3(b), and any non-United States equivalents. 

1.119 “***” means the Target referred to as *** (including any subtypes, alleles, and splice variants).

 1.120 “*** Licensed Product” means any Licensed Product from the *** Licensed Program.

 1.121 “*** Licensed Program” means the Licensed Program directed to the *** ***. 

1.122 “*** Licensed Territory” means the ***. 

1.123 “*** Program DART” means any Program DART from the *** Licensed Program. 

1.124 “*** Research Program” means the Research Program directed to the ***. 

1.125 “Significant Adverse Effect” means (a) for purposes of Section 5.4, the significant possibility, in the
reasonable belief of MacroGenics, that the conduct of the applicable Clinical Trial or other clinical study poses (i) a significantly higher risk of either an adverse effect on *** of the applicable *** Program DART or ***
Licensed Product, as compared to ***, for such *** Program DART or *** Licensed Product, or (ii) a significant risk of an adverse effect on the ability of MacroGenics or its Affiliates or Sublicensees to recruit patients
for active Clinical Trials conducted, or planned Clinical Trials (for which a protocol has been submitted to and not disapproved by Gilead pursuant to Section 5.5, as of the time of submission to MacroGenics pursuant to Section 5.4 of a
protocol for the applicable Clinical Trial or study proposed to be conducted by Gilead or its Affiliates or Sublicensees) to be conducted, by MacroGenics or its Affiliates or Sublicensees in the MacroGenics Territory with respect to such ***
Program DART or Licensed Product; and (b) for purposes of Section 5.5, the significant possibility, in the 

  
 17 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
reasonable belief of Gilead, that the conduct of the applicable Clinical Trial or other clinical study poses (i) a significantly higher risk of either an adverse effect ***
Licensed Product, as compared to ***, for such *** Program DART or *** Licensed Product, or (ii) a significant risk of an adverse effect on the ability of Gilead or its Affiliates or Sublicensees to *** ((A) with
respect to planned Clinical Trials to be conducted in the Gilead Territory, that are subject to a protocol that has received internal approval by Gilead, and (B) with respect to planned Clinical Trials to be conducted in the MacroGenics
Territory, for which a protocol has been submitted to and not disapproved by MacroGenics pursuant to Section 5.4, as of the time of submission to Gilead pursuant to Section 5.5 of a protocol for the applicable Clinical Trial or study
proposed to be conducted by MacroGenics or its Affiliates or Sublicensees) to be conducted, by Gilead or its Affiliates or Sublicensees in the Gilead Territory with respect to such *** Program DART or Licensed Product. 

1.126 “Sublicensee” means a Third Party to whom a Party, as permitted under this Agreement, grants a license or
sublicense, as the case may be, under the Joint IP, MacroGenics IP or Gilead Collaboration IP to Research, Develop, Manufacture, Commercialize or otherwise use Program DARTs, Diagnostics and/or Licensed Products in the Field or otherwise grants
rights to distribute, promote or sell Diagnostics or Licensed Products in the Field; provided, however, that the term “Sublicensee” shall not include (a) any wholesale distributor, Generic Licensee or Compulsory Licensee or
(b) any other Third Party who purchases a Diagnostic or Licensed Product and does not have a license or sublicense, as the case may be, under the Joint IP, MacroGenics IP or the Gilead Collaboration IP to Develop or Manufacture such Diagnostic
or Licensed Product, other than a limited license or sublicense, as the case may be, as required to enable such Third Party (i) to perform final packaging for such Diagnostic or Licensed Product for local distribution, (ii) to conduct a
confirmatory Clinical Trial of such Licensed Product to support a filing for Regulatory Approval of such Licensed Product in such Third Party’s distribution territory or (iii) to prepare and make a filing for a Regulatory Approval of such
Licensed Product in such Third Party’s distribution territory. 
 1.127 “Target” means (a) an antigen
composed of a polypeptide, a complex of more than one polypeptide, or a post-translational modification of one or more polypeptides (e.g., glycosylation, phosphorylation, etc.); or (b) a gene encoding an antigen and the products encoded by such
gene, including any homologues, variants, alternatively spliced variants, mutants, deletions or fragments or partial sequences of such antigen. 
 1.128 “Terminated Program” means with respect to any termination of this Agreement pursuant to ARTICLE 13, the Licensed Program(s) (including the associated Research Program(s)) subject
to such termination. 
 1.129 “Territory” means (a) with respect to Gilead, the Gilead Territory; and
(b) with respect to MacroGenics, the MacroGenics Territory. 
 1.130 “Third Party” means any Person other
than MacroGenics or Gilead that is not an Affiliate of MacroGenics or of Gilead. 

  
 18 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 1.131 “*** Targets” means a combination of two Targets that are
nominated by Gilead pursuant to the first sentence of Section 3.2.1(a) and both accepted by MacroGenics pursuant to Section 3.2.1(b). 
 1.132 “*** Licensed Program” means the Licensed Program directed to the Third DART Targets. 
 1.133 “*** Licensed Territory” means the entire world. 

1.134 “*** Research Program” means the Research Program directed to the Third DART Targets. 

1.135 “United States” or “U.S.” means the United States of America and all of its territories and
possessions. 
 1.136 “Valid Claim” means (a) a claim of an issued patent that has not expired or been
abandoned, or been revoked, held invalid or unenforceable by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment from which no appeal was taken within the allowable time
period) or (b) a claim within a patent application which application has not been pending for more than *** from the date of its first filing and which claim has not been revoked, cancelled, withdrawn, held invalid or abandoned.

 1.137 Additional Definitions. Each of the following definitions is set forth in the section of this Agreement
indicated below: 
  

					
	 Definition:
	  	Section:	 
	 13D Group
	  	 	14.1.3	  
	 Additional Extension
	  	 	3.3.2	(b) 
	 Alliance Manager
	  	 	2.1.1	  
	 Audited Party
	  	 	8.10	  
	 Auditing Party
	  	 	8.10	  
	 Bankruptcy Code
	  	 	4.8	  
	 Biosimilar Product
	  	 	8.5.4	(c) 
	 Breaching Party
	  	 	13.2	  
	 ***
	  	 	3.2.3	  
	 Co-Chairperson
	  	 	2.3.3	  
	 Commercializing Party
	  	 	7.1	  
	 Competitive Infringement
	  	 	9.4.2	(a) 
	 Confidential Information
	  	 	10.1	  
	 Court
	  	 	15.2	  
	 Disclosing Party
	  	 	10.1	  
	 Dispute
	  	 	15.1	  
	 Effective Date
	  	 	Preamble	  
	 Existing Confidentiality Agreement
	  	 	10.4	  

  
 19 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

					
	 Definition:
	  	Section:	 
	 FCPA
	  	 	7.7.2	  
	 ***
	  	 	3.2.3	  
	 ***
	  	 	3.2.1	(a) 
	 ***
	  	 	3.2.1	(a) 
	 Gilead
	  	 	Preamble	  
	 Gilead Objection
	  	 	5.5.1	(c) 
	 Gilead Product Trademarks
	  	 	7.6.1	  
	 GLP Toxicology Study
	  	 	3.3.2	(a) 
	 HSR Filing
	  	 	3.2.2	(c) 
	 Indemnified Party
	  	 	12.3	  
	 Indemnifying Party
	  	 	12.3	  
	 Initial Extension
	  	 	3.3.2	(b) 
	 Initial Research Plan
	  	 	3.2.3	  
	 Initiating Party
	  	 	9.4.3	  
	 IPO
	  	 	14.1	  
	 Joint Development Activity
	  	 	5.3	  
	 JRC
	  	 	2.3.1	  
	 License Fee
	  	 	8.1	  
	 Losses
	  	 	12.1	  
	 MacroGenics
	  	 	Preamble	  
	 MacroGenics Objection
	  	 	5.4.1	(c) 
	 MacroGenics Product Trademarks
	  	 	7.6.1	  
	 Non-Breaching Party
	  	 	13.2	  
	 Notifying Party
	  	 	6.4.2	(b) 
	 Party or Parties
	  	 	Preamble	  
	 Preclinical Milestone Payment
	  	 	8.2	  
	 Preclinical Milestone Payment Notice
	  	 	3.3.2	(a) 
	 Receiving Party
	  	 	10.1	  
	 Research Program Initiation Notice
	  	 	3.2.2	(b) 
	 *** Initial Research Plan
	  	 	3.2.3	  
	 Royalty Term
	  	 	8.5.2	  
	 SDEA Agreement
	  	 	6.4.1	  
	 Standstill Period
	  	 	14.1	  
	 Supplemental Data
	  	 	3.2.3	  
	 ***
	  	 	3.2.3	  
	 ***
	  	 	3.2.1	(a) 
	 ***
	  	 	3.2.1	(a) 
	 UKBA
	  	 	7.7.2	  

  
 20 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE 2 
 GOVERNANCE 
 2.1 Alliance Managers. 

2.1.1 As soon as practicable after the Effective Date, each of MacroGenics and Gilead shall assign one (1) of its employees to serve
as primary point of contact between the Parties with respect to matters under this Agreement (each an “Alliance Manager”). Either Party may change its Alliance Manager upon written notice to the other Party. The Alliance
Managers’ responsibilities shall be limited to: (a) coordinating the activities of the Parties under this Agreement, including facilitating communications between the Parties with respect to the Development, Manufacture and
Commercialization of Program DARTs and Licensed Products; (b) serving as an initial point of contact for discussion by the Parties of the Development, Manufacture, and Commercialization of Program DARTS and Licensed Products; (c) directing
and overseeing the JRC and any ad hoc committee established by the Parties on all significant issues that fall within the purview of such committees, including (i) subject to Section 3.2.6(c), reviewing and submitting to the Parties for
approval any amendments to a Research Plan, and (ii) for any meeting of the JRC, (x) establishing a reasonably detailed agenda, including identification of relevant supporting information and materials to be discussed, for such meeting,
subject to the right of any member of the JRC to add additional agenda items at any meeting, and (y) promptly drafting and finalizing minutes of such meeting, for review and approval by the members of the JRC at the following meeting;
(d) reviewing and discussing each Party’s plans and related activities with respect to *** Licensed Products in such Party’s Territory, including pre-launch and go-to-market strategies; and (e) attempting to resolve any
Disputes in accordance with Section 15.1. 
 2.1.2 After the License Grant Date for any Licensed Program, and for the
duration of the License Term for such Licensed Program, the Alliance Managers shall meet once per Calendar Quarter (or on such other schedule as may be determined by the Alliance Managers) to discuss any issues and concerns arising under the
Agreement. The Alliance Managers may attend such meetings in person, by telephone, or by videoconference; provided that the Alliance Managers shall meet in person at least twice per Calendar Year. 

2.2 Ad Hoc Committees. By mutual agreement, the Parties may establish and disband ad hoc committees having such responsibilities
as may be agreed by the Parties. Each such committee shall consist of the same number of representatives designated by each Party, which number shall be mutually agreed by the Parties. Each Party shall be free to change its representatives on any
such committee by written notice to the other Party or to send substitute representatives to any meeting of any such committee. Each Party’s representatives and any substitutes for such representatives on any such committee shall be bound by
the obligations of confidentiality set forth in ARTICLE 10. No such committee shall have the authority to bind the Parties hereunder. Except as otherwise agreed by the Parties, each such committee shall report to the Alliance Managers. 

  
 21 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 2.3 Joint Research Committee. 

2.3.1 Composition. Promptly after the Effective Date, the Parties shall establish a joint research committee (the
“JRC”). The JRC shall be comprised of three (3) named representatives of Gilead and three (3) named representatives of MacroGenics (or such other number as the Parties may agree). Each Party may replace one or more of its
representatives, in its sole discretion, effective upon written notice to the other Party of such change. These representatives shall have appropriate technical credentials, experience and knowledge, and ongoing familiarity with the Research
activities hereunder. Either Party may, from time to time, invite additional representatives or consultants to attend JRC meetings, subject to the written agreement of each such representative or consultant to comply with confidentiality obligations
substantially the same as those set forth in ARTICLE 10; provided, however, for avoidance of doubt, that such representatives or consultants shall not have any voting rights on the JRC. Each Party shall be responsible for all of its own expenses
incurred in connection with participating in any JRC meetings. 
 2.3.2 Function and Powers of the JRC. The JRC’s
responsibilities shall be limited to matters regarding each Research Program, in each case solely during the Research Term thereof, and shall consist of the following activities: (a) subject to Section 3.2.6(c), proposing any changes or
amendments to the Research Plan for the applicable Research Program, for approval by the Parties; (b) reviewing and monitoring progress for all activities performed under the applicable Research Program; and (c) informal resolution of
disagreements that may arise in the relation to the Parties’ activities under the applicable Research Program. 
 2.3.3
Co-Chairpersons. Each Party shall designate one of its members of the JRC as a co-chairperson (each, a “Co-Chairperson”) of such committee. The Co-Chairpersons, in consultation with the Alliance Managers, shall have the
following roles and responsibilities: (a) to call meetings, send notice of each such meeting and designate the time, date and place of each such meeting, (b) to convene or poll the members by other permitted means, and (c) to sign and
date the final minutes of any meeting of the JRC. 
 2.3.4 Committee Meetings. 

(a) Frequency. For so long as the Research Term for any Research Program remains in effect, the JRC shall hold at least one
(1) meeting per Calendar Quarter at such time(s) during such Calendar Quarter as the Co-Chairpersons may determine. 
 (b)
Quorum; Location. Meetings of the JRC shall be effective only if at least one (1) representative of each Party is present or participating. The JRC may meet either (i) in person at either Party’s facilities or at such locations
as the Parties may otherwise agree or (ii) by audio or video teleconference. 
 (c) Cooperation. Each Party shall
provide the JRC such information as required under the Research Plan for any Research Program, or as reasonably requested by the other Party and reasonably available, relating to the progress of the goals or performance of activities pursuant to any
Research Program. 

  
 22 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 2.3.5 Decisions. Actions to be taken by the JRC shall be taken only following a
***, with each Party having ***. Notwithstanding anything to the contrary in this Agreement, Gilead shall have *** on any matter involving ***; provided, however, that Gilead shall not exercise its *** in a manner
that would (a) conflict with any provisions of this Agreement; (b) require MacroGenics to perform activities (i) for which Gilead will not reimburse MacroGenics’ costs in accordance with Section 3.2.6; or (ii) which
require MacroGenics to use any Know-How, Patents or other technology not contemplated in an Initial Research Plan and that are not (x) developed internally by MacroGenics, (y) licensed by Gilead to MacroGenics pursuant to Section 4.2
or (z) in-licensed or otherwise acquired by MacroGenics pursuant to any MacroGenics Third Party Agreement; or (c) require MacroGenics to perform any act that it reasonably believes to be inconsistent with any Law or any approval, order,
policy or guidelines of a Regulatory Authority. Any matter on which the JRC fails to reach unanimous agreement for a period of ***, including any matter subject to ***, shall be referred to the Alliance Managers for attempted
resolution pursuant to Section 15.1. 
 2.4 Authority. The Alliance Managers and the JRC shall have only the powers
assigned expressly to each of them in this ARTICLE 2 and elsewhere in this Agreement, and shall not have any power to amend, modify or waive compliance with this Agreement. In furtherance thereof, each Party shall retain the rights, powers and
discretion granted to it under this Agreement and no such rights, powers or discretion shall be delegated or vested in the Alliance Managers, JRC or any ad hoc committee appointed hereunder unless such delegation or vesting of rights is expressly
provided for in this Agreement or the Parties expressly so agree in writing. 
 ARTICLE 3 

RESEARCH PROGRAMS 
 3.1 Research Overview. Pursuant to this Agreement and as further provided in this ARTICLE 3, MacroGenics and Gilead shall use Reasonable Research Efforts to conduct the Research activities assigned
to such Party in each Research Plan during each Research Term for each Research Program. MacroGenics and Gilead shall conduct each Research Program in a good scientific manner and in accordance with applicable Law, including GLP and GCP. Neither
Party warrants that any Research Program shall achieve any of the research objectives contemplated in its Research Plan. At the end of the applicable Research Term, each Party’s obligation to conduct such Research Program shall cease unless the
Parties mutually agree to extend its Research Term. 
 3.2 Conduct of the Research Programs. 

3.2.1 Selection of *** Targets. 
 (a) At any time prior to the date that is *** after the Effective Date (“***Target Nomination Period***, Gilead may notify MacroGenics in writing of its nomination of a
combination of *** Targets to serve as the ***Target Nomination Period***, Gilead may notify MacroGenics in writing of its nomination of a combination of *** Targets to serve as the *** Targets
(“*** Target Nomination Notice”). For clarity, (1) Gilead may independently 

  
 23 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
nominate combinations for each of the *** Targets and the *** Targets, and Gilead’s nomination of a combination for the *** Targets shall not require a nomination for
the *** Targets, or vice versa, (2) unless otherwise specified by Gilead in the *** Target Nomination Notice, any nomination made by Gilead during the *** Target Nomination Period prior to MacroGenics’ acceptance of a
nomination for the *** Targets shall be deemed to be a nomination for the *** Targets, and (3) any nomination made by Gilead after MacroGenics’ acceptance of a nomination for the *** Targets shall be deemed to be a
nomination for the *** Targets. 
 (b) Within *** days after MacroGenics’ receipt of any *** Target
Nomination Notice or *** Target Nomination Notice, MacroGenics shall notify Gilead whether it accepts such nomination and shall provide its reasons in the event it declines such nomination. *** Targets only if the nominated
combination: 
 (i) includes a Target, other than ***, with respect to which MacroGenics has a bona fide Active Research
Program; 
 (ii) is subject to a written obligation under a bona fide collaboration, alliance, license or option agreement
entered into by MacroGenics prior to the date of such nomination; or 
 (iii) is subject to active negotiations in connection
with a bona fide written term sheet received, in the *** preceding such notice, from a potential collaborator, alliance partner or licensee contemplating an agreement that would provide for MacroGenics to develop products binding to one of the
Targets, other than ***, or grant any license with respect to one of the Targets, other than ***. 
 In addition to the foregoing conditions
upon which MacroGenics may decline a nomination, MacroGenics may (x) decline any nomination for the *** Targets if the nominated combination is not directed to ***, (y) solely if Gilead nominates and MacroGenics accepts
pursuant to this Section 3.2.1 a combination for the *** Targets that is not directed to *** (as acknowledged by the Parties pursuant to the second sentence of this Section 3.2.1(b)), decline any nomination for the ***
Targets if the nominated combination is not directed to ***, and (z) in its sole discretion, decline *** nomination for the *** Targets notified by Gilead after the first anniversary of the Effective Date. 

(c) In the event that MacroGenics declines any nomination for the ***. 

3.2.2 Research Program Initiation. 
 (a) Following the Effective Date, MacroGenics shall begin conducting Research activities for the *** Research Program and such activities shall progress in accordance with the Research Plan for the
*** Research Program. 
 (b) Gilead may provide separate written notices to MacroGenics (i) within *** after
the Effective Date, of its desire to initiate Research activities for ***, of its desire to initiate Research activities for the *** as applicable (each a “Research Program 

  
 24 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Initiation Notice”). For clarity, Gilead may independently provide a Research Program Initiation Notice for each of the *** ***, and Gilead’s delivery of a Research
Program Initiation Notice for any particular Research Program shall not require the delivery of a Research Program Initiation Notice for any other Research Program. 
 (c) Together with its delivery of a Research Program Initiation Notice for the *** Licensed Program, the *** Licensed Program or the *** Licensed Program, as the case may be, Gilead
shall promptly notify MacroGenics as to whether, as determined by Gilead in good faith, any notifications are required to be filed with the U.S. Federal Trade Commission and/or the U.S. Department of Justice under the HSR Act with respect to the
exclusive license grants contemplated hereby relating to such Licensed Program (after giving effect to the delivery of such Research Program Initiation Notice) (“HSR Filing”). In the event that Gilead notifies MacroGenics that an
HSR Filing is required, each Party shall (i) as promptly as practicable after the date on which the applicable Research Program Initiation Notice is delivered, file or cause to be filed such HSR Filing with the appropriate agencies and
(ii) use reasonable efforts to respond promptly to any requests for additional information made by such agencies and to cause the waiting period (and any extension thereof) under the HSR Act to terminate or expire at the earliest possible date
after the date of filing. Gilead shall be responsible for all filing fees and for the costs and expenses of each Party in preparing and conducting the HSR Filing. 
 (d) Upon the Clearance Date for the *** Licensed Program, the *** Licensed Program or the *** Licensed Program, as the case may be, MacroGenics shall begin conducting Research
activities for the Research Program associated with such Licensed Program and such activities shall progress in accordance the Research Plan for such Research Program or, by mutual agreement of the Parties, with the guidance of the JRC to the extent
such Research Plan is not yet available. *** ***, the Parties in good faith shall agree upon the information and data to be contained in the Preclinical Data Package for such Licensed Program (which information and data shall be similar to
the information and data set forth in Exhibit D). 
 (e) If Gilead fails to provide a Research Program Initiation Notice
within the applicable time period specified in subsection (b) above with respect to any of the *** Research Program, the *** Research Program or the *** Research Program, Gilead shall have no further rights under this Agreement with respect to
such Research Program or the corresponding Licensed Program and all rights and licenses hereunder with respect to such Research Program and Licensed Program shall terminate. 
 3.2.3 Research Plan. The initial Research Plan for the *** Research Program is attached hereto as Exhibit E (the “*** Initial Research Plan”). Within
*** after the Clearance Date with respect to the *** Licensed Program, the *** Licensed Program or the *** Licensed Program, as the case may be, the Parties will prepare a draft initial Research Plan for the Research
Program associated with such Licensed Program for mutual approval (as applicable, the “*** Initial Research Plan,” “*** Initial Research Plan” and “*** Initial Research Plan,”
and each of the *** Initial Research Plan, *** Initial Research Plan, *** Initial Research Plan and *** Initial Research Plan, an “Initial Research Plan”). To the extent that any provision of a Research
Plan conflicts or is inconsistent with the provisions of this Agreement, the provisions of this Agreement shall control. 

  
 25 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 3.2.4 Supplemental Data. Without limitation of Gilead’s rights under
Section 2.3.5 or ARTICLE 5, at any time during the Research Term for a Research Program, the Parties may, through the JRC in accordance with Section 2.3.2, modify the applicable Research Plan to include activities to be conducted by Gilead
to generate additional pre-clinical data for such Research Program (the “Supplemental Data”). Gilead shall disclose to MacroGenics all Supplemental Data for the applicable Research Program within *** days after the completion
of such activities. MacroGenics shall have the right to use the Supplemental Data in performing its obligations and exercising its rights under this Agreement. The availability and finalization of such Supplemental Data shall not in any way
(a) excuse any delay in the delivery of the Preclinical Data Package by MacroGenics to Gilead in accordance with Section 3.3.1 or (b) affect the termination of the applicable Licensed Program under Section 3.3.2(c) in the event
Gilead fails to provide notice of its intent to pay the applicable Preclinical Milestone in accordance with Section 3.3.2(a) or extend the Evaluation Period in accordance with Section 3.3.2(b). 

3.2.5 Supply; Technology Transfer. 
 (a) MacroGenics shall use Commercially Reasonable Efforts to supply to Gilead such quantities of GLP-conforming (non-GMP research material) Program DARTs and Licensed Products as provided in the Research
Plan for use in any IND-enabling Development activities to be conducted by Gilead hereunder. MacroGenics shall use Commercially Reasonable Efforts to deliver such quantities of Program DARTs and Licensed Products in accordance with the delivery
conditions mutually agreed to by the Parties and, promptly following such delivery, shall provide Gilead with an invoice for MacroGenics’ FTE Costs and Out-of-Pocket Costs incurred in connection with such manufacture and supply in accordance
with a budget (including a reasonable allocation of any process development costs) to be agreed in advance by the Parties in good faith, along with any supporting documentation requested by Gilead. Gilead shall pay any such invoice within ***
days after receipt. 
 (b) Prior to the initiation of IND-enabling Development activities with respect to any Licensed Product,
the Parties shall conduct good faith discussions regarding the possibility of entering into a supply agreement pursuant to which MacroGenics would supply such Licensed Product and the applicable Program DART(s) to Gilead for use in ***. 

(c) If the Parties have not entered into a supply agreement with respect to any Licensed Product pursuant to Section 3.2.5(b)
within *** days after the initiation of negotiations by either Party (or, if the Parties enter into such a supply agreement, at any time after the expiration or termination of such supply agreement for any reason or, if earlier, reasonably *** in
advance of the anticipated commencement of a *** of such Licensed Product), upon written request of Gilead, MacroGenics shall promptly (i) transfer to Gilead all relevant MacroGenics Know-How described in clause (b) of Section 1.70,
(ii) disclose to Gilead all other relevant MacroGenics Know-How, and (iii) provide to Gilead all technical assistance, in each case ((i), (ii) and (iii)) as reasonably required for Gilead to Manufacture, itself or through a Third
Party, such Licensed Product and the applicable Program DART(s) for use in Gilead’s Development and Commercialization activities hereunder; and from time to time after such initial transfer, as reasonably requested by Gilead *** with respect to
any additional relevant 

  
 26 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
MacroGenics Know-How, MacroGenics shall transfer, disclose and provide assistance to Gilead with respect to such additional MacroGenics Know-How; provided, however, that in each case Gilead shall
reimburse MacroGenics for any Out-of-Pocket Costs incurred by MacroGenics in making such transfer or disclosure or providing such assistance. 
 (d) At any time after the filing by Gilead or its applicable Affiliate of an IND with respect to a *** Licensed Product, upon written request of MacroGenics, Gilead shall promptly (i) transfer to
MacroGenics all relevant Gilead Collaboration Know-How described in clause (b) of Section 1.70, (ii) disclose to MacroGenics all other relevant Gilead Collaboration Know-How, and (iii) provide to MacroGenics all technical
assistance, in each case ((i), (ii) and (iii)) as reasonably required for MacroGenics to Manufacture, itself or through a Third Party, such *** Licensed Product and the applicable *** Program DART(s) for use in MacroGenics’ Development and
Commercialization activities hereunder; and from time to time after such initial transfer, as reasonably requested by MacroGenics *** with respect to any additional relevant Gilead Collaboration Know-How, Gilead shall transfer, disclose and provide
assistance to MacroGenics with respect to such additional Gilead Collaboration Know-How; provided, however, that in each case MacroGenics shall reimburse Gilead for any Out-of-Pocket Costs incurred by Gilead in making such transfer or disclosure or
providing such assistance 
 (e) If Gilead enters into a supply agreement with a Third Party manufacturer to supply any ***
Licensed Product, Gilead shall, if requested by MacroGenics, grant such Third Party any consents or approvals necessary to enable such Third Party manufacturer to supply to MacroGenics such *** Licensed Product pursuant to a supply agreement to be
entered into by MacroGenics and such Third Party manufacturer. 
 3.2.6 Expenses; Reimbursement. 

(a) Except as otherwise set forth elsewhere in this Agreement, Gilead shall bear its own costs and expenses of conducting its activities
in connection with any Research Program and any activities pursuant to Section 3.2.3. 
 (b) During each Research Term,
Gilead shall reimburse MacroGenics for all Out-of-Pocket Costs incurred by MacroGenics in connection with the applicable Research Program, as specifically contemplated in the applicable Research Plan and in accordance with the budget for such
expenses set forth in such Research Plan (or by mutual agreement of the Parties, to the extent such Research Plan has not yet been approved). Gilead shall reimburse such Out-of-Pocket Costs within *** days after receipt from MacroGenics of an
invoice issued within *** days after the end of each Calendar Quarter. 
 (c) During each Research Term, Gilead shall
reimburse MacroGenics at the FTE Rate for the costs of any FTEs for the applicable Research Program (not to exceed the number of FTEs specified in the applicable Research Plan (or by mutual agreement of the Parties, to the extent such Research Plan
has not yet been approved) for any period without Gilead’s consent, not to be unreasonably withheld) to perform the activities allocated to MacroGenics under such Research Plan (or by mutual agreement of the Parties, to the extent such Research
Plan has not yet been approved). MacroGenics shall provide to Gilead, within 

  
 27 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
*** days after the end of each Calendar Quarter during any Research Term, a report indicating the number of FTEs actually provided by MacroGenics with respect to each Research Program
during such Calendar Quarter. MacroGenics shall use standard industry systems and processes to record the number of hours/FTEs actually applied to each Research Program, which systems and process shall be consistently and equitably applied to all
MacroGenics research programs with Third Parties. Gilead may, at any time during the applicable Research Term, request that the Parties amend the Research Plan to modify the prescribed activities or to reduce or increase on a Calendar Quarter basis
the number of FTEs to be provided by MacroGenics, and the Research Plan shall promptly be amended to account for such change in activities or any such reallocation of Research activities; provided that, on a Research Program-by-Research Program
basis, Gilead may not, without the prior written consent of MacroGenics: (i) reduce the number of FTEs for a Calendar Quarter to less than *** FTEs or increase the number of FTEs for a Calendar Quarter to more than *** FTEs; or
(ii) change the number of FTEs by more than *** FTEs during any period of *** consecutive Calendar Quarters. Gilead shall reimburse MacroGenics for such FTE costs within *** days after receipt from MacroGenics of an invoice
issued within *** days after the end of each Calendar Quarter. 
 3.2.7 Reports. MacroGenics and Gilead shall
provide written progress reports on the status of its Research activities under each Research Plan, including summaries of data generated in the applicable Research Program, at least *** Business Days in advance of each JRC meeting.

 3.3 Preclinical Data Package; Evaluation Period. 

3.3.1 Delivery of Preclinical Data Package. MacroGenics shall provide Gilead with each Preclinical Data Package within ***
days after the data to be contained in such Preclinical Data Package becomes available to MacroGenics. 
 3.3.2 Preclinical
Milestone; Evaluation Period. 
 (a) If Gilead intends to pay the applicable Preclinical Milestone Payment for a Licensed
Program, Gilead shall provide written notice thereof to MacroGenics at any time prior to *** days after the expiration of the Evaluation Period for such Licensed Program (the “Preclinical Milestone Payment Notice”). If Gilead
has not previously delivered a Preclinical Milestone Payment Notice for a Licensed Program, Gilead will be deemed to have delivered the Preclinical Milestone Payment Notice for such Licensed Program and the Evaluation Period for such Licensed
Program shall be deemed to have expired upon the initiation of any GLP Toxicology Study with respect to any Program DART or Licensed Product from such Licensed Program. For purposes of this Section 3.3.2(a), “GLP Toxicology
Study” means a toxicology study that is conducted in compliance with GLP and is required to meet the requirements for filing an IND. 
 (b) At any time prior to ***days after the expiration of the then-current Evaluation Period for any Licensed Program, Gilead shall have the right, exercisable by written notice to MacroGenics, to
extend retroactively such Evaluation Period for a period of ***months from the date such Evaluation Period otherwise would have expired (the “Initial  

  
 28 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Extension”) by paying MacroGenics *** for such Initial Extension; provided that Gilead shall have no right to extend any such Evaluation Period that expired due to the
*** with respect to any Program DART or Licensed Product from such Licensed Program. At any time prior to the expiration of the Initial Extension for any Licensed Program, Gilead shall have the right, exercisable by written notice to
MacroGenics, to extend the Evaluation Period for such Licensed Program for an additional period of *** months from the date such Evaluation Period otherwise would have expired (the “Additional Extension”) (for a total
extension of *** months from the date such Evaluation Period would have expired but for the Initial Extension and the Additional Extension) by paying MacroGenics *** for such Additional Extension. Gilead shall make any payments under
this Section 3.3.2(b) within forty-five (45) days after the later of the date Gilead delivers the applicable notice and Gilead’s receipt of the corresponding invoice. 

(c) In the event Gilead does not provide to MacroGenics a Preclinical Milestone Payment Notice with respect to any Licensed Program at
any time prior to*** days after the expiration of the Evaluation Period for such Licensed Program, then such Licensed Program shall be deemed a Terminated Program and Section 13.7.1 shall apply with respect thereto. 

ARTICLE 4 

GRANT OF RIGHTS; EXCLUSIVITY 
 4.1 License Grants to Gilead. 
 4.1.1***Licensed Program.
Subject to the terms of this Agreement, MacroGenics hereby grants Gilead (a) an exclusive, royalty-bearing, non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to Section 4.3),
under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize, in the Field, Program DARTs (other than Diagnostics) and Licensed Products from the ***Licensed
Program in the Gilead Territory; and (b) an exclusive, royalty-bearing (to the extent provided in Section 8.5.3), non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to
Section 4.3), under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize, in the Field, Diagnostics for use solely with Program DARTs and Licensed Products from
the ***Licensed Program in the Gilead Territory. 
 4.1.2***Licensed Program. Subject to the terms of this
Agreement, effective upon the Clearance Date for the ***Licensed Program, MacroGenics hereby grants Gilead (a) an exclusive, royalty-bearing, non-transferable (except in accordance with Section 15.4) license, with the right to
sublicense (subject to Section 4.3), under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize, Program DARTs (other than Diagnostics) and Licensed Products
from the *** Licensed Program in the Gilead Territory in the Field; (b) an exclusive, royalty-bearing (to the extent provided in Section 8.5.3), non-transferable (except in accordance with Section 15.4) license, with the right
to sublicense (subject to Section 4.3), under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize Diagnostics for use solely with Program DARTs and Licensed
Products from the 

  
 29 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
***Licensed Program in the Gilead Territory in the Field; and (c) subject to Section 5.4, a non-exclusive, royalty-bearing (to the extent provided in Section 8.5),
non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to Section 4.3), under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop and
Manufacture ***Program DARTs and ***Licensed Products in the MacroGenics Territory, provided that such ***Program DARTs and ***Licensed Products are Commercialized only in the Gilead Territory and only in the Field.

 4.1.3*** Licensed Program. Subject to the terms of this Agreement, effective upon the Clearance Date for the
*** Licensed Program, MacroGenics hereby grants Gilead (a) an exclusive, royalty-bearing, non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to Section 4.3), under
MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize, Program DARTs (other than Diagnostics) and Licensed Products from the *** Licensed Program in the Gilead
Territory in the Field; and (b) an exclusive, royalty-bearing (to the extent provided in Section 8.5.3), non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to Section 4.3),
under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize Diagnostics for use solely with Program DARTs and Licensed Products from the *** Licensed Program
in the Gilead Territory in the Field. 
 4.1.4*** Licensed Program. Subject to the terms of this Agreement,
effective upon the Clearance Date for the *** Licensed Program, MacroGenics hereby grants Gilead (a) an exclusive, royalty-bearing, non-transferable (except in accordance with Section 15.4) license, with the right to sublicense
(subject to Section 4.3), under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize, Program DARTs (other than Diagnostics) and Licensed Products from the
*** Licensed Program in the Gilead Territory in the Field; and (b) an exclusive, royalty-bearing (to the extent provided in Section 8.5.3), non-transferable (except in accordance with Section 15.4) license, with the right to
sublicense (subject to Section 4.3), under MacroGenics’ and its Affiliates’ interests in MacroGenics IP and Joint IP, to Research, Develop, Manufacture and Commercialize Diagnostics for use solely with Program DARTs and Licensed
Products from the *** Licensed Program in the Gilead Territory in the Field. 
 4.2 License Grant to MacroGenics.
Subject to the terms of this Agreement, Gilead hereby grants MacroGenics (a) effective upon the Clearance Date for the ***Licensed Program, an exclusive, royalty-free, non-transferable (except in accordance with Section 15.4)
license, with the right to sublicense (subject to Section 4.3), under Gilead’s and its Affiliates’ interest in Gilead Collaboration IP and Joint IP, to Research, Develop, Manufacture and Commercialize ***Program DARTs and
***Licensed Products in the MacroGenics Territory in the Field; (b) effective upon the Clearance Date for the ***Licensed Program, an exclusive, royalty-free, non-transferable (except in accordance with Section 15.4) license,
with the right to sublicense (subject to Section 4.3), under Gilead’s and its Affiliates’ interest in Gilead Collaboration IP and Joint IP, to Research, Develop, Manufacture and Commercialize Diagnostics for use solely with
***Program DARTs and ***Licensed Products in the MacroGenics Territory in the Field; (c) effective upon the Clearance Date for the ***Licensed Program, subject to Section 5.5, a
non-

  
 30 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
exclusive, royalty-free, non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to Section 4.3), under Gilead’s and its
Affiliates’ interest in Gilead Collaboration IP and Joint IP, to Research, Develop and Manufacture ***Program DARTs and ***Licensed Products in the Gilead Territory, provided that such ***Program DARTs and
***Licensed Products are Commercialized only in the MacroGenics Territory and only in the Field; and (d) subject to Section 4.9, a non-exclusive, royalty-free, non-transferable (except in accordance with Section 15.4) license,
with the right to sublicense (subject to Section 4.3), under Gilead’s and its Affiliates’ interest in Gilead Collaboration IP and Joint IP that are Platform IP, to Research, Develop, Manufacture and Commercialize throughout the world
DARTs which are not Program DARTs or Licensed Products. 
 4.3 Sublicenses. Each Party shall have the right to grant
sublicenses within the scope of the licenses under Section 4.1 or 4.2, as applicable, to its Affiliates and to Third Parties that desire to conduct Research, Development, Manufacture and/or Commercialization activities with respect to Program
DARTs and Licensed Products; provided, however, that without the prior written consent of MacroGenics, Gilead shall not have the right to sublicense (a) any MacroGenics Know-How to any Generic Licensee; (b) any rights under
Patents or Know-How licensed to MacroGenics pursuant to a MacroGenics Third Party Agreement to any Generic Licensee; or (c) any rights under Patents or Know-How licensed to MacroGenics pursuant to a MacroGenics Third Party Agreement that
requires MacroGenics (or the applicable Third Party licensor) to consent to any such sublicense; and provided further that any sublicense granted to a Third Party (other than a Generic Licensee or Compulsory Licensee) under this
Agreement shall be pursuant to a written agreement that subjects such sublicensee to all relevant restrictions and limitations set forth in this Agreement, including the confidentiality provisions of ARTICLE 10. If either Party grants a sublicense
to a Third Party (including to any Generic Licensee) as permitted by this Section 4.3, then such Party shall provide the other Party prompt written notice thereof and shall provide the other Party with an executed copy of any such sublicense
(redacted as necessary to protect confidential or commercially sensitive information). Except with respect to any Generic Licensee or Compulsory Licensee or as otherwise agreed by the Parties in writing, each Party shall be jointly and severally
responsible with its sublicensees to the other Party for failure by its sublicensees to comply with this Agreement. Each Party shall use commercially reasonable efforts to enforce the terms of any sublicense granted by such Party under this
Agreement to any sublicensee other than a Compulsory Licensee to the extent such Party learns, or otherwise knows, that such sublicensee is in breach of any provision of such sublicense in a manner that would reasonably be likely to materially harm
the other Party. In the event that a Generic Licensee fails to honor a payment obligation under a sublicense granted under this Agreement (and has not cured such failure within any applicable cure period), at the request of MacroGenics, Gilead
shall, at Gilead’s election, either terminate the sublicense or pay MacroGenics the amount that would have been due to MacroGenics under Section 8.5.2 if such Generic Licensee had honored its payment obligation. 

4.4 First Right of Negotiation For MacroGenics Territory. If at any time during the Agreement Term MacroGenics desires to enter
into a licensing transaction with a Third Party to Commercialize one or more ***Program DART(s) or ***Licensed Product(s) in the Field in the MacroGenics Territory (but excluding any transaction that results in a Change of Control),
MacroGenics shall notify Gilead of its intent to enter into such a transaction, identifying the 

  
 31 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
applicable ***Program DART(s) or ***Licensed Products(s) that is(are) proposed to be the subject of such transaction. Gilead shall have *** days from receipt of such
written notice to notify MacroGenics in writing as to whether Gilead desires to negotiate for such rights, and if Gilead so notifies MacroGenics that it does desire to negotiate for such rights, the Parties shall, for a period of *** days
from the date of such notification to MacroGenics, negotiate in good faith the terms of a definitive agreement for such rights; provided, however, that if Gilead and MacroGenics do not enter into a definitive agreement within such *** day
period, Gilead’s rights under this Section 4.4 shall terminate and MacroGenics shall be free to enter into any licensing transaction to Commercialize the applicable ***Program DART(s) or ***Licensed Product(s) in the Field in
the MacroGenics Territory without further obligation to Gilead under this Section 4.4.  
 4.5
Subcontracting. Subject to the terms of this Agreement, each Party shall have the right to engage Affiliates or Third Party subcontractors to perform activities ascribed to such Party, under this Agreement. Any Affiliate or subcontractor to
be engaged by a Party to perform a Party’s obligations under this Agreement shall meet the qualifications typically required by such Party for the performance of work similar in scope and complexity to the subcontracted activity; provided,
however, that any Party engaging an Affiliate or subcontractor hereunder shall remain fully responsible and obligated for such activities. In addition, each Party engaging a subcontractor shall (a) obtain such rights to any Know-How, Patents or
other intellectual property rights created, discovered, invented, conceived or reduced to practice by such subcontractor with respect to any Program DART or Licensed Product as may be required for the Parties to exercise their rights and carry out
their responsibilities under this Agreement with respect to such Program DART or Licensed Product without infringing the intellectual property rights of such subcontractor and, unless otherwise agreed by the other Party in writing, without incurring
any additional costs that would be borne by the other Party, and (b) use Commercially Reasonable Efforts to obtain Control of any Know-How, Patents or other intellectual property rights created, discovered, invented, conceived or reduced to
practice by such subcontractor with respect to any Program DART or Licensed Product. 
 4.6 MacroGenics Third Party
Agreements. 
 4.6.1 In the event that MacroGenics enters into an agreement with a Third Party after the Effective Date that
meets the criteria set forth in clause (a) of the definition of MacroGenics Third Party Agreements, then MacroGenics will promptly provide Gilead with notice and a copy of the applicable Third Party agreement. Within *** days following
receipt of such notice, Gilead will decide, in its sole discretion, whether or not to accept the applicable Third Party agreement as a MacroGenics Third Party Agreement, and provide MacroGenics written notice of such decision. In the event that
Gilead accepts such Third Party agreement as a MacroGenics Third Party Agreement, such agreement will thereafter be included within the definition of MacroGenics Third Party Agreements. In the event that Gilead does not accept such Third Party
agreement as a MacroGenics Third Party Agreement, (a) Gilead and its Affiliates shall have no obligations with respect to such Third Party agreement and (b) to the extent there is a conflict between the terms of any such Third Party
agreement and the terms of this Agreement, including the rights granted to Gilead hereunder, then as between Gilead and MacroGenics, the terms of this Agreement shall control. 

  
 32 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 4.6.2 Gilead covenants to comply with, and to cause its Affiliates and Sublicensees to
comply with, any MacroGenics Third Party Agreements, and to take any action or provide any information reasonably requested by MacroGenics to prevent any potential breach of any terms of such MacroGenics Third Party Agreements. To the extent there
is a conflict between the terms of any MacroGenics Third Party Agreement and the rights granted to Gilead hereunder, the terms of such MacroGenics Third Party Agreement shall control solely with respect to the Patents and Know-How owned or
controlled by such Third Party licensor. MacroGenics shall not terminate or consent to the termination of any MacroGenics Third Party Agreement without Gilead’s prior reasonable consent if such termination would affect any license or other
rights of Gilead hereunder; provided, however, that MacroGenics may (a) ***. 
 4.7 Rights Retained by the Parties. Any
rights of MacroGenics or Gilead, as the case may be, not expressly granted to the other Party pursuant to this Agreement shall be retained by such Party. Notwithstanding the exclusive licenses granted to Gilead pursuant to Section 4.1,
MacroGenics retains the right to (a) practice the MacroGenics IP and Joint IP to perform (and to sublicense Third Parties to perform) its obligations under this Agreement and in the exercise of its rights under the license grant set forth in
Section 4.2(c); and (b) ***. Notwithstanding the exclusive licenses granted to MacroGenics pursuant to Section 4.2, Gilead retains the right to practice the Gilead Collaboration IP and Joint IP in the exercise of its rights
under the license grant set forth in Section 4.1.2(c). 
 4.8 Section 365(n) of the Bankruptcy Code. All rights
and licenses granted under or pursuant to any section of this Agreement are and will otherwise be deemed to be for purposes of Section 365(n) of the United States Bankruptcy Code (Title 11, U.S. Code), as amended (the “Bankruptcy
Code”), or any analogous provision of applicable Law outside the United States, licenses of rights to “intellectual property” as defined in Section 101(35A) of the Bankruptcy Code, or any analogous provision of applicable Law
outside the United States. The Parties will retain and may fully exercise all of their respective rights and elections under the Bankruptcy Code or analogous provisions of applicable Law outside the United States. Each Party agrees that the other
Party, as licensee of such rights under this Agreement, will retain and may fully exercise all of its rights and elections under the Bankruptcy Code or any other provisions of applicable Law outside the United States that provide similar protection
for “intellectual property.” 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 analogous provisions of applicable Law outside the United
States, the other Party will be entitled to a complete duplicate of (or complete access to, as appropriate) such intellectual property and all embodiments of such intellectual property, which, if not already in such Party’s possession, will be
promptly delivered to it upon such Party’s written request thereof. Any agreements supplemental hereto will be deemed to be “agreements supplementary to” this Agreement for purposes of Section 365(n) of the Bankruptcy Code or any
analogous provision of applicable Law outside the United States. 
 4.9 Exclusivity. 

4.9.1 During the term of this Agreement, other than with respect to the Research and Development activities pursuant to this Agreement or
as permitted under Section 4.7(b), neither MacroGenics nor its Affiliates shall, ***, (a) conduct or assist any Third Party in 

  
 33 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
conducting any Research, Development, Manufacture or Commercialization of a Competing Product in the Gilead Territory, (b) *** (c) grant any license or other rights to any Third
Party under its interests in the MacroGenics IP or Joint IP to Research, Develop, Manufacture or Commercialize a Competing Product in the Gilead Territory. Notwithstanding the foregoing, MacroGenics shall not be deemed to have breached its
obligations under clause (a) of this Section 4.9.1 solely as a result of activities conducted by a Third Party licensee, sublicensee or collaborator of MacroGenics if (x) the conduct of such activities by such Third Party violates the
terms of the applicable agreement between MacroGenics and such Third Party and (y) MacroGenics uses reasonable efforts to enforce the terms of such agreement against such Third Party. 

4.9.2 Subject to Section 15.4, in the event of an acquisition of MacroGenics or its assets or equity by a Third Party, the
prohibitions set forth in Section 4.9.1 shall not apply to the extent a breach of Section 4.9.1 would result from an activity or conduct by such Third Party where such Third Party was engaged in such activity or conduct prior to such
acquisition. 
 ARTICLE 5 
 DEVELOPMENT 
 5.1 Overview. Following receipt by MacroGenics
of a Preclinical Milestone Payment Notice for any Licensed Program, Gilead will, subject to the terms of this Agreement, be responsible for the Development of Licensed Products from such Licensed Program in the Field for the Gilead Territory.
Following receipt by MacroGenics of a Preclinical Milestone Payment Notice for the *** Licensed Program, MacroGenics will, subject to the terms of this Agreement, be responsible for Development of Licensed Products from the *** Licensed Program in
the Field for the MacroGenics Territory. While the Parties may choose, at their sole discretion, to work together on particular projects, except as otherwise provided in this Agreement, the Parties will operate independently in their activities for
their respective Development of Licensed Products, but will provide access to certain information to each other as expressly described in this Agreement. 
 5.2 Gilead Diligence Obligations. Gilead shall, at its own expense, use Commercially Reasonable Efforts to Develop and obtain Regulatory Approval for (a) in the *** and
(b) in***. 
 5.3 Joint Development Activities. With respect to the *** Licensed Program, from time to
time during the License Term, either Party may submit a proposal to the other Party through the Alliance Managers to jointly conduct Development activities specifically designed for the purpose of facilitating Regulatory Approval of a ***
Licensed Product in both the Gilead Territory and the MacroGenics Territory (a “Joint Development Activity”). In the event that the Parties mutually agree to conduct such Joint Development Activity, the Parties will (a) agree
in writing to a written work plan and time table for conducting such Joint Development Activity and a mechanism for adopting amendments thereto; (b) agree in writing to governance and management mechanisms for such Joint Development Activity,
including coordination of such Joint Development Activity through the Alliance Managers; and (c) negotiate in good faith a budget therefor, a mechanism for adopting amendments thereto, and an equitable allocation of costs between the Parties.

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 5.4 Gilead *** Clinical Trials. 

5.4.1 In the event that Gilead or one of its Affiliates or Sublicensees desires to conduct, directly or indirectly, any Clinical Trial or
other clinical study, including any investigator initiated studies sponsored by Gilead or its Affiliates or Sublicensees, of any ***Program DART or ***Licensed Product in any country in the MacroGenics Territory ***: 

(a) MacroGenics shall have the right to review a draft of the protocol of such Clinical Trial or study reasonably in advance of the
commencement of such Clinical Trial or study; 
 (b) MacroGenics shall have the right to provide comments on such draft
protocol to Gilead no later than *** weeks after receipt by MacroGenics thereof, and Gilead (or its applicable Affiliate or Sublicensee) shall reasonably consider such comments; 

(c) MacroGenics shall have the right to object to such protocol based on a Significant Adverse Effect (a “MacroGenics
Objection”), provided that (i) the basis of such MacroGenics Objection is consistently applied by MacroGenics to its and Gilead’s active and completed Clinical Trials or other studies with respect to the ***Licensed
Program, (ii) such MacroGenics Objection is made by written notice to Gilead no later than *** weeks after receipt by MacroGenics of the protocol, and such written notice specifically identifies, in reasonable detail, the potential risk
such Clinical Trial or study may pose. Gilead may proceed with any such Clinical Trial or study in the event that MacroGenics does not provide written notice of a MacroGenics Objection within such *** week period; 

(d) in the event MacroGenics timely and appropriately delivers notice of a MacroGenics Objection to Gilead, (i) the Parties’
respective clinical development teams shall, within *** Business Days following the delivery of such notice, convene for the purpose of discussing in good faith and resolving the MacroGenics Objection, and (ii) (x) if conducting
such Clinical Trial or study is reasonably necessary for obtaining or maintaining Marketing Approval for a Licensed Product in the ***, then Gilead or its applicable Affiliate or Sublicensee may conduct (or sponsor, as applicable) such
Clinical Trial or study without the approval of MacroGenics, and (y) in all other cases, Gilead or its applicable Affiliate or Sublicensee may not conduct (or sponsor, as applicable) such Clinical Trial or study without the prior written
approval of MacroGenics (not to be unreasonably withheld, conditioned or delayed); provided, however, that withholding, conditioning or delaying such approval based on the continued existence of a Significant Adverse Effect shall be deemed not
unreasonable; and 
 (e) in the event any protocol for any Clinical Trial or study previously reviewed by Gilead pursuant to
this Section 5.4.1 is materially changed, such Clinical Trial or study under such changed protocol shall again be subject to the provisions of this Section 5.4.1 as if it were a new Clinical Trial or study. 

5.4.2 Without the prior written consent of MacroGenics, neither Gilead nor any of its Affiliates or Sublicensees shall conduct, directly
or indirectly, any Clinical Trial or other clinical study, including any investigator initiated studies sponsored by Gilead or its Affiliates or Sublicensees, of any ***Program DART or ***Licensed Product in ***. 

  
 35 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 5.4.3 In the event that Gilead or one of its Affiliates or Sublicensees desires to conduct,
directly or indirectly, any Clinical Trial or other clinical study, including any investigator initiated studies sponsored by Gilead or its Affiliates or Sublicensees, of any ***Program DART or ***Licensed Product in the Gilead
Territory, MacroGenics shall have the right to review a draft of the protocol of such Clinical Trial or study reasonably in advance of the commencement of such Clinical Trial or study. 

5.5 MacroGenics ***Clinical Trials. 
 5.5.1 In the event that MacroGenics or one of its Affiliates or Sublicensees desires to conduct, directly or indirectly, any Clinical Trial or other clinical study, including any investigator initiated
studies sponsored by MacroGenics or its Affiliates or Sublicensees, of any ***Program DART or ***Licensed Product: 
 (a) Gilead shall have the right to review a draft of the protocol of such Clinical Trial or study reasonably in advance of the commencement of such Clinical Trial or study; 

(b) Gilead shall have the right to provide comments on such draft protocol to MacroGenics no later than *** weeks after receipt
by Gilead thereof, and MacroGenics (or its applicable Affiliate or Sublicensee) shall reasonably consider such comments; 
 (c)
Gilead shall have the right to object to such protocol based on a Significant Adverse Effect (a “Gilead Objection”), provided that (i) the basis of such Gilead Objection is consistently applied by Gilead to its and
MacroGenics’ active and completed Clinical Trials or other studies with respect to the *** Licensed Program, (ii) such Gilead Objection is made by written notice to MacroGenics no later than *** weeks after receipt by Gilead
of the protocol, and such written notice specifically identifies, in reasonable detail, the potential risk such Clinical Trial or study may pose. MacroGenics may proceed with any such Clinical Trial or study in the event that Gilead does not provide
written notice of a Gilead Objection within such *** week period; and 
 (d) in the event Gilead timely and
appropriately delivers notice of a Gilead Objection to MacroGenics, (i) the Parties’ respective clinical development teams shall, within *** Business Days following the delivery of such notice, convene for the purpose of discussing in good
faith and resolving the Gilead Objection, and (ii) without the prior written approval of Gilead (not to be unreasonably withheld, conditioned or delayed; provided, however, that withholding, conditioning or delaying such approval based on the
continued existence of a Significant Adverse Effect shall be deemed not unreasonable), MacroGenics or its applicable Affiliate or Sublicensee shall not conduct (or sponsor, as applicable) such Clinical Trial or study. 

  
 36 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 5.5.2 In the event any protocol for any Clinical Trial or study previously reviewed by
Gilead pursuant to Section 5.5.1 is ***, such Clinical Trial or study under such changed protocol shall again be subject to the provisions of Section 5.5.1 as if it were a new Clinical Trial or study. 

5.6 Development Costs. 
 5.6.1 Gilead Territory Development Activities. Except as specifically provided in Section 5.3, Gilead shall be responsible for *** of all Development costs incurred by Gilead and its
Affiliates with respect to any Development activities that are conducted with respect to Program DARTs or Licensed Products in the Field in the Gilead Territory or, as permitted under this Agreement, in the MacroGenics Territory. 

5.6.2 MacroGenics Territory Development Activities. Except as specifically provided in Section 5.3 or the Research Plan for
the ***Research Program, MacroGenics shall be responsible for *** of all Development costs incurred by MacroGenics and its Affiliates with respect to any Development activities that are conducted with respect to Program DARTs and
Licensed Products from the ***Licensed Program in the Field in the MacroGenics Territory or, as permitted under this Agreement, in the Gilead Territory. 
 5.7 Reports; Exchange of Data. 
 5.7.1 For each
Licensed Program, from Gilead’s delivery of a Preclinical Milestone Payment Notice for such Licensed Program until the receipt of Marketing Approval for a Licensed Product from such Licensed Program, Gilead shall, by January 31st of each Calendar Year, provide a report on Gilead’s Research
and Development activities for such Licensed Program. The report shall describe, among other matters: (a) material activities completed since the last report including the object and parameters of the Development, when initiated, when completed
and a summary of all material results; (b) material activities currently under investigation; (c) material activities planned to be undertaken before the next report including the type and object of any Clinical Trials to be conducted and
their projected starting and completion dates; and (d) material changes in Gilead’s Development and Commercialization plans. In addition, Gilead shall reasonably respond to reasonable requests by MacroGenics for information regarding
Gilead’s Research and Development activities for such Licensed Program. All reports and information provided to MacroGenics by Gilead pursuant to this Section 5.7.1 shall be deemed the Confidential Information of Gilead and subject to the
confidentiality and non-use obligations set forth in ARTICLE 10. 
 5.7.2 Without limitation of
Section 5.5, from Gilead’s delivery of a Preclinical Milestone Payment Notice for the ***Licensed Program until the receipt of Marketing Approval for a Licensed Product from the ***Licensed Program, MacroGenics shall, by
January 31st of each Calendar Year, provide a report
on MacroGenics’ Research and Development activities for the ***Licensed Program. The report shall describe, among other matters: (a) material activities completed since the last report including the object and parameters of the
Development, when initiated, when completed and a summary of all material results; (b) material activities currently under investigation; (c) material activities planned to be undertaken before the next report

  
 37 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
including the type and object of any contemplated Clinical Trials and their projected starting and completion dates; and (d) material changes in MacroGenics’ Development and
Commercialization plans. In addition, MacroGenics shall reasonably respond to reasonable requests by Gilead for information regarding MacroGenics’ Research and Development activities for the ***Licensed Program. All reports and information
provided to Gilead by MacroGenics pursuant to this Section 5.7.2 shall be deemed the Confidential Information of MacroGenics and subject to the confidentiality and non-use obligations set forth in ARTICLE 10. 

5.7.3 Exchange of Data. Promptly after MacroGenics’ receipt of a Preclinical Milestone Payment Notice with respect to any
Licensed Program, and from time to time thereafter during the applicable License Term, in each case in a manner and following a reasonable schedule to be established by the Alliance Managers: 

(a) MacroGenics shall (i) transfer to Gilead all MacroGenics Know-How described in clause (b) of Section 1.70, and
(ii) disclose to Gilead all other MacroGenics Know-How, in each case ((i) and (ii)) related to Program DARTs and Licensed Products from such Licensed Program, created by or on behalf of MacroGenics and not already transferred or disclosed to
Gilead. Such transfer and disclosure shall include copies of relevant material, information, reports and data, including pre-clinical data, clinical data, and any data that has been provided to Regulatory Authorities for the purpose of obtaining
Regulatory Approval. 
 (b) If such Preclinical Milestone Payment Notice was delivered with respect to the ***Licensed
Program, Gilead shall (i) transfer to MacroGenics all Gilead Collaboration Know-How described in clause (b) of Section 1.70, and (ii) disclose to MacroGenics all other Gilead Collaboration Know-How, in each case ((i) and (ii))
related to ***Program DARTs and ***Licensed Products, created by or on behalf of Gilead and not already transferred or disclosed to MacroGenics. Such transfer and disclosure shall include copies of relevant material, information,
reports and data, including pre-clinical data, clinical data, and any data that has been provided to Regulatory Authorities for the purpose of obtaining Regulatory Approval. 
 5.7.4 Use. All preclinical, non-clinical, analytical, manufacturing, and clinical data and associated reports disclosed by one Party to the other under this Agreement may be used by the receiving
Party subject to the terms of this Agreement solely for the purpose of exercising its rights and performing its obligations under this Agreement. Subject to ARTICLE 10, each Party shall have the right to share any and all such data and other
regulatory materials received from the other Party with its Affiliates and Sublicensees and subcontractors solely for the purpose of exercising such Party’s rights and performing its obligations under this Agreement. 

  
 38 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE 6 
 REGULATORY MATTERS 
 The provisions of this ARTICLE 6 shall apply
during each License Term. 
 6.1 Gilead Regulatory Responsibility. 

6.1.1 Following receipt by MacroGenics of a Preclinical Milestone Payment Notice, Gilead shall (a) own and be responsible for
preparing, filing and maintaining all Regulatory Documentation and Regulatory Approvals that are required for the Development, Manufacture and Commercialization of the Program DARTs or Licensed Products from the applicable Licensed Program in the
Field in the Gilead Territory for such Licensed Program, (b) otherwise be responsible for and have sole authority as to all interactions with Regulatory Authorities in the Gilead Territory for such Licensed Program with respect to such Licensed
Program, and (c) comply with all applicable Laws in the Gilead Territory for such Licensed Program, including FDA regulations, local regulations and ICH guidelines, with respect to such Licensed Program. 

6.1.2 Gilead hereby grants to MacroGenics a Right of Reference or Use to any Regulatory Documentation in the *** Licensed Territory
Controlled by Gilead for use by MacroGenics in the MacroGenics Territory, and agrees to sign, and cause its Affiliates to sign, from time to time, promptly upon request, any instruments reasonably requested by MacroGenics in order to further effect
such grant. Gilead shall permit any relevant Regulatory Authority to inspect any such Regulatory Documentation. Gilead shall also permit MacroGenics, upon reasonable notice, during regular business hours, to inspect any such Regulatory
Documentation; provided, however, that such inspections be limited in frequency to once per Calendar Year unless extraordinary circumstances (as reasonably agreed by the Parties) require more frequent inspections. 

6.2 MacroGenics Regulatory Responsibility. 
 6.2.1 During the ***License Term MacroGenics shall (a) own and be responsible for preparing, filing and maintaining all Regulatory Documentation and Regulatory Approvals that are required for
the Development, Manufacture and Commercialization of ***Program DARTs or ***Licensed Products in the Field in the MacroGenics Territory, (b) otherwise be responsible for and have sole authority as to all interactions with
Regulatory Authorities in the MacroGenics Territory with respect to the ***Licensed Program, and (c) comply with all applicable Laws in the MacroGenics Territory, including FDA regulations, local regulations and ICH guidelines, with
respect to the ***Licensed Program. 
 6.2.2 MacroGenics hereby grants to Gilead a Right of Reference or Use to any
Regulatory Documentation in the MacroGenics Territory Controlled by MacroGenics for use by Gilead in the Gilead Territory, and agrees to sign, and cause its Affiliates to sign, from time to time, promptly upon request, any instruments reasonably
requested by Gilead in order to further effect such grant. MacroGenics shall permit any relevant Regulatory Authority to inspect any such Regulatory Documentation. MacroGenics shall also permit Gilead, upon reasonable notice,

  
 39 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
during regular business hours, to inspect any such Regulatory Documentation; provided, however, that such inspections be limited in frequency to once per Calendar Year unless extraordinary
circumstances (as reasonably agreed by the Parties) require more frequent inspections. 
 6.3 Communications with Regulatory
Authorities. 
 6.3.1 Gilead shall be responsible for all submissions to, and communications and interactions with,
Regulatory Authorities in the Gilead Territory for any Licensed Program with respect to Program DARTs and Licensed Products from such Licensed Program, and MacroGenics shall be responsible for all submissions to, and communications and interactions
with, Regulatory Authorities in the MacroGenics Territory with respect to *** Program DARTs and *** Licensed Products. In connection therewith: 
 (a) Gilead shall keep MacroGenics reasonably informed regarding Gilead’s (or its Affiliate’s or Sublicensee’s) regulatory strategy, planned regulatory submissions and communications with
the Regulatory Authorities in the *** Licensed Territory with respect to *** Program DARTs and *** Licensed Products, including any significant changes to such strategy, submissions or communications. Gilead shall provide
MacroGenics with copies of key portions of regulatory submissions to, and key communications with, the FDA and Regulatory Authorities in the EU relating to the *** Program DARTs and *** Licensed Products in the *** Licensed
Territory. 
 (b) MacroGenics shall keep Gilead reasonably informed regarding MacroGenics’ (or its Affiliate’s or
Sublicensee’s) regulatory strategy, planned regulatory submissions and communications with the Regulatory Authorities in the MacroGenics Territory with respect to Program DARTs and Licensed Products from the *** Licensed Program, including any
significant changes to such strategy, submissions or communications. MacroGenics shall provide Gilead with copies of key portions of regulatory submissions to, and key communications with, the PMDA relating to the *** Program DARTs and *** Licensed
Products in the MacroGenics Territory. 
 6.4 Pharmacovigilance and Safety Data Reporting for the *** Licensed Program.

 6.4.1 Pharmacovigilance. Commencing at least thirty (30) days prior to the projected date for Gilead’s
commencement of the first Phase 1 Clinical Trial for a *** Licensed Product, if MacroGenics is then actively Developing a *** Licensed Product, the Parties shall negotiate in good faith, with respect to *** Licensed Products, a
safety data exchange agreement, governing the collection, investigation, reporting, and exchange of information concerning adverse drug reactions/experience, *** Licensed Product quality and *** Licensed Product complaints, sufficient
to permit each Party to comply with its legal obligations (the “SDEA Agreement”). The SDEA Agreement shall provide that Gilead will establish and maintain the global safety database for each *** Licensed Product. The SDEA
Agreement will be promptly updated if required by changes in legal requirements. The Parties may mutually agree to terminate the SDEA Agreement at any time if a Party determines to permanently cease conducting Development and Commercialization
activities with respect to *** Licensed Products. 

  
 40 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 6.4.2 Safety Data Reporting. 

(a) Each Party shall keep the other Party informed about any adverse drug reactions/experiences (as defined in the SDEA Agreement) of
which such Party becomes aware or is informed about regarding the use of a ***Licensed Product in the MacroGenics Territory or the ***Licensed Territory. As between the Parties, Gilead shall be responsible for reporting all such
adverse drug reactions/experiences to the appropriate Regulatory Authorities in countries in the ***Licensed Territory, and MacroGenics shall be responsible for reporting all such adverse drug reactions/experiences to the appropriate
Regulatory Authorities in the MacroGenics Territory for the ***Licensed Program, in each case in accordance with the appropriate Laws of the relevant countries and authorities. Gilead shall ensure that its Affiliates and Sublicensees comply
with such reporting obligations in the ***Licensed Territory and MacroGenics shall ensure that its Affiliates and sublicensees (other than Gilead and its Sublicensees) comply with such reporting obligations in the MacroGenics Territory. These
reporting obligations shall apply to other adverse events with respect to ***Licensed Products as described in the SDEA Agreement, including adverse events occurring from product overdose or from product withdrawal, as well as any toxicity,
sensitivity, failure of expected pharmacological action, or laboratory abnormality which is, or is thought by the reporter, to be serious or associated with relevant clinical signs or symptoms. 

(b) For the ***Licensed Program, during the negotiation of the SDEA Agreement, each Party will designate a pharmacovigilance
liaison to be responsible for communicating with the other Party regarding the reporting of adverse drug reactions/experiences. Each Party (the “Notifying Party”) shall notify the other Party in writing of all information coming to
the Notifying Party’s attention, regardless of the origin of such information, and including such information coming to its attention through clinical and non-clinical sources (including journal publications and other media), regarding adverse
drug reactions/experiences associated with a ***Licensed Product, whether in the ***Licensed Territory or in the MacroGenics Territory. 
 ARTICLE 7 
 COMMERCIALIZATION 

The provisions of this ARTICLE 7 shall apply during each License Term. 

7.1 Overview. Gilead shall have sole control and responsibility for the Commercialization of Licensed Products in the Field
in the Gilead Territory and shall bear all costs and expenses associated therewith. MacroGenics shall have sole control and responsibility for the Commercialization of *** Licensed Products in the MacroGenics Territory and shall bear all
costs and expenses associated therewith. The Party with responsibility for Commercialization of a Licensed Product in a Territory shall be referred to as the “Commercializing Party” for such Territory. 

  
 41 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 7.2 Gilead Obligations. Following receipt of the applicable Marketing Approval with
respect to each Licensed Product, Gilead shall, at its own expense, use Commercially Reasonable Efforts to Commercialize such Licensed Product in the ***. 
 7.3 Sales and Distribution. It is understood that as between the Parties, the Commercializing Party shall be solely responsible for handling all returns, order processing, invoicing and
collection, distribution, and receivables for Licensed Products in the applicable Territory. 
 7.4 Ex-Territory
Sales. Subject to applicable Law, the Commercializing Party shall not engage in any advertising or promotional activities relating to Licensed Product directed primarily to customers or other buyers or users of Licensed Product located
outside its Territory, or accept orders for Licensed Products from or sell Licensed Products into the other Party’s Territory, whether for its own account or for the other Party’s account. If the Commercializing Party receives any order
for Licensed Products in the other Party’s Territory, it shall refer such orders to the other Party for acceptance or rejection. 
 7.5 Commercialization Plan. For each Licensed Product, Gilead shall deliver an initial Commercialization plan to MacroGenics no later than *** prior to the anticipated date of the First
Commercial Sale of such Licensed Product in the Gilead Territory . For each *** Licensed Product, MacroGenics shall deliver an initial Commercialization plan to Gilead no later than *** prior to the anticipated date of the First
Commercial Sale of such Licensed Product in the MacroGenics Territory. 
 7.6 Trademarks. 

7.6.1 Ownership of Trademarks. Subject to Section 7.6.2, Gilead and its Affiliates shall select the trademarks under which
they will market Licensed Products (“Gilead Product Trademark”), which trademarks shall not contain the word “MacroGenics”. Gilead and its Affiliates shall own such Gilead Product Trademarks worldwide. Subject to
Section 7.6.2, MacroGenics and its Affiliates shall select the trademarks under which they propose to market *** Licensed Products in the MacroGenics Territory (“MacroGenics Product Trademark”), which trademarks shall not
contain the word “Gilead”, and shall notify Gilead thereof and provide Gilead with a reasonable opportunity to comment thereon prior to commencing any registration or use thereof. MacroGenics and its Affiliates shall own such MacroGenics
Product Trademarks worldwide. 
 7.6.2 Selection and Use of Trademarks. MacroGenics shall not, and shall not permit its
Affiliates or Sublicensees, to select or use as a MacroGenics Product Trademark any trademark that is identical to or likely to cause confusion with the GILEAD trademark or any trademark for any pharmaceutical product of Gilead or any of its
Affiliates. Gilead shall not, and shall not permit its Affiliates or Sublicensees, to select or use as a Gilead Product Trademark any Trademark that is identical to or likely to cause confusion with the MACROGENICS trademark or any trademark for any
pharmaceutical product of MacroGenics or any of its Affiliates. 

  
 42 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 7.6.3 Future License. To the extent that either Party desires to utilize the other
Party’s Product Trademark to Commercialize *** Licensed Products in its Territory for the *** Licensed Program, then Gilead and MacroGenics shall enter into good faith discussions regarding a separate trademark license agreement containing
commercially reasonable and customary terms pursuant to which the Party that owns such Product Trademark would grant the other Party an exclusive license to use the applicable Product Trademark(s) to Commercialize *** Licensed Products in such other
Party’s Territory; provided, that neither Party shall have any obligation to enter into any such trademark license agreement. 
 7.7 Standards of Conduct.
 7.7.1 Each Party shall in all respects comply
with all applicable Laws and applicable guidelines concerning the advertising, sales and marketing of prescription drug products in Commercializing Licensed Products under this Agreement, including any applicable anti-bribery laws, including those
described in Section 7.7.2. 
 7.7.2 Without limiting Section 7.7.1, in connection with any activities under this
Agreement, neither Party shall give, offer, promise, or authorize any payment, benefit, or gift of money or anything else of value, directly or indirectly, to (a) any Government or Public Official; (b) any political party, party official
or candidate for public or political office; (c) any Person while knowing or having reason to know that all or a portion of the value will be given, offered or promised, directly or indirectly, to anyone described in terms (a) or
(b) above; or (d) any owner, director, employee, representative or agent of any actual or potential customer of the Parties, in each case ((a) through (d)) for purposes of influencing any act or decision of such individual in his official
capacity, inducing such individual to do or omit to do any act in violation of the individual’s duty, inducing the individual to use the individual’s official influence with a government to affect or influence an act or decision of the
government, or to secure any improper advantage in order to assist in obtaining or retaining business, or where such payment, benefit or gift would constitute a violation of any Law, including the Foreign Corrupt Practices Act of 1977 (the
“FCPA”), the United Kingdom Bribery Act (the “UKBA”) or any Law enacted pursuant to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions Convention. If, at any
time during the term of this Agreement, either Party breaches its obligations under Section 7.7.1 or this Section 7.7.2, such Party shall immediately notify the other Party. 

7.7.3 During the term of this Agreement, each Party shall maintain true and accurate records: (a) documenting its interactions with
any government or Government or Public Official relating to its activities in connection with this Agreement; (ii) payments made by it to any Government or Public Official; and (iii) political contributions. In the event of a claim or
investigation, or an official request for a Party to cooperate with respect to any such claim or investigation, by a Regulatory Authority or other legal authority having jurisdiction over either Party of an alleged violation of the FCPA, UKBA or any
analogous Law in any other jurisdiction arising from any activities conducted by the other Party in connection with this Agreement, such other Party shall provide such Regulatory Authority or other legal authority having jurisdiction over the Party
with access to such other Party’s facilities, records (financial and otherwise) and supporting documentation, as reasonably requested by the Party or its agents in order to cooperate in connection with such claim or investigation. 

  
 43 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE 8 
 PAYMENTS 
 8.1 License Fees. Gilead shall pay MacroGenics a
non-refundable, non-creditable payment of Seven Million Five Hundred Thousand Dollars ($7,500,000) for each Licensed Program within *** after (a) with respect to the ***Licensed Program, the later of the Effective Date and
Gilead’s receipt of the corresponding invoice; and (b) with respect to the ***Licensed Program, the *** Licensed Program and the *** Licensed Program, the later of the Clearance Date for such Licensed Program and the
date of Gilead’s receipt of the corresponding invoice. Each such payment is referred to as a “License Fee”, and the maximum amount of License Fees payable hereunder shall be Thirty Million Dollars ($30,000,000). 

8.2 Preclinical Milestone Payments. Within *** after Gilead delivers to MacroGenics a Preclinical Milestone Payment Notice
with respect to any Licensed Program, Gilead shall pay MacroGenics a non-refundable, non-creditable payment (the “Preclinical Milestone Payment”) of: 
 (a) ***, Twenty Five Million Dollars ($25,000,000); 
 (b) ***, Twenty
Million Dollars ($20,000,000); 
 (c) ***, Twenty Million Dollars ($20,000,000); and 

(d) ***, Twenty Million Dollars ($20,000,000). 
 8.3 Development and Regulatory Milestones. 
 8.3.1 Development and
Regulatory Milestones. During the License Term for each Licensed Program, for each milestone set forth in this Section 8.3.1 achieved by Gilead or its Affiliates or Sublicensees with respect to such Licensed Program, Gilead shall pay the
corresponding non-refundable, non-creditable amount indicated for that milestone for the first instance of its achievement: 
  

					
	 Milestone Event
	  	 Column I
	  	 Column II

	 	  	 Payment for First

Licensed Product
	  	 Payment for First
 Subsequent Licensed

Product*

	         (a)        ***
	  	***	  	***
			
	         (b)        ***
	  	***	  	***

  
 44 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

					
	 Milestone Event
	  	 Column I
	  	 Column II

	 	  	 Payment for First

Licensed Product
	  	 Payment for First
 Subsequent Licensed

Product*

			
	         (c)        ***
	  	***	  	***
			
	         (d)        ***
	  	***	  	***
			
	         (e)        ***
	  	***	  	***
			
	         (f)        ***
	  	***	  	***
			
	         (g)        ***
	  	***	  	***
			
	         (h)        ***
	  	***	  	***
			
	         (i)        ***
	  	***	  	***
			
	         (j)        ***
	  	***	  	***
			
	         (k)        ***
	  	***	  	***

  

	*	For purposes of clarity, a Licensed Product that contains a Program DART other than the Program DART contained in the first Licensed Product with respect to which a
milestone payment set forth in Section 8.3.1 has been paid shall be deemed a subsequent Licensed Product. 

 In no event
shall the total of the amounts paid under Column I of this Section 8.3.1 exceed (i) ***. 
 In no event shall the total of the amounts paid
under Column II of this Section 8.3.1 exceed (i) *** 
 8.3.2 Milestone Payments. Gilead shall make the
milestone payments required by Section 8.3.1 in accordance with Section 8.3.4. If, with respect to any Program DART or Licensed Product, (i) an event described in clause (b) or (c) of Section 8.3.1 occurs before or
concurrently with another event described in a preceding clause of Section 8.3.1; (ii) an event described in clause (d), (e) or (f) of Section 8.3.1 occurs before or concurrently with an event described in clause (a),
(b) or (c) of Section 8.3.1; (iii) an event described in clause (g) of Section 8.3.1 occurs before or concurrently with an event described in clause (a), (b), (c) or (d) of Section 8.3.1; (iv) an
event described in clause (i) of Section 8.3.1 occurs before or concurrently with an event described in clause (a), (b), (c) or (e) of Section 8.3.1; or (v) an event described in clause (k) of Section 8.3.1
occurs before or concurrently with an event described in clause (a), (b), (c) or (f) of Section 8.3.1, then in each case ((i) through (v)) Gilead shall pay any unpaid milestone payment(s) described in such earlier clause(s) (under
Column I or Column II, as applicable) when the milestone payment described in such later clause(s) is paid. 

  
 45 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 8.3.3 Replacement Products. If Development of the first Program DART or Licensed
Product from a Licensed Program has been discontinued, then the achievement by a subsequent Program DART or Licensed Product from such Licensed Program of a milestone event not achieved by such substituted or discontinued first Licensed Product
shall be deemed to be achievement of the corresponding milestone event under Section 8.3.1 by the first Licensed Product entitling MacroGenics to the corresponding milestone payment under Section 8.3.1 Column I. By way of example, if a
first and second Licensed Product from a given Licensed Program have been Developed concurrently and the Development of such first Licensed Product is discontinued, such second Licensed Product shall be eligible for any milestone events under
Section 8.3.1 Column I not previously achieved by such first Licensed Product and, conversely, any milestone events under Section 8.3.1 Column I achieved by such first Licensed Product shall not be payable with respect to such second
Licensed Product. Further, any third Licensed Product from such Licensed Program that contains a Program DART other than the Program DART contained in the second Licensed Product shall be eligible for any milestone events under Section 8.3.1
Column II not previously achieved by such second Licensed Product. 
 8.3.4 Notification; Payment. Gilead shall promptly
notify MacroGenics in writing of the first achievement of each of the milestones under this Section 8.3 and the corresponding milestone payment shall be due within *** after receipt of the corresponding invoice from MacroGenics.

 8.4 Sales Milestones. 
 8.4.1 Sales Milestone Payments. During the License Term for each Licensed Program, Gilead shall make the non-refundable, non-creditable payments to MacroGenics set forth below upon the earliest
achievement of each of the corresponding milestone events by the first Licensed Product from such Licensed Program to achieve such milestone: 
  

			
	 Milestone Event
	  	Payment
		
	 (a) First occurrence of Annual Net Sales of a Licensed Product greater than *** Dollars (***) in a Calendar Year
	  	***
		
	 (b) First occurrence of Annual Net Sales of a Licensed Product greater than *** Dollars (***) in a Calendar Year
	  	***
		
	 (c) First occurrence of Annual Net Sales of a Licensed Product greater than *** Dollars (***) in a Calendar Year
	  	***
		
	 (d) First occurrence of Annual Net Sales of a Licensed Product greater than *** Dollars (***) in a Calendar Year
	  	***

  
 46 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 8.4.2 Payment of Sales Milestones. Gilead shall make the milestone payments required
by Section 8.4.1 in accordance with Section 8.7. If an event described in a clause in Section 8.4.1 occurs during the same Calendar Quarter as another event described in a preceding clause in Section 8.4.1, Gilead shall also pay
the milestone payment described in such earlier clause when the milestone payment described in such later clause is paid. By way of example, if, during any Calendar Quarter, Annual Net Sales for a Licensed Product from a given Licensed Program first
exceed the thresholds set forth in Sections 8.4.1(a) and (b), Gilead shall pay MacroGenics the milestone payments set forth in both Sections 8.4.1(a) and (b). 
 8.5 Royalties. 
 8.5.1 Annual Net Sales. Subject to
Section 8.5.4(c), for each Licensed Product in each Calendar Year during the Royalty Term, Gilead shall pay MacroGenics royalties on Annual Net Sales of such Licensed Product in the Gilead Territory in such Calendar Year at the following rates:

  

			
	 Annual Net Sales Threshold
	  	Royalty Rate
		
	 (a) On the first *** Dollars (***) in Annual Net Sales of such Licensed Product in such Calendar Year
	  	***
		
	 (b) On that portion of Annual Net Sales of such Licensed Product in such Calendar Year greater than *** Dollars (***) but less than or equal to ***
(***)
	  	***
		
	 (c) On that portion of Annual Net Sales of such Licensed Product in such Calendar Year greater than *** Dollars (***)
	  	***

 8.5.2 Net Receipts. Gilead shall pay MacroGenics twenty percent (20%) of all Net Receipts in
accordance with Section 8.7. 
 8.5.3 Diagnostics. If (a) Gilead or any of its Affiliates or Sublicensees
Commercializes in any country a Diagnostic and (b) Gilead or its Affiliates receive sales, royalty revenues or other consideration from such Commercialization, the Parties shall negotiate in good faith a reasonable royalty to be paid by Gilead
to MacroGenics with respect to such revenues, taking into consideration Gilead’s profit component, which royalty shall be consistent with industry standards for diagnostics but in any case shall not exceed the rates set forth in
Section 8.5.1. Notwithstanding anything in this Agreement to the contrary, if the Parties are unable to agree upon the royalty rate after exhausting the procedures set forth in Section 15.1, ***. 

8.5.4 Royalty Term. 
 (a) Gilead’s royalty obligations to MacroGenics under this Section 8.5 with respect to any Licensed Product in any country shall commence upon the First Commercial Sale of such Licensed Product
in such country and expire on a country-by-country basis on the later of: (i) ***(the “Royalty Term”)***. 

  
 47 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Royalties shall be payable only once with respect to the same unit of Licensed Product.
On a Licensed Product-by-Licensed Product and country-by-country basis, upon expiration of the Royalty Term for a Licensed Product in a country in the Gilead Territory, Gilead’s licenses and rights hereunder with respect to such Licensed
Product in such country shall continue in effect, but become fully paid-up, royalty-free, transferable (to the extent not transferrable previously), perpetual and irrevocable. 

(c) For any Calendar Quarter of the Royalty Term during which a Licensed Product is sold in a country in which one (1) or more
Third Parties sell in such country one or more Biosimilar Products, and such Biosimilar Products, collectively, have a *** or more market share of the aggregate market share of such Licensed Product and such Biosimilar Products (based on data
provided by IMS Health Incorporated, Fairfield, Connecticut) as measured on a units sold basis, or if such data is not available, the Parties shall agree upon a methodology for estimating the percentage of unit sales based market share of such
Biosimilar Products in such country), then, Gilead’s royalty obligations with respect to sales of such Licensed Product in such country during such Calendar Quarter shall be reduced by *** of the applicable rate set forth in
Section 8.5.1. The Parties shall mutually agree in good faith on an appropriate method of calculating the royalties payable by Gilead pursuant to this Section 8.5 in the event such circumstances arise. “Biosimilar Product”
means, with respect to a Licensed Product sold in a country, a product that: (i) is marketed by a Third Party that has not obtained the rights to such product as a Sublicensee or distributor of, or through any other contractual relationship
with, Gilead or any of its Affiliates; (ii) contains the same or highly similar active ingredient(s) as the applicable Licensed Product; and (iii) with respect to (x) the United States, has been licensed as a biosimilar or
interchangeable biological product by FDA pursuant to Section 351(k) of the Public Health Service Act (42 U.S.C. § 262(k)), as may be amended, or any subsequent or superseding law, statute or regulation, (y) the EU, has
been approved in reliance on the prior approval of a Licensed Product as a similar biological medicinal product by the European Union pursuant to Directive 2001/83/EC, as may be amended, or any subsequent or superseding law, statute or
regulation, and (z) any other country, has received analogous regulatory marketing approval in reliance on the prior approval of a Licensed Product from the applicable Regulatory Authority 

8.5.5 Third Party Offset. If, after the License Grant Date for any Licensed Program, Gilead or its applicable Affiliate or
Sublicensee: (a) is required, as reasonably determined by Gilead or its applicable Affiliate or Sublicensee, as the case may be, to obtain a license from any Third Party under any Patents controlled by such Third Party in order to make, have
made, use, sell, offer for sale or import a Program DART and/or a Licensed Product from such Licensed Program in any country in the Gilead Territory without infringing such Patents, and pursuant to such license is required to pay any amounts to such
Third Party (including any upfront, milestone or royalty payments) in any Calendar Year, or (b) is required by any court of competent jurisdiction, in connection with its infringement of any Patents controlled by a Third Party in any country in
the Gilead Territory with respect to a Program DART and/or Licensed Product from such Licensed Program, to pay any amounts to such Third Party (including any 

  
 48 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
lump sum or royalty payments) in any Calendar Year, then Gilead may deduct from the milestone payments and/or royalties (as elected by Gilead in its sole discretion) that would otherwise be due
to MacroGenics with respect to such Program DART or Licensed Product in such Calendar Year *** of the amount paid by Gilead or its applicable Affiliate or Sublicensee, as the case may be, to such Third Party with respect to such Program DART
or Licensed Product in such Calendar Year (where any such amounts paid by Gilead or its applicable Affiliate or Sublicensee to such Third Party shall be equitably allocated among all products of Gilead or its applicable Affiliate or Sublicensee, as
applicable, covered by such license or subject to such infringement); provided, however, that such deduction shall not reduce (A) the amount of milestones due to MacroGenics with respect to such Program DART or Licensed Product for such
Calendar Year to less than *** of the amount of milestones that otherwise would have become due with respect to such Program DART or Licensed Product for such Calendar Year or (B) the royalty rate paid by Gilead in respect of Annual Net
Sales of such Licensed Product in such Calendar Year to less than *** of Annual Net Sales of such Licensed Product in such Calendar Year, in each case ((A) and (B)) with any excess deduction carried over and applied to amounts due to
MacroGenics with respect to such Program DART or Licensed Product in subsequent Calendar Years. 
 8.6 Healthcare Reform
Tax. Notwithstanding anything herein to the contrary, for purposes of determining the sales milestones and royalties payable by Gilead under Sections 8.4 and 8.5, Gilead shall have the right to offset from Net Sales of Licensed Products sold in
the United States that portion of the annual fee paid by Gilead and its Affiliates to the United States Government pursuant to Section 9008 of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 (as may be amended)
reasonably attributable to Licensed Products, as determined in accordance with an equitable method as agreed in good faith by the Parties. 
 8.7 Reports; Payments. Within thirty (30) days after the end of each Calendar Quarter during which there are Net Sales or Net Receipts giving rise to a payment obligation under
Section 8.4 or 8.5, Gilead shall submit to MacroGenics a report identifying for each Licensed Product, the Net Sales and/or Net Receipts for such Licensed Product for each country in the Gilead Territory for such Calendar Quarter, the
calculation of royalties (including gross sales and all deductions taken from gross sales), and the royalties and the sales milestones payable to MacroGenics. Within fifteen (15) days of the delivery of each such report, Gilead shall pay to
MacroGenics all royalties and sales milestones payable by it under Sections 8.4 and 8.5. 
 8.8 Methods of Payments.
All payments due under this Agreement shall be paid in Dollars by wire transfer to a bank in the United States designated in writing by MacroGenics. 
 8.9 Late Payments. Any amount owed by Gilead to MacroGenics under this Agreement that is not paid on or before the date such payment is due as set forth herein shall bear interest at a rate per
annum equal to the one month USD-LIBOR as quoted on Bloomberg (or if it no longer exists, a similarly authoritative source) plus *** calculated on a daily basis, or, if lower, the highest rate permitted by applicable Law. 

  
 49 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 8.10 Taxes. All payments due and payable under this Agreement will be made without
any deduction, unless such deduction or withholding tax is required by applicable Laws. If the paying Party is so required to deduct or withhold, such Party shall (a) promptly notify the other Party of such requirement; (b) pay to the
relevant authorities the full amount required to be deducted or withheld promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed against the other Party; and
(c) promptly forward to the other Party an official receipt (or certified copy), or other documentation reasonably acceptable to the other Party evidencing such payment to such authorities. Notwithstanding the foregoing, if as a result of
(i) the assignment of this Agreement by Gilead to an Affiliate or a Third Party outside of the United States or (ii) the exercise by Gilead of its rights under this Agreement through an Affiliate or Third Party outside the United States,
withholding tax in excess of the withholding tax amount that would have been payable in the absence of such assignment or exercise of rights becomes payable with respect to any amount due to MacroGenics under this Agreement, then Gilead shall pay to
MacroGenics such additional amounts as are necessary so that MacroGenics receives the amounts that MacroGenics would have received if such payments were not subject to such withholding tax as a consequence of such assignment or exercise. 

8.11 Books and Records; Audit Rights. Each Party (the “Audited Party”) shall keep (and, in the case of Gilead,
shall cause its Affiliates and Sublicensees to keep) complete, true and accurate books and records in accordance with its Accounting Standards in sufficient detail for the other Party (the “Auditing Party”) (a) with respect to
Gilead as the Audited Party, to determine the payments due and (b) with respect to MacroGenics as the Audited Party, to determine costs incurred in the conduct of Research activities under this Agreement. Each Auditing Party shall have the
right, *** at its own expense, to have an independent, certified public accounting firm of nationally recognized standing, selected by the Auditing Party and reasonably acceptable to the Audited Party, review any such records of the Audited
Party in the location(s) where such records are maintained by the Audited Party upon reasonable notice (which shall be no less than thirty (30) days prior notice) and during regular business hours and under obligations of confidence, for the
sole purpose of verifying the accuracy of the amounts paid under this Agreement within a ***year period preceding the date of the request for review. The report of such accounting firm shall be limited to a certificate stating whether any
report made or invoice or payment submitted by the Audited Party during such period is accurate or inaccurate and the actual amounts of Research costs and the amount of any Net Sales, milestone or royalty discrepancy. No other information shall be
provided to the Auditing Party. The Audited Party shall receive a copy of each such report concurrently with receipt by the Auditing Party. Should such inspection lead to the discovery of a discrepancy to the Auditing Party’s detriment, the
Audited Party shall pay the amount of the discrepancy within thirty (30) days after its receipt from the accounting firm of the certificate showing the amount of the discrepancy. The Auditing Party shall pay the full cost of the review unless
the underpayment of milestones or royalties is greater than five percent (5%), or the overpayment of Research costs is greater than five percent (5%), of the amount due for the applicable period, in which case the Audited Party shall pay the
reasonable costs charged by such accounting firm for such review. 

  
 50 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE 9 
 OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS 
 9.1 Inventorship.
Subject to Section 9.2, inventorship for patentable inventions conceived or reduced to practice during the course of the performance of activities pursuant to this Agreement shall be determined in accordance with the patent laws of the
jurisdiction where the invention was invented. 
 9.2 Ownership. Subject to the licenses and rights granted to Gilead
under this Agreement, MacroGenics shall own the entire right, title and interest in and to all inventions and discoveries (and Patents claiming patentable inventions therein) first made or discovered solely by employees or consultants of MacroGenics
or acquired solely by MacroGenics in the course of Research, Development, Manufacture or Commercialization of Program DARTs and/or Licensed Products. Subject to the licenses and rights granted to MacroGenics under this Agreement, Gilead shall own
the entire right, title and interest in and to all inventions and discoveries (and Patents claiming patentable inventions therein) first made or discovered solely by employees or consultants of Gilead or acquired solely by Gilead in the course of
Research, Development, Manufacture or Commercialization of Program DARTs and/or Licensed Products. The Parties shall jointly own any Joint IP. Subject to the terms and conditions of this Agreement, each Party shall retain its rights to practice its
undivided, one-half interest in any Joint IP without the consent of and without accounting to the other. As between the Parties, the issue as to whether any invention or discovery is jointly made, and the rights of the Parties as joint owners, shall
be determined in accordance with this Agreement and the applicable substantive Laws of the United States, irrespective of the country in which such invention or discovery is made or discovered. 

9.3 Prosecution and Maintenance of Patents. 
 9.3.1 MacroGenics Rights. 
 (a) MacroGenics shall have (i) the sole
right, at MacroGenics’ discretion (subject to the remainder of this Section 9.3.1), to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant
proceedings) (x) any Platform Patents throughout the world and (y) any MacroGenics Patents that are Other Patents, in the MacroGenics Territory; and (ii) the first right, at MacroGenics’ discretion (subject to the remainder of
this Section 9.3.1), to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant proceedings) any MacroGenics Patents that are Other Patents, in the
Gilead Territory. 
 (b) Gilead shall reimburse MacroGenics for the Out-of-Pocket Costs of MacroGenics in the filing,
prosecution and maintenance of any Patents being filed, prosecuted or maintained by MacroGenics pursuant to Section 9.3.1(a) in the Gilead Territory; provided that if pursuant to MacroGenics’ agreement with any other Third Party licensee
MacroGenics is reimbursed by such licensee for the Out-of-Pocket Costs of MacroGenics in the filing, prosecution and maintenance of any such Patents, Gilead and such licensee(s) shall, on a
Patent-

  
 51 

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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
by-Patent basis, share in such Out-of-Pocket Costs with each party’s percentage share determined by dividing (i) one, by (ii) one plus the number of Third Parties (if any) that
is(are) required to reimburse MacroGenics for such Out-of-Pocket Costs. With respect to any Patent owned by Gilead or any Joint Patent that is being filed, prosecuted or maintained by MacroGenics pursuant to Section 9.3.1(a) in any country in
the Gilead Territory, Gilead shall have the right, in its sole discretion, to assign such Patent in such country (or, in the case of a Joint Patent, to assign Gilead’s interest in such Joint Patent in such country) to MacroGenics or to cause
the abandonment of such Patent in such country (only in the case of a Patent owned by Gilead), as MacroGenics may elect, and thereby to terminate Gilead’s obligation to reimburse such costs incurred thereafter, upon *** to MacroGenics. With
respect to any Patent (other than any Joint Patent) under which Gilead has a license hereunder that is being filed, prosecuted or maintained by MacroGenics pursuant to Section 9.3.1(a) in any country in the Gilead Territory, Gilead shall have
the right, in its sole discretion, to terminate such license, and thereby to terminate Gilead’s obligation to reimburse such costs incurred thereafter, upon thirty (30) days’ written notice to MacroGenics, and following such***,
Gilead shall have no rights hereunder with respect to such Patent in such country. 
 (c) MacroGenics shall use reasonable
efforts to ensure that any Patents being filed, prosecuted or maintained by MacroGenics pursuant to Section 9.3.1(a) (excluding any Patents that are being filed, prosecuted or maintained by MacroGenics as a result of the operation of
Section 9.3.2(c)) are not Mixed Patents. If any such Patent is a Mixed Patent, then such Patent shall be deemed a Product Patent (and not a Platform Patent) for all purposes under this Agreement (including this Section 9.3) for so long as
such Patent ***. 
 (d) The Parties shall work together in good faith to agree upon a strategy for the prosecution of
any Patents being prosecuted by MacroGenics pursuant to Section 9.3.1(a) in the Gilead Territory, including the list of countries in the Gilead Territory in which such Patents will be filed; provided, however, that (subject to
Section 9.3.1(e)) MacroGenics shall have the final right to make such determinations. In addition, MacroGenics shall provide to Gilead such other information related to prosecution of any Patents being prosecuted by MacroGenics pursuant to
Section 9.3.1(a) as Gilead may from time to time reasonably request to allow Gilead to track prosecution and maintenance of such Patents and shall consider in good faith any comments that Gilead may provide with respect to such matters. Without
limiting the foregoing, MacroGenics shall keep Gilead informed as to the identity of its patent agents and attorneys and notify Gilead of any changes thereto and consider in good faith any comments that Gilead may provide with respect to the
selection and engagement of patent agents and attorneys for the prosecution and maintenance of such Patents. 
 (e) MacroGenics
shall give Gilead written notice reasonably in advance of any decision by MacroGenics not to file an application for or to abandon the prosecution of or otherwise not maintain or extend any Patent described in clause (ii) of
Section 9.3.1(a) in any applicable country. Upon receiving such notice, Gilead shall have the right, at its own cost, to file, prosecute, maintain and extend, as the case may be, such Patent, in Gilead’s name, in such country; provided,
however, that Gilead shall not exercise such right without the prior written consent of MacroGenics (which MacroGenics may withhold in its sole discretion) if MacroGenics’ decision not to file an application for or to abandon the prosecution of
or otherwise not maintain or extend such Patent is made for strategic business reasons (e.g., in countries with compulsory licensing policies). 

  
 52 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 9.3.2 Gilead Rights. 

(a) Gilead shall have (i) the sole right, at Gilead’s discretion (subject to the remainder of this Section 9.3.2), to
file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant proceedings) any Gilead Collaboration Patents that are Other Patents, in the Gilead Territory; and
(ii) the first right, at Gilead’s discretion (subject to the remainder of this Section 9.3.2), to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other
post-grant proceedings) (s) any Gilead Collaboration Patents that are Product Patents, in the Gilead Territory, (t) any Gilead Collaboration Patents that are Product Patents, in the MacroGenics Territory, (u) any Gilead Collaboration
Patents that are Other Patents, in the MacroGenics Territory, (v) any MacroGenics Patents that are Product Patents, in the Gilead Territory, (w) any MacroGenics Patents that are Product Patents, in the MacroGenics Territory, (x) any
Joint Patents that are Product Patents, in the Gilead Territory, (y) any Joint Patents that are Product Patents, in the MacroGenics Territory and (z) any Joint Patents that are Other Patents, throughout the world. 

(b) MacroGenics shall reimburse Gilead for the Out-of-Pocket Costs of Gilead in the filing, prosecution and maintenance of any Patents
being filed, prosecuted or maintained by Gilead pursuant to Section 9.3.2(a) in the MacroGenics Territory. With respect to any Patent owned by MacroGenics or any Joint Patent that is being filed, prosecuted or maintained by Gilead pursuant to
Section 9.3.2(a) in any country in the MacroGenics Territory, MacroGenics shall have the right, in its sole discretion, to assign such Patent in such country (or, in case of a Joint Patent, to assign MacroGenics’ interest in such Joint
Patent in such country) to Gilead or to cause the abandonment of such Patent in such country (only in the case of a Patent owned by MacroGenics), at Gilead’s election, and thereby to terminate MacroGenics’ obligation to reimburse such
costs incurred thereafter, upon *** written notice to Gilead. With respect to any Patent (other than any Joint Patent) under which MacroGenics has a license hereunder that is being filed, prosecuted or maintained by Gilead pursuant to
Section 9.3.2(a) in any country in the MacroGenics Territory, MacroGenics shall have the right, in its sole discretion, to terminate such license and thereby to terminate MacroGenics’ obligation to reimburse such costs incurred thereafter,
upon *** written notice to Gilead, and following such thirty (30) day period, MacroGenics shall have no rights hereunder with respect to such Patent in such country. 

(c) Gilead shall use reasonable efforts to ensure that any Patents being filed, prosecuted or maintained by Gilead pursuant to
Section 9.3.2(a) (excluding any Patents that are being filed, prosecuted or maintained by Gilead as a result of the operation of Section 9.3.1(c)) are not Mixed Patents. If any such Patent is a Mixed Patent, then such Patent shall be
deemed a Platform Patent (and not a Product Patent) for all purposes under this Agreement (including this Section 9.3) for so long as such Patent contains at least one Platform Claim. 

(d) The Parties shall work together in good faith to agree upon a strategy for the prosecution of (i) any Patents being prosecuted
by Gilead pursuant to Section 

  
 53 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
9.3.2(a) in the MacroGenics Territory; (ii) any MacroGenics Patents that are Product Patents, in the Gilead Territory; and (iii) any Joint Patents being prosecuted by Gilead pursuant to
Section 9.3.2(a), including the list of countries in which such Patents will be filed; provided, however, that (subject to Section 9.3.2(e)) Gilead shall have the final right to make such determinations. Gilead shall provide MacroGenics
with a draft of any prosecution filing related to any such Patents being prosecuted by Gilead pursuant to Section 9.3.2(a) to be submitted to any patent office in the applicable Territory at least thirty (30) days in advance of submission
and shall provide MacroGenics an opportunity to provide comments on and make requests of Gilead concerning such filing and shall consider in good faith any comments or requests regarding such filing that MacroGenics may timely provide. In addition,
Gilead shall provide to MacroGenics such other information related to prosecution of any Patents being prosecuted by Gilead pursuant to Section 9.3.2(a) as MacroGenics may from time to time reasonably request to allow MacroGenics to track
prosecution and maintenance of such Patents and shall consider in good faith any comments that MacroGenics may provide with respect to such matters. Without limiting the foregoing, Gilead shall keep MacroGenics informed as to the identity of its
patent agents and attorneys and notify MacroGenics of any changes thereto and consider in good faith any comments that MacroGenics may provide with respect to the selection and engagement of patent agents and attorneys for the prosecution and
maintenance of such Patents. 
 (e) Gilead shall give MacroGenics written notice reasonably in advance of any decision by
Gilead not to file an application for or to abandon the prosecution of or otherwise not maintain or extend any Patent described in clause (ii) of Section 9.3.2(a) in any applicable country. Upon receiving such notice, MacroGenics shall
have the right, at its own cost, to file, prosecute, maintain and extend, as the case may be, such Patent, in MacroGenics’ name, in such country; provided, however, that MacroGenics shall not exercise such right (A) with respect to
(1) any Patent described in clause (ii)(s) or (ii)(u) of Section 9.3.2(a) in any country or (2) any Patent described in clause (ii)(v) or (ii)(x) of Section 9.3.2(a) in any country in the Access Territory, in each case ((1) and
(2)) without the prior written consent of Gilead (which Gilead may withhold in its sole discretion) if Gilead’s decision not to file an application for or to abandon the prosecution of or otherwise not maintain or extend such Patent is
made for strategic business reasons (e.g., in countries with compulsory licensing policies), or (B) with respect to any Patent described in clause (ii)(v) or (ii)(x) of Section 9.3.2(a) in any country outside of the Access Territory, if
there is at least one MacroGenics Patent or Joint Patent other than such Patent in such country that Covers the Program DART or Licensed Product Covered by such Patent. If MacroGenics exercises its rights under this Section 9.3.2(e) with
respect to any Joint Patent in any country, Gilead shall (I) assign its entire right, title and interest in such Joint Product Patent in such country to MacroGenics, (II) use reasonable efforts to make its authorized attorneys, agents or
representatives available to MacroGenics and to assist MacroGenics in obtaining and maintaining such patent protection, and (III) sign or use reasonable efforts to have signed all legal documents necessary to file and prosecute such Joint Patent or
to obtain or maintain such Joint Product Patent. 
 9.4 Third Party Infringement. 

9.4.1 Notice. Each Party shall promptly report in writing to the other Party any known or suspected (a) infringement of any
of the MacroGenics Patents, Gilead Collaboration 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Patents or Joint Patents; (b) unauthorized use or misappropriation of any of the MacroGenics Know-How, Gilead Collaboration Know-How or Know-How included in the Joint IP of which such Party
becomes aware; or (c) notification under the Biologics Price Competition and Innovation Act of 2009, as amended, or similar law, from a biosimilar applicant arising from the filing of an application for the Regulatory Approval of a product
intending to show that such product is biosimilar to any Licensed Product that is a reference product for which a claim of infringement of any of the MacroGenics Patents, Joint Patents or Gilead Collaboration Patents by the manufacture or sale of
such product could reasonably be asserted, and shall provide the other Party with all available evidence regarding such known or suspected infringement or unauthorized use. 
 9.4.2 Enforcement Rights. Subject to the requirements and limitations of any MacroGenics Third Party Agreements with respect to the enforcement of Patents, including any rights of, and timeframes
for, such Third Party licensors to comment on and review any filings or materials related thereto, the Parties agree: 
 (a)
Gilead shall have (i) the sole right, but not the obligation, to initiate a lawsuit or take other reasonable action to enforce any Gilead Collaboration Patents that are Other Patents, in the Gilead Territory and (ii) the first right, but
not the obligation, to initiate a lawsuit or take other reasonable action to enforce (t) any Gilead Collaboration Patents that are Product Patents, in the Gilead Territory, (u) any Gilead Collaboration Patents that are Platform Patents,
with respect to Competitive Infringement in the Gilead Territory, (v) any Gilead Collaboration Patents that are Other Patents, in the MacroGenics Territory, (w) any MacroGenics Patents that are Product Patents, in the Gilead Territory,
(x) any Joint Patents that are Product Patents, in the Gilead Territory, (y) any Joint Patents that are Platform Patents, with respect to Competitive Infringement in the Gilead Territory and (z) any Joint Patents that are Other
Patents, in the Gilead Territory. Notwithstanding the foregoing sentence, Gilead shall not initiate any such lawsuit or take such other action with respect to any matter described in clause (ii) above without first consulting with MacroGenics
and giving good faith consideration to any reasonable objection from MacroGenics regarding Gilead’s proposed course of action, and Gilead shall not initiate any such lawsuit or take such other action with respect to any matter described in
clause (ii)(u) or (ii)(y) above without the prior written consent of MacroGenics, which MacroGenics may withhold in its sole discretion. MacroGenics shall cooperate in the prosecution of any suit under this Section 9.4.2(a) as may be reasonably
requested by Gilead (including joining such suit as a plaintiff if Gilead is unable to initiate or prosecute such action solely in its own name); provided, however, that Gilead shall promptly reimburse all Out-of-Pocket Costs (including reasonable
counsel fees and expenses) of MacroGenics in connection with such cooperation. In connection with any such proceeding, Gilead shall not enter into any settlement admitting the invalidity of, or otherwise impairing MacroGenics’ rights in,
MacroGenics IP or Joint IP without the prior written consent of MacroGenics. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 (b) Any recoveries resulting from such an action brought by Gilead in accordance with
Section 9.4.2(a) shall be applied as follows: 
 (i) First, to reimburse each Party for all Out-of-Pocket Costs in
connection with such proceeding (on a pro rata basis, based on each Party’s respective litigation costs, to the extent the recovery was less than all such litigation costs); and 

(ii) Second, the remainder of such recovery shall be retained by Gilead, provided that (x) to the extent the award to Gilead is
based on lost profits with respect to a Licensed Product in the Gilead Territory, MacroGenics shall receive an amount equal to the royalty that would be payable, pursuant to Section 8.5, on the imputed amount of Net Sales of such Licensed
Product(s) in the country(ies) in the Gilead Territory where such infringement occurred, and (y) to the extent the award reflects the amount of reasonable royalty payments due to Gilead with respect to a Licensed Product in the Gilead Territory
(excluding, for clarity, any award to the extent described in clause (x) above), such award shall be considered as Net Sales subject to the applicable royalty in accordance to Section 8.5. 

(c) MacroGenics shall have (i) the sole right, but not the obligation, to initiate a lawsuit or take other reasonable action to
enforce (v) any Gilead Collaboration Patents that are Platform Patents, other than with respect to Competitive Infringement, throughout the world, (w) any MacroGenics Patents that are Platform Patents, throughout the world, (x) any
MacroGenics Patents that are Other Patents, in the MacroGenics Territory, (y) any Joint Patents that are Platform Patents, with respect to Competitive Infringement in the MacroGenics Territory and (z) any Joint Patents that are Platform
Patents, other than with respect to Competitive Infringement, throughout the world; and (ii) the first right, but not the obligation, to initiate a lawsuit or take other reasonable action to enforce (u) any Gilead Collaboration Patents
that are Product Patents, in the MacroGenics Territory, (v) any Gilead Collaboration Patents that are Platform Patents, with respect to Competitive Infringement in the MacroGenics Territory, (w) any MacroGenics Patents that are Product
Patents, in the MacroGenics Territory, (x) any MacroGenics Patents that are Other Patents, in the Gilead Territory, (y) any Joint Patents that are Product Patents, in the MacroGenics Territory and (z) any Joint Patents that are Other
Patents, in the MacroGenics Territory. Notwithstanding the foregoing sentence, MacroGenics shall not initiate any such lawsuit or take such other action with respect to any matter described in clause (ii) above without first consulting with
Gilead and giving good faith consideration to any reasonable objection from Gilead regarding MacroGenics’ proposed course of action. Gilead shall cooperate in the prosecution of any suit under this Section 9.4.2(c) as may be reasonably
requested by MacroGenics (including joining such suit as a plaintiff if MacroGenics is unable to initiate or prosecute such action solely in its own name); provided, however, that MacroGenics shall promptly reimburse all Out-of-Pocket Costs
(including reasonable counsel fees and expenses) of Gilead in connection with such cooperation. In connection with any such proceeding, MacroGenics shall not enter into any settlement admitting the invalidity of, or otherwise impairing Gilead’s
rights in any Gilead Collaboration IP or Joint IP without the prior written consent of Gilead. 
 (d) With respect to any
lawsuit initiated or other action taken by MacroGenics under clauses (ii)(u), (ii)(w) or (ii)(y) of Section 9.4.2(c), (i) MacroGenics shall keep Gilead reasonably informed of the status of such lawsuit or action; (ii) without limiting
clause (i), MacroGenics shall provide Gilead with copies of any court filings or other material documents or correspondence received from any Third Party in connection with such lawsuit or 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
action promptly after such filings or documents or correspondence are received by MacroGenics; (iii) MacroGenics shall consult with Gilead with respect to such lawsuit or action and consider
any comments from Gilead with respect to such lawsuit or action in good faith; and (iv) without limiting clause (iii), MacroGenics shall provide Gilead with drafts of any court filings or other material documents or correspondence to be filed
or delivered by MacroGenics prior to the date of filing or delivery such that Gilead has a reasonable opportunity to review and provide comments, and to the extent Gilead provides comments thereon promptly and in sufficient time to allow MacroGenics
to meet applicable filing requirements, MacroGenics shall consider such comments in good faith. 
 (e) Any recoveries resulting
from such an action brought by MacroGenics in accordance with Section 9.4.2(c) shall be applied as follows: 
 (i) First,
to reimburse each Party for all Out-of-Pocket Costs in connection with such proceeding (excluding any costs incurred by Gilead in the exercise of its rights under Section 9.4.2(d)) (on a pro rata basis, based on each Party’s respective
litigation costs, to the extent the recovery was less than all such litigation costs); and 
 (ii) Second, (x) to the
extent the award is based on lost profits with respect to a Licensed Product in the Gilead Territory, any remainder of such recovery shall be retained by Gilead, provided that MacroGenics shall receive an amount equal to the royalty that would be
payable, pursuant to Section 8.5, on the imputed amount of Net Sales of such Licensed Product(s) in the country(ies) in the Gilead Territory where such infringement occurred, (y) to the extent the award reflects the amount of reasonable
royalty payments with respect to a Licensed Product in the Gilead Territory (excluding, for clarity, any award to the extent described in clause (x) above), any remainder of such recovery shall be retained by Gilead, provided that such award
shall be considered as Net Sales subject to the applicable royalty in accordance to Section 8.5, and (z) to the extent the award is not described in clauses (x) or (y) above, any remainder of such recovery shall be retained by
MacroGenics. 
 (f) If Gilead in good faith does not intend to initiate a lawsuit or take other reasonable action with respect
to any matter described in clause (ii) of Section 9.4.2(a), then Gilead shall notify MacroGenics thereof (i) if there is no time limit for the filing of such action, within sixty (60) days following the notice of alleged
infringement or following a biosimilar applicant’s failure to act or (ii) if there is a time limit for the filing of such action (including those set forth in applicable Laws) within *** before the time limit, and upon receipt of
such notice MacroGenics shall have the right, but not the obligation, to initiate such lawsuit or take such other action, after providing *** in the event there is a time limit) notice to Gilead and giving good faith consideration to
Gilead’s reason(s) for not initiating a lawsuit or taking other action; provided, however, that MacroGenics shall not initiate such a lawsuit or take such other action with respect to any matter described in clause (ii)(t), (ii)(w) or (ii)(x)
of Section 9.4.2(a) without the prior written consent of Gilead (which Gilead may withhold in its sole discretion) if Gilead’s decision not to exercise its first right with respect thereto was made for strategic business reasons. Gilead
shall cooperate in the prosecution of any suit initiated by MacroGenics to the extent permitted by the prior sentence as may be reasonably requested by MacroGenics (including joining such suit as a plaintiff if MacroGenics is unable to initiate or
prosecute such 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
action solely in its own name); provided, however, that MacroGenics shall promptly reimburse all Out-of-Pocket Costs (including reasonable counsel fees and expenses) of Gilead in connection with
such cooperation. Any recoveries resulting from such an action brought by MacroGenics in accordance with this Section 9.4.2(f) will be retained by MacroGenics after payment of each Party’s costs and expenses. 

(g) If MacroGenics in good faith does not intend to initiate a lawsuit or take other reasonable action with respect to any matter
described in clause (ii) of Section 9.4.2(c), then MacroGenics shall notify Gilead thereof (i) if there is no time limit for the filing of such action, *** following the notice of alleged infringement or following a biosimilar
applicant’s failure to act or (ii) if there is a time limit for the filing of such action (including those set forth in applicable Laws) within *** before the time limit, and upon receipt of such notice Gilead shall have the right,
but not the obligation, to initiate such lawsuit or take such other action, after providing *** in the event there is a time limit) notice to MacroGenics and giving good faith consideration to MacroGenics’ reason(s) for not initiating a
lawsuit or taking other action; provided, however, that Gilead shall not initiate such a lawsuit or take such other action with respect to any matter described in clause (ii)(w) of Section 9.4.2(c) without the prior written consent of
MacroGenics (which MacroGenics may withhold in its sole discretion) if MacroGenics’ decision not to exercise its first right with respect thereto was made for strategic business reasons. MacroGenics shall cooperate in the prosecution of such
suit as may be reasonably requested by Gilead (including joining such suit as a plaintiff if Gilead is unable to initiate or prosecute such action solely in its own name); provided, however, that Gilead shall promptly reimburse all Out-of-Pocket
Costs (including reasonable counsel fees and expenses) of MacroGenics in connection with such cooperation. Any recoveries resulting from such an action brought by Gilead in accordance with this Section 9.4.2(g) will be retained by Gilead after
payment of each Party’s costs and expenses. 
 9.4.3 Conduct of Certain Actions; Costs. The Party initiating legal
action shall have the sole and exclusive right to select counsel for any suit initiated by it pursuant to Section 9.4.2 (the “Initiating Party”). Unless otherwise expressly provided, the Initiating Party shall bear its own
out-of-pocket costs incurred in any such legal action, including the fees and expenses of the counsel selected by it. The other Party shall have the right to participate and be represented in any such legal action (in cases where such other Party
has standing) by its own counsel at its own expense. 
 9.5 Patent Invalidity Claim. Each Party shall promptly notify the
other in the event of any legal action (excluding any actions covered by Section 9.3) by any Third Party with respect to the validity of a Joint Patent, MacroGenics Patent or Gilead Collaboration Patent of which it becomes aware. With respect
to any such action: 
 9.5.1 Gilead shall have (i) the sole right, but not the obligation, at its expense, to defend
against any such action relating to any Gilead Collaboration Patents that are Other Patents, in the Gilead Territory, and (ii) the first right, but not the obligation, at its expense, to defend against any such action relating to (v) any
Gilead Collaboration Patents that are Product Patents, in the Gilead Territory, (w) any Gilead Collaboration Patents that are Other Patents, in the MacroGenics Territory, (x) any MacroGenics Patents that are Product Patents, in the Gilead

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
Territory, (y) any Joint Patents that are Product Patents, in the Gilead Territory and (z) any Joint Patents that are Other Patents, in the Gilead Territory. If Gilead does not defend
against any such action described in clause (ii) above, then MacroGenics shall have the right, but not the obligation, to defend such action at MacroGenics’ expense; provided, however, that MacroGenics shall not defend against any such
action described in clause (ii)(v), (ii)(x) or (ii)(y) above without the prior written consent of Gilead (which Gilead may withhold in its sole discretion) if Gilead’s decision not to exercise its first right with respect thereto was made for
strategic business reasons. 
 9.5.2 MacroGenics shall have (i) the sole right, but not the obligation, at its expense, to
defend against any such action relating to (x) any Platform Patents throughout the world and (y) any MacroGenics Patents that are Other Patents, in the MacroGenics Territory, and (ii) the first right, but not the obligation, at its
expense, to defend against any such action relating to (v) any Gilead Collaboration Patents that are Product Patents, in the MacroGenics Territory, (w) any MacroGenics Patents that are Product Patents, in the MacroGenics Territory,
(x) any MacroGenics Patents that are Other Patents, in the Gilead Territory, (y) any Joint Patents that are Product Patents, in the MacroGenics Territory and (z) any Joint Patents that are Other Patents, in the MacroGenics Territory.
If MacroGenics does not defend against any such action described in clause (ii) above, then Gilead shall have the right, but not the obligation, to defend such action at Gilead’s expense. In addition, with respect to any such action
described in clauses (ii)(v), (ii)(w) or (ii)(y) above, (A) to the extent permitted or required by applicable Law, Gilead shall have the right to participate and be represented in such action by its own counsel at its own expense;
(B) MacroGenics shall keep Gilead reasonably informed of the status of such action; (C) without limiting clause (B), MacroGenics shall provide Gilead with copies of any court filings or other material documents or correspondence received
from any Third Party in connection with such action promptly after such filings or documents or correspondence are received by MacroGenics; (D) MacroGenics shall consult with Gilead with respect to such action and consider any comments from
Gilead with respect to such action in good faith; and (E) without limiting clause (D), MacroGenics shall provide Gilead with drafts of any court filings or other material documents or correspondence to be filed or delivered by MacroGenics prior
to the date of filing or delivery such that Gilead has a reasonable opportunity to review and provide comments, and to the extent Gilead provides comments thereon promptly and in sufficient time to allow MacroGenics to meet applicable filing
requirements, MacroGenics shall consider such comments in good faith. 
 9.6 Patent Term Extensions. The Parties shall
cooperate with each other in obtaining patent term extensions or supplemental protection certificates or their equivalents in any country, where applicable to Joint Patents, MacroGenics Patents and Gilead Collaboration Patents. 

9.7 Patent Marking. Each Party shall comply with the patent marking statutes in each country in which a Licensed Product is sold
by such Party, its Affiliates and/or its Sublicensees. 
 9.8 Joint Research Agreement. This Agreement shall be
understood to be a joint research agreement under 35 U.S.C. § 103(c)(3) entered into for the purpose of Researching and Developing Program DARTs and Licensed Products. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 ARTICLE 10 
 CONFIDENTIALITY 
 10.1 Confidentiality; Exceptions. Except to
the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that the receiving Party (the “Receiving Party”) shall keep confidential and shall not publish or otherwise disclose or use for any
purpose other than as provided for in this Agreement any Know-How in any form (written, oral, photographic, electronic, magnetic, or otherwise) that is disclosed to the Receiving Party by the other Party (the “Disclosing Party”)
directly, or indirectly in the course of the Receiving Party’s performing its obligations or exercising its rights under this Agreement (collectively, “Confidential Information”). Notwithstanding anything to the contrary in
this Agreement, (a) during the Agreement Term (except as provided in Sections 13.7.1(b) and 13.7.2(b)), any Know-How of one Party (excluding Know-How comprising the Joint IP) that (i) is developed or generated pursuant to this Agreement
and exclusively licensed to the other Party pursuant to Section 4.1 or 4.2, as applicable, and (ii) relates to aspects of the structure or properties (including functionality) of any Program DART or Licensed Product that are specific to
Program DARTs or Licensed Products or relates specifically to the Manufacture of Program DARTs or Licensed Products shall be deemed to be the Confidential Information of each Party; (b) any Know-How comprising the Joint IP (excluding any
Platform IP) shall be deemed to be the Confidential Information of each Party; and (c) subject to Section 10.3, the terms of this Agreement shall be deemed to be the Confidential Information of each Party. Notwithstanding the foregoing,
the restrictions set forth in the first sentence of this Section 10.1 shall not apply to Confidential Information of the Disclosing Party to the extent that it can be established by the Receiving Party that such Confidential Information:

 10.1.1 was in the lawful knowledge and possession of the Receiving Party prior to the time it was disclosed to, or learned
by, the Receiving Party, or was otherwise developed independently by the Receiving Party, as evidenced by written records kept in the ordinary course of business, or other documentary proof of actual use by the Receiving Party; 

10.1.2 was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party;

 10.1.3 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; or 
 10.1.4 was disclosed to the Receiving
Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing Party not to disclose such information to others. 
 10.2 Authorized Disclosure. Except as expressly provided otherwise in this Agreement, a Receiving Party may use and disclose Confidential Information of the Disclosing Party as follows: 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 10.2.1 under appropriate confidentiality provisions similar to those in this Agreement, in
connection with the performance of its obligations or exercise of rights expressly granted or reserved in this Agreement, including (subject to any applicable restrictions set forth in any other provisions of this Agreement, including
Section 10.2.4) conducting activities with respect to DARTs and products other than Program DARTs or Licensed Products; provided, however, that the Receiving Party shall remain responsible for any violation of such confidentiality
provisions by any Person receiving such Confidential Information; 
 10.2.2 to the extent such disclosure is reasonably
necessary in filing or prosecuting patent and copyright applications, prosecuting or defending litigation, complying with applicable governmental regulations (including the rules and regulations of any stock exchange or NASDAQ), preparing and
submitting filings to Regulatory Authorities or as otherwise required by Law; provided, however, that if a Receiving Party is required by Law to make any such disclosure of a Disclosing Party’s Confidential Information (other than a disclosure
to a Regulatory Authority in a filing required by Law) it will give reasonable advance notice to the Disclosing Party of such disclosure requirement and shall furnish only that portion of the Disclosing Party’s Confidential Information that the
Receiving Party is legally required to furnish; 
 10.2.3 in communications with existing or bona fide prospective acquirers,
merger partners, lenders or investors, and consultants and advisors of the Receiving Party in connection with transactions or bona fide prospective transactions with the foregoing, in each case on a need to know basis and under appropriate
confidentiality provisions substantially equivalent to those of this Agreement; provided, however, that the Receiving Party shall remain responsible for any violation of such confidentiality provisions by any Person receiving such Confidential
Information; 
 10.2.4 in communications with existing or bona fide prospective licensees, sublicensees or collaborators, and
consultants and advisors of the Receiving Party in connection with transactions or bona fide prospective transactions with the foregoing, in each case on a need to know basis and under appropriate confidentiality provisions substantially equivalent
to those of this Agreement; provided, however, that (a) the Receiving Party shall remain responsible for any violation of such confidentiality provisions by any Person receiving such Confidential Information; (b) MacroGenics shall
not disclose the terms of this Agreement to any such licensee, sublicensee or collaborator without Gilead’s prior written consent, except that MacroGenics may disclose the terms of this Agreement to the extent they relate specifically to the
***Licensed Program, solely as reasonably necessary in connection with such transactions and after redacting any commercially sensitive terms, to any such licensee, sublicensee or collaborator with respect to ***Program DARTs or ***Licensed
Products; (c) Gilead shall not disclose the terms of this Agreement to any such licensee, sublicensee or collaborator without MacroGenics’ prior written consent, except that Gilead may disclose the terms of this Agreement to the extent
they relate specifically to any Licensed Program, solely as reasonably necessary in connection with such transactions and after redacting any commercially sensitive terms, to any such licensee, sublicensee or collaborator with respect to Program
DARTs or Licensed Products from such Licensed Program; (d) except as set forth in clause (e) below with respect to Gilead Collaboration Know-How related to the ***Licensed Program, MacroGenics shall not disclose

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
any Confidential Information of Gilead in a manner that would disclose the identity of Gilead to such licensee, sublicensee or collaborator; and (e) MacroGenics shall not disclose to any
such licensee, sublicensee or collaborator any Confidential Information of Gilead other than MacroGenics Know-How that is developed prior to the end of the Research Term for the Research Program associated with the Licensed Program to which such
Confidential Information relates, except that MacroGenics may disclose any MacroGenics Know-How, Gilead Collaboration Know-How or Know-How comprising Joint IP to the extent related to the ***Licensed Program, solely as reasonably necessary in
connection with such transactions, to any such licensee, sublicensee or collaborator with respect to ***Program DARTs or ***Licensed Products; or 
 10.2.5 to the extent mutually agreed to in writing by the Parties. 
 10.3 Press
Release; Disclosure of Agreement. 
 10.3.1 On or promptly after the Effective Date, the Parties shall jointly issue a
public announcement of the execution of this Agreement in the form attached hereto as Exhibit F. Neither Party shall issue any subsequent press release regarding this Agreement or the Parties’ activities hereunder without the prior
written consent of the other Party. Neither Party shall make any other disclosures regarding this Agreement or the Parties’ activities hereunder, or any results or data arising hereunder, except (a) with respect to any Confidential
Information of the other Party, to the extent permitted by Section 10.2; (b) in accordance with Section 10.6; or (c) for any disclosure that is reasonably necessary to comply with applicable securities exchange listing
requirements or other applicable Laws. Notwithstanding the foregoing, to the extent information regarding this Agreement has already been publicly disclosed, either Party may subsequently disclose the same information to the public without the
consent of the other Party. 
 10.3.2 Each Party shall, if practicable, give the other Party a reasonable opportunity to review
those portions of all filings with the United States Securities and Exchange Commission (or any stock exchange, including Nasdaq, or any similar regulatory agency in any country other than the United States) describing the terms of this Agreement
(including any filings of this Agreement) prior to submission of such filings, and shall give due consideration to any reasonable comments by the non-filing Party relating to such filing, including the provisions of this Agreement for which
confidential treatment should be sought. 
 10.4*** 

10.5 Remedies. In the event a Party breaches the confidentiality obligations set forth in this ARTICLE 10, the other Party shall
be entitled to seek, in addition to any other right or remedy it may have, at Law or in equity, a temporary injunction, without the posting of any bond or other security, enjoining or restraining the breaching Party from any violation or threatened
violation of this ARTICLE 10. 
 10.6 Publications. The Parties recognize that it may be useful or required to publish or
publicly disclose the results of Research and Development work on Program DARTs and Licensed Products, and each Party (and its Affiliates) shall be free to publish or publicly disclose 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
such results, subject, in the case of any such results containing Confidential Information of the other Party, to prior review by the other Party for patentability and protection of its
Confidential Information in accordance with this Section 10.6. The Party that desires to publish such results shall provide the other Party with a copy of the applicable proposed abstract, manuscript, or presentation no less than ***
prior to its intended submission for publication. The reviewing Party shall respond in writing promptly and in no event later than *** after receipt of the proposed material with any concerns regarding patentability or protection of such
reviewing Party’s Confidential Information. In the event of concern over patent protection, the publishing Party agrees not to submit such publication or to make such presentation that contains such information until the reviewing Party is
given a reasonable period of time, and in no event less than ***, to seek patent protection for any material in such publication or presentation which it believes is patentable. Subject to Section 10.2, any Confidential Information of
the reviewing Party shall, if requested by the reviewing Party, be removed by the other Party; provided, however, that (a) Gilead as the publishing Party shall have no obligation to remove any Confidential Information of MacroGenics to the
extent such Confidential Information is (i) described in clause (a) of the second sentence of Section 10.1 or (ii) Know-How comprising the Joint IP that relates to ***; and (b) Gilead as the reviewing Party shall not
unreasonably request removal of any Confidential Information of Gilead to the extent such Confidential Information is (i) (x) MacroGenics Know-How described in clause (a) of the second sentence of Section 10.1 and
(y) related to the *** Licensed Program or (ii) Know-How comprising the Joint IP that relates to ***. 
 10.7
Return of Confidential Information. Upon the expiration or termination of this Agreement, the Receiving Party shall return to the Disclosing Party all Confidential Information of the Disclosing Party in its possession (and all copies and
reproductions thereof). In addition, the Receiving Party shall destroy: (a) any notes, reports or other documents prepared by the Receiving Party which contain Confidential Information of the Disclosing Party; and (b) any Confidential
Information of the Disclosing Party (and all copies and reproductions thereof) which is in electronic form or cannot otherwise be returned to the Disclosing Party. Alternatively, upon written request of the Disclosing Party, upon such expiration or
termination, the Receiving Party shall destroy all Confidential Information of the Disclosing Party in its possession (and all copies and reproductions thereof) and any notes, reports or other documents prepared by the Receiving Party which contain
Confidential Information of the Disclosing Party. Nothing in this Section 10.7 shall require the alteration, modification, deletion or destruction of archival tapes or other electronic back-up media made in the ordinary course of business;
provided that the Receiving Party shall continue to be bound by its obligations of confidentiality and other obligations under this ARTICLE 10 with respect to any Confidential Information contained in such archival tapes or other electronic back-up
media. Any requested destruction of Confidential Information shall be certified in writing to the Disclosing Party. Notwithstanding the foregoing, (i) the Receiving Party’s legal counsel may retain one copy of the Disclosing Party’s
Confidential Information solely for the purpose of determining the Receiving Party’s continuing obligations under this ARTICLE 10 and (ii) the Receiving Party may retain the Disclosing Party’s Confidential Information and its own
notes, reports and other documents to the extent reasonably required (x) to comply with applicable Law and regulatory requirements; (y) to exercise the rights and licenses of the Receiving Party expressly surviving expiration or
termination of this Agreement; and (z) to perform the obligations of the Receiving Party 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
expressly surviving expiration or termination of this Agreement. Notwithstanding the return or destruction of the Disclosing Party’s Confidential Information, the Receiving Party shall
continue to be bound by its obligations of confidentiality and other obligations under this ARTICLE 10. 
 ARTICLE 11

 REPRESENTATIONS AND WARRANTIES 
 11.1 Representations and Warranties of Both Parties. Each Party hereby represents and warrants to the other Party, as of the Effective Date, that: 

11.1.1 Such Party is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation and
has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof. 
 11.1.2 Such Party
has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. 
 11.1.3 This Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against it in accordance with the terms hereof, subject
to the effects of bankruptcy, insolvency or other laws of general application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity, whether
enforceability is considered a proceeding at law or equity. 
 11.1.4 The execution, delivery and performance of this Agreement
by such Party does not conflict with any agreement or any provision thereof, or any instrument or understanding, oral or written, to which it is a party or by which it is bound, nor violate any applicable Law. 

11.1.5 No government authorization, consent, approval, license, exemption of or filing or registration with any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any applicable Laws currently in effect, is or will be necessary for, or in connection with, the transactions contemplated by this Agreement, or for the
performance by it of its obligations under this Agreement, except as necessary to conduct clinical trials or to seek or obtain Regulatory Approvals or as may be required under the HSR Act. 

11.2 Representations, Warranties and Covenants of MacroGenics. MacroGenics hereby represents, warrants and covenants to Gilead
that: 
 11.2.1 MacroGenics is as of the Effective Date, and (subject to Section 15.4) will at all times during the
Agreement Term be, the sole and exclusive owner of all of the MacroGenics IP that exists as of the Effective Date. Subject to (a) any MacroGenics Third Party Agreements, (b) any rights of any collaborator of MacroGenics or its Affiliates
as joint owner of any MacroGenics IP and (c) Section 15.4, MacroGenics and its Affiliates will at all times during the Agreement Term be the sole and exclusive owner of all of the MacroGenics IP that does not

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
exist as of the Effective Date. MacroGenics’ rights to the MacroGenics IP are as of the Effective Date, and at all times during the Agreement Term will be, free of all liens, mortgages,
encumbrances, pledges and security interests by any Third Party (including any rights of any Governmental Authority) other than licenses granted to Third Parties that are not inconsistent with the rights and licenses granted to Gilead under this
Agreement. As of the Effective Date, there are no MacroGenics Third Party Agreements. 
 11.2.2 The MacroGenics Patents existing
as of the Effective Date are listed on Exhibit C. As of the Effective Date, all documents required to be filed and all payments required to be made in order to maintain each MacroGenics Patent have been filed or made, as the case may be, in a
timely manner, and no action has been taken that would constitute waiver, abandonment or any similar relinquishment of rights with respect to any such Patent. 
 11.2.3 As of the Effective Date, to the knowledge of MacroGenics, the MacroGenics IP existing as of the Effective Date is not invalid or unenforceable, in whole or in part. As of the Effective Date, the
conception, development and reduction to practice of the MacroGenics IP existing as of the Effective Date have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person. Except as disclosed on
Schedule 11.2.3, there are not as of the Effective Date, nor have there been over the three (3) year period immediately preceding the Effective Date, any actual (or, to MacroGenics’ knowledge, threatened) claims, lawsuits,
arbitrations, legal or administrative or regulatory proceedings, charges, complaints or investigations by any Government Authority (except in the ordinary administrative course of the granting of patents and proceedings relating thereto) or by any
Third Party relating to the MacroGenics IP. 
 11.2.4 As of the Effective Date, to the knowledge of MacroGenics, the exercise by
Gilead of the rights and licenses granted to Gilead by MacroGenics under this Agreement will not infringe any of the intellectual property rights of any Third Party. 
 11.2.5 As of the Effective Date, to the knowledge of MacroGenics, there is no actual infringement or misappropriation or threatened infringement or misappropriation of any MacroGenics IP by any Person.

 11.2.6 As of the Effective Date, MacroGenics has not (a) employed or used a contractor or consultant that has employed,
any individual or entity debarred by the FDA (or subject to a similar sanction of EMA), or (b) employed any individual who or entity that is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMA), in the
conduct of any pre-clinical activities or clinical studies of Program DARTs. 
 11.2.7 As of the Effective Date, there is no
Regulatory Documentation that (a) is relevant to the Licensed Programs or any Program DARTs and (b) applicable Law requires MacroGenics to have prepared, filed or maintained. 

11.2.8 As of the Effective Date, all activities conducted by or on behalf of MacroGenics with respect to Program DARTs have been
conducted, in all material respects, in accordance with applicable Law, GLP, GCP and GMP, as applicable. 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 11.2.9 Without limitation of the generality of Section 11.1.4, as of the Effective
Date, MacroGenics has the right to grant all rights and licenses it purports to grant to Gilead with respect to the MacroGenics IP under this Agreement and has not granted to any Third Party any license, right or interest in, to or under MacroGenics
IP that is inconsistent with the licenses and rights granted to Gilead in Section 4.1. 
 11.2.10 As of the Effective Date,
MacroGenics has not granted to any Third Party the sole or first right to file, prosecute or maintain Patents that contain Platform Claims. As of the Effective Date, MacroGenics has not granted to any Third Party the sole right to enforce any
Platform Claims. MacroGenics as of the Effective Date has not granted, and during the Agreement Term will not grant, to any Third Party any rights (a) to prosecute, maintain or enforce any Product Patents, except for any such rights in the
MacroGenics Territory granted to any Third Party licensee, sublicensee or collaborator of MacroGenics with respect to ***Program DARTs or ***Licensed Products, or (b) to enforce any Platform Patents with respect to a Competitive Infringement.

 11.2.11 Each Patent listed on Exhibit C is a Platform Patent. 

11.3 Mutual Covenants. Each Party hereby covenants to the other Party that: 

11.3.1 Such Party shall comply with all applicable Laws in connection with this Agreement and the transactions contemplated hereby.

 11.3.2 Such Party will impose on all employees of such Party or its Affiliates who perform work under this Agreement the
obligation to assign all right, title and interest in and to their inventions and discoveries, whether or not patentable, to such Party as the sole owner thereof. 
 11.3.3 Such Party will not (a) employ or use any contractor or consultant that employs any individual or entity debarred by the FDA (or subject to a similar sanction of EMA); or (b) employ any
individual who or entity that is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMA), in each of clauses (a) and (b) in the conduct of its activities under this Agreement. If, at any time during the
term of this Agreement, (x) any individual or entity employed by such Party or any contractor or consultant used by such Party in the conduct of its activities under this Agreement becomes debarred by the FDA (or subject to a similar sanction
of EMA) or (y) any individual or entity employed by such Party in the conduct of its activities under this Agreement becomes the subject of, or is threatened to be made the subject of, an FDA debarment investigation or proceeding (or similar
proceeding of EMA), such Party shall immediately notify the other Party. 
 11.3.4 Such Party shall perform its activities
pursuant to this Agreement in compliance in all material respects with GLP, GCP and cGMP (including those specified by the ICH), in each case as applicable. 
 11.3.5 Neither Party shall, during the Agreement Term, grant any right or license to any Third Party relating to any of the intellectual property rights it owns or Controls which would conflict with any
of the rights or licenses granted or to be granted to the other Party hereunder pursuant to the provisions of ARTICLE 4. 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 11.4 Disclaimer. Except as otherwise expressly set forth in this Agreement, NEITHER
PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY THAT ANY PATENTS ARE VALID OR ENFORCEABLE, AND EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NONINFRINGEMENT. Without limiting the generality of the foregoing except as otherwise expressly set forth in this Agreement, each Party disclaims any warranties with regards to: (a) the success of any study or test
commenced under this Agreement; (b) the safety or usefulness for any purpose of the technology or materials, including any compounds, it provides or discovers under this Agreement; or (c) the validity, enforceability, or non-infringement
of any intellectual property rights or technology it provides or licenses to the other Party under this Agreement. Data and regulatory materials are given by each Party to the other Party, except as otherwise provided herein, on an “as is”
basis without any warranty of any kind. 
 ARTICLE 12 

INDEMNIFICATION AND INSURANCE 
 12.1 Indemnification by Gilead. Gilead shall defend, indemnify and hold harmless the MacroGenics Indemnitees from and against any and all losses, damages, fees, expenses, settlement amounts or
costs (including reasonable attorneys’ fees and witness fees) (“Losses”) relating to or in connection with a Third Party claim arising out of (a) any death, personal bodily injury or damage to real or tangible personal
property alleged or proven to result, directly or indirectly, from the possession, use or consumption of, or treatment with, a Program DART or Licensed Product Researched, Developed, Manufactured or Commercialized in the Gilead Territory for the
applicable Licensed Program (or, as permitted under this Agreement, the MacroGenics Territory for the applicable Licensed Program), in each case by or on behalf of Gilead or its Affiliates or Sublicensees, including any product liability claims;
(b) the Commercialization by or on behalf of Gilead or its Affiliates or Sublicensees of any Program DART or Licensed Product in the Gilead Territory; (c) any actual or alleged infringement or unauthorized use or misappropriation of any
Patent or other intellectual property right of a Third Party with respect to the activities of Gilead or its Affiliates or Sublicensees hereunder; (d) any breach by Gilead of its representations, warranties or covenants made under this
Agreement; or (e) any illegal or negligent act or omission or willful misconduct of Gilead or its Affiliates or Sublicensees or any of their employees, contractors or agents, in performing Gilead’s obligations or exercising Gilead’s
rights under this Agreement; provided, however, that the foregoing indemnity shall not apply to the extent that any such Losses (i) are attributable to an illegal act by or the gross negligence or willful misconduct of any MacroGenics
Indemnitees, or (ii) are otherwise subject to an obligation by MacroGenics to indemnify the Gilead Indemnitees under Section 12.2, as to which Losses the provisions of Section 12.4 shall apply. 

12.2 Indemnification by MacroGenics. MacroGenics shall defend, indemnify and hold harmless the Gilead Indemnitees from and against
any and all Losses relating to or in connection with a Third Party claim arising out of (a) any death, personal bodily injury or damage to real or 

  
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treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
tangible personal property alleged or proven to result, directly or indirectly, from the possession, use or consumption of, or treatment with, a Program DART or Licensed Product Researched,
Developed, Manufactured or Commercialized in the MacroGenics Territory for the applicable Licensed Program (or, as permitted under this Agreement, the Gilead Territory for the applicable Licensed Program), in each case by or on behalf of MacroGenics
or its Affiliates or Sublicensees, including any product liability claims; (b) the Commercialization by or on behalf of MacroGenics or its Affiliates or Sublicensees of any Program DART or Licensed Product in the MacroGenics Territory, or the
Manufacture of any Program DART or Licensed Product on behalf of MacroGenics by any Third Party pursuant to any consent or approval granted by Gilead under Section 3.2.5(e); (c) any actual or alleged infringement or unauthorized use or
misappropriation of any Patent or other intellectual property right of a Third Party with respect to the activities of MacroGenics or its Affiliates or Sublicensees hereunder; (d) any breach by MacroGenics of its representations, warranties or
covenants made under this Agreement; (e) any illegal or negligent act or omission or willful misconduct of MacroGenics or its Affiliates or Sublicenses or any of their employees, contractors or agents, in performing MacroGenics’
obligations or exercising MacroGenics’ rights under this Agreement; or (f) any exercise by MacroGenics of its rights under the license grant by Gilead in Section 4.2(d); provided, however, that the foregoing indemnity shall not apply
to the extent that any such Losses are attributable to (i) an illegal act by or the gross negligence or willful misconduct of any Gilead Indemnitees, or (ii) are otherwise subject to an obligation by Gilead to indemnify the MacroGenics
Indemnitees under Section 12.1, as to which Losses the provisions of Section 12.4 shall apply. 
 12.3
Procedure. 
 12.3.1 In the event of a claim by a Third Party against any Person entitled to indemnification under this
Agreement, the Party claiming indemnification (in such capacity, the “Indemnified Party”) shall promptly notify the other Party (in such capacity, the “Indemnifying Party”) in writing of the claim (it being
understood that the failure by the Indemnified Party to give prompt notice of a Third Party claim as provided in this Section 12.3 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only
to the extent that such Indemnifying Party is actually prejudiced as a result of such failure to give prompt notice). Within thirty (30) days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the
Indemnified Party, undertake and solely manage and control, at its sole expense and with counsel reasonably satisfactory to the Indemnified Party, the defense of the claim; provided, however, that if MacroGenics is the Indemnifying Party and the
claim relates to a Program DART or Licensed Product with respect to which a Phase 2 Clinical Trial has been Completed, then Gilead may, at any time upon written notice to MacroGenics, assume sole management and control of the defense of the claim,
at its sole expense (provided, however, that Gilead shall not be required to reimburse MacroGenics for any expenses incurred by MacroGenics in connection with MacroGenics’ defense of the claim prior to such assumption). If the Indemnifying
Party does not undertake such defense in accordance with the preceding sentence, the Indemnified Party shall control such defense. The Party not controlling such defense shall cooperate with the other Party and may, at its option and expense,
participate in such defense with counsel of its choice; provided, however, that if the Indemnifying Party assumes control of such defense as set forth above and the Indemnified Party in good faith concludes, based on advice from counsel, that the
Indemnifying Party and the 

  
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Indemnified Party (or the relevant MacroGenics Indemnitee or Gilead Indemnitee seeking indemnification) have conflicting interests with respect to such action, suit, proceeding or claim, the
Indemnified Party’s counsel may fully participate in such defense and the Indemnifying Party shall be responsible for the reasonable fees and expenses of one counsel to the indemnified Persons solely in connection therewith. The Party
controlling such defense shall keep the other Party advised of the status of such action, suit, proceeding or claim and the defense thereof, shall provide the other Party copies of material documents and filings related to such action, suit,
proceeding or claim and shall consider recommendations made by the other Party with respect thereto. Except if the Indemnifying Party did not undertake defense of the claim as set forth above, or if the Indemnifying Party and the Indemnified Party
(or the relevant MacroGenics Indemnitee or Gilead Indemnitee seeking indemnification) have conflicting interests with respect to such action, suit, proceeding or claim and the Indemnified Party engages separate counsel, as provided above, the
Indemnifying Party shall not be liable for any litigation costs or expenses incurred by the Indemnified Party without the Indemnifying Party’s written consent. The Indemnified Party shall not settle any such action, suit, proceeding or claim
without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, delayed or conditioned. The Indemnifying Party shall not settle, without the prior written consent of the Indemnified Party, any such action,
suit, proceeding or claim, or consent to any judgment in respect thereof, that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto, that imposes any liability or obligation on the
Indemnified Party or that acknowledges fault by the Indemnified Party. 
 12.3.2 Notwithstanding anything to the contrary above,
in the event of any claim or criminal action brought by a Governmental Authority against a Gilead Indemnitee for which indemnification may be sought under this Section 12.3, Gilead shall have the right to control the defense, litigation,
settlement, appeal or other disposition of the claim or action at MacroGenics’ expense. 
 12.4 Allocation. In the
event a claim falls within the scope of the indemnity given by each Party in Section 12.1 or 12.2, as the case may be, any payments in connection with such claim shall be apportioned between the Parties in accordance with the degree of fault
attributable to each Party. 
 12.5 EXCLUSION OF CONSEQUENTIAL DAMAGES. EXCEPT WITH RESPECT TO A BREACH OF SECTION 4.9,
ARTICLE 10 OR THIRD PARTY CLAIMS THAT ARE SUBJECT TO INDEMNIFICATION UNDER THIS ARTICLE 12, NEITHER MACROGENICS NOR GILEAD, NOR ANY OF THEIR RESPECTIVE AFFILIATES, WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE
DAMAGES, WHETHER LIABILITY IS ASSERTED IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT PRODUCT LIABILITY), INDEMNITY OR CONTRIBUTION, AND IRRESPECTIVE OF WHETHER SUCH PARTY OR ANY REPRESENTATIVE OF SUCH PARTY HAS BEEN ADVISED OF, OR OTHERWISE
MIGHT HAVE ANTICIPATED THE POSSIBILITY OF, ANY SUCH LOSS OR DAMAGE. 

  
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treatment. An unredacted 
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 12.6 Insurance. 

12.6.1 MacroGenics shall, at its own cost and expense, obtain and maintain in full force and effect the following insurance: 

(a) ***; 

(b) ***; 

(c) Upon initiation by MacroGenics of human clinical trials of any Program DART or Licensed Product, Clinical Trials insurance in
accordance with applicable Law in the jurisdiction where such trials will be performed; and 
 (d) *** 

In the event that any of the required policies of insurance are written on a claims made basis, then such policies shall be maintained for a period of
not less than five (5) years following the termination or expiration of this Agreement. Each insurance policy that is required under this Section 12.6.1 shall be obtained from an insurance carrier with an A.M. Best rating of at least
A-VII. MacroGenics shall furnish a certificate of insurance for any of the required policies as soon as practicable after the Effective Date (or, with respect to clauses (b) and (c) above, such time as MacroGenics obtains the applicable
policy) and upon any renewal thereof. 
 12.6.2 Gilead shall at its own cost and expense, obtain and maintain in full force and
effect the following insurance: 
 (a) Upon initiation by Gilead of human clinical trials of any Program DART or Licensed
Product, Clinical Trials insurance in accordance with applicable Law in the jurisdiction where such trials will be performed; and 
 (b) ***. 
 In lieu of insurance, Gilead may self-insure any or a portion of the above required
insurance. In the event that any of the required policies of insurance are written on a claims made basis, then such policies shall be maintained for a period of not less than five (5) years following the termination or expiration of this
Agreement. Subject to Gilead’s right to self-insure, each insurance policy that is required under this Section 12.6.2 shall be obtained from an insurance carrier with an A.M. Best rating of at least A-VII. Gilead shall furnish a
certificate of insurance for any of the required policies as soon as practicable after Gilead obtains the applicable policy and upon any renewal thereof. 
 ARTICLE 13 
 TERM AND TERMINATION 

13.1 Agreement Term; Expiration. This Agreement shall become effective as of the Effective Date and, unless earlier terminated in
accordance herewith, shall continue in full force with respect to any Licensed Program until the expiration of the last to expire Royalty Term for a Licensed Product from such Licensed Program with respect to each country in the Gilead Territory for
such Licensed Program. 

  
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treatment. An unredacted 
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 13.2 Termination for Cause. Either Party (the “Non-Breaching Party”)
may, without prejudice to any other remedies available to it under applicable Law or in equity, terminate this Agreement in its entirety or with respect to any Licensed Program if the other Party (the “Breaching Party”) shall have
materially breached or defaulted in the performance of its obligations hereunder with respect to such Licensed Program, and such default shall have continued for *** after written notice thereof was provided to the Breaching Party by the
Non-Breaching Party, such notice describing the alleged breach. Any such termination shall become effective at the end of such *** cure period, unless the Breaching Party has cured such breach or default prior to the expiration of such cure
period; provided, however, that if the Breaching Party notifies the Non-Breaching Party within such *** period that the Breaching Party disagrees in good faith with such asserted basis for termination, the termination of this Agreement in its
entirety or with respect to the applicable Licensed Program shall not be effective unless and until the matter has been finally resolved in accordance with Section 15.2 and the decision by the applicable court rendered in accordance with
Section 15.2 holds that the Breaching Party materially breached this Agreement. The right of either Party to terminate this Agreement as provided in this Section 13.2 shall not be affected in any way by such Party’s waiver or failure
to take action with respect to any previous default. 
 13.3 Termination for Patent Challenge. If either Party or any of
its Affiliates: (a) commences or otherwise voluntarily determines to participate in any action or proceeding (including any patent opposition or re-examination proceeding), challenging or denying the validity of any of the other Party’s
Patents or Joint Patents licensed hereunder or any claim thereof, excluding any such challenge asserted as a counterclaim in litigation initiated by the other Party or its Affiliates, or (b) actively assists any other Person in bringing or
prosecuting any action or proceeding (including any patent opposition or re-examination proceeding) challenging or denying the validity of any of such Patents or any claim thereof, the non-challenging Party shall have the right to terminate this
Agreement with respect to the Licensed Program to which such Patents are subject upon *** written notice to the other Party. Any such termination shall only become effective if the challenging Party or its Affiliate, as applicable, has not
withdrawn such action before the end of the above notice period. 
 13.4 Termination for Convenience. Gilead may
terminate this Agreement with respect to any Licensed Program at any time upon *** written notice to MacroGenics if the effective date of such termination is *** after the Effective Date; provided, however, that Gilead may terminate
this Agreement with respect to a Licensed Program at any time upon *** written notice to MacroGenics if there is a ***; and provided, further, that if the Research Term of the Research Program associated with any terminated Licensed
Program has not expired as of the effective date of such termination, (a) the Parties shall use good faith efforts to reallocate the FTEs for such Research Program, first to other active Research Programs (if any), and second to any other
research programs of MacroGenics, and (b) Gilead shall pay the reasonable, documented Out-of-Pocket Costs and FTE Costs of MacroGenics incurred in winding down such Research Program. 

  
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 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 13.5 Termination for Insolvency Event: Either Party may terminate this Agreement in
its entirety upon written notice to the other Party if the other Party suffers an Insolvency Event. 
 13.6 Termination for
HSR Act Delay. Gilead may terminate this Agreement with respect to the ***Licensed Program, the *** Licensed Program or the ***Licensed Program, as applicable, upon written notice to MacroGenics if an HSR Filing with respect
to such Licensed Program is made under Section 3.2.2(c) and the waiting period (or any extension thereof) under the HSR Act has not terminated or expired as of sixty (60) days after the date on which such HSR Filing is made. 

13.7 Effect of Termination. 
 13.7.1 Subject to Section 13.8, upon termination of this Agreement by MacroGenics in whole or with respect to one or more Terminated Programs pursuant to Section 13.2, 13.3, 13.5 or 15.5 or by
Gilead with respect to one or more Terminated Programs pursuant to Section 13.4: 
 (a) all rights, licenses and options
granted by MacroGenics to Gilead with respect to each Terminated Program hereunder shall terminate and Gilead shall not have any rights to use or exercise any rights under the MacroGenics IP with respect to any such Terminated Program; 

(b) any Gilead Collaboration Know-How described in clause (a) of the second sentence of Section 10.1 shall continue to be
deemed to be the Confidential Information of each Party; 
 (c) if such termination occurs during a Research Term, Gilead shall
promptly transfer and assign to MacroGenics all Supplemental Data and Gilead Collaboration IP that was created by or on behalf of Gilead or its Affiliates, or both, whether solely or jointly with MacroGenics, in the course of conducting activities
under the Terminated Program; 
 (d) if such termination occurs after the Research Term and during a License Term: 

(i) to the extent Gilead has conducted any Research, Development or Commercialization activities with respect to such Terminated
Program, Gilead shall provide to MacroGenics a fair and accurate detailed written description of the status of such activities through the effective date of termination within *** of such termination; 

(ii) the licenses granted to MacroGenics pursuant to Section 4.2 shall remain in effect and with respect to any Terminated Program
shall become irrevocable; provided, however, that MacroGenics shall not use any Gilead Collaboration IP in connection with any activities in the Gilead Territory, except in accordance with (x) the license grants set forth in clauses
(c) and (d) of Section 4.2 or (y) any rights of MacroGenics under any agreement entered into pursuant to Section 13.7.1(d)(vi); 

  
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 (iii) the rights granted to MacroGenics under Section 9.3.2 shall survive; 

(iv) Gilead shall, to the extent it has not already done so, provide to MacroGenics copies of all Gilead Collaboration IP that was
created by or on behalf of Gilead or its Affiliates in the course of conducting activities under the Terminated Program, solely to the extent necessary for MacroGenics to exercise its rights under clauses (ii) and (v) of this
Section 13.7.1(d); 
 (v) Gilead hereby grants to MacroGenics, effective upon such termination, a non-exclusive,
royalty-free, non-transferable (except in accordance with Section 15.4) license, with the right to sublicense (subject to Section 4.3), under (A) Gilead’s and its Affiliates’ interest in Gilead Collaboration IP and Joint IP
that are Platform IP and that were created by or on behalf of Gilead or its Affiliates, or both, whether solely or jointly with MacroGenics, in the course of conducting activities under the Terminated Program, to Research, Develop, Manufacture and
Commercialize throughout the world DARTs; and (B) if the ***Licensed Program is the Terminated Program, clinical data included in the Gilead Collaboration Know-How that results from any Phase 1 Clinical Trial or Phase 2 Clinical Trial of any
***Program DART or ***Licensed Product, to Research, Develop, Manufacture and Commercialize ***Program DARTS and ***Licensed Products throughout the world; and 
 (vi) the Parties shall enter into good faith negotiations with respect to an agreement pursuant to which Gilead would grant to MacroGenics a license under Gilead Collaboration IP (other than any Gilead
Collaboration Know-How licensed to MacroGenics in accordance with clause (v) above) to Research, Develop, Manufacture and Commercialize the Licensed Product(s) from such Terminated Program, with terms regarding degree of exclusivity, royalty or
other payments, access to or assignment of relevant Regulatory Documentation and other technical and other information or materials in Gilead’s or its Affiliates’ possession or control, transfer or amendment of applicable agreements or
arrangements with Third Parties and other appropriate transition matters to be negotiated in good faith. 
 13.7.2 Subject to
Section 13.8, upon termination of this Agreement by Gilead in whole or with respect to one or more Terminated Programs pursuant to Section 13.2, 13.3, 13.5 or 15.5: 
 (a) all rights, licenses and options of or granted to Gilead, its Affiliates or Sublicensees pursuant to this Agreement with respect to such Terminated Program, including in Sections 4.1, 6.2.2 and
ARTICLE 9, shall remain in effect; 
 (b) any MacroGenics Know-How described in clause (a) of the second sentence of
Section 10.1 shall continue to be deemed to be the Confidential Information of each Party; 
 (c) all payment obligations
under ARTICLE 8 with respect to such Terminated Program shall remain in effect; 

  
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 (d) all license grants, including under Section 4.2(d), by Gilead, its Affiliates or
Sublicensees to MacroGenics pursuant to this Agreement with respect to such Terminated Program shall terminate; and 
 (e)
MacroGenics shall provide to Gilead copies of such technical and other information and materials in MacroGenics’ or its Affiliates’ possession or control as of the date of termination, in each case that relate to such Terminated Program,
to the extent not previously provided to Gilead hereunder. 
 13.7.3 Subject to Section 13.8, upon termination of this
Agreement by Gilead with respect to ***Licensed Program, the *** Licensed Program or the *** Licensed Program, as applicable, pursuant to Section 13.6, all rights and obligations of each Party hereunder with respect to such
Terminated Program shall terminate. 
 13.8 Accrued Rights; Surviving Provisions of the Agreement. 

13.8.1 Accrued Rights. Termination or expiration of any aspect of this Agreement for any reason shall be without prejudice to any
rights that shall have accrued to the benefit of any Party prior to such termination or expiration, including the payment obligations under ARTICLE 8 and any rights of Gilead under the last sentence of Section 8.5.4(b), and any and all damages
or remedies arising from any breach hereunder. Such termination or expiration shall not relieve any Party from obligations which are expressly indicated to survive termination of this Agreement. 

13.8.2 Surviving Provisions of the Agreement. The provisions of Sections 4.8, 8.7 - 8.10 (with regard to accrued but unpaid
amounts), 8.11, 9.2, 11.4, 13.7 and 13.8 and ARTICLE 12 and ARTICLE 15, and any applicable definitions in ARTICLE 1, shall survive any partial or entire termination of this Agreement or partial or entire expiration of this Agreement for any reason,
in accordance with their respective terms and conditions, and for the duration stated, and where no duration is stated, shall survive indefinitely. ARTICLE 10 shall survive for a period of seven (7) years after the effective date of the entire
termination or expiration of this Agreement. 
 ARTICLE 14 

STANDSTILL 

14.1 Standstill. In the event that the common stock of MacroGenics becomes listed on a national securities exchange in an initial
public offering (an “IPO”) ***, Gilead agrees that neither it nor any of its Affiliates, acting alone or as part of any 13D Group, shall directly or indirectly, for a period of *** (the “Standstill
Period”), without the prior written approval of MacroGenics’ Board of Directors: 
 14.1.1 acquire or agree,
offer, seek or propose to acquire, or cause to be acquired, ownership (including, but not limited to, beneficial ownership as defined in Rule 13d-3 under the Securities and Exchange Act of 1934) of any substantial part of the assets or businesses of
MacroGenics or of any voting securities of MacroGenics, or any rights or options to acquire any such ownership (including from a third party); 

  
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treatment. An unredacted 
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 14.1.2 make, or in any way participate, directly or indirectly, in any
“solicitation” of “proxies” (as such terms are used in the proxy rules of the Securities and Exchange Commission) to vote, or seek to advise or influence any person with respect to the voting of any voting securities of
MacroGenics; 
 14.1.3 form, join or in any way participate in, a “group” (within the meaning of Section 13(d)(3)
of the Securities Exchange Act of 1934) (“13D Group”) with respect to any voting securities of MacroGenics; 

14.1.4 otherwise act, whether alone or in concert with others, to seek to propose to MacroGenics any merger, business combination,
restructuring, recapitalization or similar transaction with respect to or with MacroGenics or otherwise act, whether alone or in concert with others, to seek to control, change the management or Board of Directors of MacroGenics, or nominate any
person as a director of MacroGenics who is not nominated by the then incumbent directors; 
 14.1.5 enter into any discussion,
negotiations, arrangements or understandings with any third party with respect to, any of the foregoing; or 
 Notwithstanding the foregoing,
nothing in this Agreement shall limit Gilead’s ability to (x) inquire or make a request, orally or in writing, to the chief executive officer or the chairman of the board of directors of MacroGenics with respect to any amendment or waiver
of any provision of this Section 14.1 or (y) make or submit to the chief executive officer or the chairman of the board of directors of MacroGenics a bona fide non-public proposal so long as such action would not reasonably be expected to
require MacroGenics to make a public announcement relating thereto. If at any time during the Standstill Period, Gilead or, to its knowledge, any of its representatives are approached by any Third Party concerning Gilead’s participation in a
transaction of the type referred to in Sections 14.1.1 through 14.1.5, Gilead shall, or shall use commercially reasonable efforts to cause its representative (as applicable) to, promptly inform such Third Party that Gilead is bound by certain
confidentiality obligations in respect of MacroGenics. 
 14.2 The restrictions set forth in Section 14.1 shall terminate
immediately if: (a) a Person or 13D Group not including Gilead or its Affiliates (i) commences or publicly announces its intent to commence a tender or exchange offer for voting securities of MacroGenics representing more than ***
of the then-outstanding voting power of the voting securities of MacroGenics or (ii) publicly announces a bona fide unsolicited proposal to enter into a transaction described in clause (b)(i) or (ii) below and, prior to the termination,
withdrawal or abandonment of such proposal by such Person or 13D Group (as evidenced by a subsequent public announcement or by a written communication to MacroGenics that is either publicly announced or provided by MacroGenics to Gilead), either
(x) MacroGenics publicly announces its willingness to consider such proposal or alternative proposals for a transaction described in clause (b)(i) or (ii) below, (y) the Board of Directors of MacroGenics determines to engage in

  
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negotiations with such Person or 13D Group or any other party other than Gilead or its Affiliates with respect to a transaction described in clause (b)(i) or (ii) below, or (z) such
offer or proposal is not publicly rejected or recommended against by MacroGenics within ten (10) Business Days after such offer or proposal becomes public, or (b) MacroGenics or its Affiliates initiates a process to consider or enter into
a transaction described in clause (i) or (ii) below, or enters into a letter of intent or definitive agreement with any party other than Gilead or its Affiliates regarding (i) any merger, sale, reorganization, recapitalization or
other business combination pursuant to which the outstanding shares of MacroGenics would be converted into cash or securities of a Person or a 13D Group not including Gilead or its Affiliates and the stockholders of MacroGenics immediately prior to
such transaction would own immediately after consummation of such a transaction less than fifty percent (50%) of the voting power of the voting securities of MacroGenics or the entity surviving such transaction; or (ii) any transaction
that would result directly or indirectly in all or substantially all of MacroGenics’ assets being sold to any Person or 13D Group not including Gilead or its Affiliates. In the event that the transactions contemplated by clauses (a) and/or
(b) shall have been terminated or abandoned, and such termination or abandonment is demonstrable by a press release issued by MacroGenics (or, in the case of clause (a), by the party that initially made the public announcement), then
Section 14.1 shall again be applicable for the remainder of the Standstill Period. 
 14.3 Nothing in this ARTICLE 14 shall
prohibit Gilead or its Affiliates from acquiring securities of MacroGenics by or through (a) a diversified mutual or pension fund managed by an independent investment adviser or pension plan established for the benefit of the employees of
Gilead or its Affiliates, (b) any employee benefit plan of Gilead or its Affiliates or (c) any stock portfolios not controlled by Gilead or its Affiliates that invest in MacroGenics among other companies, provided in each case that Gilead
and its Affiliates do not, directly or indirectly, request the trustee or administrator or investment adviser of such fund, plan or portfolio to acquire such securities. 
 ARTICLE 15 
 MISCELLANEOUS 

15.1 Informal Dispute Resolution. The Parties agree to refer to the Alliance Managers for resolution any dispute, claim or
controversy of any nature arising out of or relating to this Agreement, including any action or claim based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance and/or breach of this Agreement
(including any amendments hereto), including any matters referred by the JRC to the Alliance Managers for resolution (each, a “Dispute”). The Alliance Managers shall attempt to resolve each Dispute through good faith discussion for
a period of not less than *** after such Dispute is referred to the Alliance Managers by the JRC or either Party. In the event the Alliance Managers are not able to resolve any Dispute in such time period, the Dispute shall be referred to the
Executive Officers, who shall attempt to resolve such Dispute through good faith discussion for a period of *** after such Dispute is referred the Executive Officers. In the event that the Dispute involves a modification to a Research Plan,
and such Dispute is not resolved pursuant to this Section 15.1, then Gilead may exercise its deciding vote with respect thereto pursuant to Section 2.3.5. 

  
 76 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 15.2 Jurisdiction and Venue. Each Party (a) irrevocably submits to the exclusive
jurisdiction of the federal and state courts located in the *** (the “Court”) with respect to any Dispute, and (b) agrees not to raise any objection at any time to the laying or maintaining of the venue of any action,
suit or proceeding for such purpose in any such Court, irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably waives the right to object, with respect to such action,
suit or other proceeding, that such Court does not have any jurisdiction over such Party, and (c) agrees not to commence any action, suit or proceeding with respect to any Dispute except in such Court. Each Party further agrees that service of
any process, summons, notice or document by U.S. registered mail to such Party’s notice address provided for in this Agreement shall be effective service of process for any action, suit or proceeding in the Court with respect to any matters to
which it has submitted to jurisdiction in this Section 15.2. 
 15.3 Governing Law. This Agreement and any dispute
arising from the performance or breach hereof shall be governed by and construed and enforced in accordance with the *** without reference to conflicts of laws principles. 

15.4 Assignment. Neither Party may assign this Agreement or any of its rights or obligations hereunder without the prior written
consent of the other Party, which consent will not be unreasonably withheld or delayed. Notwithstanding the foregoing, this Agreement may be assigned as follows: (a) subject to the next sentence, either Party may assign its rights and
obligations under this Agreement by way of sale of itself or the sale of the portion of its business to which this Agreement relates, through merger, sale of assets or sale of stock or ownership interest, provided that the assignee shall expressly
agree to be bound by such Party’s obligations under this Agreement and that such sale is not primarily for the benefit of its creditors, and (b) either Party may assign its rights and obligations under this Agreement to any of its
Affiliates, provided that the assignee shall expressly agree to be bound by such Party’s obligations under this Agreement and that such Party shall remain liable for all of its rights and obligations under this Agreement. In the event of
(x) an acquisition of either Party or its assets or equity by a Third Party, such acquisition shall not provide the other Party with rights or access to (A) any Patents or Know-How of such Third Party, or any Affiliate of such Third Party
that becomes an Affiliate of such acquired Party as a result of such acquisition, that exists as of the date of such acquisition or (B) any Patents or Know-How of such Third Party, or any Affiliate of such Third Party that becomes an Affiliate
of such acquired Party as a result of such acquisition, that are filed or developed, as the case may be, after the date of such acquisition, for so long as the acquired Party and such Third Party (or such Affiliate of such Third Party) continue to
conduct their applicable Research and Development activities independently of each other, without any sharing or transfer of relevant Know-How, and (y) an acquisition of MacroGenics or its assets or equity by a Third Party, such Third Party
shall not be permitted to use any MacroGenics IP, other than MacroGenics IP Controlled by MacroGenics or its Affiliates on the Effective Date, in the Research, Development or Commercialization of any Competing Product (as defined in the first
sentence of Section 1.23) being Researched, Developed or Commercialized by such Third Party immediately prior to such acquisition (provided, for clarity, that any use by such Third Party of any MacroGenics IP, including any MacroGenics IP
Controlled by MacroGenics or its Affiliates on the Effective Date, shall be subject to any licenses granted to, or other rights of, Gilead hereunder). This Agreement shall be binding upon the successors and permitted assigns

  
 77 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
of the Parties and the name of a Party appearing herein shall be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent
of this Agreement. Any assignment not in accordance with this Section 15.4 shall be void. 
 15.5 Force Majeure.
Each Party shall be excused from the performance of its obligations under this Agreement to the extent that such performance is prevented by force majeure (defined below) 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 Commercially Reasonable Efforts to remove the condition; provided, that if the nonperformance is material and
continues for more than ***, the Party other than the nonperforming Party shall have the right to terminate this Agreement (i) in its entirety, (ii) solely with respect to the affected Licensed Program, or (iii) if MacroGenics
is the nonperforming Party, solely with respect to the affected Research Plan (if any), in each case effective upon written notice to the nonperforming Party. For purposes of this Agreement, “force majeure” shall include conditions beyond
the control of the Parties, including an act of God, voluntary or involuntary compliance with any regulation, Law or order of any government, war, act of terror, civil commotion, 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. 

15.6 Notices. Any notice or request required or permitted to be given under or in connection with this Agreement shall be deemed
to have been sufficiently given if in writing and personally delivered or sent by certified mail (return receipt requested), facsimile transmission (receipt verified), or reputable international business courier (signature required), prepaid, to the
Party for which such notice is intended, at the address set forth for such Party below: 
 If to MacroGenics, 

addressed to: 

MacroGenics, Inc. 

9640 Medical Center Drive 
 Rockville, MD 20850 
 Attention: Chief Executive Officer 

Facsimile: *** 
 If to Gilead, 
 addressed to: 

Gilead Sciences, Inc. 
 333 Lakeside Drive 
 Foster City, CA 94404 

Attention: General Counsel 
 Facsimile: *** 
 or to such other address for such Party as it shall have specified by like
notice to the other Parties, provided that notices of a change of address shall be effective only upon receipt thereof. 

  
 78 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 
The effective date of any notice shall be (a) the date of delivery, if personally delivered during the recipient’s normal business hours (and otherwise the first (1st) Business Day
after the date of delivery), (b) the third (3rd) Business Day following the date of mailing, if sent by certified mail, (c) the Business Day following verification of receipt, if sent by facsimile, and (d) the Business Day after
dispatch, if sent by international business courier. 
 15.7 Export Clause. Each Party agrees that, as of the Effective
Date, it will not export or re-export restricted commodities or the technical data of the other Party in any form except in compliance with applicable Law (including obtaining any required United States and non-United States government licenses).

 15.8 Waiver. Neither Party may waive or release any of its rights or interests in this Agreement except in writing.
The failure of either Party to assert a right hereunder or to insist upon compliance with any term of this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition. No waiver
by either Party of any condition or term in any one or more instances shall be construed as a continuing waiver of such condition or term or of another condition or term. 
 15.9 Severability. If any provision hereof should be held invalid, illegal or unenforceable in any jurisdiction, the Parties shall negotiate in good faith a valid, legal and enforceable substitute
provision that most nearly reflects the original intent of the Parties and all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out the intentions of the Parties
hereto as nearly as may be possible. Such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction. 

15.10 Covenant. MacroGenics acknowledges that Gilead is a publicly traded company and that, under this Agreement, MacroGenics may
learn of material, non-public information regarding Gilead. MacroGenics understands that federal and state securities laws prohibit MacroGenics’ employees from purchasing or selling securities of Gilead while in possession of any such
information or from disclosing such information to others. Accordingly, MacroGenics shall take reasonable actions to inform and instruct its employees who receive or have access to Confidential Information of Gilead not to buy or sell securities of
Gilead while in possession of any material, non-public information regarding Gilead, and shall not advise others to do so. 

15.11 Entire Agreement. This Agreement, together with the Schedules and Exhibits hereto, set forth all the covenants, promises,
agreements, warranties, representations, conditions and understandings between the Parties as to the subject matter of this Agreement and supersedes and terminates all prior agreements and understanding between the Parties with respect to the
subject matter hereof. In particular, and without limitation, this Agreement supersedes and replaces the Existing Confidentiality Agreement and any and all term sheets relating to the transactions contemplated by this Agreement and exchanged between
the Parties prior to the Effective Date. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties as to the subject matter of this Agreement other than as
set forth herein and therein. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties hereto unless reduced to writing and signed by the respective authorized officers of the Parties. 

  
 79 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 15.12 Independent Contractors. Nothing herein shall be construed to create any
relationship of employer and employee, agent and principal, partnership or joint venture between the Parties. Each Party is an independent contractor. Neither Party shall assume, either directly or indirectly, any liability of or for the other
Party. Neither Party shall have the authority to bind or obligate the other Party and neither Party shall represent that it has such authority. 
 15.13 Headings; Construction; Interpretation. Headings used herein are for convenience only and shall not in any way affect the construction of or be taken into consideration in interpreting this
Agreement. The terms of this Agreement represent the results of negotiations between the Parties and their representatives, each of which has been represented by counsel of its own choosing, and neither of which has acted under duress or compulsion,
whether legal, economic or otherwise. Accordingly, the terms of this Agreement shall be interpreted and construed in accordance with their usual and customary meanings, and each of the Parties hereto hereby waives the application in connection with
the interpretation and construction of this Agreement of any rule of Law to the effect that ambiguous or conflicting terms or provisions contained in this Agreement shall be interpreted or construed against the Party whose attorney prepared the
executed draft or any earlier draft of this Agreement. Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit shall be deemed to be a reference to any Article, Section, subsection, paragraph,
clause, Schedule or Exhibit, of or to, as the case may be, this Agreement. Except where the context otherwise requires, (a) any definition of or reference to any agreement, instrument or other document refers to such agreement, instrument other
document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or therein); (b) any reference to any Law refers to such Law as from time
to time enacted, repealed or amended; (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, refer to this Agreement in its entirety and not to any particular provision hereof; (d) the
words “include,” “includes,” “including,” “exclude,” “excludes,” and “excluding,” shall be deemed to be followed by the phrase “but not limited to,” “without limitation”
or words of similar import; and (e) any reference to Program DARTs or Licensed Products “from” a Licensed Program shall be deemed to include any Program DARTs, and Licensed Products that comprise or incorporate Program DARTs, that
bind to the Program Target for such Licensed Program. 
 15.14 Further Actions. Each Party shall execute, acknowledge and
deliver such further instruments, and do all such other acts, as may be necessary or appropriate in order to carry out the expressly stated purposes and the clear intent of this Agreement. 

15.15 Parties in Interest. All of the terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit
of and be enforceable by the Parties hereto and their respective successors, heirs, administrators and permitted assigns. 

15.16 Performance by Affiliates. To the extent that this Agreement imposes obligations on Affiliates of a Party, such Party agrees
to cause its Affiliates to perform such obligations. 

  
 80 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 15.17 Counterparts. This Agreement may be signed in counterparts, each and every one
of which shall be deemed an original, notwithstanding variations in format or file designation which may result from the electronic transmission, storage and printing of copies from separate computers or printers. Facsimile signatures and signatures
transmitted via portable document format (PDF) shall be treated as original signatures. 
 [Signature
page to follow] 

  
 81 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this
Agreement to be executed by their duly authorized representatives as of the Effective Date. 
  

					
		 	MACROGENICS, INC.
			
		 	 By:
	 	 /s/ Scott Koenig

		 	 Name:
	 	 Scott Koenig

		 	 Title:
	 	 CEO

		
		 	GILEAD SCIENCES, INC.
			
		 	 By:
	 	 /s/ John F. Milligan

		 	 Name:
	 	 John F. Milligan

		 	 Title:
	 	 President and CEO

 [Signature page] 

  

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Exhibit A 
 Access Territory as of the Effective Date 
 *** 

  
 Exhibit A - 1

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Exhibit B 
 DART Platform 
 *** 

  
 Exhibit B - 1

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Exhibit C 
 MacroGenics Patents 
  

					
	 Title
	  	 Pending Application

Number
	  	 Foreign Rights

			
	 ***
	  	***                    	  	***
			
	 ***
	  	***                    	  	***
			
	 ***
	  	***                    	  	***
			
	 ***
	  	***	  	***                    
			
	 ***
	  	***	  	***                    
			
	 ***
	  	***	  	***                    

  
 Exhibit C - 1

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Exhibit D 
 Content of Pre-Clinical Data Package for *** Research Program 
 ***

 *** 

  
 Exhibit D - 1

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Exhibit E 
 Research Plan for the *** Research Program 

  
 Exhibit E - 1

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 *** 
 *** 

  
 Exhibit E - 2

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 *** 

  
 Exhibit E - 3

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Exhibit F 
 Press Release 

  
 Exhibit F - 1

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission. 

 Schedule 11.2.3 
 *** 

  
 1 

 *** = Portions of this exhibit have been omitted pursuant to a request for confidential
treatment. An unredacted 
 version of this exhibit has been filed separately with the Commission.

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